5963-S AMH COND REIN 083
SSB 5963 - H AMD 578
By Representative Condotta
NOT ADOPTED 4/10/2009
Strike everything after the enacting clause and insert the following:
"Sec. 1. RCW 50.29.021 and 2008 c 323 s 2 are each amended to read as follows:
(1) This section applies to benefits charged to the experience rating accounts of employers for claims that have an effective date on or after January 4, 2004.
(2)(a) An experience rating account shall be established and maintained for each employer, except employers as described in RCW 50.44.010, 50.44.030, and 50.50.030 who have properly elected to make payments in lieu of contributions, taxable local government employers as described in RCW 50.44.035, and those employers who are required to make payments in lieu of contributions, based on existing records of the employment security department.
(b) Benefits paid to an eligible individual shall be charged to the experience rating accounts of each of such individual's employers during the individual's base year in the same ratio that the wages paid by each employer to the individual during the base year bear to the wages paid by all employers to that individual during that base year, except as otherwise provided in this section.
(c) When the eligible individual's separating employer is a covered contribution paying base year employer, benefits paid to the eligible individual shall be charged to the experience rating account of only the individual's separating employer if the individual qualifies for benefits under:
(i) RCW 50.20.050(((2))) (1)(b)(i), as
applicable, and became unemployed after having worked and earned wages in the
bona fide work; or
(ii) RCW 50.20.050(((2))) (1)(b) (v)
through (x).
(3) The legislature finds that certain benefit payments, in whole or in part, should not be charged to the experience rating accounts of employers except those employers described in RCW 50.44.010, 50.44.030, and 50.50.030 who have properly elected to make payments in lieu of contributions, taxable local government employers described in RCW 50.44.035, and those employers who are required to make payments in lieu of contributions, as follows:
(a) Benefits paid to any individual later determined to be ineligible shall not be charged to the experience rating account of any contribution paying employer. However, when a benefit claim becomes invalid due to an amendment or adjustment of a report where the employer failed to report or inaccurately reported hours worked or remuneration paid, or both, all benefits paid will be charged to the experience rating account of the contribution paying employer or employers that originally filed the incomplete or inaccurate report or reports. An employer who reimburses the trust fund for benefits paid to workers and who fails to report or inaccurately reported hours worked or remuneration paid, or both, shall reimburse the trust fund for all benefits paid that are based on the originally filed incomplete or inaccurate report or reports.
(b) Benefits paid to an individual filing under the provisions of chapter 50.06 RCW shall not be charged to the experience rating account of any contribution paying employer only if:
(i) The individual files under RCW 50.06.020(1) after receiving crime victims' compensation for a disability resulting from a nonwork- related occurrence; or
(ii) The individual files under RCW 50.06.020(2).
(c) Benefits paid which represent the state's share of benefits payable as extended benefits defined under RCW 50.22.010(6) shall not be charged to the experience rating account of any contribution paying employer.
(d) In the case of individuals who requalify for benefits under RCW 50.20.050 or 50.20.060, benefits based on wage credits earned prior to the disqualifying separation shall not be charged to the experience rating account of the contribution paying employer from whom that separation took place.
(e) Benefits paid to an individual who qualifies for
benefits under RCW 50.20.050(((2))) (1)(b) (iv) or (xi), as
applicable, shall not be charged to the experience rating account of any
contribution paying employer.
(f) With respect to claims with an effective date on or after the first Sunday following April 22, 2005, benefits paid that exceed the benefits that would have been paid if the weekly benefit amount for the claim had been determined as one percent of the total wages paid in the individual's base year shall not be charged to the experience rating account of any contribution paying employer. This subsection (3)(f) does not apply to the calculation of contribution rates under RCW 50.29.025 for rate year 2010 and thereafter.
(4)(a) A contribution paying base year employer, not otherwise eligible for relief of charges for benefits under this section, may receive such relief if the benefit charges result from payment to an individual who:
(i) Last left the employ of such employer voluntarily for reasons not attributable to the employer;
(ii) Was discharged for misconduct or gross misconduct connected with his or her work not a result of inability to meet the minimum job requirements;
(iii) Is unemployed as a result of closure or severe curtailment of operation at the employer's plant, building, worksite, or other facility. This closure must be for reasons directly attributable to a catastrophic occurrence such as fire, flood, or other natural disaster; or
(iv) Continues to be employed on a regularly scheduled permanent part-time basis by a base year employer and who at some time during the base year was concurrently employed and subsequently separated from at least one other base year employer. Benefit charge relief ceases when the employment relationship between the employer requesting relief and the claimant is terminated. This subsection does not apply to shared work employers under chapter 50.06 RCW.
(b) The employer requesting relief of charges under this subsection must request relief in writing within thirty days following mailing to the last known address of the notification of the valid initial determination of such claim, stating the date and reason for the separation or the circumstances of continued employment. The commissioner, upon investigation of the request, shall determine whether relief should be granted.
Sec. 2. RCW 50.29.025 and 2007 c 51 s 1 are each amended to read as follows:
(1) ((Except as provided in subsection (2) of this
section, the contribution rate for each employer subject to contributions under
RCW 50.24.010 shall be determined under this subsection.
(a) A fund balance ratio shall be determined by dividing the balance in
the unemployment compensation fund as of the September 30th immediately
preceding the rate year by the total remuneration paid by all employers subject
to contributions during the second calendar year preceding the rate year and
reported to the department by the following March 31st. The division shall be
carried to the fourth decimal place with the remaining fraction, if any,
disregarded. The fund balance ratio shall be expressed as a percentage.
(b) The interval of the fund balance ratio, expressed as a percentage,
shall determine which tax schedule in (e) of this subsection shall be in effect
for assigning tax rates for the rate year. The intervals for determining the
effective tax schedule shall be:
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(c) An array shall be prepared, listing all qualified
employers in ascending order of their benefit ratios. The array shall show for
each qualified employer: (i) Identification number; (ii) benefit ratio; (iii)
taxable payrolls for the four calendar quarters immediately preceding the
computation date and reported to the department by the cut-off date; (iv) a
cumulative total of taxable payrolls consisting of the employer's taxable
payroll plus the taxable payrolls of all other employers preceding him or her
in the array; and (v) the percentage equivalent of the cumulative total of
taxable payrolls.
(d) Each employer in the array shall be assigned to one of twenty rate
classes according to the percentage intervals of cumulative taxable payrolls
set forth in (e) of this subsection: PROVIDED, That if an employer's taxable
payroll falls within two or more rate classes, the employer and any other
employer with the same benefit ratio shall be assigned to the lowest rate class
which includes any portion of the employer's taxable payroll.
(e) Except as provided in RCW 50.29.026, the contribution rate for each
employer in the array shall be the rate specified in the following tables for
the rate class to which he or she has been assigned, as determined under (d) of
this subsection, within the tax schedule which is to be in effect during the
rate year:
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(f) The contribution rate for each employer not qualified
to be in the array shall be as follows:
(i) Employers who do not meet the definition of "qualified
employer" by reason of failure to pay contributions when due shall be
assigned a contribution rate two-tenths higher than that in rate class 20 for
the applicable rate year, except employers who have an approved agency-deferred
payment contract by September 30 of the previous rate year. If any employer
with an approved agency-deferred payment contract fails to make any one of the
succeeding deferred payments or fails to submit any succeeding tax report and
payment in a timely manner, the employer's tax rate shall immediately revert to
a contribution rate two-tenths higher than that in rate class 20 for the
applicable rate year; and
(ii) For all other employers not qualified to be in the array, the contribution
rate shall be a rate equal to the average industry rate as determined by the
commissioner; however, the rate may not be less than one percent.
(2) Beginning with)) For contributions assessed for rate years
2005 through 2009, the contribution rate for each employer subject to
contributions under RCW 50.24.010 shall be the sum of the array calculation
factor rate and the graduated social cost factor rate determined under this
subsection, and the solvency surcharge determined under RCW 50.29.041, if any.
(a) The array calculation factor rate shall be determined as follows:
(i) An array shall be prepared, listing all qualified employers in ascending order of their benefit ratios. The array shall show for each qualified employer: (A) Identification number; (B) benefit ratio; and (C) taxable payrolls for the four consecutive calendar quarters immediately preceding the computation date and reported to the employment security department by the cut-off date.
(ii) Each employer in the array shall be assigned to one of forty rate classes according to his or her benefit ratio as follows, and, except as provided in RCW 50.29.026, the array calculation factor rate for each employer in the array shall be the rate specified in the rate class to which the employer has been assigned:
|
Benefit Ratio |
Rate Class |
Rate (percent) |
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|
At least |
Less than |
||
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|
0.000001 |
1 |
0.00 |
|
0.000001 |
0.001250 |
2 |
0.13 |
|
0.001250 |
0.002500 |
3 |
0.25 |
|
0.002500 |
0.003750 |
4 |
0.38 |
|
0.003750 |
0.005000 |
5 |
0.50 |
|
0.005000 |
0.006250 |
6 |
0.63 |
|
0.006250 |
0.007500 |
7 |
0.75 |
|
0.007500 |
0.008750 |
8 |
0.88 |
|
0.008750 |
0.010000 |
9 |
1.00 |
|
0.010000 |
0.011250 |
10 |
1.15 |
|
0.011250 |
0.012500 |
11 |
1.30 |
|
0.012500 |
0.013750 |
12 |
1.45 |
|
0.013750 |
0.015000 |
13 |
1.60 |
|
0.015000 |
0.016250 |
14 |
1.75 |
|
0.016250 |
0.017500 |
15 |
1.90 |
|
0.017500 |
0.018750 |
16 |
2.05 |
|
0.018750 |
0.020000 |
17 |
2.20 |
|
0.020000 |
0.021250 |
18 |
2.35 |
|
0.021250 |
0.022500 |
19 |
2.50 |
|
0.022500 |
0.023750 |
20 |
2.65 |
|
0.023750 |
0.025000 |
21 |
2.80 |
|
0.025000 |
0.026250 |
22 |
2.95 |
|
0.026250 |
0.027500 |
23 |
3.10 |
|
0.027500 |
0.028750 |
24 |
3.25 |
|
0.028750 |
0.030000 |
25 |
3.40 |
|
0.030000 |
0.031250 |
26 |
3.55 |
|
0.031250 |
0.032500 |
27 |
3.70 |
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0.032500 |
0.033750 |
28 |
3.85 |
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0.033750 |
0.035000 |
29 |
4.00 |
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0.035000 |
0.036250 |
30 |
4.15 |
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0.036250 |
0.037500 |
31 |
4.30 |
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0.037500 |
0.040000 |
32 |
4.45 |
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0.040000 |
0.042500 |
33 |
4.60 |
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0.042500 |
0.045000 |
34 |
4.75 |
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0.045000 |
0.047500 |
35 |
4.90 |
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0.047500 |
0.050000 |
36 |
5.05 |
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0.050000 |
0.052500 |
37 |
5.20 |
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0.052500 |
0.055000 |
38 |
5.30 |
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0.055000 |
0.057500 |
39 |
5.35 |
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0.057500 |
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40 |
5.40 |
(b) The graduated social cost factor rate shall be determined as follows:
(i)(A) Except as provided in (b)(i)(B) and (C) of this subsection, the commissioner shall calculate the flat social cost factor for a rate year by dividing the total social cost by the total taxable payroll. The division shall be carried to the second decimal place with the remaining fraction disregarded unless it amounts to five hundredths or more, in which case the second decimal place shall be rounded to the next higher digit. The flat social cost factor shall be expressed as a percentage.
(B) If, on the cut-off date, the balance in the
unemployment compensation fund is determined by the commissioner to be an
amount that will provide more than ten months of unemployment benefits, the
commissioner shall calculate the flat social cost factor for the rate year
immediately following the cut-off date by reducing the total social cost by the
dollar amount that represents the number of months for which the balance in the
unemployment compensation fund on the cut- off date will provide benefits above
ten months and dividing the result by the total taxable payroll. However, the
calculation under this subsection (((2))) (1)(b)(i)(B) for a rate
year may not result in a flat social cost factor that is more than four-tenths
lower than the calculation under (b)(i)(A) of this subsection for that rate
year.
For the purposes of this subsection, the commissioner shall determine the number of months of unemployment benefits in the unemployment compensation fund using the benefit cost rate for the average of the three highest calendar benefit cost rates in the twenty consecutive completed calendar years immediately preceding the cut-off date or a period of consecutive calendar years immediately preceding the cut-off date that includes three recessions, if longer.
(C) The minimum flat social cost factor calculated under
this subsection (((2))) (1)(b) shall be six-tenths of one
percent, except that if the balance in the unemployment compensation fund is
determined by the commissioner to be an amount that will provide:
(I) At least twelve months but less than fourteen months of unemployment benefits, the minimum shall be five-tenths of one percent; or
(II) At least fourteen months of unemployment benefits, the minimum shall be five-tenths of one percent, except that, for employers in rate class 1, the minimum shall be forty-five hundredths of one percent.
(ii)(A) Except as provided in (b)(ii)(B) of this
subsection, the graduated social cost factor rate for each employer in the
array is the flat social cost factor multiplied by the percentage specified as
follows for the rate class to which the employer has been assigned in (a)(ii)
of this subsection, except that the sum of an employer's array calculation
factor rate and the graduated social cost factor rate may not exceed six and
five-tenths percent or, for employers whose North American industry
classification system code is within "111," "112,"
"1141," "115," "3114," "3117,"
"42448," or "49312," may not exceed six percent through
rate year 2007 and may not exceed five and seven-tenths percent for rate years
2008 and ((thereafter)) 2009:
(I) Rate class 1 - 78 percent;
(II) Rate class 2 - 82 percent;
(III) Rate class 3 - 86 percent;
(IV) Rate class 4 - 90 percent;
(V) Rate class 5 - 94 percent;
(VI) Rate class 6 - 98 percent;
(VII) Rate class 7 - 102 percent;
(VIII) Rate class 8 - 106 percent;
(IX) Rate class 9 - 110 percent;
(X) Rate class 10 - 114 percent;
(XI) Rate class 11 - 118 percent; and
(XII) Rate classes 12 through 40 - 120 percent.
(B) For contributions assessed beginning July 1, 2005, through December 31, 2007, for employers whose North American industry classification system code is "111," "112," "1141," "115," "3114," "3117," "42448," or "49312," the graduated social cost factor rate is zero.
(iii) For the purposes of this section:
(A) "Total social cost" means the amount calculated by subtracting the array calculation factor contributions paid by all employers with respect to the four consecutive calendar quarters immediately preceding the computation date and paid to the employment security department by the cut-off date from the total unemployment benefits paid to claimants in the same four consecutive calendar quarters. To calculate the flat social cost factor for rate year 2005, the commissioner shall calculate the total social cost using the array calculation factor contributions that would have been required to be paid by all employers in the calculation period if (a) of this subsection had been in effect for the relevant period.
(B) "Total taxable payroll" means the total amount of wages subject to tax, as determined under RCW 50.24.010, for all employers in the four consecutive calendar quarters immediately preceding the computation date and reported to the employment security department by the cut-off date.
(c) For employers who do not meet the definition of "qualified employer" by reason of failure to pay contributions when due:
(i) The array calculation factor rate shall be two-tenths higher than that in rate class 40, except employers who have an approved agency-deferred payment contract by September 30th of the previous rate year. If any employer with an approved agency-deferred payment contract fails to make any one of the succeeding deferred payments or fails to submit any succeeding tax report and payment in a timely manner, the employer's tax rate shall immediately revert to an array calculation factor rate two-tenths higher than that in rate class 40; and
(ii) The social cost factor rate shall be the social cost factor rate assigned to rate class 40 under (b)(ii) of this subsection.
(d) For all other employers not qualified to be in the array:
(i) For rate years 2005, 2006, and 2007:
(A) The array calculation factor rate shall be a rate equal to the average industry array calculation factor rate as determined by the commissioner, plus fifteen percent of that amount; however, the rate may not be less than one percent or more than the array calculation factor rate in rate class 40; and
(B) The social cost factor rate shall be a rate equal to the average industry social cost factor rate as determined by the commissioner, plus fifteen percent of that amount, but not more than the social cost factor rate assigned to rate class 40 under (b)(ii) of this subsection.
(ii) ((Beginning with)) For contributions
assessed for rate years 2008 and 2009:
(A) The array calculation factor rate shall be a rate equal to the average industry array calculation factor rate as determined by the commissioner, multiplied by the history factor, but not less than one percent or more than the array calculation factor rate in rate class 40;
(B) The social cost factor rate shall be a rate equal to the average industry social cost factor rate as determined by the commissioner, multiplied by the history factor, but not more than the social cost factor rate assigned to rate class 40 under (b)(ii) of this subsection; and
(C) The history factor shall be based on the total amounts of benefits charged and contributions paid in the three fiscal years ending prior to the computation date by employers not qualified to be in the array, other than employers in (c) of this subsection, who were first subject to contributions in the calendar year ending three years prior to the computation date. The commissioner shall calculate the history ratio by dividing the total amount of benefits charged by the total amount of contributions paid in this three-year period by these employers. The division shall be carried to the second decimal place with the remaining fraction disregarded unless it amounts to five one‑hundredths or more, in which case the second decimal place shall be rounded to the next higher digit. The commissioner shall determine the history factor according to the history ratio as follows:
|
|
History Ratio |
|
History Factor (percent) |
|
|
At least |
Less than |
|
|
(I) |
|
.95 |
90 |
|
(II) |
.95 |
1.05 |
100 |
|
(III) |
1.05 |
|
115 |
(2) For contributions assessed in rate year 2010 and
thereafter, the contribution rate for each employer subject to contributions
under RCW 50.24.010 shall be the sum of the array calculation factor rate and
the graduated social cost factor rate determined under this subsection, and the
solvency surcharge determined under RCW 50.29.041, if any.
(a) The array calculation factor rate shall be determined as follows:
(i) An array shall be prepared, listing all qualified employers in
ascending order of their benefit ratios. The array shall show for each
qualified employer: (A) Identification number; (B) benefit ratio; and (C)
taxable payrolls for the four consecutive calendar quarters immediately
preceding the computation date and reported to the employment security
department by the cut-off date.
(ii) Each employer in the array shall be assigned to one of forty rate
classes according to his or her benefit ratio as follows, and, except as
provided in RCW 50.29.026, the array calculation factor rate for each employer
in the array shall be the rate specified in the rate class to which the
employer has been assigned:
|
Benefit Ratio |
Rate |
Rate |
|
|
At least |
Less than |
||
|
|
0.000001 |
1 |
0.00 |
|
0.000001 |
0.001250 |
2 |
0.11 |
|
0.001250 |
0.002500 |
3 |
0.22 |
|
0.002500 |
0.003750 |
4 |
0.33 |
|
0.003750 |
0.005000 |
5 |
0.43 |
|
0.005000 |
0.006250 |
6 |
0.54 |
|
0.006250 |
0.007500 |
7 |
0.65 |
|
0.007500 |
0.008750 |
8 |
0.76 |
|
0.008750 |
0.010000 |
9 |
0.88 |
|
0.010000 |
0.011250 |
10 |
1.01 |
|
0.011250 |
0.012500 |
11 |
1.14 |
|
0.012500 |
0.013750 |
12 |
1.28 |
|
0.013750 |
0.015000 |
13 |
1.41 |
|
0.015000 |
0.016250 |
14 |
1.54 |
|
0.016250 |
0.017500 |
15 |
1.67 |
|
0.017500 |
0.018750 |
16 |
1.80 |
|
0.018750 |
0.020000 |
17 |
1.94 |
|
0.020000 |
0.021250 |
18 |
2.07 |
|
0.021250 |
0.022500 |
19 |
2.20 |
|
0.022500 |
0.023750 |
20 |
2.38 |
|
0.023750 |
0.025000 |
21 |
2.50 |
|
0.025000 |
0.026250 |
22 |
2.63 |
|
0.026250 |
0.027500 |
23 |
2.75 |
|
0.027500 |
0.028750 |
24 |
2.88 |
|
0.028750 |
0.030000 |
25 |
3.00 |
|
0.030000 |
0.031250 |
26 |
3.13 |
|
0.031250 |
0.032500 |
27 |
3.25 |
|
0.032500 |
0.033750 |
28 |
3.38 |
|
0.033750 |
0.035000 |
29 |
3.50 |
|
0.035000 |
0.036250 |
30 |
3.63 |
|
0.036250 |
0.037500 |
31 |
3.75 |
|
0.037500 |
0.040000 |
32 |
4.00 |
|
0.040000 |
0.042500 |
33 |
4.25 |
|
0.042500 |
0.045000 |
34 |
4.50 |
|
0.045000 |
0.047500 |
35 |
4.75 |
|
0.047500 |
0.050000 |
36 |
5.00 |
|
0.050000 |
0.052500 |
37 |
5.15 |
|
0.052500 |
0.055000 |
38 |
5.25 |
|
0.055000 |
0.057500 |
39 |
5.30 |
|
0.057500 |
|
40 |
5.40 |
(b) The graduated social cost factor rate shall be
determined as follows:
(i)(A) Except as provided in (b)(i)(B) and (C) of this subsection, the
commissioner shall calculate the flat social cost factor for a rate year by
dividing the total social cost by the total taxable payroll. The
division shall be carried to the second decimal place with the remaining
fraction disregarded unless it amounts to five hundredths or more, in which
case the second decimal place shall be rounded to the next higher digit. The
flat social cost factor shall be expressed as a percentage.
(B) If, on the cut-off date, the balance in the unemployment
compensation fund is determined by the commissioner to be an amount that will
provide more than ten months of unemployment benefits, the commissioner shall
calculate the flat social cost factor for the rate year immediately following
the cut-off date by reducing the total social cost by the dollar amount that
represents the number of months for which the balance in the unemployment
compensation fund on the cut- off date will provide benefits above ten months
and dividing the result by the total taxable payroll. However, the calculation
under this subsection (2)(b)(i)(B) for a rate year may not result in a flat
social cost factor that is more than four-tenths lower than the calculation
under (b)(i)(A) of this subsection for that rate year.
For the purposes of this subsection, the commissioner shall determine
the number of months of unemployment benefits in the unemployment compensation
fund using the benefit cost rate for the average of the three highest calendar
benefit cost rates in the twenty consecutive completed calendar years
immediately preceding the cut-off date or a period of consecutive calendar
years immediately preceding the cut-off date that includes three recessions, if
longer.
(C) The minimum flat social cost factor calculated under this subsection
(2)(b) shall be six-tenths of one percent, except that if the balance in the
unemployment compensation fund is determined by the commissioner to be an amount
that will provide:
(I) At least ten months but less than eleven months of unemployment
benefits, the minimum shall be five-tenths of one percent; or
(II) At least eleven months but less than twelve months of unemployment
benefits, the minimum shall be forty-five hundredths of one percent; or
(III) At least twelve months but less than thirteen months of
unemployment benefits, the minimum shall be four-tenths of one percent; or
(IV) At least thirteen months but less than fifteen months of unemployment
benefits, the minimum shall be thirty-five hundredths of one percent; or
(V) At least fifteen months but less than seventeen months of
unemployment benefits, the minimum shall be twenty-five hundredths of one
percent; or
(VI) At least seventeen months but less than eighteen months of
unemployment benefits, the minimum shall be fifteen hundredths of one percent;
or
(VII) At least eighteen months of unemployment benefits, the minimum
shall be fifteen hundredths of one percent through rate year 2011 and shall be
zero thereafter.
(ii) The graduated social cost factor rate for each employer in the
array is the flat social cost factor multiplied by the percentage specified as
follows for the rate class to which the employer has been assigned in (a)(ii)
of this subsection, except that the sum of an employer's array calculation
factor rate and the graduated social cost factor rate may not exceed six
percent or, for employers whose North American industry classification system
code is within "111," "112," "1141,"
"115," "3114," "3117," "42448," or
"49312," may not exceed five and four-tenths percent:
(A) Rate class 1 - 78 percent;
(B) Rate class 2 - 82 percent;
(C) Rate class 3 - 86 percent;
(D) Rate class 4 - 90 percent;
(E) Rate class 5 - 94 percent;
(F) Rate class 6 - 98 percent;
(G) Rate class 7 - 102 percent;
(H) Rate class 8 - 106 percent;
(I) Rate class 9 - 110 percent;
(J) Rate class 10 - 114 percent;
(K) Rate class 11 - 118 percent; and
(L) Rate classes 12 through 40 - 120 percent.
(iii) For the purposes of this section:
(A) "Total social cost" means the amount calculated by
subtracting the array calculation factor contributions paid by all employers
with respect to the four consecutive calendar quarters immediately preceding
the computation date and paid to the employment security department by the
cut-off date from the total unemployment benefits paid to claimants in the same
four consecutive calendar quarters.
(B) "Total taxable payroll" means the total amount of wages
subject to tax, as determined under RCW 50.24.010, for all employers in the
four consecutive calendar quarters immediately preceding the computation date
and reported to the employment security department by the cut-off date.
(c) For employers who do not meet the definition of "qualified
employer" by reason of failure to pay contributions when due:
(i) The array calculation factor rate shall be two-tenths higher than
that in rate class 40, except employers who have an approved agency-deferred
payment contract by September 30th of the previous rate year. If any employer
with an approved agency-deferred payment contract fails to make any one of the
succeeding deferred payments or fails to submit any succeeding tax report and
payment in a timely manner, the employer's tax rate shall immediately revert to
an array calculation factor rate two-tenths higher than that in rate class 40;
and
(ii) The social cost factor rate shall be the social cost factor rate
assigned to rate class 40 under (b)(ii) of this subsection.
(d) For all other employers not qualified to be in the array:
(i) The array calculation factor rate shall be a rate equal to the
average industry array calculation factor rate as determined by the
commissioner, multiplied by the history factor, but not less than one percent
or more than the array calculation factor rate in rate class 40;
(ii) The social cost factor rate shall be a rate equal to the average
industry social cost factor rate as determined by the commissioner, multiplied
by the history factor, but not more than the social cost factor rate assigned
to rate class 40 under (b)(ii) of this subsection; and
(iii) The history factor shall be based on the total amounts of benefits
charged and contributions paid in the three fiscal years ending prior to the computation
date by employers not qualified to be in the array, other than employers in (c)
of this subsection, who were first subject to contributions in the calendar
year ending three years prior to the computation date. The commissioner shall
calculate the history ratio by dividing the total amount of benefits charged by
the total amount of contributions paid in this three-year period by these
employers. The division shall be carried to the second decimal place with the
remaining fraction disregarded unless it amounts to five one-hundredths or
more, in which case the second decimal place shall be rounded to the next
higher digit. The commissioner shall determine the history factor according to
the history ratio as follows:
|
|
History |
|
History |
|
|
At least |
Less than |
|
|
(A) |
|
.95 |
90 |
|
(B) |
.95 |
1.05 |
100 |
|
(C) |
1.05 |
|
115 |
(3) Assignment of employers by the commissioner to
industrial classification, for purposes of this section, shall be in accordance
with established classification practices found ((in the "Standard
Industrial Classification Manual" issued by the federal office of
management and budget to the third digit provided in the standard industrial
classification code, or)) in the North American industry classification
system code.
Sec. 3. RCW 50.20.050 and 2008 c 323 s 1 are each amended to read as follows:
(1) ((With respect to claims that have an effective
date before January 4, 2004:
(a) An individual shall be disqualified from benefits beginning with the
first day of the calendar week in which he or she has left work voluntarily
without good cause and thereafter for seven calendar weeks and until he or she
has obtained bona fide work in employment covered by this title and earned
wages in that employment equal to seven times his or her weekly benefit amount.
The disqualification shall continue if the work obtained is a mere sham
to qualify for benefits and is not bona fide work. In determining whether work
is of a bona fide nature, the commissioner shall consider factors including but
not limited to the following:
(i) The duration of the work;
(ii) The extent of direction and control by the employer over the work;
and
(iii) The level of skill required for the work in light of the
individual's training and experience.
(b) An individual shall not be considered to have left work voluntarily
without good cause when:
(i) He or she has left work to accept a bona fide offer of bona fide
work as described in (a) of this subsection;
(ii) The separation was because of the illness or disability of the
claimant or the death, illness, or disability of a member of the claimant's
immediate family if the claimant took all reasonable precautions, in accordance
with any regulations that the commissioner may prescribe, to protect his or her
employment status by having promptly notified the employer of the reason for
the absence and by having promptly requested reemployment when again able to
assume employment: PROVIDED, That these precautions need not have been taken
when they would have been a futile act, including those instances when the
futility of the act was a result of a recognized labor/management dispatch
system;
(iii) He or she has left work to relocate for the spouse's employment
that is due to an employer-initiated mandatory transfer that is outside the
existing labor market area if the claimant remained employed as long as was
reasonable prior to the move; or
(iv) The separation was necessary to protect the claimant or the
claimant's immediate family members from domestic violence, as defined in RCW
26.50.010, or stalking, as defined in RCW 9A.46.110.
(c) In determining under this subsection whether an individual has left
work voluntarily without good cause, the commissioner shall only consider work-connected
factors such as the degree of risk involved to the individual's health, safety,
and morals, the individual's physical fitness for the work, the individual's
ability to perform the work, and such other work connected factors as the
commissioner may deem pertinent, including state and national emergencies.
Good cause shall not be established for voluntarily leaving work because of its
distance from an individual's residence where the distance was known to the
individual at the time he or she accepted the employment and where, in the
judgment of the department, the distance is customarily traveled by workers in
the individual's job classification and labor market, nor because of any other
significant work factor which was generally known and present at the time he or
she accepted employment, unless the related circumstances have so changed as to
amount to a substantial involuntary deterioration of the work factor or unless
the commissioner determines that other related circumstances would work an unreasonable
hardship on the individual were he or she required to continue in the
employment.
(d) Subsection (1)(a) and (c) of this section shall not apply to an
individual whose marital status or domestic responsibilities cause him or her
to leave employment. Such an individual shall not be eligible for unemployment
insurance benefits beginning with the first day of the calendar week in which
he or she left work and thereafter for seven calendar weeks and until he or she
has requalified, either by obtaining bona fide work in employment covered by
this title and earning wages in that employment equal to seven times his or her
weekly benefit amount or by reporting in person to the department during ten
different calendar weeks and certifying on each occasion that he or she is
ready, able, and willing to immediately accept any suitable work which may be
offered, is actively seeking work pursuant to customary trade practices, and is
utilizing such employment counseling and placement services as are available through
the department. This subsection does not apply to individuals covered by
(b)(ii) or (iii) of this subsection.
(2))) With respect to claims that have an effective date on or after
January 4, 2004, and for separations that occur before September 6, 2009:
(a) An individual shall be disqualified from benefits beginning with the first day of the calendar week in which he or she has left work voluntarily without good cause and thereafter for seven calendar weeks and until he or she has obtained bona fide work in employment covered by this title and earned wages in that employment equal to seven times his or her weekly benefit amount.
The disqualification shall continue if the work obtained is a mere sham to qualify for benefits and is not bona fide work. In determining whether work is of a bona fide nature, the commissioner shall consider factors including but not limited to the following:
(i) The duration of the work;
(ii) The extent of direction and control by the employer over the work; and
(iii) The level of skill required for the work in light of the individual's training and experience.
(b) An individual is not disqualified from benefits under (a) of this subsection when:
(i) He or she has left work to accept a bona fide offer of bona fide work as described in (a) of this subsection;
(ii) The separation was necessary because of the illness or disability of the claimant or the death, illness, or disability of a member of the claimant's immediate family if:
(A) The claimant pursued all reasonable alternatives to preserve his or her employment status by requesting a leave of absence, by having promptly notified the employer of the reason for the absence, and by having promptly requested reemployment when again able to assume employment. These alternatives need not be pursued, however, when they would have been a futile act, including those instances when the futility of the act was a result of a recognized labor/management dispatch system; and
(B) The claimant terminated his or her employment status, and is not entitled to be reinstated to the same position or a comparable or similar position;
(iii)(A) With respect to claims that have an effective date before July 2, 2006, he or she: (I) Left work to relocate for the spouse's employment that, due to a mandatory military transfer: (1) Is outside the existing labor market area; and (2) is in Washington or another state that, pursuant to statute, does not consider such an individual to have left work voluntarily without good cause; and (II) remained employed as long as was reasonable prior to the move;
(B) With respect to claims that have an effective date on or after July 2, 2006, he or she: (I) Left work to relocate for the spouse's employment that, due to a mandatory military transfer, is outside the existing labor market area; and (II) remained employed as long as was reasonable prior to the move;
(iv) The separation was necessary to protect the claimant or the claimant's immediate family members from domestic violence, as defined in RCW 26.50.010, or stalking, as defined in RCW 9A.46.110;
(v) The individual's usual compensation was reduced by twenty-five percent or more;
(vi) The individual's usual hours were reduced by twenty-five percent or more;
(vii) The individual's worksite changed, such change caused a material increase in distance or difficulty of travel, and, after the change, the commute was greater than is customary for workers in the individual's job classification and labor market;
(viii) The individual's worksite safety deteriorated, the individual reported such safety deterioration to the employer, and the employer failed to correct the hazards within a reasonable period of time;
(ix) The individual left work because of illegal activities in the individual's worksite, the individual reported such activities to the employer, and the employer failed to end such activities within a reasonable period of time;
(x) The individual's usual work was changed to work that violates the individual's religious convictions or sincere moral beliefs; or
(xi) The individual left work to enter an apprenticeship program approved by the Washington state apprenticeship training council. Benefits are payable beginning Sunday of the week prior to the week in which the individual begins active participation in the apprenticeship program.
(2) With respect to separations that occur on or
after September 6, 2009:
(a) An individual shall be disqualified from benefits beginning with the
first day of the calendar week in which he or she has left work voluntarily
without good cause and thereafter for seven calendar weeks and until he or she
has obtained bona fide work in employment covered by this title and earned
wages in that employment equal to seven times his or her weekly benefit
amount. Good cause reasons to leave work are limited to reasons listed in (b)
of this subsection.
The disqualification shall continue if the work obtained is a mere sham
to qualify for benefits and is not bona fide work. In determining whether work
is of a bona fide nature, the commissioner shall consider factors including but
not limited to the following:
(i) The duration of the work;
(ii) The extent of direction and control by the employer over the work;
and
(iii) The level of skill required for the work in light of the
individual's training and experience.
(b) An individual has good cause and is not disqualified from benefits
under (a) of this subsection only under the following circumstances:
(i) He or she has left work to accept a bona fide offer of bona fide
work as described in (a) of this subsection;
(ii) The separation was necessary because of the illness or disability
of the claimant or the death, illness, or disability of a member of the
claimant's immediate family if:
(A) The claimant pursued all reasonable alternatives to preserve his or
her employment status by requesting a leave of absence, by having promptly
notified the employer of the reason for the absence, and by having promptly
requested reemployment when again able to assume employment. These alternatives
need not be pursued, however, when they would have been a futile act, including
those instances when the futility of the act was a result of a recognized
labor/management dispatch system; and
(B) The claimant terminated his or her employment status, and is not
entitled to be reinstated to the same position or a comparable or similar
position;
(iii) The claimant: (A) Left work to relocate for the employment of a
spouse or domestic partner that is outside the existing labor market area; and
(B) remained employed as long as was reasonable prior to the move;
(iv) The separation was necessary to protect the claimant or the
claimant's immediate family members from domestic violence, as defined in RCW
26.50.010, or stalking, as defined in RCW 9A.46.110;
(v) The individual's usual compensation was reduced by twenty-five
percent or more;
(vi) The individual's usual hours were reduced by twenty-five percent or
more;
(vii) The individual's worksite changed, such change caused a material
increase in distance or difficulty of travel, and, after the change, the
commute was greater than is customary for workers in the individual's job
classification and labor market;
(viii) The individual's worksite safety deteriorated, the individual
reported such safety deterioration to the employer, and the employer failed to
correct the hazards within a reasonable period of time;
(ix) The individual left work because of illegal activities in the
individual's worksite, the individual reported such activities to the employer,
and the employer failed to end such activities within a reasonable period of
time;
(x) The individual's usual work was changed to work that violates the
individual's religious convictions or sincere moral beliefs; or
(xi) The individual left work to enter an apprenticeship program
approved by the Washington state apprenticeship training council. Benefits
are payable beginning Sunday of the week prior to the week in which the
individual begins active participation in the apprenticeship program.
Sec. 4. RCW 50.22.010 and 1993 c 483 s 15 are each amended to read as follows:
As used in this chapter, unless the context clearly indicates otherwise:
(1) "Extended benefit period" means a period which:
(a) Begins with the third week after a week for which there is an "on" indicator; and
(b) Ends with the third week after the first week for which there is an "off" indicator: PROVIDED, That no extended benefit period shall last for a period of less than thirteen consecutive weeks, and further that no extended benefit period may begin by reason of an "on" indicator before the fourteenth week after the close of a prior extended benefit period which was in effect with respect to this state.
(2) There is an "on" indicator for this state for a week if the commissioner determines, in accordance with the regulations of the United States secretary of labor, that for the period consisting of such week and the immediately preceding twelve weeks:
(a) The rate of insured unemployment, not seasonally adjusted, equaled or exceeded one hundred twenty percent of the average of such rates for the corresponding thirteen-week period ending in each of the preceding two calendar years and equaled or exceeded five percent; or
(b) For benefits for weeks of unemployment beginning after March 6, 1993:
(i) The average rate of total unemployment, seasonally adjusted, as determined by the United States secretary of labor, for the period consisting of the most recent three months for which data for all states are published before the close of the week equals or exceeds six and one-half percent; and
(ii) The average rate of total unemployment in the state, seasonally adjusted, as determined by the United States secretary of labor, for the three-month period referred to in (b)(i) of this subsection, equals or exceeds one hundred ten percent of the average for either or both of the corresponding three-month periods ending in the two preceding calendar years.
(3) "High unemployment period" means any period of unemployment beginning after March 6, 1993, during which an extended benefit period would be in effect if:
(a) The average rate of total unemployment, seasonally adjusted, as determined by the United States secretary of labor, for the period consisting of the most recent three months for which data for all states are published before the close of the week equals or exceeds eight percent; and
(b) The average rate of total unemployment in the state, seasonally adjusted, as determined by the United States secretary of labor, for the three-month period referred to in (a) of this subsection, equals or exceeds one hundred ten percent of the average for either or both of the corresponding three-month periods ending in the two preceding calendar years.
(4) There is an "off" indicator for this state for a week only if, for the period consisting of such week and immediately preceding twelve weeks, none of the options specified in subsection (2) or (3) of this section result in an "on" indicator.
(5) "Regular benefits" means benefits payable to an individual under this title or under any state law (including benefits payable to federal civilian employees and to ex-servicemen pursuant to 5 U.S.C. chapter 85) other than extended benefits or additional benefits.
(6) "Extended benefits" means benefits payable for weeks of unemployment beginning in an extended benefit period to an individual under this title or under any state law (including benefits payable to federal civilian employees and to ex-servicemen pursuant to 5 U.S.C. chapter 85) other than regular or additional benefits.
(7) "Additional benefits" are benefits totally financed by the state and payable under this title to exhaustees by reason of conditions of high unemployment or by reason of other special factors.
(8) "Eligibility period" of an individual means:
(a) The period consisting of the weeks in his or her benefit year which begin in an extended benefit period that is in effect in this state and, if his or her benefit year ends within such extended benefit period, any weeks thereafter which begin in such period; or
(b) For an individual who is eligible for emergency unemployment compensation during the extended benefit period beginning February 15, 2009, the period consisting of the week ending February 28, 2009, through the week ending May 29, 2010.
(9) "Additional benefit eligibility period" of an individual means the period consisting of the weeks in his or her benefit year which begin in an additional benefit period that is in effect and, if his or her benefit year ends within such additional benefit period, any weeks thereafter which begin in such period.
(10) "Exhaustee" means an individual who, with respect to any week of unemployment in his or her eligibility period:
(a) Has received, prior to such week, all of the regular benefits that were payable to him or her under this title or any other state law (including dependents' allowances and regular benefits payable to federal civilian employees and ex-servicemen under 5 U.S.C. chapter 85) in his or her current benefit year that includes such week; or
(b) Has received, prior to such week, all of the regular benefits that were available to him or her under this title or any other state law (including dependents' allowances and regular benefits available to federal civilian employees and ex-servicemen under 5 U.S.C. chapter 85) in his or her current benefit year that includes such week, after the cancellation of some or all of his or her wage credits or the total or partial reduction of his or her rights to regular benefits: PROVIDED, That, for the purposes of (a) and (b), an individual shall be deemed to have received in his or her current benefit year all of the regular benefits that were payable to him or her, or available to him or her, as the case may be, even though:
(i) As a result of a pending appeal with respect to wages or employment, or both, that were not included in the original monetary determination with respect to his or her current benefit year, he or she may subsequently be determined to be entitled to more regular benefits; or
(ii) By reason of the seasonal provisions of another state law, he or she is not entitled to regular benefits with respect to such week of unemployment (although he or she may be entitled to regular benefits with respect to future weeks of unemployment in the next season, as the case may be, in his or her current benefit year), and he or she is otherwise an exhaustee within the meaning of this section with respect to his or her right to regular benefits under such state law seasonal provisions during the season or off season in which that week of unemployment occurs; or
(iii) Having established a benefit year, no regular benefits are payable to him or her during such year because his or her wage credits were canceled or his or her right to regular benefits was totally reduced as the result of the application of a disqualification; or
(c) His or her benefit year having ended prior to such week, he or she has insufficient wages or employment, or both, on the basis of which he or she could establish in any state a new benefit year that would include such week, or having established a new benefit year that includes such week, he or she is precluded from receiving regular benefits by reason of the provision in RCW 50.04.030 which meets the requirement of section 3304(a)(7) of the Federal Unemployment Tax Act, or the similar provision in any other state law; and
(d)(i) Has no right for such week to unemployment benefits or allowances, as the case may be, under the Railroad Unemployment Insurance Act, the Trade Expansion Act of 1962, and such other federal laws as are specified in regulations issued by the United States secretary of labor; and
(ii) Has not received and is not seeking for such week unemployment benefits under the unemployment compensation law of Canada, unless the appropriate agency finally determines that he or she is not entitled to unemployment benefits under such law for such week.
(11) "State law" means the unemployment insurance law of any state, approved by the United States secretary of labor under section 3304 of the internal revenue code of 1954.
NEW SECTION. Sec. 5. If any part of this act is found to be in conflict with federal requirements that are a prescribed condition to the allocation of federal funds to the state or the eligibility of employers in this state for federal unemployment tax credits, the conflicting part of this act is inoperative solely to the extent of the conflict, and the finding or determination does not affect the operation of the remainder of this act. Rules adopted under this act must meet federal requirements that are a necessary condition to the receipt of federal funds by the state or the granting of federal unemployment tax credits to employers in this state.
NEW SECTION. Sec. 6. If any provision of this act or its application to any person or circumstance is held invalid, the remainder of the act or the application of the provision to other persons or circumstances is not affected.
NEW SECTION. Sec. 7. Section 4 of this act is necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and takes effect immediately."
Correct the title.
EFFECT: Modifies the eligibility period for extended benefits for certain individuals who are eligible for emergency unemployment compensation. Adds an emergency clause applicable to the section relating to extended benefits.
--- END ---