HOUSE BILL REPORT

SSB 6536

BYSenate Committee on Economic Development and Labor (originally sponsored by Senators Anderson, Lee and Rasmussen; by request of Employment Security Department)

Limiting employer liability for unemployment benefits paid as a result of a natural disaster.

House Committe on Commerce & Labor

Majority Report:  Do pass.  (8)

      Signed by Representatives Wang, Chair; Cole, Vice Chair; Fisher, Jones, R. King, Patrick, Sanders and Walker.

House Staff:Chris Cordes (786-7117)

AS PASSED HOUSE MARCH 3, 1988

BACKGROUND:

Under Washington's unemployment insurance experience rating system, each employer in a claimant's base year is charged a proportional share of the benefits paid to the claimant.  Not all benefits, however, are charged to employers' accounts.  For example, benefits paid to claimants who are later determined to be ineligible are not charged to the employers' accounts.  There are no provisions for noncharging benefits paid to claimants whose unemployment is caused by closure of the workplace because of a natural disaster.

SUMMARY:

An employer may request relief from unemployment insurance benefit charges if the benefits were paid because of a natural disaster that caused closure or severe curtailment of operations at the employer's facility.

Any part of the act found to be in conflict with federal law is declared inoperative.

Fiscal Note:      Requested February 8, 1988.

House Committee ‑ Testified For:    Graeme Sackrison, Employment Security Department; and Vincent Roda, Washington State Hospital Association.

House Committee - Testified Against:      None Presented.

House Committee - Testimony For:    Allowing benefit non-charging will remove a disincentive to employers who may want to rebuild a plant after its destruction.

House Committee - Testimony Against:      None Presented.