SENATE BILL REPORT

HB 1439

BYRepresentatives Fox, Hargrove, Vekich, Rasmussen and Appelwick

Restricting first source agreements with the employment security department.

House Committe on Trade & Economic Development

Senate Committee on Economic Development & Labor

Senate Hearing Date(s):February 22, 1988

Senate Staff:Jack Brummel (786-7428)

AS OF FEBRUARY 19, 1988

BACKGROUND:

In a 1986 act, the Legislature directed the Employment Security Department to encourage the use of first-source contracts with employers desiring to locate or expand in the state.  Such contracts involve an agreement by an employer to screen applicants for employment from a pool of qualified individuals submitted to the employer by the department and to consider hiring from that pool.  The department was authorized to provide financial incentives to employers signing first-source agreements with the department.  The legislation permits the employer and perspective employee to agree to a thirty-day training period, at the end of which time the employer shall determine whether to hire the individual.  During the training period, participants may continue to draw unemployment benefits, public assistance, or both.

SUMMARY:

Financial incentives to employers signing first-source hiring contracts with the department are not available to employers assuming the operation or facilities of prior employers if employment is not offered to non-management employees of the prior employer, with wages, hours, and working conditions that are similar or substantially equivalent. The restriction does not apply in situations in which the business is substantially different in character from that operated by the prior employer.

Appropriation:    none

Revenue:    none

Fiscal Note:      none requested