FINAL BILL REPORT

SSB 5232

                                  C 278 L 87

BYSenate Committee on Commerce & Labor (originally sponsored by  Senators Warnke, Lee, Vognild, Smitherman and Wojahn)

Modifying manner in which base years and benefit years are established for purposes of unemployment compensation.

Senate Committee on Commerce & Labor

House Committe on Commerce & Labor

SYNOPSIS AS ENACTED

BACKGROUND:

A benefit year for unemployment compensation cannot be established unless a claimant has worked 680 hours in the base year.  The base year is defined as the first four of the last five completed calendar quarters prior to the date of application for benefits.

If an individual applied for benefits on February 1, 1987, the base year would be the first three calendar quarters of 1986 and the last quarter of 1985.  If this individual worked 500 hours in the third quarter of 1986, 500 hours in the fourth quarter of 1986 and 100 hours in the first quarter of 1987 prior to February 1, he or she would not be eligible for unemployment compensation because only 500 hours were earned during the base year.  None of these hours could have been used for the establishment of a prior claim.

If an individual files a claim which uses hours worked prior to the establishment of a previous claim, that individual must have earned wages equal to or greater than six times the new weekly benefit amount in the last two quarters of the new base year.

SUMMARY:

The Employment Security Department shall initially use the first four of the last five completed calendar quarters as the base year.  If a benefit year is not established using the first method, the Department shall use the last four completed calendar quarters as the base year.

Computations using the last four completed calendar quarters shall be based on wage items available on the date of application for a new claim.  Wage items received after the date of application shall be made available to the claim as they are added to Department systems.  The Department is not required to contact employers or take other actions not required by claims which use the first four of last five completed calendar quarters.

A new claim cannot be established with hours which were used in the establishment of a prior claim.

VOTES ON FINAL PASSAGE:

      Senate    25    22

      House 93   5 (House amended)

      Senate    49     0 (Senate concurred)

EFFECTIVE:July 26, 1987