SENATE BILL REPORT

SB 5232

BYSenators 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

Senate Hearing Date(s):February 3, 1987; February 20, 1987

Majority Report:  That Substitute Senate Bill No. 5232 be substituted therefor, and the substitute bill do pass.

      Signed by Senators Warnke, Chairman; Smitherman, Vice Chairman; Tanner, Vognild, Williams, Wojahn.

Senate Staff:Mark McDermott (786-7429)

                  February 25, 1987

AS REPORTED BY COMMITTEE ON COMMERCE & LABOR, FEBRUARY 20, 1987

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 52 completed calendar weeks as the base year.

The requirement of earning six times the weekly benefit amount in the last two quarters of the base year, if any hours were earned prior to the establishment of a previous claim, is changed to any employment in the last two quarters.  If the base year was established using the last 52 weeks prior to the filing of the claim, earnings must occur in the last 26 weeks.

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

EFFECT OF PROPOSED SUBSTITUTE:

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

Existing language is retained regarding the six times the weekly benefit amount in the last two quarters of the base year.

Fiscal Note:      available

Senate Committee - Testified: Dale Tuvey, Employer Advisory Services; Tom McGuire, David Knox, Robert Friedman, Evergreen Legal Services; Clif Finch, AWB; Graeme Sakrisen, Employment Security