FINAL BILL REPORT

SSB 6536

                                   C 27 L 88

BYSenate Committee on Economic Development & 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.

Senate Committee on Economic Development & Labor

House Committe on Commerce & Labor

SYNOPSIS AS ENACTED

BACKGROUND:

Employer unemployment taxes are determined in part by an experience report maintained by the Department of Employment Security.  This report is based upon benefits paid to unemployed employees.  When such benefits are paid, the employer's account is "charged."

There is no mechanism by which an employer's account is not charged when employees are paid benefits and are unemployed due to a catastrophe that closes the employment site.  For example, a plant closed for several months due to a fire will cause that employer's experience report to reflect large unemployment benefits paid, and therefore that employer's tax rate will rise significantly.

SUMMARY:

Benefits paid as a result of a catastrophic closing or severe curtailment of an employer's facility -- such as fire, flood, etc. -- are not charged against that employer's experience report if that employer petitions for such relief, and if the Commissioner of Employment Security approves the request.

VOTES ON FINAL PASSAGE:

      Senate    47     0

      House 94   0

EFFECTIVE:June 9, 1988