SENATE BILL REPORT

SB 6537

BYSenators West, Smitherman, Lee and Anderson; by request of Employment Security Department

Limiting applicability of administrative rulings relating to individual unemployment claims to other legal actions.

Senate Committee on Economic Development & Labor

Senate Hearing Date(s):January 18, 1988; January 26, 1988

Majority Report:  Do pass.

      Signed by Senators Lee, Chairman; Anderson, Vice Chairman; Cantu, Conner, Deccio, McMullen, Saling, Smitherman, Warnke, West, Williams.

Senate Staff:Bill Lynch (786-7427)

                  February 12, 1988

AS PASSED SENATE, FEBRUARY 11, 1988

BACKGROUND:

Administrative hearings allow for prompt determinations of an individual's eligibility for certain state benefits or programs.  There has been a recent trend, however, for unemployment compensation hearings to be contested at length with formal legal representation by all the parties.  These administrative hearings are being contested in such a manner because the parties are concerned that the final order will be determinative in a subsequent legal action.  Legal actions which are potentially affected include suits brought for unjust dismissal, sex discrimination, race discrimination, and age discrimination.

It has been suggested by some legal commentators that administrative hearings will become lengthy full-blown legal proceedings unless either the courts or the Legislature prohibit the hearings from being binding in other actions.

SUMMARY:

Any determinations made by the Department of Employment Security, an administrative law judge, or any other agent for the Department for the purpose of determining whether an individual is eligible for unemployment compensation or some other program of the Department, is not binding nor admissible as evidence in a separate action that does not pertain to the Department's programs.

Appropriation:    none

Revenue:    none

Fiscal Note:      none requested

Senate Committee - Testified: Grame Sackrison, Dept. of Employment Security