S-4472               _______________________________________________

                                                   HOUSE BILL NO. 1913

                        _______________________________________________

State of Washington                              50th Legislature                              1988 Regular Session

By Representatives Wang, R. King and Belcher

Read first time 1/29/88 and referred to Committee on Commerce & Labor.

AN ACT Relating to employer reporting of hours worked by employees; amending RCW 50.12.070; adding a new section to chapter 50.24 RCW; and creating a new section.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

NEW SECTION. Sec. 1.  A new section is added to chapter 50.24 RCW to read as follows:

          Irrespective of any other provisions of this title, an employer who has knowingly made a false statement or representation involving a material fact or knowingly failed to report a material fact, thereby reducing or eliminating his or her obligation to pay contributions under this title, is liable for the amount of the underpayment plus a penalty of fifty percent of the underpayment.  These amounts shall be collected as otherwise provided by this title and shall be used exclusively for administrative activities relating to the prevention and recovery of underpayments.

NEW SECTION. Sec. 2.     The code reviser shall include cross-reference sections in chapter 50.20 RCW to RCW 50.24.110 (notice to withhold and deliver) and 50.24.115 (filing of warrants for benefit overpayment assessments).

        Sec. 3.  Section 46, chapter 35, Laws of 1945 as last amended by section 8, chapter 23, Laws of 1983 1st ex. sess. and RCW 50.12.070 are each amended to read as follows:

          Each employing unit shall keep true and accurate work records, containing such information as the commissioner may prescribe.  Such records shall be open to inspection and be subject to being copied by the commissioner or his or her authorized representatives at any reasonable time and as often as may be necessary.  The commissioner may require from any employing unit any sworn or unsworn reports with respect to persons employed by it, which he or she deems necessary for the effective administration of this title.  Each employer shall make periodic reports at such intervals as the commissioner may by regulation prescribe, setting forth the remuneration paid for employment to workers in its employ, the names of all such workers, and ((until April 1, 1978, the number of weeks for which the worker earned the "qualifying weekly wage", and beginning July 1, 1977,)) the hours worked by each worker and such other information as the commissioner may by regulation prescribe.  The employing unit shall report the actual hours worked by each employee during the reporting period.  If it is determined that the employing unit calculated the number of hours reported to the department in any manner other than by calculating actual hours worked, the employing unit shall be guilty of a violation of section 1 of this 1988 act.

          In the event the employing unit fails or has failed to report accurately the number of hours in a reporting period for which a worker worked in the manner required under this section such number will be computed by the commissioner and given the same force and effect as if it had been reported by the employing unit.  In computing the number of such hours worked the total wages for the reporting period, as reported by the employing unit, shall be divided by the dollar amount of the state's minimum wage in effect for such reporting period and the quotient, disregarding any remainder, shall be credited to the worker:  PROVIDED, That although the computation so made will not be subject to appeal by the employing unit, monetary entitlement may be redetermined upon request if the department is provided with credible evidence of the actual hours worked.

If the failure of the employing unit to report accurately as required under this section constitutes a violation of section 1 of this 1988 act, the department shall restore any benefit underpayment resulting therefrom to the employee in a lump sum payment.