HOUSE BILL REPORT

HB 2769

BYRepresentatives R. Meyers, Jones and Vekich; by request of Employment Security Department

Revising provisions for deductions from unemployment compensation weekly benefits.

House Committe on Commerce & Labor

Majority Report:  Do pass.  (11)

      Signed by Representatives Vekich, Chair; Cole, Vice Chair; Smith, Ranking Republican Member; Forner, Jones, R. King, Leonard, O'Brien, Prentice, Walker and Wolfe.

House Staff:Chris Cordes (786-7117)

Rereferred House Committee on Appropriations

Majority Report:  Do pass.  (26)

      Signed by Representatives Locke, Chair; Grant, Vice Chair; H. Sommers, Vice Chair; Silver, Ranking Republican Member; Youngsman, Assistant Ranking Republican Member; Belcher, Bowman, Braddock, Brekke, Dorn, Doty, Ebersole, Ferguson, Hine, Inslee, May, McLean, Nealey, Peery, Rust, Sayan, Spanel, Sprenkle, Valle, Wang and Wineberry.

House Staff:      John Woolley (786-7154)

AS REPORTED BY COMMITTEE ON APPROPRIATIONS FEBRUARY 5, 1990

BACKGROUND:

If an otherwise eligible claimant for unemployment compensation finds temporary part-time work and is paid more than $5 during any week, the claimant's weekly unemployment benefit is reduced by 75 percent of the earnings over $5.  Any amount earned that is $5 or less is disregarded.

SUMMARY:

The amount of a claimant's weekly earnings that will be disregarded for purposes of computing the claimant's unemployment compensation benefits is raised from $5 to $25.

CHANGES PROPOSED BY COMMITTEE ON APPROPRIATIONS:  None.

Fiscal Note:      Available.

Effective Date:The bill takes effect on July 1, 1990.

House Committee ‑ Testified For:    (Commerce & Labor)  Graeme Sackrison, Employment Security Department; Jeff Johnson, Washington State Labor Council; and Clif Finch, Association of Washington Business (with concerns).

(Appropriations)  Graeme Sackrison, Employment Security.

House Committee - Testified Against:      (Commerce & Labor)  No one.

(Appropriations)  No one.

House Committee - Testimony For:    (Commerce & Labor)  The amount of the part-time wages that a claimant may earn without affecting his or her unemployment compensation has not been adjusted since 1971.  The authority to disregard earnings under $5 is not much incentive for a worker to try to find temporary employment.  It may save the trust fund money in the long run if temporary jobs give the claimant an opportunity to obtain full-time work.  Although the amount of savings cannot be estimated with any certainty, raising the earnings that may be disregarded should be given serious consideration.

(Appropriations)  The bill provides increased incentive to find temporary part-time work.  There has been no change in the disregard level since 1971.

House Committee - Testimony Against:      (Commerce & Labor)  None.

(Appropriations)  None.