SENATE BILL REPORT

SB 5830

BYSenator Lee

Extending coverage of unemployment insurance to agricultural employees over eighteen years of age.

Senate Committee on Economic Development & Labor

Senate Hearing Date(s):February 17, 1989; March 1, 1989

Majority Report:  That Substitute Senate Bill No. 5830 be substituted therefor, and the substitute bill do pass.

      Signed by Senators Lee, Chairman; Anderson, Vice Chairman; McDonald, Matson, Saling, West.

Senate Staff:Stephen Boruchowitz (786-7429)

                  March 1, 1989

AS REPORTED BY COMMITTEE ON ECONOMIC DEVELOPMENT & LABOR, MARCH 1, 1989

BACKGROUND:

Workers in agricultural employment are covered for unemployment compensation benefits if the employer has paid $20,000 or more in wages for agricultural labor during any quarter in the current or preceding calendar year or has employed ten or more agricultural workers for some part of a day in each of 20 different calendar weeks in the current or preceding calendar year.

Before an employee is eligible for unemployment compensation, the employee must have 680 hours of covered employment in his or her base year (four of the previous five calendar quarters.)  If an agricultural worker is employed by an employer who does not meet the criteria for inclusion in covered employment, the hours worked for that employer are not "covered" hours.  Under these circumstances, a worker might be employed full-time in agricultural labor but be ineligible for unemployment compensation following a layoff from employment because the hours worked in that labor are not included in calculating "covered hours."

SUMMARY:

Unemployment compensation coverage is extended to all agricultural employees, except for employees under the age of 18 working for agricultural employers who have not paid $20,000 or more in wages for agricultural labor during any quarter in the current or preceding calendar year or who have not employed 10 or more agricultural workers in each of 20 different calendar weeks in that year.  Employers newly covered by the act for unemployment insurance will pay contributions at the rate of 1 percent until the employer is qualified for experience rating.

EFFECT OF PROPOSED SUBSTITUTE:

Newly covered employers will pay contributions at the rate of 2 percent.

Persons who work on "small" farms in agricultural labor for less than 13 calendar weeks during any four consecutive calendar quarters are not covered.

To be eligible for benefits, employees must work at least 227 hours in other than the "high quarter" of the base year.

The Department of Employment Security is directed to adopt rules to collect contributions from employers after an individual has worked in agricultural labor for more than thirteen weeks in four consecutive quarters.  Appropriate reporting requirements are added.

Work search requirements for agricultural workers are clarified to ensure an individual accepts any agricultural work.  Suitable work provisions are clarified to conform with federally mandated exemptions (elsewhere in statute).

The department is directed to:  increase work search requirements; provide prompt notification of claims and provide information on employer's appeal rights; better inform employers on the operation of the unemployment laws; reduce claimant and employer fraud; and implement combined reporting for state agencies.  The department shall report to the Legislature in 1990, 1991 and 1992 on the implementation of these requirements.

A federal "savings" clause is added.

Appropriation:    none

Revenue:    yes

Fiscal Note:      available

Senate Committee - Testified: Graeme Sackrison, Employment Security (pro); Larry Kenney, Washington State Labor Council; Clif Finch; Tomas Villanueva, United Farm Workers; Tawnya Trevin, Commission on Hispanic Affairs (pro); Bill Roberts, Washington State Farm Bureau (con)