SENATE BILL REPORT

SB 5918

BYSenators Anderson and Newhouse

Extending unemployment insurance coverage to agricultural workers over eighteen and revising benefit and qualification provisions.

Senate Committee on Agriculture

Senate Hearing Date(s):February 17, 1989

Senate Staff:John Stuhlmiller (786-7446); Steve Boruchowitz (786-7429)

AS OF FEBRUARY 17, 1989

BACKGROUND:

Currently, agricultural labor is not considered "employment" for purposes of unemployment compensation unless it is performed for an employer who has a payroll of $20,000 or more in any calendar quarter, or employs 10 or more workers in a 20 week period, in the current or prior year.  Agricultural workers on "small" farms therefore are not covered by unemployment compensation and the employers do not pay unemployment insurance taxes.

SUMMARY:

Persons under 18 years of age working on "small" farms are excluded from unemployment compensation coverage.

Newly covered employers will contribute for the first three years at a rate of 2 percent.

General unemployment compensation administration procedures are revised.  All base year employers are to be notified in a timely manner about claims filings.  To be eligible for benefits, a worker needs to have earned at least 227 hours in at least two quarters of a base year (out of the total 680 hours needed).

The weekly benefit amount is equal to 1 percent of total annual wages in the base year.

The department is directed to adopt rules to exclude all hours of agricultural labor from the determination of a base year unless the individual earns more than 520 hours in agricultural labor.  Employer contributions made for individuals who fail to work 520 hours are to be rebated.

Work search requirements for agricultural workers are clarified to ensure an individual accepts any agricultural work.

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 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.

EFFECT OF PROPOSED SUBSTITUTE:

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

Provisions covering contributions for persons working less than 520 hours are revised to require rules to collect contributions from employers after the individual has worked more than thirteen weeks in four consecutive quarters.  Appropriate reporting requirements are added.

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

Suitable work provisions are clarified to conform with federally mandated exemptions (elsewhere in statute).

The department is directed to improve enforcement of both employer and claimant fraud.

The federal "savings" clause is clarified using standardized language.

Appropriation:    none

Revenue:    yes

Fiscal Note:      requested February 15, 1989