SENATE BILL REPORT

SB 5198

As of January 29, 2001

Title:  An act relating to the denial of unemployment insurance benefits due to criminal acts of the employee.

Brief Description:  Preventing employees who commit criminal acts from requalifying for unemployment insurance.

Sponsors:  Senators B. Sheldon, Winsley, Prentice, Gardner, Thibaudeau, Oke, T. Sheldon, Regala, Haugen, Rasmussen, Kohl‑Welles, Fraser, Costa, Jacobsen and Franklin.

Brief History:

Committee Activity:  Labor, Commerce & Financial Institutions:  2/1/01.

SENATE COMMITTEE ON LABOR, COMMERCE & FINANCIAL INSTITUTIONS

Staff:  Joanne Conrad (786‑7472)

Background:  Under current law, it is possible for a worker to commit a wrongful act against an employer, and still collect unemployment insurance after requalifying by working for a new employer.  There have been cases where the employer who was wronged was charged for the unemployment benefits of the wrongdoer.

Summary of Bill:  The definition of "misconduct," for purposes of unemployment insurance benefits, is expanded to include criminal acts by employees at an employer's business or in willful disregard of the employer's interest. Such acts disqualify the employee from receiving unemployment insurance benefits  for one calendar year from the date of discharge or suspension for work-related misconduct.  Employees can later requalify for unemployment insurance in the future.

Appropriation:  None.

Fiscal Note:  Not requested.

Effective Date:  Ninety days after adjournment of session in which bill is passed.