State of Washington | 63rd Legislature | 2013 Regular Session |
Read first time 01/25/13. Referred to Committee on Labor & Workforce Development.
AN ACT Relating to changing the unemployment insurance shared work program by adopting short-time compensation provisions in the federal middle class tax relief and job creation act of 2012; amending RCW 50.60.030, 50.60.090, and 50.60.110; reenacting and amending RCW 50.60.020; and creating a new section.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:
Sec. 1 RCW 50.60.020 and 2009 c 3 s 7 are each reenacted and
amended to read as follows:
Unless the context clearly requires otherwise, the definitions in
this section apply throughout this chapter.
(1) "Affected employee" means a specified employee, hired on a
permanent basis, to which an approved shared work compensation plan
applies.
(2) "Employers' association" means an association which is a party
to a collective bargaining agreement under which there is a shared work
compensation plan.
(3) (("Fringe benefits" include health insurance, retirement
benefits under benefit pension plans as defined in section 3(35) of the
employee retirement income security act of 1974, paid vacation and
holidays, and sick leave, which are incidents of employment in addition
to cash remuneration.)) "Shared work benefits" means the benefits payable to an
affected employee under an approved shared work compensation plan as
distinguished from the benefits otherwise payable under this title.
(4)
(((5))) (4) "Shared work compensation plan" means a plan of an
employer, or of an employers' association, under which there is a
reduction in the number of hours worked by employees rather than
((temporary)) layoffs.
(((6))) (5) "Shared work employer" means an employer, ((one or more
of whose)) who has at least two employees ((are)), and at least one
employee is covered by a shared work compensation plan.
(((7))) (6) "Unemployment compensation" means the benefits payable
under this title other than shared work benefits and includes any
amounts payable pursuant to an agreement under federal law providing
for compensation, assistance, or allowances with respect to
unemployment.
(((8))) (7) "Usual weekly hours of work" means the ((normal))
regular number of hours of work ((for the affected employee when he or
she is working on a full-time basis)) before the hours were reduced,
not to exceed forty hours and not including overtime.
Sec. 2 RCW 50.60.030 and 2009 c 3 s 8 are each amended to read as
follows:
An employer or employers' association wishing to participate in a
shared work compensation program shall submit a written and signed
shared work compensation plan to the commissioner for approval. The
commissioner shall approve a shared work compensation plan only if the
following criteria are met:
(1) The plan identifies the affected employees to which it applies;
(2) Each affected employee is identified by name, social security
number, and by any other information required by the commissioner;
(3) The usual weekly hours of work for each affected employee are
reduced by not less than ten percent and not more than fifty percent;
(4) ((Fringe)) The employer certifies health benefits will continue
to be provided ((on)) under the same ((basis as before the reduction in
work hours. In no event shall the level of health benefits be reduced
due to a reduction in hours)) terms and conditions as when the affected
employee worked his or her usual weekly hours of work. Affected
employees must be allowed to maintain coverage under the same terms and
conditions as employees not participating in the shared work
compensation plan. However, a change in health benefits applicable to
employees who are not participating in the shared work compensation
plan may also apply to affected employees;
(5) The employer certifies retirement benefits under a defined
benefit plan or contributions under a defined contribution plan will
continue to be provided under the same terms and conditions as when the
affected employee worked his or her usual weekly hours of work.
Affected employees must be allowed to maintain coverage in the
retirement plan under the same terms and conditions as employees not
participating in the shared work compensation plan. However, a
reduction in benefits under a defined benefit plan or a reduction in
contributions under a defined contribution plan applicable to employees
who are not participating in the shared work compensation plan may also
apply to affected employees;
(6) The employer certifies paid vacation, holidays, and sick leave
continue to be provided under the same terms and conditions as when the
affected employee worked his or her usual weekly hours of work.
Affected employees must be allowed to maintain these benefits under the
same terms and conditions as employees not participating in the shared
work compensation plan. However, a reduction in these benefits
applicable to employees who are not participating in the shared work
compensation plan may also apply to affected employees;
(((5))) (7) The plan certifies that the aggregate reduction in work
hours for each affected employee is in lieu of ((temporary)) layoffs
which would have resulted in an equivalent reduction in work hours;
(((6))) (8) The plan is approved in writing by the collective
bargaining agent for each collective bargaining agreement covering any
affected employee;
(((7))) (9) The plan will not subsidize seasonal employers during
the off season ((nor subsidize employers who have traditionally used
part-time employees; and));
(8)
(10) The employer agrees to furnish reports necessary for the
proper administration of the plan and to permit access by the
commissioner to all records necessary to verify the plan before
approval and after approval to evaluate the application of the plan;
(11) The plan includes an estimate of the number of layoffs that
would have occurred absent the ability to participate in shared work;
(12) The shared work compensation plan includes a plan to give
advance notice, when feasible, to an employee whose usual weekly hours
of work will be reduced. If not feasible, the shared work compensation
plan must explain why it is not feasible; and
(13) The employer must attest that participation is consistent with
employer obligations under federal and state law.
In addition to subsections (1) through (((8))) (13) of this
section, the commissioner shall take into account any other factors
which may be pertinent.
Sec. 3 RCW 50.60.090 and 2009 c 3 s 11 are each amended to read
as follows:
An individual is eligible to receive shared work benefits with
respect to any week only if, in addition to meeting the conditions of
eligibility for other benefits under this title, the commissioner finds
that:
(1) The individual was employed during that week as an affected
employee under an approved shared work compensation plan which was in
effect for that week;
(2) The ((individual)) affected employee was able to work and was
available for ((additional hours of work and for full-time work)) his
or her usual weekly hours of work with the shared work employer; and
(3) Notwithstanding any other provision of this chapter, an
individual is deemed to have been unemployed in any week for which
remuneration is payable to him or her as an affected employee for less
than his or her normal weekly hours of work as specified under the
approved shared work compensation plan in effect for that week.
Sec. 4 RCW 50.60.110 and 1983 c 207 s 11 are each amended to read
as follows:
(1) Except as provided in subsection (2) of this section, shared
work benefits shall be charged to employers' experience rating accounts
in the same manner as other benefits under this title are charged.
Employers liable for payments in lieu of contributions shall have
shared work benefits attributed to their accounts in the same manner as
other benefits under this title are attributed.
(2) For weeks of benefits paid between July 1, 2012, and June 28,
2015, any amount of shared work benefits reimbursed by the federal
government is not charged to experience rating accounts of employers or
to employers who are liable for payments in lieu of contributions. The
department shall remove charges for any amount of shared work benefits
reimbursed by the federal government between July 1, 2012, and the week
prior to the effective date of this section.
NEW SECTION. Sec. 5 If any part of this act is found to be in
conflict with federal requirements that are a prescribed condition to
the allocation of federal funds to the state or the eligibility of
employers in this state for federal unemployment tax credits, the
conflicting part of this act is inoperative solely to the extent of the
conflict, and the finding or determination does not affect the
operation of the remainder of this act. Rules adopted under this act
must meet federal requirements that are a necessary condition to the
receipt of federal funds by the state or the granting of federal
unemployment tax credits to employers in this state.
NEW SECTION. Sec. 6 If any provision of this act or its
application to any person or circumstance is held invalid, the
remainder of the act or the application of the provision to other
persons or circumstances is not affected.