Z-671                 _______________________________________________

                                                   SENATE BILL NO. 3406

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                                                                            C 043 L 85

State of Washington                              49th Legislature                              1985 Regular Session

By Senators Warnke, Newhouse, Wojahn, McManus, Rasmussen, Cantu and Vognild; by Employment Security Department request

Read first time 1/29/85 and referred to Committee on Commerce and Labor.

AN ACT Relating to the approval of a shared work compensation plan; amending RCW 50.60.030; creating a new section; and declaring an emergency.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

        Sec. 1.  Section 3, chapter 207, Laws of 1983 and RCW 50.60.030 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 units to which it applies;

          (2) An employee in an affected unit are identified by name, social security number, and by any other information required by the commissioner;

          (3) The usual weekly hours of work for an employee in an affected unit are reduced by not less than ten percent and not more than fifty percent;

          (4) Fringe benefits will continue to be provided on 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;

          (5) The plan certifies that the aggregate reduction in work hours is in lieu of temporary layoffs which would have affected at least ten percent of the employees in the affected units to which the plan applies and which would have resulted in an equivalent reduction in work hours;

          (6) ((During the previous four months the work force in the affected unit has not been reduced by temporary layoffs of workers of more than ten percent;

          (7))) The plan applies to at least ten percent of the employees in the affected unit;

          (((8))) (7) The plan is approved in writing by the collective bargaining agent for each collective bargaining agreement covering any employee in the affected unit;

          (((9))) (8) The plan will not subsidize seasonal employers during the off season nor subsidize employers who have traditionally used part-time employees; and

          (((10))) (9) 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.

          In addition to subsections (1) through (((10))) (9) of this section, the commissioner shall take into account any other factors which may be pertinent.

NEW SECTION. Sec. 2.     If any part of this act is found to be in conflict with federal requirements which 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 hereby declared to be inoperative solely to the extent of the conflict, and such finding or determination shall not affect the operation of the remainder of this act.  The rules under this act shall meet federal requirements which 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. 3.     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.

NEW SECTION. Sec. 4.     This act is necessary for the immediate preservation of the public peace, health, and safety, the support of the state government and its existing public institutions, and shall take effect immediately.