HOUSE BILL REPORT

ESHB 655

BYHouse Committee on Commerce & Labor (originally sponsored by Representatives R. King, Wang, Cole, Sayan and Unsoeld; by request of Employment Security Department)

Extending coverage of unemployment insurance to agricultural employees.

House Committe on Commerce & Labor

Majority Report:     The substitute bill be substituted therefor and the substitute bill do pass.  (7)

     Signed by Representatives Wang, Chair; Cole, Vice Chair; Fisch, Fisher, R. King, O'Brien and Sayan.

Minority Report:     Do not pass. (3)

     Signed by Representatives Patrick, Sanders and C. Smith.

House Staff:Chris Cordes (786-7117)

AS PASSED HOUSE FEBRUARY 11, 1988

BACKGROUND:

Workers in agricultural employment are covered for unemployment compensation benefits if the employer: (1) has paid twenty thousand dollars or more in wages for agricultural labor during any quarter in the current or preceding calendar year; (2) or has employed ten or more agricultural workers for some part of a day in each of twenty 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 may be employed full-time in agricultural labor, but be ineligible for unemployment compensation following a layoff from employment.

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.

Fiscal Note:    Requested February 10, 1987.

House Committee ‑ Testified For:     Graeme Sackrison, Employment Security Department; Ricardo Garcia; Thomas Villanueva, United Farm Workers;  Bill Nicacio; George Finch, Central Campesino;  Becky Smith, Evergreen Legal Services;  Manual Cortez; Pedro Rios; Samuel Martinez, Washington State Migrant Council; Jeff Johnson, Washington State Labor Council; and Hector Gonzalez, Commission on Mexican-American Affairs.

House Committee - Testified Against: Frank DeLong, Washington Horticultural Association;  Bruce Briggs, Washington State Nurserymen's Association;  Bill Roberts, Washington State Farm Bureau; Dan Coyn, Washington Dairy Federation; Stu Trefry, Washington State Grange; Duane Kaiser; and Marlyta Deck, Cattlemen's Association.

House Committee - Testimony For:     Agricultural workers should be covered under unemployment compensation law in the same manner as other workers, including other seasonal workers.  It is not equitable to exclude this major part of the state's workforce from the law's protections.

House Committee - Testimony Against: The state's small agricultural growers are enduring economic hardships.  Adding another tax burden could cripple the small grower.