EMPLOYMENT SECURITY DEPARTMENT

[Filed June 8, 2020, 9:22 a.m., effective June 8, 2020, 9:22 a.m.]

Effective Date of Rule: Immediately upon filing.

Purpose: The rule making is proposed in order to address the charging of the first week of unemployment benefits while the statutory requirement for claimants to serve a waiting week is waived and suspended. This rule finds that the first week of unemployment benefits should not be charged to either taxable or reimbursable employers during any week where the governor has waived or suspended statutes requiring claimants to serve a waiting week before they are eligible to receive any unemployment benefits, since this first week is fully federally funded.

Citation of Rules Affected by this Order: New WAC 192-320-079.

Statutory Authority for Adoption: RCW 50.12.040.

Other Authority: Unemployment Insurance Program Letter No. 20-20 (Apr. 30, 2020).

Under RCW 34.05.350 the agency for good cause finds that immediate adoption, amendment, or repeal of a rule is necessary for the preservation of the public health, safety, or general welfare, and that observing the time requirements of notice and opportunity to comment upon adoption of a permanent rule would be contrary to the public interest.

Reasons for this Finding: On March 18, 2020, the Governor issued Emergency Proclamation 20-21, which suspended state statute requiring unemployed individuals to serve a waiting week before they became eligible for unemployment benefits. With the consent of legislative leadership, the governor has extended this emergency proclamation until at least June 17, 2020. The governor suspended these statutes in order reduce the economic hardship on Washingtonians as the COVID-19 pandemic and the need to curtail the spread of COVID-19 caused many businesses to close or greatly reduce operations, resulting in a large number of employees being laid off. On March 29, 2020, Congress passed and the President signed the Coronavirus Aid, Relief, and Economic Security Act or CARES Act, P.L. 116-136. Sec. 2105 of the CARES Act provides that from the week ending April 4, 2020, through the week ending December 26, 2020, the federal government will fully reimburse employment security for the first week of benefits during any week for which there is no requirement that claimants serve a waiting week in order to receive benefits. This emergency rule is necessary to prevent further economic hardship on Washington employers who had to lay off employees as a result of COVID-19, especially in light of the fact that the first week an individual was unemployed has traditionally been an unpaid week, as well as the fact that the first week of benefits is currently being fully reimbursed by the federal government.

Number of Sections Adopted in Order to Comply with Federal Statute: New 0, Amended 0, Repealed 0; Federal Rules or Standards: New 0, Amended 0, Repealed 0; or Recently Enacted State Statutes: New 0, Amended 0, Repealed 0.

Number of Sections Adopted at the Request of a Nongovernmental Entity: New 0, Amended 0, Repealed 0.

Number of Sections Adopted on the Agency's own Initiative: New 1, Amended 0, Repealed 0.

Number of Sections Adopted in Order to Clarify, Streamline, or Reform Agency Procedures: New 0, Amended 0, Repealed 0.

Number of Sections Adopted using Negotiated Rule Making: New 0, Amended 0, Repealed 0; Pilot Rule Making: New 0, Amended 0, Repealed 0; or Other Alternative Rule Making: New 0, Amended 0, Repealed 0.

Date Adopted: June 8, 2020.

WAC 192-320-079Charging and reimbursement of the first week of benefits while the waiting week is waived by emergency proclamation.

(1) If the first week an individual receives unemployment benefits occurs during any week that contains at least one day wherein the governor has waived or suspended any statute or statutes requiring individuals to be unemployed for a waiting period of one week prior to becoming eligible for unemployment benefits, that first week of benefits will not be charged to the individual's employers' experience rating accounts.

(2)(a) If the first week an individual receives unemployment benefits occurs during any week that contains at least one day wherein the governor has waived or suspended any statute or statutes requiring individuals to be unemployed for a waiting period of one week prior to becoming eligible for unemployment benefits, the department will not require the individual's employers' to make payments in lieu of contributions for that first week of benefits.

(b) For any employer that makes payments in lieu of contributions that has already reimbursed the department for an individual's first week of benefits during any week that contains at least one day wherein the governor has waived or suspended any statute or statutes requiring individuals to be unemployed for a waiting period of one week prior to becoming eligible for unemployment benefits, the department will refund those amounts paid.