REPORT ON STATE LEGISLATION
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U.S. DEPARTMENT OF LABOR
REPORT ON STATE LEGISLATION REPORT NO. 2
1. Amendments to State Unemployment Insurance Laws | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Provides that excess revenue generated by disclosing information to a consumer reporting agency be deposited into the Employment Security Administration Fund, rather than the unemployment trust fund, with continuous appropriation for the administration of the State law.
Allows nonprofit organizations to escrow funds into interest bearing accounts which are used by the Department of Indusrial Relations for payment of UI.
Extends the termination date of a special assessment of 0.06 percent of all wages from March 31, 2002, to March 31, 2004. Extends to March 31, 2004, the 0.06 percent reduction in regular contribution rates.
Excludes from employment those servicesperformed by an individual in a national service program funded by the Federal government such as AmeriCorps.
Benefits Changes the amount of benefit deduction due to receipt of a social security pension from 100 percent to 50 percent of the social security payment and otherwise clarifies the pension provisions.
Establishes a 20 percent tax credit for employers for calendar years 2001 and 2002, provided the unemployment compensation fund balance is at least one and one-tenth percent of the total amount of insured wages for the preceding year. Employers who have not filed required reports or paid taxes due, who are negative balance employers, or who reimburse the fund rather than pay contributions would not be eligible for the tax credit.
Provided certain conditions are met, permits an individual to receive benefits if the individual left employment because of domestic abuse; requires the individual to provide a written statement issued by an independent party addressing the individual's status in attempting to seek assistance for domestic abuse.
Gives the Department of Labor the same right toappeal from determinations by the UI Appeal board concerning employerassessments as it has with respect to determinations regarding eligibilityfor benefits. Makes clear that parties have 10 days from themailing of the UI Appeal Board's decision to file an appeal to theSuperior Court.
Recreates the Administrative Trust Fund November 4,2000, the same day it is scheduled to be terminated. All current balances of the trust fund are carried forward, and all current sources and uses ofthe trust fund are continued.
Administration Recreates the Employment Security Administration Trust Fund November 4, 2000, the same day it is scheduled to be terminated. All current balances of the trust fund are carried forward, and all current sources and uses of the trust fund are continued.
Recreates the Special Employment Security Administration Trust Fund within the Department of Labor and Employment Security.
Recreates the Unemployment Compensation Trust Fund Benefit Account November 4, 2000, the same day it is scheduled to be terminated. All current balances of the trust fund are carried forward, and all current sources and uses of the trust fund are continued.
Recreates the Unemployment Compensation Trust Fund Clearing Account November 4, 2000, the same day it is scheduled to be terminated. All current balances of the trust fund are carried forward, and all current sources and uses of the trust fund are continued.
Extends the Employment Training Fund assessment from December 31, 2000, to December 31, 2003, for all contributing employers except those paying zero minimum rate or 5.4% maximum rate. The assessment decreases each year as follows; 0.05% for 2000, 0.03% for 2001, 0.01% for2002, and no assessment for 2003 and all subsequent years.
Replaces an obsolete reference to the Job Training Partnership Act with a citation to the Workforce Investment Act provision related to approved training. Clarifies that the disqualification related to makinga false statement or failing to report a material fact is applicable only to claimants who willfully do so.
Eliminates the requirement to reduce the benefit amount for receipt of a pension (including social security) if the claimant contributed to the pension.
EFFECTIVE January 1, 2001, increases the weekly benefit amount from 1.235 percent to 1.3078 percent of base-period wages, subject to specified maximums. Financing EFFECTIVE 2001, reduces tax rates for positive balance employers when the Trust Fund balance reaches a specified level.
Creates a process under which the Bureau of Employment Security reviews and evaluates all proposed legislation containing an unemployment compensation Abenefit change @ prior to the public hearing on the proposal. Benefit change is defined as any change in law that will cause a change in the number of people eligible, as well as any increase or decrease in the dollar amount, maximum amount, or duration of benefits payable. The Bureau's review and evaluation must address the potential impact on the unemployment compensation trust fund, on groups of individuals, employer taxes, and anything else the bureau considers appropriate. Once the review and evaluation has been completed, the joint standing committee of the legislature with jurisdiction over the proposal will review the Bureau's findings. Financing Sets forth the procedure for determining the rates chedule and planned yield in effect for a given year. Notwithstanding the procedure, a planned yield of 1.1 percent is in effectfor calendar year 2000.
Raises maximum weekly benefit amount from $250 to $280.
Amends law to reflect permanent Federal authorization of the Self-Employment Assistance (SEA) program and elimination of arequirement by the U.S. Department of Labor that States submit a plan for approval by the Secretary prior to implementing the SEA program.
Changes the conversion date to a wage record systemfrom December 31, 2001 to October 1, 2000.
Exempts from the between-terms denial provision individuals with wage credits earned during the school year from a private employer performing work under a contract between the employer and an elementary or secondary school and the employment was related to food services provided to the school by the employer. Exemption expiresDecember 31, 2001. EFFECTIVE May 16, 2000, until January 1, 2001, provides additional benefits of up to 26 weeks to individuals laid off from Hennepin Paper Company due to lack of work, if certain eligibility requirements are met. Benefit amount is the same as for the regular State program. EFFECTIVE May 16, 2000, provides additional benefits of up to 13 weeks to individuals laid off from Evtac Mining Company between the months of June and August 1999 due to lack of work, if certain eligibility requirements are met. Benefit amount is the same as forthe regular State program. Individuals who prior to September 1,2000, receive or have an agreement to receive a retirement pension financed in whole or in part by the Evtac Mining Company are noteligible. EFFECTIVE retroactively to August 1, 1999,provides that 50 percent of primary social security disabilitybenefits the applicant has received, has filed for, or intends to file for with respect to a week will be deducted from the weekly benefitamount. Regardless of this deduction provision, ineligibility for benefits for any week the applicant is receiving, has received,or has filed for primary social security disability benefits shall notapply if the Social Security Administration approved the collecting ofprimary social security disability benefits each month the applicant was employed during the base period.
Provides that the exemption for services performed byan individual who, on a temporary, part-time, contract basis [etc], doesnot apply to such service performed for the State or any of its politicalsubdivisions or nonprofit organizations.
Exempts employers from obligation to pay contributions of less than $1.
Changes the composition and appointment operatingprocedures of appellate board of the department of employment security to,among other things:
Permits appeals to the appellate board of decisions of the commissioner.
Established a committee to review the inconsistencies within the State's statutes concerning definitions for, and treatment of, independent contractors. (Report was due 11/1/99.) Coverage EFFECTIVE January 1, 2000 Exempts the following services from the definition of employment:
when these services are done on a temporary, part-time, contract basis and (either in the field or over the telephone) and on premises not used or controlled by the person for whom such contract services are being provided.
Provides that no otherwise eligible individual shall be denied benefits because the individual left work or was discharged due to circumstances resulting from being a victim of domestic violence. Provides for non-charging of benefits paid to such individuals.
Modifies the eligibility conditions to require that an unemployed individual have wages in at least two quarters of his base period rather than wages equal to one and one-fourth of his/her high quarter wages. Modifies the eligibility conditions for subsequent benefit years to require that an individual must have performed services in employment and earned remuneration for such services equal to at least five times his weekly benefit amount in his prior benefit year rather than remuneration equal to the lesser of three-thirteenths of the individual's high quarter wages and six times his weekly benefit amount. Eliminates the provision which provided for non-charging benefits based on work performed in a work release program designed to give an inmate of a correctional institution an opportunity to work while serving a term of incarceration if the inmate's separation was caused by his release from prison. Deletes the requirement that wages required toqualify for subsequent benefit years be in insured work. Coverage Expands the exclusion from employment for service performed in the employ of a hospital, if the service is performed by a patient of the hospital, or services performed by an inmate of a custodial or penal institution, from only governmental and nonprofit entities to any employer. Financing Changes the factors used for determining rates chedules applicable in a given year
Extends the termination date for requiring the appealboard to establish qualifications and procedures for the registration ofagents authorized to represent certain claimants and other requirementsfor 2 years through December 31, 2002. Extends the termination date for requiring the appeal board to maintain lists of authorized agents and attorneys available to represent claimants and requiring the availability of the lists to claimants on request for 2 years through December 31, 2002.
Requires the UI agency to notify the state or localchild support enforcement agency enforcing a child support obligation ofthe claimant who owes the obligation only if the claimant is determine deligible for benefits. Requires the UI agency to deduct and withold from benefits payable to a claimant owing child support obligations theappropriate amount as specified in the State's UI law. (Resolvespending issue.) Specifies that for purposes of determining whether an individual has had sufficient employment since the beginning of the individual's previous benefit year to file for a subsequent benefit year,employment means the performance of services for which remuneration is payable. Delays until March 3, 2002, the implementation of the requirement that a claimant be free from certain separation disqualifications to qualify for benefits. Eliminates the provision exempting employers of individuals engaged in connection with the commercial canning or freezing of fruits and vegetables to furnish separation notices prior to separation. Provides that a written notice of an individual filing for benefit rights does not need to be sent to the individual's most recent separating employer if: -The administrator isprohibited by law from revising a pervious determination concerning a disqualification from benefits; -The individual's employer indicates the notice is not needed; -The individual's separation is one among fifty or more individuals separated by the same employer due to a lack of work, the administrator received information regarding the separations, and the reason for the separation is not disputed. Administration Requires appropriate charging and crediting to a suspense account when claimant eligibility determinations are pending (not final), rather than to a contributing employer's account. Authorizes the director to reduce, in whole or inpart, the amount of interest, forfeiture, or fines required to be paid if the director determines that the reduction is in the best interest of the unemployment compensation fund. Modifies the conditions which a contributing employermust meet to qualify for an experience rate, specifying that the employer qualifies only if there have been 4 consecutive quarters, ending on June30 immediately prior to the computation date, throughout which the employer's account was chargeable with benefits. (Resolves pendingissue.) Eliminates all provisions regarding the joint certification and expedited decision procedure related to 500 similarly situated claimants whose claims are pending a redetermination or appeal. Specifies that an individual who is provided temporary work assignments under agreed terms and conditions (which require the individual to contact the employer upon the completion of assignments) is not eligible for benefits if the individual fails to contact the employer about future assignments. Authorizes the director to disclose wage information to a consumer reporting agency for the purpose of verifying an individual's income under a written agreement when certain requirementsare met. Coverage Excludes from employment: -Service performed by an individual working as an election official or election worker if the amount of remuneration received by the individual during the calendar yearfor services as an election official or election worker is less than$1,000. -Service performed for an elementary or secondary school that is operated primarily for religious purposes, and exempt from Federal income taxation as provided by Federal law. -Service performed by aperson committed to a penal institution. Requires that determinations of employment of anauthorized provider of a type B family day-care home for UI purposes are to be determined under the rules and regulations under the State's UI law. (Resolves pending issue.)
Imposes a 0.03 percent employment security reemployment assessment payable by all contributory employers for taxyears 2001, 2002, and 2003. Establishes a pilot research and demonstration rapidreemployment program. Creates an employment security reemployment fund to deposit the assessment and other monies. Requires monies received inthe fund to be used, among other things, to pay administrative expenses incurred to implement and operate a three-year pilot research and demonstration rapid reemployment program. Reduces each contributory employer's unemploymentinsurance tax rate by 0.03 percent.
Increases the required Job Development Assessment paid by employers from 0.19 percent to 0.21 percent beginning January 1, 2001. The 0.02 percent will be used to support necessary core services in the unemployment insurance and employment services programs by the department of labor and training. Increases the unemployment insurance tax reduction applicable to contributory employers from 0.19 percent to 0.21 percent.
Provides that an individual is eligible for waiting period credit or benefits if the individual voluntary leaves work due todomestic abuse and the individual: (l) fears domestic abuse at or on routeto or from place of employment, (2) wishes to relocate to anothergeographical location to avoid future domestic abuse against theindividual or the individual's family; or (3) believes that leaving workis necessary for future safety of individual or the individual'sfamily. Requires the individual to provide documentation of domestic abuse such as police or court records, or other documentationfrom a shelter worker, attorney, clergy member or medical or otherprofessional from which assistance was sought. Requires confidentiality of evidence documentation unless individual gives consent for disclosure.
Deletes the requirement that social security benefits be deducted from an individual's weekly benefit amount.
For benefit years established on or after July 2, 2000, allows for the payment of benefits for the waiting period provided the claimant made a claim for benefits and is determined eligible and certified for benefits in the waiting period and in each of the three consecutive weeks immediately following such waiting period.
Deletes the disqualification related to holidaypay. EFFECTIVE July 1, 2000; repeals the requirement that an individual serve a one-week waiting period in order to be eligible for benefits.
Clarifies that services provided in the home by anindividual, pursuant to an agreement among a service recipient, a publichuman services agency and such individual, constitute Aemployment@ whencoverage of such services is required by the Federal Unemployment TaxAct. (Resolves a conformity issue.)
EFFECTIVE 11/28/99 Makes benefit increase scheduled to occur July 1, 2000, retroactive to November 28, 1999; maximum weekly benefit amount increased form $230 to $232. Waives waiting week for claims filed EFFECTIVE November 28, 1999, and after, for any individual whose unemployment was caused by his employer terminating operations, closing its business or declaring bankruptcy without paying the final wages earned. Provides that, if paid late, final wages from an employer that terminates operations, closes its business, or declares bankruptcy, will not be offset against an individual's unemployment benefits or cause an individual to be declared overpaid benefits. EFFECTIVE 4/7/00 Provides that a shift worker shall not be deemed unavailable for work if the worker is currently enrolled in one or more classes of education related to employment or is continuing in acertificate or degree program at an institution of higher education, ifthe enrollment would only limit the individual's availability for oneshift and the individual is otherwise available to work any of the othershifts.
Creates a legislative task force to review and makerecommendations regarding the changes needed to ensure the unemploymentinsurance system meets the needs of employers and workers in thetwenty-first century. Instructs workforce training and educationcoordinating board to conduct a review and analysis of the programproviding additional unemployment benefits program. Benefits
Changes the computation of the Aaverage annual wagefor contribution purposes @ from a single year to a three-year average.
Increases the disqualification for leaving work voluntarily without good cause or because of marital or domestic responsibilities, being discharged for misconduct, or refusing suitable work:
Clarifies that the exception to the voluntary quit disqualification for individuals who leave work to relocate for a spouse's employment only applies when, among other conditions, it is due to an employer-initiated, mandatory transfer. Provides, subject to availability to funds,additional unemployment compensation for certain individuals in anapproved training program who have exhausted their regular unemployment compensation. Maximum number of weeks is 26, except for workers in aerospace, forestry, and fishing where the maximum is 48 weeks until June30, 2002. Financing Limits amount available for additional unemployment compensation for trainees to $60 million for the two year period from June30, 2000 to June 30, 2002, and thereafter $20 million annually, plus any carry over funds. Provides that training benefits paid not be chargedto contributing employers. Changes reference from the Standard IndustrialClassification to the North American Industry Classification SystemCode.
Lowers taxable wage base from $26,500 to $24,300 forrate year 2000. Lowers fund balance ratio triggers for various tax schedules and lowers tax rates for employers below the maximum rate. Requires that sixty percent of tax collected to fund administration of additional benefits for trainees who have exhausted regular UI benefits be deposited in the unemployment trust fund.
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