Bill Text: IN HB1288 | 2013 | Regular Session | Introduced
Bill Title: Work sharing unemployment benefit.
Spectrum: Slight Partisan Bill (Republican 2-1)
Status: (Introduced - Dead) 2013-01-14 - First reading: referred to Committee on Employment, Labor and Pensions [HB1288 Detail]
Download: Indiana-2013-HB1288-Introduced.html
Citations Affected: IC 22-4.
Synopsis: Work sharing unemployment benefit. Establishes a work
sharing unemployment insurance program. Requires an employer to
submit a work sharing plan for approval by the commissioner of the
department of workforce development. Establishes the work sharing
benefit as equal to the employee's unemployment benefit reduced by a
percentage that is equivalent to the number of hours by which the
employee's normal weekly work hours are reduced.
Effective: July 1, 2013.
January 14, 2013, read first time and referred to Committee on Employment, Labor and
Pensions.
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A BILL FOR AN ACT to amend the Indiana Code concerning labor
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(b) When it has been determined that an individual has been separated from employment under disqualifying conditions as outlined in this section, the maximum benefit amount of the individual's current
claim, as initially determined, shall be reduced by an amount
determined as follows:
(1) For the first separation from employment under disqualifying
conditions, the maximum benefit amount of the individual's
current claim is equal to the result of:
(A) the maximum benefit amount of the individual's current
claim, as initially determined; multiplied by
(B) seventy-five percent (75%);
rounded (if not already a multiple of one dollar ($1)) to the next
higher dollar.
(2) For the second separation from employment under
disqualifying conditions, the maximum benefit amount of the
individual's current claim is equal to the result of:
(A) the maximum benefit amount of the individual's current
claim determined under subdivision (1); multiplied by
(B) eighty-five percent (85%);
rounded (if not already a multiple of one dollar ($1)) to the next
higher dollar.
(3) For the third and any subsequent separation from employment
under disqualifying conditions, the maximum benefit amount of
the individual's current claim is equal to the result of:
(A) the maximum benefit amount of the individual's current
claim determined under subdivision (2); multiplied by
(B) ninety percent (90%);
rounded (if not already a multiple of one dollar ($1)) to the next
higher dollar.
(c) The disqualifications provided in this section shall be subject to
the following modifications:
(1) An individual shall not be subject to disqualification because
of separation from the individual's employment if:
(A) the individual left to accept with another employer
previously secured permanent full-time work which offered
reasonable expectation of continued covered employment and
betterment of wages or working conditions and thereafter was
employed on said job;
(B) having been simultaneously employed by two (2)
employers, the individual leaves one (1) such employer
voluntarily without good cause in connection with the work
but remains in employment with the second employer with a
reasonable expectation of continued employment; or
(C) the individual left to accept recall made by a base period
employer.
(2) An individual whose unemployment is the result of medically substantiated physical disability and who is involuntarily unemployed after having made reasonable efforts to maintain the employment relationship shall not be subject to disqualification under this section for such separation.
(3) An individual who left work to enter the armed forces of the United States shall not be subject to disqualification under this section for such leaving of work.
(4) An individual whose employment is terminated under the compulsory retirement provision of a collective bargaining agreement to which the employer is a party, or under any other plan, system, or program, public or private, providing for compulsory retirement and who is otherwise eligible shall not be deemed to have left the individual's work voluntarily without good cause in connection with the work. However, if such individual subsequently becomes reemployed and thereafter voluntarily leaves work without good cause in connection with the work, the individual shall be deemed ineligible as outlined in this section.
(5) An otherwise eligible individual shall not be denied benefits for any week because the individual is in training approved under Section 236(a)(1) of the Trade Act of 1974, nor shall the individual be denied benefits by reason of leaving work to enter such training, provided the work left is not suitable employment, or because of the application to any week in training of provisions in this law (or any applicable federal unemployment compensation law), relating to availability for work, active search for work, or refusal to accept work. For purposes of this subdivision, the term "suitable employment" means with respect to an individual, work of a substantially equal or higher skill level than the individual's past adversely affected employment (as defined for purposes of the Trade Act of 1974), and wages for such work at not less than eighty percent (80%) of the individual's average weekly wage as determined for the purposes of the Trade Act of 1974.
(6) An individual is not subject to disqualification because of separation from the individual's employment if:
(A) the employment was outside the individual's labor market;
(B) the individual left to accept previously secured full-time work with an employer in the individual's labor market; and
(C) the individual actually became employed with the employer in the individual's labor market.
(7) An individual who, but for the voluntary separation to move to another labor market to join a spouse who had moved to that labor market, shall not be disqualified for that voluntary separation, if the individual is otherwise eligible for benefits. Benefits paid to the spouse whose eligibility is established under this subdivision shall not be charged against the employer from whom the spouse voluntarily separated.
(8) An individual shall not be subject to disqualification if the individual voluntarily left employment or was discharged due to circumstances directly caused by domestic or family violence (as defined in IC 31-9-2-42). An individual who may be entitled to benefits based on this modification may apply to the office of the attorney general under IC 5-26.5 to have an address designated by the office of the attorney general to serve as the individual's address for purposes of this article.
(9) An individual who is an affected employee (as defined in IC 22-4-44-1(1)) and is subject to the work sharing unemployment insurance program under IC 22-4-44 is not disqualified for participating in the work sharing unemployment insurance program.
As used in this subsection, "labor market" means the area surrounding an individual's permanent residence, outside which the individual cannot reasonably commute on a daily basis. In determining whether an individual can reasonably commute under this subdivision, the department shall consider the nature of the individual's job.
(d) "Discharge for just cause" as used in this section is defined to include but not be limited to:
(1) separation initiated by an employer for falsification of an employment application to obtain employment through subterfuge;
(2) knowing violation of a reasonable and uniformly enforced rule of an employer, including a rule regarding attendance;
(3) if an employer does not have a rule regarding attendance, an individual's unsatisfactory attendance, if the individual cannot show good cause for absences or tardiness;
(4) damaging the employer's property through willful negligence;
(5) refusing to obey instructions;
(6) reporting to work under the influence of alcohol or drugs or consuming alcohol or drugs on employer's premises during working hours;
(7) conduct endangering safety of self or coworkers;
(8) incarceration in jail following conviction of a misdemeanor or
felony by a court of competent jurisdiction; or
(9) any breach of duty in connection with work which is
reasonably owed an employer by an employee.
(e) To verify that domestic or family violence has occurred, an
individual who applies for benefits under subsection (c)(8) shall
provide one (1) of the following:
(1) A report of a law enforcement agency (as defined in
IC 10-13-3-10).
(2) A protection order issued under IC 34-26-5.
(3) A foreign protection order (as defined in IC 34-6-2-48.5).
(4) An affidavit from a domestic violence service provider
verifying services provided to the individual by the domestic
violence service provider.
Chapter 44. Work Sharing
Sec. 1. The following definitions apply throughout this chapter:
(1) "Affected employee" means an individual:
(A) who has been continuously on the payroll of an affected unit for at least three (3) months; and
(B) who works at least thirty (30) normal weekly work hours for the affected unit before a reduction under an approved work sharing plan.
(2) "Affected unit" means a specific plant, department, shift, or other definable unit of an employing unit:
(A) that has at least two (2) employees; and
(B) to which an approved work sharing plan applies.
(3) "Approved work sharing plan" means a plan that satisfies the purpose set forth in section 2 of this chapter and has the approval of the commissioner.
(4) "Commissioner" refers to the commissioner of workforce development appointed under IC 22-4.1-3-1.
(5) "Intermittent employment" means periodic intervals that are not continuous during which an individual works for an employing unit.
(6) "Normal weekly work hours" means the lesser of the following:
(A) The number of hours that an employee in the affected unit works when the unit is operating on its normal full-time basis.
(B) Forty (40) hours.
(7) "Part-time employment" means that an individual works in a position for an employing unit in which the number of scheduled work hours are fewer than the normal weekly work hours for the position.
(8) "Payments in lieu of contributions" has the meaning set forth in IC 22-4-2-32.
(9) "Seasonal employment" has the meaning set forth in IC 22-4-8-4.
(10) "Work sharing benefit" means a benefit payable to an affected employee for work performed under an approved work sharing plan, but does not include benefits that are otherwise payable under this article.
(11) "Work sharing employer" means an employing unit for which a work sharing plan has been approved.
(12) "Work sharing plan" means a plan of an employing unit under which:
(A) normal weekly work hours of the affected employees are reduced instead of a layoff of a part or all of the affected employees; and
(B) the affected employees share the work that remains after the reduction.
Sec. 2. The work sharing unemployment insurance program seeks to:
(1) preserve the jobs of employees and the work force of an employer during lowered economic activity by reduction in work hours or workdays rather than by a layoff of some employees while other employees continue their normal weekly work hours or workdays; and
(2) ameliorate the adverse effect of reduction in business activity by providing benefits for the part of the normal weekly work hours or workdays in which an employee does not work.
Sec. 3. (a) An employing unit that meets all the following requirements is eligible to participate in the work sharing unemployment insurance program established by this chapter:
(1) The employing unit is subject to this article for wages paid during a calendar year.
(2) The employing unit's:
(A) contribution rate for the calendar year; or
(B) payments in lieu of contributions;
are determined under IC 22-4-10, IC 22-4-11, IC 22-4-11.5, or IC 22-4-37-3.
(3) The employing unit is not delinquent as determined under IC 22-4-11-2.
(b) An employing unit that:
(1) meets the eligibility requirements under subsection (a); and
(2) wishes to participate in the work sharing unemployment insurance program established by this chapter;
shall submit to the commissioner a written work sharing plan.
Sec. 4. (a) Not later than fifteen (15) days after receipt of a work sharing plan, the commissioner shall give written approval or disapproval of the plan to the employing unit.
(b) The decision of the commissioner to disapprove a work sharing plan is final and may not be appealed.
(c) An employing unit may not submit a new work sharing plan less than fifteen (15) days after the date of the commissioner's disapproval of a work sharing plan under subsection (a).
Sec. 5. The commissioner shall approve a work sharing plan that meets the following requirements:
(1) The work sharing plan must apply to:
(A) at least ten percent (10%) of the employees in an affected unit; or
(B) at least two (2) employees in an affected unit.
(2) The normal weekly work hours of the affected employees in the affected unit shall be reduced by at least ten percent (10%), but the reduction may not exceed fifty percent (50%). The reduction in normal weekly work hours must be spread equally among the affected employees.
Sec. 6. (a) A work sharing plan must:
(1) identify the affected unit or units to which the work sharing plan applies;
(2) state:
(A) the reason or reasons resulting in the reduction in normal weekly work hours under section 5(2) of this chapter; and
(B) the expected duration of the reduction in normal weekly work hours under section 5(2) of this chapter;
(3) specify the effective date of the work sharing plan;
(4) identify each employee in the affected unit by:
(A) name;
(B) Social Security number;
(C) the employee's normal weekly work hours;
(D) the reductions in the number of hours and the amount
of wages proposed for the employee by the work sharing
plan; and
(E) any other information the commissioner requires;
(5) specify an expiration date that is not more than twelve (12)
months after the effective date of the work sharing plan;
(6) specify that the work sharing plan will not affect the fringe
benefits of any employee in the affected unit, including:
(A) health insurance for hospital, medical, dental, and
similar services;
(B) retirement benefits under benefit pension plans as
defined in the federal Employee Retirement Income
Security Act (29 U.S.C. 1001 et seq.);
(C) holiday and vacation pay;
(D) sick leave; and
(E) other similar benefits that are incidents of
employment;
(7) certify that:
(A) each affected employee:
(i) has been continuously on the payroll of the employing
unit for at least three (3) months; and
(ii) works at least thirty (30) normal weekly work hours
for the affected unit;
immediately before the date on which the employing unit
submits the work sharing plan;
(B) the total reduction in normal weekly work hours is in
place of layoffs that would have:
(i) affected at least the number of employees specified in
section 5(1) of this chapter; and
(ii) resulted in an equivalent reduction in work hours;
and
(C) the work sharing plan will not serve as a subsidy of:
(i) seasonal employment outside the employer's seasonal
period or periods as determined by the department
under IC 22-4-7-3;
(ii) temporary part-time employment; or
(iii) intermittent employment; and
(8) contain:
(A) the written approval of the collective bargaining agent
for each collective bargaining agreement that covers any
affected employee in the affected unit; or
(B) in the absence of a collective bargaining agreement, a
certification by the employing unit that the proposed work
sharing plan, or a summary of the work sharing plan, has
been made available to each affected employee in the
affected unit.
(b) A work sharing plan may include an option that allows an
affected employee to attend work related training or retraining
approved by the employing unit during the affected employee's
work hours. The commissioner shall approve the training offered
under this subsection.
Sec. 7. A work sharing employer shall agree to:
(1) submit reports that are necessary to administer the work
sharing plan; and
(2) allow the department to have access to all records
necessary to:
(A) verify the work sharing plan before its approval; and
(B) monitor and evaluate the application of the work
sharing plan after its approval.
Sec. 8. (a) An approved work sharing plan may be modified if:
(1) the modification meets the requirements for approval
under section 6 of this chapter; and
(2) the commissioner approves the modification.
(b) An employing unit may add an employee who works at least
thirty (30) normal weekly work hours to a work sharing plan when
the employee has been continuously on the payroll for at least three
(3) months.
(c) The commissioner shall not approve a modification of a work
sharing plan that changes the expiration date of the work sharing
plan.
(d) The decision of the commissioner to disapprove a
modification to a work sharing plan is final and may not be
appealed.
Sec. 9. (a) An affected employee is eligible under this chapter to
receive work sharing benefits for each week in which the
commissioner determines that the affected employee is:
(1) able to work; and
(2) available for more hours of work or full-time work for the
work sharing employer.
(b) An affected employee who otherwise is eligible may not be
denied work sharing benefits for lack of effort to secure work as set
forth in IC 22-4-14-3 or for failure to apply for available suitable
work as set forth in IC 22-4-15-2 from a person other than the
work sharing employer.
(c) An affected employee shall apply for benefits under
IC 22-4-17-1.
(d) An affected employee who otherwise is eligible for benefits
is:
(1) considered to be unemployed for the purpose of the work
sharing unemployment insurance program; and
(2) not subject to the requirements of IC 22-4-14-2.
Sec. 10. The weekly work sharing unemployment compensation
benefit due to an affected worker is determined in STEP FIVE of
the following formula:
STEP ONE: Determine the weekly benefit that would be due
to the affected employee under IC 22-4-12-4.
STEP TWO: Subtract the number of the employee's work
hours under the approved work sharing plan from the
number of the employee's normal weekly work hours.
STEP THREE: Divide the STEP TWO result by the number
of the employee's normal weekly work hours.
STEP FOUR: Multiply the number determined in STEP ONE
by the quotient determined in STEP THREE.
STEP FIVE: If the product determined under STEP FOUR is
not a multiple of one dollar ($1), round down to the nearest
lower multiple of one dollar ($1).
Sec. 11. (a) An affected employee may not receive more than
fifty-two (52) weeks of work sharing benefits during each benefit
year.
(b) The total amount of benefits payable under IC 22-4-12-4 and
work sharing benefits payable under this chapter may not exceed
the total payable for the benefit year under IC 22-4-12-4(a).
Sec. 12. During a week in which an affected employee who
otherwise is eligible for benefits does not work for the work
sharing employer:
(1) the individual shall be paid unemployment insurance
benefits in accordance with IC 22-4-12; and
(2) the week does not count as a week for which a work
sharing benefit is received.
Sec. 13. During a week in which an employee earns wages under
an approved work sharing plan and other wages, the work sharing
benefit shall be reduced by the same percentage that the combined
wages are of wages for normal weekly work hours if the other
wages:
(1) exceed the wages earned under the approved work sharing
plan; and
(2) do not exceed ninety percent (90%) of the wages that the
individual earns for normal weekly work hours.
This computation applies regardless of whether the employee
earned the other wages from the work sharing employer or
another employer.
Sec. 14. While an affected employee applies for or receives work
sharing benefits, the affected employee is not eligible for:
(1) extended benefits under IC 22-4-12-4; or
(2) supplemental federal unemployment compensation.
Sec. 15. Work sharing benefits shall be charged to the work
sharing employer's experience balance in the same manner as
unemployment insurance is charged under this article. Employers
liable for payments in lieu of contributions shall have work sharing
benefits attributed to service in their employ in the same manner
as unemployment insurance is attributed under this article.
Sec. 16. (a) The commissioner may revoke approval of an
approved work sharing plan for good cause, including:
(1) conduct or an occurrence that tends to defeat the intent
and effective operation of the approved work sharing plan;
(2) failure to comply with an assurance in the approved work
sharing plan;
(3) unreasonable revision of a productivity standard of the
affected unit; and
(4) violation of a criterion on which the commissioner based
the approval of the work sharing plan.
(b) An affected employee in an affected unit or the collective
bargaining agent representing an affected employee in an affected
unit may request that the commissioner take action to revoke the
approval of an approved work sharing plan.
(c) The commissioner shall give written notice of the revocation
to the employing unit specifying:
(1) the date the revocation is effective; and
(2) the reason or reasons for the revocation.
(d) The commissioner's decision to revoke approval of an
approved work sharing plan is final and may not be appealed.
(e) The department shall review the operation of all approved
work sharing plans at least once during the period that the work
sharing plan is in effect to ensure that the work sharing employer
is complying with the requirements of the work sharing plan
approved by the commissioner.
