SOURCE: IC 22-4-15-1; (11)IN1506.1.1. -->
SECTION 1. IC 22-4-15-1, AS AMENDED BY P.L.175-2009,
SECTION 23, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2011]: Sec. 1. (a) With respect to benefit periods established
on and after July 6, 1980, an individual who has voluntarily left the
individual's most recent employment without good cause in connection
with the work or who was discharged from the individual's most recent
employment for just cause is ineligible for waiting period or benefit
rights for the week in which the disqualifying separation occurred and
until the individual has earned remuneration in employment equal to
or exceeding the weekly benefit amount of the individual's claim in
each of eight (8) weeks. If the qualification amount has not been earned
at the expiration of an individual's benefit period, the unearned amount
shall be carried forward to an extended benefit period or to the benefit
period of a subsequent claim.
(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.
SOURCE: IC 22-4-44; (11)IN1506.1.2. -->
SECTION 2. IC 22-4-44 IS ADDED TO THE INDIANA CODE AS
A
NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE JULY
1, 2011]:
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" means 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) "Payments in lieu of contributions" has the meaning set
forth in IC 22-4-2-32.
(8) "Seasonal employment" has the meaning set forth in
IC 22-4-8-4.
(9) "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.
(10) "Work sharing employer" means an employing unit for
which a work sharing plan has been approved.
(11) "Work sharing plan" means a plan of an employing unit
under which:
(A) normal weekly work hours of the affected employees
are reduced in lieu 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 of 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 contribution rate for the calendar
year or 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) Within 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 submit a new work sharing plan not
less than fifteen (15) days after disapproval of a work sharing plan.
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 twenty (20) 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%)
unless waived by the commissioner. The reduction in normal
weekly work hours must be spread equally among the affected
employees.
Sec. 6. A work sharing plan must:
(1) identify the affected unit;
(2) specify the effective date of the work sharing plan;
(3) 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;
(4) specify an expiration date that is not more than twelve (12)
months after the effective date of the work sharing plan;
(5) specify the effect that the work sharing plan will have on
the fringe benefits of each 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;
(6) certify that:
(A) each affected employee:
(i) has been continuously on the payroll of the employing
unit for 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; or
(ii) intermittent employment; and
(7) 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.
Sec. 7. If a work sharing plan serves the work sharing employer
as a transitional step to permanent staff reduction, the work
sharing plan must contain a reemployment assistance plan
developed by the work sharing employer and the commissioner for
each affected employee.
Sec. 8. 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. 9. (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 three (3)
months.
(c) An approved modification of a work sharing plan may not
change its expiration date.
(d) The decision of the commissioner to disapprove a
modification to a work sharing plan is final and may not be
appealed.
Sec. 10. (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. 11. 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 work hours.
STEP THREE: Divide the STEP TWO result by the number
of the employee's normal 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. 12. (a) An affected employee is eligible to receive not 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. 13. 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. 14. 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. 15. 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. 16. 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. 17. (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 assure that the work sharing employer
is complying with the requirements of the work sharing plan
approved by the commissioner.