Bill Summary – FastDemocracy

Enrolled Copy                                                                            H.B. 170
                      UNEMPLOYMENT INSURANCE AMENDMENTS
                                           2024 GENERAL SESSION
                                                STATE OF UTAH
                                          Chief Sponsor: Trevor Lee Senate Sponsor: Todd D. Weiler
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  LONG TITLE
  General Description:
      This bill modifies the Employment Security Act.
  Highlighted Provisions:
      This bill:
      ▸ identifies certain conduct that may disqualify an individual from receiving
  unemployment benefits;
      ▸ requires the Unemployment Insurance Division within the Department of Workforce
  Services to make rules governing certain disqualifications for unemployment benefits;
      ▸ requires the Department of Workforce Services to develop and maintain a website for
  employers to access information and report possible fraud in relation to unemployment
  insurance; and
      ▸ makes technical changes.
  Money Appropriated in this Bill:
      None
  Other Special Clauses:
      None
  Utah Code Sections Affected:
  AMENDS:
      35A-4-405, as last amended by Laws of Utah 2013, Chapter 315
  ENACTS:
      35A-4-509, as Utah Code Annotated 1953
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  Be it enacted by the Legislature of the state of Utah:
        Section 1. Section 35A-4-405 is amended to read:
     H.B. 170                                                                               Enrolled Copy
         35A-4-405 . Ineligibility for benefits.
        Except as otherwise provided in Subsection (5), an individual is ineligible for
   benefits or for purposes of establishing a waiting period:
   (1) (a) For the week in which the claimant left work voluntarily without good cause, if
       so found by the division, and for each week thereafter until the claimant has
       performed services in bona fide, covered employment and earned wages for those
       services equal to at least six times the claimant's weekly benefit amount.
       (b) A claimant may not be denied eligibility for benefits if the claimant leaves work
            under circumstances where it would be contrary to equity and good conscience to
            impose a disqualification.
       (c) Using available information from employers and the claimant, the division shall
            consider for the purposes of this chapter the reasonableness of the claimant's actions,
            and the extent to which the actions evidence a genuine continuing attachment to the
            labor market in reaching a determination of whether the ineligibility of a claimant is
            contrary to equity and good conscience.
       (d) Except as provided in Subsection (1)(e), a claimant who has left work voluntarily to
            accompany or follow the claimant's spouse to a new locality does so without good
            cause for purposes of this Subsection (1).
       (e) A claimant who has left work voluntarily to accompany or follow the claimant's
            spouse to a new locality does so with good cause for purposes of this Subsection (1)
            and is eligible to receive benefits if:
            (i) the claimant's spouse is a member of the United States armed forces and the
                claimant's spouse has been relocated by a full-time assignment scheduled to last at
                least 180 days while on:
                (A) active duty as defined in 10 U.S.C. Sec. 101(d)(1); or
                (B) active guard or reserve duty as defined in 10 U.S.C. Sec. 101(d)(6);
            (ii) it is impractical as determined by the division for the claimant to commute to the
                previous work from the new locality;
            (iii) the claimant left work voluntarily no earlier than 15 days before the scheduled
                start date of the spouse's active-duty assignment; and
            (iv) the claimant otherwise meets and follows the eligibility and reporting
                requirements of this chapter, including registering for work with the division or, if
                the claimant has relocated to another state, the equivalent agency of that state.
   (2) (a) For the week in which the claimant was discharged for just cause or for an act or
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     Enrolled Copy                                                                                     H.B. 170
      omission in connection with employment, not constituting a crime, which is
      deliberate, willful, or wanton and adverse to the employer's rightful interest, if so
      found by the division, and thereafter until the claimant has earned an amount equal to
      at least six times the claimant's weekly benefit amount in bona fide covered
      employment.
      (b) For the week in which the claimant was discharged for dishonesty constituting a
          crime or any felony or class A misdemeanor in connection with the claimant's work
          as shown by the facts, together with the claimant's admission, or as shown by the
          claimant's conviction of that crime in a court of competent jurisdiction and for the 51
          next following weeks.
      (c) Wage credits shall be deleted from the claimant's base period, and are not available
          for this or any subsequent claim for benefits.
  (3) (a) (i) If the division finds that the claimant has failed without good cause to
      properly[ ] :
                 (A) apply for available suitable work[, ] ;
                 (B) appear for a scheduled interview for suitable work;
                 (C) [to ]accept a referral to suitable work offered by the employment office[,] ; or
                 (D) [ to ]accept suitable work offered by an employer or the employment office.
          (ii) For purposes of Subsection (3)(a)(i)(D), the division shall consider a claimant's
                 failure to accept an offer of suitable work from an employer or the employment
                 office within three business days after the day on which the offer is sent as a
                 failure to accept suitable work.
          [(ii)] (iii) The ineligibility continues until the claimant has performed services in bona
                 fide covered employment and earned wages for the services in an amount equal to
                 at least six times the claimant's weekly benefit amount.
      (b) (i) A claimant may not be denied eligibility for benefits for failure to apply,
          accept referral, or accept available suitable work under circumstances where it
          would be contrary to equity and good conscience to impose a disqualification.
          (ii) The division shall consider the purposes of this chapter, the reasonableness of the
                 claimant's actions, and the extent to which the actions evidence a genuine
                 continuing attachment to the labor market in reaching a determination of whether
                 the ineligibility of a claimant is contrary to equity and good conscience.
      (c) In determining whether work is suitable for an individual, the division shall consider
          the:
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      H.B. 170                                                                                  Enrolled Copy
            (i) degree of risk involved to the individual's health, safety, and morals;
            (ii) individual's physical fitness and prior training;
            (iii) individual's prior earnings and experience;
            (iv) individual's length of unemployment;
            (v) prospects for securing local work in the individual's customary occupation;
            (vi) wages for similar work in the locality; and
            (vii) distance of the available work from the individual's residence.
       (d) Prior earnings shall be considered on the basis of all four quarters used in
            establishing eligibility and not just the earnings from the most recent employer. The
            division shall be more prone to find work as suitable the longer the claimant has been
            unemployed and the less likely the prospects are to secure local work in his
            customary occupation.
       (e) Notwithstanding any other provision of this chapter, no work is suitable, and benefits
            may not be denied under this chapter to any otherwise eligible individual for refusing
            to accept new work under any of the following conditions:
            (i) if the position offered is vacant due directly to a strike, lockout, or other labor
                dispute;
            (ii) if the wages, hours, or other conditions of the work offered are substantially less
                favorable to the individual than those prevailing for similar work in the locality; or
            (iii) if as a condition of being employed the individual would be required to join a
                company union or to resign from or refrain from joining any bona fide labor
                organization.
       (f) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
            division shall make rules governing ineligibility for benefits under this Subsection (3).
   (4) For any week in which the division finds that the claimant's unemployment is due to a
       stoppage of work that exists because of a strike involving the claimant's grade, class, or
       group of workers at the factory or establishment at which the claimant is or was last
       employed.
       (a) If the division finds that a strike has been fomented by a worker of any employer,
            none of the workers of the grade, class, or group of workers of the individual who is
            found to be a party to the plan, or agreement to foment a strike, shall be eligible for
            benefits. However, if the division finds that the strike is caused by the failure or
            refusal of any employer to conform to any law of the state or of the United States
            pertaining to hours, wages, or other conditions of work, the strike may not render the
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      Enrolled Copy                                                                                  H.B. 170
          workers ineligible for benefits.
      (b) If the division finds that the employer, the employer's agent or representative has
          conspired, planned, or agreed with any of the employer's workers, their agents or
          representatives to foment a strike, that strike may not render the workers ineligible
          for benefits.
      (c) A worker may receive benefits if, subsequent to the worker's unemployment because
          of a strike as defined in this Subsection (4), the worker has obtained employment and
          has been paid wages of not less than the amount specified in Subsection 35A-4-401
          (4) and has worked as specified in Subsection 35A-4-403(1)(f). During the existence
          of the stoppage of work due to this strike the wages of the worker used for the
          determination of his benefit rights may not include any wages the worker earned
          from the employer involved in the strike.
  (5) (a) For each week a claimant obtains a benefit under this chapter by willfully making
      a false statement or representation or by knowingly failing to report a material fact,
      and a penalty of no more than 49 additional weeks as follows:
          (i) 13 weeks for the first week the false statement or representation was made or fact
              withheld to receive a benefit; and
          (ii) six weeks for each additional week the false statement or representation was
              made or fact withheld to receive a benefit.
      (b) The additional penalty weeks shall begin on the Sunday of the week the
          determination finding the claimant in violation of this Subsection (5) is issued.
      (c) (i) Each claimant found in violation of this Subsection (5) shall repay to the
          division the overpayment and, as a civil penalty for fraud, an amount equal to the
          overpayment.
          (ii) The overpayment is the amount of benefits the claimant received by direct reason
              of fraud.
          (iii) Subject to the requirements of Subsection 35A-4-506(7), the civil penalty for
              fraud amount shall be treated as any other penalty under this chapter.
          (iv) The repayment of an overpayment and a civil penalty for fraud shall be
              collectible by civil action or warrant in the manner provided in Subsections
              35A-4-305(3) and (5).
      (d) A claimant is ineligible for future benefits or waiting week credit, and any wage
          credits earned by the claimant shall be unavailable for purposes of paying benefits, if
          any amount owed under this Subsection (5) remains unpaid.
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      H.B. 170                                                                                   Enrolled Copy
       (e) Determinations under this Subsection (5) shall be appealable in the manner provided
            by this chapter for appeals from other benefit determinations.
       (f) If the fraud determination is based solely on unreported or underreported work or
            earnings, or both, and the claimant would have been eligible for benefits if the work
            or earnings, or both, had been correctly reported, the individual does not lose
            eligibility for that week because of the misreporting but is liable for the overpayment
            and subject to the penalties in Subsection (5)(c) and the disqualification periods for
            future weeks in Subsection (5)(a).
   (6) For any week with respect to which or a part of which the claimant has received or is
       seeking unemployment benefits under an unemployment compensation law of another
       state or the United States. If the appropriate agency of the other state or of the United
       States finally determines that the claimant is not entitled to those unemployment
       benefits, this disqualification does not apply.
   (7) (a) For any week with respect to which the claimant is receiving, has received, or is
       entitled to receive remuneration in the form of:
            (i) wages in lieu of notice, or a dismissal or separation payment; or
            (ii) accrued vacation or terminal leave payment.
       (b) If the remuneration is less than the benefits that would otherwise be due, the claimant
            is entitled to receive for that week, if otherwise eligible, benefits reduced as provided
            in Subsection 35A-4-401(3).
   (8) (a) For any week in which the individual's benefits are based on service for an
       educational institution in an instructional, research, or principal administrative
       capacity and that begins during the period between two successive academic years, or
       during a similar period between two regular terms, whether or not successive, or
       during a period of paid sabbatical leave provided for in the individual's contract if the
       individual performs services in the first of those academic years or terms and if there
       is a contract or reasonable assurance that the individual will perform services in that
       capacity for an educational institution in the second of the academic years or terms.
       (b) (i) For any week in which the individual's benefits are based on service in any
            other capacity for an educational institution, and that week begins during a period
            between two successive academic years or terms if the individual performs those
            services in the first of the academic years or terms and there is a reasonable
            assurance that the individual will perform the services in the second of the
            academic years or terms.
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      Enrolled Copy                                                                                    H.B. 170
          (ii) If compensation is denied to any individual under this Subsection (8) and the
              individual was not offered an opportunity to perform the services for the
              educational institution for the second of the academic years or terms, the
              individual shall be entitled to a retroactive payment of compensation for each
              week for which the individual filed a timely claim for compensation and for which
              compensation was denied solely by reason of this Subsection (8).
      (c) With respect to any services described in Subsection (8)(a) or (b), compensation
          payable on the basis of those services shall be denied to an individual for any week
          that commences during an established and customary vacation period or holiday
          recess if the individual performs the services in the period immediately before the
          vacation period or holiday recess, and there is a reasonable assurance that the
          individual will perform the services in the period immediately following the vacation
          period or holiday recess.
      (d) (i) With respect to services described in Subsection (8)(a) or (b), compensation
          payable on the basis of those services as provided in Subsection (8)(a), (b), or (c)
          shall be denied to an individual who performed those services in an educational
          institution while in