Bill Summary – FastDemocracy

CERTIFICATION OF ENROLLMENT
                               HOUSE BILL 1898
                           Chapter 51, Laws of 2024
                               68th Legislature
                             2024 Regular Session
   UNEMPLOYMENT INSURANCE BENEFIT CHARGING—VARIOUS PROVISIONS
                      EFFECTIVE DATE: June 6, 2024
Passed by the House January 25, 2024                 CERTIFICATE
  Yeas 93 Nays 0
                                       I, Bernard Dean, Chief Clerk of the
                                       House of Representatives of the
            LAURIE JINKINS             State of Washington, do hereby
Speaker of the House of                certify that the attached is HOUSE
Representatives                        BILL 1898 as passed by the House of
                                       Representatives and the Senate on
                                       the dates hereon set forth.
Passed by the Senate February 27,
                                              BERNARD DEAN
  Yeas 49 Nays 0                                                   Chief Clerk
              DENNY HECK
President of the Senate
Approved March 13, 2024 1:49 PM                         FILED
                                                    March 14, 2024
                                                 Secretary of State
              JAY INSLEE                         State of Washington
Governor of the State of Washington
                                HOUSE BILL 1898
                   Passed Legislature - 2024 Regular Session
     State of Washington       68th Legislature       2024 Regular Session
     By Representatives Schmidt, Fosse, Connors, Berry, Bronoske, Abbarno,
     Ormsby, Volz, Leavitt, Low, Reed, Graham, Kloba, and Reeves; by
     request of Employment Security Department
     Prefiled 12/06/23. Read first time 01/08/24.    Referred to Committee
     on Labor & Workplace Standards.
      AN ACT Relating to unemployment insurance benefit charging;
  amending RCW 50.12.200; and reenacting and amending RCW 50.29.021.
  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:
     Sec. 1. RCW 50.29.021 and 2023 c 451 s 2 and 2023 c 240 s 3 are
 each reenacted and amended to read as follows:
     (1)(a) An experience rating account shall be established and
 maintained for each employer, except employers as described in RCW
 50.44.010, 50.44.030, and 50.50.030 who have properly elected to make
 payments in lieu of contributions, taxable local government employers
 as described in RCW 50.44.035, and those employers who are required
 to make payments in lieu of contributions, based on existing records
 of the employment security department.
     (b) Benefits paid to an eligible individual shall be charged to
 the experience rating accounts of each of such individual's employers
 during the individual's base year in the same ratio that the wages
 paid by each employer to the individual during the base year bear to
 the wages paid by all employers to that individual during that base
 year, except as otherwise provided in this section.
     (c) When the eligible individual's separating employer is a
 covered contribution paying base year employer, benefits paid to the
                                     p. 1                       HB 1898.SL
 eligible individual shall be charged to the experience rating account
 of only the individual's separating employer if:
     (i) The individual qualifies for benefits under RCW 50.20.050
 (1)(b)(i) or (2)(b)(i), as applicable, and became unemployed after
 having worked and earned wages in the bona fide work;
     (ii) The individual qualifies for benefits under RCW 50.20.050
 (1)(b) (v) through (x) or (2)(b) (v) through (x); or
     (iii) During a public health emergency, the claimant worked at a
 health care facility as defined in RCW 9A.50.010, was directly
 involved in the delivery of health services, and was terminated from
 work due to entering quarantine because of exposure to or contracting
 the disease that is the subject of the declaration of the public
 health emergency.
     (2) The legislature finds that certain benefit payments, in whole
 or in part, should not be charged to the experience rating accounts
 of employers except those employers described in RCW 50.44.010,
 50.44.030, and 50.50.030 who have properly elected to make payments
 in lieu of contributions, taxable local government employers
 described in RCW 50.44.035, and those employers who are required to
 make payments in lieu of contributions, as follows((:)) in (a)
 through (i) of this subsection. The department may not require an
 employer to submit a request in order for these benefits to not be
 charged.
     (a) Benefits paid to any individual later determined to be
 ineligible for those benefits or disqualified to receive those
 benefits shall not be charged to the experience rating account of any
 contribution paying employer, except ((as)):
     (i) As provided in subsection (4) of this section; or
     (ii) As provided in subsection (5) of this section.
     (b) Benefits paid to an individual filing under the provisions of
 chapter 50.06 RCW shall not be charged to the experience rating
 account of any contribution paying employer only if:
     (i) The individual files under RCW 50.06.020(1) after receiving
 crime victims' compensation for a disability resulting from a
 nonwork-related occurrence; or
     (ii) The individual files under RCW 50.06.020(2).
     (c) Benefits paid which represent the state's share of benefits
 payable as extended benefits defined under RCW 50.22.010(6) shall not
 be charged to the experience rating account of any contribution
 paying employer.
                                     p. 2                       HB 1898.SL
     (d) In the case of individuals who requalify for benefits under
 RCW 50.20.050 or 50.20.060, benefits based on wage credits earned
 prior to the disqualifying separation shall not be charged to the
 experience rating account of the contribution paying employer from
 whom that separation took place.
     (e) ((Benefits paid to an individual who qualifies for benefits
 under)) If the department determines an individual left the employ of
 the separating employer under the circumstances described in RCW
 50.20.050(1)(b) (iv) or (xi), (2)(b)(ii), only for separation that
 was necessary because the care for a child or a vulnerable adult in
 the claimant's care is inaccessible, (iv), (xi), (xii), or (xiii), or
 (3), as applicable, benefits paid to that individual shall not be
 charged to the experience rating account of any base year
 contribution paying employer.
     (f) ((Benefits paid that exceed the benefits that would have been
 paid if the weekly benefit amount for the claim had been determined
 as one percent of the total wages paid in the individual's base year
 shall not be charged to the experience rating account of any
 contribution paying employer. This subsection (2)(f) does not apply
 to the calculation of contribution rates under RCW 50.29.025 for rate
 year 2010 and thereafter.
     (g))) Upon approval of an individual's training benefits plan
 submitted in accordance with RCW 50.22.155(2), an individual is
 considered enrolled in training, and regular benefits beginning with
 the week of approval shall not be charged to the experience rating
 account of any contribution paying employer.
     (((h))) (g) Training benefits paid to an individual under RCW
 50.22.155 shall not be charged to the experience rating account of
 any contribution paying employer.
     (((i))) (h)(i) Benefits paid during the one week waiting period
 when the one week waiting period is fully paid or fully reimbursed by
 the federal government shall not be charged to the experience rating
 account of any contribution paying employer.
     (ii) In the event the one week waiting period is partially paid
 or partially reimbursed by the federal government, the department
 may, by rule, elect to not charge, in full or in part, benefits paid
 during the one week waiting period to the experience rating account
 of any contribution paying employer.
     (((j))) (i) Benefits paid for all weeks starting with the week
 ending March 28, 2020, and ending with the week ending May 30, 2020,
                                     p. 3                       HB 1898.SL
 shall not be charged to the experience rating account of any
 contribution paying employer.
     (3)(a) A contribution paying base year employer, except employers
 as provided in subsection (5) of this section, not otherwise eligible
 for relief of charges for benefits under this section, may receive
 such relief if the benefit charges result from payment to an
 individual who:
     (i) Last left the employ of such employer voluntarily for reasons
 not attributable to the employer. In addition to other circumstances
 identified by the department by rule, an individual who leaves the
 employ of such employer under the circumstances described in RCW
 50.20.050(1)(b) (iv) or (xi), (2)(b) (iv), (xi), or (xii), or (3)
 must be deemed to have left their employ for reasons not attributable
 to the employer;
     (ii) Was discharged for misconduct or gross misconduct connected
 with his or her work not a result of inability to meet the minimum
 job requirements;
     (iii) Is unemployed as a result of closure or severe curtailment
 of operation at the employer's plant, building, worksite, or other
 facility. This closure must be for reasons directly attributable to a
 catastrophic occurrence such as fire, flood, or other natural
 disaster, or to the presence of any dangerous, contagious, or
 infectious disease that is the subject of a public health emergency
 at the employer's plant, building, worksite, or other facility;
     (iv) Continues to be employed by the employer seeking relief and:
 (A) The employer furnished part-time work to the individual during
 the base year; (B) the individual has become eligible for benefits
 because of loss of employment with one or more other employers; and
 (C) the employer has continued to furnish or make available part-time
 work to the individual in substantially the same amount as during the
 individual's base year. This subsection does not apply to shared work
 employers under chapter 50.60 RCW;
     (v) Was hired to replace an employee who is a member of the
 military reserves or National Guard and was called to federal active
 military service by the president of the United States and is
 subsequently laid off when that employee is reemployed by their
 employer upon release from active duty within the time provided for
 reemployment in RCW 73.16.035;
     (vi) Worked for an employer for 20 weeks or less, and was laid
 off at the end of temporary employment when that employee temporarily
                                     p. 4                       HB 1898.SL
 replaced a permanent employee receiving family or medical leave
 benefits under Title 50A RCW, and the layoff is due to the return of
 that permanent employee. This subsection (3)(a)(vi) applies to claims
 with an effective date on or after January 1, 2020; or
     (vii) Was discharged because the individual was unable to satisfy
 a job prerequisite required by law or administrative rule.
     (b) The employer requesting relief of charges under this
 subsection must request relief in writing within 30 days following
 mailing to the last known address of the notification of the valid
 initial determination of such claim, stating the date and reason for
 the separation or the circumstances of continued employment. The
 department may waive this time limitation for good cause. The
 commissioner, upon investigation of the request, shall determine
 whether relief should be granted.
     (4) When a benefit claim becomes invalid due to an amendment or
 adjustment of a report where the employer failed to report or
 inaccurately reported hours worked or remuneration paid, or both, all
 benefits paid will be charged to the experience rating account of the
 contribution paying employer or employers that originally filed the
 incomplete or inaccurate report or reports. An employer who
 reimburses the trust fund for benefits paid to workers and who fails
 to report or inaccurately reported hours worked or remuneration paid,
 or both, shall reimburse the trust fund for all benefits paid that
 are based on the originally filed incomplete or inaccurate report or
 reports.
     (5) An employer's experience rating account may not be relieved
 of charges for a benefit payment and an employer who reimburses the
 trust fund for benefit payments may not be credited for a benefit
 payment if a benefit payment was made because the employer or
 employer's agent failed to respond timely or adequately to a written
 request of the department for information relating to the claim or
 claims without establishing good cause for the failure and the
 employer or employer's agent has a pattern of such failures. The
 commissioner has the authority to determine whether the employer has
 good cause under this subsection.
     (a) For the purposes of this subsection, "adequately" means
 providing accurate information of sufficient quantity and quality
 that would allow a reasonable person to determine ((eligibility for))
 whether an individual is eligible for or qualified to receive
 benefits.
                                     p. 5                       HB 1898.SL
     (b)(i) For the purposes of this subsection, "pattern" means a
 benefit payment was made because the employer or employer's agent
 failed to respond timely or adequately to a written request of the
 department for information relating to a claim or claims without
 establishing good cause for the failure, if the greater of the
 following calculations for an employer is met:
     (A) At least three times in the previous two years; or
     (B) Twenty percent of the total current claims against the
 employer.
     (ii) If an employer's agent is utilized, a pattern is established
 based on each individual client employer that the employer's agent
 represents.
     Sec. 2.   RCW 50.12.200 and 2020 c 86 s 1 are each amended to read
 as follows:
     (1) The commissioner shall appoint a state advisory council
 composed of not more than nine ((men and women)) persons, of which
 three shall be representatives of employers, three shall be
 representatives of employees, and three shall be representatives of
 the general public. Such council shall aid the commissioner in
 formulating   policies  and   discussing  problems   related  to  the
 administration of this title and of assuring impartiality and freedom
 from political influence in the solution of such problems. The
 council shall serve without compensation. The commissioner may also
 appoint committees, and industrial or other special councils, to
 perform appropriate services. Advisory councilmembers shall be
 reimbursed for travel expenses incurred in accordance with RCW
 43.03.050 and 43.03.060 as now existing or hereafter amended.
     (2) Beginning in 2021 and ending in 2030, the commissioner shall
 annually report to the state advisory council the amount of benefits
 that were not charged to employers as a direct consequence of RCW
 50.29.021(3)(a)(((viii))) (vii).
         Passed by the House January 25, 2024.
         Passed by the Senate February 27, 2024.
         Approved by the Governor March 13, 2024.
         Filed in Office of Secretary of State March 14, 2024.
                                   --- END ---
                                      p. 6                       HB 1898.SL
Statutes affected: 
Original Bill: 50.12.200
Bill as Passed Legislature: 50.12.200
Session Law: 50.12.200