Bill Summary – FastDemocracy

LEGISLATIVE GENERAL COUNSEL                                           H.B. 283
       6 Approved for Filing: G. Harb 6                           3rd Sub. (Cherry)
          6 01-31-23 4:35 PM 6
                         Representative Trevor Lee proposes the following substitute bill:
                     UNEMPLOYMENT INSURANCE AMENDMENTS
                                       2023 GENERAL SESSION
                                            STATE OF UTAH
                                    Chief Sponsor: Trevor Lee
                                  Senate Sponsor: Daniel McCay
 6
 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 to make rules governing ineligibility
 for unemployment benefits as a result of a failure to accept suitable work;
        < requires the Department of Workforce Services to 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:                                                              3rd Sub. H.B. 283
        None
 Other Special Clauses:
        None
 Utah Code Sections Affected:
 AMENDS:
     *HB0283S03*
       3rd Sub. (Cherry) H.B. 283                                                01-31-23 4:35 PM
         35A-4-405, as last amended by Laws of Utah 2013, Chapter 315
 ENACTS:
         35A-4-509, Utah Code Annotated 1953
29
 Be it enacted by the Legislature of the state of Utah:
         Section 1. Section 35A-4-405 is amended to read:
         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
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        (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
 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 apply for available suitable work, to appear for a scheduled interview for suitable
 work, to accept a referral to suitable work offered by the employment office, or to accept
 suitable work offered by an employer or the employment office.
        (ii) For purposes of Subsection (3)(a)(i), the division shall consider a claimant's failure
 to accept an employer's offer of suitable work within two 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
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        3rd Sub. (Cherry) H.B. 283                                                  01-31-23 4:35 PM
 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:
        (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
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        01-31-23 4:32 PM                                                 3rd Sub. (Cherry) H.B. 283
 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 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.
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        (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.
        (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
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        01-31-23 4:32 PM                                                3rd Sub. (Cherry) H.B. 283
 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.
        (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 the
 employ of an educational service agency in accordance with the Federal Unemployment Tax
 Act, 26 U.S.C. Sec. 3304(a)(6)(A)(iv).
        (ii) For purposes of this Subsection (8)(d), "educational service agency" means a
 governmental agency or entity established and operated exclusively for the purpose of
 providing the services described in Subsection (8)(a) or (b) to an educational institution.
        (e) 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:
        (i) to or on behalf of an educational institution in accordance with the Federal
 Unemployment Tax Act, 26 U.S.C. Sec. 3304(a)(6)(A)(v); and
        (ii) while employed by a governmental entity, Indian tribe, or nonprofit organization, to
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        3rd Sub. (Cherry) H.B. 283                                                   01-31-23 4:35 PM
 which the Federal Unemployment Tax Act, 26 U.S.C. Sec. 3309(a)(1) applies.
         (f) Benefits based on service in employment, define