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S.F. No. 1549 - Unemployment Insurance Advisory Council Recommendations
Author: Senator Rich Draheim
Prepared By: Carlon D. Fontaine, Senate Counsel (651/296-4395)
Date: March 8, 2017


Article 1 – Unemployment Insurance Advisory Council Policy

Sections 1 and 2 [Employee leasing companies] eliminate a potential tax loophole by allowing the Department of Employment and Economic Development (DEED) to make unemployment insurance tax liability determinations without regard to an exception provided for employee leasing companies.  

Sections 2 and 3 [Suspension from employment] allow an indefinite suspension to be considered as a discharge from the time the suspension commences. 

Section 5 [Determination] allows DEED to recover UI benefits if a worker’s compensation settlement occurs within 48 months of the establishment of the individual’s UI benefit account. This change doubles the current time limit for recovery. 

Article 2 – Unemployment Insurance Advisory Council Housekeeping

Section 1 [Noncovered employment] adds religious schools to the definition of noncovered employment.

Section 2 [Staffing service] clarifies that the term “staffing service” only refers to an employer that furnishes workers to “support or supplement the workforce of the business that is a client of the staffing service.”

Section 3 [Assessments, fees, and surcharges; treatment] eliminates unnecessary language that states that assessments, fees, and surcharges are treated as taxes for UI purposes.

Section 4 [Limitations on applications and benefit accounts] addresses a technical issue preventing workers from collecting unemployment benefits when those benefits have been delayed. 

Section 5 [Eligibility conditions] clarifies the standard to be applied for determining “good cause” for purposes of participation in mandatory reemployment assistance services. 

Section 6 [Leave of absence] adds a definition of “leave of absence.”

Section 7 [Actively seeking suitable employment defined] clarifies that all work search activities must focus on suitable jobs, for purposes of determining if an individual is actively seeking employment.  

Section 8 [Request for reconsideration] clarifies the standard to be applied for determining “good cause” for purposes of submitting evidence for a reconsideration hearing.

Article 3 – Unemployment Insurance Advisory Council Technical

Section 1 [Standard of proof] deletes unnecessary language from the standard of proof for unemployment law issues.

Section 2 [Employment] deletes duplicative langue from the definition of “employment.”

Section 3 [State’s average annual and average weekly wage] clarifies how DEED calculates the average annual wage and average weekly wage. 

Section 4 [Wages paid] deletes the word “considered” as unnecessary.

Section 5 [Employer registration] clarifies language on the applicability of employer registration requirements.  

Section 6 [Payments] removes unnecessary and erroneous language.

Section 7 [Benefit account requirements] deletes unnecessary language about benefit account requirements.

Section 8 [Right of appeal] deletes unnecessary language about appeal proceedings.

Section 9 [Receipt of back pay] deletes the word “considered” as unnecessary.

Section 10 [School employees; between terms denial] clarifies language regarding ineligibility of school employees between academic terms.

Section 11 [Aliens] clarifies language regarding unemployment eligibility for individuals who are not authorized to work in the United States.  

Section 12 [Good cause defined] deletes unnecessary language.  

Section 13 [Quit] clarifies language regarding individuals who quit their jobs.

Section 14 [Quit defined] clarifies the definition of “quit” to provide that an employee notice of intent to quit in the future does not count as a quit at the time it is given.

Section 15 [Combined wage arrangement for work in multiple states] deletes unnecessary language and provides clarifying language concerning combined wage claims.

Section 16 [Overpayment because of misrepresentation] replaces the word “fraud” with “misrepresentation.”

Section 17 [Interest] replaces the word “fraud” with “misrepresentation.”

Section 18 [Remedies] deletes the word “considered” as unnecessary and adds clarifying language.

Section 19 [Fraud; criminal penalty] clarifies the definition of “fraud” and penalties for “fraud” and “misrepresentation.”

Section 20 [Employer misrepresentation and misreporting; administrative penalties] clarifies the term “employer misconduct” by rephrasing it as “employer misrepresentation” and adds clarifying language.

Section 21 [Establishment] clarifies that federal funds may be deposited in the unemployment insurance trust fund.

Section 22 [Reimbursements] replaces the word “reciprocal” with the term “combined wage.”

Sections 23 and 24 [Revisor’s instructions] provide direction to the Revisor regarding word changes.

Section 25 [Repealer] repeals unnecessary language regarding federal conformity.


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