SB 844 - This act modifies the shared work unemployment compensation program.
Under current law, "fringe benefit" is defined as a retirement benefit received under a pension plan. The act specifies that it must be a defined benefit pension plan as defined in the Internal Revenue Code.
Under current law, the Division of Employment Security may approve a shared work plan if it reduces the normal weekly hours of work for an employee by not less than 20% and not more than 40%. This act changes those thresholds to not less than 10% and not more than 60%.
Under current law, the Division may approve a plan if it describes the manner in which the employer treats fringe benefits. Under the act, the employer is required to certify that fringe benefits shall continue to be provided as if weekly hours of work had not been reduced.
The plans must also contain the following provisions:
• An estimate of the number of employees who would be laid off if the employer would not participate.
• A description of the manner in which employees will be notified of the employer's participation including a reason why advance notice is not feasible.
• An employer certification that participation in the plan and implementation complies with federal and state law.
• Any other provision that the United States Secretary of Labor determines to be appropriate.
Under current law, plans that subsidize employers who have 50% of its employees who have normal working hours of 32 hours a week or less are not allowed. This provision is repealed.
Under current law, participating employees are required to be able to work, available for work and work all available hours. Under the act such a person is required to be able and available for his or her normal hours of work.
Under current law, the employee's normal weekly hours may be reduced by between 20% and 40%. Under the act, such hours may be reduced between 10% and 60%.
Employees shall not be denied shared work benefits for reasons relating to job retraining approved by the director, employer-sponsored training, or training funded under federal law.
Under current law, individuals are ineligible for shared work benefits for any week in which they perform paid work in excess of the reduced hours established under the plan. This act repeals this provision.
The act repeals a provision requiring that benefits paid under the plan which are chargeable to the participating employer or any other base period employer of a participating employee shall be charged to the account of the participating employer.