SCS/HB 332 - This act makes various modifications to employment security provisions.
The act modifies the definition of wages for purposes of employment security law to include termination pay and severance pay. The total amount of wages derived from severance pay, if paid to an insured in a lump sum, shall be pro-rated on a weekly basis at the rate of pay received by the insured at the time of termination for the purposes of determining unemployment eligibility.
This provision is identical to a provision in HB 217 (2019), SB 869 (2018), HB 1409 (2018), SCS/SB 189 (2017), HB 288 (2017), HB 150 (2015), which was vetoed by the Governor, HB 673 (2015), and SB 220 (2015).
Under current law, charges shall not be made against the unemployment benefits account of an employer with respect to benefits paid to any individual unless that individual was employed for longer than a probationary period of 28 days. This act extends that probationary period to 90 days.
This provision is identical to a provision in the perfected HB 278 (2019) and substantially similar to SB 157 (2019). This provision additionally has a delayed effective date of January 1, 2020.
The act also provides that any employer required to make contributions under the unemployment compensation laws shall pay an annual unemployment automation adjustment equal to .015% of its total taxable wages for the twelve-month period ending the preceding June 30th. The Division of Employment Security is permitted to lower this rate under certain circumstances.
This provision is identical to HB 375 (2019) and substantially similar to SB 161 (2019). This provision additionally has a delayed effective date of January 1, 2020.