73R8406 JMM-F By Moffat H.B. No. 2275 Substitute the following for H.B. No. 2275: By Moffat C.S.H.B. No. 2275 A BILL TO BE ENTITLED 1-1 AN ACT 1-2 relating to the eligibility for benefits under the Texas 1-3 Unemployment Compensation Act for certain employees of temporary 1-4 help firms. 1-5 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-6 SECTION 1. Section 5, Texas Unemployment Compensation Act 1-7 (Article 5221b-3, Vernon's Texas Civil Statutes), is amended to 1-8 read as follows: 1-9 Sec. 5. Disqualification for benefits. An individual shall 1-10 be disqualified for benefits: 1-11 (a) If the Commission finds that he has left his last 1-12 work voluntarily without good cause connected with his work. The 1-13 disqualification continues until the claimant has returned to 1-14 employment and either worked for six weeks or earned wages equal to 1-15 six times his weekly benefit amount, unless the individual left 1-16 work to move with a spouse from the area in which the individual 1-17 worked. In that case, the disqualification shall be for not less 1-18 than six (6) nor more than twenty-five (25) benefit periods 1-19 following the filing of a valid claim, as determined by the 1-20 Commission according to the circumstances in each case. Provided 1-21 no claimant shall be disqualified because of his or her leaving due 1-22 to medically verified illness of the claimant or the claimant's 1-23 minor child, injury, disability, or pregnancy and is still 2-1 available for work. A medically verified illness of a minor child 2-2 only prevents disqualification under this subsection if there is no 2-3 reasonable alternative care available to the child and the employer 2-4 refused to allow the employee a reasonable amount of time off 2-5 during the illness. Military personnel who do not reenlist may not 2-6 be considered to have left work voluntarily without good cause 2-7 connected with work. An individual who is partially unemployed and 2-8 who resigns that employment to accept other employment that the 2-9 individual reasonably believes will increase the individual's 2-10 weekly wage is not disqualified under this subsection. A temporary 2-11 employee of a temporary help firm is considered to have left the 2-12 employee's last work voluntarily without good cause connected with 2-13 the employee's work if the temporary employee does not contact the 2-14 temporary help firm for reassignment on completion of an 2-15 assignment. A temporary employee is not considered to have left 2-16 the employee's last work voluntarily without good cause connected 2-17 with the employee's work unless the temporary employee has been 2-18 advised of the obligation to contact the temporary help firm on 2-19 completion of the employee's assignment and advised that 2-20 unemployment benefits may be denied for failure to contact the 2-21 temporary help firm. 2-22 (b) If the Commission finds he has been discharged for 2-23 misconduct connected with his last work. The disqualification 2-24 continues until the claimant has returned to employment and either 2-25 worked for six weeks or earned wages equal to six times his weekly 3-1 benefit amount. 3-2 (c) If the Commission finds that during his current 3-3 benefit year he has failed, without good cause, either to apply for 3-4 available, suitable work when so directed by the Commission or to 3-5 accept suitable work when offered him, or to return to his 3-6 customary self-employment (if any) when so directed by the 3-7 Commission. The disqualification continues until the claimant has 3-8 returned to employment and either worked for six weeks or earned 3-9 wages equal to six times his weekly benefit amount. 3-10 (1) In determining whether or not any work is 3-11 suitable for an individual, the Commission shall consider the 3-12 degree of risk involved to his health, safety and morals at the 3-13 place of performance of his work, his physical fitness and prior 3-14 training, his experience and prior earnings, his length of 3-15 unemployment and prospects for securing local work in his customary 3-16 occupation, and the distance of the available work from his 3-17 residence. 3-18 (2) Notwithstanding any other provisions of this 3-19 Act, no work shall be deemed suitable and benefits shall not be 3-20 denied under this Act to any otherwise eligible individual for 3-21 refusing to accept new work under any of the following conditions: 3-22 (a) If the position offered is vacant due directly to a strike, 3-23 lockout, or other labor dispute; (b) If the wages, hours, or other 3-24 conditions of the work offered are substantially less favorable to 3-25 the individual than those prevailing for similar work in the 4-1 locality; (c) If as a condition of being employed the individual 4-2 would be required to join a company union or to resign from or 4-3 refrain from joining any bona fide labor organization. 4-4 (d) For any benefit period with respect to which the 4-5 Commission finds that his total or partial unemployment is (i) due 4-6 to the claimant's stoppage of work because of a labor dispute at 4-7 the factory, establishment, or other premises (including a vessel) 4-8 at which he is or was last employed, or (ii) because of a labor 4-9 dispute at another place, either within or without this State, 4-10 which is owned or operated by the same employing unit which owns or 4-11 operates the premises at which he is or was last employed, and 4-12 supplies materials or services necessary to the continued and usual 4-13 operation of the premises at which he is or was last employed; 4-14 provided that this subsection shall not apply if it is shown to the 4-15 satisfaction of the Commission that: 4-16 (1) He is not participating in or financing or 4-17 directly interested in the labor dispute; provided, however, that 4-18 failure or refusal to cross a picket line or refusal for any reason 4-19 during the continuance of such labor dispute to accept and perform 4-20 his available and customary work at the factory, establishment, or 4-21 other premises (including a vessel) where he is or was last 4-22 employed shall be considered as participation and interest in the 4-23 labor dispute; and 4-24 (2) He does not belong to a grade or class of 4-25 workers of which, immediately before the commencement of the labor 5-1 dispute, there were members employed at the premises (including a 5-2 vessel) at which the labor dispute occurs, any of whom are 5-3 participating in or financing or directly interested in the 5-4 dispute; provided, that if in any case separate branches of work 5-5 which are commonly conducted as separate businesses in separate 5-6 premises are conducted in separate departments of the same 5-7 premises, each such department shall, for the purposes of this 5-8 subsection, be deemed to be a separate factory, establishment, or 5-9 other premises; and where a disqualification arises from the 5-10 employee's failure to meet the requirements of this paragraph (2) 5-11 of this subsection (d) his disqualification shall cease if he shall 5-12 show that he is not, and at the time of the labor dispute was not, 5-13 a member of a labor organization which is the same as, represented 5-14 by, or directly affiliated with, or that he, or such organization 5-15 of which he is a member, if any, is not acting in concert or in 5-16 sympathy with a labor organization involved in the labor dispute at 5-17 the premises at which the labor dispute occurred, and he has made 5-18 an unconditional offer to return to work at the premises at which 5-19 he is or was last employed. 5-20 (e) For any benefit period with respect to which he is 5-21 receiving or has received remuneration in the form of: 5-22 (1) Wages in lieu of notice; 5-23 (2) Compensation for temporary partial 5-24 disability, temporary total disability or total and permanent 5-25 disability under the Workmen's Compensation Law of any State or 6-1 under a similar law of the United States; 6-2 (3) Old Age Benefits under Title II of the 6-3 Social Security Act as amended, or similar payments under any Act 6-4 of Congress, or a State Legislature; provided, that if such 6-5 remuneration is less than the benefits which would otherwise be due 6-6 under this Act, he shall be entitled to receive for such benefit 6-7 period, if otherwise eligible, benefits reduced by the amount of 6-8 such remuneration. If any such benefits, payable under this 6-9 subsection, after being reduced by the amount of such remuneration, 6-10 are not an even multiple of One Dollar ($1), they shall be adjusted 6-11 to the next higher multiple of One Dollar ($1). 6-12 (f) For a benefit period occurring from the date of 6-13 the sale of a business until the date that an individual is 6-14 employed and is eligible for benefits based on the wage credits 6-15 received through the new employment, if: 6-16 (1) the business is a corporation and the 6-17 individual is: 6-18 (A) an officer of the corporation; 6-19 (B) a majority or controlling shareholder 6-20 in the corporation; and 6-21 (C) involved in the sale of the 6-22 corporation; 6-23 (2) the business is a limited or general 6-24 partnership and the individual is a limited or general partner who 6-25 is involved in the sale of the partnership; or 7-1 (3) the business is a sole proprietorship and 7-2 the individual is the proprietor who sells the business. 7-3 (g) For the duration of any period of unemployment 7-4 with respect to which the Commission finds that such individual has 7-5 left his most recent work for the purpose of attending an 7-6 established educational institution; provided, that this subsection 7-7 shall not apply during a period in which an individual is in 7-8 training with the approval of the Commission. 7-9 (h) For weeks of unemployment beginning after March 7-10 31, 1980, for any benefit period with respect to which the 7-11 individual is receiving a governmental or other pension, retirement 7-12 or retired pay, annuity, or any other similar periodic payment 7-13 which is based on the previous work of the individual and which is 7-14 reasonably attributable to that benefit period; provided that if 7-15 the remuneration is less than the benefits which would otherwise be 7-16 due under this Act, the individual shall be entitled to receive for 7-17 that benefit period, if otherwise eligible, benefits reduced by the 7-18 amount of the remuneration. If those benefits payable under this 7-19 subsection, after being reduced by the amount of the remuneration, 7-20 are not an even multiple of One Dollar ($1), they shall be adjusted 7-21 to the next higher multiple of One Dollar ($1). 7-22 The Legislature declares that the preceding paragraph 7-23 is enacted because Section 3304(a)(15) of the Federal Unemployment 7-24 Tax Act as provided in Public Law 94-566 requires this provision in 7-25 State law as of January 1, 1978, as a condition for full tax credit 8-1 against the tax imposed by the Federal Unemployment Tax Act; and it 8-2 further declares that if Section 3304(a)(15) is amended to provide 8-3 modifications of these requirements, the modified requirements, to 8-4 the extent that they are required for full tax credit, shall be 8-5 considered applicable under the provisions of this Section rather 8-6 than the provision stated in the preceding paragraph. 8-7 (i) This Section does not disqualify a claimant whose 8-8 work-related reason for separation from employment was urgent, 8-9 compelling, and of a necessitous nature so as to make separation 8-10 involuntary. 8-11 (j) If the Commission finds that he has left his last 8-12 work voluntarily rather than provide services included within the 8-13 course and scope of his employment to an individual infected with a 8-14 communicable disease. The disqualification continues until the 8-15 claimant has returned to employment and either worked for six weeks 8-16 or earned wages equal to six times the claimant's weekly benefit 8-17 amount. A claimant is not disqualified under this subsection 8-18 unless the individual or organization for whom the claimant last 8-19 worked made available to the claimant the facilities, equipment, 8-20 training, and supplies necessary to permit the claimant to take 8-21 reasonable precautions to preclude the infection of the claimant 8-22 with the communicable disease. 8-23 (k) If the Commission finds that he has been 8-24 discharged from his last work based on a refusal by him to provide 8-25 services included within the course and scope of his employment to 9-1 an individual infected with a communicable disease. The 9-2 disqualification continues until the claimant has returned to 9-3 employment and either worked for six weeks or earned wages equal to 9-4 six times the claimant's weekly benefit amount. A claimant is not 9-5 disqualified under this subsection unless the individual or 9-6 organization for whom the claimant last worked made available to 9-7 the claimant the facilities, equipment, training, and supplies 9-8 necessary to preclude the infection of the claimant with the 9-9 communicable disease. 9-10 SECTION 2. Section 19, Texas Unemployment Compensation Act 9-11 (Article 5221b-17, Vernon's Texas Civil Statutes), is amended by 9-12 adding Subsections (r) and (s) to read as follows: 9-13 (r) "Temporary employee" means an individual employed by a 9-14 temporary help firm for the purpose of being assigned to work for a 9-15 client of a temporary help firm. 9-16 (s) "Temporary help firm" means a firm or business that 9-17 employs an individual for the purpose of assigning the individual 9-18 to a client of the temporary help firm to support or supplement the 9-19 client's work force in specific work situations, including employee 9-20 absences, temporary skill shortages, seasonal work loads, and 9-21 special assignments or projects. 9-22 SECTION 3. This Act takes effect September 1, 1993, and 9-23 applies only to benefit eligibility based on a claim for 9-24 unemployment compensation benefits that is filed with the Texas 9-25 Employment Commission on or after that date. A claim filed before 10-1 that date is governed by the law in effect on the date the claim 10-2 was filed, and the former law is continued in effect for that 10-3 purpose. 10-4 SECTION 4. The importance of this legislation and the 10-5 crowded condition of the calendars in both houses create an 10-6 emergency and an imperative public necessity that the 10-7 constitutional rule requiring bills to be read on three several 10-8 days in each house be suspended, and this rule is hereby suspended.