S.B. No. 1251 AN ACT 1-1 relating to the Texas Unemployment Compensation Act; defining 1-2 temporary help firm and temporary employee. 1-3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-4 SECTION 1. Section 5, Texas Unemployment Compensation Act 1-5 (Article 5221b-3, Vernon's Texas Civil Statutes), is amended to 1-6 read as follows: 1-7 Sec. 5. DISQUALIFICATION FOR BENEFITS. An individual shall 1-8 be disqualified for benefits: 1-9 (a) If the Commission finds that he has left his last work 1-10 voluntarily without good cause connected with his work. The 1-11 disqualification continues until the claimant has returned to 1-12 employment and either worked for six weeks or earned wages equal to 1-13 six times his weekly benefit amount, unless the individual left 1-14 work to move with a spouse from the area in which the individual 1-15 worked. In that case, the disqualification shall be for not less 1-16 than six (6) nor more than twenty-five (25) benefit periods 1-17 following the filing of a valid claim, as determined by the 1-18 Commission according to the circumstances in each case. Provided 1-19 no claimant shall be disqualified because of his or her leaving due 1-20 to medically verified illness of the claimant or the claimant's 1-21 minor child, injury, disability, or pregnancy and is still 1-22 available for work. A medically verified illness of a minor child 1-23 only prevents disqualification under this subsection if there is no 2-1 reasonable alternative care available to the child and the employer 2-2 refused to allow the employee a reasonable amount of time off 2-3 during the illness. Military personnel who do not reenlist may not 2-4 be considered to have left work voluntarily without good cause 2-5 connected with work. An individual who is partially unemployed and 2-6 who resigns that employment to accept other employment that the 2-7 individual reasonably believes will increase the individual's 2-8 weekly wage is not disqualified under this subsection. A temporary 2-9 employee of a temporary help firm will be deemed to have left his 2-10 last work voluntarily without good cause connected with his work if 2-11 the temporary employee does not contact the temporary help firm for 2-12 reassignment on completion of an assignment. A temporary employee 2-13 will not be deemed to have left his work voluntarily without good 2-14 cause connected with his work unless the temporary employee has 2-15 been advised of the obligation to contact the temporary help firm 2-16 on completion of assignments and that unemployment benefits may be 2-17 denied for failure to do so. 2-18 (b) If the Commission finds he has been discharged for 2-19 misconduct connected with his last work. The disqualification 2-20 continues until the claimant has returned to employment and either 2-21 worked for six weeks or earned wages equal to six times his weekly 2-22 benefit amount. 2-23 (c) If the Commission finds that during his current benefit 2-24 year he has failed, without good cause, either to apply for 2-25 available, suitable work when so directed by the Commission or to 3-1 accept suitable work when offered him, or to return to his 3-2 customary self-employment (if any) when so directed by the 3-3 Commission. The disqualification continues until the claimant has 3-4 returned to employment and either worked for six weeks or earned 3-5 wages equal to six times his weekly benefit amount. 3-6 (1) In determining whether or not any work is suitable 3-7 for an individual, the Commission shall consider the degree of risk 3-8 involved to his health, safety and morals at the place of 3-9 performance of his work, his physical fitness and prior training, 3-10 his experience and prior earnings, his length of unemployment and 3-11 prospects for securing local work in his customary occupation, and 3-12 the distance of the available work from his residence. 3-13 (2) Notwithstanding any other provisions of this Act, 3-14 no work shall be deemed suitable and benefits shall not be denied 3-15 under this Act to any otherwise eligible individual for refusing to 3-16 accept new work under any of the following conditions: (a) If the 3-17 position offered is vacant due directly to a strike, lockout, or 3-18 other labor dispute; (b) If the wages, hours, or other conditions 3-19 of the work offered are substantially less favorable to the 3-20 individual than those prevailing for similar work in the locality; 3-21 (c) If as a condition of being employed the individual would be 3-22 required to join a company union or to resign from or refrain from 3-23 joining any bona fide labor organization. 3-24 (d) For any benefit period with respect to which the 3-25 Commission finds that his total or partial unemployment is (i) due 4-1 to the claimant's stoppage of work because of a labor dispute at 4-2 the factory, establishment, or other premises (including a vessel) 4-3 at which he is or was last employed, or (ii) because of a labor 4-4 dispute at another place, either within or without this State, 4-5 which is owned or operated by the same employing unit which owns or 4-6 operates the premises at which he is or was last employed, and 4-7 supplies materials or services necessary to the continued and usual 4-8 operation of the premises at which he is or was last employed; 4-9 provided that this subsection shall not apply if it is shown to the 4-10 satisfaction of the Commission that: 4-11 (1) He is not participating in or financing or 4-12 directly interested in the labor dispute; provided, however, that 4-13 failure or refusal to cross a picket line or refusal for any reason 4-14 during the continuance of such labor dispute to accept and perform 4-15 his available and customary work at the factory, establishment, or 4-16 other premises (including a vessel) where he is or was last 4-17 employed shall be considered as participation and interest in the 4-18 labor dispute; and 4-19 (2) He does not belong to a grade or class of workers 4-20 of which, immediately before the commencement of the labor dispute, 4-21 there were members employed at the premises (including a vessel) at 4-22 which the labor dispute occurs, any of whom are participating in or 4-23 financing or directly interested in the dispute; provided, that if 4-24 in any case separate branches of work which are commonly conducted 4-25 as separate businesses in separate premises are conducted in 5-1 separate departments of the same premises, each such department 5-2 shall, for the purposes of this subsection, be deemed to be a 5-3 separate factory, establishment, or other premises; and where a 5-4 disqualification arises from the employee's failure to meet the 5-5 requirements of this paragraph (2) of this subsection (d) his 5-6 disqualification shall cease if he shall show that he is not, and 5-7 at the time of the labor dispute was not, a member of a labor 5-8 organization which is the same as, represented by, or directly 5-9 affiliated with, or that he, or such organization of which he is a 5-10 member, if any, is not acting in concert or in sympathy with a 5-11 labor organization involved in the labor dispute at the premises at 5-12 which the labor dispute occurred, and he has made an unconditional 5-13 offer to return to work at the premises at which he is or was last 5-14 employed. 5-15 (e) For any benefit period with respect to which he is 5-16 receiving or has received remuneration in the form of: 5-17 (1) Wages in lieu of notice; 5-18 (2) Compensation for temporary partial disability, 5-19 temporary total disability or total and permanent disability under 5-20 the Workmen's Compensation Law of any State or under a similar law 5-21 of the United States; 5-22 (3) Old Age Benefits under Title II of the Social 5-23 Security Act as amended, or similar payments under any Act of 5-24 Congress, or a State Legislature; provided, that if such 5-25 remuneration is less than the benefits which would otherwise be due 6-1 under this Act, he shall be entitled to receive for such benefit 6-2 period, if otherwise eligible, benefits reduced by the amount of 6-3 such remuneration. If any such benefits, payable under this 6-4 subsection, after being reduced by the amount of such remuneration, 6-5 are not an even multiple of One Dollar ($1), they shall be adjusted 6-6 to the next higher multiple of One Dollar ($1). 6-7 (f) For a benefit period occurring from the date of the sale 6-8 of a business until the date that an individual is employed and is 6-9 eligible for benefits based on the wage credits received through 6-10 the new employment, if: 6-11 (1) the business is a corporation and the individual 6-12 is: 6-13 (A) an officer of the corporation; 6-14 (B) a majority or controlling shareholder in the 6-15 corporation; and 6-16 (C) involved in the sale of the corporation; 6-17 (2) the business is a limited or general partnership 6-18 and the individual is a limited or general partner who is involved 6-19 in the sale of the partnership; or 6-20 (3) the business is a sole proprietorship and the 6-21 individual is the proprietor who sells the business. 6-22 (g) For the duration of any period of unemployment with 6-23 respect to which the Commission finds that such individual has left 6-24 his most recent work for the purpose of attending an established 6-25 educational institution; provided, that this subsection shall not 7-1 apply during a period in which an individual is in training with 7-2 the approval of the Commission. 7-3 (h) For weeks of unemployment beginning after March 31, 7-4 1980, for any benefit period with respect to which the individual 7-5 is receiving a governmental or other pension, retirement or retired 7-6 pay, annuity, or any other similar periodic payment which is based 7-7 on the previous work of the individual and which is reasonably 7-8 attributable to that benefit period; provided that if the 7-9 remuneration is less than the benefits which would otherwise be due 7-10 under this Act, the individual shall be entitled to receive for 7-11 that benefit period, if otherwise eligible, benefits reduced by the 7-12 amount of the remuneration. If those benefits payable under this 7-13 subsection, after being reduced by the amount of the remuneration, 7-14 are not an even multiple of One Dollar ($1), they shall be adjusted 7-15 to the next higher multiple of One Dollar ($1). 7-16 The Legislature declares that the preceding paragraph is 7-17 enacted because Section 3304(a)(15) of the Federal Unemployment Tax 7-18 Act as provided in Public Law 94-566 requires this provision in 7-19 State law as of January 1, 1978, as a condition for full tax credit 7-20 against the tax imposed by the Federal Unemployment Tax Act; and it 7-21 further declares that if Section 3304(a)(15) is amended to provide 7-22 modifications of these requirements, the modified requirements, to 7-23 the extent that they are required for full tax credit, shall be 7-24 considered applicable under the provisions of this Section rather 7-25 than the provision stated in the preceding paragraph. 8-1 (i) This Section does not disqualify a claimant whose 8-2 work-related reason for separation from employment was urgent, 8-3 compelling, and of a necessitous nature so as to make separation 8-4 involuntary. 8-5 (j) If the Commission finds that he has left his last work 8-6 voluntarily rather than provide services included within the course 8-7 and scope of his employment to an individual infected with a 8-8 communicable disease. The disqualification continues until the 8-9 claimant has returned to employment and either worked for six weeks 8-10 or earned wages equal to six times the claimant's weekly benefit 8-11 amount. A claimant is not disqualified under this subsection 8-12 unless the individual or organization for whom the claimant last 8-13 worked made available to the claimant the facilities, equipment, 8-14 training, and supplies necessary to permit the claimant to take 8-15 reasonable precautions to preclude the infection of the claimant 8-16 with the communicable disease. 8-17 (k) If the Commission finds that he has been discharged from 8-18 his last work based on a refusal by him to provide services 8-19 included within the course and scope of his employment to an 8-20 individual infected with a communicable disease. The 8-21 disqualification continues until the claimant has returned to 8-22 employment and either worked for six weeks or earned wages equal to 8-23 six times the claimant's weekly benefit amount. A claimant is not 8-24 disqualified under this subsection unless the individual or 8-25 organization for whom the claimant last worked made available to 9-1 the claimant the facilities, equipment, training, and supplies 9-2 necessary to preclude the infection of the claimant with the 9-3 communicable disease. 9-4 SECTION 2. Section 19, Texas Unemployment Compensation Act 9-5 (Article 5221b-17, Vernon's Texas Civil Statutes), is amended by 9-6 adding Subsections (r) and (s) to read as follows: 9-7 (r) "Temporary help firm" means a firm or business that 9-8 employs individuals for the purpose of assigning them to the 9-9 temporary help firm's clients to support or supplement the client's 9-10 work force in work situations such as employee absences, temporary 9-11 skill shortages, seasonal work loads, and special assignments and 9-12 projects. For the purposes of this Act, the temporary help firm is 9-13 deemed to be the employer of the temporary employee. 9-14 (s) "Temporary employee" means an individual employed by a 9-15 temporary help firm for the purpose of being assigned to work for 9-16 the clients of a temporary help firm. 9-17 SECTION 3. This Act takes effect September 1, 1993. 9-18 SECTION 4. The importance of this legislation and the 9-19 crowded condition of the calendars in both houses create an 9-20 emergency and an imperative public necessity that the 9-21 constitutional rule requiring bills to be read on three several 9-22 days in each house be suspended, and this rule is hereby suspended.