1-1 By: Lucio S.B. No. 1251
1-2 (In the Senate - Filed March 12, 1993; March 16, 1993, read
1-3 first time and referred to Committee on Economic Development;
1-4 April 27, 1993, reported favorably by the following vote: Yeas 6,
1-5 Nays 0; April 27, 1993, sent to printer.)
1-6 COMMITTEE VOTE
1-7 Yea Nay PNV Absent
1-8 Parker x
1-9 Lucio x
1-10 Ellis x
1-11 Haley x
1-12 Harris of Dallas x
1-13 Harris of Tarrant x
1-14 Leedom x
1-15 Madla x
1-16 Rosson x
1-17 Shapiro x
1-18 Wentworth x
1-19 A BILL TO BE ENTITLED
1-20 AN ACT
1-21 relating to the Texas Unemployment Compensation Act; defining
1-22 temporary help firm and temporary employee.
1-23 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-24 SECTION 1. Section 5, Texas Unemployment Compensation Act
1-25 (Article 5221b-3, Vernon's Texas Civil Statutes), is amended to
1-26 read as follows:
1-27 Sec. 5. DISQUALIFICATION FOR BENEFITS. An individual shall
1-28 be disqualified for benefits:
1-29 (a) If the Commission finds that he has left his last work
1-30 voluntarily without good cause connected with his work. The
1-31 disqualification continues until the claimant has returned to
1-32 employment and either worked for six weeks or earned wages equal to
1-33 six times his weekly benefit amount, unless the individual left
1-34 work to move with a spouse from the area in which the individual
1-35 worked. In that case, the disqualification shall be for not less
1-36 than six (6) nor more than twenty-five (25) benefit periods
1-37 following the filing of a valid claim, as determined by the
1-38 Commission according to the circumstances in each case. Provided
1-39 no claimant shall be disqualified because of his or her leaving due
1-40 to medically verified illness of the claimant or the claimant's
1-41 minor child, injury, disability, or pregnancy and is still
1-42 available for work. A medically verified illness of a minor child
1-43 only prevents disqualification under this subsection if there is no
1-44 reasonable alternative care available to the child and the employer
1-45 refused to allow the employee a reasonable amount of time off
1-46 during the illness. Military personnel who do not reenlist may not
1-47 be considered to have left work voluntarily without good cause
1-48 connected with work. An individual who is partially unemployed and
1-49 who resigns that employment to accept other employment that the
1-50 individual reasonably believes will increase the individual's
1-51 weekly wage is not qualified under this subsection. A temporary
1-52 employee of a temporary help firm will be deemed to have left his
1-53 last work voluntarily without good cause connected with his work if
1-54 the temporary employee does not contact the temporary help firm for
1-55 reassignment on completion of an assignment. A temporary employee
1-56 will not be deemed to have left his work voluntarily without good
1-57 cause connected with his work unless the temporary employee has
1-58 been advised of the obligation to contact the temporary help firm
1-59 on completion of assignments and that unemployment benefits may be
1-60 denied for failure to do so.
1-61 (b) If the Commission finds he has been discharged for
1-62 misconduct connected with his last work. The disqualification
1-63 continues until the claimant has returned to employment and either
1-64 worked for six weeks or earned wages equal to six times his weekly
1-65 benefit amount.
1-66 (c) If the Commission finds that during his current benefit
1-67 year he has failed, without good cause, either to apply for
1-68 available, suitable work when so directed by the Commission or to
2-1 accept suitable work when offered him, or to return to his
2-2 customary self-employment (if any) when so directed by the
2-3 Commission. The disqualification continues until the claimant has
2-4 returned to employment and either worked for six weeks or earned
2-5 wages equal to six times his weekly benefit amount.
2-6 (1) In determining whether or not any work is suitable
2-7 for an individual, the Commission shall consider the degree of risk
2-8 involved to his health, safety and morals at the place of
2-9 performance of his work, his physical fitness and prior training,
2-10 his experience and prior earnings, his length of unemployment and
2-11 prospects for securing local work in his customary occupation, and
2-12 the distance of the available work from his residence.
2-13 (2) Notwithstanding any other provisions of this Act,
2-14 no work shall be deemed suitable and benefits shall not be denied
2-15 under this Act to any otherwise eligible individual for refusing to
2-16 accept new work under any of the following conditions: (a) If the
2-17 position offered is vacant due directly to a strike, lockout, or
2-18 other labor dispute; (b) If the wages, hours, or other conditions
2-19 of the work offered are substantially less favorable to the
2-20 individual than those prevailing for similar work in the locality;
2-21 (c) If as a condition of being employed the individual would be
2-22 required to join a company union or to resign from or refrain from
2-23 joining any bona fide labor organization.
2-24 (d) For any benefit period with respect to which the
2-25 Commission finds that his total or partial unemployment is (i) due
2-26 to the claimant's stoppage of work because of a labor dispute at
2-27 the factory, establishment, or other premises (including a vessel)
2-28 at which he is or was last employed, or (ii) because of a labor
2-29 dispute at another place, either within or without this State,
2-30 which is owned or operated by the same employing unit which owns or
2-31 operates the premises at which he is or was last employed, and
2-32 supplies materials or services necessary to the continued and usual
2-33 operation of the premises at which he is or was last employed;
2-34 provided that this subsection shall not apply if it is shown to the
2-35 satisfaction of the Commission that:
2-36 (1) He is not participating in or financing or
2-37 directly interested in the labor dispute; provided, however, that
2-38 failure or refusal to cross a picket line or refusal for any reason
2-39 during the continuance of such labor dispute to accept and perform
2-40 his available and customary work at the factory, establishment, or
2-41 other premises (including a vessel) where he is or was last
2-42 employed shall be considered as participation and interest in the
2-43 labor dispute; and
2-44 (2) He does not belong to a grade or class of workers
2-45 of which, immediately before the commencement of the labor dispute,
2-46 there were members employed at the premises (including a vessel) at
2-47 which the labor dispute occurs, any of whom are participating in or
2-48 financing or directly interested in the dispute; provided, that if
2-49 in any case separate branches of work which are commonly conducted
2-50 as separate businesses in separate premises are conducted in
2-51 separate departments of the same premises, each such department
2-52 shall, for the purposes of this subsection, be deemed to be a
2-53 separate factory, establishment, or other premises; and where a
2-54 disqualification arises from the employee's failure to meet the
2-55 requirements of this paragraph (2) of this subsection (d) his
2-56 disqualification shall cease if he shall show that he is not, and
2-57 at the time of the labor dispute was not, a member of a labor
2-58 organization which is the same as, represented by, or directly
2-59 affiliated with, or that he, or such organization of which he is a
2-60 member, if any, is not acting in concert or in sympathy with a
2-61 labor organization involved in the labor dispute at the premises at
2-62 which the labor dispute occurred, and he has made an unconditional
2-63 offer to return to work at the premises at which he is or was last
2-64 employed.
2-65 (e) For any benefit period with respect to which he is
2-66 receiving or has received remuneration in the form of:
2-67 (1) Wages in lieu of notice;
2-68 (2) Compensation for temporary partial disability,
2-69 temporary total disability or total and permanent disability under
2-70 the Workmen's Compensation Law of any State or under a similar law
3-1 of the United States;
3-2 (3) Old Age Benefits under Title II of the Social
3-3 Security Act as amended, or similar payments under any Act of
3-4 Congress, or a State Legislature; provided, that if such
3-5 remuneration is less than the benefits which would otherwise be due
3-6 under this Act, he shall be entitled to receive for such benefit
3-7 period, if otherwise eligible, benefits reduced by the amount of
3-8 such remuneration. If any such benefits, payable under this
3-9 subsection, after being reduced by the amount of such remuneration,
3-10 are not an even multiple of One Dollar ($1), they shall be adjusted
3-11 to the next higher multiple of One Dollar ($1).
3-12 (f) For a benefit period occurring from the date of the sale
3-13 of a business until the date that an individual is employed and is
3-14 eligible for benefits based on the wage credits received through
3-15 the new employment, if:
3-16 (1) the business is a corporation and the individual
3-17 is:
3-18 (A) an officer of the corporation;
3-19 (B) a majority or controlling shareholder in the
3-20 corporation; and
3-21 (C) involved in the sale of the corporation;
3-22 (2) the business is a limited or general partnership
3-23 and the individual is a limited or general partner who is involved
3-24 in the sale of the partnership; or
3-25 (3) the business is a sole proprietorship and the
3-26 individual is the proprietor who sells the business.
3-27 (g) For the duration of any period of unemployment with
3-28 respect to which the Commission finds that such individual has left
3-29 his most recent work for the purpose of attending an established
3-30 educational institution; provided, that this subsection shall not
3-31 apply during a period in which an individual is in training with
3-32 the approval of the Commission.
3-33 (h) For weeks of unemployment beginning after March 31,
3-34 1980, for any benefit period with respect to which the individual
3-35 is receiving a governmental or other pension, retirement or retired
3-36 pay, annuity, or any other similar periodic payment which is based
3-37 on the previous work of the individual and which is reasonably
3-38 attributable to that benefit period; provided that if the
3-39 remuneration is less than the benefits which would otherwise be due
3-40 under this Act, the individual shall be entitled to receive for
3-41 that benefit period, if otherwise eligible, benefits reduced by the
3-42 amount of the remuneration. If those benefits payable under this
3-43 subsection, after being reduced by the amount of the remuneration,
3-44 are not an even multiple of One Dollar ($1), they shall be adjusted
3-45 to the next higher multiple of One Dollar ($1).
3-46 The Legislature declares that the preceding paragraph is
3-47 enacted because Section 3304(a)(15) of the Federal Unemployment Tax
3-48 Act as provided in Public Law 94-566 requires this provision in
3-49 State law as of January 1, 1978, as a condition for full tax credit
3-50 against the tax imposed by the Federal Unemployment Tax Act; and it
3-51 further declares that if Section 3304(a)(15) is amended to provide
3-52 modifications of these requirements, the modified requirements, to
3-53 the extent that they are required for full tax credit, shall be
3-54 considered applicable under the provisions of this Section rather
3-55 than the provision stated in the preceding paragraph.
3-56 (i) This Section does not disqualify a claimant whose
3-57 work-related reason for separation from employment was urgent,
3-58 compelling, and of a necessitous nature so as to make separation
3-59 involuntary.
3-60 (j) If the Commission finds that he has left his last work
3-61 voluntarily rather than provide services included within the course
3-62 and scope of his employment to an individual infected with a
3-63 communicable disease. The disqualification continues until the
3-64 claimant has returned to employment and either worked for six weeks
3-65 or earned wages equal to six times the claimant's weekly benefit
3-66 amount. A claimant is not disqualified under this subsection
3-67 unless the individual or organization for whom the claimant last
3-68 worked made available to the claimant the facilities, equipment,
3-69 training, and supplies necessary to permit the claimant to take
3-70 reasonable precautions to preclude the infection of the claimant
4-1 with the communicable disease.
4-2 (k) If the Commission finds that he has been discharged from
4-3 his last work based on a refusal by him to provide services
4-4 included within the course and scope of his employment to an
4-5 individual infected with a communicable disease. The
4-6 disqualification continues until the claimant has returned to
4-7 employment and either worked for six weeks or earned wages equal to
4-8 six times the claimant's weekly benefit amount. A claimant is not
4-9 disqualified under this subsection unless the individual or
4-10 organization for whom the claimant last worked made available to
4-11 the claimant the facilities, equipment, training, and supplies
4-12 necessary to preclude the infection of the claimant with the
4-13 communicable disease.
4-14 SECTION 2. Section 19, Texas Unemployment Compensation Act
4-15 (Article 5221b-17, Vernon's Texas Civil Statutes) is amended by
4-16 adding Subsections (r) and (s) to read as follows:
4-17 (r) "Temporary help firm" means a firm or business that
4-18 employs individuals for the purpose of assigning them to the
4-19 temporary help firm's clients to support or supplement the client's
4-20 work force in work situations such as employee absences, temporary
4-21 skill shortages, seasonal work loads, and special assignments and
4-22 projects. For the purposes of this Act, the temporary help firm is
4-23 deemed to be the employer of the temporary employee.
4-24 (s) "Temporary employee" means an individual employed by a
4-25 temporary help firm for the purpose of being assigned to work for
4-26 the clients of a temporary help firm.
4-27 SECTION 3. This Act takes effect September 1, 1993.
4-28 SECTION 4. The importance of this legislation and the
4-29 crowded condition of the calendars in both houses create an
4-30 emergency and an imperative public necessity that the
4-31 constitutional rule requiring bills to be read on three several
4-32 days in each house be suspended, and this rule is hereby suspended.
4-33 * * * * *
4-34 Austin,
4-35 Texas
4-36 April 27, 1993
4-37 Hon. Bob Bullock
4-38 President of the Senate
4-39 Sir:
4-40 We, your Committee on Economic Development to which was referred
4-41 S.B. No. 1251, have had the same under consideration, and I am
4-42 instructed to report it back to the Senate with the recommendation
4-43 that it do pass and be printed.
4-44 Parker,
4-45 Chairman
4-46 * * * * *
4-47 WITNESSES
4-48 FOR AGAINST ON
4-49 ___________________________________________________________________
4-50 Name: Cyndi Crowley x
4-51 Representing: TDY Temporaries & TATS
4-52 City: Austin
4-53 -------------------------------------------------------------------
4-54 Name: James Jackson x
4-55 Representing: Texas Employment Commission
4-56 City: Austin
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