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 4-57 -------------------------------------------------------------------