SRC-JFA S.B. 737 75(R)   BILL ANALYSIS


Senate Research Center   S.B. 737
By: Carona
Economic Development
3-31-97
As Filed


DIGEST 

Currently, under the Texas Unemployment Compensation Act, certain
employees who are partially unemployed are allowed to draw unemployment
benefits.  The Act defines partial unemployment without reference to the
reason for the partial unemployment.  This bill would provide that under
Section 201.091, Labor Code, an individual is not partially unemployed in
regard to unemployment benefits if the individual's work hours are reduced
by the individual's employer as a result of a disciplinary action.   

Additionally, an employee who elects to file for unemployment benefits
during or at the end of a short-term unpaid disciplinary suspension is
considered to have been terminated.  The employer has the legal burden to
show misconduct in termination cases involving such employees.  If the
employee was considered to have voluntarily quit, instead of being
terminated, the legal burden would be placed on the employee to show good
cause for quitting.  This bill would provide under Section 207.045, Labor
Code, that an individual who receives an unpaid suspension of five days or
less is to be viewed as voluntarily quitting without good cause in regard
to unemployment benefits if the individual does not return to the position
of employment after the expiration of suspension.  

PURPOSE

As proposed, S.B. 737 sets forth the conditions in which a person is
disqualified for eligibility of unemployment compensation benefits for
periods of unpaid disciplinary suspensions. 

RULEMAKING AUTHORITY

This bill does not grant any additional rulemaking authority to a state
officer, institution, or agency. 

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Section 201.091, Labor Code, by adding Subsection (d),
to provide that an individual is not partially employed for purposes of
Title 4A, Labor Code, for a benefit period in which the individual is
suspended by the individual's employer from the individual's position of
employment without compensation as a disciplinary action.  

SECTION 2. Amends Section 207.045, Labor Code, by adding Subsection (i),
to provide that an individual who is suspended by the individual's
employer from the individual's position of employment for a specified term
not to exceed five days without compensation as a disciplinary action is
considered to have left the position of employment voluntarily without
good cause connected to the employment if the individual does not return
to the position of employment after the expiration of the period of
suspension.  Provides that the disqualification for benefits under this
subsection continues until the conditions for requalification under
Subsection (b) are satisfied.  

SECTION 3. Effective date: September 1, 1997.
  Makes application of this Act prospective.

SECTION 4. Emergency clause.