1999 Legislation
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SENATE BILL NO. 1036 – Unemploymentins/staffing service empl


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Daily Data Tracking History

S1036.......................................by COMMERCE AND HUMAN RESOURCES
UNEMPLOYMENT INSURANCE - Amends existing law to provide eligibility
conditions for a claimant employed by a staffing service.

01/22    Senate intro - 1st rdg - to printing
01/25    Rpt prt - to Com/HuRes
02/05    Rpt out - rec d/p - to 2nd rdg
02/08    2nd rdg - to 3rd rdg
02/09    3rd rdg - PASSED - 33-1-1
      AYES--Andreason, Boatright, Branch, Bunderson, Burtenshaw, Cameron,
      Crow, Danielson, Darrington, Deide, Dunklin, Frasure, Geddes,
      Hawkins, Ingram, Ipsen, Keough, King, Lee, McLaughlin, Noh, Parry,
      Richardson, Riggs, Risch, Sandy, Schroeder, Sorensen, Stegner,
      Stennett, Thorne, Twiggs, Wheeler
      Absent and excused--Davis
    Floor Sponsor - King
    Title apvd - to House
02/10    House intro - 1st rdg - to Comm/Hu Res
02/24    Rpt out - rec d/p - to 2nd rdg
02/25    2nd rdg - to 3rd rdg
03/01    3rd rdg - PASSED - 64-5-1
      AYES -- Alltus, Barraclough, Barrett, Bell, Bieter, Black, Bruneel,
      Callister, Campbell, Clark, Crow, Cuddy, Deal, Denney, Ellsworth,
      Field(13), Field(20), Gagner, Geddes, Gould, Hadley, Hammond,
      Hansen(23), Hansen(29), Henbest, Hornbeck, Jaquet, Jones, Judd,
      Kellogg, Kempton, Kendell, Lake, Limbaugh, Linford, Loertscher,
      Mader, McKague, Meyer, Montgomery, Mortensen, Moyle, Pischner,
      Pomeroy, Reynolds, Ridinger, Robison, Sali, Schaefer, Sellman, Smith,
      Smylie, Stevenson, Stoicheff, Stone, Taylor, Tilman, Tippets, Trail,
      Wheeler, Williams, Wood, Zimmermann, Mr Speaker
      NAYS -- Boe, Chase, Kunz, Ringo, Watson
      Absent and excused -- Marley
    Floor Sponsor - Crow
    Title apvd - to Senate
03/02    To enrol
03/03    Rpt enrol - Pres signed
03/04    Sp signed
03/05    To Governor
03/11    Governor signed
         Session Law Chapter 53
         Effective: 07/01/99

Bill Text


 ||||              LEGISLATURE OF THE STATE OF IDAHO             ||||
Fifty-fifth Legislature                 First Regular Session - 1999

                                      IN THE SENATE

                                   SENATE BILL NO. 1036


 1                                        AN ACT

 5    Be It Enacted by the Legislature of the State of Idaho:

 6        SECTION  1.  That  Section 72-1366, Idaho Code, be, and the same is hereby
 7    amended to read as follows:

 8        72-1366.  PERSONAL ELIGIBILITY CONDITIONS. The personal eligibility condi-
 9    tions of a benefit claimant are that:
10        (1)  The claimant shall have made a claim for benefits  and  provided  all
11    necessary information pertinent to eligibility.
12        (2)  The  claimant  shall have registered for work and thereafter reported
13    to a job service office or other agency in a manner prescribed by  the  direc-
14    tor.
15        (3)  The claimant shall have met the minimum wage requirements in his base
16    period as provided in section 72-1367, Idaho Code.
17        (4)  During the whole of any week with respect to which he claims benefits
18    or  credit to his waiting period, the claimant was able to work, available for
19    suitable work, and seeking work; provided, however, that no claimant shall  be
20    considered  ineligible  for failure to comply with the provisions of this sub-
21    section if: (i) such failure is due to an illness or disability  which  occurs
22    after he has filed a claim and during such illness or disability, the claimant
23    does  not  refuse or miss suitable work that would have provided wages greater
24    than one-half (1/2) of the claimant's  weekly  benefit  amount;  or  (ii)  the
25    claimant,  because  of  compelling  personal  circumstance,  is required to be
26    absent from his normal labor market area, provided that such absence does  not
27    exceed a minor portion of the workweek.
28        (5)  The  claimant's  unemployment is not due to the fact that he left his
29    employment voluntarily without good cause connected with  his  employment,  or
30    that he was discharged for misconduct in connection with his employment.
31        (6)  The  claimant's  unemployment  is not due to his failure without good
32    cause to apply for available suitable work or to  accept  suitable  work  when
33    offered to him. The longer a claimant has been unemployed, the more willing he
34    must be to seek other types of work and accept work at a lower rate of pay.
35        (7)  In determining whether or not work is suitable for an individual, the
36    degree of risk involved to his health, safety, morals, physical fitness, expe-
37    rience,  training,  past  earnings,  length  of unemployment and prospects for
38    obtaining local employment in his customary occupation, the  distance  of  the
39    work  from  his residence, and other pertinent factors shall be considered. No
40    employment shall be deemed suitable and benefits shall not be  denied  to  any
41    otherwise  eligible individual for refusing to accept new work or to hold him-
42    self available for work under any of the following conditions:
43        (a)  If the vacancy of the position offered is due directly to  a  strike,


 1        lockout, or other labor dispute;
 2        (b)  If  the  wages,  hours,  or  other conditions of the work offered are
 3        below those prevailing for similar  work  in  the  locality  of  the  work
 4        offered;
 5        (c)  If,  as  a  condition  of  being  employed,  the  individual would be
 6        required to join a company union or to resign from or refrain from joining
 7        any bona fide labor organization.
 8        (8)  No claimant who is otherwise eligible shall be  denied  benefits  for
 9    any week due to an inability to comply with the requirements contained in sub-
10    sections (4) and (6) of this section, if:
11        (a)  The  claimant is a participant in a program sponsored by title III of
12        the job training partnership act and attends a job training  course  under
13        that program; or
14        (b)  The claimant attends a job training course authorized pursuant to the
15        provisions  of  section  236(a)(1)  of  the trade act of 1974 or the North
16        American free trade agreement implementation act.
17        (c)  The claimant lacks skills to compete in the labor market and  attends
18        a  job training course with the approval of the director. The director may
19        approve job training courses that meet the following criteria:
20             (i)   The purpose of the job training is to teach the claimant skills
21             that will enhance the claimant's opportunities for employment; and
22             (ii)  The job training can be completed within one (1)  year,  except
23             that this requirement may be waived pursuant to rules that the direc-
24             tor may prescribe.
25        This  subsection  shall apply only if the claimant submits with each claim
26    report a written certification from the training facility that the claimant is
27    attending and satisfactorily completing the job  training  course,  or  demon-
28    strates good cause for failure to attend the job training.
29        (9)  No  claimant who is otherwise eligible shall be denied benefits under
30    subsection (5) of this section for leaving employment to attend  job  training
31    pursuant  to  subsection  (8)  of  this  section,  provided  that the claimant
32    obtained the employment after enrollment in or during scheduled breaks in  the
33    job  training course, or that the employment was not suitable. For purposes of
34    this subsection, the term "suitable employment" means work of a  substantially
35    equal  or  higher skill level than the individual's past employment, and wages
36    for such work are not less than eighty percent (80%)  of  the  average  weekly
37    wage in the individual's past employment.
38        (10) A  claimant  shall  not  be eligible to receive benefits for any week
39    with respect to which it is found that his unemployment is due to a labor dis-
40    pute; provided, that this subsection shall not apply if it is shown that:
41        (a)  The claimant is not participating, financing,  aiding,  abetting,  or
42        directly interested in the labor dispute; and
43        (b)  The claimant does not belong to a grade or class of workers with mem-
44        bers  employed  at the premises at which the labor dispute occurs, who are
45        participating in or directly interested in the dispute.
46        (11) A claimant shall not be  entitled  to  benefits  for  any  week  with
47    respect  to  which  or  a part of which he has received or is seeking benefits
48    under an unemployment insurance law of another state or of the United  States;
49    provided,  that if the appropriate agency of such other state or of the United
50    States shall finally determine that he is not entitled  to  such  unemployment
51    compensation  or  insurance  benefits,  he shall not by the provisions of this
52    subsection be denied benefits. For purposes of this  section,  a  law  of  the
53    United  States  providing  any  payments  of  any  type and in any amounts for
54    periods of unemployment due to involuntary unemployment shall be considered an
55    unemployment insurance law of the United States.


 1        (12) A claimant shall not be entitled to benefits for a period  of  fifty-
 2    two (52) weeks if it is determined that he has wilfully made a false statement
 3    or  wilfully failed to report a material fact in order to obtain benefits. The
 4    period of disqualification  shall  commence  the  week  the  determination  is
 5    issued.  The  claimant  shall  also  be ineligible for waiting week credit and
 6    shall repay any sums received for a week in which the claimant  made  a  false
 7    statement or failed to report a material fact.
 8        (13) A claimant shall not be entitled to benefits if his principal occupa-
 9    tion is self-employment.
10        (14) A  claimant who has been found ineligible for benefits under the pro-
11    visions of subsection (5), (6), (7) or (9) of this section  shall  reestablish
12    his  eligibility by having obtained bona fide work and received wages therefor
13    in an amount of at least twelve (12) times his weekly benefit amount.
14        (15) Benefits based on service in employment defined in sections  72-1349A
15    and  72-1352(3),  Idaho Code, shall be payable in the same amount, on the same
16    terms and subject to the same conditions as benefits payable on the  basis  of
17    other service subject to this act.
18        (a)  If  the  services performed during one-half (1/2) or more of any con-
19        tract period by an individual for an educational institution as defined in
20        section 72-1322B, Idaho Code, are in an instructional, research, or  prin-
21        cipal  administrative  capacity, all the services shall be deemed to be in
22        such capacity.
23        (b)  If the services performed during less than one-half (1/2) of any con-
24        tract period by an individual for an educational  institution  are  in  an
25        instructional, research, or principal administrative capacity, none of the
26        service shall be deemed to be in such capacity.
27        (c)  As  used  in  this section, "contract period" means the entire period
28        for which the individual contracts to perform services,  pursuant  to  the
29        terms of the contract.
30        (16) No  claimant  is  eligible  to receive benefits in two (2) successive
31    benefit years unless, after the beginning of the  first  benefit  year  during
32    which he received benefits, he performed service and earned an amount equal to
33    not  less  than six (6) times the weekly benefit amount established during the
34    first benefit year.
35        (17) (a) Benefits based on wages  earned  for  services  performed  in  an
36        instructional,  research, or principal administrative capacity for an edu-
37        cational institution shall not be paid for any week of  unemployment  com-
38        mencing  during  the  period between two (2) successive academic years, or
39        during a similar period between two (2) terms, whether or not  successive,
40        or  during  a  period  of  paid  sabbatical  leave  provided  for  in  the
41        individual's contract, to any individual who performs such services in the
42        first  academic  year  (or term) and has a contract to perform services in
43        any such capacity for any educational institution in the  second  academic
44        year  or term, or has been given reasonable assurance that such a contract
45        will be offered.
46        (b)  Benefits based on wages earned for services performed  in  any  other
47        capacity  for an educational institution shall not be paid to any individ-
48        ual for any week which commences during a period between two  (2)  succes-
49        sive school years or terms if the individual performs such services in the
50        first school year or term, and there is a contract or reasonable assurance
51        that  the  individual will perform such services in the second school year
52        or term. If benefits are denied to any individual under this  subparagraph
53        and the individual was not offered an opportunity to perform such services
54        for  the educational institution for the second academic year or term, the
55        individual shall be entitled to a retroactive payment of benefits for each


 1        week for which the individual filed a timely claim for  benefits  and  for
 2        which benefits were denied solely by reason of this clause.
 3        (c)  With  respect  to any services described in paragraphs (a) and (b) of
 4        this subsection, benefits shall not be  paid  nor  "waiting  week"  credit
 5        given  to  an  individual for wages earned for services for any week which
 6        commences during an established and customary vacation period  or  holiday
 7        recess  if the individual performed the services in the period immediately
 8        before the vacation period or holiday recess, and there  is  a  reasonable
 9        assurance  the individual will perform such services in the period immedi-
10        ately following such vacation period or holiday recess.
11        (d)  With respect to any services described in paragraphs (a) and  (b)  of
12        this subsection, benefits shall not be payable on the basis of services in
13        any capacities specified in paragraphs (a), (b) and (c) of this subsection
14        to  any  individual who performed such services in an educational institu-
15        tion while in the employ of an educational service agency. For purposes of
16        this paragraph the term "educational service agency" means a  governmental
17        entity  which  is  established and operated exclusively for the purpose of
18        providing such services to one (1) or more educational institutions.
19        (18) Benefits shall not be payable on the basis of services which substan-
20    tially consist of participating in sports or athletic events  or  training  or
21    preparing  to  participate,  for  any  week  which commences during the period
22    between two (2) successive sport seasons (or similar periods) if the  individ-
23    ual  performed services in the first season (or similar period) and there is a
24    reasonable assurance that the individual will perform  such  services  in  the
25    later of such season (or similar period).
26        (19) (a) Benefits  shall not be payable on the basis of services performed
27        by an alien unless the alien was lawfully admitted for permanent residence
28        at the time such services were performed, was lawfully  present  for  pur-
29        poses  of  performing  such  services,  or was permanently residing in the
30        United States under color of law at the time the services  were  performed
31        (including  an  alien  who  was lawfully present in the United States as a
32        result of the application of the provisions of sections  207  and  208  or
33        section 212(d)(5) of the immigration and nationality act).
34        (b)  Any data or information required of individuals applying for benefits
35        to determine eligibility under this subsection shall be uniformly required
36        from all applicants for benefits.
37        (c)  A  decision to deny benefits under this subsection must be based on a
38        preponderance of the evidence.
39        (20) An individual who has been determined to be likely to exhaust regular
40    benefits and to need reemployment services  pursuant  to  a  profiling  system
41    established  by  the  director must participate in those reemployment services
42    unless:
43        (a)  The individual has completed such services; or
44        (b)  There is justifiable cause, as determined by the  director,  for  the
45        claimant's failure to participate in such services.
46         (21) (a) A claimant:
47             (i)   Who  has been assigned to work for one (1) or more customers of
48             a staffing service; and
49             (ii)  Who, at the time of hire by  the  staffing  service,  signed  a
50             written  notice  informing  him  that completion or termination of an
51             assignment for a customer would not, of itself, terminate the employ-
52             ment relationship with the staffing service;
53        will not be considered unemployed upon completion  or  termination  of  an
54        assignment  until  such time as he contacts the staffing service to deter-
55        mine if further suitable work is available. If the claimant:


 1                  (A)  Contacts the staffing service and refuses a  suitable  work
 2                  assignment  that is offered to him at that time, he will be con-
 3                  sidered to have voluntarily quit that employment; or
 4                  (B)  Contacts the staffing service and the service does not have
 5                  a suitable work assignment for him, he will be considered  unem-
 6                  ployed due to a lack of work; or
 7                  (C)  Accepts   new   employment  without  first  contacting  the
 8                  staffing service for additional work, he will be  considered  to
 9                  have voluntarily quit employment with the staffing service.
10        (b)  For  the  purposes  of  this  subsection, the term "staffing service"
11        means any person who assigns individuals to work  for  its  customers  and
12        includes,  but  is  not  limited to, professional employers, as defined in
13        chapter 24, title 44, Idaho Code, and the employers of temporary employees
14        as defined in section 44-2403(7), Idaho Code. 

Statement of Purpose / Fiscal Impact

                       STATEMENT OF PURPOSE


Idaho's unemployment insurance program is meant to benefit
individuals who are unemployed through no fault of their own.
Within the unemployment law statutes there are certain
criteria that an unemployed person must meet to be able to
qualify for unemployment benefits. These criterions are not
always applied to past employees of alternative staffing
services. As the stature of the alternative staffing service
industry has developed and emerged over the past several
years, it is essential that Idaho's unemployment law
recognize the industry's past employees as being subject to
the same eligibility standards as all other unemployed

This bill will codify and clarify that past employees of
alternative staffing services are subject to the exact same
eligibility criteria for unemployment benefits as all other
individuals. It will also place a burden on the staffing
service industry to provide written notice to job applicants
that they are obliged to continue to seek work with the
staffing service (their employer) until such time as they
chose to quit voluntarily, are terminated, or no additional
suitable work is available.

                           FISCAL IMPACT

There will be no negative fiscal impact on the General Fund.
The fiscal impact on the Employment Security Fund may be
positive, as it will reduce the number of incidents when
unemployment insurance benefits are paid to individuals who
are not eligible.

Name: Dawn Justice, VP Human Resources
Organization: Idaho Association of Commerce and Industry 
Phone: 343-1849

Statement of Purpose/Fiscal Impact                           S1036