Introduced Version
HOUSE BILL No. 1215
_____
DIGEST OF INTRODUCED BILL
Citations Affected: IC 22-4.
Synopsis: Work sharing unemployment insurance program.
Establishes a work sharing unemployment insurance program
(program). Requires an employer that desires to participate in the
program to submit a work sharing plan for approval by the
commissioner of the department of workforce development. Establishes
the work sharing benefit as equal to an affected employee's
unemployment benefit reduced by a percentage equal to the percentage
of the employee's normal weekly work hours that the employee works
under the approved work sharing plan.
Effective: July 1, 2022.
Hatfield
January 6, 2022, read first time and referred to Committee on Employment, Labor and
Pensions.
2022 IN 1215—LS 6868/DI 141 Introduced
Second Regular Session of the 122nd General Assembly (2022)
PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana
Constitution) is being amended, the text of the existing provision will appear in this style type,
additions will appear in this style type, and deletions will appear in this style type.
Additions: Whenever a new statutory provision is being enacted (or a new constitutional
provision adopted), the text of the new provision will appear in this style type. Also, the
word NEW will appear in that style type in the introductory clause of each SECTION that adds
a new provision to the Indiana Code or the Indiana Constitution.
Conflict reconciliation: Text in a statute in this style type or this style type reconciles conflicts
between statutes enacted by the 2021 Regular Session of the General Assembly.
HOUSE BILL No. 1215
A BILL FOR AN ACT to amend the Indiana Code concerning labor
and safety.
Be it enacted by the General Assembly of the State of Indiana:
1 SECTION 1. IC 22-4-15-1, AS AMENDED BY P.L.224-2017,
2 SECTION 10, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
3 JULY 1, 2022]: Sec. 1. (a) Regarding an individual's most recent
4 separation from employment before filing an initial or additional claim
5 for benefits, an individual who voluntarily left the employment without
6 good cause in connection with the work or was discharged from the
7 employment for just cause is ineligible for waiting period or benefit
8 rights for the week in which the disqualifying separation occurred and
9 until:
10 (1) the individual has earned remuneration in employment in at
11 least eight (8) weeks; and
12 (2) the remuneration earned equals or exceeds the product of the
13 weekly benefit amount multiplied by eight (8).
14 If the qualification amount has not been earned at the expiration of an
15 individual's benefit period, the unearned amount shall be carried
16 forward to an extended benefit period or to the benefit period of a
17 subsequent claim.
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1 (b) When it has been determined that an individual has been
2 separated from employment under disqualifying conditions as outlined
3 in this section, the maximum benefit amount of the individual's current
4 claim, as initially determined, shall be reduced by an amount
5 determined as follows:
6 (1) For the first separation from employment under disqualifying
7 conditions, the maximum benefit amount of the individual's
8 current claim is equal to the result of:
9 (A) the maximum benefit amount of the individual's current
10 claim, as initially determined; multiplied by
11 (B) seventy-five percent (75%);
12 rounded (if not already a multiple of one dollar ($1)) to the next
13 higher dollar.
14 (2) For the second separation from employment under
15 disqualifying conditions, the maximum benefit amount of the
16 individual's current claim is equal to the result of:
17 (A) the maximum benefit amount of the individual's current
18 claim determined under subdivision (1); multiplied by
19 (B) eighty-five percent (85%);
20 rounded (if not already a multiple of one dollar ($1)) to the next
21 higher dollar.
22 (3) For the third and any subsequent separation from employment
23 under disqualifying conditions, the maximum benefit amount of
24 the individual's current claim is equal to the result of:
25 (A) the maximum benefit amount of the individual's current
26 claim determined under subdivision (2); multiplied by
27 (B) ninety percent (90%);
28 rounded (if not already a multiple of one dollar ($1)) to the next
29 higher dollar.
30 (c) The disqualifications provided in this section shall be subject to
31 the following modifications:
32 (1) An individual shall not be subject to disqualification because
33 of separation from the individual's employment if:
34 (A) the individual left to accept with another employer
35 previously secured permanent full-time work which offered
36 reasonable expectation of continued covered employment and
37 betterment of wages or working conditions and thereafter was
38 employed on said job;
39 (B) having been simultaneously employed by two (2)
40 employers, the individual leaves one (1) such employer
41 voluntarily without good cause in connection with the work
42 but remains in employment with the second employer with a
2022 IN 1215—LS 6868/DI 141 3
1 reasonable expectation of continued employment; or
2 (C) the individual left to accept recall made by a base period
3 employer.
4 (2) An individual whose unemployment is the result of medically
5 substantiated physical disability and who is involuntarily
6 unemployed after having made reasonable efforts to maintain the
7 employment relationship shall not be subject to disqualification
8 under this section for such separation.
9 (3) An individual who left work to enter the armed forces of the
10 United States shall not be subject to disqualification under this
11 section for such leaving of work.
12 (4) An individual whose employment is terminated under the
13 compulsory retirement provision of a collective bargaining
14 agreement to which the employer is a party, or under any other
15 plan, system, or program, public or private, providing for
16 compulsory retirement and who is otherwise eligible shall not be
17 deemed to have left the individual's work voluntarily without
18 good cause in connection with the work. However, if such
19 individual subsequently becomes reemployed and thereafter
20 voluntarily leaves work without good cause in connection with the
21 work, the individual shall be deemed ineligible as outlined in this
22 section.
23 (5) An otherwise eligible individual shall not be denied benefits
24 for any week because the individual is in training approved under
25 Section 236(a)(1) of the Trade Act of 1974, nor shall the
26 individual be denied benefits by reason of leaving work to enter
27 such training, provided the work left is not suitable employment,
28 or because of the application to any week in training of provisions
29 in this law (or any applicable federal unemployment
30 compensation law), relating to availability for work, active search
31 for work, or refusal to accept work. For purposes of this
32 subdivision, the term "suitable employment" means with respect
33 to an individual, work of a substantially equal or higher skill level
34 than the individual's past adversely affected employment (as
35 defined for purposes of the Trade Act of 1974), and wages for
36 such work at not less than eighty percent (80%) of the individual's
37 average weekly wage as determined for the purposes of the Trade
38 Act of 1974.
39 (6) An individual is not subject to disqualification because of
40 separation from the individual's employment if:
41 (A) the employment was outside the individual's labor market;
42 (B) the individual left to accept previously secured full-time
2022 IN 1215—LS 6868/DI 141 4
1 work with an employer in the individual's labor market; and
2 (C) the individual actually became employed with the
3 employer in the individual's labor market.
4 (7) An individual who, but for the voluntary separation to move
5 to another labor market to join a spouse who had moved to that
6 labor market, shall not be disqualified for that voluntary
7 separation, if the individual is otherwise eligible for benefits.
8 Benefits paid to the spouse whose eligibility is established under
9 this subdivision shall not be charged against the employer from
10 whom the spouse voluntarily separated.
11 (8) An individual shall not be subject to disqualification if the
12 individual voluntarily left employment or was discharged due to
13 circumstances directly caused by domestic or family violence (as
14 defined in IC 31-9-2-42). An individual who may be entitled to
15 benefits based on this modification may apply to the office of the
16 attorney general under IC 5-26.5 to have an address designated by
17 the office of the attorney general to serve as the individual's
18 address for purposes of this article.
19 (9) An individual who is an affected employee (as defined in
20 IC 22-4-44-2(1)) and is subject to the work sharing
21 unemployment insurance program under IC 22-4-44 is not
22 disqualified for participating in the work sharing
23 unemployment insurance program.
24 As used in this subsection, "labor market" means the area surrounding
25 an individual's permanent residence, outside which the individual
26 cannot reasonably commute on a daily basis. In determining whether
27 an individual can reasonably commute under this subdivision, the
28 department shall consider the nature of the individual's job.
29 (d) "Discharge for just cause" as used in this section is defined to
30 include but not be limited to:
31 (1) separation initiated by an employer for falsification of an
32 employment application to obtain employment through
33 subterfuge;
34 (2) knowing violation of a reasonable and uniformly enforced rule
35 of an employer, including a rule regarding attendance;
36 (3) if an employer does not have a rule regarding attendance, an
37 individual's unsatisfactory attendance, if good cause for absences
38 or tardiness is not established;
39 (4) damaging the employer's property through willful negligence;
40 (5) refusing to obey instructions;
41 (6) reporting to work under the influence of alcohol or drugs or
42 consuming alcohol or drugs on the employer's premises during
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1 working hours;
2 (7) conduct endangering safety of self or coworkers;
3 (8) incarceration in jail following conviction of a misdemeanor or
4 felony by a court of competent jurisdiction;
5 (9) any breach of duty in connection with work which is
6 reasonably owed an employer by an employee; or
7 (10) testing positive on a drug test under IC 16-27-2.5.
8 (e) To verify that domestic or family violence has occurred, an
9 individual who applies for benefits under subsection (c)(8) shall
10 provide one (1) of the following:
11 (1) A report of a law enforcement agency (as defined in
12 IC 10-13-3-10).
13 (2) A protection order issued under IC 34-26-5.
14 (3) A foreign protection order (as defined in IC 34-6-2-48.5).
15 (4) An affidavit from a domestic violence service provider
16 verifying services provided to the individual by the domestic
17 violence service provider.
18 SECTION 2. IC 22-4-44 IS ADDED TO THE INDIANA CODE AS
19 A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE JULY
20 1, 2022]:
21 Chapter 44. Work Sharing Unemployment Insurance Program
22 Sec. 1. This chapter applies after June 30, 2022.
23 Sec. 2. The following definitions apply throughout this chapter:
24 (1) "Affected employee" means an individual who has been
25 continuously on the payroll of an affected unit for at least
26 sixteen (16) months.
27 (2) "Affected unit" means a specific plant, department, shift,
28 or other definable unit of an employing unit:
29 (A) that has at least two (2) employees; and
30 (B) to which an approved work sharing plan applies.
31 (3) "Approved work sharing plan" means a plan that satisfies
32 the purpose set forth in section 3 of this chapter and has the
33 approval of the commissioner.
34 (4) "Intermittent employment" means periodic intervals that
35 are not continuous during which an individual works for an
36 employing unit.
37 (5) "Normal weekly work hours" means the number of hours
38 that a full-time or part-time employee in the affected unit
39 works in a week when the unit is operating on a regular basis.
40 However, the number of hours in a week:
41 (A) may not exceed forty (40) hours; and
42 (B) does not include hours of overtime work.
2022 IN 1215—LS 6868/DI 141 6
1 (6) "Part-time employee" means an individual who works in
2 a position in a week for an employing unit in which the
3 number of scheduled work hours are normally less than the
4 number of scheduled work hours worked by a full-time
5 employee. The term does not include a worker who works in
6 a position that is:
7 (A) seasonal employment (as determined by the
8 department under IC 22-4-7-3(b));
9 (B) temporary employment; or
10 (C) intermittent employment.
11 (7) "Payments in lieu of contributions" has the meaning set
12 forth in IC 22-4-2-32.
13 (8) "Work sharing benefit" means a benefit payable to an
14 affected employee for work performed under an approved
15 work sharing plan, but does not include benefits that are
16 otherwise payable under this article.
17 (9) "Work sharing employer" means an employing unit for
18 which a work sharing plan has been approved.
19 (10) "Work sharing plan" means a plan of an employing unit
20 under which:
21 (A) normal weekly work hours of the affected employees
22 are reduced instead of a layoff of part or all of the affected
23 employees; and
24 (B) the affected employees share the work that remains
25 after the reduction.
26 Sec. 3. The work sharing unemployment insurance program
27 seeks to:
28 (1) preserve the jobs of employees and the workforce of an
29 employer during lowered economic activity by a reduction in
30 work hours or workdays rather than by a layoff of some
31 employees while other employees continue their normal
32 weekly work hours or workdays; and
33 (2) ameliorate the adverse effect of reduction in business
34 activity by providing benefits for the part of the normal
35 weekly work hours or workdays in which an employee does
36 not work.
37 Sec. 4. (a) An employing unit that meets all the following
38 requirements is eligible to participate in the work sharing
39 unemployment insurance program established by this chapter:
40 (1) The employing unit is subject to this article for wages paid
41 during a calendar year.
42 (2) The employing unit's:
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1 (A) contribution rate for the calendar year; or
2 (B) payments in lieu of contributions;
3 are determined under IC 22-4-10, IC 22-4-11, IC 22-4-11.5, or
4 IC 22-4-37-3.
5 (3) The employing unit is not delinquent as determined under
6 IC 22-4-11-2.
7 (4) The employing unit had an experience account with a
8 credit balance on the latest computation date.
9 (b) An employing unit that:
10 (1) meets the eligibility requirements under subsection (a);
11 and
12 (2) wishes to participate in the work sharing unemployment
13 insurance program established by this chapter;
14 shall submit a written work sharing plan to the commissioner.
15 Sec. 5. (a) Not later than fifteen (15) calendar days after receipt
16 of a work sharing plan, the commissioner shall give written
17 approval or disapproval of the work sharing plan to the employing
18 unit.
19 (b) The decision of the commissioner to disapprove a work
20 sharing plan is final and may not be appealed.
21 (c) An employing unit may not submit a new work sharing plan
22 less than fifteen (15) calendar days after the date of the
23 commissioner's disapproval of a work sharing plan in accordance
24 with subsection (a).
25 Sec. 6. The commissioner shall approve a work sharing plan
26 that meets the following requirements:
27 (1) The work sharing plan must apply to the greater of:
28 (A) ten percent (10%) of the employees in an affected unit;
29 or
30 (B) two (2) employees in an affected unit.
31 (2) The normal weekly work hours of the affected employees
32 in the affected unit shall be reduced by at least ten percent
33 (10%), but the reduction may not exceed fifty percent (50%).
34 The reduction in normal weekly work hours must be spread
35 equally among all of the affected employees.
36 Sec. 7. (a) A work sharing plan must:
37 (1) identify the affected unit or units to which the work
38 sharing plan applies;
39 (2) state:
40 (A) the reason or reasons resulting in the reduction in
41 normal weekly work hours under section 6(2) of this
42 chapter;
2022 IN 1215—LS 6868/DI 141 8
1 (B) the expected duration of the reduction in normal
2 weekly work hours under section 6(2) of this chapter; and
3 (C) an estimate of the number of layoffs that will be
4 averted by the employing unit's participation in a work
5 sharing plan;
6 (3) specify the effective date of the work sharing plan;
7 (4) specify an expiration date that is not more than twelve (12)
8 months after the effective date of the work sharing plan;
9 (5) identify each employee in the affected unit by:
10 (A) name;
11 (B) Social Security number;
12 (C) the normal weekly work hours of the employee;
13 (D) the reductions in the number of hours and the amount
14 of wages proposed for the employee by the work sharing
15 plan; and
16 (E) any other information the commissioner requires;
17 (6) specify that the work sharing plan will not affect the fringe
18 benefits of any employee in the affected unit, including:
19 (A) health insurance for hospital, medical, dental, and
20 similar services;
21 (B) retirement benefits under benefit pension plans as
22 defined in the federal Employee Retirement Income
23 Security Act (29 U.S.C. 1001 et seq.);
24 (C) holiday and vacation pay;
25 (D) sick leave; and
26 (E) other similar benefits that are incidents of
27 employment;
28 (7) certify that:
29 (A) each affected employee has been continuously on the
30 payroll of the employing unit for at least sixteen (16)
31 months immediately before the date on which the
32 employing unit submits the work sharing plan;
33 (B) the total reduction in normal weekly work hours is in
34 place of layoffs that would have:
35 (i) affected at least the number of employees estimated in
36 subdivision (2)(C); and
37 (ii) resulted in an equivalent reduction in work hours;
38 and
39 (C) the work sharing plan will not serve as a subsidy of:
40 (i) seasonal employment as determined by the
41 department as a seasonal determination under
42 IC 22-4-7-3(b);
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1 (ii) temporary employment; or
2 (iii) intermittent employment;
3 (8) contain:
4 (A) the written approval of the collective bargaining agent
5 for each collective bargaining agreement that covers any
6 affected employee in the affected unit; or
7 (B) in the absence of a collective bargaining agreement, a
8 certification by the employing unit that the proposed work
9 sharing plan, or a summary of the work sharing plan, has
10 been made available to each affected employee in the
11 affected unit; and
12 (9) include the employing unit's attestation that participation
13 in a work sharing plan is consistent with the employing unit's
14 obligations under applicable federal and state laws.
15 (b) A work sharing plan may include an option that allows an
16 affected employee to attend work related training or retraining to
17 enhance job skills (including employing unit sponsored training or
18 worker training funded under the federal Workforce Innovation
19 and Opportunity Act of 2014 (29 U.S.C. 3101 et seq.)) during the
20 affected employee's work hours. The commissioner shall approve
21 the training or retraining offered under this subsection.
22 Sec. 8. A work sharing employer shall agree to:
23 (1) submit reports that are necessary to administer the
24 approved work sharing plan; and
25 (2) allow the department to have access to all records
26 necessary to:
27 (A) verify the work sharing plan before its approval; and
28 (B) monitor and evaluate the application of the approved
29 work sharing plan.
30 Sec. 9. (a) An approved work sharing plan may be modified if:
31 (1) the work sharing employer notifies the commissioner in
32 writing not later than fifteen (15) calendar days after the date
33 the modification is made whenever the modification is not
34 substantial; or
35 (2) whenever the modification is substantial:
36 (A) the modification meets the requirements for approval
37 under section 6 of this chapter; and
38 (B) the commissioner approves the modification.
39 If the commissioner determines that a modification reported under
40 subdivision (1) is substantial, the commissioner shall notify the
41 work sharing employer of the commissioner's determination and
42 require the work sharing employer to request approval of the
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1 modification under subdivision (2).
2 (b) The commissioner shall not approve a modification of a
3 work sharing plan that extends the expiration date of the work
4 sharing plan.
5 (c) The decision of the commissioner to disapprove a
6 modification to a work sharing plan is final and may not be
7 appealed.
8 Sec. 10. (a) An affected employee is eligible under this chapter
9 to receive work sharing benefits for each week in which the
10 commissioner determines that the affected employee is:
11 (1) able to work; and
12 (2) available for more hours of work for the work sharing
13 employer.
14 (b) An affected employee who is otherwise eligible may not be
15 denied work sharing benefits for lack of effort to secure full-time
16 work as set forth in IC 22-4-14-3 or for failure to apply for
17 available, suitable work as set forth in IC 22-4-15-2 from a person
18 other than the work sharing employer.
19 (c) An affected employee shall apply for benefits in accordance
20 with IC 22-4-17-1.
21 (d) An affected employee who is otherwise eligible for benefits
22 is:
23 (1) considered to be unemployed for the purpose of the work
24 sharing unemployment insurance program; and
25 (2) not subject to the requirements of IC 22-4-14-2.
26 Sec. 11. The unemployment compensation weekly work sharing
27 benefit due to an affected employee is determined in STEP FIVE
28 of the following formula:
29 STEP ONE: Determine the weekly benefit amount that would
30 be due to the employee under IC 22-4-12-4.
31 STEP TWO: Subtract the number of the employee's work
32 hours under the approved work sharing plan from the
33 number of the employee's normal weekly work hours.
34 STEP THREE: Divide the STEP TWO result by the number
35 of the employee's normal weekly work hours.
36 STEP FOUR: Multiply the number determined in STEP ONE
37 by the quotient determined in STEP THREE.
38 STEP FIVE: If the product determined under STEP FOUR is
39 not a multiple of one dollar ($1), round down to the nearest
40 lower multiple of one dollar ($1).
41 Sec. 12. (a) An affected employee may not receive more than
42 fifty-two (52) weeks of work sharing benefits during each benefit
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1 period.
2 (b) The total amount of benefits payable under IC 22-4-12-4 and
3 work sharing benefits payable under this chapter may not exceed
4 the total amount of benefits payable for the benefit period under
5 IC 22-4-12-4(a).
6 Sec. 13. During a week in which an affected employee who
7 otherwise is eligible for benefits does not work for the work
8 sharing employer:
9 (1) the individual shall be paid unemployment insurance
10 benefits in accordance with IC 22-4-12; and
11 (2) the week does not count as a week for which a work
12 sharing benefit is received.
13 Sec. 14. During a week in which an affected employee works for
14 a work sharing employer under an approved work sharing plan
15 and also for another employer, the work sharing benefit is
16 determined under section 11 of this chapter by subtracting (in
17 STEP TWO) the combined hours worked for the work sharing
18 employer and the other employer from the affected employee's
19 normal weekly work hours.
20 Sec. 15. Work sharing benefits shall be charged to the work
21 sharing employer's experience balance in the same manner as
22 unemployment insurance is charged under this article. Employers
23 liable for payments in lieu of contributions shall have work sharing
24 benefits attributed to service in their employ in the same manner
25 as unemployment insurance is attributed under this article.
26 However, during a period in which the federal government
27 reimburses the state for work sharing benefits, the state may not:
28 (1) charge an employer's experience account; or
29 (2) require payments in lieu of contributions;
30 for work sharing benefits paid under this article.
31 Sec. 16. (a) The commissioner may revoke approval of an
32 approved work sharing plan for good cause, including:
33 (1) conduct or an occurrence that tends to defeat the intent
34 and effective operation of the approved work sharing plan;
35 (2) failure to comply with an assurance in the approved work
36 sharing plan;
37 (3) unreasonable revision of a productivity standard of the
38 affected unit;
39 (4) violation of a criterion on which the commissioner based
40 the approval of the work sharing plan; or
41 (5) failure of the employing unit to comply with the eligibility
42 requirements under section 4(a) of this chapter for
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1 participation in the work sharing unemployment insurance
2 program.
3 (b) A work sharing employer may terminate an approved work
4 sharing plan at any time by notifying the following at least fifteen
5 (15) calendar days before the termination of the plan:
6 (1) The commissioner.
7 (2) One (1) of the following:
8 (A) The collective bargaining agent for each collective
9 bargaining agreement that covers any affected employee
10 in the affected unit.
11 (B) In the absence of a collective bargaining agreement,
12 each affected employee in the affected unit.
13 (c) An affected employee in an affected unit or the collective
14 bargaining agent representing an affected employee in an affected
15 unit may request that the commissioner take action to revoke the
16 approval of an approved work sharing plan.
17 (d) The commissioner shall give written notice of a revocation
18 to the work sharing employer specifying:
19 (1) the date the revocation is effective; and
20 (2) the reason or reasons for the revocation.
21 (e) The commissioner's decision to revoke approval of an
22 approved work sharing plan is final and may not be appealed.
23 (f) The department shall review the operation of an approved
24 work sharing plan at least once during the period that the
25 approved work sharing plan is in effect to ensure that the work
26 sharing employer is complying with the requirements of the
27 approved work sharing plan.
28 Sec. 17. The department may adopt and enforce rules under
29 IC 4-22-2 that are necessary to carry out this chapter in
30 accordance with IC 22-4-19-1.
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