Indiana 2023 Regular Session

Indiana Senate Bill SB0347 Compare Versions

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1-*SB0347.1*
2-February 10, 2023
1+
2+Introduced Version
33 SENATE BILL No. 347
44 _____
5-DIGEST OF SB 347 (Updated February 8, 2023 10:27 am - DI 144)
5+DIGEST OF INTRODUCED BILL
66 Citations Affected: IC 22-4.
77 Synopsis: Work sharing unemployment benefits program. Establishes
88 a work sharing unemployment insurance program (program). Requires
99 an employer that desires to participate in the program to submit a work
1010 sharing plan for approval by the commissioner of the department of
1111 workforce development. Establishes the work sharing benefit as equal
1212 to an affected employee's unemployment benefit reduced by a
1313 percentage equal to the percentage of the employee's normal weekly
1414 work hours that the employee works under the approved work sharing
1515 plan. Makes a technical correction.
1616 Effective: July 1, 2023.
17-Bassler, Niezgodski, Buchanan,
18-Walker K, Yoder, Perfect, Dernulc,
19-Randolph Lonnie M
17+Bassler
2018 January 12, 2023, read first time and referred to Committee on Pensions and Labor.
21-February 9, 2023, amended, reported favorably — Do Pass; reassigned to Committee on
22-Appropriations.
23-SB 347—LS 6392/DI 141 February 10, 2023
19+2023 IN 347—LS 6392/DI 141 Introduced
2420 First Regular Session of the 123rd General Assembly (2023)
2521 PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana
2622 Constitution) is being amended, the text of the existing provision will appear in this style type,
2723 additions will appear in this style type, and deletions will appear in this style type.
2824 Additions: Whenever a new statutory provision is being enacted (or a new constitutional
2925 provision adopted), the text of the new provision will appear in this style type. Also, the
3026 word NEW will appear in that style type in the introductory clause of each SECTION that adds
3127 a new provision to the Indiana Code or the Indiana Constitution.
3228 Conflict reconciliation: Text in a statute in this style type or this style type reconciles conflicts
3329 between statutes enacted by the 2022 Regular Session of the General Assembly.
3430 SENATE BILL No. 347
3531 A BILL FOR AN ACT to amend the Indiana Code concerning labor
3632 and safety.
3733 Be it enacted by the General Assembly of the State of Indiana:
3834 1 SECTION 1. IC 22-4-15-1, AS AMENDED BY P.L.1-2022,
3935 2 SECTION 8, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
4036 3 JULY 1, 2023]: Sec. 1. (a) Regarding an individual's most recent
4137 4 separation from employment before filing an initial or additional claim
4238 5 for benefits, an individual who voluntarily left the employment without
4339 6 good cause in connection with the work or was discharged from the
4440 7 employment for just cause is ineligible for waiting period or benefit
4541 8 rights for the week in which the disqualifying separation occurred and
4642 9 until:
4743 10 (1) the individual has earned remuneration in employment in at
4844 11 least eight (8) weeks; and
4945 12 (2) the remuneration earned equals or exceeds the product of the
5046 13 weekly benefit amount multiplied by eight (8).
5147 14 If the qualification amount has not been earned at the expiration of an
5248 15 individual's benefit period, the unearned amount shall be carried
5349 16 forward to an extended benefit period or to the benefit period of a
5450 17 subsequent claim.
55-SB 347—LS 6392/DI 141 2
51+2023 IN 347—LS 6392/DI 141 2
5652 1 (b) When it has been determined that an individual has been
5753 2 separated from employment under disqualifying conditions as outlined
5854 3 in this section, the maximum benefit amount of the individual's current
5955 4 claim, as initially determined, shall be reduced by an amount
6056 5 determined as follows:
6157 6 (1) For the first separation from employment under disqualifying
6258 7 conditions, the maximum benefit amount of the individual's
6359 8 current claim is equal to the result of:
6460 9 (A) the maximum benefit amount of the individual's current
6561 10 claim, as initially determined; multiplied by
6662 11 (B) seventy-five percent (75%);
6763 12 rounded (if not already a multiple of one dollar ($1)) to the next
6864 13 higher dollar.
6965 14 (2) For the second separation from employment under
7066 15 disqualifying conditions, the maximum benefit amount of the
7167 16 individual's current claim is equal to the result of:
7268 17 (A) the maximum benefit amount of the individual's current
7369 18 claim determined under subdivision (1); multiplied by
7470 19 (B) eighty-five percent (85%);
7571 20 rounded (if not already a multiple of one dollar ($1)) to the next
7672 21 higher dollar.
7773 22 (3) For the third and any subsequent separation from employment
7874 23 under disqualifying conditions, the maximum benefit amount of
7975 24 the individual's current claim is equal to the result of:
8076 25 (A) the maximum benefit amount of the individual's current
8177 26 claim determined under subdivision (2); multiplied by
8278 27 (B) ninety percent (90%);
8379 28 rounded (if not already a multiple of one dollar ($1)) to the next
8480 29 higher dollar.
8581 30 (c) The disqualifications provided in this section shall be subject to
8682 31 the following modifications:
8783 32 (1) An individual shall not be subject to disqualification because
8884 33 of separation from the individual's employment if:
8985 34 (A) the individual left to accept with another employer
9086 35 previously secured permanent full-time work which offered
9187 36 reasonable expectation of continued covered employment and
9288 37 betterment of wages or working conditions and thereafter was
9389 38 employed on said job;
9490 39 (B) having been simultaneously employed by two (2)
9591 40 employers, the individual leaves one (1) such employer
9692 41 voluntarily without good cause in connection with the work
9793 42 but remains in employment with the second employer with a
98-SB 347—LS 6392/DI 141 3
94+2023 IN 347—LS 6392/DI 141 3
9995 1 reasonable expectation of continued employment; or
10096 2 (C) the individual left to accept recall made by a base period
10197 3 employer.
10298 4 (2) An individual whose unemployment is the result of medically
10399 5 substantiated physical disability and who is involuntarily
104100 6 unemployed after having made reasonable efforts to maintain the
105101 7 employment relationship shall not be subject to disqualification
106102 8 under this section for such separation.
107103 9 (3) An individual who left work to enter the armed forces of the
108104 10 United States shall not be subject to disqualification under this
109105 11 section for such leaving of work.
110106 12 (4) An individual whose employment is terminated under the
111107 13 compulsory retirement provision of a collective bargaining
112108 14 agreement to which the employer is a party, or under any other
113109 15 plan, system, or program, public or private, providing for
114110 16 compulsory retirement and who is otherwise eligible shall not be
115111 17 deemed to have left the individual's work voluntarily without
116112 18 good cause in connection with the work. However, if such
117113 19 individual subsequently becomes reemployed and thereafter
118114 20 voluntarily leaves work without good cause in connection with the
119115 21 work, the individual shall be deemed ineligible as outlined in this
120116 22 section.
121117 23 (5) An otherwise eligible individual shall not be denied benefits
122118 24 for any week because the individual is in training approved under
123119 25 Section 236(a)(1) of the Trade Act of 1974, nor shall the
124120 26 individual be denied benefits by reason of leaving work to enter
125121 27 such training, provided the work left is not suitable employment,
126122 28 or because of the application to any week in training of provisions
127123 29 in this law (or any applicable federal unemployment
128124 30 compensation law), relating to availability for work, active search
129125 31 for work, or refusal to accept work. For purposes of this
130126 32 subdivision, the term "suitable employment" means with respect
131127 33 to an individual, work of a substantially equal or higher skill level
132128 34 than the individual's past adversely affected employment (as
133129 35 defined for purposes of the Trade Act of 1974), and wages for
134130 36 such work at not less than eighty percent (80%) of the individual's
135131 37 average weekly wage as determined for the purposes of the Trade
136132 38 Act of 1974.
137133 39 (6) An individual is not subject to disqualification because of
138134 40 separation from the individual's employment if:
139135 41 (A) the employment was outside the individual's labor market;
140136 42 (B) the individual left to accept previously secured full-time
141-SB 347—LS 6392/DI 141 4
137+2023 IN 347—LS 6392/DI 141 4
142138 1 work with an employer in the individual's labor market; and
143139 2 (C) the individual actually became employed with the
144140 3 employer in the individual's labor market.
145141 4 (7) An individual who, but for the voluntary separation to move
146142 5 to another labor market to join a spouse who had moved to that
147143 6 labor market, shall not be disqualified for that voluntary
148144 7 separation, if the individual is otherwise eligible for benefits.
149145 8 Benefits paid to the spouse whose eligibility is established under
150146 9 this subdivision shall not be charged against the employer from
151147 10 whom the spouse voluntarily separated.
152148 11 (8) An individual shall not be subject to disqualification if the
153149 12 individual voluntarily left employment or was discharged due to
154150 13 circumstances directly caused by domestic or family violence (as
155151 14 defined in IC 31-9-2-42). An individual who may be entitled to
156152 15 benefits based on this modification may apply to the office of the
157153 16 attorney general under IC 5-26.5 to have an address designated by
158154 17 the office of the attorney general to serve as the individual's
159155 18 address for purposes of this article.
160156 19 (9) An individual shall not be subject to disqualification if the
161157 20 individual:
162158 21 (A) has requested an exemption from an employer's
163159 22 COVID-19 immunization requirement;
164160 23 (B) has complied with the requirements set forth in
165161 24 IC 22-5-4.6; and
166162 25 (C) was discharged from employment for failing or refusing to
167163 26 receive an immunization against COVID-19.
168164 27 (10) An individual who is an affected employee (as defined in
169165 28 IC 22-4-44-2(1)) and is subject to the work sharing
170166 29 unemployment insurance program under IC 22-4-44 is not
171167 30 subject to disqualification for participating in the work
172168 31 sharing unemployment insurance program.
173169 32 As used in this subsection, "labor market" means the area surrounding
174170 33 an individual's permanent residence, outside which the individual
175171 34 cannot reasonably commute on a daily basis. In determining whether
176172 35 an individual can reasonably commute under this subdivision, the
177173 36 department shall consider the nature of the individual's job.
178174 37 (d) "Discharge for just cause" as used in this section is defined to
179175 38 include but not be limited to:
180176 39 (1) separation initiated by an employer for falsification of an
181177 40 employment application to obtain employment through
182178 41 subterfuge;
183179 42 (2) knowing violation of a reasonable and uniformly enforced rule
184-SB 347—LS 6392/DI 141 5
180+2023 IN 347—LS 6392/DI 141 5
185181 1 of an employer, including a rule regarding attendance;
186182 2 (3) if an employer does not have a rule regarding attendance, an
187183 3 individual's unsatisfactory attendance, if good cause for absences
188184 4 or tardiness is not established;
189185 5 (4) damaging the employer's property through willful negligence;
190186 6 (5) refusing to obey instructions;
191187 7 (6) reporting to work under the influence of alcohol or drugs or
192188 8 consuming alcohol or drugs on the employer's premises during
193189 9 working hours;
194190 10 (7) conduct endangering safety of self or coworkers;
195191 11 (8) incarceration in jail following conviction of a misdemeanor or
196192 12 felony by a court of competent jurisdiction;
197193 13 (9) any breach of duty in connection with work which is
198194 14 reasonably owed an employer by an employee; or
199195 15 (10) testing positive on a drug test under IC 16-27-2.5.
200196 16 (e) To verify that domestic or family violence has occurred, an
201197 17 individual who applies for benefits under subsection (c)(8) shall
202198 18 provide one (1) of the following:
203199 19 (1) A report of a law enforcement agency (as defined in
204200 20 IC 10-13-3-10).
205201 21 (2) A protection order issued under IC 34-26-5.
206202 22 (3) A foreign protection order (as defined in IC 34-6-2-48.5).
207203 23 (4) An affidavit from a domestic violence service provider
208204 24 verifying services provided to the individual by the domestic
209205 25 violence service provider.
210206 26 SECTION 2. IC 22-4-44 IS ADDED TO THE INDIANA CODE AS
211207 27 A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE JULY
212208 28 1, 2023]:
213209 29 Chapter 44. Work Sharing Unemployment Insurance Program
214210 30 Sec. 1. This chapter applies after June 30, 2023.
215211 31 Sec. 2. The following definitions apply throughout this chapter:
216212 32 (1) "Affected employee" means an individual who has been
217213 33 continuously on the payroll of an affected unit for at least
218214 34 sixteen (16) months.
219215 35 (2) "Affected unit" means a specific plant, department, shift,
220216 36 or other definable unit of an employing unit:
221217 37 (A) that has at least two (2) employees; and
222218 38 (B) to which an approved work sharing plan applies.
223219 39 (3) "Approved work sharing plan" means a plan that satisfies
224220 40 the purpose set forth in section 3 of this chapter and has the
225221 41 approval of the commissioner.
226-42 (4) "Fringe benefits" means:
227-SB 347—LS 6392/DI 141 6
228-1 (A) health insurance for hospital, medical, dental, and
229-2 similar services;
230-3 (B) retirement benefits under benefit pension plans as
231-4 defined in the federal Employee Retirement Income
232-5 Security Act (29 U.S.C. 1001 et seq.);
233-6 (C) holiday and vacation pay;
234-7 (D) sick leave; and
235-8 (E) other similar benefits that are incidents of employment.
236-9 (5) "Intermittent employment" means periodic intervals that
237-10 are not continuous during which an individual works for an
238-11 employing unit.
239-12 (6) "Normal weekly work hours" means the number of hours
240-13 that a full-time or part-time employee in the affected unit
241-14 works in a week when the unit is operating on a regular basis.
242-15 However, the number of hours in a week:
243-16 (A) may not exceed forty (40) hours; and
244-17 (B) does not include hours of overtime work.
245-18 (7) "Part-time employee" means an individual who works in
246-19 a position in a week for an employing unit in which the
247-20 number of scheduled work hours are normally less than the
248-21 number of scheduled work hours worked by a full-time
249-22 employee. The term does not include a worker who works in
250-23 a position that is:
251-24 (A) seasonal employment (as determined by the
252-25 department under IC 22-4-7-3(b));
253-26 (B) temporary employment; or
254-27 (C) intermittent employment.
255-28 (8) "Payments in lieu of contributions" has the meaning set
256-29 forth in IC 22-4-2-32.
257-30 (9) "Work sharing benefit" means a benefit payable to an
258-31 affected employee for work performed under an approved
259-32 work sharing plan, but does not include benefits that are
260-33 otherwise payable under this article.
261-34 (10) "Work sharing employer" means an employing unit for
262-35 which a work sharing plan has been approved.
263-36 (11) "Work sharing plan" means a plan of an employing unit
264-37 under which:
265-38 (A) normal weekly work hours of the affected employees
266-39 are reduced instead of a layoff of part or all of the affected
267-40 employees; and
268-41 (B) the affected employees share the work that remains
269-42 after the reduction.
270-SB 347—LS 6392/DI 141 7
271-1 Sec. 3. The work sharing unemployment insurance program
272-2 seeks to:
273-3 (1) preserve the jobs of employees and the workforce of an
274-4 employer during lowered economic activity by a reduction in
275-5 work hours or work days rather than by a layoff of some
276-6 employees while other employees continue their normal
277-7 weekly work hours or work days; and
278-8 (2) ameliorate the adverse effect of reduction in business
279-9 activity by providing benefits for the part of the normal
280-10 weekly work hours or work days in which an employee does
281-11 not work.
282-12 Sec. 4. (a) An employing unit that meets all the following
283-13 requirements is eligible to participate in the work sharing
284-14 unemployment insurance program established by this chapter:
285-15 (1) The employing unit is subject to this article for wages paid
286-16 during a calendar year.
287-17 (2) The employing unit's:
288-18 (A) contribution rate for the calendar year; or
289-19 (B) payments in lieu of contributions;
290-20 are determined under IC 22-4-10, IC 22-4-11, IC 22-4-11.5, or
291-21 IC 22-4-37-3.
292-22 (3) The employing unit is not delinquent as determined under
293-23 IC 22-4-11-2.
294-24 (4) The employing unit had an experience account with a
295-25 credit balance on the latest computation date.
296-26 (b) An employing unit that:
297-27 (1) meets the eligibility requirements under subsection (a);
298-28 and
299-29 (2) wishes to participate in the work sharing unemployment
300-30 insurance program established by this chapter;
301-31 shall submit a written work sharing plan to the commissioner.
302-32 Sec. 5. (a) Not later than fifteen (15) calendar days after receipt
303-33 of a work sharing plan, the commissioner shall give written
304-34 approval or disapproval of the work sharing plan to the employing
305-35 unit.
306-36 (b) The decision of the commissioner to disapprove a work
307-37 sharing plan is final and may not be appealed.
308-38 (c) An employing unit may not submit a new work sharing plan
309-39 less than fifteen (15) calendar days after the date of the
310-40 commissioner's disapproval of a work sharing plan in accordance
311-41 with subsection (a).
312-42 Sec. 6. The commissioner shall approve a work sharing plan
313-SB 347—LS 6392/DI 141 8
314-1 that meets the following requirements:
315-2 (1) The work sharing plan must apply to the greater of:
316-3 (A) ten percent (10%) of the employees in an affected unit;
317-4 or
318-5 (B) two (2) employees in an affected unit.
319-6 (2) The normal weekly work hours of the affected employees
320-7 in the affected unit shall be reduced by at least ten percent
321-8 (10%), but the reduction may not exceed fifty percent (50%).
322-9 The reduction in normal weekly work hours must be spread
323-10 equally among all of the affected employees.
324-11 Sec. 7. (a) A work sharing plan must:
325-12 (1) identify the affected unit or units to which the work
326-13 sharing plan applies;
327-14 (2) state:
328-15 (A) the reason or reasons resulting in the reduction in
329-16 normal weekly work hours under section 6(2) of this
330-17 chapter;
331-18 (B) the expected duration of the reduction in normal
332-19 weekly work hours under section 6(2) of this chapter; and
333-20 (C) an estimate of the number of layoffs that will be
334-21 averted by the employing unit's participation in a work
335-22 sharing plan;
336-23 (3) specify the effective date of the work sharing plan;
337-24 (4) specify an expiration date that is not more than twelve (12)
338-25 months after the effective date of the work sharing plan;
339-26 (5) identify each employee in the affected unit by:
340-27 (A) name;
341-28 (B) Social Security number;
342-29 (C) the normal weekly work hours of the employee;
343-30 (D) the reductions in the number of hours and the amount
344-31 of wages proposed for the employee by the work sharing
345-32 plan; and
346-33 (E) any other information the commissioner requires;
347-34 (6) specify that fringe benefits will continue to be provided to
348-35 an affected employee:
349-36 (A) who remains on the payroll of an affected unit;
350-37 (B) during the period that the work sharing plan is in
351-38 effect; and
352-39 (C) as though the normal weekly work hours of the
353-40 affected employee had not been reduced;
354-41 (7) certify that:
355-42 (A) each affected employee has been continuously on the
356-SB 347—LS 6392/DI 141 9
357-1 payroll of the employing unit for at least sixteen (16)
358-2 months immediately before the date on which the
359-3 employing unit submits the work sharing plan;
360-4 (B) the total reduction in normal weekly work hours is in
361-5 place of layoffs that would have:
362-6 (i) affected at least the number of employees estimated in
363-7 subdivision (2)(C); and
364-8 (ii) resulted in an equivalent reduction in work hours;
365-9 and
366-10 (C) the work sharing plan will not serve as a subsidy of:
367-11 (i) seasonal employment as determined by the
368-12 department as a seasonal determination under
369-13 IC 22-4-7-3(b);
370-14 (ii) temporary employment; or
371-15 (iii) intermittent employment;
372-16 (8) contain:
373-17 (A) the written approval of the collective bargaining agent
374-18 for each collective bargaining agreement that covers any
375-19 affected employee in the affected unit; or
376-20 (B) in the absence of a collective bargaining agreement, a
377-21 certification by the employing unit that the proposed work
378-22 sharing plan, or a summary of the work sharing plan, has
379-23 been made available to each affected employee in the
380-24 affected unit; and
381-25 (9) include the employing unit's attestation that participation
382-26 in a work sharing plan is consistent with the employing unit's
383-27 obligations under applicable federal and state laws.
384-28 (b) A work sharing plan may include an option that allows an
385-29 affected employee to attend work related training or retraining to
386-30 enhance job skills (including employing unit sponsored training or
387-31 worker training funded under the federal Workforce Innovation
388-32 and Opportunity Act of 2014 (29 U.S.C. 3101 et seq.)) during the
389-33 affected employee's work hours. The commissioner shall approve
390-34 the training or retraining offered under this subsection.
391-35 (c) Subsection (a)(6) does not preclude an employing unit from
392-36 modifying fringe benefits if the modification of fringe benefits
393-37 applies to the same extent for both:
394-38 (1) affected employees; and
395-39 (2) employees who are not participating in the work sharing
396-40 plan.
397-41 Sec. 8. A work sharing employer shall agree to:
398-42 (1) submit reports that are necessary to administer the
399-SB 347—LS 6392/DI 141 10
400-1 approved work sharing plan; and
401-2 (2) allow the department to have access to all records
402-3 necessary to:
403-4 (A) verify the work sharing plan before its approval; and
404-5 (B) monitor and evaluate the application of the approved
405-6 work sharing plan.
406-7 Sec. 9. (a) An approved work sharing plan may be modified if:
407-8 (1) the work sharing employer notifies the commissioner in
408-9 writing not later than fifteen (15) calendar days after the date
409-10 the modification is made whenever the modification is not
410-11 substantial; or
411-12 (2) whenever the modification is substantial:
412-13 (A) the modification meets the requirements for approval
413-14 under section 6 of this chapter; and
414-15 (B) the commissioner approves the modification.
415-16 If the commissioner determines that a modification reported under
416-17 subdivision (1) is substantial, the commissioner shall notify the
417-18 work sharing employer of the commissioner's determination and
418-19 require the work sharing employer to request approval of the
419-20 modification under subdivision (2).
420-21 (b) The commissioner shall not approve a modification of a
421-22 work sharing plan that extends the expiration date of the work
422-23 sharing plan.
423-24 (c) The decision of the commissioner to disapprove a
424-25 modification to a work sharing plan is final and may not be
425-26 appealed.
426-27 Sec. 10. (a) An affected employee is eligible under this chapter
427-28 to receive work sharing benefits for each week in which the
428-29 commissioner determines that the affected employee is:
429-30 (1) able to work; and
430-31 (2) available for more hours of work for the work sharing
431-32 employer.
432-33 (b) An affected employee who otherwise is eligible may not be
433-34 denied work sharing benefits for lack of effort to secure full-time
434-35 work as set forth in IC 22-4-14-3 or for failure to apply for
435-36 available, suitable work as set forth in IC 22-4-15-2 from a person
436-37 other than the work sharing employer.
437-38 (c) An affected employee shall apply for benefits in accordance
438-39 with IC 22-4-17-1.
439-40 (d) An affected employee who otherwise is eligible for benefits
440-41 is:
441-42 (1) considered to be unemployed for the purpose of the work
442-SB 347—LS 6392/DI 141 11
443-1 sharing unemployment insurance program; and
444-2 (2) not subject to the requirements of IC 22-4-14-2.
445-3 Sec. 11. The unemployment compensation weekly work sharing
446-4 benefit due to an affected employee is determined in STEP FIVE
447-5 of the following formula:
448-6 STEP ONE: Determine the weekly benefit amount that would
449-7 be due to the employee under IC 22-4-12-4.
450-8 STEP TWO: Subtract the number of the employee's work
451-9 hours under the approved work sharing plan from the
452-10 number of the employee's normal weekly work hours.
453-11 STEP THREE: Divide the STEP TWO result by the number
454-12 of the employee's normal weekly work hours.
455-13 STEP FOUR: Multiply the number determined in STEP ONE
456-14 by the quotient determined in STEP THREE.
457-15 STEP FIVE: If the product determined under STEP FOUR is
458-16 not a multiple of one dollar ($1), round down to the nearest
459-17 lower multiple of one dollar ($1).
460-18 Sec. 12. (a) An affected employee may not receive more than
461-19 fifty-two (52) weeks of work sharing benefits during each benefit
462-20 period.
463-21 (b) The total amount of benefits payable under IC 22-4-12-4 and
464-22 work sharing benefits payable under this chapter may not exceed
465-23 the total amount of benefits payable for the benefit period under
466-24 IC 22-4-12-4(a).
467-25 Sec. 13. During a week in which an affected employee who
468-26 otherwise is eligible for benefits does not work for the work
469-27 sharing employer:
470-28 (1) the individual shall be paid unemployment insurance
471-29 benefits in accordance with IC 22-4-12; and
472-30 (2) the week does not count as a week for which a work
473-31 sharing benefit is received.
474-32 Sec. 14. During a week in which an affected employee works for
475-33 a work sharing employer under an approved work sharing plan
476-34 and also for another employer, the work sharing benefit is
477-35 determined under section 11 of this chapter by subtracting (in
478-36 STEP TWO) the combined hours worked for the work sharing
479-37 employer and the other employer from the affected employee's
480-38 normal weekly work hours.
481-39 Sec. 15. Work sharing benefits shall be charged to the work
482-40 sharing employer's experience balance in the same manner as
483-41 unemployment insurance is charged under this article. Employers
484-42 liable for payments in lieu of contributions shall have work sharing
485-SB 347—LS 6392/DI 141 12
486-1 benefits attributed to service in their employ in the same manner
487-2 as unemployment insurance is attributed under this article.
488-3 However, during a period in which the federal government
489-4 reimburses the state for work sharing benefits, the state may not:
490-5 (1) charge an employer's experience account; or
491-6 (2) require payments in lieu of contributions;
492-7 for work sharing benefits paid under this article.
493-8 Sec. 16. (a) The commissioner may revoke approval of an
494-9 approved work sharing plan for good cause, including:
495-10 (1) conduct or an occurrence that tends to defeat the intent
496-11 and effective operation of the approved work sharing plan;
497-12 (2) failure to comply with an assurance in the approved work
222+42 (4) "Intermittent employment" means periodic intervals that
223+2023 IN 347—LS 6392/DI 141 6
224+1 are not continuous during which an individual works for an
225+2 employing unit.
226+3 (5) "Normal weekly work hours" means the number of hours
227+4 that a full-time or part-time employee in the affected unit
228+5 works in a week when the unit is operating on a regular basis.
229+6 However, the number of hours in a week:
230+7 (A) may not exceed forty (40) hours; and
231+8 (B) does not include hours of overtime work.
232+9 (6) "Part-time employee" means an individual who works in
233+10 a position in a week for an employing unit in which the
234+11 number of scheduled work hours are normally less than the
235+12 number of scheduled work hours worked by a full-time
236+13 employee. The term does not include a worker who works in
237+14 a position that is:
238+15 (A) seasonal employment (as determined by the
239+16 department under IC 22-4-7-3(b));
240+17 (B) temporary employment; or
241+18 (C) intermittent employment.
242+19 (7) "Payments in lieu of contributions" has the meaning set
243+20 forth in IC 22-4-2-32.
244+21 (8) "Work sharing benefit" means a benefit payable to an
245+22 affected employee for work performed under an approved
246+23 work sharing plan, but does not include benefits that are
247+24 otherwise payable under this article.
248+25 (9) "Work sharing employer" means an employing unit for
249+26 which a work sharing plan has been approved.
250+27 (10) "Work sharing plan" means a plan of an employing unit
251+28 under which:
252+29 (A) normal weekly work hours of the affected employees
253+30 are reduced instead of a layoff of part or all of the affected
254+31 employees; and
255+32 (B) the affected employees share the work that remains
256+33 after the reduction.
257+34 Sec. 3. The work sharing unemployment insurance program
258+35 seeks to:
259+36 (1) preserve the jobs of employees and the workforce of an
260+37 employer during lowered economic activity by a reduction in
261+38 work hours or work days rather than by a layoff of some
262+39 employees while other employees continue their normal
263+40 weekly work hours or work days; and
264+41 (2) ameliorate the adverse effect of reduction in business
265+42 activity by providing benefits for the part of the normal
266+2023 IN 347—LS 6392/DI 141 7
267+1 weekly work hours or work days in which an employee does
268+2 not work.
269+3 Sec. 4. (a) An employing unit that meets all the following
270+4 requirements is eligible to participate in the work sharing
271+5 unemployment insurance program established by this chapter:
272+6 (1) The employing unit is subject to this article for wages paid
273+7 during a calendar year.
274+8 (2) The employing unit's:
275+9 (A) contribution rate for the calendar year; or
276+10 (B) payments in lieu of contributions;
277+11 are determined under IC 22-4-10, IC 22-4-11, IC 22-4-11.5, or
278+12 IC 22-4-37-3.
279+13 (3) The employing unit is not delinquent as determined under
280+14 IC 22-4-11-2.
281+15 (4) The employing unit had an experience account with a
282+16 credit balance on the latest computation date.
283+17 (b) An employing unit that:
284+18 (1) meets the eligibility requirements under subsection (a);
285+19 and
286+20 (2) wishes to participate in the work sharing unemployment
287+21 insurance program established by this chapter;
288+22 shall submit a written work sharing plan to the commissioner.
289+23 Sec. 5. (a) Not later than fifteen (15) calendar days after receipt
290+24 of a work sharing plan, the commissioner shall give written
291+25 approval or disapproval of the work sharing plan to the employing
292+26 unit.
293+27 (b) The decision of the commissioner to disapprove a work
294+28 sharing plan is final and may not be appealed.
295+29 (c) An employing unit may not submit a new work sharing plan
296+30 less than fifteen (15) calendar days after the date of the
297+31 commissioner's disapproval of a work sharing plan in accordance
298+32 with subsection (a).
299+33 Sec. 6. The commissioner shall approve a work sharing plan
300+34 that meets the following requirements:
301+35 (1) The work sharing plan must apply to the greater of:
302+36 (A) ten percent (10%) of the employees in an affected unit;
303+37 or
304+38 (B) two (2) employees in an affected unit.
305+39 (2) The normal weekly work hours of the affected employees
306+40 in the affected unit shall be reduced by at least ten percent
307+41 (10%), but the reduction may not exceed fifty percent (50%).
308+42 The reduction in normal weekly work hours must be spread
309+2023 IN 347—LS 6392/DI 141 8
310+1 equally among all of the affected employees.
311+2 Sec. 7. (a) A work sharing plan must:
312+3 (1) identify the affected unit or units to which the work
313+4 sharing plan applies;
314+5 (2) state:
315+6 (A) the reason or reasons resulting in the reduction in
316+7 normal weekly work hours under section 6(2) of this
317+8 chapter;
318+9 (B) the expected duration of the reduction in normal
319+10 weekly work hours under section 6(2) of this chapter; and
320+11 (C) an estimate of the number of layoffs that will be
321+12 averted by the employing unit's participation in a work
498322 13 sharing plan;
499-14 (3) unreasonable revision of a productivity standard of the
500-15 affected unit;
501-16 (4) violation of a criterion on which the commissioner based
502-17 the approval of the work sharing plan; or
503-18 (5) failure of the employing unit to comply with the eligibility
504-19 requirements under section 4(a) of this chapter for
505-20 participation in the work sharing unemployment insurance
506-21 program.
507-22 (b) A work sharing employer may terminate an approved work
508-23 sharing plan at any time by notifying the following at least fifteen
509-24 (15) calendar days before the termination of the plan:
510-25 (1) The commissioner.
511-26 (2) One (1) of the following:
512-27 (A) The collective bargaining agent for each collective
513-28 bargaining agreement that covers any affected employee
514-29 in the affected unit.
515-30 (B) In the absence of a collective bargaining agreement,
516-31 each affected employee in the affected unit.
517-32 (c) An affected employee in an affected unit or the collective
518-33 bargaining agent representing an affected employee in an affected
519-34 unit may request that the commissioner take action to revoke the
520-35 approval of an approved work sharing plan.
521-36 (d) The commissioner shall give written notice of a revocation
522-37 to the work sharing employer specifying:
523-38 (1) the date the revocation is effective; and
524-39 (2) the reason or reasons for the revocation.
525-40 (e) The commissioner's decision to revoke approval of an
526-41 approved work sharing plan is final and may not be appealed.
527-42 (f) The department shall review the operation of an approved
528-SB 347—LS 6392/DI 141 13
529-1 work sharing plan at least once during the period that the
530-2 approved work sharing plan is in effect to ensure that the work
531-3 sharing employer is complying with the requirements of the
532-4 approved work sharing plan.
533-5 Sec. 17. The department may adopt and enforce rules under
534-6 IC 4-22-2 that are necessary to carry out this chapter in
535-7 accordance with IC 22-4-19-1.
536-SB 347—LS 6392/DI 141 14
537-COMMITTEE REPORT
538-Madam President: The Senate Committee on Pensions and Labor,
539-to which was referred Senate Bill No. 347, has had the same under
540-consideration and begs leave to report the same back to the Senate with
541-the recommendation that said bill be AMENDED as follows:
542-Page 5, between lines 41 and 42, begin a new line block indented
543-and insert:
544-"(4) "Fringe benefits" means:
545-(A) health insurance for hospital, medical, dental, and
546-similar services;
547-(B) retirement benefits under benefit pension plans as
548-defined in the federal Employee Retirement Income
549-Security Act (29 U.S.C. 1001 et seq.);
550-(C) holiday and vacation pay;
551-(D) sick leave; and
552-(E) other similar benefits that are incidents of
553-employment.".
554-Page 5, line 42, delete "(4)" and insert "(5)".
555-Page 6, line 3, delete "(5)" and insert "(6)".
556-Page 6, line 9, delete "(6)" and insert "(7)".
557-Page 6, line 19, delete "(7)" and insert "(8)".
558-Page 6, line 21, delete "(8)" and insert "(9)".
559-Page 6, line 25, delete "(9)" and insert "(10)".
560-Page 6, line 27, delete "(10)" and insert "(11)".
561-Page 8, delete lines 25 through 35, begin a new line block indented
562-and insert:
563-"(6) specify that fringe benefits will continue to be provided to
564-an affected employee:
565-(A) who remains on the payroll of an affected unit;
566-(B) during the period that the work sharing plan is in
567-effect; and
568-(C) as though the normal weekly work hours of the
569-affected employee had not been reduced;".
570-Page 9, between lines 29 and 30, begin a new paragraph and insert:
571-"(c) Subsection (a)(6) does not preclude an employing unit from
572-modifying fringe benefits if the modification of fringe benefits
573-applies to the same extent for both:
574-(1) affected employees; and
575-SB 347—LS 6392/DI 141 15
576-(2) employees who are not participating in the work sharing
577-plan.".
578-and when so amended that said bill do pass and be reassigned to the
579-Senate Committee on Appropriations.
580-(Reference is to SB 347 as introduced.)
581-ROGERS, Chairperson
582-Committee Vote: Yeas 8, Nays 1.
583-SB 347—LS 6392/DI 141
323+14 (3) specify the effective date of the work sharing plan;
324+15 (4) specify an expiration date that is not more than twelve (12)
325+16 months after the effective date of the work sharing plan;
326+17 (5) identify each employee in the affected unit by:
327+18 (A) name;
328+19 (B) Social Security number;
329+20 (C) the normal weekly work hours of the employee;
330+21 (D) the reductions in the number of hours and the amount
331+22 of wages proposed for the employee by the work sharing
332+23 plan; and
333+24 (E) any other information the commissioner requires;
334+25 (6) specify that the work sharing plan will not affect the fringe
335+26 benefits of any employee in the affected unit, including:
336+27 (A) health insurance for hospital, medical, dental, and
337+28 similar services;
338+29 (B) retirement benefits under benefit pension plans as
339+30 defined in the federal Employee Retirement Income
340+31 Security Act (29 U.S.C. 1001 et seq.);
341+32 (C) holiday and vacation pay;
342+33 (D) sick leave; and
343+34 (E) other similar benefits that are incidents of
344+35 employment;
345+36 (7) certify that:
346+37 (A) each affected employee has been continuously on the
347+38 payroll of the employing unit for at least sixteen (16)
348+39 months immediately before the date on which the
349+40 employing unit submits the work sharing plan;
350+41 (B) the total reduction in normal weekly work hours is in
351+42 place of layoffs that would have:
352+2023 IN 347—LS 6392/DI 141 9
353+1 (i) affected at least the number of employees estimated in
354+2 subdivision (2)(C); and
355+3 (ii) resulted in an equivalent reduction in work hours;
356+4 and
357+5 (C) the work sharing plan will not serve as a subsidy of:
358+6 (i) seasonal employment as determined by the
359+7 department as a seasonal determination under
360+8 IC 22-4-7-3(b);
361+9 (ii) temporary employment; or
362+10 (iii) intermittent employment;
363+11 (8) contain:
364+12 (A) the written approval of the collective bargaining agent
365+13 for each collective bargaining agreement that covers any
366+14 affected employee in the affected unit; or
367+15 (B) in the absence of a collective bargaining agreement, a
368+16 certification by the employing unit that the proposed work
369+17 sharing plan, or a summary of the work sharing plan, has
370+18 been made available to each affected employee in the
371+19 affected unit; and
372+20 (9) include the employing unit's attestation that participation
373+21 in a work sharing plan is consistent with the employing unit's
374+22 obligations under applicable federal and state laws.
375+23 (b) A work sharing plan may include an option that allows an
376+24 affected employee to attend work related training or retraining to
377+25 enhance job skills (including employing unit sponsored training or
378+26 worker training funded under the federal Workforce Innovation
379+27 and Opportunity Act of 2014 (29 U.S.C. 3101 et seq.)) during the
380+28 affected employee's work hours. The commissioner shall approve
381+29 the training or retraining offered under this subsection.
382+30 Sec. 8. A work sharing employer shall agree to:
383+31 (1) submit reports that are necessary to administer the
384+32 approved work sharing plan; and
385+33 (2) allow the department to have access to all records
386+34 necessary to:
387+35 (A) verify the work sharing plan before its approval; and
388+36 (B) monitor and evaluate the application of the approved
389+37 work sharing plan.
390+38 Sec. 9. (a) An approved work sharing plan may be modified if:
391+39 (1) the work sharing employer notifies the commissioner in
392+40 writing not later than fifteen (15) calendar days after the date
393+41 the modification is made whenever the modification is not
394+42 substantial; or
395+2023 IN 347—LS 6392/DI 141 10
396+1 (2) whenever the modification is substantial:
397+2 (A) the modification meets the requirements for approval
398+3 under section 6 of this chapter; and
399+4 (B) the commissioner approves the modification.
400+5 If the commissioner determines that a modification reported under
401+6 subdivision (1) is substantial, the commissioner shall notify the
402+7 work sharing employer of the commissioner's determination and
403+8 require the work sharing employer to request approval of the
404+9 modification under subdivision (2).
405+10 (b) The commissioner shall not approve a modification of a
406+11 work sharing plan that extends the expiration date of the work
407+12 sharing plan.
408+13 (c) The decision of the commissioner to disapprove a
409+14 modification to a work sharing plan is final and may not be
410+15 appealed.
411+16 Sec. 10. (a) An affected employee is eligible under this chapter
412+17 to receive work sharing benefits for each week in which the
413+18 commissioner determines that the affected employee is:
414+19 (1) able to work; and
415+20 (2) available for more hours of work for the work sharing
416+21 employer.
417+22 (b) An affected employee who otherwise is eligible may not be
418+23 denied work sharing benefits for lack of effort to secure full-time
419+24 work as set forth in IC 22-4-14-3 or for failure to apply for
420+25 available, suitable work as set forth in IC 22-4-15-2 from a person
421+26 other than the work sharing employer.
422+27 (c) An affected employee shall apply for benefits in accordance
423+28 with IC 22-4-17-1.
424+29 (d) An affected employee who otherwise is eligible for benefits
425+30 is:
426+31 (1) considered to be unemployed for the purpose of the work
427+32 sharing unemployment insurance program; and
428+33 (2) not subject to the requirements of IC 22-4-14-2.
429+34 Sec. 11. The unemployment compensation weekly work sharing
430+35 benefit due to an affected employee is determined in STEP FIVE
431+36 of the following formula:
432+37 STEP ONE: Determine the weekly benefit amount that would
433+38 be due to the employee under IC 22-4-12-4.
434+39 STEP TWO: Subtract the number of the employee's work
435+40 hours under the approved work sharing plan from the
436+41 number of the employee's normal weekly work hours.
437+42 STEP THREE: Divide the STEP TWO result by the number
438+2023 IN 347—LS 6392/DI 141 11
439+1 of the employee's normal weekly work hours.
440+2 STEP FOUR: Multiply the number determined in STEP ONE
441+3 by the quotient determined in STEP THREE.
442+4 STEP FIVE: If the product determined under STEP FOUR is
443+5 not a multiple of one dollar ($1), round down to the nearest
444+6 lower multiple of one dollar ($1).
445+7 Sec. 12. (a) An affected employee may not receive more than
446+8 fifty-two (52) weeks of work sharing benefits during each benefit
447+9 period.
448+10 (b) The total amount of benefits payable under IC 22-4-12-4 and
449+11 work sharing benefits payable under this chapter may not exceed
450+12 the total amount of benefits payable for the benefit period under
451+13 IC 22-4-12-4(a).
452+14 Sec. 13. During a week in which an affected employee who
453+15 otherwise is eligible for benefits does not work for the work
454+16 sharing employer:
455+17 (1) the individual shall be paid unemployment insurance
456+18 benefits in accordance with IC 22-4-12; and
457+19 (2) the week does not count as a week for which a work
458+20 sharing benefit is received.
459+21 Sec. 14. During a week in which an affected employee works for
460+22 a work sharing employer under an approved work sharing plan
461+23 and also for another employer, the work sharing benefit is
462+24 determined under section 11 of this chapter by subtracting (in
463+25 STEP TWO) the combined hours worked for the work sharing
464+26 employer and the other employer from the affected employee's
465+27 normal weekly work hours.
466+28 Sec. 15. Work sharing benefits shall be charged to the work
467+29 sharing employer's experience balance in the same manner as
468+30 unemployment insurance is charged under this article. Employers
469+31 liable for payments in lieu of contributions shall have work sharing
470+32 benefits attributed to service in their employ in the same manner
471+33 as unemployment insurance is attributed under this article.
472+34 However, during a period in which the federal government
473+35 reimburses the state for work sharing benefits, the state may not:
474+36 (1) charge an employer's experience account; or
475+37 (2) require payments in lieu of contributions;
476+38 for work sharing benefits paid under this article.
477+39 Sec. 16. (a) The commissioner may revoke approval of an
478+40 approved work sharing plan for good cause, including:
479+41 (1) conduct or an occurrence that tends to defeat the intent
480+42 and effective operation of the approved work sharing plan;
481+2023 IN 347—LS 6392/DI 141 12
482+1 (2) failure to comply with an assurance in the approved work
483+2 sharing plan;
484+3 (3) unreasonable revision of a productivity standard of the
485+4 affected unit;
486+5 (4) violation of a criterion on which the commissioner based
487+6 the approval of the work sharing plan; or
488+7 (5) failure of the employing unit to comply with the eligibility
489+8 requirements under section 4(a) of this chapter for
490+9 participation in the work sharing unemployment insurance
491+10 program.
492+11 (b) A work sharing employer may terminate an approved work
493+12 sharing plan at any time by notifying the following at least fifteen
494+13 (15) calendar days before the termination of the plan:
495+14 (1) The commissioner.
496+15 (2) One (1) of the following:
497+16 (A) The collective bargaining agent for each collective
498+17 bargaining agreement that covers any affected employee
499+18 in the affected unit.
500+19 (B) In the absence of a collective bargaining agreement,
501+20 each affected employee in the affected unit.
502+21 (c) An affected employee in an affected unit or the collective
503+22 bargaining agent representing an affected employee in an affected
504+23 unit may request that the commissioner take action to revoke the
505+24 approval of an approved work sharing plan.
506+25 (d) The commissioner shall give written notice of a revocation
507+26 to the work sharing employer specifying:
508+27 (1) the date the revocation is effective; and
509+28 (2) the reason or reasons for the revocation.
510+29 (e) The commissioner's decision to revoke approval of an
511+30 approved work sharing plan is final and may not be appealed.
512+31 (f) The department shall review the operation of an approved
513+32 work sharing plan at least once during the period that the
514+33 approved work sharing plan is in effect to ensure that the work
515+34 sharing employer is complying with the requirements of the
516+35 approved work sharing plan.
517+36 Sec. 17. The department may adopt and enforce rules under
518+37 IC 4-22-2 that are necessary to carry out this chapter in
519+38 accordance with IC 22-4-19-1.
520+2023 IN 347—LS 6392/DI 141