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AN ACT relating to unemployment insurance. 1
Be it enacted by the General Assembly of the Commonwealth of Kentucky: 2
SECTION 1. A NEW SECTION OF KRS CHAPTER 341 IS CREATED TO 3
READ AS FOLLOWS: 4
(1) Any person suspected of fraudulently obtaining or attempting to obtain any 5
benefit under this chapter, or under any unemployment insurance law of any 6
other state or the federal government, shall be referred by the cabinet to the 7
United States Department of Justice, the Kentucky Justice and Public Safety 8
Cabinet, and if applicable, the appropriate county attorney or Commonwealth's 9
attorney. The referral shall include: 10
(a) The name of the applicable employer, employee, claimant, and name used 11
in the suspected fraud; 12
(b) Any contact information the cabinet possesses for the suspected fraudulent 13
actor; and 14
(c) Any information filed with or reported to the cabinet regarding the 15
suspected fraud. 16
(2) The cabinet shall make the referral under subsection (1) of this section no later 17
than thirty (30) days after determining suspected fraud has occurred. 18
(3) Notwithstanding KRS Chapter 16 and 18A, if the cabinet determines that a public 19
employee or contractor has collected or attempted to collect unemployment 20
benefits while employed by or under contract with a public agency, as defined in 21
KRS 61.870, the public agency shall immediately terminate the individual's 22
employment or contract. An employee or contractor may appeal the 23
determination in accordance with KRS 341.420. An employee or contractor shall 24
also be subject to penalties under KRS 341.990. 25
(4) A legal disposition finding the employee or contractor guilty is not required to 26
terminate employment under this section. 27 UNOFFICIAL COPY 25 RS BR 1578
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(5) Collecting or attempting to collect unemployment benefits while employed by or 1
under contract with the cabinet shall be considered a breach of any collective 2
bargaining agreement, civil service process, or contract. 3
Section 2. KRS 341.370 is amended to read as follows: 4
(1) A worker shall be disqualified from receiving benefits for the duration of any 5
period of unemployment with respect to which: 6
(a) He or she has failed without good cause either to apply for available, suitable 7
work when so directed by the employment office or the secretary, to accept an 8
interview from a prospective employer offering suitable work, or to accept 9
suitable work when offered him or her, or to return to his or her customary 10
self-employment when so directed by the secretary; 11
(b) He or she has been discharged for misconduct or dishonesty connected with 12
his or her most recent work, or from any work which occurred after the first 13
day of the worker's base period and which last preceded his or her most recent 14
work, but legitimate activity in connection with labor organizations or failure 15
to join a company union shall not be construed as misconduct; 16
(c) He or she has left his or her most recent suitable work or any other suitable 17
work which occurred after the first day of the worker's base period and which 18
last preceded his or her most recent work voluntarily without good cause 19
attributable to the employment. No otherwise eligible worker shall be 20
disqualified from receiving benefits for: 21
1. Leaving his or her next most recent suitable work which was concurrent 22
with his or her most recent work; 23
2. Leaving work which is one hundred (100) road miles or more, as 24
measured on a one (1) way basis, from his or her home to accept work 25
which is less than one hundred (100) road miles from his or her home; 26
3. Accepting work which is a bona fide job offer with a reasonable 27 UNOFFICIAL COPY 25 RS BR 1578
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expectation of continued employment; or 1
4. Leaving work to accompany the worker's spouse to a different state, 2
military base of assignment, or duty station that is one hundred (100) 3
road miles or more, as measured on a one (1) way basis, from the 4
worker's home when the spouse is reassigned by the military; or 5
(d) He or she fails to act in good faith to secure suitable work. 6
(2) A worker shall be disqualified from receiving benefits for any week with respect to 7
which he or she knowingly made a false statement to establish his or her right to or 8
the amount of his or her benefits, and, within the succeeding twenty-four (24) 9
months, for the additional weeks immediately following the date of discovery, not 10
to exceed a total of fifty-two (52), as may be determined by the secretary. 11
(3) A worker shall be disqualified from receiving benefits for any week that he or she 12
is under investigation for knowingly making a false statement or representation 13
of material fact to obtain or increase his or her benefits. The disqualification 14
shall remain in effect until the cabinet or a law enforcement agency determines 15
that a fraudulent act did not occur. 16
(4)[(3)] No worker shall be disqualified under paragraph (b) or (c) of subsection (1) of 17
this section unless the employer, within a reasonable time as prescribed by 18
regulations promulgated by the secretary, notifies the cabinet and the worker in 19
writing of the alleged voluntary quitting or the discharge for misconduct. Nothing 20
in this subsection shall restrict the right of the secretary to disqualify a worker 21
whose employer has refused or failed to notify the Education and Labor Cabinet of 22
the alleged voluntary quitting or discharge for misconduct, if the alleged voluntary 23
quitting or discharge for misconduct is known to the secretary prior to the time 24
benefits are paid to the worker. The exercise of the right by the secretary, in the 25
absence of timely notice from the employer, shall not relieve the employer's reserve 26
account or reimbursing employer's account of benefit charges under the provisions 27 UNOFFICIAL COPY 25 RS BR 1578
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of subsection (3) of KRS 341.530. 1
(5)[(4)] As used in this section and in subsection (3) of KRS 341.530, "most recent" 2
work shall be construed as that work which occurred after the first day of the 3
worker's base period and which last preceded the week of unemployment with 4
respect to which benefits are claimed; except that, if the work last preceding the 5
week of unemployment was seasonal, intermittent, or temporary in nature, most 6
recent work may be construed as that work last preceding the seasonal, intermittent, 7
or temporary work. 8
(6)[(5)] No worker shall be disqualified or held ineligible under the provisions of this 9
section or KRS 341.350, who is separated from employment pursuant to a labor 10
management contract or agreement, or pursuant to an established employer plan, 11
program, or policy, which permits the employer to close the plant or facility for 12
purposes of vacation or maintenance. 13
(7)[(6)] "Discharge for misconduct" as used in this section shall include but not be 14
limited to, separation initiated by an employer for falsification of an employment 15
application to obtain employment through subterfuge; knowing violation of a 16
reasonable and uniformly enforced rule of an employer; unsatisfactory attendance if 17
the worker cannot show good cause for absences or tardiness; damaging the 18
employer's property through gross negligence; refusing to obey reasonable 19
instructions; reporting to work under the influence of alcohol or drugs or consuming 20
alcohol or drugs on employer's premises during working hours; conduct 21
endangering safety of self or co-workers; and incarceration in jail following 22
conviction of a misdemeanor or felony by a court of competent jurisdiction, which 23
results in missing at least five (5) days work. 24
(8)[(7)] "Duration of any period of unemployment," as that term is used in this 25
section, shall be the period of time beginning with the worker's discharge, voluntary 26
quitting, or failure to apply for or accept suitable work and running until the worker 27 UNOFFICIAL COPY 25 RS BR 1578
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has worked in each of ten (10) weeks, whether or not consecutive, and has earned 1
ten (10) times his or her weekly benefit rate in employment covered under the 2
provisions of this chapter or a similar law of another state or of the United States. 3
Section 3. KRS 341.360 is amended to read as follows: 4
(1) No worker may be paid benefits for any week of unemployment: 5
(a) With respect to which a strike or other bona fide labor dispute which caused 6
him to leave or lose his employment is in active progress in the establishment 7
in which he is or was employed, except that benefits may be paid unless the 8
employer notifies the Office of Unemployment Insurance in writing within 9
seven (7) days after the beginning of such alleged strike or labor dispute of the 10
alleged existence of such strike or labor dispute. For the purpose of this 11
subsection, a lockout shall not be deemed to be a strike or a bona fide labor 12
dispute and no worker shall be denied benefits by reason of a lockout; 13
(b) For which he has received or is seeking unemployment compensation under 14
an unemployment compensation law of another state or of the United States, 15
except as otherwise provided by an arrangement between this state and such 16
other state or the United States; but if the appropriate agency of such state or 17
of the United States finally determines that he is not entitled to such 18
unemployment compensation, this subsection shall not apply; 19
(c) 1. Which, when based on service in an instructional, research, or principal 20
administrative capacity in an institution of higher education as defined 21
in KRS 341.067(2) or in an educational institution as defined in KRS 22
341.067(4), begins during the period between two (2) successive 23
academic years, or during a similar period between two (2) regular 24
terms, whether or not successive, or during a period of paid sabbatical 25
leave provided for in the individual's contract, if the worker performs 26
such services in the first of such academic years or terms and if there is 27 UNOFFICIAL COPY 25 RS BR 1578
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a contract or a reasonable assurance that the worker will perform such 1
services in any such capacity for any institution or institutions of higher 2
education or an educational institution in the second of such academic 3
years or such terms; or 4
2. Which, when based on service other than as defined in subparagraph 1. 5
of this paragraph, in an institution of higher education or an educational 6
institution, as defined in KRS 341.067(2) or (4), begins during the 7
period between two (2) successive academic years or terms, if the 8
worker performs such services in the first of such academic years or 9
terms and there is a reasonable assurance that the worker will perform 10
such services in the second of such academic years or terms; except that 11
if benefits are denied to any worker under this paragraph and such 12
worker was not offered an opportunity to perform such services for such 13
institution of higher education or such educational institution for the 14
second of such academic years or terms, such worker shall be entitled to 15
a retroactive payment of benefits for each week for which the worker 16
filed a timely claim for benefits and for which benefits were denied 17
solely by reason of this paragraph; or 18
3. Which, when based on service in any capacity defined in subparagraphs 19
1. and 2. of this paragraph, begins during an established and customary 20
vacation period or holiday recess if the worker performs any such 21
services in the period immediately before such vacation period or 22
holiday recess, and there is a reasonable assurance that such worker will 23
perform any such services in the period immediately following such 24
vacation period or holiday recess; or 25
4. Based on service in any capacity defined in subparagraph 1. or 2. of this 26
paragraph when such service is performed by the worker in an 27 UNOFFICIAL COPY 25 RS BR 1578
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institution of higher education or an educational institution, as defined in 1
KRS 341.067(2) or (4), while the worker is in the employ of an 2
educational service agency, and such unemployment begins during the 3
periods and pursuant to the conditions specified in subparagraphs 1., 2., 4
and 3. of this paragraph. For purposes of this paragraph, the term 5
"educational service agency" means a governmental agency or 6
governmental entity which is established and operated exclusively for 7
the purpose of providing such services to one (1) or more institutions of 8
higher education or educational institutions; 9
Notwithstanding any other provision of this paragraph, any benefits paid to a 10
worker based on service other than as defined in subparagraph 1. of this 11
paragraph performed in an institution of higher education as defined in KRS 12
341.067(2) shall be deemed to have been paid as a result of Office of 13
Unemployment Insurance error and not recoverable by the cabinet or such 14
institution if such payment is improper by virtue of the retroactive application 15
to October 30, 1983, of subparagraph 2. of this paragraph; or 16
(d) With respect to which the worker is suspended from work for misconduct, as 17
defined in KRS 341.370(7)[(6)], connected with the work. 18
(2) Benefits shall not be paid to any individual on the basis of any services, 19
substantially all of which consist of participating in sports or athletic events or 20
training or preparing to so participate, for any week which commences during the 21
period between two (2) successive sport seasons or similar periods and there is a 22
reasonable assurance that such individual will perform such services in the later of 23
such seasons or similar periods. 24
(3) (a) Benefits shall not be paid on the basis of services performed by an alien 25
unless such alien is an individual who was lawfully admitted for permanent 26
residence at the time such services were performed, was lawfully present for 27 UNOFFICIAL COPY 25 RS BR 1578
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purposes of performing such services, or was residing in the United States 1
under color of law at the time such services were performed, including an 2
alien who was lawfully present in the United States as a result of the 3
application of the provisions of Section 203(a)(7) or Section 212(d)(5) of the 4
Immigration and Nationality Act. 5
(b) Any data or information required of individuals applying for benefits to 6
determine whether benefits are not payable to them because of their alien 7
status shall be uniformly required from all applicants for benefits. 8
(c) In the case of an individual whose application for benefits would otherwise be 9
approved, no determination that benefits to such individual are not payable 10
because of his alien status shall be made except upon a preponderance of the 11
evidence. 12