HLS 202ES-387 ORIGINAL
2020 Second Extraordinary Session
HOUSE BILL NO. 93
BY REPRESENTATIVE WILLARD
EMPLOYMENT: Creates a work-sharing program (Item #8)
1 AN ACT
2To enact Part XI of Chapter 11 of Title 23 of the Louisiana Revised Statutes of 1950, to be
3 comprised of R.S. 23:1750.1 through 1750.11, relative to unemployment
4 compensation; to create a work-sharing program; to provide for definitions; to
5 provide for criteria for plan approval; to provide for approval and rejection of a plan;
6 to provide for the effective date and duration of a plan; to provide for revocation of
7 approval; to provide for modification of a plan; to provide for eligibility; to provide
8 for benefits; to provide for severability; and to provide for related matters.
9Be it enacted by the Legislature of Louisiana:
10 Section 1. Part XI of Chapter 11 of Title 23 of the Louisiana Revised Statutes of
111950, comprised of R.S. 23:1750.1 through 1750.11, is hereby enacted to read as follows:
12 PART XI. WORK-SHARING PROGRAM
13 §1750.1. Definitions
14 For the purpose of this Part, the following terms have the meanings ascribed
15 to them:
16 (1) "Administrator" means the secretary of the Louisiana Workforce
17 Commission, or any subordinate delegated responsibility for approving applications
18 for participation in a work-sharing plan.
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1 (2) "Affected unit" means a specified plant, department, shift, or other
2 definable unit which includes two or more workers to which an approved work-
3 sharing plan applies.
4 (3) "Health and retirement benefits" means employer-provided health
5 benefits and retirement benefits under a defined benefit pension plan as defined in
6 26 U.S.C. §414(j) of the Internal Revenue Code or contributions under a defined
7 contributions under a defined contribution plan as defined in 26 U.S.C. §414(i) of the
8 Internal Revenue Code, which are incidents of employment in addition to the cash
9 remuneration earned.
10 (4) "Participating employee" means an employee who works a reduced
11 number of hours under an approved work-sharing plan.
12 (5) "Participating employer" means an employer who has an approved work-
13 sharing plan in effect.
14 (6) "Work-sharing benefits" means unemployment benefits payable to
15 employees in an affected unit under an approved work-sharing plan, as distinguished
16 from the unemployment benefits otherwise payable under the unemployment
17 insurance provisions of this state.
18 (7) "Work-sharing plan" means a plan submitted by an employer, for
19 approval by the administrator, under which the employer requests the payment of
20 work-sharing benefits to workers in an affected unit of the employer to avert layoffs.
21 (8) "Usual weekly hours of work" means the usual hours of work for full-time
22 or part-time employees in the affected unit when that unit is operating on its regular
23 basis, not to exceed forty hours and not including hours of overtime work.
24 (9) "Unemployment insurance" means the unemployment benefits payable
25 under the state unemployment insurance law other than work-sharing and includes
26 any amounts payable pursuant to an agreement under any federal law providing for
27 compensation, assistance, or allowances with respect to unemployment.
28 §1750.2. Criteria for workshare plan approval
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1 An employer wishing to participate in the work-sharing program shall submit
2 a signed written work-sharing plan to the administrator for approval. The
3 administrator shall develop an application form to request approval of a short-time
4 compensation plan and an approval process. The application shall include:
5 (1) The affected unit (or units) covered by the plan, including the number of
6 full-time or part-time workers in such unit, the percentage of workers in the affected
7 unit covered by the plan, identification of each individual employee in the affected
8 unit by name, social security number, and the employer's unemployment tax account
9 number and any other information required by the administrator to identify plan
10 participants.
11 (2) Certification by the employer that he has obtained the written approval
12 of any applicable collective bargaining representative and has notified all affected
13 employees who are not in a collective bargaining unit of the proposed work-sharing
14 plan.
15 (3) A description of how workers in the affected unit will be notified of the
16 employer's participation in the work-sharing plan if such application is approved,
17 including how the employer will notify those workers in a collective bargaining unit
18 as well as any workers in the affected unit who are not in a collective bargaining
19 unit. If the employer will not provide advance notice to workers in the affected unit,
20 the employer shall explain in a statement in the application why it is not feasible to
21 provide such notice.
22 (4) A requirement that the employer identify the usual weekly hours of work
23 for employees in the affected unit and the specific percentage by which their hours
24 will be reduced during all weeks covered by the plan. An application shall specify
25 the percentage of reduction for which a work-sharing application may be approved
26 which shall be not less than ten percent and not more than sixty percent. If the plan
27 includes any week for which the employer regularly provides no work due to a
28 holiday or other work-related circumstances outside the employee's control, then
29 such week shall be identified in the application.
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1 (5) Certification by the employer that, if the employer provides health
2 benefits and retirement benefits under defined pension plans as defined in 26 U.S.C.
3 §414(j) of the Internal Revenue Code or contributions under a defined contribution
4 plan as defined in 26 U.S.C. §414(i) of the Internal Revenue Code to any employee
5 whose usual weekly hours of work are reduced under the program, such benefits will
6 continue to be provided to employees participating in the work-sharing program
7 under the same terms and conditions as though the usual weekly hours of work of
8 such employee had not been reduced or to the same extent as other employees not
9 participating in the work-sharing program. For defined benefit retirement plans, the
10 hours that are reduced under the work-sharing plan shall be credited for purposes of
11 participation, vesting, and accrual of benefits as though the usual weekly hours of
12 work had not been reduced. The dollar amount of employer contributions to a
13 defined contribution plan that are based on a percentage of compensation may be less
14 due to the reduction in the employee's compensation. Notwithstanding the above,
15 an application may contain the required certification when a reduction in health and
16 retirement benefits scheduled to occur during the duration of the plan will be
17 applicable equally to employees who are not participating in the short-time
18 compensation program and to those employees who are participating.
19 (6) Certification by the employer that the aggregate reduction in work hours
20 is in lieu of layoffs, whether temporary or permanent, or both, of regularly employed
21 employees in the affected unit. The application shall include an estimate of the
22 number of workers who would have been laid off in the absence of the short-time
23 compensation plan.
24 (7) Agreement by the employer to:
25 (a) Furnish reports to the administrator relating to the proper conduct of the
26 plan.
27 (b) Allow the administrator or his authorized representatives access to all
28 records necessary to approve or disapprove the plan application, and after approval
29 of a plan, to monitor and evaluate the plan.
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1 (c) Follow any other directives the administrator deems necessary for the
2 employer to implement the plan and which are consistent with the requirements for
3 plan applications.
4 (8) Certification by the employer that he has filed all quarterly reports and
5 other reports required under the state unemployment insurance law and has paid all
6 quarterly contributions, reimbursements in lieu of contributions, interest and
7 penalties due through the date of the employer's application.
8 (9) Certification by the employer that he will not hire a new employee in, or
9 transfer an employee to, the affected unit during the effective period of the work-
10 sharing plan.
11 (10) Certification by the employer that it will not lay off a participating
12 employee during the effective period of the work-sharing plan, or reduce a
13 participating employee's hours of work by more than the reduction percentage during
14 the effective period of the work-sharing plan, except in the case of holidays,
15 designated vacation periods, equipment maintenance, or similar work-related
16 circumstances.
17 (11) Certification by the employer that participation in the work-sharing plan
18 and its implementation is consistent with the employer's obligations under applicable
19 federal and state laws.
20 (12) The effective date and duration of the plan that shall expire not later than
21 the end of the twelfth full calendar month after the effective date.
22 (13) Any other provision added to the application by the administrator that
23 the United States Department of Labor determines to be appropriate for the purpose
24 of administering the work-sharing program.
25 §1750.3. Approval or disapproval of the plan
26 The administrator shall approve or disapprove a work-sharing plan in writing
27 within thirty days of its receipt and promptly communicate the decision to the
28 employer. A decision disapproving the plan shall clearly identify the reasons for the
29 disapproval. The disapproval shall be final, but the employer shall be allowed to
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1 submit another work-sharing plan for approval not earlier than fifteen days from the
2 date of the disapproval.
3 §1750.4. Effective date and duration of the plan
4 A work-sharing plan shall be effective on the date that is mutually agreed
5 upon by the employer and the administrator, which shall be specified in the notice
6 of approval to the employer. The plan shall expire on the date specified in the notice
7 of approval, which shall be either the date at the end of the twelfth full calendar
8 month after its effective date or an earlier date mutually agreed upon by the
9 employer and the administrator. However, if a work-sharing plan is revoked by the
10 director under R.S. 23:1750.4, the plan shall terminate on the date specified in the
11 administrator's written order of revocation. The employer may terminate a work-
12 sharing plan at any time upon written notice to the administrator. Upon receipt of
13 such notice from the employer, the administrator shall promptly notify each member
14 of the affected unit of the termination date. An employer may submit a new
15 application to participate in another work-sharing plan at any time after the
16 expiration or termination date.
17 §1750.5. Revocation of approval
18 The administrator may revoke approval of a work-sharing plan for good
19 cause at any time, including upon the request of an affected unit's employee. The
20 revocation order shall be in writing and specify the reasons for the revocation and the
21 date the revocation is effective. The administrator may periodically review the
22 operation of each employer's work-sharing plan to assure that no good cause exists
23 for revocation of the approval of the plan. Good cause includes, but is not limited
24 to, failure to comply with the assurances given in the plan, unreasonable revision of
25 productivity standards for the affected unit, conduct or occurrences tending to defeat
26 the intent and effective operation of the plan, and violation of any criteria on which
27 approval of the plan was based.
28 §1750.6. Modification of an approved plan
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1 An employer may request a modification of an approved plan by filing a
2 written request to the administrator. The request shall identify the specific provisions
3 proposed to be modified and provide an explanation of why the proposed
4 modification is appropriate for the work-sharing plan. The administrator shall
5 approve or disapprove the proposed modification in writing within ten working days
6 of receipt and promptly communicate the decision to the employer. The
7 administrator, in his discretion, may approve a request for modification of the plan
8 based on conditions that have changed since the plan was approved, provided that
9 the modification is consistent with and supports the purposes for which the plan was
10 initially approved. A modification does not extend the expiration date of the original
11 plan, and the administrator must promptly notify the employer whether the plan
12 modification has been approved and, if approved, the effective date of modification.
13 The employer is not required to request approval of a plan modification from the
14 administrator if the change is not substantial, but the employer shall report every
15 change to the plan to the administrator promptly in writing. The administrator may
16 terminate an employer's plan if the employer fails to meet this reporting requirement.
17 If the administrator determines that the reported change is substantial, the
18 administrator shall require the employer to request a modification to the plan.
19 §1750.7. Eligibility for work-sharing compensation
20 An employee is eligible to receive work-sharing compensation benefits with
21 respect to any week only if, in addition to monetary entitlement and not being
22 disqualified for unemployment compensation, the administrator finds that:
23 (1) During the week, the employee is employed as a member of an affected
24 unit under an approved work-sharing plan which was approved prior to that week,
25 and the plan is in effect with respect to the week for which such benefits are claimed.
26 (2) Notwithstanding any other provisions of this Chapter relating to
27 availability for work and actively seeking work, the employee is available for the
28 employee's usual hours of work with the work-sharing employer, which may include,
29 for purposes of this Section, participating in training to enhance job skills that is
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1 approved by the administrator such as employer-sponsored training or training
2 funded under the Workforce Innovation and Opportunity Act of 2014.
3 (3) Notwithstanding any other provisions of this Chapter, an employee
4 covered by an approved work-sharing plan is deemed unemployed in any week
5 during the duration of such a plan, if the employee's remuneration as an employee
6 in an affected unit is reduced based on a reduction of the employee's usual weekly
7 hours of work under an approved work-sharing plan.
8 §1750.8. Benefits
9 A. An employee's work-sharing unemployment compensation weekly benefit
10 amount shall be the product of the regular weekly unemployment compensation
11 amount multiplied by the percentage of reduction in the employee's usual weekly
12 hours of work.
13 B. An employee may be eligible for work-sharing unemployment
14 compensation benefits or unemployment compensation, as appropriate, except that
15 no employee shall be eligible for combined benefits in any benefit year in an amount
16 more than the maximum entitlement established for regular unemployment
17 compensation, nor shall an employee be paid work-sharing unemployment
18 compensation benefits for more than fifty-two weeks under an approved work-
19 sharing plan.
20 C. The work-sharing unemployment compensation benefits paid to an
21 employee shall be deducted from the maximum entitlement amount of regular
22 unemployment insurance established for that employee's benefit year.
23 D. Provisions applicable to an unemployment compensation claimant shall
24 apply to a work-sharing claimant to the extent that such provisions are not
25 inconsistent with the work-sharing provisions in this Part. An employee who files
26 an initial claim for work-sharing benefits shall receive a monetary determination.
27 E. An employee who is eligible for work-sharing unemployment
28 compensation benefits shall not be subject to the provisions of law related to regular
29 unemployment compensation as it relates to partial unemployment compensation
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1 benefits. Wages earned by an employee from other than the work-sharing employer
2 during the week of work-sharing eligibility shall be disregarded in the calculation of
3 the employee's weekly work-sharing benefit.
4 F. An employee who is not provided any work during a week by the work-
5 sharing employer, or any other employer, and who is otherwise eligible for
6 unemployment compensation shall be eligible for the amount of regular
7 unemployment compensation benefits to which he would otherwise be eligible.
8 G. An employee who is not provided any work by the work-sharing employer
9 during a week, but who works for another employer and is otherwise eligible may
10 be paid unemployment compensation for that week subject to the disqualifying
11 income provisions of the provision of state unemployment compensation laws
12 relating to partial unemployment compensation benefits.
13 §1750.9. Charging work-sharing unemployment compensation
14 A. Except as provided in Subsection B of this Section, work-sharing benefits
15 shall be charged to the employers' experience rating accounts in the same manner as
16 unemployment compensation is charged pursuant to this Chapter. Employers liable
17 for payments in lieu of contributions shall have work-sharing benefits attributed to
18 service in his employ in the same manner as unemployment compensation is
19 attributed.
20 B. If federal funding is available to the state for the purpose of full
21 reimbursement for the cost of funding work-sharing benefits paid by the Louisiana
22 Workforce Commission pursuant to Section 2162 of the Layoff Prevention Act of
23 2012 and an approved work-sharing plan under this Chapter, those benefits shall not
24 be charged or billed to a participating employer.
25 §1750.10. Extended benefits
26 An employee who has received all of the work-sharing benefits or combined
27 unemployment compensation and work-sharing unemployment compensation
28 benefits available in a benefit year shall be considered an exhaustee for purposes of
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1 extended benefits, as provided for under this Chapter, and, if otherwise eligible, shall
2 be eligible to receive extended benefits.
3 §1750.11. Severability
4 If any provisions of this Part would otherwise cause the United States
5 Department of Labor to withhold the approval required to implement a work-sharing
6 program under Section 3304(a)(4)(e) of the Federal Unemployment Tax Act, 26
7 U.S.C. §3304, and Section 303(a)(5) of the Social Security Act, 42 U.S.C. §303, that
8 provision shall not be applicable.
DIGEST
The digest printed below was prepared by House Legislative Services. It constitutes no part
of the legislative instrument. The keyword, one-liner, abstract, and digest do not constitute
part of the law or proof or indicia of legislative intent. [R.S. 1:13(B) and 24:177(E)]
HB 93 Original 2020 Second Extraordinary Session Willard
Abstract: Enacts a work-sharing program.
Proposed law defines terms for the purposes of proposed law.
Proposed law provides that an employer wishing to participate in the work-sharing program
shall submit a signed written work-sharing plan to the administrator for approval.
Proposed law provides that the administrator shall develop an application form to request
approval of a work-sharing plan and an approval process.
Proposed law provides that the administrator shall approve or disapprove a work-sharing
plan in writing within 30 days of its receipt and promptly communicate the decision to the
employer. Proposed law further provides that a decision disapproving the plan shall state the
reasons for the disapproval.
Proposed law provides that disapproval is final; however, the employer will be allowed to
submit another work-sharing plan for approval not earlier than 15 days from the date of the
disapproval.
Proposed law provides that a work-sharing plan shall be effective on the date that is mutually
agreed upon by the employer and the administrative, which must be specified in the notice
of approval to the employer.
Proposed law provides that the plan expires on the date specified in the notice of approval,
which shall be either the date at the end of the 12
th
full calendar month after its effective date
or an earlier date mutually agreed upon by the employer and administrator.
Proposed law provides that the an employer may terminate a work-sharing plan at any time
upon written notice to the administrator.
Proposed law provides that the administrator may revoke approval of a work-sharing plan
for good cause at any time, including upon the request of an affected unit's employee.
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Proposed law further provides that such a revocation must be in writing, specify the reasons
for revocation, and the date the revocation is effective.
Proposed law provides that an employer may request a modification of an approved plan by
filing a written request to the administrator. Proposed law further requires that the request
must identify the specific provisions proposed to be modified and explanation for the
modification.
Proposed law requires the administrator to approve or disapprove the proposed modification
in writing within 10 working days of receipt and promptly communication his decision to
the employer.
Proposed law provides that the administrator may terminate an employer's plan if the
employer fails to meet this reporting requirement.
Proposed law provides that if the administrator determines that the reported change is
substantial, the administrator shall require the employer to request a modification to the plan.
Proposed law provides that an employee's work-sharing unemployment compensation
weekly benefit amount shall be the product of the regular weekly unemployment
compensation amount multiplied by the percentage of reduction in the employee's usual
weekly hours of work.
Proposed law provides that an employee may be eligible for work-sharing unemployment
compensation benefits or unemployment compensation, as appropriate. Proposed law further
provides that no employee shall be eligible for combined benefits in any benefit year in an
amount more than the maximum entitlement established for regular unemployment
compensation, nor shall an employee be paid work-sharing unemployment compensation
benefits for more than 52 weeks under an approved work-sharing plan.
Proposed law provides that except as otherwise provided in proposed law, work-sharing
benefits shall be charged to the employers' experience rating accounts.
Proposed law provides that if federal funding is available to the state for the purpose of full
reimbursement for the cost of funding work-sharing benefits paid by the agency pursuant to
Section 2162 of the Layoff Prevention Act of 2012 and an approved work-sharing plan under
proposed law, those benefits shall not be charged or billed to a participating employer.
Proposed law provides that an employee who has received all of the work-sharing benefits
or combined unemployment compensation and work-sharing unemployment compensation
benefits available in a benefit year shall be considered an exhaustee for purposes of extended
benefits and, if otherwise eligible, shall be eligible to receive extended benefits.
Proposed law provides that if any provisions under proposed law would otherwise cause the
United States Department of Labor to withhold the approval required to implement a work-
sharing program under 26 U.S.C. §3304(a)(4)(e) of the Federal Unemployment Tax Act and
42 U.S.C. §303(a)(5) of the Social Security Act, that provision shall not be applicable.
(Adds R.S. 23:1750.1-1750.11)
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