Texas House Bill HB2035

Texas 2013 - 83rd Regular

Caption

Relating to the shared work unemployment compensation program.

Impact

The implementation of this bill is expected to have a significant impact on employment practices within the state of Texas. By facilitating the shared work model, employers may retain skilled workers during periods of reduced business activity. This aims to prevent layoffs and preserve workforce stability, which is particularly vital in maintaining operational efficiency when demand rebounds. The bill reflects a proactive approach to labor management by potentially lowering the unemployment rate and supporting worker retention in challenging economic climates.

Summary

House Bill 2035 introduces provisions for a shared work unemployment compensation program, which allows employers to reduce employee working hours as an alternative to layoffs. The bill aims to provide financial support to both employers and workers by reimbursing unemployment benefits for employees participating in such programs. Moreover, these shared work benefits, when funded through federal government reimbursements, will not be charged to the employer's unemployment account, thereby easing the financial burden on companies during economic downturns.

Contention

While House Bill 2035 seeks to benefit employers and employees during economic hardships, there are potential concerns from worker rights advocates regarding the adequacy of unemployment support. Some argue that the shared work system may lead to insufficient job security for employees and may result in reduced income stability if not optimally structured. As with any legislative change, the balance between employer needs and employee protections will need careful consideration to ensure equitable outcomes.