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STATE OF OKLAHOMA
1st Session of the 58th Legislature (2021)
SENATE BILL 182 By: Dossett (J.A.)
AS INTRODUCED
An Act relating to labor; creating th e Shared Work
Unemployment Compensation Program; pr oviding short
title; defining terms; requiring the Okla homa
Employment Security Commission to establish a
voluntary shared work program; authorizing the
Oklahoma Employment Security Commission to promulgat e
certain rules and procedures; requiring reports a s a
condition for a shared work participation; providin g
for certain form; authorizing the Commission to
approve or deny shared work plans under certain
conditions; stating conditions for shared work
approval; providing for collective bargaining
agreements; denying shared work for certain temporary
workers; prohibiting employers with certain
percentage in experience rate for certain period of
time; stating time period to approve or deny shared
work plan; requiring notification to employer upon
denial; allowing appeal; providing effective dates
for shared work plans; allowing modification of plan
effective date; providing for plan expiration;
authorizing written employer modification to approved
plan; requiring certain written changes to plan;
construing effect of modified plan; stating
eligibility for unemployme nt benefits under share d
work plan; allowing Oklahoma E mployment Security
Commission to reevaluate modified plans; establishing
eligibility for shared work benefits; prohibiting
certain denial of benef its under approved shared work
plan; prohibiting deduct ion of unemployment benefits
under shared work program; providing procedures to
determine amount of unemployment benefit under
approved shared work pl an; requiring employer to file
shared work claims f or employees; requiring payments
in whole dollars; proh ibiting benefits in excess of
maximum unemployment benefits; authorizing certain
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extended unemployment benefits; stating basis for
benefit wages; requiring employer to be charged
benefit amount; allowi ng the Commission to terminate
plan for cause; prohibit ing unemployment benefits
until certain date; providing for codification;
providing an effective date; and declaring an
emergency.
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 1. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 2 -950 of Title 40, unless there
is created a duplication in numbering, reads as follows:
This act shall be known and may be cited as the “Shared Work
Unemployment Compensation Program ”.
SECTION 2. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 2 -950.1 of Title 40, unless
there is created a duplication in numbering, reads as follows:
As used in this act:
1. “Affected unit” means a specified department , shift or other
unit of two or more employees that is designated by an e mployer to
participate in a shared work plan;
2. “Fringe benefit” means health insurance, a retirement
benefit received under a pension plan, a paid vacation day, a paid
holiday, sick leave, and any other analogous employee benefit that
is provided by an employer;
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3. “Fund” means the Unemployment Trust Fund establishe d by
Section 3-605 of Title 40 of the Oklahoma Statutes;
4. “Normal weekly hours of work ” means the lesser of fort y (40)
hours or the average obtained by dividing the total number of hours
worked per week during the pr eceding twelve-week period by the
number twelve;
5. “Participating employee ” means an employee who works a
reduced number of hours under a shared work plan;
6. “Participating employer ” means an employer who has a shared
work plan in effect;
7. “Commission” has the same meaning as set o ut in Section 1-
206 of Title 40 of the Oklahoma Statutes;
8. “Shared work benefit” means an unemployment compensat ion
benefit that is payable to an ind ividual in an affected unit because
the individual works reduced hours under an approved shared work
plan;
9. “Shared work plan” means a program for reducing unempl oyment
under which employees who are members of an af fected unit share the
work remaining after a reduction in their normal weekly hours of
work; and
10. “Shared Work Unemployment Compensatio n Program” means a
program designed to reduce unemployment and s tabilize the work force
by allowing certain employee s to collect unemployment compensation
benefits if the employees share the work remaining after a reduction
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in the total number of hours of work and a corresponding reduction
in wages.
SECTION 3. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 2 -950.2 of Title 40, unless
there is created a duplication in numbering, reads as follows:
A. The Oklahoma Employment Security Commission shall establish
a voluntary Shared Work Une mployment Compensation Program as
provided by this act. The Commission may adopt rules and establish
procedures necessary to administer the pr ogram.
B. An employer who wishes to participate in the Shared Work
Unemployment Compensation Program must submit a written shared work
plan to the Commission for a pproval. As a condition for approval, a
participating employer must agree to furnish the Commission with
reports relating to the operation of the shared work plan. The
report shall be in a form prescribed by the Co mmission.
SECTION 4. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 2 -950.3 of Title 40, unless
there is created a duplication in numbering, reads as follows:
A. The Oklahoma Employment Security Commission may approv e a
shared work plan if:
1. The participating employer regularly employs at least one
hundred employees;
2. The shared work plan app lies to and identifi es a specific
affected unit or number of units;
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3. The employees in the affected unit are identifi ed by name
and social security number;
4. The shared work plan reduces the normal weekly hours of work
for an employee in the affected unit by not less than twenty percent
(20%) and not more than forty perce nt (40%);
5. The shared work plan applies to at least ten percent (10%)
of the employees in the a ffected unit and at least fifty employees
within the company;
6. The shared work plan maintains the fringe benefits of each
employee in the affected unit at the benefit level in effect before
the shared work plan is implemented;
7. The employer certifies that the implementation of a shared
work plan and the resulting reduction in work hours is in lieu of
temporary layoffs that would affect at least ten percen t (10%) of
the employees in the affected uni t and at least fifty employees
within the company, and that would result in an equivalent reduction
in work hours; and
8. The employer has filed all reports req uired to be filed
under the Employment Security Act of 1980 for all past and current
periods, and has paid all contributions, interest, penalties and
fees owing on the employer’s account with the Commission.
B. If any of the employees who participate in a shared work
plan pursuant to this act are covered by a collective bargaining
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agreement, the shared work plan must be approved in writing by the
collective bargaining agent before approval by the Commission.
C. A shared work plan may not be implemented to subsidize
seasonal employers during the off -season or to subsidize employers
who have traditionally employed workers less than thirty -two (32)
hours per week.
D. If any employer that is eligible for a tax rate computation
under Sections 3-101 through 3-118 of Title 40 of the Oklahoma
Statutes is assigned an experience tax rate of five and four -tenths
percent (5.4%) or greater for a calendar year, that employer shall
be ineligible to participate in the Shared Work Unemployment
Compensation Program provided by this act for that calendar y ear.
E. The Commission shall approve or deny a shared wor k plan no
later than thirty (30) days after the day the shared work plan is
received by the Commission. The Commission shall approve or deny a
shared work plan in wr iting. If the plan is denied, the Commission
shall notify the employer of the reasons for the denial.
F. The employer may appeal the denial of a shared work plan
pursuant to the provisions of Section 3 -115 of Title 40 of th e
Oklahoma Statutes.
SECTION 5. NEW LAW A new section of l aw to be codified
in the Oklahoma Statutes as Section 2-950.4 of Title 40, unless
there is created a duplication in numbering, reads as follows:
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A shared work plan is effec tive on the date it is approved b y
the Oklahoma Employment Security Commission. For good cause shown,
the Commission may designate the effective date to be on any day
within a period of fourteen (14) days prior to the date the plan is
approved by the Comm ission. The shared work plan exp ires on the
last day of the twelfth full calendar m onth after the effective date
of the shared work plan. Shared work benefits shall be paid for a
maximum of twenty-six (26) weeks during the twelve (12) consecutive
calendar months that the shared work pla n is in effect.
SECTION 6. NEW LAW A new section of law to be co dified
in the Oklahoma Statutes as Section 2 -950.5 of Title 40, unless
there is created a duplication in numbering, reads as follows:
An employer may modify a shared wo rk plan created pursuant to
this act to meet change d conditions if the modification confo rms to
the basic provisions of the shared work plan as a pproved by the
Oklahoma Employment Security Commission. The employer must r eport
the changes made to the share d work plan in writing to the
Commission before imp lementing the changes. If the origina l shared
work plan is substantially modified, the Commission shall reevaluate
the shared work plan and may approve the mod ified shared work plan
if it meets the requir ements for approval under Section 5 of this
act. The approval of a mod ified shared work plan does not affect
the expiration date originally set for that shared work plan. If
substantial modifications cause the shared wo rk plan to fail to meet
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the requirements for approval, the Commission shall deny a pproval to
the modifications as provided b y subsection E of Section 4 of this
act.
SECTION 7. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 2 -950.6 of Title 40, unless
there is created a duplication in numbering, reads as follows:
A. Notwithstanding any other provisions of the Employment
Security Act of 1980, an individual is unemployed and is eligible
for shared work benefits in any week in which the i ndividual, as an
employee in an affected unit, work s for less than the indivi dual’s
normal weekly hours of work in accordance with an approved shared
work plan in effect for that week. The Oklahoma Employment Security
Commission may not deny shared work b enefits for any week to an
otherwise eligible indiv idual by reason of the a pplication of any
provision of this title that relates to avai lability for work,
active search for work or refusal to apply for or accept work w ith
an employer other than the partic ipating employer. The Oklahoma
Employment Security Commission shall not deduct wages pai d by the
participating employer to the participating employee from the shared
work benefit in any week the shared work plan is bei ng implemented
for the participating employee.
B. An individual is eligible to receive shared work benefits
with respect to any week in which the Commission finds that:
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1. The individual is employed as a member of an affected unit
subject to a shared w ork plan that was approved and is in ef fect for
that week;
2. The individual is able to w ork and is available for
additional hours of work or full -time work with the participating
employer;
3. The individual’s normal weekly hours of work have been
reduced by at least twenty percent (20%) but not more than forty
percent (40%) with a corr esponding reduction in wages; and
4. The individual’s normal weekly hours of work and wages have
been reduced as described in par agraph 3 of this subse ction for a
waiting period of one (1) week which occurs wit hin the period the
shared work plan is in effect, w hich period includes the week for
which the individual is claiming shared work ben efits.
C. The participating employer shall be responsible for the
filing of the weekly claims for shared work benefits on behalf of
the participating employee. The particip ating employer shall
provide the Oklahoma Employment Security Commission with the name
and social security number of each participating employee along with
any other information necessary to complete the c laim. The
participating employer shall certify tha t the participating employee
is qualified to receive the shared work benefit.
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SECTION 8. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 2 -950.7 of Title 40, unless
there is created a duplication in n umbering, reads as follows:
A. The Oklahoma Employment Security Commission shall pay an
individual who is eligible for shared work benefits a weekly shared
work benefit amount equal to the individual ’s regular weekly benefit
amount, calculated pursuant to Section 2-106 of Title 40 of th e
Oklahoma Statutes, for a period of total unemployment multiplied by
the nearest full percentage of reduction of the ind ividual’s hours
as set forth in the employer ’s shared work plan. If the shared
benefit amount is not a multiple of One Dollar ($1.00), the
Commission shall reduce the amount to the next lowest multiple of
One Dollar ($1.00). All shared work ben efits under this act shall
be payable from the Unemployment Co mpensation Fund.
B. The Commission may not pay an individual shared work
benefits for any week in which the individual performs paid work for
the participating employer in excess of the reduced hours
established under the shared work plan.
C. An individual shall not receive shared work benefits or
regular unemployment compensation be nefits or both, in an amount
that exceeds the maximum benefit amount payable to that individual,
pursuant to Section 2 -106 of Title 40 of the Oklahoma Statutes, in
the benefit year that shall begin as of the effective date of the
shared work plan.
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D. An individual who has received all of the shared work
benefits and regular unemployment compensation benefits avai lable in
a benefit year has exhausted his or her benefits and may be entitled
to receive extended benefits, if exten ded benefits are available an d
if the individual is otherwise elig ible.
SECTION 9. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 2 -950.8 of Title 40, unless
there is created a duplication in numberi ng, reads as follows:
Shared work benefits paid under a shared work plan shall be
based on benefit wages of the participating employee and shall be
charged to the participating employer as provided in Sect ions 1-221,
3-105, 3-106 and 3-806 of Title 40 of t he Oklahoma Statutes.
SECTION 10. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 2 -950.9 of Title 40, unless
there is created a duplication in number ing, reads as follows:
The Oklahoma Employment Secu rity Commission may terminate a
shared work plan for good cause if the Commission determines that
the shared work plan is not being executed according to the terms
and intent of the Shared Work Une mployment Compensation Program.
SECTION 11. NEW LAW A new sectio n of law to be codified
in the Oklahoma Statutes as Section 2 -950.10 of Title 40, unless
there is created a duplication in n umbering, reads as follows:
No shared work benefit pa yment shall be made under any shared
work plan for any week which commences before January 1, 2022.
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SECTION 12. This act shall become effective July 1, 20 21.
SECTION 13. It being immediately necessary for the preservation
of the public peace, health and safety, an emergency is hereby
declared to exist, by reason whereof this act shall take effect and
be in full force from and after its passage and approval.
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