Texas House Bill HB916

Texas 2013 - 83rd Regular

Caption

Relating to the amount of a chargeback for unemployment compensation benefits paid to a person who is partially unemployed.

Impact

The implications of HB 916 are significant for both employers and employees within Texas. By structuring the chargeback system in this way, the bill seeks to alleviate some financial burdens on employers who typically face increased costs when their employees claim unemployment benefits. This change could encourage employers to retain employees on a part-time basis without the fear of incurring additional charges, thereby promoting job retention, particularly during economic downturns.

Summary

House Bill 916 aims to amend the Labor Code in Texas, specifically modifying how chargebacks for unemployment compensation benefits are applied to partially unemployed individuals. The bill stipulates that benefits based on an employee's wage credits will not be charged to their employer's account if the employee maintained their customary working hours when their benefit year commenced. This legislative change is likely to influence how unemployment claims are processed, particularly for those who may not have their hours drastically reduced despite qualifying for benefits.

Contention

While HB 916 seems to provide advantages for employers by decreasing the financial impact of unemployment claims, there may also be concerns regarding its broader implications on workers' rights. Critics could argue that the bill might create disincentives for employers to adjust worker hours when necessary, potentially putting employees at risk of inadequate support during periods of reduced work hours. Furthermore, the bill's definitions and criteria around 'customary hours' could be scrutinized for providing loopholes that could be exploited by employers.