Texas House Bill HB3050

Texas 2021 - 87th Regular

Caption

Relating to unemployment compensation chargebacks regarding certain persons employed as seasonal employees.

Impact

The proposed changes aim to alleviate the financial burden on employers who predominantly hire seasonal workers. By not charging employers' accounts for unemployment benefits associated with seasonal employees, the bill seeks to encourage businesses in sectors that depend on seasonal labor, allowing them to remain financially viable while hiring the necessary workforce during peak seasons. This change reflects a significant adjustment to how unemployment claims are handled, especially for those employers in industries like agriculture, tourism, and retail, which traditionally rely on seasonal labor.

Summary

House Bill 3050 addresses unemployment compensation specifically for seasonal employees by amending the Labor Code. The bill proposes that benefits computed based on the wage credits of seasonal employees or former seasonal employees should not be charged to the employer's account if at least 75 percent of the employees employed by that employer in the last three calendar years were seasonal employees. This definition emphasizes the nature of seasonal employment, which is described as cyclical and not continuous throughout the year.

Contention

While the bill may provide relief to employers, concerns could arise regarding the potential impact on unemployment benefits for seasonal workers themselves. Critics may argue that this could result in a lack of adequate protection for workers during the off-seasons, as employers would face reduced incentives to maintain employment stability. Further legislative discussions may revolve around balancing the interests of employers with the rights and protections afforded to seasonal employees, ensuring that workers are not left vulnerable when transitioning between employment seasons.