This bill provides that for purposes of benefits to which a claimant may be
entitled for partial unemployment, a bonus or profit-sharing payment is always
considered to be earned in the week in which the bonus or payment is paid by the
claimant's employer.
Tax changes
Other changes
Use of surplus assessment revenues
Currently, when this state obtains a loan from the federal government to
maintain the solvency of the unemployment reserve fund, from which benefits are
paid, most employers must pay an assessment to cover the cost of any interest
payments due on the loan. If the amounts collected from the assessment are more
than is needed to pay the interest due, the amounts are retained in the
administrative account of the fund, and may be used for a variety of purposes,
including administration of the UI program, research relating to the condition of the
fund, and the payment of certain benefits.
This bill provides instead that excess revenues shall be credited to the
balancing account of the fund, which is used to pay benefits that are not chargeable
to any employer's account. The effect is to enhance the balance of the fund, which
decreases the need for future borrowing and assessments to maintain the fund's
solvency.
Unlawful discrimination and retaliation
Currently, it is unlawful for any person to: a) make a deduction from the wages
of an employee to finance an employer's actual or potential UI costs; b) knowingly fail
to furnish to an employee any required UI information; c) attempt to induce an
employee not to claim UI benefits or to waive any other right under the UI law; or
d) maintain a rehiring policy that discriminates against employees who claim
benefits. Violators are guilty of a misdemeanor and are subject to a fine of not less
than $100 nor more than $500 or imprisoned for not more than 90 days or both for
each occurrence.
This bill also makes it unlawful to: a) attempt to induce an employee not to
claim benefits or waive any right under the UI law by threatening to terminate the
employee; b) attempt to induce an employee from participating in a UI audit or
investigation, or testifying in a UI hearing, or c) discriminate against an individual
because of the individual's participation in a UI audit or investigation, or testifying
in a UI hearing or exercising any other right under the UI law. The bill also increases
the maximum fine for all current and proposed offenses to $1,000 for each occurrence.
Recovery of UI liabilities by offset and setoff
Currently, if benefits are erroneously paid to an individual, the issue may be
adjudicated administratively, subject to appeal through the court system. DWD may
then collect the amount of the overpayment set forth in an administrative decision
by deducting that amount from benefits otherwise payable to the individual. DWD
may also levy against the available assets of any individual or employer who is
determined to be liable to DWD for UI purposes. Currently, with certain exceptions,
moneys withdrawn from the unemployment reserve fund may only be used for the
payment of benefits.
This bill permits DWD to utilize procedures available under state and federal
revenue laws to set off adjudicated UI liabilities against refunds or other payments
that may be payable to a liable individual under state law or to offset adjudicated UI
liabilities for fraudulent practices against refunds that may be payable to a liable
individual under federal tax laws. The bill also permits DWD to pay the
administrative expenses of the federal offsets from the unemployment reserve fund.
The change initially applies to satisfaction of liabilities outstanding on the day the
bill becomes law.
Deadline for making voluntary contributions
Currently, an employer may pay contributions (taxes) before they become due.
If an employer makes a voluntary contribution by November 30 of any year, it is
credited to the employer's account as of June 30 of that year and it may therefore
have the effect of lowering the employer's contribution rate for the succeeding year.
Currently, a voluntary contribution is timely if it is received by DWD no later than
its due date or, if mailed, is either postmarked by that date or is received by DWD
no later than three days after that date.
This bill provides that to be considered timely, a voluntary contribution must
be received by DWD no later than its due date.
Exclusion of certain tribal employment from coverage
Currently, federal and state law generally provide for UI coverage in
employment by Indian tribes. Federal law does not mandate coverage for any of the
following types of positions with an Indian tribe: a) members of a legislative body;
b) major nontenured policymaking or advisory positions; c) certain part-time
policymaking or advisory positions; or d) certain work relief or work training
positions.
This bill excludes employment in these positions from coverage under the state
UI law unless an employer elects otherwise with DWD's approval. Under the bill,
a position as a member of a legislative body is excluded only if the position is elective.
Noncoverage means that an employee may not claim benefits based upon this type
of employment and the employee's employer is not liable to pay for those benefits.
Penalty for acts of concealment
Current law provides that a claimant who conceals any material fact relating
to his or her benefit eligibility or who conceals any of his or her wages earned in or
paid or payable for a given week must forfeit a specified amount. The penalty
increases for subsequent offenses within a specified period. A claimant who conceals
wages is also denied benefits for the week in which wages are concealed.
This bill deletes additional language providing that any claimant who commits
an act of concealment is disqualified from receiving benefits for an unspecified
period.
Appeals of LIRC decisions
Current law provides that when an employer wishes to appeal a UI decision
made by the Labor and Industry Review Commission (LIRC) to circuit court, LIRC
and the adverse party must be named as defendants.
This bill clarifies that in addition to any other parties to any particular appeal
DWD is always an adverse party for purposes of UI appeals brought by employers
to address issues other than benefit claims and DWD must be named as a defendant.
This permits DWD to have notice of the appeal and to participate in the court
proceedings and avoids any potential dismissal of an employer's appeal for failure
to name DWD as a defendant.
Qualification of professional employer organizations
Currently, an employer may transfer its obligations to pay UI contributions or
reimbursements to a professional employer organization that meets certain
conditions specified by law. Professional employer organizations are separately
required to register with the Department of Regulation and Licensing (DRL), pay an
annual registration fee, and meet certain financial responsibility requirements.
This bill provides that a professional employer organization does not qualify as
such for UI purposes unless it is currently registered with DRL.
For further information see the state and local fiscal estimate, which will be
printed as an appendix to this bill.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
AB487, s. 1
1Section
1. 108.02 (15) (f) 3. of the statutes is amended to read:
AB487,5,42
108.02
(15) (f) 3. As a member of a legislative body or the judiciary of a state
3or political subdivision
, or as a member of an elective legislative body or the judiciary
4of an Indian tribe;
AB487, s. 2
1Section
2. 108.02 (15) (f) 6. of the statutes is amended to read:
AB487,6,52
108.02
(15) (f) 6. In a position which, under or pursuant to the laws of this state,
3or of an Indian tribe, is designated as a major nontenured policymaking or advisory
4position, or is designated as a policymaking or advisory position the performance of
5the duties of which does not ordinarily require more than 8 hours per week.
AB487, s. 3
6Section
3. 108.02 (15) (g) 1. of the statutes is amended to read:
AB487,6,117
108.02
(15) (g) 1. By an individual receiving work relief or work training as part
8of an unemployment work-relief or work-training program assisted or financed in
9whole or in part by any federal agency or
by an agency of a state or political
10subdivision thereof
or by an Indian tribe, unless otherwise required as a condition
11for participation by the unit or organization in such program;
AB487, s. 4
12Section
4. 108.02 (15s) of the statutes is created to read:
AB487,6,1413
108.02
(15s) Full-time work. "Full-time work" means work performed for 32
14or more hours per week.
AB487, s. 5
15Section
5. 108.02 (20m) of the statutes is created to read:
AB487,6,1716
108.02
(20m) Part-time work. "Part-time work" means work performed for
17less than 32 hours per week.
AB487, s. 6
18Section
6. 108.02 (21e) (intro.) of the statutes is amended to read:
AB487,7,219
108.02
(21e) Professional employer organization. (intro.) "Professional
20employer organization" means any person
who is currently registered as a
21professional employer organization with the department of regulation and licensing
22in accordance with ch. 461, who contracts to provide the nontemporary, ongoing
23employee workforce of more than one client under a written leasing contract, the
24majority of whose clients are not under the same ownership, management, or control
1as the person other than through the terms of the contract, and who under contract
2and in fact:
AB487, s. 7
3Section
7. 108.04 (7) (k) of the statutes is amended to read:
AB487,7,84
108.04
(7) (k) Paragraph (a) does not apply to an employee who terminates his
5or her part-time work
consisting of not more than 30 hours per week if the employee
6is otherwise eligible to receive benefits because of the loss of the employee's full-time
7employment and the loss of the full-time employment makes it economically
8unfeasible for the employee to continue the part-time work.
AB487, s. 8
9Section
8. 108.04 (7) (o) of the statutes is amended to read:
AB487,7,1410
108.04
(7) (o) Paragraph (a) does not apply to an employee who terminates his
11or her work in one of 2 or more concurrently held positions, at least one of which
12consists of more than 30 hours per week is full-time work, if the employee terminates
13his or her work before receiving notice of termination from a position which
consists
14of more than 30 hours per week is full-time work.
AB487, s. 9
15Section
9. 108.04 (11) (be) (intro.) of the statutes is amended to read:
AB487,7,1816
108.04
(11) (be) (intro.) A claimant shall forfeit benefits
and be disqualified
17from receiving benefits for acts of concealment described in pars. (a) and (b) as
18follows:
AB487, s. 10
19Section
10. 108.05 (3) (b) 1. a., b. and c. of the statutes are amended to read:
AB487,7,2420
108.05
(3) (b) 1. a. The claimant works
full time for that employer
at least 35
21hours in that week at the same or a greater rate of pay, excluding bonuses, incentives,
22overtime or any other supplement to the earnings, as the claimant was paid by that
23employer in that quarter of the claimant's base period in which the claimant was paid
24his or her highest wages;
AB487,8,4
1b. The claimant receives from that employer sick pay, holiday pay, vacation pay
2or termination pay which, by itself or in combination with wages earned for work
3performed in that week for that employer, is equivalent to pay for
at least 35 hours
4of full-time work at that same or a greater rate of pay; or
AB487,8,105
c. The amount that the claimant would have earned within that week from that
6employer in available work under s. 108.04 (1) (a) which is treated as wages under
7s. 108.04 (1) (bm), by itself or in combination with the wages earned for work
8performed in that week for that employer and the pay received under subd. 1. b., is
9equivalent to pay for
at least 35 hours of full-time work at that same or a greater rate
10of pay.
AB487, s. 11
11Section
11. 108.05 (3) (e) of the statutes is created to read:
AB487,8,1812
108.05
(3) (e) For purposes of this subsection, a bonus or profit-sharing
13payment is considered to be earned in the week in which the bonus or payment is paid
14by the employer. A bonus or profit-sharing payment is considered to be paid on the
15date of the check if payment is made by check, on the date of direct deposit by the
16employer at a financial institution if payment is deposited by the employer to an
17employee's account at a financial institution, or on the date that the bonus or
18payment is received by the employee if any other method of payment is used.
AB487, s. 12
19Section
12. 108.05 (7) (d) 1. (intro.) and a. of the statutes are consolidated,
20renumbered 108.05 (7) (d) 1. and amended to read:
AB487,9,221
108.05
(7) (d) 1. If a pension payment is not paid on a weekly basis, the
22department shall allocate and attribute the payment to specific weeks
in accordance
23with subd. 2. if
: a. The the payment is actually or constructively received on a
24periodic basis
; or. If a pension payment is actually or constructively received on other
1than a periodic basis, the department shall allocate the payment to the week in which
2it is received.
AB487, s. 13
3Section
13. 108.05 (7) (d) 1. b. of the statutes is renumbered 108.05 (7) (d) 1m.
4and amended to read:
AB487,9,95
108.05
(7) (d) 1m.
The For purposes of this paragraph, a payment is actually
6or constructively received on other than a periodic basis
and if it has become
7definitely allocated and payable to the claimant by the close of
each such a given 8week, and the department has provided due notice to the claimant that the payment
9will be allocated in accordance with subd.
2. b.
1.
AB487, s. 14
10Section
14. 108.05 (7) (d) 2. (intro.) and a. of the statutes are consolidated,
11renumbered 108.05 (7) (d) 2. and amended to read:
AB487,9,1512
108.05
(7) (d) 2. The department shall allocate a pension payment
as follows:
13a. If the payment that is is actually or constructively received on a periodic basis
, the
14amount allocated by allocating to each week
is the fraction of the payment
15attributable to that week.
AB487, s. 15
16Section
15. 108.05 (7) (d) 2. b. of the statutes is repealed.
AB487, s. 16
17Section
16. 108.10 (4) of the statutes is amended to read:
AB487,9,2418
108.10
(4) The department or the employing unit may commence action for the
19judicial review of a commission decision under this section, provided the department,
20or the employing unit, after exhausting the remedies provided under this section, has
21commenced such action within 30 days after such decision was mailed to the
22employing unit's last-known address. The scope of judicial review, and the manner
23thereof insofar as applicable, shall be the same as that provided in s. 108.09 (7).
In
24an action commenced by an employing unit under this section, the department shall
1be an adverse party under s. 102.23 (1) (a) and shall be named as a party in the
2complaint commencing the action.
AB487, s. 17
3Section
17. 108.16 (6) (L) and (m) of the statutes are created to read:
AB487,10,84
108.16
(6) (L) The amount of any overpayments that are recovered by the
5department by setoff pursuant to s. 71.93 or the amount of any overpayments
6resulting from fraud that are recovered by the department by offset pursuant to
7section 6402 (f) of the federal Internal Revenue Code in effect on June 1, 2009, or a
8similar federal program.
AB487,10,129
(m) Any amounts collected from assessments levied under s. 108.19 (1m)
10exceeding the amounts needed to pay interest due on advances from the federal
11unemployment account under title XII of the Social Security Act (
42 USC 1321 to
121324).
AB487, s. 18
13Section
18. 108.16 (6m) (g) of the statutes is created to read:
AB487,10,1614
108.16
(6m) (g) Any payments of fees or expenses assessed by the U.S.
15secretary of the treasury under section 6402 (f) of the federal Internal Revenue Code
16in effect on June 1, 2009, or a similar federal program.
AB487, s. 19
17Section
19. 108.16 (10) of the statutes is amended to read:
AB487,11,218
108.16
(10) All money withdrawn from the fund shall be used solely in the
19payment of benefits, exclusive of expenses of administration, and for refunds of sums
20erroneously paid into the fund, for refund of a positive net balance in an employer's
21reimbursement account under ss. 108.15 (4) and 108.151 (5) on request by the
22employer,
and for expenditures made pursuant to s. 108.161 and consistently with
23the federal limitations applicable to s. 108.161
, and for payment of fees and expenses
24for collection of overpayments resulting from fraud that are assessed by the U.S.
1secretary of the treasury under section 6402 (f) of the federal Internal Revenue Code
2in effect on June 1, 2009, or a similar federal program.
AB487, s. 20
3Section
20. 108.18 (7) (d) of the statutes is amended to read:
AB487,11,74
108.18
(7) (d) A payment under this subsection is timely if it is received by the
5department no later than November 30 following the computation date for the
6calendar year to which it applies
, or if mailed is either postmarked no later than that
7date or is received by the department no later than 3 days after that date.
AB487, s. 21
8Section
21. 108.19 (1m) of the statutes is amended to read:
AB487,11,249
108.19
(1m) Each employer subject to this chapter as of the date a rate is
10established under this subsection shall pay an assessment to the administrative
11account at a rate established by the department sufficient to pay interest due on
12advances from the federal unemployment account under title XII of the social
13security act (
42 USC 1321 to
1324). The rate established by the department for
14employers who finance benefits under s. 108.15 (2), 108.151 (2), or 108.152 (1) shall
15be 75% of the rate established for other employers. The amount of any employer's
16assessment shall be the product of the rate established for that employer multiplied
17by the employer's payroll of the previous calendar year as taken from quarterly
18employment and wage reports filed by the employer under s. 108.205 (1) or, in the
19absence of the filing of such reports, estimates made by the department. Each
20assessment made under this subsection is due on the 30th day commencing after the
21date on which notice of the assessment is mailed by the department. If the amounts
22collected under this subsection are in excess of the amounts needed to pay interest
23due, the
amounts excess shall be
retained in the administrative account and utilized
24for the purposes specified in s. 108.20 (2m) credited to the balancing account.
AB487, s. 22
25Section
22. 108.20 (3) of the statutes is amended to read:
AB487,12,4
1108.20
(3) There shall be included in the moneys governed by sub. (2m) any
2amounts collected by the department under ss. 108.04 (11) (c) and (cm) and 108.22
3(1) (a), (ac), (ad), and (af) as tardy filing fees, forfeitures, interest on delinquent
4payments, or other penalties
and any excess moneys collected under s. 108.19 (1m).
AB487, s. 23
5Section
23. 108.22 (8) (b) 1. of the statutes is renumbered 108.22 (8) (b) 1.
6(intro.) and amended to read:
AB487,12,97
108.22
(8) (b) 1. (intro.) To recover any overpayment
to an individual which is
8not otherwise repaid or recovery of which has not been waived, the department may
9recoup the amount of the overpayment
by:
AB487,12,11
10a. Deducting the amount of the overpayment from benefits the individual
11would otherwise be eligible to receive
, or file;
AB487,12,13
12b. Filing a warrant against the liable individual in the same manner as is
13provided in this section for collecting delinquent payments from employers
, or both;
AB487, s. 24
14Section
24. 108.22 (8) (b) 1. c. and d. of the statutes are created to read:
AB487,12,1615
108.22
(8) (b) 1. c. Setting off the amount of the overpayment against a refund
16or disbursement due pursuant to s. 71.93; or
AB487,12,1917
d. If the overpayment results from fraud, offsetting the amount of the
18overpayment against a federal tax refund as provided in section 6402 (f) of the federal
19Internal Revenue Code in effect on June 1, 2009, or a similar federal program.
AB487, s. 25
20Section
25. 108.24 (3) of the statutes is renumbered 108.24 (3) (a) (intro.) and
21amended to read:
AB487,12,2422
108.24
(3) (a) (intro.)
Any person who makes Whoever does any of the following
23shall be fined not less than $100 nor more than $1,000 or imprisoned for not more
24than 90 days or both:
AB487,13,3
11. Makes a deduction from the wages of an employee because of liability for
2contributions or payments in lieu of contributions under this chapter or because of
3the employee's potential right to benefits
, or who knowingly.
AB487,13,6
42. Knowingly refuses or fails to furnish to an employee any notice, report or
5information duly required under this chapter by the department to be furnished to
6such employee
, or who, directly.
AB487,13,9
73. Directly or indirectly
, by promise of reemployment or by threat not to employ
,
8to terminate, or not to reemploy or by any other means, attempts to induce an
9employee to
refrain:
