This bill makes various changes in the unemployment insurance (UI) law.
Significant provisions include:

Currently, if a claimant receives wages or certain other amounts treated as
wages from an employer who paid at least 80 percent of the claimant's wages in his

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or her base period (period preceding a claim during which benefit rights accrue) for
any week, the claimant is not eligible to receive benefits for that week if the claimant
works for at least 35 hours for that employer in that week and receives pay at not less
than the rate of pay that the claimant received during the calendar quarter in his or
her base period in which the claimant received his or her highest wages, or the
claimant receives certain other payments from that employer for that week that
alone or in combination with any paid wages equal at least the pay the claimant
would have received for 35 hours of work.

This bill provides that a claimant is subject to this disqualifier for any week if
the claimant receives wages or certain other amounts treated as wages from such an
employer for full-time work for that week. The bill defines "full-time work" as work
performed for 32 or more hours per week.

Currently, if an employee voluntarily terminates his or her work with an
employer, the employee is generally ineligible to receive benefits until four weeks
have elapsed since the end of the week in which the termination occurs and the
employee earns wages after the week in which the termination occurs equal to at
least four times the employee's weekly benefit rate in employment covered by the
unemployment insurance law of any state or the federal government. However, an
employee may terminate his or her work and receive benefits without requalifying
under this provision if the employee terminates his or her work with good cause
attributable to his or her employer. In addition, an employee may voluntarily
terminate his or her work and receive benefits without requalifying under this
provision if: a) the work is part-time work consisting of not more than 30 hours per
week and the employee is otherwise eligible to receive benefits because of the loss of
the employee's full-time work and the loss of the full-time work makes it
economically unfeasible to continue his or her part-time work; or b) the employee
terminates his or her work in one of two or more concurrently held positions at least
one of which consists of more than 30 hours per week, if the employee terminates his
or her work before receiving notice of termination from a position which consists of
more than 30 hours per week.

This bill changes the above exceptions so that an employee may receive benefits
without requalifying if, under a), the work from which the employee terminates is
part-time work; or, under b), the work from which the employee terminates is
full-time work and the termination occurs prior to receiving notice of termination
from full-time work. The bill defines "full-time work" as work consisting of 32 or
more hours per week and "part-time work" as work consisting of less than 32 hours
per week.

Currently, with certain exceptions and limitations, if a claimant receives a
pension, retirement, annuity, or other similar payment based on the previous work
of the claimant for a given week, DWD must reduce the claimant's UI benefits
otherwise payable for that week, but not below zero, by an amount equal to not more
than the amount of the payment received for that week. With certain exceptions, if
a payment is actually or constructively received on other than a periodic basis, DWD

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allocates the payment to specific weeks for purposes of the required reduction using
the claimant's most recent full weekly wage rate or another reasonable basis. The
actual amount of the reduction depends upon the facts of the particular situation.

This bill provides that when a claimant actually or constructively receives a
pension, retirement, annuity, or similar payment based on the previous work of the
claimant on other than a periodic basis, DWD must allocate the entire payment to
the week in which it is received if DWD provides due notice of the proposed allocation
to the claimant before the allocation is made. In most cases, the change reduces the
amount of the reduction currently required.

Currently, with certain exceptions, if a claimant earns wages in a given week
in employment covered by the UI law, the first $30 of the wages are disregarded and
the claimant's weekly benefit payment is reduced by 67 percent of the remaining
amount of wages earned. Whether a bonus or profit-sharing payment is earned in
the same week in which it is paid depends upon the particular facts of a given
situation.

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.

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.

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

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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.

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.

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.

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,

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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.

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.

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.

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.