Currently, with certain exceptions, an employee is eligible to receive benefits
for any week in which the employee receives no wages only if the employee is able
to work and available for work during that week. If an employee is incarcerated for
an offense that constitutes misconduct connected with his or her employment, the
employee is ineligible to receive benefits until the employee requalifies, and any
wages earned with the discharging employer are discounted in determining the
employee's benefit amount. This bill provides, in addition, that an employee's weekly
benefit amount is reduced by one-fifth for each day of any week in which the
employee is incarcerated for up to 5 days in a week.
Authority of appeal tribunals
Currently, DWD is directed by law to appoint appeal tribunals to
administratively hear and decide disputed UI claims and other matters arising
under the UI law. This bill provides that the actions of appeal tribunals must be
consistent with applicable state and federal law.

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:
AB457, s. 1 1Section 1. 108.04 (1) (j) of the statutes is created to read:
AB457,4,42 108.04 (1) (j) The department shall reduce an employee's weekly benefit
3amount by one-fifth for each day of any week in which that the employee is
4incarcerated for up to 5 days in a week.
AB457, s. 2 5Section 2. 108.04 (5) of the statutes is amended to read:
AB457,5,46 108.04 (5) Discharge for misconduct. Unless sub. (5g) results in
7disqualification, an
An employee whose work is terminated by an employing unit for
8misconduct connected with the employee's work is ineligible to receive benefits until
97 weeks have elapsed since the end of the week in which the discharge occurs and
10the employee earns wages after the week in which the discharge occurs equal to at
11least 14 times the employee's weekly benefit rate under s. 108.05 (1) in employment
12or other work covered by the unemployment insurance law of any state or the federal
13government. For purposes of requalification, the employee's weekly benefit rate
14shall be that rate which would have been paid had the discharge not occurred. The
15wages paid to an employee by an employer which terminates employment of the
16employee for misconduct connected with the employee's employment shall be
17excluded from the employee's base period wages under s. 108.06 (1) for purposes of
18benefit entitlement. This subsection does not preclude an employee who has
19employment with an employer other than the employer which terminated the
20employee for misconduct from establishing a benefit year using the base period
21wages excluded under this subsection if the employee qualifies to establish a benefit

1year under s. 108.06 (2) (a). The department shall charge to the fund's balancing
2account any benefits otherwise chargeable to the account of an employer that is
3subject to the contribution requirements under ss. 108.17 and 108.18 from which
4base period wages are excluded under this subsection.
AB457, s. 3 5Section 3. 108.04 (5g) of the statutes is repealed.
AB457, s. 4 6Section 4. 108.04 (6) of the statutes is repealed and recreated to read:
AB457,5,207 108.04 (6) Discharge or suspension for certain conduct or violation of
8certain work rules or policies.
(a) Unless sub. (5) results in disqualification, an
9employee who is discharged for intentional conduct connected with his or her
10employment that a reasonable person would not engage in, if the conduct is
11documented by the employee's employer and the employee knew or should have
12known that the conduct would not be considered reasonable by the employer, or for
13a knowing violation of a reasonable and uniformly enforced rule or policy of the
14employer, when reasonably applied, is ineligible to receive benefits until 6 weeks
15have elapsed since the end of the week in which the discharge occurs and the
16employee earns wages after the week in which the discharge occurs equal to at least
176 times the employee's weekly benefit rate under s. 108.05 (1) in employment or other
18work covered by the unemployment insurance law of any state or the federal
19government. For purposes of requalification, the employee's weekly benefit rate is
20the rate that would have been paid had the discharge not occurred.
AB457,5,2221 (b) To find that an employee engaged in a single, knowing violation of a rule or
22policy of the employer, the department must find that:
AB457,5,2423 1. The employee knew or should have known of the rule or policy because it was
24effectively communicated to the employee;
AB457,5,2525 2. The employee's conduct violated the rule or policy; and
AB457,6,1
13. The employee was aware that he or she was engaged in such conduct.
AB457,6,112 (c) In determining whether a rule or policy was effectively communicated to the
3employee under par. (b) 1. the department may consider the manner in which the rule
4or policy was communicated. If the department considers the manner in which the
5rule or policy was communicated, the department shall consider evidence of the
6employer's actions, including posting of the rule or policy within the employer's
7premises at a place likely to be observed by employees, explanation of the rule or
8policy at a training or orientation session, verbal explanation of the rule or policy to
9the employee, a warning or other disciplinary action in relation to the rule or policy,
10distribution of a document to the employee containing a statement of the rule or
11policy and evidence of the employee's receipt of such a document.
AB457,6,1412 (d) If a violation of a rule or policy under par. (a) requires an intentional act,
13the department shall determine whether the employee intended to violate the rule
14or policy.
AB457,6,1915 (e) To find that a rule or policy instituted by an employer is reasonable, the
16department must find that the rule or policy furthers the employer's lawful business
17interest. The department may find that a rule or policy is reasonable on its face. If
18evidence is offered to demonstrate that a rule or policy is unreasonable, the
19department may consider whether:
AB457,6,2120 1. The rule or policy is reasonable in light of the employer's lawful business
21interest; or
AB457,6,2322 2. There is a clear relationship between the rule or policy, the conduct
23regulated, and the employer's lawful business interest.
AB457,7,3
1(f) To find that a rule or policy of an employer is uniformly enforced, the
2department must find that similarly situated employees who are subject to the rule
3or policy are treated in a similar manner when a rule or policy is violated.
AB457,7,54 (g) To find that a rule or policy of an employer is reasonably applied, the
5department must find that:
AB457,7,76 1. The adverse personnel action taken by the employer is appropriate in light
7of the violation of the rule or policy and the employer's lawful business interest; and
AB457,7,98 2. There were no compelling circumstances that would have prevented the
9employee from adhering to the rule or policy.
AB457,7,1310 (h) An employee who is suspended rather than discharged for intentional
11conduct or any violation under par. (a) is ineligible to receive benefits until 3 weeks
12have elapsed since the end of the week in which the suspension occurs or until the
13suspension is terminated, whichever occurs first.
AB457,7,1614 (i) This subsection does not preclude an employee from establishing a benefit
15year during a period in which the employee is ineligible to receive benefits if the
16employee qualifies to establish a benefit year under s. 108.06 (2) (a).
AB457, s. 5 17Section 5. 108.04 (7) (h) of the statutes is amended to read:
AB457,7,2218 108.04 (7) (h) The department shall charge to the fund's balancing account
19benefits paid to an employee that are otherwise chargeable to the account of an
20employer that is subject to the contribution requirements of ss. 108.17 and 108.18
21if the employee voluntarily terminates employment with that employer and par. (a),
22(c), (d), (e), (k), (L), (o), (p), (q), or (s), or (t) applies.
AB457, s. 6 23Section 6. 108.04 (7) (t) of the statutes is repealed.
AB457, s. 7 24Section 7. 108.06 (1) of the statutes is amended to read:
AB457,8,10
1108.06 (1) Except as provided in subs. (6) and (7) and ss. 108.141 and 108.142,
2no claimant may receive total benefits based on employment in a base period greater
3than 26 times the claimant's weekly benefit rate under s. 108.05 (1) or 40% of the
4claimant's base period wages, whichever is lower. Except as provided in subs. (6) and
5(7) and ss. 108.141 and 108.142, if a claimant's base period wages are reduced or
6canceled under s. 108.04 (1) (j) or (5) or (18), or suspended under s. 108.04 (1) (f), (10)
7(a), or (17), the claimant may not receive total benefits based on employment in a base
8period greater than 26 times the claimant's weekly benefit rate under s. 108.05 (1)
9or 40% of the base period wages not reduced, canceled or suspended which were paid
10or payable to the claimant, whichever is lower.
AB457, s. 8 11Section 8. 108.06 (7) (b) (intro.) of the statutes is amended to read:
AB457,8,1512 108.06 (7) (b) (intro.) Except as provided in pars. (f) and, (g), and (k), a claimant
13who is otherwise eligible for benefits and who is currently enrolled in a training
14program is eligible, while enrolled in that training program, for additional benefits
15under this subsection provided that the claimant:
AB457, s. 9 16Section 9. 108.06 (7) (k) of the statutes is created to read:
AB457,8,2217 108.06 (7) (k) If the average rate of total unemployment in this state, seasonally
18adjusted, as determined by the U.S. secretary of labor, for any calendar quarter, is
19equal to or lower than 6.5 percent, the department shall publish a notice to that effect
20in the Wisconsin administrative register. No claimant may qualify to begin receiving
21benefits under par. (b) in any week beginning after the department publishes a notice
22under this paragraph.
AB457, s. 10 23Section 10. 108.09 (3) (b) of the statutes is amended to read:
AB457,9,324 108.09 (3) (b) The Consistently with applicable state and federal law, the
25appeal tribunal may affirm, reverse or modify the initial determination of the

1department or set aside the determination and remand the matter to the department
2for further proceedings, or may remand to the department for consideration of any
3issue not previously investigated by the department.
AB457, s. 11 4Section 11. 108.14 (8n) (e) of the statutes is amended to read:
AB457,9,185 108.14 (8n) (e) The department shall charge this state's share of any benefits
6paid under this subsection to the account of each employer by which the employee
7claiming benefits was employed in the applicable base period, in proportion to the
8total amount of wages he or she earned from each employer in the base period, except
9that if s. 108.04 (1) (f), (5), (7) (a), (c), (d), (e), (k), (L), (o), (p), (q), or (s), or (t), (7m) or
10(8) (a) or 108.07 (3), (3r), (5) (b) or (8) would have applied to employment by such an
11employer who is subject to the contribution requirements of ss. 108.17 and 108.18,
12the department shall charge the share of benefits based on employment with that
13employer to the fund's balancing account, or, if s. 108.04 (1) (f) or (5) or 108.07 (3)
14would have applied to an employer that is not subject to the contribution
15requirements of ss. 108.17 and 108.18, the department shall charge the share of
16benefits based on that employment in accordance with s. 108.07 (5) (a) and (b). The
17department shall also charge the fund's balancing account with any other state's
18share of such benefits pending reimbursement by that state.
AB457, s. 12 19Section 12. 108.141 (3g) (d) of the statutes is amended to read:
AB457,9,2520 108.141 (3g) (d) Notwithstanding s. 108.04 (6) and (7), a claimant who was
21disqualified from receipt of benefits because of voluntarily terminating employment
22or incurring a disciplinary suspension for good cause being discharged for or
23incurring a disciplinary suspension for intentional conduct or for a knowing violation
24of a work rule or policy under s. 108.04 (6) (a)
is ineligible to receive extended benefits
25for the week in which the termination occurs or the suspension begins and for each

1week thereafter until he or she has again been employed during at least 4 subsequent
2weeks in employment or other work covered by the unemployment insurance law of
3any state or the federal government and earned wages for such work equal to at least
44 times his or her weekly extended benefit rate.
AB457, s. 13 5Section 13. 108.141 (7) (a) of the statutes is amended to read:
AB457,10,126 108.141 (7) (a) The department shall charge the state's share of each week of
7extended benefits to each employer's account in proportion to the employer's share
8of the total wages of the employee receiving the benefits in the employee's base
9period, except that if the employer is subject to the contribution requirements of ss.
10108.17 and 108.18 the department shall charge the share of extended benefits to
11which s. 108.04 (1) (f), (5), (7) (a), (c), (d), (e), (k), (L), (o), (p), (q), or (s), or (t), (7m) or
12(8) (a) or 108.07 (3), (3r), (5) (b) or (8) applies to the fund's balancing account.
AB457, s. 14 13Section 14. 108.16 (6m) (a) of the statutes is amended to read:
AB457,10,1614 108.16 (6m) (a) The benefits thus chargeable under s. 108.04 (1) (f), (5), (5g),
15(7) (h), (8) (a), (13) (c) or (d) or (16) (e), 108.07 (3), (3r), (5) (b), (5m), (6), or (8), 108.14
16(8n) (e), 108.141, 108.151, or 108.152 or sub. (6) (e) or (7) (a) and (b).
AB457, s. 15 17Section 15. 108.22 (1) (a) of the statutes is amended to read:
AB457,11,318 108.22 (1) (a) If any employer, other than an employer which has ceased
19business and has not paid or incurred a liability to pay wages in any quarter
20following the cessation of business, is delinquent in making by the assigned due date
21any payment to the department required of it under this chapter, the employer shall
22pay interest on the delinquent payment at the rate of one percent per that monthly
23rate that annualized is equal to 2 percent more than the prime rate as published in
24the Wall Street Journal as of September 30 of the preceding year for each
month or
25fraction thereof that the employer is delinquent from the date such payment became

1due. If any such employer is delinquent in making any quarterly report under s.
2108.205 (1) by the assigned due date, the employer shall pay a tardy filing fee of $50
3for each delinquent quarterly report.
AB457, s. 16 4Section 16. Initial applicability.
AB457,11,85 (1) The treatment of sections 108.04 (5), (5g), and (6), 108.141 (3g) (d), and
6108.16 (6m) (a) of the statutes first applies with respect to discharges and
7suspensions occurring on the first Sunday that follows the 90th day beginning after
8the effective date of this subsection.
AB457,11,119 (2) The treatment of sections 108.06 (7) (b) (intro.) and (k) of the statutes first
10applies with respect to weeks of unemployment beginning on the effective date of this
11subsection.
AB457,11,1412 (3) The treatment of sections 108.04 (1) (j) and 108.06 (1) of the statutes first
13applies with respect to weeks of unemployment beginning after the effective date of
14this subsection.
AB457,11,1715 (4) The treatment of sections 108.04 (7) (h) and (t), 108.14 (8n) (e), and 108.141
16(7) (a) of the statutes first applies with respect to terminations of employment
17occurring after the effective date of this subsection.
AB457,11,1918 (5) The treatment of section 108.22 (1) (a) of the statutes first applies with
19respect to liabilities incurred for the first quarter beginning in 2012.
AB457, s. 17 20Section 17. Effective date.
AB457,11,2121 (1) This act takes effect on the first Sunday after publication.
AB457,11,2222 (End)
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