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AB-1854 Unemployment insurance: work sharing plans. (2021-2022)

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Date Published: 07/21/2022 09:00 PM
AB1854:v96#DOCUMENT

Assembly Bill No. 1854
CHAPTER 112

An act to amend Section 1279.7 of the Unemployment Insurance Code, relating to unemployment insurance.

[ Approved by Governor  July 19, 2022. Filed with Secretary of State  July 19, 2022. ]

LEGISLATIVE COUNSEL'S DIGEST


AB 1854, Boerner Horvath. Unemployment insurance: work sharing plans.
Existing law provides for the payment of unemployment compensation benefits to eligible persons who are unemployed through no fault of their own. Existing law deems an employee unemployed in any week if the employee works less than their usual weekly hours of work for the employee’s regular employer as the result of the employer’s participation in a work sharing plan that meets specified requirements and has been approved by the Director of Employment Development, pursuant to which the employer, in lieu of layoff, reduces employment and stabilizes the workforce. Existing law requires an employer who wishes to participate in the work sharing program to submit to the director a signed, written work sharing plan application form that meets specified requirements.
Existing law, until January 1, 2024, creates an alternative process for the submission and approval of employer work sharing plan applications. Existing law requires the Director of Employment Development to accept an application to participate in, or renew participation in, the work sharing program that is submitted electronically and requires the Employment Development Department to create a portal on its internet website for the provision and receipt of these applications. For work sharing plan applications submitted by eligible employers between September 15, 2020, and September 1, 2023, existing law requires that, upon approval by the director, they be deemed approved for one year, except as specified. Existing law requires the department to mail to an eligible employer a claim packet for each participating employee within 5 business days following approval of the application. Existing law also requires the department, among other things, to make online claim forms available to the approved employer for each participating employee within 5 business days following approval of the application if an employer submitted its work sharing plan application online.
This bill would extend these provisions indefinitely, and would require the department to accept electronic signatures on all work sharing plan documents. The bill would, beginning September 15, 2020, require that work sharing plan applications submitted by eligible employers, upon approval by the director, be deemed approved for one year, except as specified.
Vote: MAJORITY   Appropriation: NO   Fiscal Committee: YES   Local Program: NO  

The people of the State of California do enact as follows:


SECTION 1.

 Section 1279.7 of the Unemployment Insurance Code is amended to read:

1279.7.
 (a) Notwithstanding subdivision (c) of Section 1279.5, the director shall accept a work sharing plan application submitted electronically by an employer wishing to participate in, or renew participation in, the work sharing program. The department shall create a portal on its internet website for the provision and receipt of these applications.
(b) Beginning September 15, 2020, work sharing plan applications submitted by eligible employers to participate in, or renew participation in, the work sharing program, upon approval by the director, shall be deemed approved for one year, unless a shorter plan is requested by the employer and approved by the director pursuant to subdivision (e) of Section 1279.5. The department shall mail to an eligible employer a claim packet for each participating employee within five business days following approval of the application. For an employer that submitted a work sharing plan application online, the department shall make online claim forms available to the approved employer for each participating employee within five business days following approval of the application. After the participating employer and employees complete and submit the documents in the claim packet, the department shall establish an unemployment insurance claim pursuant to applicable requirements. Participating employers and employees shall meet the required unemployment insurance claim filing and weekly certification requirements and employers shall be responsible for the completeness and integrity of each work sharing certification form issued to a participating employee.
(c) Notwithstanding any other law, the department shall accept electronic signatures on all work sharing plan documents.
(d) The provisions of this section shall be implemented consistently with the requirements of federal law.