Currently, employees performing services for the federal AmeriCorps program
are generally covered under the unemployment insurance law. This bill eliminates
coverage for those services when the services are funded under certain special
federal grants to governmental, nonprofit, or educational entities, except for services
performed as a part of a professional corps program in which a public or private
nonprofit employer pays the entire salaries of the employees or services performed
under an education award program established administratively by the federal
government. Under the bill, employers that provide these services are no longer
subject to contribution or reimbursement requirements based upon these services,
and claimants are no longer eligible to claim benefits based upon the performance
of these services.
Failure of employers to provide information
Currently, if benefits are erroneously paid because an employer fails to provide
correct and complete information on a report to DWD, any benefits that DWD
recovers do not affect charges to the employer's account for the cost of those benefits.
The bill provides, in addition, that during the period beginning on January 1, 2006,
and ending on June 28, 2008, if benefits are erroneously paid because an employer
fails to provide correct and complete information requested by DWD during a
fact-finding investigation, but the employer later provides the requested
information, then charges to the employer's account for the cost of benefits paid
before the end of the week in which a redetermination or a decision of an appeal
tribunal (hearing examiner) is issued regarding the matter are not affected by the
redetermination or decision unless an appeal tribunal, the labor and industry review
commission, or a court finds that the employer had good cause for failing to provide
the information.
Suspension of agents
Currently, DWD may suspend the privilege of any agent to appear before DWD
at hearings under the unemployment insurance law for a specified period if DWD
finds that the agent has engaged in an act of fraud or misrepresentation, has
repeatedly failed to comply with rules of DWD, or has engaged in solicitation of a
claimant solely for the purpose of appearing at a hearing as the claimant's
representative for pay. This bill permits DWD also to suspend the privilege of an
agent to act as an employer's representative under the unemployment insurance law
for up to one year if, during any 12-month period, in 5 percent or more of all hearings
held in which employers represented by the agent are appellants there is a final
decision finding that the employer represented by the agent failed to provide correct
and complete information requested by DWD during a fact-finding investigation
and there is no finding that the employer had good cause for that failure.
Issuance of warrants against certain individuals
Currently, under certain conditions, an individual who holds at least 20 percent
of the ownership interest in a corporation or limited liability company may be found
to be personally liable for unemployment insurance liabilities of the corporation or
company. Currently, if an employer has delinquent unemployment insurance
liabilities, DWD may issue a warrant and file it with the clerk of circuit court for any
county where real or personal property of the employer is found. The warrant
constitutes a lien upon the property and is subject to execution through sale of the
property. This bill provides that DWD may issue a warrant for the collection of any
unemployment insurance liabilities for which an individual is found to be personally
liable.
Unemployment insurance law enforcement
This bill provides funding for 0.5 FTE assistant attorney general position in the
Department of Justice (DOJ), funded from revenues received by DWD as interest
and penalties for violations of the unemployment insurance law, to assist in the
investigation and prosecution of noncompliance with the unemployment insurance
law. The bill also authorizes DOJ to prosecute violations of the unemployment
insurance law. Currently, the law is enforced by DWD and the district attorneys.
Administration funding
Currently, the federal government provides regular grants to this state for the
purpose of financing the cost of unemployment insurance administration. In
addition, the federal government provides special grants to this state that may be
used for the purpose of unemployment insurance administration, for the payment of
unemployment insurance benefits, or for certain other purposes.
Currently, only the first $2,389,107 of the moneys in a special grant for federal
fiscal year 2002 may be used for unemployment insurance administration. This bill
permits an additional $1,000,000 of the moneys received in the special grant for
federal fiscal year 2002 to be used for unemployment insurance administration. The
bill further provides that none of the moneys in any special federal grant for federal
fiscal years 2000, 2001, or 2002 may be encumbered or expended after September 30,
2007. The changes potentially increase the liability of employers to finance
unemployment insurance benefits through contributions (taxes).
Use of special federal grants
Currently, from the special grants received by this state from the federal
government for unemployment insurance purposes, special sum certain
appropriations are made for information technology systems development, the
apprenticeship program, and payment of bank service costs. If the treasurer of the
unemployment reserve fund determines that these moneys are more than sufficient
for these purposes, the treasurer must transfer any excess moneys in these
appropriation accounts to the main account to which federal unemployment
insurance revenues are credited. This bill eliminates the requirement for the
treasurer to make these transfers.
Treatment of limited liability companies
Currently, DWD treats a limited liability company as a corporation if the
company files an election with the Internal Revenue Service to be so treated for
federal tax purposes and files proof with DWD that the Internal Revenue Service has
agreed to so treat the company. The treatment may affect the taxation of the wages
paid to principal officers of the company and their eligibility for benefits. For benefit
purposes, a change is effective on the same date that the Internal Revenue Service
agrees to treat the company as a corporation or the date that proof of such treatment
is filed with DWD, whichever is later. Under this bill, a change applies to benefit
years (periods during which benefits are potentially payable) in existence on or
beginning on or after the date that the Internal Revenue Service treats the company
as a corporation for federal tax purposes if the benefit year to which the treatment
is to be applied has not ended on the date that DWD first receives notice of a benefit
eligibility issue that relates to treatment of that limited liability company. The bill
also makes a corresponding change to the treatment of a limited liability company
that is treated as a corporation if the company elects, instead, to be treated as a
partnership or sole proprietorship and the company files the appropriate election
and proof of federal treatment.
Administrative levy fees
Currently, DWD may proceed against any third party that has in its possession
property that is subject to levy for payment of delinquent contributions or penalties
administratively assessed by DWD, or for repayment of benefit overpayments. The
third party may deduct and retain a fee of $5 from the amount collected in payment
of the fee. This bill entitles a third party to collect and retain a levy fee of $5 for each
levy in which a debt is satisfied by means of a single payment and $15 for each levy
in which a debt is satisfied by means of more than one payment. Under the bill, the
fee is payable from the property levied against and is in addition to the amount of the
levy.
Enforcement of assessments against imposters
Currently, if any person makes a false statement or representation to obtain
benefits in the name of another person, DWD may, by administrative action or by
decision in an administrative proceeding, require the person to repay the benefits
and may also penalize the person by levying an assessment against him or her in an
amount not greater than 50 percent of the benefits wrongfully obtained. One of the
ways by which DWD may collect such an assessment is to offset the amount of the
assessment against any benefits that would otherwise be payable to the person. This
process is called recoupment. This bill deletes the authority of DWD to collect these
assessments by means of recoupment.
Wage reports by nonprofit organizations and Indian tribes
Currently, all employers except nonprofit organizations and Indian tribes are
required to submit periodic reports to DWD containing certain employment and
wage information. This bill applies the same requirement to nonprofit organizations
and Indian tribes.
Admission of employment data system reports
Currently, the contents of a verified or certified report by a qualified expert
presented by a party or DWD at an administrative hearing in a benefit claim case
is prima facie evidence of the matter contained in the report if the report is otherwise
competent and relevant, subject to rules as DWD prescribes. If a report is accepted
as prima facie evidence of the matter contained in the report, it is not necessary to
present testimony of the expert who created the report in order to admit the report
into evidence.
This bill provides that if DWD maintains a database system consisting of
occupational information and employment conditions data and an employee of DWD
creates a report from the system, the report also constitutes prima facie evidence as
to the matters contained in the report in an administrative hearing on a benefit claim
if DWD first provides to the parties an explanation of the system, the parties have
an opportunity to review and object to the report, and the report sets forth all
information used in creating the report.
Charging of certain benefits for claimants enrolled in approved training
Under current law, if a claimant who is enrolled in employment-related
training approved by DWD is paid benefits for which the claimant would otherwise
be ineligible because the claimant has terminated his or her work or failed to accept
suitable work or recall to work and is unable to work or unavailable for work or has
failed to meet work search requirements, the costs of the benefits is charged to the
balancing account of the unemployment reserve fund (which is financed from
contributions of all employers that are subject to a requirement to pay contributions)
instead of to the account or accounts of the claimant's employer or employers. This
bill specifically applies this noncharging procedure only with respect to an employer
from which the claimant terminated his or her work or refused to accept a recall to
work.
Study of unemployment reserve fund
This bill directs DWD to study the long-term fiscal stability of the
unemployment reserve fund. The bill directs DWD to report the results of its study
to the Council on Unemployment Insurance no later than July 1, 2007.
Because this bill creates a new crime or revises a penalty for an existing crime,
the Joint Review Committee on Criminal Penalties may be requested to prepare a
report concerning the proposed penalty and the costs or savings that are likely to
result if the bill is enacted.
For further information see the state 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:
SB426, s. 1
1Section
1. 20.005 (3) (schedule) of the statutes: at the appropriate place, insert
2the following amounts for the purposes indicated:
-
See PDF for table ![PDF](https://docs.legis.wisconsin.gov/assets/image/file_acrobat.gif)
SB426, s. 2
3Section
2. 20.445 (1) (gd) of the statutes is amended to read:
SB426,11,12
120.445
(1) (gd)
Unemployment interest and penalty payments. From the
2moneys received as interest and penalties collected under ss. 108.04 (11) (c) and (cm)
3and 108.22, assessments under s. 108.19 (1m)
, and forfeitures under s. 103.05 (5), all
4moneys not appropriated under pars. (ge), (gf)
and, (gg)
, and (gi), and all moneys
5transferred to this appropriation account from the appropriation account under par.
6(gh) for the payment of benefits specified in s. 108.07 (5) and
1987 Wisconsin Act 38,
7section
132 (1) (c), for the payment of interest to employers under s. 108.17 (3m), for
8the payment of interest due on advances from the federal unemployment account
9under title XII of the social security act to the unemployment reserve fund, and for
10payments made to the unemployment reserve fund to obtain a lower interest rate or
11deferral of interest payments on these advances, except as otherwise provided in s.
12108.20.
SB426, s. 3
13Section
3. 20.445 (1) (gi) of the statutes is created to read:
SB426,11,1714
20.445
(1) (gi)
Unemployment insurance law enforcement. From the moneys
15received as interest and penalties collected under ss. 108.04 (11) (c) and (cm) and (13)
16(c) and 108.22, as a continuing appropriation, the amounts in the schedule for the
17purpose of assisting the department of justice in the enforcement of ch. 108.
SB426, s. 4
18Section
4. 20.445 (1) (nb) of the statutes is amended to read:
SB426,12,519
20.445
(1) (nb)
Unemployment administration; information technology
20systems; federal moneys. From the moneys received from the federal government
21under section 903 (d) of the federal Social Security Act, as amended, as a continuing
22appropriation, the amounts in the schedule, as authorized by the governor under s.
2316.54, for the purpose specified in s. 108.19 (1e) (d). All moneys transferred from par.
24(n) for this purpose shall be credited to this appropriation account.
Notwithstanding
25s. 20.001 (
3) (a), the treasurer of the unemployment reserve fund shall transfer any
1unencumbered balance in this appropriation account that is not needed or available
2to carry out the purpose of this appropriation to the appropriation account under par.
3(n). No moneys may be expended from this appropriation unless the treasurer of the
4unemployment reserve fund determines that such expenditure is currently needed
5for the purpose specified in s. 108.19 (1e) (d).
SB426, s. 5
6Section
5. 20.445 (1) (nc) of the statutes is amended to read:
SB426,12,137
20.445
(1) (nc)
Unemployment insurance administration; special federal
8moneys. All moneys received from the federal government under section 903 of the
9federal Social Security Act, as amended, for federal fiscal years 2000 and 2001 and
10the first
$2,289,107 $3,289,107 of the moneys received from the federal government
11under that act for federal fiscal year 2002, as authorized by the governor under s.
1216.54, to be used for administration of unemployment insurance.
No moneys may
13be encumbered or expended from this appropriation after September 30, 2007.
SB426, s. 6
14Section
6. 20.445 (1) (nd) of the statutes is amended to read:
SB426,13,215
20.445
(1) (nd)
Unemployment insurance administration; apprenticeship. 16From the moneys received from the federal government under section 903 (d) of the
17federal Social Security Act, as amended, the amounts in the schedule, as authorized
18by the governor under s. 16.54, to be used for administration by the department of
19apprenticeship programs under subch. I of ch. 106. All moneys transferred from par.
20(n) for this purpose shall be credited to this appropriation account.
Notwithstanding
21s. 20.001 (3) (a), the treasurer of the unemployment reserve fund shall transfer any
22unencumbered balance in this appropriation account that is not needed or available
23to carry out the purpose of this appropriation to the appropriation account under par.
24(n). No moneys may be expended from this appropriation unless the treasurer of the
1unemployment reserve fund determines that such expenditure is currently needed
2for the purpose specified in this paragraph.
SB426, s. 7
3Section
7. 20.445 (1) (ne) of the statutes is amended to read:
SB426,13,144
20.445
(1) (ne)
Unemployment administration; bank service costs. From the
5moneys received by this state under section 903 (d) of the federal Social Security Act,
6as amended, all moneys transferred from the appropriation account under par. (n)
7to be used for the payment of the cost of banking services incurred by the
8unemployment reserve fund.
Notwithstanding s. 20.001 (3) (c), the treasurer of the
9unemployment reserve fund shall transfer any unencumbered balance in this
10appropriation account that is not needed or available to carry out the purpose of this
11appropriation to the appropriation account under par. (n). No moneys may be
12expended from this appropriation unless the treasurer of the unemployment reserve
13fund determines that such expenditure is currently needed for the purpose specified
14in this paragraph.
SB426, s. 8
15Section
8. 108.02 (12) (a) of the statutes is amended to read:
SB426,13,1916
108.02
(12) (a) "Employee" means any individual who is or has been performing
17services
for pay for an employing unit,
in an employment, whether or not the
18individual is paid directly by
such the employing unit
;, except as provided in par. (b),
19(bm), (c), (d), (dm) or (dn).
SB426, s. 9
20Section
9. 108.02 (12) (dm) of the statutes is amended to read:
SB426,13,2321
108.02
(12) (dm) Paragraph (a) does not apply to an individual who owns a
22business that operates as a sole proprietorship
with respect to services the individual
23performs for that business.
SB426, s. 10
24Section
10. 108.02 (12) (dn) of the statutes is amended to read:
SB426,14,3
1108.02
(12) (dn) Paragraph (a) does not apply to a partner in a business that
2operates as a partnership
with respect to services the partner performs for that
3business.
SB426, s. 11
4Section
11. 108.02 (15) (j) 5. and 6. of the statutes are amended to read:
SB426,14,95
108.02
(15) (j) 5. In any quarter in the employ of any organization exempt from
6federal income tax under section
501 (a) of the internal revenue code, other than an
7organization described in section 401 (a) or 501 (c) (3) of such code, or under section
8521 of the internal revenue code, if the remuneration for such service is less than $50;
9or
SB426,14,1610
6. By a nonresident alien for the period that he or she is temporarily present
11in the United States as a nonimmigrant under
8 USC 1101 (a) (15) (F), (J), (M), or
12(Q), if the service is performed to carry out the purpose for which the alien is admitted
13to the United States, as provided in
8 USC 1101 (a) (15) (F), (J), (M), or (Q), or by the
14spouse or minor child of such an alien if the spouse or child was also admitted to the
15United States under
8 USC 1101 (a) (15) (F), (J), (M), or (Q) for the same purpose
.;
16or
SB426, s. 12
17Section
12. 108.02 (15) (j) 7. of the statutes is created to read:
SB426,14,2218
108.02
(15) (j) 7. By an individual who is a participant in the AmeriCorps
19program in a program that is funded under
42 USC 12581 (a) or (d) (1) or (2), except
20service performed pursuant to a professional corps program as described in
42 USC
2112572 (a) (8) or service performed pursuant to an innovative education award only
22program under
42 USC 12653 (b).
SB426, s. 13
23Section
13. 108.02 (15) (k) 14. of the statutes is repealed.
SB426, s. 14
24Section
14. 108.02 (21) (b) of the statutes is amended to read:
SB426,15,5
1108.02
(21) (b) Notwithstanding par. (a),
except as provided in s. 108.151 (7)_
2(a), an employer's payroll includes only the first $10,500 of wages paid by an
3employer to an individual during a calendar year, including any wages paid for any
4work covered by the unemployment insurance law of any other state, except as
5authorized in s. 108.17 (5).
SB426, s. 15
6Section
15. 108.02 (21e) (intro.) and (b) of the statutes are amended to read:
SB426,15,127
108.02
(21e) Professional employer organization. (intro.) "Professional
8employer organization" means any person who contracts to provide the
9nontemporary, ongoing employee workforce of
a client
more than one client under
10a written leasing contract
, the majority of whose clients are not under the same
11ownership, management, or control as the person other than through the terms of
12the contract, and who under contract and in fact:
SB426,15,1413
(b) Sets the rate of pay of the employees, whether or not through negotiations
14and whether or not the responsibility to set the rate of pay is shared with the client;
SB426, s. 16
15Section
16. 108.04 (1) (b) 1. of the statutes is amended to read:
SB426,15,2016
108.04
(1) (b) 1. While the employee is unable to work, or unavailable for work,
17if his or her employment with an employer was suspended by the employee or by the
18employer or was terminated by the employer because the employee was unable to do,
19or unavailable for, suitable work otherwise available with the employer
, except as
20provided in par. (c);
SB426, s. 17
21Section
17. 108.04 (1) (b) 3. (intro.) of the statutes is amended to read:
SB426,15,2422
108.04
(1) (b) 3. While the employee is on family or medical leave under the
23federal family and medical leave act of 1993 (P.L.
103-3) or s. 103.10,
and except as
24provided in par. (c), until whichever of the following occurs first:
SB426, s. 18
25Section
18. 108.04 (1) (c) of the statutes is amended to read:
SB426,16,14
1108.04
(1) (c) If a leave of absence
under par. (b) 2. or a family or medical leave
2under par. (b) 3. is granted to an employee for a portion of a week,
if an employee is
3absent for only a portion of the available work in a week due to a suspension under
4par. (b) 1., or if an employee is absent for only a portion of the available work in a week
5in which a termination under par. (b) 1. occurs, the employee's eligibility for benefits
6for that partial week shall be reduced by the amount of wages that the employee
7could have earned in his or her work had the leave not been granted
or had the
8suspension or termination not occurred. For purposes of this paragraph, the
9department shall treat the amount the employee would have earned as wages in that
10work for that week as wages earned by the employee and shall apply the method
11specified in s. 108.05 (3) (a) to compute the benefits payable to the employee. The
12department shall estimate the wages that an employee would have earned for a
13partial week if it is not possible to compute the exact amount of wages that the
14employee would have earned for that partial week.
SB426, s. 19
15Section
19. 108.04 (1) (e) of the statutes is repealed.
SB426, s. 20
16Section
20. 108.04 (5) of the statutes is amended to read:
SB426,17,1117
108.04
(5) Discharge for misconduct.
An Unless sub. (5g) applies, an 18employee whose work is terminated by an employing unit for misconduct connected
19with the employee's work is ineligible to receive benefits until 7 weeks have elapsed
20since the end of the week in which the discharge occurs and the employee earns
21wages after the week in which the discharge occurs equal to at least 14 times the
22employee's weekly benefit rate under s. 108.05 (1) in employment or other work
23covered by the unemployment insurance law of any state or the federal government.
24For purposes of requalification, the employee's weekly benefit rate shall be that rate
25which would have been paid had the discharge not occurred. The wages paid to an
1employee by an employer which terminates employment of the employee for
2misconduct connected with the employee's employment shall be excluded from the
3employee's base period wages under s. 108.06 (1) for purposes of benefit entitlement.
4This subsection does not preclude an employee who has employment with an
5employer other than the employer which terminated the employee for misconduct
6from establishing a benefit year using the base period wages excluded under this
7subsection if the employee qualifies to establish a benefit year under s. 108.06 (2) (a).
8The department shall charge to the fund's balancing account any benefits otherwise
9chargeable to the account of an employer that is subject to the contribution
10requirements under ss. 108.17 and 108.18 from which base period wages are
11excluded under this subsection.
SB426, s. 21
12Section
21. 108.04 (5g) of the statutes is created to read:
SB426,17,2313
108.04
(5g) Discharge for failure to notify employer of absenteeism or
14tardiness. (a) If an employee is discharged for failing to notify his or her employer
15of absenteeism or tardiness that becomes excessive, and the employer has complied
16with the requirements of par. (d) with respect to that employee, the employee is
17ineligible to receive benefits until 6 weeks have elapsed since the end of the week in
18which the discharge occurs and the employee earns wages after the week in which
19the discharge occurs equal to at least 6 times the employee's weekly benefit rate
20under s. 108.05 (1) in employment or other work covered by the unemployment
21insurance law of any state or the federal government. For purposes of
22requalification, the employee's weekly benefit rate shall be the rate that would have
23been paid had the discharge not occurred.
SB426,18,3
1(b) For purposes of this subsection, tardiness becomes excessive if an employee
2is late for 6 or more scheduled workdays in the 12-month period preceding the date
3of the discharge without providing adequate notice to his or her employer.
SB426,18,74
(c) For purposes of this subsection, absenteeism becomes excessive if an
5employee is absent for 5 or more scheduled workdays in the 12-month period
6preceding the date of the discharge without providing adequate notice to his or her
7employer.
SB426,18,98
(d) 1. The requalifying requirements under par. (a) apply only if the employer
9has a written policy on notification of tardiness or absences that:
SB426,18,1010
a. Defines what constitutes a single occurrence of tardiness or absenteeism;
SB426,18,1211
b. Describes the process for providing adequate notice of tardiness or absence;
12and
SB426,18,1413
c. Notifies the employee that failure to provide adequate notice of an absence
14or tardiness may lead to discharge.
SB426,18,1715
2. The employer shall provide a copy of the written policy under subd. 1. to each
16employee and shall have written evidence that the employee received a copy of that
17policy.
SB426,18,2018
3. The employer must have given the employee at least one warning concerning
19the employee's violation of the employer's written policy under subd. 1. within the
2012-month period preceding the date of the discharge.
SB426,18,2221
4. The employer must apply the written policy under subd. 1. uniformly to all
22employees of the employer.
SB426,19,223
(e) The department shall charge to the fund's balancing account the cost of any
24benefits paid to an employee that are otherwise chargeable to the account of an
1employer that is subject to the contribution requirements under ss. 108.17 and
2108.18 if the employee is discharged by that employer and par. (a) applies.
SB426,19,63
(f) This subsection applies only to discharges occurring during the period
4beginning on the first Sunday that follows the 90th day beginning after the effective
5date of this paragraph .... [revisor inserts date], and ending on the last day of the
64-year period that begins on that Sunday.
SB426, s. 22
7Section
22. 108.04 (7) (f) of the statutes is repealed.
SB426, s. 23
8Section
23. 108.04 (13) (c) of the statutes is amended to read:
SB426,20,79
108.04
(13) (c) If an employer, after notice of a benefit claim, fails to file an
10objection to the claim under s. 108.09 (1), any benefits allowable under any resulting
11benefit computation shall, unless the department applies a provision of this chapter
12to disqualify the claimant, be promptly paid. Except as otherwise provided in this
13paragraph, any eligibility question in objection to the claim raised by the employer
14after benefit payments to the claimant are commenced does not affect benefits paid
15prior to the end of the week in which a determination is issued as to the eligibility
16question unless the benefits are erroneously paid without fault on the part of the
17employer.
If, during the period beginning on January 1, 2006, and ending on June
1828, 2008, an employer fails to provide correct and complete information requested by
19the department during a fact-finding investigation, but later provides the requested
20information, charges to the employer's account for benefits paid prior to the end of
21the week in which a redetermination is issued regarding the matter or, if no
22redetermination is issued, prior to the end of the week in which an appeal tribunal
23decision is issued regarding the matter, are not affected by the redetermination or
24decision, except as provided in par. (g). If benefits are erroneously paid because the
25employer and the employee are at fault, the department shall charge the employer
1for the benefits and proceed to create an overpayment under s. 108.22 (8) (a). If
2benefits are erroneously paid without fault on the part of the employer, regardless
3of whether the employee is at fault, the department shall charge the benefits as
4provided in par. (d), unless par. (e) applies, and proceed to create an overpayment
5under s. 108.22 (8) (a). If benefits are erroneously paid because an employer is at
6fault and the department recovers the benefits erroneously paid under s. 108.22 (8),
7the recovery does not affect benefit charges made under this paragraph.