1997 Wisconsin Act 39

39,29 Section 29 . 71.67 (7) (title) of the statutes is amended to read:

71.67 (7) (title) Withholding from unemployment compensation insurance .

39,30 Section 30 . 71.67 (7) (a) of the statutes, as affected by 1997 Wisconsin Act 3, is amended to read:

71.67 (7) (a) The department of workforce development may, in accordance with s. 108.135, deduct and withhold from any unemployment compensation insurance payment, on a form prepared by the department of workforce development, a portion of the payment as Wisconsin income tax. The department of workforce development shall deposit the amounts withheld, on a monthly basis, as provided in s. 108.135 (6).

39,31 Section 31 . 71.67 (7) (b) 2. of the statutes is amended to read:

71.67 (7) (b) 2. The gross amount of unemployment compensation insurance that is subject to withholding under par. (a).

39,32 Section 32 . 71.80 (16) (a) of the statutes is amended to read:

71.80 (16) (a) All nonresident persons, whether incorporated or not, engaging in construction contracting in this state as contractor or subcontractor and not otherwise regularly engaged in business in this state, shall file a surety bond with the department, payable to the department of revenue, to guarantee the payment of income or franchise taxes, required unemployment compensation insurance contributions, sales and use taxes and income taxes withheld from wages of employes, together with any penalties and interest thereon. The department shall approve the form and contents of such bond. The amount of the bond shall be 3% of the contract or subcontract price on all contracts of $50,000 or more or 3% of contractor's or subcontractor's estimated cost-and-profit under a cost-plus contract of $50,000 or more. When the aggregate of 2 or more contracts in one calendar year is $50,000 or more the amount of the bond or bonds shall be 3% of the aggregate amount of such contracts. Such surety bond must be filed within 60 days after construction is begun in this state by any such contractor or subcontractor on any contract the price of which is $50,000 or more (or the estimated cost-and-profit of which is $50,000 or more), or within 60 days after construction is begun in this state on any contract for less than $50,000, when the amount of such contract, when aggregated with any other contracts, construction on which was begun in this state in the same calendar year, equals or exceeds $50,000. If the department concludes that no bond is necessary to protect the tax revenues of the state, including contributions under ch. 108, the requirements under this subsection may be waived by the secretary of revenue or the secretary's designated departmental representative. The bond shall remain in force until the liability thereunder is released by the secretary or the secretary's designated departmental representative.

39,33 Section 33 . 71.80 (16) (a) of the statutes, as affected by 1997 Wisconsin Act 27, is amended to read:

71.80 (16) (a) All nonresident persons, whether incorporated or not, engaging in construction contracting in this state as contractor or subcontractor and not otherwise regularly engaged in business in this state, shall file a surety bond with the department, payable to the department, to guarantee the payment of income or franchise taxes, required unemployment compensation insurance contributions, sales and use taxes and income taxes withheld from wages of employes, together with any penalties and interest thereon. The department shall approve the form and contents of such bond. The amount of the bond shall be 3% of the contract or subcontract price on all contracts of $50,000 or more or 3% of contractor's or subcontractor's estimated cost-and-profit under a cost-plus contract of $50,000 or more. When the aggregate of 2 or more contracts in one calendar year is $50,000 or more the amount of the bond or bonds shall be 3% of the aggregate amount of such contracts. Such surety bond must be filed within 60 days after construction is begun in this state by any such contractor or subcontractor on any contract the price of which is $50,000 or more (or the estimated cost-and-profit of which is $50,000 or more), or within 60 days after construction is begun in this state on any contract for less than $50,000, when the amount of such contract, when aggregated with any other contracts, construction on which was begun in this state in the same calendar year, equals or exceeds $50,000. If the department concludes that no bond is necessary to protect the tax revenues of the state, including contributions under ch. 108, the requirements under this subsection may be waived by the secretary of revenue or the secretary's designated departmental representative. The bond shall remain in force until the liability thereunder is released by the secretary or the secretary's designated departmental representative.

39,34 Section 34 . 71.80 (16) (b) of the statutes is amended to read:

71.80 (16) (b) A construction contractor required to file a surety bond under par. (a) may, in lieu of such requirement, but subject to approval by the department, deposit with the state treasurer an amount of cash equal to the face of the bond that would otherwise be required. If an offer to deposit is made the department shall issue a certificate to the state treasurer authorizing said treasurer to accept payment of such moneys and to give his or her receipt therefor. A copy of such certificate shall be mailed to the contractor who shall, within the time fixed by the department, pay such amount to said treasurer. A copy of the receipt of the state treasurer shall be filed with the department. Upon final determination by the department of such contractor's liability for state income or franchise taxes, required unemployment compensation insurance contributions, sales and use taxes and income taxes withheld from wages of employes, interest and penalties, by reason of such contract or contracts, the department shall certify to the state treasurer the amount of taxes, penalties and interest as finally determined, shall instruct the treasurer as to the proper distribution of such amount, and shall state the amount, if any, to be refunded to such contractor. The state treasurer shall make the payments directed by such certificate within 30 days after receipt thereof. Amounts refunded to the contractor shall be without interest.

39,35 Section 35 . 101.654 (2) (c) of the statutes is amended to read:

101.654 (2) (c) If the applicant is required to make state unemployment compensation insurance contributions under ch. 108 or is required to pay federal unemployment compensation taxes under 26 USC 3301 to 3311, that the applicant is making those contributions or paying those taxes as required.

39,36 Section 36 . 102.28 (7) (b) of the statutes is amended to read:

102.28 (7) (b) Each employer exempted by written order of the department under sub. (2) shall pay into the fund established by sub. (8) a sum equal to that assessed against each of the other such exempt employers upon the issuance of an initial order. The order shall provide for a sum sufficient to secure estimated payments of the insolvent exempt employer due for the period up to the date of the order and for one year following the date of the order and to pay the estimated cost of insurance carrier or insurance service organization services under par. (c). Payments ordered to be made to the fund shall be paid to the department within 30 days. If additional moneys are required, further assessments shall be made based on orders of the department with assessment prorated on the basis of the gross payroll for this state of the exempt employer, reported to the department for the previous calendar year for unemployment compensation insurance purposes under ch. 108. If the exempt employer is not covered under ch. 108, then the department shall determine the comparable gross payroll for the exempt employer. If payment of any assessment made under this subsection is not made within 30 days of the order of the department, the attorney general may appear on behalf of the state to collect the assessment.

39,37 Section 37 . 106.11 (2) (a) 1. b. of the statutes is amended to read:

106.11 (2) (a) 1. b. The individual has, or is a member of a family which has, received a total family income for the 6-month period prior to application for the program involved, excluding unemployment compensation insurance, child support payments and welfare payments, which in relation to family size did not exceed the higher of the poverty level determined in accordance with criteria established by the director of the federal office of management and budget or 70% of the lower living standard income level.

39,38 Section 38 . 106.21 (9) (d) of the statutes is repealed.

39,39 Section 39 . 106.215 (10) (d) of the statutes, as affected by 1997 Wisconsin Act 27, is repealed.

39,40 Section 40 . Chapter 108 (title) of the statutes is amended to read:

CHAPTER 108

UNEMPLOYMENT insurance and
RESERVES ANd compensation

39,41 Section 41 . 108.01 (1) of the statutes is amended to read:

108.01 (1) Unemployment in Wisconsin is recognized as an urgent public problem, gravely affecting the health, morals and welfare of the people of this state. The burdens resulting from irregular employment and reduced annual earnings fall directly on the unemployed worker and his or her family. The decreased and irregular purchasing power of wage earners in turn vitally affects the livelihood of farmers, merchants and manufacturers, results in a decreased demand for their products, and thus tends partially to paralyze the economic life of the entire state. In good times and in bad times unemployment is a heavy social cost, directly affecting many thousands of wage earners. Each employing unit in Wisconsin should pay at least a part of this social cost, connected with its own irregular operations, by financing compensation benefits for its own unemployed workers. Each employer's contribution rate should vary in accordance with its own unemployment costs, as shown by experience under this chapter. Whether or not a given employing unit can provide steadier work and wages for its own employes, it can reasonably be required to build up a limited reserve for unemployment, out of which benefits shall be paid to its eligible unemployed workers, as a matter of right, based on their respective wages and lengths of service.

39,42 Section 42 . 108.02 (4m) (a) of the statutes is amended to read:

108.02 (4m) (a) All payments earnings for wage-earning service made which are paid to an employe during his or her base period as a result of employment for an employer;

39,43 Section 43 . 108.02 (4m) (g) of the statutes is created to read:

108.02 (4m) (g) All salary reduction amounts that are not wages and that would have been paid to an employe by an employer as salary during the employe's base period but for a salary reduction agreement under a cafeteria plan, within the meaning of 26 USC 125.

39,44 Section 44 . 108.02 (12) (b) (intro.) of the statutes is amended to read:

108.02 (12) (b) (intro.) Paragraph (a) does not apply to an individual performing services for an employing unit other than a government unit or nonprofit organization in a capacity other than as a contract operator with a carrier or as a skidding operator or piece cutter with a forest products manufacturer or a logging contractor logger or trucker, if the employing unit satisfies the department that:

39,45 Section 45 . 108.02 (12) (c) (intro.) of the statutes is amended to read:

108.02 (12) (c) (intro.) Paragraph (a) does not apply to an individual performing services for a government unit or nonprofit organization, or for an any other employing unit in a capacity as a contract operator with a carrier or as a skidding operator or piece cutter with a forest products manufacturer or a logging contractor logger or trucker if the employing unit satisfies the department:

39,46 Section 46 . 108.02 (15) (c) 1. of the statutes is amended to read:

108.02 (15) (c) 1. Such service is deemed “employment" covered by this chapter pursuant to a reciprocal arrangement between the department and each agency administering the unemployment compensation insurance law of a jurisdiction in which part of such service is performed; or no contributions are required with respect to any of such service under any other unemployment compensation insurance law; and

39,47 Section 47. 108.02 (15) (dm) 1. of the statutes is amended to read:

108.02 (15) (dm) 1. Such service is not covered under the unemployment compensation insurance law of any other state or Canada; and

39,48 Section 48 . 108.02 (15) (e) of the statutes is amended to read:

108.02 (15) (e) In determining whether an individual's entire services shall be deemed “employment" subject to this chapter, under pars. (b), (c), (d), (dm) and (dn), the department may determine and redetermine the individual's status hereunder for such reasonable periods as it deems advisable, and may refund (as paid by mistake) any contributions which have been paid hereunder with respect to services duly covered under any other unemployment compensation insurance law.

39,49 Section 49 . 108.02 (15) (gm) of the statutes, as created by 1997 Wisconsin Act 27, is repealed.

39,50 Section 50 . 108.02 (15) (i) 2. of the statutes is amended to read:

108.02 (15) (i) 2. By the spouse of such a student, if given written notice at the start of such service, that the work is under a program to provide financial assistance to the student and that the work will not be covered by any program of unemployment compensation insurance.

39,51 Section 51 . 108.02 (15) (k) 5. of the statutes is amended to read:

108.02 (15) (k) 5. With respect to which unemployment compensation insurance is payable under the federal railroad unemployment insurance act (52 Stat. 1094);

39,52 Section 52 . 108.02 (15) (k) 9. of the statutes is amended to read:

108.02 (15) (k) 9. Covered by any other unemployment compensation insurance law pursuant to a reciprocal arrangement made by the department under s. 108.14 (8m);

39,53 Section 53 . 108.02 (15) (k) 10. of the statutes is amended to read:

108.02 (15) (k) 10. For an employer who would otherwise be subject to this chapter solely because of sub. (13) (f), if and while the employer, with written notice to and approval by the department, duly covers under the unemployment compensation insurance law of another jurisdiction all services for such employer which would otherwise be covered under this chapter;

39,54 Section 54 . 108.02 (15) (k) 14. of the statutes is amended to read:

108.02 (15) (k) 14. By an individual for an employer which is engaged in the processing of fresh perishable fruits or vegetables within a given calendar year if the individual has been employed by the employer solely within the active processing season or seasons, as determined by the department, of the establishment in which the individual has been employed by the employer, and the individual's base period wages with the employer are less than the wages required to start a benefit year under s. 108.04 (4) (a), unless the individual was paid wages of $200 or more for services performed in employment or other work covered by the unemployment compensation insurance law of any state or the federal government, other than work performed for the processing employer, during the 4 most recently completed quarters preceding the individual's first week of employment by the processing employer within that year;

39,55 Section 55 . 108.02 (15) (k) 19. b. of the statutes is amended to read:

108.02 (15) (k) 19. b. The individual has been paid or is treated as having been paid wages or other remuneration of $500 or more during his or her base period for services performed for at least one employer other than the seasonal employer which is subject to the unemployment compensation insurance law of any state or the federal government.

39,56 Section 56 . 108.02 (18m) of the statutes is created to read:

108.02 (18m) Logger. “Logger" means a skidding operator or piece cutter with a forest products manufacturer or a logging contractor.

39,57 Section 57 . 108.02 (21) (a) 2. of the statutes is amended to read:

108.02 (21) (a) 2. Are not subject to contributions under another unemployment compensation insurance law.

39,58 Section 58 . 108.02 (21) (b) of the statutes is amended to read:

108.02 (21) (b) Notwithstanding par. (a), an employer's payroll includes only the first $10,500 of wages paid by an employer to an individual during a calendar year, including any wages paid for any work covered by the unemployment compensation insurance law of any other state, except as authorized in s. 108.17 (5).

39,59 Section 59 . 108.02 (25e) of the statutes is created to read:

108.02 (25e) Trucker. “Trucker" means a contract operator with a trucking carrier.

39,60 Section 60 . 108.04 (4) (a) of the statutes is amended to read:

108.04 (4) (a) A claimant is not eligible to start a benefit year unless the claimant has combined base period wages equal to at least 30 times the claimant's weekly benefit rate under s. 108.05 (1), including combined base period wages equal to at least 7 4 times the claimant's weekly benefit rate under s. 108.05 (1) in one or more quarters outside of the quarter within the claimant's base period in which the claimant has the highest base period wages.

39,61 Section 61 . 108.04 (4) (c) of the statutes is amended to read:

108.04 (4) (c) An employe is not eligible to start a new benefit year unless, subsequent to the start of the employe's most recent benefit year in which benefits were paid to the employe, the employe has performed services and earned wages for those services equal to at least 8 times the employe's latest weekly benefit rate under s. 108.05 (1) that was payable to the employe in the employe's most recent benefit year in employment or other work covered by the unemployment compensation insurance law of any state or the federal government.

39,62 Section 62 . 108.04 (5) of the statutes is amended to read:

108.04 (5) Discharge for misconduct. An employe whose work is terminated by an employing unit for misconduct connected with the employe's work is ineligible to receive benefits until 7 weeks have elapsed since the end of the week in which the discharge occurs and the employe earns wages after the week in which the discharge occurs equal to at least 14 times the employe's weekly benefit rate under s. 108.05 (1) in employment or other work covered by the unemployment compensation insurance law of any state or the federal government. For purposes of requalification, the employe's weekly benefit rate shall be that rate which would have been paid had the discharge not occurred. The wages paid to an employe by an employer which terminates employment of the employe for misconduct connected with the employe's employment shall be excluded from the employe's base period wages under s. 108.06 (1) for purposes of benefit entitlement. The department shall, by rule, prescribe the conditions under which an employe's possession, use or impairment due to use of a controlled substance, as defined in s. 961.01 (4), or a controlled substance analog, as defined in s. 961.01 (4m), or an employe's violation of a work rule relating to controlled substances testing constitutes misconduct. This subsection does not preclude an employe who has employment with an employer other than the employer which terminated the employe for misconduct from establishing a benefit year using the base period wages excluded under this subsection if the employe qualifies to establish a benefit year under s. 108.06 (2) (a). The department shall charge to the fund's balancing account any benefits otherwise chargeable to the account of an employer that is subject to the contribution requirements under ss. 108.17 and 108.18 from which base period wages are excluded under this subsection.

39,63 Section 63 . 108.04 (7) (a) of the statutes is amended to read:

108.04 (7) (a) If an employe terminates work with an employing unit, the employe is ineligible to receive benefits until 4 weeks have elapsed since the end of the week in which the termination occurs and the employe earns wages after the week in which the termination occurs equal to at least 4 times the employe's weekly benefit rate under s. 108.05 (1) in employment or other work covered by the unemployment compensation insurance law of any state or the federal government. For purposes of requalification, the employe's weekly benefit rate shall be that rate which would have been paid had the termination not occurred. This paragraph does not preclude an employe from establishing a benefit year by using the base period wages paid by the employer from which the employe voluntarily terminated, if the employe is qualified to establish a benefit year under s. 108.06 (2) (a).

39,64 Section 64 . 108.04 (7) (e) of the statutes is amended to read:

108.04 (7) (e) Paragraph (a) does not apply if the department determines that the employe accepted work which the employe could have refused failed to accept with good cause under sub. (8) and terminated such work with the same good cause and within the first 10 weeks after starting the work, or that the employe accepted work which the employe could have refused under sub. (9) and terminated such work within the first 10 weeks after starting the work. For purposes of this paragraph, an employe has the same good cause for voluntarily terminating work if the employe could have failed to accept the work under sub. (8) (d) when it was offered, regardless of the reason articulated by the employe for the termination.

39,65 Section 65 . 108.04 (7) (L) (intro.) of the statutes is amended to read:

108.04 (7) (L) (intro.) Paragraph (a) does not apply if the department determines that the employe terminated work to accept employment or other work covered by the unemployment compensation insurance law of any state or the federal government, and earned wages in the subsequent work equal to at least 4 times the employe's weekly benefit rate under s. 108.05 (1) if the work:

39,66 Section 66 . 108.04 (7) (p) of the statutes is amended to read:

108.04 (7) (p) Paragraph (a) does not apply if the department determines that an employe, while claiming benefits for partial unemployment, terminated work to accept employment or other work covered by the unemployment compensation insurance law of any state or the federal government, if that work offered an average weekly wage greater than the average weekly wage earned in the work terminated.

39,67 Section 67 . 108.04 (8) (a) of the statutes is amended to read:

108.04 (8) (a) If an employe fails, without good cause, to accept suitable work when offered, the employe is ineligible to receive benefits until 4 weeks have elapsed since the end of the week in which the failure occurs and the employe earns wages after the week in which the failure occurs equal to at least 4 times the employe's weekly benefit rate under s. 108.05 (1) in employment or other work covered by the unemployment compensation insurance law of any state or the federal government. For purposes of requalification, the employe's weekly benefit rate shall be that rate which would have been paid had the failure not occurred. This paragraph does not preclude an employe from establishing a benefit year during a period in which the employe is ineligible to receive benefits under this paragraph if the employe qualifies to establish a benefit year under s. 108.06 (2) (a). The department shall charge to the fund's balancing account any benefits otherwise chargeable to the account of an employer that is subject to the contribution requirements under ss. 108.17 and 108.18 whenever an employe of that employer fails, without good cause, to accept suitable work offered by that employer.

39,68 Section 68 . 108.04 (8) (c) of the statutes is amended to read:

108.04 (8) (c) If an employe fails, without good cause, to return to work with a former employer that recalls the employe within 52 weeks after the employe last worked for that employer, the employe is ineligible to receive benefits until 4 weeks have elapsed since the end of the week in which the failure occurs and the employe earns wages after the week in which the failure occurs equal to at least 4 times the employe's weekly benefit rate under s. 108.05 (1) in employment or other work covered by the unemployment compensation insurance law of any state or the federal government. For purposes of requalification, the employe's weekly benefit rate shall be that rate which would have been paid had the failure not occurred. This paragraph does not preclude an employe from establishing a benefit year during a period in which the employe is ineligible to receive benefits under this paragraph if the employe qualifies to establish a benefit year under s. 108.06 (2) (a). If an employe receives actual notice of a recall to work, par. (a) applies in lieu of this paragraph.

39,69 Section 69 . 108.04 (8) (d) of the statutes is amended to read:

108.04 (8) (d) An employe shall have good cause under par. (a) or (c), regardless of the reason articulated by the employe for the failure, if the department determines that the failure related to involved work at a lower grade of skill or significantly lower rate of pay than applied to the employe on one or more recent jobs, and that the employe had not yet had a reasonable opportunity, in view of labor market conditions and the employe's degree of skill, but not to exceed 6 weeks after the employe became unemployed, to seek a new job substantially in line with the employe's prior job skill and rate of pay.

39,70 Section 70 . 108.04 (12) (c) of the statutes is amended to read:

108.04 (12) (c) Any individual who receives unemployment compensation insurance for a given week under any federal law through any federal agency shall be ineligible for benefits paid or payable for that same week under this chapter.

39,71 Section 71 . 108.04 (12) (d) of the statutes is amended to read:

108.04 (12) (d) Any individual who receives unemployment compensation insurance for a given week under the law of any other state (with no use of benefit credits earned under this chapter) shall be ineligible for benefits paid or payable for that same week under this chapter.

39,72 Section 72 . 108.05 (1) (f) and (g) of the statutes are repealed.

39,73 Section 73 . 108.05 (1) (h) (intro.) of the statutes is amended to read:

108.05 (1) (h) (intro.) Each eligible employe shall be paid benefits for each week of total unemployment which commences on or after January 5, 1997, and before January 4, 1998, at the weekly benefit rate specified in this paragraph. Unless sub. (1m) applies, the weekly benefit rate shall equal 4% of the employe's base period wages which were paid during that quarter of the employe's base period in which the employe was paid the highest total wages, rounded down to the nearest whole dollar, except that if that amount is less than the minimum amount shown in the following schedule, no benefits are payable to the employe and if that amount is more than the maximum amount shown in the following schedule, the employe's weekly benefit rate shall be the maximum amount shown in the following schedule and except that if the employe's benefits are exhausted during any week under s. 108.06 (1), the employe shall be paid the remaining amount of benefits payable to the employe in lieu of the amount shown in the following schedule: [See Figure 108.05 (1) (h) following]

39,74 Section 74 . 108.05 (1) (i) and (j) of the statutes are created to read:

108.05 (1) (i) Each eligible employe shall be paid benefits for each week of total unemployment which commences on or after January 4, 1998, and before January 3, 1999, at the weekly benefit rate specified in this paragraph. Unless sub. (1m) applies, the weekly benefit rate shall equal 4% of the employe's base period wages which were paid during that quarter of the employe's base period in which the employe was paid the highest total wages, rounded down to the nearest whole dollar, except that if that amount is less than the minimum amount shown in the following schedule, no benefits are payable to the employe and if that amount is more than the maximum amount shown in the following schedule, the employe's weekly benefit rate shall be the maximum amount shown in the following schedule and except that if the employe's benefits are exhausted during any week under s. 108.06 (1), the employe shall be paid the remaining amount of benefits payable to the employe in lieu of the amount shown in the following schedule: [See Figure 108.05 (1) (i) following]