Currently, when there are insufficient moneys in the unemployment reserve
fund to make full payment of benefit claims, DWD is authorized to borrow moneys
from the federal government sufficient to make full payment of claims. DWD then
levies an annual assessment against employers that engage employees in
employment covered by the UI law sufficient to pay the interest due on the federal
advances to the fund. Any interest earned on the assessments pending transfer to
the federal government is credited to the state general fund, and any amount
remaining after an interest payment is made is retained for the purpose of making
future interest payments or for certain other authorized uses relating to the UI
program. This bill creates a segregated fund called the unemployment interest
payment fund for deposit of all unencumbered moneys collected on interest
assessments and all moneys to be collected on assessments previously made. Under
the bill, any interest earned on the assessments pending transfer to the federal
government and any interest or penalties collected from employers who are

delinquent in paying their assessments is credited to this segregated fund. The bill
provides that DWD shall use the moneys in the fund to make interest payments due
to the federal government on advances made to the unemployment reserve fund. The
bill directs DWD to use excess moneys in the fund to pay interest due in future years,
or if DWD determines that additional interest obligations are unlikely, the bill
directs DWD to use the excess moneys to pay benefits. The bill also makes delinquent
assessments subject to a simplified collection procedure that is currently used by
DWD for collection of other UI liabilities.
Recovery of UI liabilities resulting from incorrect earnings reports
Currently, DWD may utilize procedures available under state and federal 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. This bill permits DWD to offset adjudicated UI liabilities for
failure to report earnings in the same manner.
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:
AB310, s. 1 1Section 1. 20.445 (1) (gd) of the statutes is amended to read:
AB310,6,82 20.445 (1) (gd) Unemployment interest and penalty payments. All moneys
3received as interest and penalties collected under ss. 108.04 (11) (c) and (cm) and (13)
4(c) and 108.22, assessments under s. 108.19 (1m) except interest and penalties
5deposited under s. 108.19 (1q)
, and forfeitures under s. 103.05 (5), all moneys not
6appropriated under par. (gg) and all moneys transferred to this appropriation
7account from the appropriation account under par. (gh) for the payment of benefits
8specified in s. 108.07 (5) and 1987 Wisconsin Act 38, section 132 (1) (c), for the
9payment of interest to employers under s. 108.17 (3m), for research relating to the
10condition of the unemployment reserve fund under s. 108.14 (6), for administration
11of the unemployment insurance program and federal or state unemployment
12insurance programs authorized by the governor under s. 16.54, for satisfaction of any

1federal audit exception concerning a payment from the unemployment reserve fund
2or any federal aid disallowance concerning the unemployment insurance program,
3for assistance to the department of justice in the enforcement of ch. 108, for the
4payment of interest due on advances from the federal unemployment account under
5title XII of the social security act to the unemployment reserve fund, and for
6payments made to the unemployment reserve fund to obtain a lower interest rate or
7deferral of interest payments on these advances, except as otherwise provided in s.
8108.20.
AB310, s. 2 9Section 2. 20.445 (1) (gg) of the statutes is amended to read:
AB310,6,1410 20.445 (1) (gg) Unemployment information technology systems; interest and
11penalties.
From the moneys received as interest and penalties collected under ss.
12108.04 (11) (c) and (cm) and (13) (c) and 108.22 except interest and penalties
13deposited under s. 108.19 (1q)
, as a continuing appropriation, the amounts in the
14schedule for the purpose specified in s. 108.19 (1e) (d).
AB310, s. 3 15Section 3. 20.445 (1) (u) of the statutes is created to read:
AB310,6,1816 20.445 (1) (u) Unemployment interest payments and transfers. From the
17unemployment interest payment fund, a sum sufficient to make the payments and
18transfers authorized under s. 108.19 (1m).
AB310, s. 4 19Section 4. 20.445 (1) (v) of the statutes is created to read:
AB310,6,2220 20.445 (1) (v) Unemployment program integrity. From the unemployment
21program integrity fund, a sum sufficient to make the payments authorized under s.
22108.19 (1s).
AB310, s. 5 23Section 5. 25.17 (1) (xe) of the statutes is created to read:
AB310,6,2424 25.17 (1) (xe) Unemployment interest payment fund (s. 108.19 (1q));
AB310, s. 6 25Section 6. 25.17 (1) (xf) of the statutes is created to read:
AB310,7,1
125.17 (1) (xf) Unemployment program integrity fund (s. 108.19 (1s));
AB310, s. 7 2Section 7. 108.04 (2) (a) 3. (intro.) of the statutes is amended to read:
AB310,7,123 108.04 (2) (a) 3. (intro.) The individual conducts a reasonable search for
4suitable work during that week, unless the search requirement is waived under par.
5(b)
. The search for suitable work must include 2 actions that constitute a reasonable
6search as prescribed by rule of the department. This subdivision does not apply to
7an individual if the department determines that the individual is currently laid off
8from employment with an employer but there is a reasonable expectation of
9reemployment of the individual by that employer. In determining whether the
10individual has a reasonable expectation of reemployment by an employer, the
11department shall request the employer to verify the individual's employment status
12and shall also consider other factors, including:
AB310, s. 8 13Section 8. 108.04 (2) (bm) of the statutes is created to read:
AB310,7,1814 108.04 (2) (bm) A claimant is ineligible to receive benefits for any week for
15which there is a determination that the claimant failed to conduct a reasonable
16search for suitable work and the department has not waived the search requirement
17under par. (b). If the department has paid benefits to a claimant for any such week,
18the department may recover the overpayment under s. 108.22 (8).
AB310, s. 9 19Section 9. 108.04 (8) (b) of the statutes, as created by 2011 Wisconsin Act 32,
20is repealed.
AB310, s. 10 21Section 10. 108.04 (11) (a) and (b) of the statutes are amended to read:
AB310,7,2522 108.04 (11) (a) If a claimant, in filing his or her application for benefits or claim
23for any week, conceals any material fact relating to his or her eligibility for benefits,
24the claimant shall forfeit benefits in accordance with is ineligible for benefits as
25provided in
par. (be).
AB310,8,4
1(b) If a claimant, in filing a claim for any week, conceals any of his or her wages
2earned in or paid or payable for that week, the claimant shall forfeit benefits in
3accordance with par. (be). In addition, the claimant shall be denied benefits for that
4week
is ineligible for benefits as provided in par. (be).
AB310, s. 11 5Section 11. 108.04 (11) (be) of the statutes is repealed and recreated to read:
AB310,8,76 108.04 (11) (be) A claimant is ineligible for benefits for acts of concealment
7described in pars. (a) and (b) as follows:
AB310,8,128 1. For each single act of concealment occurring before the date of the first
9determination of concealment under par. (a) or (b), the claimant is ineligible for
10benefits for which he or she would otherwise be eligible in an amount equivalent to
112 times the claimant's weekly benefit rate under s. 108.05 (1) for the week in which
12the claim is made.
AB310,8,1713 2. For each single act of concealment occurring after the date of the first
14determination of concealment under par. (a) or (b), the claimant is ineligible for
15benefits for which he or she would otherwise be eligible in an amount equivalent to
164 times the claimant's weekly benefit rate under s. 108.05 (1) for the week in which
17the claim is made.
AB310,8,2218 3. For each single act of concealment occurring after the date of a 2nd or
19subsequent determination of concealment under par. (a) or (b), the claimant is
20ineligible for benefits for which he or she would otherwise be eligible in an amount
21equivalent to 8 times the claimant's weekly benefit rate under s. 108.05 (1) for the
22week in which the claim is made.
AB310, s. 12 23Section 12. 108.04 (11) (bh) of the statutes is created to read:
AB310,9,224 108.04 (11) (bh) In addition to ineligibility for benefits resulting from
25concealment as provided in par. (be), the department shall assess a penalty against

1the claimant in an amount equal to 15 percent of the benefit payments paid to the
2claimant as a result of one or more acts of concealment described in pars. (a) and (b).
AB310, s. 13 3Section 13. 108.04 (11) (bm) of the statutes is amended to read:
AB310,9,164 108.04 (11) (bm) The forfeiture established The department shall apply any
5ineligibility
under par. (be) may be applied against benefits and weeks of eligibility
6for
which the claimant would otherwise become payable to the claimant for weeks
7of unemployment occurring
be eligible after the week of concealment and within 6
8years after the date of an initial determination issued under s. 108.09 finding that
9a concealment occurred. The claimant shall not receive waiting period credit under
10s. 108.04 (3) for the period of ineligibility applied under par. (be).
If no benefit rate
11applies to the week for which the claim is made, the department shall use the
12claimant's benefit rate for the claimant's next benefit year beginning after the week
13of concealment to determine the forfeiture amount . If the benefits forfeited would
14otherwise be chargeable to an employer's account, the department shall charge the
15amount of benefits forfeited to the employer's account and shall credit the fund's
16balancing account for that amount
of the benefit reduction.
AB310, s. 14 17Section 14. 108.04 (13) (cm) of the statutes, as created by 2011 Wisconsin Act
1832
, is repealed.
AB310, s. 15 19Section 15. 108.05 (3) (a) of the statutes is amended to read:
AB310,9,2520 108.05 (3) (a) Except as provided in pars. (b), (c), and (d), and (dm) if an eligible
21employee earns wages in a given week, the first $30 of the wages shall be disregarded
22and the employee's applicable weekly benefit payment shall be reduced by 67% of the
23remaining amount, except that no such employee is eligible for benefits if the
24employee's benefit payment would be less than $5 for any week. For purposes of this
25paragraph, "wages" includes any salary reduction amounts earned that are not

1wages and that are deducted from the salary of a claimant by an employer pursuant
2to a salary reduction agreement under a cafeteria plan, within the meaning of 26
3USC 125
, and any amount that a claimant would have earned in available work
4under s. 108.04 (1) (a) which is treated as wages under s. 108.04 (1) (bm), but excludes
5any amount that a claimant earns for services performed as a volunteer fire fighter,
6volunteer emergency medical technician, or volunteer first responder. In applying
7this paragraph, the department shall disregard discrepancies of less than $2
8between wages reported by employees and employers.
AB310, s. 16 9Section 16. 108.05 (3) (b) of the statutes is repealed.
AB310, s. 17 10Section 17. 108.05 (3) (c) of the statutes is renumbered 108.05 (3) (c) (intro.)
11and amended to read:
AB310,10,1512 108.05 (3) (c) (intro.) A claimant is ineligible to receive any benefits for a week
13in which the claimant works a total of 40 or more hours for one or more employing
14units.
one or more of the following applies to the claimant for 32 or more hours in that
15week:
AB310, s. 18 16Section 18. 108.05 (3) (c) 1. to 3. of the statutes are created to read:
AB310,10,1717 108.05 (3) (c) 1. The claimant performs works; or
AB310,10,1818 2. The claimant has wages ascribed under s. 108.04 (1) (bm); or
AB310,10,2119 3. The claimant receives holiday pay, vacation pay, termination pay, or sick pay
20under circumstances satisfying the requirements of subs. (4), (5), or (5m) for
21treatment as wages in that week.
AB310, s. 19 22Section 19. 108.05 (3) (dm) of the statutes is created to read:
AB310,10,2523 108.05 (3) (dm) A claimant is ineligible to receive any benefits for a week if the
24claimant receives from one or more employers: 1. Wages earned for work performed
25in that week of more than $500; or
AB310,11,3
12. Sick pay, holiday pay, vacation pay, or termination pay which, by itself or in
2combination with wages earned for work performed in that week, is equivalent to
3more than $500.
AB310, s. 20 4Section 20. 108.065 (1) of the statutes is renumbered 108.065 (2) (a) 1.
AB310, s. 21 5Section 21. 108.065 (1e) of the statutes is created to read:
AB310,11,96 108.065 (1e) Except as provided in subs. (2) and (3), if there is more than one
7employing unit that has a relationship to an employee, the department shall
8determine which of the employing units is the employer of the employee by
9considering the following:
AB310,11,1010 (a) An employing unit's right by contract and in fact to:
AB310,11,1211 1. Determine a prospective employee's qualifications to perform the services in
12question and to hire or discharge the employee.
AB310,11,1413 2. Determine the details of the employee's pay including the amount of, method
14of, and frequency of changes in that pay.
AB310,11,1615 3. Train the employee and exercise direction and control over the performance
16of services by the employee and when and how they are to be performed.
AB310,11,1817 4. Impose discipline upon the employee for rule or policy infractions or
18unsatisfactory performance.
AB310,11,1919 5. Remove the employee from one job or assign the employee to a different job.
AB310,11,2020 6. Require oral or written reports from the employee.
AB310,11,2121 7. Evaluate the quantity and quality of the services provided by the employee.
AB310,11,2322 8. Assign a substitute employee to perform the services of an employee if the
23employee is unavailable for work or is terminated from work.
AB310,11,2524 9. Assign alternative work to the employee if the employee is removed from a
25particular job.
AB310,12,1
1(b) Which employing unit:
AB310,12,22 1. Benefits directly or indirectly from the services performed by the employee.
AB310,12,43 2. Maintains a pool of workers who are available to perform the services in
4question.
AB310,12,65 3. Is responsible for employee compliance with applicable regulatory laws and
6for enforcement of such compliance.
AB310, s. 22 7Section 22. 108.065 (1m) and (2) of the statutes are renumbered 108.065 (2)
8(b) and (c).
AB310, s. 23 9Section 23. 108.065 (3) of the statutes is created to read:
AB310,12,1710 108.065 (3) A provider of home health care and personal care services for
11medical assistance recipients under ch. 49 may elect to be the employer of one or more
12employees providing those services. As a condition of eligibility for election to be the
13employer of one or more employees providing those services, the provider shall notify
14in writing the recipient of any such services of its election, for purposes of the
15unemployment insurance law, to be the employer of any worker providing such
16services to the recipient, and must be treated as the employer by the federal internal
17revenue service for purposes of federal unemployment taxes on the worker's services.
AB310, s. 24 18Section 24. 108.09 (2) (b) of the statutes is amended to read:
AB310,12,2219 108.09 (2) (b) The department shall issue determinations whenever necessary
20to resolve any matters which that may bar, suspend, terminate or otherwise affect
21the employee's eligibility for benefits or to resolve any liability for penalties under
22s. 108.04 (11) (bh)
.
AB310, s. 25 23Section 25. 108.09 (3) (a) 1. of the statutes is amended to read:
AB310,13,224 108.09 (3) (a) 1. To hear and decide disputed claims or to resolve liabilities
25under sub. (2) (b)
, the department shall establish appeal tribunals. Except as

1authorized in this paragraph, each tribunal shall consist of an individual who is a
2permanent employee of the department.
AB310, s. 26 3Section 26. 108.09 (4r) of the statutes, as created by 2011 Wisconsin Act 32,
4is repealed.
AB310, s. 27 5Section 27. 108.09 (8) (b) of the statutes is amended to read:
AB310,13,136 108.09 (8) (b) Any party in a dispute concerning benefit eligibility or liability
7for overpayment of benefits or a penalty imposed under s. 108.04 (11) (bh), or in any
8administrative proceeding under this chapter concerning such a dispute, may be
9represented by counsel or another agent; but no such counsel or agent may together
10charge or receive from an employee for all such representation in connection with
11such a dispute a fee which, in the aggregate, exceeds 10% of the maximum benefits
12at issue unless the department has first approved a specified higher fee. This
13paragraph does not apply to any fee charged for representation before a court of law.
AB310, s. 28 14Section 28. 108.16 (6) (f) of the statutes is amended to read:
AB310,13,1615 108.16 (6) (f) Any amount available for such crediting under s. 108.04 (11) (be),
16108.14 (8n) (e) or 108.141.
AB310, s. 29 17Section 29. 108.16 (6) (L) of the statutes is amended to read:
AB310,13,2218 108.16 (6) (L) The amount of any overpayments that are recovered by the
19department by setoff pursuant to s. 71.93 or the amount of any overpayments
20resulting from fraud or failure to report earnings that are recovered by the
21department by offset pursuant to section 6402 (f) of the federal Internal Revenue
22Code in effect on June 1, 2009, or a similar federal program.
AB310, s. 30 23Section 30. 108.16 (6) (m) of the statutes is amended to read:
AB310,14,324 108.16 (6) (m) Any amounts collected from assessments levied under s. 108.19
25(1m) exceeding the amounts needed to pay interest due on advances from the federal

1unemployment account under title XII of the Social Security Act (42 USC 1321 to
21324)
transferred to the balancing account from the unemployment interest
3payment fund
.
AB310, s. 31 4Section 31. 108.16 (6m) (g) of the statutes is amended to read:
AB310,14,75 108.16 (6m) (g) Any payments of fees or expenses assessed by the U.S.
6secretary of the treasury under section 6402 (f) of the federal Internal Revenue Code
7in effect on June 1, 2009, or a similar federal program.
AB310, s. 32 8Section 32. 108.16 (8) (h) of the statutes is amended to read:
AB310,14,189 108.16 (8) (h) The department shall determine or redetermine the contribution
10rate for the of a successor effective that is subject to this chapter immediately prior
11to the effective date of a transfer
as of the applicable computation date effective for
12contributions payable
beginning of in the first quarter calendar year following the
13date of the transfer of the business. The department shall thereafter redetermine
14the contribution rate whenever required by s. 108.18. For the purposes of s. 108.18,
15the department shall determine the experience under this chapter of the successor's
16account by allocating to the successor's account for each period in question the
17respective proportions of the transferor's payroll and benefits which the department
18determines to be properly assignable to the business transferred.
AB310, s. 33 19Section 33. 108.16 (10) of the statutes is amended to read:
AB310,15,320 108.16 (10) All money withdrawn from the fund shall be used solely in the
21payment of benefits, exclusive of expenses of administration, and for refunds of sums
22erroneously paid into the fund, for refund of a positive net balance in an employer's
23reimbursement account under ss. 108.15 (4) and 108.151 (5) on request by the
24employer, for expenditures made pursuant to s. 108.161 and consistently with the
25federal limitations applicable to s. 108.161, and for payment of fees and expenses for

1collection of overpayments resulting from fraud or failure to report earnings that are
2assessed by the U.S. secretary of the treasury under section 6402 (f) of the federal
3Internal Revenue Code in effect on June 1, 2009, or a similar federal program.
AB310, s. 34 4Section 34. 108.19 (title) of the statutes is amended to read:
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