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Section
108.04 (15), Stats., created by
2013 Wis. Act 36 authorizes the department to request information from UI benefit claimants related to work search efforts.
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Section
108.04 (2) (a) 4., Stats., as created by
2013 Wis. Act 36, authorizes the department to request information from UI benefit claimants related to work search efforts.
Description of Existing Policies Relevant to the Rule, New Policies Proposed to be Included in the Rule, and an Analysis of Policy Alternatives
UI benefits provide a temporary safety net for unemployed individuals who are out of work through no fault of their own until they secure additional employment. Section
108.04 (2), Stats., provides that an otherwise qualified claimant is eligible for UI benefits in any given week if the individual is able and available to work, has registered for work, and the individual conducts a reasonable search for suitable work.
2013 Wisconsin Act 20 amended these qualification requirements. First, it clarified that a claimant's registration for work must be done as directed by the department. Second, it increased the number of weekly work search actions a claimant must conduct from two to at least four, unless the department waives the work search requirement. Third, the department must adopt rules to prescribe when it may require a claimant to conduct more than four work search actions in a week. Finally, as the department enhances its focus on assisting claimants to become reemployed, the administrative rules must enable the department to provide claimants with notifications through email and other modern technological means.
The emergency rules will make the rules consistent with the newly enacted legislation and will clarify and narrow the exemptions available to a claimant who is required to conduct work searches. These emergency rules will strengthen the requirements for unemployed individuals to actively seek employment and thereby improve their employment prospects and align the job search requirements with the underlying goal of the UI program.
Under current administrative rules, the department may require claimants to participate in a public employment office workshop which offers instructions in improving a claimant's skills for finding and obtaining employment. Consistent with the statutory changes provided by
2013 Wisconsin Act 36, the emergency rule will enable the department to identify additional services it may provide claimants to become more quickly employed and potentially require claimants to attend training services to enhance their job prospects.
Finally, as required by
2013 Wisconsin Act 20, the emergency rules will provide criteria as to when the department may in a particular week require a claimant to conduct more than four weekly work search actions.
The policy alternative to not amend the administrative rules by the emergency rule process is unacceptable. First, the administrative rules will be inconsistent with state statutes. Second, without adopting the emergency rules, the department may not be able to require claimants to provide information to the department as prescribed by the department. This will deter the department from verifying that claimants are actively seeking work and enabling the department to provide needed employment services to claimants. Moreover, not amending the rules by the emergency rule process may encourage some claimants to remain unemployed and to continue to collect unemployment benefits rather than obtain employment, resulting in additional taxes being imposed on employers.
Detailed Explanation of Statutory Authority for the Rule, Including the Statutory Citation and Language
Section
108.04 (2) (b), Stats., provides: “[t]he requirements for registration for work and search for work shall be prescribed by rule of the department, and the department may by general rule waive these requirements under certain stated conditions."
Other statutory authority includes:
Sec. 108.03, Wis. Stats. Payment of benefits — authority to prescribe conditions for the payment of benefits.
Sec. 108.04, Wis. Stats. Eligibility for benefits — authority to adopt rules on the requirement for work registration and work searches.
Sec. 108.08, Wis. Stats. Notification of unemployment — authority to adopt rules for how a claimant shall notify the department of his or her unemployment.
Sec.108.09, Wis. Stats. Settlement of benefit claims — authority to adopt rules on how claimants shall file claims.
Estimate of Amount of Time that State Employees will Spend Developing the Rule and Other Resources Necessary to Develop the Rule
The total amount of staff time is estimated to be approximately 30 additional hours of effort will be needed to develop these rules by the emergency rule process. The department has already submitted a scope statement to make these rules permanent rules and enacting these amendments by the emergency rule process can be part of the ongoing effort.
List with Description of all Entities that may be Affected by the Proposed Rule
These emergency rules will impact all individuals who qualify for UI benefits. These emergency rules will also impact businesses in two aspects. First, the emergency rules are projected to result in more UI claimants finding employment faster. As a result, unemployed individuals will be collecting lower amounts of UI benefits and there will be fewer charges to employers' UI accounts. This will result in employers having to pay lower amounts of unemployment tax. Second, more unemployed individuals will seek employment. As a result, there are likely to be more job applications for employers to review when employers are seeking to hire individuals.
Summary and Preliminary Comparison with any Existing or Proposed Federal Regulation that is Intended to Address the Activities to Be Regulated by the Proposed Rule
Federal law states UI claimants must be registered for work and must be available and actively seeking work to be eligible for UI benefits. In addition, federal law requires claimants to participate in reemployment services to which they have been referred as a condition of UI eligibility. These rules will clarify what are the required work search activities a claimant must conduct and strengthen the ability of the department to monitor claimants' efforts to obtain employment and require him or her to participate in reemployment services.
Anticipated economic impact of implementing the rule (note if the rule is likely to have an economic impact on small businesses)
These emergency rules will have a positive economic impact. The increase in the requirement for work search activities and work registration will likely decrease charges to the UI trust fund due to individuals obtaining employment sooner or becoming disqualified for not actively seeking work. This will have a positive economic impact on employers, due to fewer charges to employers' UI accounts. In addition, claimants who are regularly collecting a paycheck rather than an unemployment check will have a larger, more positive economic impact on the community.
Contact Person
Workforce Development
Employment and Training, Chs.
DWD 805—830
This statement of scope was approved by the Governor on August 15, 2013.
Rule No.
Relating to
Rule Type
Emergency.
Finding of Emergency
The Department of Workforce Development (DWD) finds that an emergency exists and emergency rules are necessary for the immediate preservation of the public peace, health, safety, or welfare. The reason for the emergency is:
DWD proposes to create new rules in Chapter
DWD 801 to implement the program of workforce training grants enacted by
2013 Wisconsin Act 9. DWD held a public hearing on the permanent rule for this new program on July 15, 2013, and has made revisions to the text of the proposed permanent rule in response to the comments received. It would now benefit the public welfare to proceed with the rules in emergency form so that the program can begin this fall.
Detailed Description of the Objective of the Proposed Rule
In
2013 Wisconsin Act 9, the Governor and Legislature have enacted s.
106.27, Wis. Stats., which provides that DWD shall award grants to public and private organizations for the development and implementation of workforce training programs. The organizations that receive the grants are allowed to use the funds for the training of unemployed and underemployed workers and incumbent employees of businesses in this state. The grants are intended to respond to the identified needs of employers and employees. The objective of this proposed rule, as required by the statute, is to prescribe the procedures and criteria for awarding these grants and to specify the information that is to be contained in reports to describe how grant funds are expended and what outcomes are achieved.
Description of Existing Policies Relevant to the Rule, New Policies Proposed to be Included in the Rule, and an Analysis of Policy Alternatives
The new policies which will be proposed in the rule will establish the basic procedures and criteria for the awarding of grants, which will include requirements for written proposals, standards for the evaluation of the proposals, and a description of the extent to which matching funds will be required. The new policies will also describe the reports required by the statute which are intended to provide a record of how the grant funds were expended and what outcomes were achieved.
Detailed Explanation of Statutory Authority for the Rule (Including the Statutory Citation and Language)
Sec. 106.27(2g), Wis. Stats., provides as follows:
(2g) IMPLEMENTATION. (a) Duties. To implement this section, the department shall do all of the following: 1. Promulgate rules prescribing procedures and criteria for awarding grants under sub. (1) and the information that must be contained in the reports required under subd. 3.
Estimate of Amount of Time that State Employees Will Spend Developing the Rule and of Other Resources Necessary to Develop the Rule
The estimated time is 40 hours.
List with Description of All Entities that May Be Affected by the Proposed Rule
The grant program, and therefore these rules, will primarily affect employers or organizations that are interested or involved in providing workforce training programs and individuals who are seeking training to improve their prospects for obtaining employment.
Summary and Preliminary Comparison with Any Existing or Proposed Federal Regulation that is Intended to Address the Activities to be Regulated by the Proposed Rule
These grants are intended to complement and coordinate with existing job training opportunities under federal Workforce Investment Act, 29 U.S. Code 2801,
20 CFR Part 652.
Anticipated Economic Impact of Implementing the Rule (Note if the Rule is Likely to Have a Significant Economic Impact on Small Businesses)
Because this rule carries forward the initiative created by
2013 Wisconsin Act 9, the fiscal note for the bill that was enacted as Act 9, 2013 Assembly Bill 14 also states the anticipated economic impact of the rules.
Contact Person
For program questions:
Dennis C. Schuh, DWD Office of Skills Development
P.O. Box 7946, Madison WI 53707
(608) 267-3803
For rulemaking questions:
Howard Bernstein, DWD Legal Counsel
P.O. Box 7946
Madison WI 53707
(608) 266-9427
