ARIZONA HOUSE OF REPRESENTATIVES

SB 1398: unemployment; return-to-work program; suitable work

PRIME SPONSOR: Senator Smith, LD 11

BILL STATUS: Commerce

Abstract

Relating to suitable jobs and training for unemployed workers receiving UI benefits.

Provisions

1. Asserts that after the first four weeks of a person receiving UI benefits, DES will consider employment offers of 120% of weekly benefits as suitable work for a person to return to work.  (Sec. 2)

2. Instructs DES to establish a Return-to-Work Program consisting of supervised training for unemployed individuals who receive or are eligible for UI benefits.  (Sec. 1)

3. Conditions the Program on legislative appropriation.  (Sec. 1)

4. Instructs DES to provide workers' compensation coverage for participants as noted.  (Sec. 1)

5. Permits individuals and employers who take part in pre-apprenticeship programs approved by DES to participate. (Sec. 1)

6. Prescribes requirements for individuals as follows:

a. Attain the age of 18 years of age or older and participate 20 - 32 hours weekly, up to six weeks.

b. Register with DES as a volunteer participant and attend mandatory orientation.

c. Provide information to DES as requested. 

d. Be willing to learn new skills or work experience.

e. Certify to DES that participation does not guarantee a job.

f. Continue to seek work unless exempt as outlined.

g. Collect UI benefits while participating in the Program.  (Sec. 1)

7. Establishes requirements for employers that volunteer to participate as follows: 

a. Have employees in Arizona and at least one open full-time position.

b. Provide training and notify DES when the employer offers the person a training opportunity.

c. Certify to DES that the employer will not pay wages during the training period.

d. Sign a written agreement stating the terms of the training.

e. Guarantee that existing employees will not be displaced in the company due to the employer's participation in the program.

f. Provide additional information to DES as requested.  (Sec. 1)

8. Exempts DES from rulemaking for one year after the effective date of the enactment.  (Sec. 3)

9. Sunsets the Program on July 1, 2028.  (Sec. 1)

Current Law

Persons who are unemployed through no fault of their own may be eligible for UI benefits, which are based on a formula outlined in statute. The weekly UI benefits are calculated according to wages earned from employers who paid unemployment taxes to the State of Arizona.  The benefit amount is 4% of the wages paid in the highest quarter of the worker's base period, with the current maximum set at $240 per week. (A.R.S. § 23-779)

In part, an eligible individual cannot be denied benefits if the person is in federal, state or DES-approved training or is leaving work that is not suitable employment.  Suitable employment means that the work is substantially equivalent or a higher skill level than the individual's past employment and the wages equal or exceed 80% of the individual's average weekly wage.  (A.R.S. § 23-771.01)

DES disqualifies an individual from receiving benefits if the person, without cause, fails to apply for available, suitable work or to actively seek work.  Suitable work is based on factors such as risk to health, safety and morals, physical fitness and prior training, experience and earnings, length of unemployment and distance to the available work from the person's home.  Statute further outlines exceptions and exclusions.   (A.R.S. § 23-776)

---------- DOCUMENT FOOTER ---------

Fifty-third Legislature                  SB 1398

Second Regular Session                               Version 1: Commerce

---------- DOCUMENT FOOTER ---------