ARIZONA HOUSE OF REPRESENTATIVES

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

PRIME SPONSOR: Senator Smith, LD 11

BILL STATUS: House Engrossed

Abstract

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

Provisions

1. Asserts that after the first four weeks a person receives UI benefits, DES considers 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 training program, which may be a state or federally approved apprenticeship program consisting of supervised training for unemployed individuals who receive or are eligible for UI benefits.  (Sec. 1)

3. Authorizes the training program to offer paid or unpaid training to participants.

4. Prescribes requirements for individuals as follows:

a. Attain the age of 18 years of age or older.

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)

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

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

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

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

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)

An unemployed worker is eligible to receive UI benefits if the person has been paid wages for insured work, registers for work and fills out the necessary claim forms.  The person must regularly report to the DES employment office, be able to work, available and then search for work as outlined for at least four days per week, making at least one job contact each day.  (A.R.S. § 23-771)

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Fifty-third Legislature                  SB 1398

Second Regular Session                               Version 3: House Engrossed

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