Assigned to COMPS FOR
COMMITTEE
Assigned to COMPS FOR
COMMITTEE
ARIZONA STATE SENATE
Fifty-Third Legislature, Second Regular Session
unemployment; return-to-work program; suitable work
Purpose
Modifies the Department of Economic Security's determination of suitable work and establishes the Return-to-Work Program.
Background
Arizona’s Unemployment Insurance (UI) Program, administered by the Department of Economic Security (DES), provides a measure of economic security to a qualified worker when unemployment occurs beyond the worker’s control (A.R.S. § 23-601). UI recipients may be disqualified from benefits for failure to accept an employment offer for suitable work. In determining whether work is suitable for an individual, DES considers: 1) the degree of risk to the individual's health, safety and morals; 2) the individual's physical fitness and prior training; 3) the individual's experience and prior earnings; 4) the individual's length of unemployment and prospects for securing local work in the individual's customary occupation; and 5) the distance of the available work from the individual's residence (A.R.S. § 23-776).
Individuals may receive UI benefits while engaged in training approved by DES. If the training provides an allowance, the allowance will be subtracted from the individual's weekly benefit amount (A.R.S. § 23-771.01). The maximum UI benefit amount is $240 per week, for up to 26 weeks (A.R.S. §§ 23-779 and 23-780)
There is no anticipated fiscal impact to the state General Fund associated with this legislation, but there may be a savings to the UI Trust Fund, if claimants obtain employment sooner than they would in absence of the Return-to-Work Program.
Provisions
1. Deems to be suitable work, for an individual who has received four weeks of UI benefits, any employment offer that provides 120 percent of the individual's weekly benefit amount.
2. Requires DES to establish the Return-to-Work Program (Program) to provide structured, supervised training opportunities and pre-apprenticeships to unemployed individuals, provided the Program is authorized by legislative appropriation.
3. Allows adult individuals receiving UI benefits and workers' compensation coverage to participate in the Program for 20 to 32 hours per week, for up to six weeks.
4. Requires participating Program employers to:
a) have employees in this state;
b) have at least one full-time position available in this state;
c) provide training opportunities that benefit the individual;
d) notify DES when the employer offers an individual a training opportunity under the Program;
e) certify that the employer will not pay any wages to the individual during the individual’s participation in the Program;
f) sign a written agreement with each individual setting forth the terms of the training;
g) attest that the employer’s current employees will not be displaced or lose any promotion rights due to an individual in the Program; and
h) provide any additional information relating to the job training, as requested by DES.
5. Requires participating Program individuals to:
a) be receiving or eligible to receive unemployment compensation benefits;
b) be willing to develop new skills or work experience;
c) continue to seek work unless otherwise exempt;
d) certify to DES that the individual understands that participating in the Program does not guarantee the individual any future employment or expectations of being hired by the employer; and
e) attend a mandatory Program orientation conducted by DES.
6. Exempts DES from rulemaking requirements during Program implementation.
7. Terminates the Program on July 1, 2028.
8. Makes technical and conforming changes.
9. Becomes effective on the general effective date.
Prepared by Senate Research
January 31, 2018
GH/lb