SB1748 - 551R

Be it enacted by the Legislature of the State of Arizona:

Section 1. Section 23-621, Arizona Revised Statutes, is amended to read:

START_STATUTE23-621. Unemployed; definition

A. An individual shall be deemed "unemployed" with respect to any week during which the individual performs no services and with respect to which no wages are payable to the individual, or with respect to any week of less than full-time work without any fault on the individual's part if the wages payable to the individual with respect to the week are less than one hundred forty percent of the individual's weekly benefit amount.

B. An individual shall not be deemed "unemployed" with respect to any week of less than full-time work if the loss of full-time work is directly attributable to the fault of the individual.

C. An individual shall not be deemed "unemployed" if the individual is receiving wages in lieu of notice or severance pay. The period of time for which wages in lieu of notice or severance pay are allocable shall be determined by either of the following:

1. If there was a written contract between the employer and the claimant in effect at the time of separation, allocate to the appropriate period in accordance with the contract, continuing for the number of work days that the pay would cover at the regular wage or salary rate.

2. If no written contract was in effect at the time of separation, allocate to the appropriate period following the last day of performance of services, continuing for the number of work days that the pay would cover at the regular wage or salary rate.

D. For the purposes of this section, "severance pay" includes all amounts that an employer pays to an employee due to the employee's resignation, termination or participation in an exit incentive program or inclusion in a reduction in force or in consideration for the employee's release of actual or potential claims for the termination of employment. Severance pay does not include any amounts that the employer pays for health benefits or pursuant to any employee benefit plan. END_STATUTE

Sec. 2. Section 23-762, Arizona Revised Statutes, is amended to read:

START_STATUTE23-762. Requirements of shared work plan; approval

A. An employer wishing to participate in the shared work unemployment compensation program shall submit a signed, written shared work plan to the department for approval. The department shall approve a shared work plan only if the plan:

1. Specifies the employees in the affected group.

2. Applies to only one affected group.

3. If feasible, includes a description of the employer's plan for notifying an employee whose work week workweek is to be reduced.

4. Includes a certified statement by the employer that, for the six-month period immediately preceding the date the plan is submitted, compensation was payable from the shared work employer, or its predecessors whether or not they were shared work employers, to each employee in the affected group in an amount equal to or greater than the wages for insured work in one calendar quarter as provided in section 23-771, subsection A, paragraph 6 5. An employee who joins an affected group after the approval of the shared work plan is automatically covered under the previously approved plan, effective the week that the department receives written notice from the shared work employer that the employee has joined and certification from the employer that the employee meets the provisions of section 23-771, subsection A, paragraph 6 5.

5. Includes a certified statement by the employer that for the duration of the plan the reduction in the total normal weekly hours of work of the employees in the affected group is instead of layoffs which that otherwise would result in at least as large a reduction in the total normal weekly hours of work. The employer shall include an estimate of the number of layoffs that would have occurred without an approved shared work plan.

6. Specifies the manner in which the employer will treat fringe benefits of the employees in the affected group if the employees' hours are reduced to less than their normal weekly hours of work. The employer must certify, if the employer provides health benefits and retirement benefits under a defined benefit plan to any employee whose workweek is reduced under the plan, that these benefits will continue to be provided to an employee participating in the shared work plan under the same terms and conditions as though the workweek of the employee had not been reduced or to the same extent as other employees not participating in the shared work program.

7. Specifies an expiration date that is no not more than one year from the date the employer submits the plan for approval, except that on written request by the employer, the department may approve an extension of the plan for a period of not more than one year from the date of the request.

8. Is approved in writing by the collective bargaining agent for each collective bargaining agreement that covers any employee in the affected group.

B. The plan prescribed in subsection A of this section and the implementation of the plan must be consistent with the employer's obligations under all other federal and state laws.

C. The department shall approve or disapprove the plan within fifteen days after receipt of the plan by the department. The department shall notify the employer of the reasons for denial of a shared work plan within ten days of after the determination. END_STATUTE

Sec. 3. Section 23-771, Arizona Revised Statutes, is amended to read:

START_STATUTE23-771. Eligibility for benefits

A. An unemployed individual is eligible to receive benefits with respect to any week only if the department finds that the individual:

1. Has registered for work at and thereafter has continued to report at an employment office in accordance with the regulations prescribed by the department.

2. Has made a claim for benefits in accordance with section 23-772.

3. Is able to work.

4. Except for an individual who is applying for shared work benefits pursuant to article 5.1 of this chapter, is available for work and both of the following apply:

(a) The individual has engaged in a systematic and sustained effort to obtain work during at least four days of the week.

(b) The individual has made at least one job contact per day on four three different days of the week.

5. Has been unemployed for a waiting period of one week. A week is not counted as a week of unemployment for the purpose of this paragraph:

(a) Unless it occurs within the benefit year that includes the week with respect to which the individual claims payment of benefits.

(b) Unless the individual was eligible for benefits with respect thereto as provided in this section and sections 23-775, 23-776 and 23-777.

6. 5. Has met one of the following requirements:

(a) Has been paid wages for insured work during the individual's base period equal to at least one and one-half times the wages paid to the individual in the calendar quarter of the individual's base period in which the wages were highest, and the individual has been paid wages for insured work in one calendar quarter of the individual's base period equal to an amount that is equal to at least three hundred ninety two hundred times the minimum wage prescribed by section 23-363 that is in effect when the individual files a claim for benefits.

(b) Has for a benefit year beginning on or after September 2, 1984, been paid wages for insured work during at least two quarters of the individual's base period and the amount of the wages paid in one quarter would be sufficient to qualify the individual for the maximum weekly benefit amount payable under this chapter and the total of the individual's base-period wages is equal to or greater than the taxable limit as specified in section 23-622, subsection B, paragraph 1.

7. 6. Following the beginning date of a benefit year established under this chapter or the unemployment compensation law of any other state and before the effective date of a subsequent benefit year under this chapter, has performed services whether or not in employment as defined in section 23-615 for which wages were payable in an amount equal to or in excess of eight times the weekly benefit amount for which the individual is otherwise qualified under section 23-779. In making a determination under this paragraph the department shall use information available in its records or require the individual to furnish necessary information within thirty days after the date notice is given that the information is required.

B. If an unemployed individual cannot establish a benefit year as defined in section 23-609 due to receipt during the base period of compensation for a temporary total disability pursuant to chapter 6 of this title, or any similar federal law, the individual's base period shall be the first four of the last five completed calendar quarters immediately preceding the first day of the calendar week in which the disability began. If the unemployed individual still cannot establish a benefit year, the individual's base period shall be the last four of the last five completed calendar quarters immediately preceding the first day of the calendar week in which the disability began. Wages previously used to establish a benefit year may not be reused. This subsection does not apply unless all of the following occur:

1. The individual has filed a claim for benefits not later than the fourth calendar week of unemployment after the end of the period of disability.

2. The claim is filed within two years after the period of disability begins.

3. The individual meets the requirements of subsection A of this section.

4. The individual has attempted to return to the employment where at which the temporary total disability occurred.

C. If an unemployed individual is a member of the national guard or other reserve component of the United States armed forces, the individual is not considered to be either employed or unavailable for work by reason of the individual's participation in drill, training or other national guard or reserve activity that occurs on not more than one weekend per month or in lieu of a weekend drill or the equivalent.

D. The department shall not disqualify an individual from receiving benefits under this chapter on the basis of the individual's separation from employment if the individual is a victim of domestic violence and leaves employment due to a documented case involving domestic violence pursuant to section 13-3601 or 13-3601.02. Benefits paid to an individual pursuant to this subsection shall not be charged against an employer's account pursuant to section 23-727, subsection G.

E. For the purposes of subsection A, paragraph 6 5 of this section, wages shall be counted as "wages for insured work" for benefit purposes with respect to any benefit year only if that benefit year begins subsequent to the date on which the employing unit by which those wages were paid has become an employer subject to this chapter. END_STATUTE

Sec. 4. Section 23-775, Arizona Revised Statutes, is amended to read:

START_STATUTE23-775. Disqualification from benefits

An individual shall be disqualified for benefits:

1. For the week in which the individual has left work voluntarily without good cause in connection with the employment, and in addition to the waiting week, for the duration of the individual's unemployment and until the individual has earned wages in an amount equivalent to five times the individual's weekly benefit amount otherwise payable. If a person leaves because of transportation difficulties, the individual shall be disqualified unless the individual can show the individual's travel requirements are in excess of the normal practice in the individual's occupation and past practice or that the individual has compelling personal circumstances requiring the individual's leaving. Compelling personal circumstances shall include but are not limited to a showing of any of the following:

(a) Over thirty miles distance from the individual's home to work.

(b) More than one and one-half hours to reach work.

(c) A spouse or unemancipated minor leaving work to accompany the other spouse or a parent who is a member of the armed services and who is transferred to another locality as a result of official orders.

2. For the week in which the individual has been discharged for wilful or negligent misconduct connected with the employment, and in addition to the waiting week, for the duration of the individual's unemployment and until the individual has earned wages in an amount equivalent to five times the individual's weekly benefit amount otherwise payable.

3. For any week with respect to which or a part of which the individual has received or is seeking unemployment benefits under an unemployment compensation law of another state or of the United States, but if the appropriate agency of the other state or of the United States finally determines that the individual is not entitled to unemployment benefits, the ineligibility shall not apply.

4. For the week in which the individual becomes unemployed and for not more than the following three weeks, if the individual's unemployment is due solely to a customary suspension of all operations, except maintenance work, at the factory, plant or other premises at which the individual was last employed, which will not occur more than once in a calendar year and will not exceed four consecutive weeks' duration, and the employment will again be available to the individual on resumption of operations. For the purposes of this paragraph:

(a) "Customary suspension" means a suspension that has occurred for the same or similar reasons in each of three consecutive years or more, including the year in question, regardless of whether the suspension in any previous year would have satisfied the requirements of this paragraph. A suspension provided for by an agreement to which the employer is a party shall be considered customary unless the agreement specifies the exact time, duration, type and circumstances of the suspension. Any suspension whose details are determined by the employer shall be considered customary, regardless of the employer's ultimate reason for imposing it, as long as the employer's reason or reasons are the same or similar over the necessary period.

(b) "Factory, plant or other premises" means any location or premises or portion of locations or premises of the employer where the work or operations are separate and distinct from those at other locations or premises or portions of locations or premises, regardless of geographic proximity or functional, geographic or administrative integration of the work or operations.

(c) "Maintenance work" has its usual meaning and includes any administrative, executive, clerical or supervisory work or any other work necessary to keep the factory, plant or other premises in a position to resume full operations promptly at the end of the suspension or necessary to pay, supervise or otherwise support individuals performing such work.

5. For any week in which the individual is incarcerated. END_STATUTE

Sec. 5. Section 23-776, Arizona Revised Statutes, is amended to read:

START_STATUTE23-776. Disqualification from benefits for failure to accept suitable work or actively seek work; exceptions

A. An individual shall be disqualified for benefits if the department finds the individual has failed without cause either to apply for available, suitable work, when so directed by the employment office or the department, to actively engage in seeking work, to accept suitable work when offered or to return to the individual's customary self-employment when so directed by the department. The disqualification shall begin with the week in which the failure occurred and shall continue for the duration of the individual's unemployment and until the individual has earned wages in an amount equivalent to eight five times the individual's weekly benefit amount otherwise payable.

B. In determining whether or not work is suitable for an individual:

1. During the first four weeks of a benefit period, the department shall consider the degree of risk involved to the individual's health, safety and morals, the individual's physical fitness and prior training, the individual's experience and prior earnings, the individual's length of unemployment and prospects for securing local work in the individual's customary occupation and the distance of the available work from the individual's residence.

2. After the first four weeks of a benefit period, the department shall consider any employment offer that pays one hundred twenty percent of the individual's weekly benefit amount to be suitable work.

C. Notwithstanding any other provisions of this chapter, work shall not be deemed suitable and benefits shall not be denied under this chapter to an otherwise eligible individual for refusing to accept new work under any of the following conditions:

1. The position offered is vacant due directly to a strike, lockout or other labor dispute.

2. The wages, hours or other conditions of the work offered are substantially less favorable to the individual than those prevailing for similar work in the locality.

3. As a condition of being employed the individual would be required to join a company union or to resign from or refrain from joining a bona fide labor organization.

D. An individual is considered to have refused an offer of suitable work under subsection A of this section if an offer of work is withdrawn by an employer after an individual either:

1. Tests positive for drugs after a drug test given pursuant to chapter 2, article 14 of this title by or on behalf of a prospective employer as a condition of an offer of employment.

2. Refuses, without good cause, to submit to a drug test that is required by a prospective employer as a condition of an offer of employment. END_STATUTE

Sec. 6. Section 23-779, Arizona Revised Statutes, is amended to read:

START_STATUTE23-779. Amount of benefits

A. The weekly benefit amount of an individual shall be an amount equal to one twenty-fifth of the person's total wages for insured work paid during that quarter of the person's base period in which such total wages were highest, but if:

1. From and after June 30, 1999 and before July 1, 2004, this amount is more than two hundred five dollars, the weekly benefit amount shall be two hundred five dollars.

2. 1. From and after June 30, 2004 through June 30, 2020, this amount is more than two hundred forty dollars $240, the weekly benefit amount shall be two hundred forty dollars $240.

2. From after June 30, 2020 through June 30, 2021, this amount is more than thirty-five percent of the average weekly wage of covered workers for this state as reported by the United States department of labor for the calendar year two years prior, the weekly benefit amount shall be thirty-five percent of the average weekly wage of covered workers for this state as reported by the United States department of labor for the calendar year two years prior.

3. From after June 30, 2021 through June 30, 2022, this amount is more than forty percent of the average weekly wage of covered workers for this state as reported by the United States department of labor for the calendar year two years prior, the weekly benefit amount shall be forty percent of the average weekly wage of covered workers for this state as reported by the United States department of labor for the calendar year two years prior.

4. From after June 30, 2022 through June 30, 2023, this amount is more than forty-five percent of the average weekly wage of covered workers for this state as reported by the United States department of labor for the calendar year two years prior, the weekly benefit amount shall be forty-five percent of the average weekly wage of covered workers for this state as reported by the United States department of labor for the calendar year two years prior.

5. From after June 30, 2023 through June 30, 2024, this amount is more than fifty percent of the average weekly wage of covered workers for this state as reported by the United States department of labor for the calendar year two years prior, the weekly benefit amount shall be fifty percent of the average weekly wage of covered workers for this state as reported by the United States department of labor for the calendar year two years prior.

6. From after June 30, 2024, this amount is more than fifty-five percent of the average weekly wage of covered workers for this state as reported by the United States department of labor for the calendar year two years prior, the weekly benefit amount shall be fifty-five percent of the average weekly wage of covered workers for this state as reported by the United States department of labor for the calendar year two years prior.

B. If the weekly benefit amount is less than the maximum weekly benefit prescribed in subsection A and is not a multiple of one dollar $1, the amount shall be rounded to the nearest dollar, with an even one-half dollar being rounded to the next higher multiple of one dollar $1. An individual's benefit amount shall not be redetermined during the person's benefit year because of a new maximum or minimum weekly benefit amount becoming effective during the person's benefit year.

C. Each eligible individual unemployed with respect to any week shall be paid with respect to that week a benefit in an amount equal to the person's weekly benefit amount less that part of the wages, if any, payable to the person with respect to that week which that is in excess of thirty dollars one-fourth of the person's weekly benefit amount. The benefit, if not a multiple of one dollar $1, shall be rounded to the nearest dollar, with an even one-half dollar being rounded to the next higher multiple of one dollar $1. END_STATUTE

Sec. 7. Retroactivity

This act applies retroactively to from and after June 30, 2020.