Assigned to COM                                                                                                                    FOR COMMITTEE

 


 

 

 


ARIZONA STATE SENATE

Fifty-Fifth Legislature, Second Regular Session

 

FACT SHEET FOR s.b. 1494

 

COVID-19 vaccine; unemployment insurance

Purpose

Prohibits the Department of Economic Security (DES) from disqualifying an individual from receiving unemployment insurance (UI) benefits based on the individual's separation from employment if the individual leaves employment due to the employer's requirement that the employee receive the COVID-19 vaccine or booster shot.

Background

Arizona's UI Program is administered by DES for the benefit of persons unemployed through no fault of their own. When an employee is eligible for benefits, the state pays those benefits out of the UI Trust Fund, funded with Arizona’s unemployment tax paid by employers. Employers also pay the federal unemployment tax, known as FUTA, which is collected by the federal government and is used to administer the UI Program at the federal and state levels
(A.R.S. Title 23, Chapter 4).

In order to be eligible for UI benefits under federal law, an individual must be able and available to work and must actively seek work (42 U.S.C. § 503). Arizona employment security law further prescribes UI benefit eligibility, including requirements relating to efforts to obtain work, an unemployment waiting period and when an individual is deemed to be unemployed (A.R.S. §§ 23-621 and 23-771).

There is no anticipated fiscal impact to the state General Fund associated with this legislation.

Provisions

1.   Prohibits DES from disqualifying an individual from receiving UI benefits based on the individual's separation from employment if the individual leaves employment due to the employer's requirement that the employee receive the COVID-19 vaccine or booster shot.

2.   Prohibits benefits paid to an individual from being charged against an employer's account if the employer's requirement that the employee receive the COVID-19 vaccine or booster shot is required by law.

3.   Makes technical and conforming changes.

4.   Becomes effective on the general effective date.

Prepared by Senate Research

January 31, 2022

JT/sr