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• 2024 General Session
• H.B. 170

H.B. 170 Unemployment Insurance Amendments

• Bill Text
• Status
• Hearings/Debate

Bill Sponsor: Rep. Lee, Trevor

Floor Sponsor: Sen. Weiler, Todd D.

• Drafting Attorney: RuthAnne Oakey-Frost
• Fiscal Analyst: Josh Pittman

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• Bill Text
  • Introduced
  • Amended
    • Amended Pages Only
  • Enrolled

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• Related Documents
  • Fiscal Note
  • House Transmittal Letter 1
  • House Transmittal Letter 2
  • Senate Transmittal Letter 1
  • Senate Transmittal Letter 2
  • Senate Floor Amendment 1(passed)
  • Program Evaluation Questions

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• Information
  • Last Action: 13 Mar 2024, Governor Signed
  • Last Location: Lieutenant Governor's office for filing

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• Similar Bills
  • Unemployment Insurance
  • Department of Workforce Services
  • Workforce Services

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Enrolled

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H.B. 170

4 35A-4-405 35A-4-509

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UNEMPLOYMENT INSURANCE AMENDMENTS 2024 GENERAL SESSION STATE OF UTAH Chief Sponsor: Trevor Lee Senate Sponsor: Todd D. Weiler

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LONG TITLE

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General Description:

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This bill modifies the Employment Security Act.

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Highlighted Provisions:

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This bill:

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▸identifies certain conduct that may disqualify an individual from receiving

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unemployment benefits;

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▸requires the Unemployment Insurance Division within the Department of Workforce

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Services to make rules governing certain disqualifications for unemployment benefits;

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▸requires the Department of Workforce Services to develop and maintain a website for

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employers to access information and report possible fraud in relation to unemployment

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insurance; and

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▸makes technical changes.

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Money Appropriated in this Bill:

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None

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Other Special Clauses:

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None

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Utah Code Sections Affected:

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AMENDS:

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35A-4-405, as last amended by Laws of Utah 2013, Chapter 315

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ENACTS:

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35A-4-509, Utah Code Annotated 1953

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Be it enacted by the Legislature of the state of Utah:

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Section 1, Section 35A-4-405 is amended to read:

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35A-4-405. Ineligibility for benefits. Except as otherwise provided in Subsection (5), an individual is ineligible for

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benefits or for purposes of establishing a waiting period:

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(1) (a)For the week in which the claimant left work voluntarily without good cause, if

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so found by the division, and for each week thereafter until the claimant has

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performed services in bona fide, covered employment and earned wages for those

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services equal to at least six times the claimant's weekly benefit amount.

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(b)A claimant may not be denied eligibility for benefits if the claimant leaves work

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under circumstances where it would be contrary to equity and good conscience to

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impose a disqualification.

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(c)Using available information from employers and the claimant, the division shall

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consider for the purposes of this chapter the reasonableness of the claimant's actions,

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and the extent to which the actions evidence a genuine continuing attachment to the

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labor market in reaching a determination of whether the ineligibility of a claimant is

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contrary to equity and good conscience.

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(d)Except as provided in Subsection (1)(e), a claimant who has left work voluntarily to

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accompany or follow the claimant's spouse to a new locality does so without good

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cause for purposes of this Subsection (1).

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(e)A claimant who has left work voluntarily to accompany or follow the claimant's

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spouse to a new locality does so with good cause for purposes of this Subsection (1)

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and is eligible to receive benefits if:

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(i)the claimant's spouse is a member of the United States armed forces and the

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claimant's spouse has been relocated by a full-time assignment scheduled to last at

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least 180 days while on:

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(A)active duty as defined in 10 U.S.C. Sec. 101(d)(1); or

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(B)active guard or reserve duty as defined in 10 U.S.C. Sec. 101(d)(6);

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(ii)it is impractical as determined by the division for the claimant to commute to the

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previous work from the new locality;

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(iii)the claimant left work voluntarily no earlier than 15 days before the scheduled

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start date of the spouse's active-duty assignment; and

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(iv)the claimant otherwise meets and follows the eligibility and reporting

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requirements of this chapter, including registering for work with the division or, if

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the claimant has relocated to another state, the equivalent agency of that state.

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(2) (a)For the week in which the claimant was discharged for just cause or for an act or

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omission in connection with employment, not constituting a crime, which is

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deliberate, willful, or wanton and adverse to the employer's rightful interest, if so

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found by the division, and thereafter until the claimant has earned an amount equal to

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at least six times the claimant's weekly benefit amount in bona fide covered

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employment.

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(b)For the week in which the claimant was discharged for dishonesty constituting a

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crime or any felony or class A misdemeanor in connection with the claimant's work

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as shown by the facts, together with the claimant's admission, or as shown by the

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claimant's conviction of that crime in a court of competent jurisdiction and for the 51

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next following weeks.

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(c)Wage credits shall be deleted from the claimant's base period, and are not available

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for this or any subsequent claim for benefits.

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(3) (a) (i)If the division finds that the claimant has failed without good cause to

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properly :

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(A) apply for available suitable work , ;

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(B) appear for a scheduled interview for suitable work;

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(C) to accept a referral to suitable work offered by the employment office , ; or

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(D) to accept suitable work offered by an employer or the employment office.

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(ii) For purposes of Subsection (3)(a)(i)(D), the division shall consider a claimant's

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failure to accept an offer of suitable work from an employer or the employment

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office within three business days after the day on which the offer is sent as a

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failure to accept suitable work.

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(ii) (iii) The ineligibility continues until the claimant has performed services in bona

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fide covered employment and earned wages for the services in an amount equal to

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at least six times the claimant's weekly benefit amount.

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(b) (i)A claimant may not be denied eligibility for benefits for failure to apply,

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accept referral, or accept available suitable work under circumstances where it

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would be contrary to equity and good conscience to impose a disqualification.

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(ii)The division shall consider the purposes of this chapter, the reasonableness of the

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claimant's actions, and the extent to which the actions evidence a genuine

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continuing attachment to the labor market in reaching a determination of whether

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the ineligibility of a claimant is contrary to equity and good conscience.

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(c)In determining whether work is suitable for an individual, the division shall consider

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the:

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(i)degree of risk involved to the individual's health, safety, and morals;

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(ii)individual's physical fitness and prior training;

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(iii)individual's prior earnings and experience;

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(iv)individual's length of unemployment;

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(v)prospects for securing local work in the individual's customary occupation;

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(vi)wages for similar work in the locality; and

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(vii)distance of the available work from the individual's residence.

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(d)Prior earnings shall be considered on the basis of all four quarters used in

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establishing eligibility and not just the earnings from the most recent employer. The

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division shall be more prone to find work as suitable the longer the claimant has been

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unemployed and the less likely the prospects are to secure local work in his

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customary occupation.

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(e)Notwithstanding any other provision of this chapter, no work is suitable, and benefits

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may not be denied under this chapter to any otherwise eligible individual for refusing

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to accept new work under any of the following conditions:

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(i)if the position offered is vacant due directly to a strike, lockout, or other labor

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dispute;

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(ii)if the wages, hours, or other conditions of the work offered are substantially less

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favorable to the individual than those prevailing for similar work in the locality; or

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(iii)if as a condition of being employed the individual would be required to join a

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company union or to resign from or refrain from joining any bona fide labor

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organization.

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(f) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the

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division shall make rules governing ineligibility for benefits under this Subsection (3).

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(4)For any week in which the division finds that the claimant's unemployment is due to a

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stoppage of work that exists because of a strike involving the claimant's grade, class, or

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group of workers at the factory or establishment at which the claimant is or was last

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employed.

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(a)If the division finds that a strike has been fomented by a worker of any employer,

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none of the workers of the grade, class, or group of workers of the individual who is

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found to be a party to the plan, or agreement to foment a strike, shall be eligible for

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benefits. However, if the division finds that the strike is caused by the failure or

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refusal of any employer to conform to any law of the state or of the United States

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pertaining to hours, wages, or other conditions of work, the strike may not render the

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workers ineligible for benefits.

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(b)If the division finds that the employer, the employer's agent or representative has

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conspired, planned, or agreed with any of the employer's workers, their agents or

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representatives to foment a strike, that strike may not render the workers ineligible

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for benefits.

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(c)A worker may receive benefits if, subsequent to the worker's unemployment because

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of a strike as defined in this Subsection (4), the worker has obtained employment and

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has been paid wages of not less than the amount specified in Subsection 35A-4-401

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(4) and has worked as specified in Subsection 35A-4-403(1)(f). During the existence

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of the stoppage of work due to this strike the wages of the worker used for the

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determination of his benefit rights may not include any wages the worker earned

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from the employer involved in the strike.

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(5) (a)For each week a claimant obtains a benefit under this chapter by willfully making

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a false statement or representation or by knowingly failing to report a material fact,

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and a penalty of no more than 49 additional weeks as follows:

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(i)13 weeks for the first week the false statement or representation was made or fact

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withheld to receive a benefit; and

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(ii)six weeks for each additional week the false statement or representation was

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made or fact withheld to receive a benefit.

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(b)The additional penalty weeks shall begin on the Sunday of the week the

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determination finding the claimant in violation of this Subsection (5) is issued.

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(c) (i)Each claimant found in violation of this Subsection (5) shall repay to the

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division the overpayment and, as a civil penalty for fraud, an amount equal to the

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overpayment.

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(ii)The overpayment is the amount of benefits the claimant received by direct reason

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of fraud.

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(iii)Subject to the requirements of Subsection 35A-4-506(7), the civil penalty for

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fraud amount shall be treated as any other penalty under this chapter.

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(iv)The repayment of an overpayment and a civil penalty for fraud shall be

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collectible by civil action or warrant in the manner provided in Subsections

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35A-4-305 (3) and (5).

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(d)A claimant is ineligible for future benefits or waiting week credit, and any wage

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credits earned by the claimant shall be unavailable for purposes of paying benefits, if

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any amount owed under this Subsection (5) remains unpaid.

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(e)Determinations under this Subsection (5) shall be appealable in the manner provided

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by this chapter for appeals from other benefit determinations.

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(f)If the fraud determination is based solely on unreported or underreported work or

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earnings, or both, and the claimant would have been eligible for benefits if the work

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or earnings, or both, had been correctly reported, the individual does not lose

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eligibility for that week because of the misreporting but is liable for the overpayment

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and subject to the penalties in Subsection (5)(c) and the disqualification periods for

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future weeks in Subsection (5)(a).

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(6)For any week with respect to which or a part of which the claimant has received or is

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seeking unemployment benefits under an unemployment compensation law of another

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state or the United States. If the appropriate agency of the other state or of the United

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States finally determines that the claimant is not entitled to those unemployment

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benefits, this disqualification does not apply.

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(7) (a)For any week with respect to which the claimant is receiving, has received, or is

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entitled to receive remuneration in the form of:

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(i)wages in lieu of notice, or a dismissal or separation payment; or

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(ii)accrued vacation or terminal leave payment.

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(b)If the remuneration is less than the benefits that would otherwise be due, the claimant

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is entitled to receive for that week, if otherwise eligible, benefits reduced as provided

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in Subsection 35A-4-401(3).

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(8) (a)For any week in which the individual's benefits are based on service for an

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educational institution in an instructional, research, or principal administrative

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capacity and that begins during the period between two successive academic years, or

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during a similar period between two regular terms, whether or not successive, or

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during a period of paid sabbatical leave provided for in the individual's contract if the

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individual performs services in the first of those academic years or terms and if there

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is a contract or reasonable assurance that the individual will perform services in that

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capacity for an educational institution in the second of the academic years or terms.

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(b) (i)For any week in which the individual's benefits are based on service in any

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other capacity for an educational institution, and that week begins during a period

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between two successive academic years or terms if the individual performs those

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services in the first of the academic years or terms and there is a reasonable

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assurance that the individual will perform the services in the second of the

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academic years or terms.

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(ii)If compensation is denied to any individual under this Subsection (8) and the

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individual was not offered an opportunity to perform the services for the

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educational institution for the second of the academic years or terms, the

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individual shall be entitled to a retroactive payment of compensation for each

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week for which the individual filed a timely claim for compensation and for which

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compensation was denied solely by reason of this Subsection (8).

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(c)With respect to any services described in Subsection (8)(a) or (b), compensation

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payable on the basis of those services shall be denied to an individual for any week

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that commences during an established and customary vacation period or holiday

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recess if the individual performs the services in the period immediately before the

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vacation period or holiday recess, and there is a reasonable assurance that the

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individual will perform the services in the period immediately following the vacation

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period or holiday recess.

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(d) (i)With respect to services described in Subsection (8)(a) or (b), compensation

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payable on the basis of those services as provided in Subsection (8)(a), (b), or (c)

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shall be denied to an individual who performed those services in an educational

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institution while in the employ of an educational service agency in accordance

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with the Federal Unemployment Tax Act, 26 U.S.C. Sec. 3304(a)(6)(A)(iv).

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(ii)For purposes of this Subsection (8)(d), "educational service agency" means a

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governmental agency or entity established and operated exclusively for the

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purpose of providing the services described in Subsection (8)(a) or (b) to an

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educational institution.

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(e)With respect to services described in Subsection (8)(a) or (b), compensation payable

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on the basis of those services as provided in Subsection (8)(a), (b), or (c) shall be

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denied to an individual who performed those services:

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(i)to or on behalf of an educational institution in accordance with the Federal

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Unemployment Tax Act, 26 U.S.C. Sec. 3304(a)(6)(A)(v); and

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(ii)while employed by a governmental entity, Indian tribe, or nonprofit organization,

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to which the Federal Unemployment Tax Act, 26 U.S.C. Sec. 3309(a)(1) applies.

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(f)Benefits based on service in employment, defined in Subsections 35A-4-204(2)(d)

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and (e) are payable in the same amount, on the same terms and subject to the same

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conditions as compensation payable on the basis of other services subject to this

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chapter.

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(9)For any week that commences during the period between two successive sport seasons

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or similar periods if the individual performed any services, substantially all of which

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consist of participating in sports or athletic events or training or preparing to participate

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in the first of those seasons or similar periods and there is a reasonable assurance that

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individual will perform those services in the later of the seasons or similar periods.

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(10) (a)For any week in which the benefits are based upon services performed by an

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alien, unless the alien is an individual who has been lawfully admitted for permanent

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residence at the time the services were performed, was lawfully present for purposes

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of performing the services or was permanently residing in the United States under

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color of law at the time the services were performed, including an alien who is

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lawfully present in the United States as a result of the application of Subsection

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212(d)(5) of the Immigration and Nationality Act, 8 U.S.C. 1182(d)(5)(A).

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(b)Any data or information required of individuals applying for benefits to determine

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whether benefits are not payable to them because of their alien status shall be

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uniformly required from all applicants for benefits.

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(c)In the case of an individual whose application for benefits would otherwise be

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approved, no determination that benefits to the individual are not payable because of

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his alien status shall be made except upon a preponderance of the evidence.

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Section 2, Section 35A-4-509 is enacted to read:

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35A-4-509. Department to maintain website for employers.

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(1) The department shall develop and maintain a website through which employers may:

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(a) access the following information:

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(i) the division's rules and processes for the administration of this chapter;

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(ii) a description of conduct that disqualifies a claimant from receiving benefits under

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Section 35A-4-405;

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(iii) instructions for detecting and reporting possible violations of Section 35A-4-405;

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(iv) information about the process for determining whether a claimant has violated

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Section 35A-4-405, including the factors considered by the division in making the

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determination;

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(v) any other resources available to employers to assist in understanding the

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requirements of this chapter; and

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(vi) the division contact information;

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(b) report possible violations of Section 35A-4-405 to the division; and

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(c) communicate directly with the division.

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(2) The department shall ensure that the website described in Subsection (1):

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(a) is developed in a user-friendly manner with simple, easy-to-understand language; and

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(b) is directly accessible via a link from the main page of the division's website.

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Section 3. Effective date. This bill takes effect on May 1, 2024.