Advisory Council Meeting – Sept. 19th

At this meeting, DWD for the most part announced and supplied various documents regarding the changes to unemployment law via Act 36 and the UI portions of Act 20.

DWD offered up two documents describing the upcoming changes to unemployment law. One is 21 pp. and covers Act 20, Act 36, and the WorkShare legislation  (makes UI available to employees that work reduced hours for an employer who opts for this benefit for its employees). The other is a 5 pp. table listing the change at issue, the effective date, the new/changed statute or administrative rule, and the source of the change.

Legislators continue to introduce legislation. There is a bill to provide benefits to employees out of work because of a strike by others. The strike a few years back at Manitowoc Crane presented this exact situation, and DWD indicated in an attached memo that LIRC ruled in that case for making the affected workers eligible for UI benefits. DWD’s fiscal analysis indicates a cost of almost $800,000. Given that LIRC ruled in the employee’s favor, it seems that the bill’s cost is actually minimal — the administrative costs of implementation.

Second, SB273 proposes that DWD provide calling assistance and information for folks needing information about their equal rights, workers’ compensation, and unemployment cases. The fiscal impact is under $200,000. Not discussed much is that DWD supposedly has claim specialists dedicated to answering these kinds of questions by phone (for now).

SB276 creates a new independent contractor test for workers compensation and unemployment law that basically makes someone working from home under a written agreement an independent contractor. Yes, the language is that broad, and it would be a major change in both areas of law. The fiscal impact could be $5 million plus and employers would still be hit with additional federal unemployment taxes, as this language runs afoul of federal requirements.

Finally, AB374 seeks to eliminate the one-week waiting period — claimants must now wait one week without benefits before receiving their first check — that was implemented last year. The fiscal impact would lead to a $45 million increase in benefits being paid out and so also lead to an increase in employer taxes. The net impact on the trust fund is estimated to be $28 million.

DWD also announced that emergency regs for DWD 126, DWD 127, and DWD 129 went to Gov. Walker the day of the meeting. DWD hopes to get these rules implemented in early October (more on these new rules in another post). Then hearings on permanent rules will take place with the goal of making the rules permanent by the middle of next year.

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s