Senate Committee Substitute

SCS/HCS/HB 611 - This act modifies the law relating to employment.

Under current law, employers are required to have each newly hired employee to fill out a federal W-4 form. Those forms are forwarded to the Department of Revenue and then to the Division of Child Support Enforcement. This act defines a "newly hired employee" as one who has not been previously employed by the employer or was previously employed but separated from employment for at least 60 days.

If the department of labor conducts an audit and finds that an individual is misclassified as an independent contractor and the finding is appealed, fines and interest for misclassifying an employer shall be tolled during the appeal.

This act redefines "misconduct" for which an employee may be disqualified from unemployment benefits. Currently, misconduct includes a wanton or willful disregard of the employer's interest and a disregard of standards of behavior the employer has the right to respect. The act changes that standard to a knowing disregard of that interest and a knowing violation of the standards the employer expects. Currently, an intentional and substantial disregard of the employer's interest or of the employer's duties and obligations to the employer also qualifies as misconduct. The act changes that standard to a knowing disregard of such interests, duties and obligations. Currently, a deliberate violation of the employer's rules constitutes misconduct. Under the act, a violation of an employer's rule is misconduct unless the employee demonstrates that he or she did not know and could not reasonably know the requirement or the rule is unlawful.

Misconduct also includes a violation of a no-call, no-show policy, chronic absenteeism, tardiness, unapproved absences following a written warning, and a knowing violation of a state standard or regulation of an employee of a licensed employer which would cause the employer to be sanctioned.

The misconduct standard shall apply when the conduct is reasonably related to the job environment and the job performance and irrespective of whether it occurs at the workplace or during work hours.

Currently, employees are disqualified from benefits if they voluntarily leave work without good cause. The act defines "good cause" as that which would compel a reasonable employee to cease working or which would require separation from work due to illness or disability.

Employer's unemployment accounts shall not be relieved of charges relating to payments that were erroneously made from the unemployment compensation fund if the payment was made because the employer failed to respond to the division and the employer has established a pattern of failing to respond.

Under current law, employer payments made for penalties are credited to the special employment security fund. Under the act, 15% of the amount of benefits fraudulently obtained shall be credited to the unemployment compensation fund with the remaining amount credited to the special employment compensation fund.

This act contains provisions that are identical to provisions in SS/SB 28 (2013).

CHRIS HOGERTY


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