Various changes to the unemployment insurance law, a grant program for hiring qualified long-term unemployment recipients, allocation of federal American Rescue Plan Act of 2021 funding for certain purposes, the state plan under the federal Workforce Innovation and Opportunity Act of 2014, federal Reemployment Services and Eligibility Assessment grants, employment outcome data reporting, extending the time limit for emergency rule procedures, providing an exemption from emergency rule procedures, and granting rule-making authority. (FE)

General qualifying requirements Under current law, a claimant for UI benefits is generally required to 1) register for work, 2) be able to work and available for work, and 3) conduct a work search for each week in order to remain eligible. A claimant is required to conduct at least four work search actions each week, and DWD may require, by rule, that an individual conduct more than four work search actions per week. Finally, if a claimant is claiming benefits for a week other than an initial week, the claimant must provide information or job application materials that are requested by DWD and participate in a public employment office workshop or training program or in similar reemployment services required by DWD.

This bill does the following:

1. Requires, for the third and subsequent weeks of a claimant's benefit year, that at least two of the required weekly work search actions be direct contacts with potential employers.

2. Requires a claimant who resides in this state, for each week other than an initial week, to submit and keep posted on the DWD's job center website a current resume.

3. Requires, when a claimant is claiming benefits with less than three weeks of benefits left, that the claimant complete a reemployment counseling session.

Additionally, current law allows DWD to use information or job application materials described above to assess a claimant's efforts, skills, and ability to find or obtain work and to develop a list of potential opportunities for a claimant to obtain suitable work. However, current law provides that a claimant who otherwise satisfies the required weekly work search requirement is not required to apply for any specific positions on the list of potential opportunities in order to satisfy the work search requirement. The bill requires, instead of allows, DWD to provide this assistance. The bill also repeals the language in current law providing that a claimant who otherwise satisfies the weekly work search requirement is not required to apply for specific positions provided by DWD and requires DWD to provide each claimant with at least four potential opportunities each week, one or more of which may be opportunities with a temporary help company.

Finally, current law allows DWD to require a claimant to participate in a public employment office workshop or training program. This bill provides that DWD must require a claimant to participate in a public employment office workshop or training program if the claimant is likely to exhaust regular UI benefits. DWD may also require other claimants to participate in a public employment office workshop or training program, but must prioritize claimants more likely to have difficulty obtaining reemployment.

Drug testing Current state law requires DWD to establish a program that is consistent with federal law to test certain claimants who apply for UI benefits for the presence of controlled substances. A claimant who tests positive for a controlled substance for which the claimant does not have a prescription is ineligible for UI benefits until certain requalification criteria are satisfied or unless he or she enrolls in a substance abuse treatment program and undergoes a job skills assessment, and a claimant who declines to submit to a test is simply ineligible for benefits until he or she requalifies.

Claimants who are required to undergo drug testing include individuals for whom suitable work is only available in occupations for which drug testing is regularly conducted in this state. However, current law provides that these provisions do not apply until DWD promulgates rules to implement the requirements and those rules take effect, including rules identifying occupations for which drug testing is regularly conducted in this state.

This bill requires DWD to immediately promulgate the required rules.

Reemployment Services and Eligibility Assessment grants Under federal law, the United States Department of Labor (USDOL) operates the Reemployment Services and Eligibility Assessment (RESEA) program, whereby grants are awarded to states to provide reemployment services to claimants.

Participation in the RESEA program is voluntary and requires that a state submit a state plan to USDOL that outlines how the state intends to conduct a program of reemployment services and eligibility assessments.

This bill requires that DWD act to continue to participate in the RESEA program and provide RESEA services to all UI claimants likely to exhaust regular UI benefits. The bill further requires DWD, until December 31, 2024, to provide certain RESEA services to all UI claimants and requires the governor to allocate moneys available under the federal American Rescue Plan Act of 2021 to provide these services.

Wage threshold for receipt of benefits Under current law, if a claimant for UI earns more than $30 in a given week, the partial benefits formula reduces the claimant's weekly UI benefit payment by a certain percentage of the wages earned over $30. Under current law, if a claimant receives wages totaling more than $500 in a given week, the claimant is generally ineligible to receive any benefits. This bill changes the partial benefits formula so that the UI benefit payment is not reduced unless a claimant earns more than $30 or 40 percent of the claimant's weekly benefit rate in a given week, whichever amount is greater. However, the bill does not affect the $500 cap on wages for receipt of benefits.

Other changes Grant program for hiring long-term unemployment recipients The bill directs the governor to allocate sufficient moneys of the moneys received from the federal government under the American Rescue Plan Act of 2021 for costs associated with a grant program to provide payments to employers that hire qualified long-term unemployment benefit recipients who became unemployed due to the COVID-19 pandemic. Under the program, an employer may receive up to two payments of up to $1,000 each for each qualified long-term unemployment recipient the employer hires as compensation for wages, training, benefits, and other employment costs incurred by the employer.

WIOA State Plan Under the federal Workforce Innovation and Opportunity Act of 2014 (WIOA), federal funds are allocated to the state and, in turn, to local workforce development areas designated by the governor to provide employment and training activities for job seekers and workers. The WIOA repealed a prior law known as the federal Workforce Investment Act of 1998, which contained many similar provisions. To receive funding under the WIOA, the state must undertake a number of activities, including submitting a state plan to the federal government. A plan must outline a four-year strategy for the state's workforce development system. This bill requires the combined state plan submitted by the state to include programs authorized under state unemployment compensation laws, which is one of the 11 specific federal programs listed in the WIOA that states may include in their plans to assist in workforce development.

The bill also updates references to the United States Code regarding the WIOA.

Data reporting The bill requires DWD, using quarterly wage data filed by employers with DWD, to semiannually compile data and prepare a report to provide information on and analysis of the employment outcomes of claimants after receiving UI benefits.

Each claimant's wage data must be used for 12 quarters following the claimant's first of benefits.