HOUSE BILL NO. 572

INTRODUCED BY C. SQUIRES

A BILL FOR AN ACT ENTITLED: "AN ACT REVISING CERTAIN UNEMPLOYMENT LAWS TO REQUIRE THAT PAYMENTS FOR USE OF VACATION OR SICK LEAVE, COMPENSATION TIME, OR OTHER SIMILAR LEAVE PAID DURING THE COURSE OF EMPLOYMENT MUST BE ATTRIBUTED TO THE WEEK AND QUARTER IN WHICH THE PAYMENT WAS MADE; AMENDING SECTIONS 39-51-602, 39-51-2104, 39-51-2105, AND 39-51-2201, MCA; AND PROVIDING AN IMMEDIATE EFFECTIVE DATE AND A RETROACTIVE APPLICABILITY DATE."

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MONTANA:

Section 1. Section 39-51-602, MCA, is amended to read:

"39-51-602. Method to be used by department in keeping wage records. (1) Wage records kept by the department for the purposes of this chapter must be kept on the basis of wages paid, except that for the purposes of determining benefit eligibility and the amount and duration of benefits payable, wages, including lump-sum payments of accrued wages, must be assigned to periods of time as determined in accordance with rules adopted by the department.

(2) A payment for the use of vacation or sick leave, compensatory time, or other similar leave paid during the course of employment must be attributed to the week and quarter in which the payment was made."

Section 2. Section 39-51-2104, MCA, is amended to read:

"39-51-2104. General benefit eligibility conditions. (1) An unemployed individual is eligible to receive benefits for any week of total unemployment within the individual's benefit year only if the department finds that the individual:

(a) has filed a claim at and has continued to report at an employment office in accordance with rules that the department may prescribe, except that the department may by rule prescribe that in cases in which it finds the requirements oppressive or inconsistent with the purposes of this chapter, an unemployed individual may file a claim and report for work by mail or through other governmental agencies;

(b) is able to work, is available for work, and is seeking work. A claimant is not considered ineligible in any week of unemployment for failure to comply with the provisions of this subsection if the failure is because of:

(i) an illness or disability that occurs after the claimant has registered for work and suitable work has not been offered to the claimant after the beginning of the illness or disability; or

(ii) enrollment as a student as provided in 39-51-2307.

(c) prior to the first week for which the individual is paid benefits, has been totally unemployed for a waiting period of 1 week. A week is not counted as a week of total unemployment for the purposes of this subsection:

(i) if benefits have been paid for that week;

(ii) unless the individual was eligible for benefits during the week;

(iii) unless it occurs within the benefit year of the claimant;

(iv) unless it occurs after benefits first could become payable to any individual under this chapter.

(2) For the purpose of determining eligibility for benefits, a payment for the use of vacation or sick leave, compensatory time, or other similar leave paid during the course of employment is attributable to the week and quarter in which the payment was made.

(3) (a) The department shall establish a profiling system to identify individuals who are likely to exhaust their regular benefits and who are in need of reemployment services.

(b) In addition to the requirements listed in subsection (1), an individual identified pursuant to subsection (2)(a) may be required to participate in reemployment services in order to be eligible for unemployment benefits.

(c) The requirement for participation in reemployment services may be waived if the department determines that:

(i) the individual has completed reemployment services; or

(ii) the individual's failure to participate in reemployment services is justifiable."

Section 3. Section 39-51-2105, MCA, is amended to read:

"39-51-2105. Qualifying wages. (1) To qualify for benefits, an individual must have been paid total wages for employment in the base period in an amount:

(a) not less than 1 1/2 times the wages earned in the calendar quarter in which wages were the highest during the base period; however, the total wages in the base period must be equal to or greater than 7% of the average annual wage described in 39-51-2201; or

(b) equal to or greater than 50% of the average annual wage described in 39-51-2201.

(2) A payment for use of vacation or sick leave, compensatory time, or other similar leave paid during the course of employment must be attributed to the week and quarter in which the payment was made."

Section 4. Section 39-51-2201, MCA, is amended to read:

"39-51-2201. Weekly benefit amount -- determination of average weekly wage.

(1) For claims filed on or after July 7, 1991, an individual's weekly benefit amount must be an amount equal to 1% of the total base period wages or equal to 1.9% of the total wages paid in the 2 calendar quarters in which wages were the highest during the base period. The weekly benefit amount, if not a multiple of $1, must be rounded to the nearest lower full dollar amount. However, the amount may not be less than the minimum or more than the maximum weekly benefit amount.

(2) On or before May 31 of each year, the total wages paid by all employers as reported on contribution reports submitted on or before the date for the preceding calendar year must be divided by the average monthly number of individuals employed during the same preceding calendar year as reported on such contribution reports. The amount obtained is the average annual wage. The average annual wage divided by 52, rounded to the nearest cent, is the average weekly wage. Sixty percent of the average weekly wage constitutes the maximum weekly benefit amount and applies to all maximum weekly benefit amount claims for benefits filed to establish a benefit year commencing on or after July 1 of the same year, except that the maximum weekly benefit amount for benefit years commencing on or after July 1, 1984, through January 3, 1987, is the amount calculated under this subsection after January 1, 1984, and on or before May 31, 1984. The maximum weekly benefit amount, if not a multiple of $1, must be computed to the nearest lower full dollar amount.

(3) The minimum weekly benefit amount is 15% of the average weekly wage. The minimum weekly benefit amount, if not a multiple of $1, must be computed to the nearest lower full dollar amount.

(4) A payment for use of vacation or sick leave, compensatory time, or other similar leave paid during the course of employment is attributable to the week and quarter in which the payment is made."

NEW SECTION. Section 5. Effective date. [This act] is effective on passage and approval.

NEW SECTION. Section 6. Retroactive applicability. [This act] applies retroactively, within the meaning of 1-2-109, to claims filed on or after January 1, 1998.

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