Unemployment insurance
Drug testing
Current state law requires DWD to establish a program to test certain
claimants who apply for unemployment insurance (UI) benefits for the presence of
controlled substances that is consistent with federal law. 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. The bill repeals the
requirement to establish the drug testing program.
Also under current law, an employer may voluntarily submit to DWD the
results of a preemployment test for the presence of controlled substances that was
conducted on an individual as a condition of an offer of employment or notify DWD
that an individual declined to submit to such a test. If DWD then verifies that
submission, the employee may be ineligible for benefits until he or she requalifies.
However, a claimant who tested positive may maintain eligibility by enrolling in a
substance abuse treatment program and undergoing a job skills assessment. The bill
repeals these preemployment drug testing provisions.
Benefit rates
Under current law, a person who qualifies for UI receives a weekly benefit equal
to a percentage of that person's past earnings, but the weekly benefit is capped at
$370. The bill changes the maximum weekly benefit in the following ways:
1. For benefits paid for weeks of unemployment beginning on or after January
2, 2022, but before January 1, 2023, the maximum weekly benefit is capped at $409.
2. For benefits paid for weeks of unemployment beginning on or after January
1, 2023, but before December 31, 2023, the maximum weekly benefit is capped at 50
percent of the state's annual average weekly wages.
3. For benefits paid for weeks of unemployment beginning on or after December
31, 2023, the maximum weekly benefit is capped at 75 percent of the state's annual
average weekly wages, or the maximum weekly benefit amount from the previous
year, whichever is greater.
Under the bill, DWD is required to calculate the state's annual average weekly
wage for each year based on quarterly wage reports that are submitted to DWD. The
state's annual average weekly wage is calculated by June 30 of each year and is used
to calculate the following year's maximum weekly benefit amount.
Waiting period
Currently, a claimant must wait one week after becoming eligible to receive UI
benefits before the claimant may receive benefits for a week of unemployment,
except for periods during which the waiting period is suspended. The waiting period
does not affect the maximum number of weeks of a claimant's benefit eligibility. The
bill deletes the one-week waiting period, thus permitting a claimant to receive UI
benefits beginning with his or her first week of eligibility.
Social security disability insurance payments
Under current law, in any week in any month that a claimant is issued a benefit
under the federal social security disability insurance program (SSDI benefits), that
claimant is ineligible for UI benefits. The bill repeals that prohibition and instead
requires DWD to reduce a claimant's UI benefit payments by the amount of SSDI
payments. The bill requires DWD to allocate a monthly SSDI payment by allocating
to each week the fraction of the payment attributable to that week.
Work search and registration
Under current law, a claimant for UI benefits is generally required to register
for work and to conduct a work search for each week in order to remain eligible.
Current law requires DWD to waive these requirements under certain
circumstances, for example, if a claimant who is laid off from work reasonably
expects to be recalled to work within 12 weeks, will start a new job within four weeks,
routinely obtains work through a labor union referral, or is participating in a
training or work-share program. Under current law, DWD may modify the statutory
waivers or establish additional waivers by rule only if doing so is required or
specifically allowed by federal law.
The bill removes the waiver requirements from statute and instead allows
DWD to establish waivers for the registration for work and work search
requirements by rule. The bill also specifies that the work search requirement does
not apply to a claimant who has been laid off but DWD determines that the claimant
has a reasonable expectation to be recalled to work.
Acceptance of suitable work
Under current law, if a claimant for UI benefits fails, without good cause, to
accept suitable work when offered, the claimant is ineligible to receive benefits until
he or she earns wages after the week in which the failure occurs equal to at least six
times the claimant's weekly UI benefit rate in covered employment. Current law
specifies what is considered “suitable work” for purposes of these provisions, with
different standards applying depending on whether six weeks have elapsed since the
claimant became unemployed. Once six weeks have elapsed since the claimant
became unemployed, the claimant is required to accept work that pays lower and
involves a lower grade of skill.
The bill modifies these provisions described above so that the claimant is not
required to accept less favorable work until 10 weeks have elapsed since the claimant
became unemployed.
Termination due to substantial fault
Under current law, a claimant for UI benefits whose work is terminated by his
or her employer for substantial fault by the claimant connected with the claimant's
work is ineligible to receive UI benefits until the claimant qualifies through
subsequent employment. With certain exceptions, current law defines “substantial
fault” to include those acts or omissions of a claimant over which the claimant
exercised reasonable control and that violate reasonable requirements of the
claimant's employer. The bill repeals this provision on substantial fault.
Quits due to nonsuitable work
Under current law, unless an exception applies, if a claimant for UI benefits
quits his or her job, the claimant is generally ineligible to receive unemployment
insurance benefits until he or she qualifies through subsequent employment. Under
one such exception, if a claimant quits his or her job and 1) the claimant accepted
work that was not suitable work under the UI law or work that the claimant could
have refused; and 2) the claimant terminated the work within 30 calendar days after
starting the work, the claimant remains eligible to collect UI benefits. Under the bill,
this exemption applies if the claimant terminated that work within
10 weeks after
starting the work.
Quits due to relocations
Under current law, if an employee's spouse is a member of the U.S. armed forces
on active duty and is relocated, and the employee quits his or her job in order to
relocate with his or her spouse, the employee remains eligible to collect UI benefits.
The bill expands this exception so that it applies to an employee who quits
employment in order to relocate with a spouse who is required by any employer, not
just the U.S. armed forces, to relocate.
Worker misclassification penalties
Current law requires DWD to assess an administrative penalty against an
employer engaged in construction projects or in the painting or drywall finishing of
buildings or other structures who knowingly and intentionally provides false
information to DWD for the purpose of misclassifying or attempting to misclassify
an individual who is an employee of the employer as a nonemployee under the UI law.
The penalty under current law is $500 for each employee who is misclassified, not
to exceed $7,500 per incident. Current law additionally requires DWD to assess an
administrative penalty against such an employer who, through coercion, requires an
individual to adopt the status of a nonemployee in the amount of $1,000 for each
individual so coerced, but not to exceed $10,000 per calendar year. Penalties are
deposited in the unemployment program integrity fund.
The bill removes the $7,500 and $10,000 limitations on these penalties and
provides that the penalties double for each act occurring after the date of the first
determination of a violation. The bill also removes the limitations on the types of
employers to which the penalties apply, allowing them to be assessed against any
type of employer that violates the above prohibitions.
Wage threshold for receipt of benefits
Under current law, a claimant for UI benefits is generally ineligible to receive
any benefits for a week if the claimant receives or is considered to have received
wages or other amounts from employment totaling more than $500. The bill repeals
this ineligibility provision. However, the bill does not affect the partial benefits
formula, which reduces a claimant's weekly UI benefit payment by a certain
percentage of wages earned in a week by the claimant.
Electronic transactions with DWD
Currently, with certain exceptions, each employer that has employees who are
engaged in employment covered by the UI law must file quarterly contribution (tax)
and employment and wage reports and make quarterly payment of its contributions
to DWD. An employer of 25 or more employees or an employer agent that files reports
on behalf of any employer must file its reports electronically. Current law also
requires each employer that makes contributions for any 12-month period ending
on June 30 equal to a total of at least $10,000 to make all contribution payments
electronically in the following year. Finally, current law allows DWD to provide a
secure means of electronic interchange between itself and employing units,
claimants, and other persons that, upon request to and with prior approval by DWD,
may be used for transmission or receipt of any document specified by DWD that is
related to the administration of the UI law in lieu of any other means of submission
or receipt.
The bill makes use of these electronic methods mandatory in all cases, unless
the employer or other person demonstrates good cause for being unable to use the
electronic method, as determined by DWD by rule. The bill also provides that DWD
may permit the use of electronic records and electronic signatures for any document
specified by DWD that is related to the administration of the UI law.
State employment
Paid sick leave for limited term employees
Under current law, permanent and project state employees receive the
following paid leave: vacation; personal holidays; sick leave; and legal holidays. The
bill requires the state to provide paid sick leave to limited term employees of the state
at the same rate as to permanent and project state employees.
Paid parental leave
The bill requires the administrator of the Division of Personnel Management
in DOA to develop a program for paid parental leave for most state employees. The
bill requires the administrator to submit the plan for approval as a change to the
state compensation plan to the Joint Committee on Employment Relations. If
JCOER approves the plan, the plan becomes effective immediately.
The bill also requires the Board of Regents of the UW System to develop a plan
for a program for paid parental leave for employees of the system and requires the
board to submit the plan to the administrator of the Division of Personnel
Management in DOA with its compensation plan changes for the 2021-23 biennium.
Vacation hours for state employees
The bill provides additional annual leave hours to state employees during their
third, fourth, and fifth years of service.
Under current law, state employees who are in nonexempt status under the
federal Fair Labor Standards Act earn annual leave at the rate of 104 hours per year
of continuous service during the first five years of service and, on an employee's fifth
anniversary of continuous service, the rate increases to 144 hours of annual leave per
year of continuous service. Under the bill, beginning on the employee's second
anniversary, a state employee in nonexempt status begins earning vacation hours at
the rate of 120 hours per year of service.
Under current law, state employees who are in exempt status under the federal
Fair Labor Standards Act earn annual vacation at the rate of 120 hours per year of
continuous service during the first five years of service and, on the fifth anniversary
of continuous service, the rate increases to 160 hours of annual leave per year of
continuous service. Under the bill, beginning on the employee's second anniversary,
a state employee in exempt status begins earning vacation hours at the rate of 136
hours per year of service.
Merit pay raises for state public defenders
Under current law, there is an assistant state public defender pay progression
plan, which consists of 17 hourly salary steps, with each step equal to
one-seventeenth of the difference between the lowest hourly salary and the highest
hourly salary. The plan provides that no salary adjustment under the plan may
increase an assistant state public defender's salary by more than 10 percent of his
or her base pay during a fiscal year.
The bill allows the state public defender board to provide merit-based pay
raises under the assistant state public defender pay progression plan in fiscal year
2022 that may exceed 10 percent of an assistant state public defender's base pay for
assistant state public defenders who were employed by the state public defender
board before July 1, 2021.
Director of the Legislative Technology Services Bureau
The director of the Legislative Technology Services Bureau is currently
assigned to executive salary group five, which, effective January 3, 2021, has an
annual pay range of $89,045 to $146,931. The bill reassigns the director to executive
salary group six, which, effective January 3, 2021, has an annual pay range of
$96,179 to $158,704. Within this range, the Joint Committee on Legislative
Organization determines the director's annual salary.
Jobs and job training
Worker connection program
The bill requires DWD to establish a worker connection program to be
administered by DWD to help prospective employee participants prepare for and
enter quality jobs in targeted employment sectors identified by DWD as having high
opportunities for career growth.
Pandemic recovery grants
The bill requires DWD to establish and operate a program to provide grants to
local workforce development boards to fund pandemic recovery efforts to emphasize
training, skill development, and economic recovery for individuals and businesses.
The grants may be used for virtual and in-person job training, employment
navigators or coaches, skill assessment, transportation, soft skill development,
career or talent search services, and other programs to return employees to the labor
market.
Pandemic workforce training program grants
The bill creates a pandemic workforce training program to be administered by
DWD. Under the program, DWD is required to award grants to public and private
organizations for the development and implementation of pandemic workforce
training programs. The grants may be used for virtual and in-person job training,
employment navigators or coaches, skill assessment, transportation, soft skill
development, career or talent search services, and other programs to return
employees to the labor market. The bill also permits DWD to require a public or
private organization, as a condition of receiving a grant, to provide matching funds
at a percentage to be determined by DWD.
Green jobs training program grants
The bill creates a green jobs training program to be administered by DWD.
Under the program, DWD is required to award grants to public and private
organizations for the development and implementation of green jobs training
programs. The bill defines green jobs as jobs that produce goods or provide services
that benefit the environment or conserve natural resources. The bill also permits
DWD to require a public or private organization, as a condition of receiving a grant,
to provide matching funds at a percentage to be determined by DWD.
Health care recruitment initiative
The bill requires DWD, in coordination with local workforce development
boards, to 1) undertake a statewide recruitment initiative to promote and connect
individuals with nurse aide instructional programs and employment opportunities
and to promote other health care provider employment opportunities and 2) create
a free, four-hour course that individuals may take to explore career opportunities
within the field of human services or health care delivery.
Project SEARCH program
Under current law, DWD is authorized to enter into contracts to provide
employment skills services to individuals with developmental disabilities under the
Project SEARCH program. The program is currently operated by the Cincinnati
Children's Hospital, and DWD administers the program for residents of this state.
The bill changes the source of funding for the program to a dedicated appropriation
in DWD. The bill also specifically authorizes DWD to engage in a number of activities
related to the Project SEARCH program.
Hire Heroes program
Under current law, DWD administers the Hire Heroes program, which provides
transitional jobs to veterans and reimburses employers of veterans for wages and
other related costs. In order for a veteran to be eligible to participate in the program,
he or she must be a DVA-certified veteran, be at least 18 years old, be ineligible to
participate in the Wisconsin Works program, be unemployed for at least four weeks,
and satisfy any applicable substance abuse screening, testing, and treatment.
Prospective program participants must also submit an application to the program no
later than seven years after the date of discharge from military service. The bill
removes the seven-year limit on when veterans may submit an application to the
program.
Modification to employment transit assistance program
Under current law, DWD is required to administer an employment transit
assistance program to address the deficiency in access to employment locations for
workers and persons seeking employment. Current law limits funding under the
program to projects in outlying suburban and sparsely populated and developed
areas that are not adequately served by a mass transit system. The bill removes
those geographic restrictions.
Penalties for uninsured employers
Under current law, DWD is required to assess an administrative penalty
against an employer who requires an employee to pay for any part of worker's
compensation insurance or who fails to provide mandatory worker's compensation
insurance coverage. If the employer violates those requirements, for the first 10
days, the penalty under current law is not less than $100 and not more than $1,000
for such a violation. If the employer violates those requirements for more than 10
days, the penalty under current law is not less than $10 and not more than $100 for
each day of such a violation.
The bill provides that the penalty for violations occurring after the second such
violation is $3,000 per violation, or three times the amount of the insurance premium
that would have been payable, whichever is greater. The bill also provides that the
penalty for violations occurring after the third such violation is $4,000 per violation,
or four times the amount of the insurance premium that would have been payable,
whichever is greater.
Also under current law, if an employer who is required to provide worker's
compensation insurance coverage provides false information about the coverage to
his or her employees or contractors who request information about the coverage, or
who fails to notify a person who contracts with the employer that the coverage has
been canceled in relation to the contract, DWD is required to assess a penalty of not
less than $100 and not more than $1,000 for each such violation.
The bill provides that the penalty for violations occurring after the third such
violation is $3,000 per violation, and $4,000 for violations occurring after the fourth
such violation.
Substantial fault
Currently, under the worker's compensation law, an employer is not liable for
temporary disability benefits during an employee's healing period if the employee is
suspended or terminated from employment due to substantial fault by the employee
connected with the employee's work. With certain exceptions, current law defines
“substantial fault” to include those acts or omissions of an employee over which the
claimant exercised reasonable control and that violate reasonable requirements of
the claimant's employer. The bill repeals this provision on substantial fault.
Electronic transmission of records and payments
Under current law, in actions regarding worker's compensation claims, most
information, forms, and documents must be mailed using the U.S. mail or provided
in-person. The bill allows DWD, the Division of Hearings and Appeals in DOA, and
the Labor and Industry Review Commission to send certain information, forms,
notices, and documents regarding worker's compensation actions electronically,
rather than exclusively by U.S. mail, including information regarding all of the
following: hearings, findings and awards, preference for claims under bankruptcy,
employer penalties, hazardous exposure, levies for delinquent payments, and
citations. Under the bill, DWD, DHA, and LIRC must get consent to provide the
information, forms, notices, and documents electronically.
Also, the bill requires payments for worker's compensation awards to be made
by direct deposit or electronic funds transfer unless the claimant cannot receive
payments electronically, does not want to receive the payment electronically, or if the
insurer, self-insured employer, or third-party payer is not able to issue payments
electronically.
Administration and finance
Equal rights hearings
Under current law, when DWD holds a complaint hearing regarding an alleged
open housing violation, alleged discrimination in a public place of accommodation or
amusement, or alleged discrimination, unfair honesty testing, or unfair genetic
testing, DWD is required to hold the hearing in the county in which the violation is
alleged to have occurred. The bill removes the requirement that such hearings be
held in the county in which the violation is alleged to have occurred, and requires
DWD to designate the place of hearing, which may include a remote, web-based, or
in-person hearing in a location accessible and in proximity to the parties.
Fees for work permits for minors
Under current law, a portion of fees collected by local permit officers for work
permits for minors is forwarded to DWD. A portion of the fees collected by or
forwarded to DWD for these permits is appropriated to DWD, and a portion of those
fees is deposited into the general fund and is available for general purpose revenue.
The bill credits the entire amount of fees collected by or forwarded to DWD to the
appropriation account for the permit system for employment of minors.
Youth apprenticeship funding
Under current law, DWD is authorized to provide a youth apprenticeship
program and may award grants to local partnerships for the implementation and
coordination of local youth apprenticeship programs. Current law requires DWD to
fund the development of youth apprenticeship program curricula from its general
program operations appropriation. The bill permits the funding of youth
apprenticeship program curricula development from any allowable source.
Worker's compensation uninsured employers fund
DWD administers the worker's compensation program in this state. Employers
are required to have worker's compensation insurance or to self-insure. The
program includes an uninsured employers fund (UEF), which is used to pay worker's
compensation benefits on claims filed by employees who are injured while working
for uninsured employers in this state. The money for the UEF comes from, among
various sources, penalties assessed against uninsured employers. The bill changes
the appropriation for the UEF from a sum sufficient appropriation to a continuing
appropriation.
Reimbursements for supplemental worker's compensation benefits
Under current law, worker's compensation insurers are required to pay
supplemental benefits to certain employees who were permanently disabled by an
injury that is compensable under worker's compensation.
DWD is authorized to collect up to $5,000,000 from insurers that provide
worker's compensation insurance to provide those supplemental benefits. This
money must be used exclusively to provide reimbursements to insurers that pay
those supplemental benefits and that request reimbursements. The bill creates a
new, separate appropriation in the worker's compensation operations fund, to be
used exclusively to provide these reimbursements. The bill does not increase
revenue to DWD or collections from insurers.
Unemployment insurance; appropriation for administration
