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SF 1454

2nd Engrossment - 86th Legislature (2009 - 2010) Posted on 02/09/2010 02:21am

KEY: stricken = removed, old language.
underscored = added, new language.
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A bill for an act
relating to unemployment insurance; providing for a shared work plan; proposing
coding for new law in Minnesota Statutes, chapter 268; repealing Minnesota
Statutes 2008, section 268.135.

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

Section 1.

new text begin [268.136] SHARED WORK.
new text end

new text begin Subdivision 1. new text end

new text begin Shared work agreement requirements. new text end

new text begin (a) An employer may
submit a proposed shared work plan for an employee group to the commissioner for
approval in a manner and format set by the commissioner. The proposed agreement
must include:
new text end

new text begin (1) a certified statement that the normal weekly hours of work of all of the proposed
participating employees was full-time but are now reduced, or will be reduced, with a
corresponding reduction in pay, in order to prevent layoffs;
new text end

new text begin (2) the name and Social Security number of each participating employee;
new text end

new text begin (3) a certified statement of when each participating employee was first hired by the
employer, which must be at least one year before the proposed agreement is submitted;
new text end

new text begin (4) the hours of work each participating employee will work each week for the
duration of the agreement, which must be at least 20 hours and no more than 32 hours
per week, except that the agreement may provide for a uniform vacation shutdown of up
to two weeks;
new text end

new text begin (5) the proposed duration of the agreement, which must be at least two months and
not more than one year, although an agreement may be extended for up to an additional
year upon approval of the commissioner;
new text end

new text begin (6) a starting date beginning on a Sunday at least 15 calendar days after the date
the proposed agreement is submitted; and
new text end

new text begin (7) a signature of an owner or officer of the employer who is listed as an owner or
officer on the employer's account under section 268.045.
new text end

new text begin (b) An agreement may not be approved for an employer that:
new text end

new text begin (1) has any unemployment tax or reimbursements, including any interest, fees, or
penalties, due but unpaid;
new text end

new text begin (2) has the maximum experience rating provided for under section 268.051,
subdivision 3; or
new text end

new text begin (3) is in a high-experience rating industry as defined in section 268.051, subdivision
5.
new text end

new text begin Subd. 2. new text end

new text begin Agreement by commissioner. new text end

new text begin (a) The commissioner must promptly
review a proposed agreement and notify the employer, by mail or electronic transmission,
within 15 days of receipt, whether the proposal satisfies the requirements of this section. If
the proposal does not comply with this section, the commissioner must specifically state
why the proposal is not in compliance. If a proposed agreement complies with this section,
it must be implemented according to its terms.
new text end

new text begin (b) The commissioner may reject an agreement if the commissioner has cause to
believe the proposal is not submitted for the purpose of preventing layoffs due to lack
of work.
new text end

new text begin Subd. 3. new text end

new text begin Applicant requirements. new text end

new text begin (a) An applicant, in order to be paid
unemployment benefits under this section, must meet all of the requirements under section
268.069, subdivision 1. The following do not apply to an applicant under this section:
new text end

new text begin (1) the deductible earnings provision of section 268.085, subdivision 5;
new text end

new text begin (2) the restriction under section 268.085, subdivision 6, if the applicant works
exactly 32 hours in a week;
new text end

new text begin (3) the requirement of being available for suitable employment; and
new text end

new text begin (4) the requirement of actively seeking suitable employment.
new text end

new text begin (b) An applicant is ineligible for unemployment benefits under this section for
any week, if:
new text end

new text begin (1) the applicant works more than 32 hours in a week in employment with one or
more employer; or
new text end

new text begin (2) the applicant works more hours in a week for the shared work employer than
the reduced weekly hours provided for in the agreement.
new text end

new text begin Subd. 4. new text end

new text begin Amount of unemployment benefits available. new text end

new text begin The weekly benefit amount
and maximum amount of unemployment benefits available are computed according to
section 268.07, except that an applicant is paid a reduced amount in direct proportion to
the reduction in hours from the normal weekly hours.
new text end

new text begin Subd. 5. new text end

new text begin Cancellation. new text end

new text begin (a) An employer may cancel an agreement at any time upon
seven calendar days' notice to the commissioner in a manner and format prescribed by the
commissioner. The cancellation must be signed by an owner or officer of the employer.
new text end

new text begin (b) An employer that cancels an agreement must provide written notice to each
participating employee in the group of the cancellation at the time notice is sent to the
commissioner.
new text end

new text begin (c) If an employer cancels an agreement before the expiration date provided for in
subdivision 1, a new agreement may not be entered into with that employer under this
section for at least 60 calendar days.
new text end

new text begin (d) The commissioner may immediately cancel any agreement if the commissioner
determines the agreement was based upon false information or the employer is in breach
of the contract. The commissioner must immediately send written notice of cancellation to
the employer. An employer that receives notice of cancellation by the commissioner must
provide written notice to each participating employer in the group of the cancellation.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 2, 2009, except that the
one-year extension of shared work agreements authorized in subdivision 1, paragraph (a),
clause (5), is effective retroactively from January 1, 2009.
new text end

Sec. 2. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2008, section 268.135, new text end new text begin is repealed, except that Minnesota
Statutes, section 268.135, applies to a shared work agreement approved by the
commissioner before August 2, 2009, until the expiration of that shared work plan.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 2, 2009.
new text end