Senate Bill 438 Summary

• Establishes a work sharing unemployment insurance program allowing employers to reduce employee hours instead of laying off workers, with affected employees receiving partial unemployment benefits.

• Requires employers to submit written work sharing plans to the Department of Workforce Development commissioner for approval, with plans must reduce normal weekly work hours by 10-50% equally among affected employees.

• Calculates work sharing benefits as a percentage of the regular unemployment benefit equal to the percentage reduction in work hours, with employees limited to 52 weeks of work sharing benefits per benefit year.

• Protects employees participating in approved work sharing plans from disqualification for unemployment benefits and requires employers to maintain all employee fringe benefits including health insurance, retirement, and paid leave.

• Effective July 1, 2013; allows employers to request hearings before administrative law judges if work sharing plans are disapproved, and permits the commissioner to revoke plan approval for noncompliance or conduct defeating the program's intent.