44-757. Shared work compensation program; definitions; rules and regulations; procedures; employer plans, review and approval; benefits, eligibility and amount; extended benefit eligibility; limit on
44-757
44-757. Shared work compensation program;definitions; rules and regulations; procedures; employer plans, review andapproval; benefits, eligibility and amount; extended benefit eligibility; limiton period for which program benefits payable.Shared work unemployment compensation program. (a) As used in thissection:
(1) "Affected unit" means a specified department, shift or other unit of twoor more employees that is designated by an employer toparticipate in ashared work plan.
(2) "Fringe benefit" means health insurance, a retirement benefit receivedunder a pension plan, a paid vacation day, a paid holiday, sick leave, and anyother analogous employee benefit that is provided by an employer.
(3) "Fund" has the meaning ascribed thereto by subsection (k) of K.S.A.44-703 and amendments thereto.
(4) "Normal weekly hours of work" meansthe lesser of 40 hours or the average obtained by dividing the total number ofhours worked per week during the preceding twelve-week period by the number 12.
(5) "Participating employee" means an employee who works a reducednumber of hours under a shared work plan.
(6) "Participating employer" means an employer who has a shared work planin effect.
(7) "Secretary" means the secretary of labor orthesecretary's designee.
(8) "Shared work benefit" means an unemployment compensation benefitthat is payable to an individual in an affected unit because the individualworks reduced hours under an approved shared work plan.
(9) "Shared work plan" means a program for reducing unemployment underwhich employees who are members of an affected unit share the workremaining after a reduction in their normal weekly hours of work.
(10) "Shared work unemployment compensation program" means a programdesigned to reduce unemployment and stabilize the work force by allowingcertain employees to collect unemployment compensation benefits if theemployees share the work remaining after a reduction in the total number ofhours of work and a corresponding reduction in wages.
(b) The secretary shall establish a voluntary shared work unemploymentcompensation program as provided by this section. The secretary may adoptrules and regulations and establish procedures necessary to administer theshared work unemployment compensation program.
(c) An employer who wishes to participate in the shared workunemployment compensation program must submit a written shared work plan tothe secretary for the secretary's approval. As a condition for approval, aparticipating employer must agree to furnish the secretary with reportsrelating to the operation of the shared work plan as requested by thesecretary. The employer shall monitor and evaluate the operation of theestablished shared work plan as requested by the secretary and shall reportthe findings to the secretary.
(d) The secretary may approve a shared work plan if:
(1) The shared work plan applies to and identifies a specific affected unit;
(2) the employees in the affected unit are identified by name and socialsecurity number;
(3) the shared work plan reduces the normal weekly hours of work for anemployee in the affected unit by not less than 20% and not more than 40%;
(4) the shared work plan applies to at least 10% of the employees in theaffected unit;
(5) the shared work plan describes the manner in which the participatingemployer treats the fringe benefits of each employee in the affected unit;
(6) the employer certifies that the implementation of a shared work planand the resulting reduction in work hours is in lieu of temporary layoffsthat would affect at least 10% of the employees in the affected unit andthat would result in an equivalent reduction in work hours;
(7) the employer has filed all reports required to be filed under theemployment security law for all past and current periods andhas paid all contributions, benefit cost payments, or if a reimbursingemployer has made all payments in lieu of contributions duefor all past and current periods; and
(8) (A) a contributingemployer must be eligible for a rate computation under subsection (a)(2) ofK.S.A. 44-710a, and amendments thereto, and is not a negativeaccount employer as defined bysubsection (d) of K.S.A. 44-710a and amendments thereto; (B) a ratedgovernmental employer must be eligible for a rate computation under subsection(g) of K.S.A. 44-710d and amendments thereto.
(e) If any of the employees who participate in a shared work plan underthis section are covered by a collective bargaining agreement, the sharedwork plan must be approved in writing by the collective bargaining agent.
(f) A shared work plan may not be implemented to subsidize seasonalemployers during the off-season or to subsidize employers who havetraditionally used part-time employees.
(g) The secretary shall approve or deny a shared work plan no later thanthe 30th day after the day the shared work plan is received by thesecretary. The secretary shall approve or deny a shared work plan inwriting. If the secretary denies a shared work plan, the secretary shallnotify the employer of the reasons for the denial.
(h) A shared work plan is effective on the date it is approved by thesecretary, except for good cause a shared work planmay be effective at any time within a period of 14 days prior to the date suchplan is approved by the secretary.The shared work plan expires on the last day of the 12th fullcalendar month after the effective date of the shared work plan.
(i) An employer may modify a shared work plan created under this sectionto meet changed conditions if the modification conforms to the basicprovisions of the shared work plan as approved by the secretary. Theemployer must report the changes made to the shared work plan in writing tothe secretary before implementing the changes. If the original shared workplan is substantially modified, the secretary shall reevaluate the sharedwork plan and may approve the modified shared work plan if it meets therequirements for approval under subsection (d). The approval of a modifiedshared work plan does not affect the expiration date originally set forthat shared work plan. If substantial modifications cause the shared workplan to fail to meet the requirements for approval, the secretary shalldeny approval to the modifications as provided by subsection (g).
(j) Notwithstanding any other provisions of the employment security law,an individual is unemployed and is eligible for shared work benefits in anyweek in which the individual, as an employee in an affected unit, works forless than the individual's normal weekly hours of work in accordance withan approved shared work plan in effect for that week. The secretary may notdeny shared work benefits for any week to an otherwise eligible individualby reason of the application of any provision of the employment securitylaw that relates to availability for work, active search for work orrefusal to apply for or accept work with an employer other than theparticipating employer.
(k) An individual is eligible to receive shared work benefits withrespect to any week in which the secretary finds that:
(1) The individual is employed as a member of an affected unit subjectto a shared work plan that was approved before the week in question and isin effect for that week;
(2) the individual is able to work and is available for additional hoursof work or full-time work with the participating employer;
(3) the individual's normal weekly hours of work have been reduced by atleast 20% but not more than 40%, with a corresponding reduction in wages; and
(4) the individual's normal weekly hours of work and wages have beenreduced as described in paragraph (3) of this subsection (k) for a waitingperiod of one week which occurs within the period the shared work plan isin effect, which period includes the week for which the individual isclaiming shared work benefits.
(l) The secretary shall pay an individual who is eligible for sharedwork benefits under this section a weekly shared work benefit amount equalto the individual's regular weekly benefit amount for a period of totalunemployment multiplied by the nearest full percentage of reduction of theindividual's hours as set forth in the employer's shared work plan. If theshared benefit amount is not a multiple of $1, the secretary shall reducethe amount to the next lowest multiple of $1. All shared work benefitsunder this section shall be payable from the fund.
(m) The secretary may not pay an individual shared work benefits for anyweek in which the individual performs paid work for the participatingemployer in excess of the reduced hours established under the shared work plan.
(n) An individual may not receive shared work benefits and regularunemployment compensation benefits in an amount that exceeds the maximumtotal amount of benefits payable to that individual in a benefit year asprovided by subsection (f) of K.S.A. 44-704 and amendments thereto.
(o) An individual who has received all of the shared work benefits andregular unemployment compensation benefits available in a benefit year isan exhaustee under K.S.A. 44-704a and 44-704b, and amendmentsthereto, and isentitled to receive extended benefits under such statutes if the individualis otherwise eligible under such statutes.
(p) The secretary may terminate a shared work plan for good cause if thesecretary determines that the shared work plan is not being executed accordingto the terms and intent of the shared work unemployment compensation program.
(q) Notwithstanding any other provisions of this section, an individualshall not be eligible to receive shared work benefits for more than 26calendar weeks during the 12-month period of theshared work plan,except that two weeks of additional benefits shall be payable to claimants whoexhaust regular benefits and any benefits under any other federal or stateextended benefits program during the period July 1, 2003 through June 30, 2004.No week shall be counted as a week for which an individual is eligible forshared work benefits for the purposes of this section unless the week occurswithin the 12-month period of the shared work plan.
(r) No shared work benefit payment shall be made under any shared workplan or this section for any week which commences before April 1, 1989.
(s) This section shall be construed as part of the employment security law.
History: L. 1988, ch. 172, § 1;L. 1990, ch. 189, § 1;L. 1991, ch. 145, § 5;L. 1992, ch. 74, § 5;L. 2003, ch. 96, § 3;L. 2004, ch. 179, § 74; July 1.