Bill Summary
The "Worker First Act of 2020" is a bill that has been proposed in the United States Congress. The purpose of this legislation is to provide funding for states to improve their unemployment compensation programs. This funding would also be used for other purposes related to unemployment, such as assisting workers who have been impacted by the COVID-19 pandemic.
The bill would amend the Social Security Act to include a new subsection that outlines the specific details of the funding and how it would be distributed to states. This section, titled "Special Transfers for Unemployment Compensation Improvements," explains that the Secretary of Labor would provide incentive payments to states by transferring funds from the Federal unemployment account. The maximum amount that a state could receive as an incentive payment is $10 billion.
To receive this funding, states must meet certain requirements related to worker safety, modernization of their unemployment laws, and expanding their unemployment programs. These requirements include ensuring that work is in compliance with health and safety guidelines, allowing individuals to receive unemployment benefits for compelling family reasons, and providing a minimum of 26 weeks of benefits. States must also submit an application and receive certification from the Secretary of Labor in order to receive the incentive payment.
The bill also allows states to use the funds for the administration of their unemployment programs, including improvements in technology. Any money not used by the deadline would become unrestricted and available for use in the Federal unemployment account.
Overall, the "Worker First Act of 2020" aims to provide financial support to states so they can improve their unemployment compensation programs and better assist individuals who are out of work.
Possible Impacts
1. This bill could affect individuals who are unemployed by providing funding for states to improve their unemployment compensation programs. This could potentially result in better benefits and easier access to benefits for those who are unemployed.
2. The bill could also affect individuals who have experienced a "compelling family reason", such as domestic violence or illness of a family member, by ensuring that they are not disqualified from receiving unemployment benefits for separating from employment.
3. The bill could also affect states by requiring them to enforce laws and regulations to protect workers from COVID-19. This could result in additional costs for businesses and potentially lead to changes in work policies and practices.
[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[S. 4252 Introduced in Senate (IS)]
<DOC>
116th CONGRESS
2d Session
S. 4252
To provide funding for States to improve their unemployment
compensation programs, and for other purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
July 21, 2020
Mr. Wyden (for himself, Mr. Van Hollen, Mr. Sanders, Ms. Cortez Masto,
Mr. Markey, Ms. Hirono, Mr. Blumenthal, and Ms. Warren) introduced the
following bill; which was read twice and referred to the Committee on
Finance
_______________________________________________________________________
A BILL
To provide funding for States to improve their unemployment
compensation programs, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Worker First Act of 2020''.
SEC. 2. SPECIAL TRANSFERS FOR UNEMPLOYMENT COMPENSATION IMPROVEMENTS.
(a) In General.--Section 903 of the Social Security Act (42 U.S.C.
1103) is amended by adding at the end the following:
``(j) Special Transfers in Fiscal Years 2020, 2021, 2022 for
Improvements.--
``(1) Transfers.--
``(A) In general.--In addition to any other
amounts, the Secretary of Labor shall provide for the
making of unemployment compensation modernization
incentive payments (in this subsection referred to as
`incentive payments') to the accounts of the States in
the Unemployment Trust Fund, by transfer from amounts
reserved for that purpose in the Federal unemployment
account, in accordance with succeeding provisions of
this subsection.
``(B) Maximum incentive payment.--The maximum
incentive payment allowable under this subsection with
respect to any State shall, as determined by the
Secretary of Labor, be equal to the amount obtained by
multiplying $10,000,000,000 by the same ratio as would
apply under subsection (a)(2)(B) for purposes of
determining such State's share of any excess amount (as
described in subsection (a)(1)) that would have been
subject to transfer to State accounts, as of October 1,
2019, under the provisions of subsection (a).
``(C) Allotments.--Of the maximum incentive payment
determined under subparagraph (B) with respect to a
State--
``(i) one-third shall be transferred to the
account of such State upon a certification
under paragraph (6) that the State meets the
requirements of paragraph (2);
``(ii) one-third shall be transferred to
the account of such State upon a certification
under paragraph (6) that the State law of such
State meets the requirements of paragraph (3);
and
``(iii) the remainder shall be transferred
to the account of such State upon a
certification under paragraph (6) that the
State law of such State meets the requirements
of paragraph (4).
``(2) Worker safety.--A State meets the requirements of
this paragraph if the State provides the Secretary with
assurances that the State is enforcing laws, policies, or
regulations (and will continue to enforce such laws, policies,
or regulations through the later of December 31, 2021, or the
end of emergency period described in section 1135(g)(1)(B))
under which--
``(A) work is not considered to be suitable work
under the State law unless the work is in compliance
with all applicable health and safety guidelines and
standards related to the prevention of occupational
exposure to COVID-19, including such guidelines and
standards issued by the Occupational Safety and Health
Administration, under State plans approved under
section 18 of the Occupational Safety and Health Act of
1970, by the Centers for Disease Control and
Prevention, and Federal, State, or by local public
health authorities; and
``(B) an individual is not disqualified from
regular unemployment compensation under the State law
for separating from employment if that separation is
because the work is not in compliance with all
applicable health and safety guidelines and standards
described in subparagraph (A).
``(3) Modernization.--The State law of a State meets the
requirements of this paragraph if such State law provides for
each of the following:
``(A) An individual is not disqualified from
regular unemployment compensation for separating from
employment if that separation is for any compelling
family reason. For purposes of this subparagraph, the
term `compelling family reason' means the following:
``(i) Domestic violence, sexual assault,
stalking, or harassment, verified by such
reasonable and confidential documentation as
the State law may require, which causes the
individual reasonably to believe that such
individual's continued employment would
jeopardize the safety of the individual or of
any member of the individual's immediate family
(as defined by the Secretary of Labor).
``(ii) The illness or disability of a
member of the individual's immediate family (as
those terms are defined by the Secretary of
Labor).
``(iii) The need for the individual to
accompany such individual's spouse--
``(I) to a place from which it is
impractical for such individual to
commute; and
``(II) due to a change in location
of the spouse's employment.
``(B) The State law--
``(i) uses a base period that includes the
most recently completed calendar quarter before
the start of the benefit year for purposes of
determining eligibility for unemployment
compensation; or
``(ii) provides that, in the case of an
individual who would not otherwise be eligible
for unemployment compensation under the State
law because of the use of a base period that
does not include the most recently completed
calendar quarter before the start of the
benefit year, eligibility is determined using a
base period that includes such calendar
quarter.
``(C) An individual is not denied unemployment
compensation under any State law provisions relating to
availability for work, active search for work, or
refusal to accept work, solely because such individual
is seeking only part-time work (as defined by the
Secretary of Labor).
``(D) The State's definition of suitable work
includes health and safety considerations that ensure
that a position shall not be deemed suitable for an
individual if the circumstances present any unusual
risk to the health or safety of the individual.
``(4) Expansion.--The State law of a State meets the
requirements of this paragraph if such State law provides for
each of the following:
``(A) Payment of short-time compensation is made
under a short-time compensation program (as defined in
section 3306(v) of the Internal Revenue Code of 1986).
``(B) The minimum duration of benefits is at least
26 weeks and no variable duration formula that provides
for maximum weeks of benefits of fewer than 26 weeks is
used.
``(5) Application.--
``(A) In general.--Any State seeking an incentive
payment under this subsection shall submit an
application therefor at such time, in such manner, and
complete with such information as the Secretary of
Labor may within 60 days after the date of the
enactment of this subsection prescribe (whether by
regulation or otherwise), including information
relating to compliance with the requirements of
paragraph (2), (3), or (4), as well as how the State
intends to use the incentive payment to improve or
strengthen the State's unemployment compensation
program. The Secretary of Labor shall, within 30 days
after receiving a complete application, notify the
State agency of the State of the Secretary's findings
with respect to the requirements of paragraph (2), (3),
or (4), as the case may be.
``(B) Limitation.--No application under
subparagraph (A) may be considered if submitted--
``(i) prior to the date of enactment of
this subsection; or
``(ii) after the latest date necessary (as
specified by the Secretary of Labor) to ensure
that all incentive payments under this
subsection are made on or before December 31,
2021.
``(6) Certification.--
``(A) In general.--Subject to subparagraphs (B) and
(C), if the Secretary of Labor finds that--
``(i) the State meets the requirements of
paragraph (2); or
``(ii) the State law provisions
(disregarding any State law provisions which
are not then currently in effect as permanent
law or which are subject to discontinuation)
meet the requirements of paragraph (3) or (4),
as the case may be;
the Secretary of Labor shall make a certification to
that effect to the Secretary of the Treasury, together
with a certification as to the amount of the incentive
payment to be transferred to the State account pursuant
to that finding. The Secretary of the Treasury shall
make the appropriate transfer within 7 days after
receiving such certification.
``(B) Special rule.--For purposes of subparagraph
(A)(ii), State law provisions that are to take effect
within 2 months after the date of their certification
under subparagraph (A) shall be considered to be in
effect as of the date of such certification.
``(C) Additional requirements for certification.--
``(i) Compliance with other state law
requirements.--No certification of compliance
with the requirements of paragraph (2), (3), or
(4) may be made with respect to any State whose
State law is not otherwise eligible for
certification under section 303 or approvable
under section 3304 of the Internal Revenue Code
of 1986.
``(ii) Compliance with worker safety
requirements.--No certification of compliance
with the requirements of paragraph (3) or (4)
may be made with respect to any State that does
not meet the requirements of paragraph (2).
``(7) Use of incentive payments.--
``(A) Benefits.--Except as provided in subparagraph
(B), any amount transferred to the account of a State
under this subsection may be used by such State only in
the payment of cash benefits to individuals with
respect to their unemployment, exclusive of expenses of
administration.
``(B) Administration.--A State may, subject to the
same conditions described in subsection (c)(2)
(excluding subparagraph (B) of such subsection, and
deeming the reference to `subsections (a) and (b)' in
subparagraph (D) of such subsection to include this
subsection), use any amount transferred to the account
of such State under this subsection for the
administration of its unemployment compensation law
(including administration for carrying out the
provisions of, and amendments made, by subtitle A of
title II of division A of the CARES Act) and public
employment offices, including improvements in
technology.
``(8) Funding.--Out of any money in the Federal
unemployment account not otherwise appropriated, the Secretary
of the Treasury shall reserve $10,000,000,000 for incentive
payments under this subsection. Any amount so reserved shall
not be taken into account for purposes of any determination
under section 902, 910, or 1203 of the amount in the Federal
unemployment account as of any given time. Any amount so
reserved for which the Secretary of the Treasury has not
received a certification under paragraph (6) by the deadline
described in paragraph (5)(B)(ii) shall, on January 1, 2022,
become unrestricted as to use as part of the Federal
unemployment account.
``(9) Definitions.--In this subsection, the terms `benefit
year', `base period', and `week' have the respective meanings
given such terms under section 205 of the Federal-State
Extended Unemployment Compensation Act of 1970 (26 U.S.C. 3304
note).''.
(b) Regulations.--The Secretary of Labor may prescribe any
regulations, operating instructions, or other guidance necessary to
carry out the amendment made by subsection (a).
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