Worker First Act of 2020

II 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. WAR- REN) 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 Representa- 1 tives of the United States of America in Congress assembled, 2 SECTION 1. SHORT TITLE. 3 This Act may be cited as the ‘‘Worker First Act of 4 2020’’. 5 VerDate Sep 11 2014 04:59 Aug 04, 2020 Jkt 099200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\S4252.IS S4252 kjohnson on DSK79L0C42PROD with BILLS 2 •S 4252 IS SEC. 2. SPECIAL TRANSFERS FOR UNEMPLOYMENT COM- 1 PENSATION IMPROVEMENTS. 2 (a) IN GENERAL.—Section 903 of the Social Security 3 Act (42 U.S.C. 1103) is amended by adding at the end 4 the following: 5 ‘‘(j) SPECIAL TRANSFERS IN FISCAL YEARS 2020, 6 2021, 2022 FOR IMPROVEMENTS.— 7 ‘‘(1) TRANSFERS.— 8 ‘‘(A) IN GENERAL.—In addition to any 9 other amounts, the Secretary of Labor shall 10 provide for the making of unemployment com- 11 pensation modernization incentive payments (in 12 this subsection referred to as ‘incentive pay- 13 ments’) to the accounts of the States in the Un- 14 employment Trust Fund, by transfer from 15 amounts reserved for that purpose in the Fed- 16 eral unemployment account, in accordance with 17 succeeding provisions of this subsection. 18 ‘‘(B) MAXIMUM INCENTIVE PAYMENT.— 19 The maximum incentive payment allowable 20 under this subsection with respect to any State 21 shall, as determined by the Secretary of Labor, 22 be equal to the amount obtained by multiplying 23 $10,000,000,000 by the same ratio as would 24 apply under subsection (a)(2)(B) for purposes 25 of determining such State’s share of any excess 26 VerDate Sep 11 2014 04:59 Aug 04, 2020 Jkt 099200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\S4252.IS S4252 kjohnson on DSK79L0C42PROD with BILLS 3 •S 4252 IS amount (as described in subsection (a)(1)) that 1 would have been subject to transfer to State ac- 2 counts, as of October 1, 2019, under the provi- 3 sions of subsection (a). 4 ‘‘(C) ALLOTMENTS.—Of the maximum in- 5 centive payment determined under subpara- 6 graph (B) with respect to a State— 7 ‘‘(i) one-third shall be transferred to 8 the account of such State upon a certifi- 9 cation under paragraph (6) that the State 10 meets the requirements of paragraph (2); 11 ‘‘(ii) one-third shall be transferred to 12 the account of such State upon a certifi- 13 cation under paragraph (6) that the State 14 law of such State meets the requirements 15 of paragraph (3); and 16 ‘‘(iii) the remainder shall be trans- 17 ferred to the account of such State upon a 18 certification under paragraph (6) that the 19 State law of such State meets the require- 20 ments of paragraph (4). 21 ‘‘(2) WORKER SAFETY.—A State meets the re- 22 quirements of this paragraph if the State provides 23 the Secretary with assurances that the State is en- 24 forcing laws, policies, or regulations (and will con- 25 VerDate Sep 11 2014 04:59 Aug 04, 2020 Jkt 099200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\S4252.IS S4252 kjohnson on DSK79L0C42PROD with BILLS 4 •S 4252 IS tinue to enforce such laws, policies, or regulations 1 through the later of December 31, 2021, or the end 2 of emergency period described in section 3 1135(g)(1)(B)) under which— 4 ‘‘(A) work is not considered to be suitable 5 work under the State law unless the work is in 6 compliance with all applicable health and safety 7 guidelines and standards related to the preven- 8 tion of occupational exposure to COVID–19, in- 9 cluding such guidelines and standards issued by 10 the Occupational Safety and Health Adminis- 11 tration, under State plans approved under sec- 12 tion 18 of the Occupational Safety and Health 13 Act of 1970, by the Centers for Disease Control 14 and Prevention, and Federal, State, or by local 15 public health authorities; and 16 ‘‘(B) an individual is not disqualified from 17 regular unemployment compensation under the 18 State law for separating from employment if 19 that separation is because the work is not in 20 compliance with all applicable health and safety 21 guidelines and standards described in subpara- 22 graph (A). 23 VerDate Sep 11 2014 04:59 Aug 04, 2020 Jkt 099200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\S4252.IS S4252 kjohnson on DSK79L0C42PROD with BILLS 5 •S 4252 IS ‘‘(3) MODERNIZATION.—The State law of a 1 State meets the requirements of this paragraph if 2 such State law provides for each of the following: 3 ‘‘(A) An individual is not disqualified from 4 regular unemployment compensation for sepa- 5 rating from employment if that separation is 6 for any compelling family reason. For purposes 7 of this subparagraph, the term ‘compelling fam- 8 ily reason’ means the following: 9 ‘‘(i) Domestic violence, sexual assault, 10 stalking, or harassment, verified by such 11 reasonable and confidential documentation 12 as the State law may require, which causes 13 the individual reasonably to believe that 14 such individual’s continued employment 15 would jeopardize the safety of the indi- 16 vidual or of any member of the individual’s 17 immediate family (as defined by the Sec- 18 retary of Labor). 19 ‘‘(ii) The illness or disability of a 20 member of the individual’s immediate fam- 21 ily (as those terms are defined by the Sec- 22 retary of Labor). 23 ‘‘(iii) The need for the individual to 24 accompany such individual’s spouse— 25 VerDate Sep 11 2014 04:59 Aug 04, 2020 Jkt 099200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\S4252.IS S4252 kjohnson on DSK79L0C42PROD with BILLS 6 •S 4252 IS ‘‘(I) to a place from which it is 1 impractical for such individual to com- 2 mute; and 3 ‘‘(II) due to a change in location 4 of the spouse’s employment. 5 ‘‘(B) The State law— 6 ‘‘(i) uses a base period that includes 7 the most recently completed calendar quar- 8 ter before the start of the benefit year for 9 purposes of determining eligibility for un- 10 employment compensation; or 11 ‘‘(ii) provides that, in the case of an 12 individual who would not otherwise be eli- 13 gible for unemployment compensation 14 under the State law because of the use of 15 a base period that does not include the 16 most recently completed calendar quarter 17 before the start of the benefit year, eligi- 18 bility is determined using a base period 19 that includes such calendar quarter. 20 ‘‘(C) An individual is not denied unemploy- 21 ment compensation under any State law provi- 22 sions relating to availability for work, active 23 search for work, or refusal to accept work, sole- 24 ly because such individual is seeking only part- 25 VerDate Sep 11 2014 04:59 Aug 04, 2020 Jkt 099200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6201 E:\BILLS\S4252.IS S4252 kjohnson on DSK79L0C42PROD with BILLS 7 •S 4252 IS time work (as defined by the Secretary of 1 Labor). 2 ‘‘(D) The State’s definition of suitable 3 work includes health and safety considerations 4 that ensure that a position shall not be deemed 5 suitable for an individual if the circumstances 6 present any unusual risk to the health or safety 7 of the individual. 8 ‘‘(4) EXPANSION.—The State law of a State 9 meets the requirements of this paragraph if such 10 State law provides for each of the following: 11 ‘‘(A) Payment of short-time compensation 12 is made under a short-time compensation pro- 13 gram (as defined in section 3306(v) of the In- 14 ternal Revenue Code of 1986). 15 ‘‘(B) The minimum duration of benefits is 16 at least 26 weeks and no variable duration for- 17 mula that provides for maximum weeks of bene- 18 fits of fewer than 26 weeks is used. 19 ‘‘(5) APPLICATION.— 20 ‘‘(A) IN GENERAL.—Any State seeking an 21 incentive payment under this subsection shall 22 submit an application therefor at such time, in 23 such manner, and complete with such informa- 24 tion as the Secretary of Labor may within 60 25 VerDate Sep 11 2014 04:59 Aug 04, 2020 Jkt 099200 PO 00000 Frm 00007 Fmt 6652 Sfmt 6201 E:\BILLS\S4252.IS S4252 kjohnson on DSK79L0C42PROD with BILLS 8 •S 4252 IS days after the date of the enactment of this 1 subsection prescribe (whether by regulation or 2 otherwise), including information relating to 3 compliance with the requirements of paragraph 4 (2), (3), or (4), as well as how the State intends 5 to use the incentive payment to improve or 6 strengthen the State’s unemployment com- 7 pensation program. The Secretary of Labor 8 shall, within 30 days after receiving a complete 9 application, notify the State agency of the State 10 of the Secretary’s findings with respect to the 11 requirements of paragraph (2), (3), or (4), as 12 the case may be. 13 ‘‘(B) LIMITATION.—No application under 14 subparagraph (A) may be considered if sub- 15 mitted— 16 ‘‘(i) prior to the date of enactment of 17 this subsection; or 18 ‘‘(ii) after the latest date necessary 19 (as specified by the Secretary of Labor) to 20 ensure that all incentive payments under 21 this subsection are made on or before De- 22 cember 31, 2021. 23 ‘‘(6) CERTIFICATION.— 24 VerDate Sep 11 2014 04:59 Aug 04, 2020 Jkt 099200 PO 00000 Frm 00008 Fmt 6652 Sfmt 6201 E:\BILLS\S4252.IS S4252 kjohnson on DSK79L0C42PROD with BILLS 9 •S 4252 IS ‘‘(A) IN GENERAL.—Subject to subpara- 1 graphs (B) and (C), if the Secretary of Labor 2 finds that— 3 ‘‘(i) the State meets the requirements 4 of paragraph (2); or 5 ‘‘(ii) the State law provisions (dis- 6 regarding any State law provisions which 7 are not then currently in effect as perma- 8 nent law or which are subject to dis- 9 continuation) meet the requirements of 10 paragraph (3) or (4), as the case may be; 11 the Secretary of Labor shall make a certifi- 12 cation to that effect to the Secretary of the 13 Treasury, together with a certification as to the 14 amount of the incentive payment to be trans- 15 ferred to the State account pursuant to that 16 finding. The Secretary of the Treasury shall 17 make the appropriate transfer within 7 days 18 after receiving such certification. 19 ‘‘(B) SPECIAL RULE.—For purposes of 20 subparagraph (A)(ii), State law provisions that 21 are to take effect within 2 months after the 22 date of their certification under subparagraph 23 (A) shall be considered to be in effect as of the 24 date of such certification. 25 VerDate Sep 11 2014 04:59 Aug 04, 2020 Jkt 099200 PO 00000 Frm 00009 Fmt 6652 Sfmt 6201 E:\BILLS\S4252.IS S4252 kjohnson on DSK79L0C42PROD with BILLS 10 •S 4252 IS ‘‘(C) ADDITIONAL REQUIREMENTS FOR 1 CERTIFICATION.— 2 ‘‘(i) COMPLIANCE WITH OTHER STATE 3 LAW REQUIREMENTS.—No certification of 4 compliance with the requirements of para- 5 graph (2), (3), or (4) may be made with 6 respect to any State whose State law is not 7 otherwise eligible for certification under 8 section 303 or approvable under section 9 3304 of the Internal Revenue Code of 10 1986. 11 ‘‘(ii) COMPLIANCE WITH WORKER 12 SAFETY REQUIREMENTS.—No certification 13 of compliance with the requirements of 14 paragraph (3) or (4) may be made with re- 15 spect to any State that does not meet the 16 requirements of paragraph (2). 17 ‘‘(7) USE OF INCENTIVE PAYMENTS.— 18 ‘‘(A) BENEFITS.—Except as provided in 19 subparagraph (B), any amount transferred to 20 the account of a State under this subsection 21 may be used by such State only in the payment 22 of cash benefits to individuals with respect to 23 their unemployment, exclusive of expenses of 24 administration. 25 VerDate Sep 11 2014 04:59 Aug 04, 2020 Jkt 099200 PO 00000 Frm 00010 Fmt 6652 Sfmt 6201 E:\BILLS\S4252.IS S4252 kjohnson on DSK79L0C42PROD with BILLS 11 •S 4252 IS ‘‘(B) ADMINISTRATION.—A State may, 1 subject to the same conditions described in sub- 2 section (c)(2) (excluding subparagraph (B) of 3 such subsection, and deeming the reference to 4 ‘subsections (a) and (b)’ in subparagraph (D) 5 of such subsection to include this subsection), 6 use any amount transferred to the account of 7 such State under this subsection for the admin- 8 istration of its unemployment compensation law 9 (including administration for carrying out the 10 provisions of, and amendments made, by sub- 11 title A of title II of division A of the CARES 12 Act) and public employment offices, including 13 improvements in technology. 14 ‘‘(8) FUNDING.—Out of any money in the Fed- 15 eral unemployment account not otherwise appro- 16 priated, the Secretary of the Treasury shall reserve 17 $10,000,000,000 for incentive payments under this 18 subsection. Any amount so reserved shall not be 19 taken into account for purposes of any determina- 20 tion under section 902, 910, or 1203 of the amount 21 in the Federal unemployment account as of any 22 given time. Any amount so reserved for which the 23 Secretary of the Treasury has not received a certifi- 24 cation under paragraph (6) by the deadline de- 25 VerDate Sep 11 2014 04:59 Aug 04, 2020 Jkt 099200 PO 00000 Frm 00011 Fmt 6652 Sfmt 6201 E:\BILLS\S4252.IS S4252 kjohnson on DSK79L0C42PROD with BILLS 12 •S 4252 IS scribed in paragraph (5)(B)(ii) shall, on January 1, 1 2022, become unrestricted as to use as part of the 2 Federal unemployment account. 3 ‘‘(9) DEFINITIONS.—In this subsection, the 4 terms ‘benefit year’, ‘base period’, and ‘week’ have 5 the respective meanings given such terms under sec- 6 tion 205 of the Federal-State Extended Unemploy- 7 ment Compensation Act of 1970 (26 U.S.C. 3304 8 note).’’. 9 (b) REGULATIONS.—The Secretary of Labor may 10 prescribe any regulations, operating instructions, or other 11 guidance necessary to carry out the amendment made by 12 subsection (a). 13 Æ VerDate Sep 11 2014 04:59 Aug 04, 2020 Jkt 099200 PO 00000 Frm 00012 Fmt 6652 Sfmt 6301 E:\BILLS\S4252.IS S4252 kjohnson on DSK79L0C42PROD with BILLS