No. 41103 (Amendment): Section R994-405-2. Separations from a Temporary Help Company (THC)

(Amendment)

DAR File No.: 41103
Filed: 12/15/2016 04:05:06 PM

RULE ANALYSIS

Purpose of the rule or reason for the change:

The purpose of this amendment is to clarify when benefits will be allowed in Temporary Help Company (THC) cases.

Summary of the rule or change:

These changes are to reflect current Department practice and provide guidance for claimants and THC on how job separations are adjudicated.

Statutory or constitutional authorization for this rule:

• Subsection 35A-1-104(4)
• Subsection 35A-4-502(1)(b)
• Section 35A-1-104

Anticipated cost or savings to:

the state budget:

This is a federally-funded program so there are no costs or savings to the state budget.

local governments:

This is a federally-funded program so there are no costs of savings to local government.

small businesses:

There are no costs or savings to any small businesses as there are no fees associated with this program and it is federally funded.

persons other than small businesses, businesses, or local governmental entities:

There are no costs or savings to any persons other than small businesses, businesses, or local government entities as there are no fees associated with this program and it is federally funded.

Compliance costs for affected persons:

There are no costs or savings to any affected persons, as there are no fees associated with this program and it is federally funded. These changes will not impact the contribution rate of any employer.

Comments by the department head on the fiscal impact the rule may have on businesses:

There are no compliance costs associated with this change. There are no fees associated with this change. There will be no cost to anyone to comply with these changes. There will be no fiscal impact on any business. These changes will have no impact on any employers contribution tax rate.

Jon Pierpont, Executive Director

The full text of this rule may be inspected, during regular business hours, at the Office of Administrative Rules, or at:

Workforce Services
Unemployment Insurance
140 E 300 S
SALT LAKE CITY, UT 84111-2333

Direct questions regarding this rule to:

• Suzan Pixton at the above address, by phone at 801-526-9645, by FAX at 801-526-9211, or by Internet E-mail at [e-mail]

Interested persons may present their views on this rule by submitting written comments to the address above no later than 5:00 p.m. on:

01/31/2017

This rule may become effective on:

02/07/2017

Authorized by:

Jon Pierpont, Executive Director

RULE TEXT

R994. Workforce Services, Unemployment Insurance.

R994-405. Ineligibility for Benefits.

R994-405-2. Separations From a Temporary Help Company (THC).

[THC is defined in R994-202-102. Because the THC is the employer, eligibility for benefits of employees of a THC and the THC's liability for claims will be based on the reason for separation from the THC and not the reason for the separation from the client company.

(1) If the claimant reports back to the THC within a reasonable period of time after the claimant's last assignment ends and no work is offered because no work is available, the separation is a reduction of force, regardless of the reason the claimant left the last assignment except as provided in paragraph (2) of this section. A reasonable period of time is generally considered to be whatever is stipulated in the employment contract between the claimant and the THC but must be at least two business days. The claimant must contact the THC prior to filing a claim for benefits with the Department for the separation to be considered a reduction of force.

(2) If a claimant is no longer able to perform the type of work previously performed for the THC and the THC agrees to send the claimant out on work he or she is able to do, it is considered a quit and the THC may be eligible for relief of charges.

(3) If the claimant fails to contact the THC for a new assignment within a reasonable period of time after the claimant's last assignment ends, the separation is a quit and not a reduction of force.

(4) If the claimant files a new claim or reopens an existing claim prior to contacting the THC for another assignment, the job separation is a quit, even if the claimant subsequently contacts the THC within a reasonable period of time.

(5) If the claimant contacts the THC for a new assignment within a reasonable period of time after the claimant's last assignment ends and the claimant refuses a new assignment, the job separation is a quit if the new assignment is similar to the previous assignments. The separation is a reduction of force and an offer of new work if the new assignment is substantially different from the previous assignments. The job duties, wages, hours, and conditions of the new assignment should be considered in determining the similarity of the new assignment.

(6) If the THC refuses to the send the claimant out on any new assignments it is a discharge. This includes instances where the claimant previously left an ongoing assignment or the client company prevented the claimant from completing an ongoing assignment.](1) THC is defined in R994-202-102. Because the THC is the employer, eligibility for benefits of employees of a THC and the THC's liability for claims is based on the reason for the separation from the THC and not the reason for the separation from the client company. Once the Department determines the type of separation, it will then use the following rules to determine eligibility:

(a) R994-405-101 et seq. for a voluntary quit;

(b) R994-405-201 et seq. for a discharge or reduction of force;

(c) R994-405-210 et seq. for a discharge for a crime.

(2) If there is no contact between the claimant and the THC within a reasonable period of time after the assignment ends, the separation is considered a voluntary quit. A reasonable period of time is generally considered to be whatever is stipulated in the employment contract between the claimant and the THC but must be at least two business days.

(a) If it is an initial or reopened claim, the contact must be before the claim is filed or it is considered a voluntary quit.

(b) If the THC informs the claimant about the end of an assignment, the requirement for contact is considered to have been satisfied.

(3) If the claimant and the THC have the required contact and:

(a) the THC is willing to send the claimant out on future assignments, but no new work is offered, the separation is considered a reduction of force;

(b) the THC refuses to send the claimant out on any future assignments, the separation is considered a discharge;

(c) the THC suspends the claimant from future assignments for a specific period of time, the separation will be adjudicated as a discharge if the claimant files a claim during the suspension period. If the claim is filed after the suspension period is over, and no new work has been offered, the separation is considered a reduction of force; or

(d) the claimant refuses an offer for a new assignment, the job separation is a quit if the new assignment is similar to his or her previous assignments. The separation is a reduction of force and an offer of new work if the new assignment is substantially different from the previous assignments. The elements listed in R994-405-306 should be considered in determining if the new assignment is similar to past assignments.

(i) If the only work available is the assignment the claimant just left and the claimant refuses to return to that assignment, the separation is considered a voluntary quit.

(ii) If the claimant is no longer able to perform the type of work previously performed for the THC and the THC agrees to send the claimant out on work he or she is able to do when it is available, the separation is considered a quit and the THC may be eligible for relief of charges.

 

KEY: unemployment compensation, employment, employee's rights, employee termination

Date of Enactment or Last Substantive Amendment: [July 9, 2012]2017

Notice of Continuation: May 16, 2013

Authorizing, and Implemented or Interpreted Law: 35A-4-502(1)(b); 35A-1-104(4); 35A-4-405

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