HB 331 — 2021 Unemployment Insurance Reform.

GENERAL ASSEMBLY OF NORTH CAROLINA H.B.SESSION 2021 H 1 HOUSE BILL 331 Short Title:

331 Mar 17, 2021 SESSION 2021 HOUSE PRINCIPAL CLERK H D HOUSE BILL DRH30171-LRxf-64E Short Title:

For a complete list of sponsors, refer to the North Carolina General Assembly web site.

Rules, Calendar, and Operations of the House March 22, 2021 A BILL TO BE ENTITLED AN ACT REFORMING THE EMPLOYMENT SECURITY LAWS BY INCREASING BENEFIT ELIGIBILITY TO A TWENTY-SIX WEEK PERIOD AND THE MAXIMUM WEEKLY BENEFIT AMOUNT TO THE SUM EQUAL TO FIVE HUNDRED DOLLARS ADJUSTED ANNUALLY FOR INFLATION, BASING THE CALCULATION OF THE BENEFIT AMOUNT ON THE HIGHEST PAID QUARTER, INCREASING BENEFITS ALLOWED FOR PARTIAL UNEMPLOYMENT, PROVIDING BENEFITS IN CASES WHERE AN INDIVIDUAL LEAVES EMPLOYMENT FOR SPOUSAL RELOCATION OR HEALTH REASONS OR DUE TO AN UNDUE HARDSHIP, AUTHORIZING THE FORGIVENESS OF NONFRAUDULENT OVERPAYMENTS CAUSED BY AGENCY ERROR, AND ESTABLISHING A SHORT-TERM COMPENSATION PROGRAM TO BENEFIT EMPLOYERS AND EMPLOYEES.

If the total wages payable to an *H331-v-1* General Assembly Of North Carolina Session 2021 individual for less than full-time work performed in a week claimed exceed one-half of the *DRH30171-LRxf-64E* General Assembly Of North Carolina Session 2021 individual's weekly benefit amount, the amount of wages that exceed one-half of the weekly benefit amount shall be deducted from the benefits payable to the claimant.

The Division must use the most recent seasonal adjusted unemployment rate determined bybythe the U.S.

Page 2 House Bill 331-First Edition General Assembly Of North Carolina Session 2021 a.

Page 2 DRH30171-LRxf-64E General Assembly Of North Carolina Session 2021 b.

That, at the time of leaving, an adequate disability or health condition of the employee, of a minor child who is in the legally recognized custody of the individual, of an aged or disabled parent of the individual, or of a disabled member of the individual's immediate family, either medically diagnosed or otherwise shown by competent evidence, existed to justify the leaving and prevented the employee from doing other alternative work offered bybythe the employer which pays the minimum wage or eighty-five percent (85%) of the individual's regular wage, whichever is greater;

– Leaving work to accompany the claimant's spouse to a new place of residence where the spouse has secured work in a location that is too far removed for the claimant reasonably to continue to work." SECTION4.1.(a) ForgiveOverpaymentThroughDivisionError.–ForgiveOverpaymentThroughDivisionError. G.S.

–G.S.

House Bill 331-First Edition Page 3 General Assembly Of North Carolina Session 2021 "§ 96-18.1.

DRH30171-LRxf-64E Page 3 General Assembly Of North Carolina Session 2021 (a) Applicability.

– This section applies Subsections (a) through (d) of this section apply to an individual who has been provided notice of a determination or an appeals decision finding that theindividual, or anotherindividualactinginanotherindividual actingin theindividual's behalfand with theindividual's knowledge, has knowingly done one or more of the following to obtain or increase a benefit or other payment under this Chapter:

Page 4 House Bill 331-First Edition General Assembly Of North Carolina Session 2021 (1) The affected unit or units covered by the plan, including the number of full-time or part-time workers in the unit, identification of each individual employee in the affected unit by name, social security number, and the Page 4 DRH30171-LRxf-64E General Assembly Of North Carolina Session 2021 employer's unemployment tax account number, and any other information required by the Division to identify plan participants.

The dollar amount ofemployercontributions to adefinedcontribution planthatarebasedplanthat arebased on a percentage of compensation may be less due to the reduction in the employee's compensation.

House Bill 331-First Edition Page 5 General Assembly Of North Carolina Session 2021 (8) The effective date and duration of the plan, which shall expire no later than the end of the twelfth full calendar month after the effective date.

DRH30171-LRxf-64E Page 5 General Assembly Of North Carolina Session 2021 (9) Any other provision added to the application by the Division that the U.S.

A decision disapproving the plan shall clearlyclearlyidentifythe identify the reasons for the disapproval.

(b) The Division maymayperiodically periodically review the operation of each employer's plan to assure that no good cause exists for revocation of the approval of the plan.

The request shall identifyidentifythe the specific provisions proposed to be modified and provide an explanation of why the proposed modification is appropriate for the plan.

Page 6 House Bill 331-First Edition General Assembly Of North Carolina Session 2021 (c) An employer is not required to request approval of a plan modification if the change is not substantial, but the employer shall report every change to the plan to the Division promptly and in writing.

The Division may terminate an employer's plan if the employer fails to meet this Page 6 DRH30171-LRxf-64E General Assembly Of North Carolina Session 2021 reporting requirement.

(d) The Division shall use its best efforts to provide for timelytimelyand and flexible modifications.

(1) If combined hours of work in a week for both employers do not result in a reduction of at least ten percent (10%) or, if higher, the minimum percentage of reduction required to be eligible for a short-time compensation benefit as provided in this Article, of the usual weeklyweeklyhours hours of work with the short-time House Bill 331-First Edition Page 7 General Assembly Of North Carolina Session 2021 employer,theindividualshallnotbeentitledtobenefitsundertheseshort-time compensation provisions.

DRH30171-LRxf-64E Page 7 General Assembly Of North Carolina Session 2021 (2) If the combined hours of work for both employers results in a reduction equal to or greater than ten percent (10%) or, if higher, the minimum percentage reduction required to be eligible for a short-time compensation employer, the short-time compensation benefit amount payable to the individual is reduced for that week and is determined by multiplying the weekly unemployment benefit amount for a week of total unemployment by the percentage by which the combined hours of work have been reduced by ten percent (10%) or, if higher, the minimum percentage reduction required to be eligible for a short-time compensation benefit as provided in this Article, or more of the individual's usual weekly hours of work.

(f) An individual who is not provided any work during a week by the short-time compensation employer, or anyanyother other employer, and who is otherwise eligible for unemployment compensation shall be eligible for the amount of regular unemployment compensation to which the individual would otherwise be eligible.

Page 8 House Bill 331-First Edition General Assembly Of North Carolina Session 2021 (3) Section 5.1 of this act becoming effective 60 days from the effective date of this act and applying retroactively to claims arising, and to plans submitted, on or after February 15, 2021.

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