SB 1278 — wage rates; technical correction

5.

A member of a labor organization may obtain health and welfare, pension, vacation, sick or holiday benefits of the member's choosing instead of the benefits offered by the labor organization.

The member has the ultimate discretion regarding which benefits the member chooses.

If the member chooses:

(a) To obtain benefits from the member's employer, the employer may withhold payment to the labor organization for the hourly fringe charge for those benefits.

(b) To obtain benefits from a person outside of the employment relationship, the employer shall withhold payment to the labor organization for that particular fringe benefit category and forward the monies to the employee or benefit provider, as agreed to by THE employee and employer.

6.

Any fringe benefit contributions that a union receives and that are in excess of the costs that the union incurs with respect to that fringe benefit must either be refunded to the employee or deposited into a defined contribution plan on the employee's behalf within seventy-five days after the end of the year.

7.

A labor organization may not accept dues or benefits contributions for employees that WHO have not voluntarily joined the labor organization.

Any resident of this state has standing in a court of this state against the labor organization for monies that are paid to a labor organization on behalf of the resident without the resident's consent.

8.

An individual may not be considered to be a member of a labor organization, or have any union dues or union benefits withheld from the individual or the individual's employer, without the individual's affirmative written consent.

An employee or an employer may not pay any penalty or fee related to the employee's abstention or resignation from labor organization membership.

ThisAN sectionEMPLOYEE appliesMAY toRECOVER anyCALCULATED laborDAMAGES organizationATTRIBUTABLE thatTO isMONIES collectingPAID benefitBY moniesTHE orEMPLOYEE'S unionEMPLOYER duesFOR onTHAT behalfEMPLOYEE ofIF: a resident of this state or an employer that is domiciled within this state.

This1. section does not apply to labor organizations for employees working for the state, a political subdivision of the state or federal governments.

THE EMPLOYEE SENDS A CERTIFIED LETTER TO THE EMPLOYER’S STATUTORY AGENT IN THIS STATE THAT ADVISES THE EMPLOYER THAT THE EMPLOYEE INTENDS TO PURSUE SUCH A CLAIM UNLESS THE EMPLOYER OBJECTS WITHIN NINETY DAYS.

2.

THE EMPLOYER DOES NOT OBJECT.

AN EMPLOYER’S FAILURE TO OBJECT IN WRITING WITHIN NINETY DAYS CONSTITUTES A WAIVER OF THE EMPLOYER’S RIGHT TO RECOVER PURSUANT TO THIS SECTION TO THE EXTENT OF THE EMPLOYEE’S RECOVERY.

NotwithstandingA anyTHIRD-PARTY otherBENEFITS lawORGANIZATION ofIS thisNOT stateLIABLE andPURSUANT toTO theTHIS extentSECTION allowedIF underTHE federalTHIRD-PARTY law,BENEFITS anyORGANIZATION memberSATISFIES orALL employerOF whoTHE THATFOLLOWING: is otherwise obligated to contribute benefit monies for a benefit category as defined in subsection D, paragraph 4 or 5 1, SUBDIVISION (d) OR (e) of this section or union dues has no such obligation during any time that the - 2 - S.B.

12781. labor organization is in violation of subsection A of this section.

APROVIDES labor organization that is in violation of subsection A ofRECONCILIATION thisTO sectionITS forMEMBER moreEMPLOYEES thanTHROUGH thirtyUNITED daysSTATES forfeitsMAIL the labor organization's claim on the benefit monies the member or employer was obligated to contribute for a benefit category as defined in subsection D, paragraph 4 or 5 1, SUBDIVISION (d) OR (e)EMAIL ofTHAT thisWOULD sectionREASONABLY orALLOW duesAN duringEMPLOYEE theTO timeDETERMINE the- labor1 organization- wasS.B. in violation of subsection A of this section.

This1278 subsectionTHE doesCOSTS notAND allowEXPENSES aOF memberTHE orBENEFITS. employer to halt contributions for a benefit category as defined in subsection D, paragraphs PARAGRAPH 1, through 3 SUBDIVISIONS (a) THROUGH (c) of this section, and a labor organization does not forfeit its claim on benefit monies or dues for a benefit category as defined in subsection D, paragraph 1, through 3 SUBDIVISIONS (a) THROUGH (c) of this section unless in accordance with an election made by the member pursuant to subsection A, paragraph 5 of this section.

THE RECONCILIATION MUST BE LISTED BY BENEFIT FOR A TWELVE-MONTH PERIOD AND PROVIDE THE FOLLOWING:

(a) THE SPECIFIC RATES CHARGED TO THE EMPLOYEE AND EMPLOYER.

(b) THE DIRECT EXPENSE RATES CHARGED TO THE PLAN BY THIRD-PARTY INSURERS AND PLAN PROVIDERS.

(c) THE TOTAL NUMBER OF EMPLOYEES, INCLUDING HOURS AND REVENUE COLLECTED IN THIS STATE AND NATIONALLY.

(d) THE TOTAL DIRECT CLAIMS EXPENSES OR PAYMENTS TO BENEFICIARIES, IF ANY, IN THIS STATE AND NATIONALLY.

(e) A LIST OF TOTAL PAYMENTS MADE TO ANY THIRD-PARTY INSURERS OR PLAN PROVIDERS IN THIS STATE AND NATIONALLY.

(f) A LIST OF ALL ADMINISTRATIVE AND OTHER EXPENSES NOT LISTED IN SUBDIVISIONS (a) THROUGH (e) OF THIS PARAGRAPH INCURRED IN THIS STATE AND NATIONALLY.

(g) A LIST THAT SUMMARIZES THE DIFFERENCE BETWEEN THE REVENUES AND EXPENSES IN SUBDIVISIONS (a) THROUGH (f) OF THIS PARAGRAPH IN THIS STATE AND NATIONALLY LISTED IN TOTAL DOLLARS AND AS A PERCENTAGE OF REVENUE.

2.

ALLOWS AN EMPLOYEE TO OPT OUT OF ANY HEALTH, PENSION OR VACATION OR SICK LEAVE BENEFITS AND TO CHOOSE EITHER:

(a) BENEFITS FROM THE EMPLOYEE'S EMPLOYER IF THE EMPLOYER AGREES AND THE EMPLOYER WITHHOLDS PAYMENT TO THE THIRD-PARTY BENEFITS ORGANIZATION FOR THAT PARTICULAR BENEFIT CATEGORY.

(b) BENEFITS OUTSIDE THE EMPLOYMENT RELATIONSHIP IF THE EMPLOYER WITHHOLDS PAYMENT FROM THE THIRD-PARTY BENEFITS ORGANIZATION FOR THAT PARTICULAR BENEFIT CATEGORY AND FORWARDS THE MONIES TO THE EMPLOYEE.

3.

ELIMINATES ANY PENALTY FOR AN EMPLOYEE OR EMPLOYER TO TERMINATE THE RELATIONSHIP WITH THE THIRD-PARTY BENEFITS ORGANIZATION, INCLUDING LIABILITY FOR ANY BENEFITS THAT ARE ACTUARILY UNDERFUNDED.

ForA theCLAIM purposesFOR ofCALCULATED thisDAMAGES section:MAY BE BROUGHT AGAINST A THIRD-PARTY BENEFITS ORGANIZATION IN SUPERIOR COURT OR ANY OTHER APPROPRIATE VENUE.

,EXCEPT 1.AS OTHERWISE SET FORTH IN THIS SECTION, THE COURT SHALL AWARD A PLAINTIFF ANY CALCULATED DAMAGES THAT THE PLAINTIFF HAS SUFFERED ALONG WITH ANY OTHER RELIEF TO WHICH THE PLAINTIFF MAY BE ENTITLED.

"BenefitTHIS category"SECTION includesPROVIDES anyTHE combinationEXCLUSIVE ofREMEDY oneFOR orA moreVIOLATION ofOF theTHIS followingSECTION. or additional benefit categories but may vary for each labor organization:

THIS SECTION DOES NOT CREATE A CAUSE OF ACTION BETWEEN AN EMPLOYEE AND EMPLOYER.

E.

THIS SECTION APPLIES TO ANY THIRD-PARTY BENEFITS ORGANIZATION THAT ESTABLISHES OR NEGOTIATES THE RATES OR COLLECTS MONIES FOR EMPLOYEE BENEFITS ON BEHALF OF A RESIDENT OF THIS STATE OR AN EMPLOYER THAT HAS EMPLOYEES LOCATED IN THIS STATE.

F.

ACTIONS FOR CALCULATED DAMAGES MUST BE BROUGHT WITHIN FOUR YEARS AFTER THE CAUSE OF ACTION ACCRUES.

- 2 - S.B.

1278 G.

THIS SECTION DOES NOT APPLY TO ANY OF THE FOLLOWING:

(a)AN HealthINSURER, andINSURANCE welfare.AGENT OR INVESTMENT MANAGEMENT FIRM.

(b)A Pension.THIRD-PARTY ADMINISTRATOR PERFORMING A PURELY ADMINISTRATIVE ROLE.

(c)AN Vacation,EMPLOYEE sickWHO orIS holiday.EMPLOYED BY THE FEDERAL GOVERNMENT OR A POLITICAL SUBDIVISION OF THIS STATE.

4.H.

(d)FOR Training.THE PURPOSES OF THIS SECTION:

5.1.

(e)"BENEFITS": Other.

(a) MEANS MONIES PAID BY AN EMPLOYEE OR EMPLOYER TO A THIRD-PARTY BENEFITS ORGANIZATION FOR THE BENEFIT OF THE EMPLOYEE AND INCLUDES HEALTH, PENSION, TRAINING OR VACATION OR SICK LEAVE BENEFITS OR OTHER BENEFITS.

(b) DOES NOT INCLUDE LABOR ORGANIZATION MEMBERSHIP DUES.

"LABOR"THIRD-PARTY ORGANIZATION":BENEFITS ORGANIZATION" INCLUDES ANY LABOR ORGANIZATION AS DEFINED IN SECTIONS 23-1301 AND 23-1321 AND ANY TAFT HARTLEY TRUST, OTHER FUND OR ENTITY USED TO ADMINISTER ANY BENEFIT REQUIRED BY A LABOR AGREEMENT ADOPTED BY A THIRD-PARTY BENEFITS ORGANIZATION.

(a)Sec. INCLUDES ANY RECOGNIZED LABOR ORGANIZATION AS DEFINED IN SECTION 23-1301 AND ANY TAFT-HARTLEY ACT TRUST BENEFIT PLAN THAT IS JOINTLY OPERATED BY A LABOR ORGANIZATION.

(b)3. DOES NOT INCLUDE AN EMPLOYER-SPONSORED BENEFIT PLAN THAT IS NOT MANAGED BY A LABOR ORGANIZATION.

Severability If a provision of this act or its application to any person or circumstance is held invalid, the invalidity does not affect other provisions or applications of the act that can be given effect without the invalid provision or application, and to this end the provisions of this act are severable.

APPROVED BY THE GOVERNOR MAY 27, 2022.

FILED IN THE OFFICE OF THE SECRETARY OF STATE MAY 27, 2022.