bill expanding hour cuts under shared work

The text as introduced · 616 words

89R41 KKR-F

By: Guillen
H.B. No. 1843

A BILL TO BE ENTITLED

AN ACT

relating to requirements regarding an employee's normal weekly

hours of work under the shared work unemployment compensation

program.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Section 215.022(a), Labor Code, is amended to

read as follows:

(a) The commission may approve a shared work plan if:

(1) the plan:

(A) applies to and identifies a specific affected

unit;

(B) identifies the employees in the affected unit

by name and social security number and describes how the employees

will be notified in advance of the plan, if feasible;

(C) provides an estimate of the number of

employees who would be laid off if the employer does not participate

in the shared work plan;

(D) reduces the normal weekly hours of work for

an employee in the affected unit by at least 10 percent but not more

than 50 [ 40 ] percent;

(E) applies to at least 10 percent of the

employees in the affected unit; and

(F) permits eligible employees to participate in

training;

(2) the employer certifies that the implementation of

a shared work plan and the resulting reduction in work hours is in

lieu of layoffs that would:

(A) affect at least 10 percent of the employees

in the affected unit; and

(B) result in an equivalent reduction in work

hours;

(3) the employer certifies that:

(A) if the employer currently provides fringe

benefits, the fringe benefits continue for employees in the

affected unit unless those benefits are not continued for employees

not participating in the shared work plan; and

(B) participation in the shared work plan is

consistent with the employer's obligations under state and federal

law; and

(4) the employer agrees to furnish the commission

reports relating to the operation of the plan as requested by the

commission and any other information the United States secretary of

labor determines is appropriate.

SECTION 2. Section 215.041(b), Labor Code, is amended to

read as follows:

(b) An individual is eligible to receive shared work

benefits for a week in which:

(1) the individual is employed as a member of an

affected unit subject to a shared work plan that was approved before

that week and is in effect for that week;

(2) the individual is able to work and is available for

additional hours of work or for full-time work with the

participating employer; and

(3) the individual's normal weekly hours of work have

been reduced by at least 10 percent but not more than 50 [ 40 ]

percent, with a corresponding reduction in wages.

SECTION 3. (a) The change in law made by this Act applies

only to an initial shared work plan or a shared work plan

modification submitted by an employer to the Texas Workforce

Commission on or after the effective date of this Act. An initial

shared work plan or a shared work plan modification submitted

before the effective date of this Act is governed by the law as it

existed on the date the plan or modification was submitted, and the

former law is continued in effect for that purpose.

(b) A shared work plan modification submitted to the Texas

Workforce Commission on or after the effective date of this Act that

modifies a shared work plan approved by the commission before the

effective date and would reduce an individual's normal weekly hours

of work more than 50 percent is considered to be a substantial

modification under Section 215.025, Labor Code, and the modified

plan must be evaluated and approved by the commission as provided by

that section before implementation.

SECTION 4. This Act takes effect September 1, 2025.