A couple of developments passed under the radar during the past year. Indiana legislation amended state unemployment insurance laws and Hawaii's legislature is considering a bill, both of which potentially implicate displaced workers rights.
In Indiana, amendments to the unemployment insurance statute at IC-22-4-32-23 include dissolution, liquidation, or withdrawal of business entities from Indiana. Within 30 days of adopting a plan to take such actions, a company must file written notification with the Department of Workforce Development. The notification must indentify: (1) the corporation’s assets, (2) the corporation’s liabilities, (3) the details of the plan or resolution, (4) the names of the corporate officers, directors, shareholders or owners, trustees, and/or members, and (5) a copy of the minutes of the meeting at which the plan as adopted. For one year following the dissolution, liquidation, or withdrawal, corporate officers and directors remain personally liable for any acts or omissions that result in the distribution of corporate assets in violation of the interests of the state, unless within 30 days after providing notification, the company follows departmental procedures to seek clearance from liability. The amendments passed the state legislature and were signed into law by the governor.
The Hawaii House of Representatives and Senate are considering bills, HB396 HD2 and SB688 HD2 respectively, that would provide job security to employees. In the event of a company's divestiture, corporate successors facility would be required to hire incumbent nonsupervisory and non-confidential employees without requiring them to apply for employment. The successor would be permitted to pre-screen incumbent employees, conduct criminal history checks, and drug screening. Successor companies engaged in a substantially dissimilar business would be exempt from the bill's requirements, as would successors with substantially reduced staffing needs. The House and Senate bills would apply to employers of 100 or more workers. Employers who violate the act would be required to compensate illegally dislocated workers for the difference between the employee’s prior salary and the amount of their unemployment insurance payments throughout the time period that the individual is covered under the state's unemployment insurance program. Under the Senate bill, successor employers would receive a one-year exemption from the state's general excise tax.
The bills were introduced during the 2009 legislative session and have been carried over to the 2010 session. SB 688 is sponsored by Senators Takmine, Chun, Oakland, Bunda, Gabbard, Kindani, and Tsutsui. The bill was passed by the state senate and then transmitted to the state House of Representatives. HB396 is sponsored by Rep. Roy Takumi and was recommended for passage by the House Labor and Economic Revitalization, Business & Military Affairs Committees before being referred to the House Finance Committee where it remains pending.
Residents of Hawaii may wish to contact their state senators and representatives to express support for this legislation.
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