HB 1152 – Unemployment Insurance
Authored by Rep. Dan Leonard (R-Huntington)
Sponsored by Sen. Phil Boots (R-Crawfordsville)

Clarifies provisions concerning the overpayment of unemployment benefits resulting from fraud or failure to disclose wages and the forfeiture of benefits or wage credits.

Chamber position: Support

The latest: Two amendments were offered by Sen. Karen Tallian (D-Portage) in the Senate Pensions and Labor Committee. Amendment No. 3 dealt with the Indiana Department of Workforce Development (DWD) sharing identity theft with the Indiana State Police and the attorney general’s office. This wasn’t a bad idea, but DWD already has those practices in place. Amendment No. 4 changed the wage base back to what it was prior to 2012, allowing unemployment insurance (UI) benefits to revert to the highest earning quarter as opposed to an average. Ultimately, chairman Boots did not allow votes on either amendment. After a lengthy debate, the bill passed the committee 7-3 on a party line vote.

Indiana Chamber action/commentary: The Chamber and the Indiana Manufacturers Association testified in favor of the bill. After just going through the most difficult time for UI benefits, DWD is making recommendations for tools it needs to combat fraud. That’s good for the system and for the trust fund. DWD testified that the bill ensures fraud can be identified even if the person does not receive benefits. Fraudulent benefits occur sometimes when people say no to having worked the previous week when they indeed had worked.

Organized labor opposed the bill because of the belief this language makes it possible for someone who makes an unintended mistake on their UI benefit application to be considered making a fraudulent act. But that’s not the intent of the legislation.

The bill is expected to pass the Senate – most likely along party lines.

Resource: Mike Ripley at (317) 264-6883 or email: mripley@indianachamber.com