Wisconsin Department of Workforce Development

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Unemployment Insurance Advisory Council Meeting Minutes

Wednesday, November 29, 2007 – 10:00 a.m.

Workforce Development Center
892 Main Street, Room 111
Pewaukee, Wisconsin

Members Present

Management: James Buchen, Ed Lump, Dan Petersen, Earl Gustafson, Susan Haine

Labor: Phil Neuenfeldt, Patty Yunk, Red Platz, Dennis Penkalski

Chair: Daniel LaRocque

Department staff present: Hal Bergan, Tracey Schwalbe, Dick Tillema, Lutfi Shahrani, Carla Breber, Andrea Reid

Others present: Bob Andersen (Legal Action of Wisconsin), Michael Metz (WI Independent Business)

MINUTES

Mr. LaRocque calls the meeting to order at 10:09 a.m.

1. Opening Remarks – Hal Bergan

Mr. Bergan states that it will be beneficial for scheduling to come to an agreement today.

Mr. LaRocque points out the meeting packet which contains a chart of the department proposals that have been proposed and approved and the department proposals that have not yet received a vote.

2. Minutes of Meeting November 7, 2007

Motion (Lump), seconded (Platz), to approve the Minutes of the November 7, 2007, meeting. Minutes are approved unanimously.

3. Proposals by Labor, Management and Department for changes to the unemployment insurance statute and rules

Motion (Buchen), seconded (Penkalski), is passed unanimously to go into closed session to discuss all proposals by Labor, Management and the Department for changes to the unemployment insurance statute and rules pursuant to section 19.85(1)(ee) of the Wisconsin Statutes. Closed sessions by the management and labor members of the Council, respectively, begin at 10:11 a.m.

Open session resumes at 1:43 p.m.

Motion (Buchen), seconded (Neuenfeldt), to agree to the following changes to the unemployment insurance law passes unanimously:

1. Advisory Council will appoint a study committee to review the definition of independent contractor for possible revisions. This should be a non-statutory provision in the bill.
2. Increase the wage base to $12,000 in 2009, $13,000 in 2011 and $14,000 in 2013.
3. Reallocate revenue such that the basic contribution rate will be reallocated to the solvency rate .2 percent for positive balance employers and .4 percent for negative balance employers. This would take effect in calendar year 2009. The reallocation will apply to all four schedules (A, B, C and D) in the statute and the Advisory Council can review this again in the next bill cycle if necessary.
4. Increase the qualifying requirement from 30 to 35 times the weekly benefit rate.
5. Make a technical change to (5g) and (5) to confirm that they are separate standards and codify what the court did in the Maplecrest Manor & DWD v. LIRC and Lancaster case on the issue that LIRC created with its interpretation. Eliminate the sunset in (5g).
6. Treat parents and children the same for purposes of benefits in a family corporation so that benefits are not reduced for parents.
7. No increase of the maximum weekly benefit in 2008; increase by $8 in 2009.
8. Reduce the threshold level for deferral of first-quarter contributions to $1,000 from the current level of $5,000. Employers must affirmatively elect the deferral and file wage and tax reports electronically. This will take effect in 2009.
9. Approve the department proposal on the program integrity penalties in D07-03A.

4. Schedule future meetings

Mr. LaRocque indicates that we would like to aim for a January 9th committee hearing on the bill and subsequent floor vote.

Comment (Neuenfeldt): After the bill is drafted, the department should mail it to the Council members and the meeting can be by telephone.

Comment (Buchen): The committee meeting on the workers compensation bill is set for January 9th.

The next meeting is scheduled for Monday, December 17, at 1:30 p.m. Council members will have the option of appearing in person at GEF-1 or by telephone.

Motion to adjourn passes unanimously.

Updated August 24, 2009
Unemployment Insurance Division, Bureau of Legal Affairs (BOLA)
Content Contact: Legal Affairs Staff