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2000 SESSION

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HB 1523 Workforce Incentive Program; created.

Introduced by: Frank W. Wagner | all patrons    ...    notes | add to my profiles

SUMMARY AS INTRODUCED:

Unemployment compensation; Virginia Workforce Incentive Program. Creates the Virginia Workforce Incentive Program, administered by the Virginia Employment Commission, to reimburse employers for expenditures incurred in providing employment for eligible workers. An eligible employee is a person who (i) had resided in a city or county with a unemployment rate that exceeds 10 percent; (ii) is hired as a full-time employee by an eligible employer for a position located at least 60 miles from his residence; and (iii) was unemployed and was either receiving unemployment benefits or had exhausted eligibility for such benefits when he was hired by an eligible employer. The bill applies only to employees hired on or after January 25, 2000. To be eligible for reimbursement of the reasonable and necessary actual costs of meals, transportation and lodging incurred as a direct consequence of the eligible employee's employment, the employer must hire eligible employees for full-time positions in a locality with an unemployment rate that is less than five percent. In addition, the expenses must have been incurred as a bona fide inducement to recruit the eligible employees. Expenditures eligible for reimbursement include any amount expended by the employer in reimbursing the employee, provided that the reimbursement rates do not exceed those applicable to reimbursement of state employees for similar travel expenditures. The weekly reimbursement amount for any employee is capped at the amount of weekly unemployment benefits for which the employee would have been eligible. In addition, an employer shall not be reimbursed for more than 26 weeks of eligible expenses incurred with respect to any eligible employee in any year. Generally, covered employers required to pay assigned or experience rated unemployment insurance taxes are required to pay a contribution to the Virginia Workforce Incentive Fund. This contribution is equal to eight percent of each employer’s unemployment insurance tax rate, and a reduction equal to this contribution shall be credited to the employer’s unemployment tax obligations.


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