unemployment benefits; waiting period.

SB1297 - 572R - I Ver

REFERENCE TITLE:
unemployment benefits; waiting period.

State of Arizona

Senate

Fifty-seventh Legislature

Second Regular Session

2026

SB 1297

Introduced by

Senator
Gabald�n

AN
ACT

amending sections 23-762 and 23-771,
arizona revised statutes; relating to employment security.

(TEXT OF BILL BEGINS ON NEXT PAGE)

Be it enacted by the Legislature of the State of Arizona:

Section 1. Section 23-762, Arizona Revised
Statutes, is amended to read:

START_STATUTE
23-762.

Requirements of shared work plan; approval

A. An employer
wishing

that wishes
to participate in the shared work unemployment
compensation program shall submit a signed, written shared work plan to the
department for approval. The department shall approve a shared work
plan only if the plan:

1. Specifies the employees in the affected group.

2. Applies to only one affected group.

3. If feasible, includes a description of the
employer's plan for notifying an employee whose
work week

workweek
is to be reduced.

4. Includes a certified statement by the employer
that, for the six-month period immediately preceding the date the plan is
submitted, compensation was payable from the shared work employer, or its
predecessors whether or not they were shared work employers, to each employee
in the affected group in an amount equal to or greater than the wages for
insured work in one calendar quarter as provided in section 23-771,
subsection A, paragraph
6
5
. An
employee who joins an affected group after the approval of the shared work plan
is automatically covered under the previously approved plan, effective the week
that the department receives written notice from the shared work employer that
the employee has joined and certification from the employer that the employee
meets the provisions of section 23-771, subsection A, paragraph
6
5
.

5. Includes a certified statement by the employer
that for the duration of the plan the reduction in the total normal weekly
hours of work of the employees in the affected group is instead of layoffs
which

that
otherwise would result in at
least as large a reduction in the total normal weekly hours of
work. The employer shall include an estimate of the number of
layoffs that would have occurred without an approved shared work plan.

6. Specifies the manner in which the employer will
treat fringe benefits of the employees in the affected group if the employees'
hours are reduced to less than their normal weekly hours of work.� The employer
must certify, if the employer provides health benefits and retirement benefits
under a defined benefit plan to any employee whose workweek is reduced under
the plan, that these benefits will continue to be provided to an employee
participating in the shared work plan under the same terms and conditions as
though the workweek of the employee had not been reduced or to the same extent
as other employees not participating in the shared work program.

7. Specifies an expiration date that is
no

not
more than one year
from

after
the date the employer submits the plan for
approval, except that on written request by the employer, the department may
approve an extension of the plan for a period of not more than one year from
the date of the request.

8. Is approved in writing by the collective
bargaining agent for each collective bargaining agreement that covers any
employee in the affected group.

B. The plan prescribed in subsection A of this
section and the implementation of the plan must be consistent with the
employer's obligations under all other federal and state laws.

C. The department shall approve or disapprove the
plan within fifteen days after receipt of the plan by the
department. The department shall notify the employer of the reasons
for denial of a shared work plan within ten days
of

after
the determination.
END_STATUTE

Sec. 2. Section 23-771, Arizona Revised
Statutes, is amended to read:

START_STATUTE
23-771.
Eligibility for benefits

A. An unemployed individual is eligible to receive
benefits with respect to any week only if the department finds that the
individual:

1. Has registered for work at and thereafter has
continued to report at an employment office in accordance with the regulations
prescribed by the department.

2. Has made a claim for benefits in accordance with
section 23-772.

3. Is able to work.

4. Except for an individual who is applying for
shared work benefits pursuant to article 5.1 of this chapter, is available for
work and both of the following apply:

(a) The individual has engaged in a systematic and
sustained effort to obtain work during at least four days of the week.

(b) The individual has made at least one job contact
per day on four different days of the week.

5. Has been unemployed for a waiting
period of one week. A week is not counted as a week of unemployment
for the purpose of this paragraph:

(a) Unless it occurs within the
benefit year that includes the week with respect to which the individual claims
payment of benefits.

(b) Unless the individual was eligible
for benefits with respect to the week as provided in this section and sections
23-775, 23-776 and 23-777.

(c) If benefits have been paid in
respect to the week.

6.

5.
Has
met one of the following requirements:

(a) Has been paid wages for insured work during the
individual's base period equal to at least one and one-half times the
wages paid to the individual in the calendar quarter of the individual's base
period in which the wages were highest, and the individual has been paid wages
for insured work in one calendar quarter of the individual's base period equal
to an amount that is equal to at least three hundred ninety times the minimum
wage prescribed by section 23-363 that is in effect when the individual
files a claim for benefits.

(b) For a benefit year beginning on or after
September 2, 1984, has been paid wages for insured work during at least two
quarters of the individual's base period and the amount of the wages paid in
one quarter would be sufficient to qualify the individual for the maximum
weekly benefit amount payable under this chapter and the total of the
individual's base-period wages is equal to or greater than the taxable
limit as specified in section 23-622, subsection B, paragraphs 1 and 2.

7.

6.
Following
the beginning date of a benefit year established under this chapter or the
unemployment compensation law of any other state and before the effective date
of a subsequent benefit year under this chapter, has performed services whether
or not in employment as defined in section 23-615 for which wages were
payable in an amount equal to or in excess of eight times the weekly benefit
amount for which the individual is otherwise qualified under section 23-779. In
making a determination under this paragraph, the department shall use
information available in its records or require the individual to furnish
necessary information within thirty days after the date notice is given that
the information is required.

B. If an unemployed individual cannot establish a
benefit year as defined in section 23-609 due to receipt during the base
period of compensation for a temporary total disability pursuant to chapter 6
of this title, or any similar federal law, the individual's base period shall
be the first four of the last five completed calendar quarters immediately
preceding the first day of the calendar week in which the disability
began. Wages previously used to establish a benefit year may not be
reused. This subsection does not apply unless all of the following
occur:

1. The individual has filed a claim for benefits not
later than the fourth calendar week of unemployment after the end of the period
of disability.

2. The claim is filed within two years after the
period of disability begins.

3. The individual meets the requirements of
subsection A of this section.

4. The individual has attempted to return to the
employment where the temporary total disability occurred.

C. If an unemployed individual is a member of the
national guard or other reserve component of the United States armed forces,
the individual is not considered to be either employed or unavailable for work
by reason of the individual's participation in drill, training or other
national guard or reserve activity that occurs on not more than one weekend per
month or in lieu of a weekend drill or the equivalent.

D. The department shall not disqualify an individual
from receiving benefits under this chapter on the basis of the individual's
separation from employment if the individual is a victim of domestic violence
and leaves employment due to a documented case involving domestic violence
pursuant to section 13-3601 or 13-3601.02.� Benefits paid to an
individual pursuant to this subsection shall not be charged against an
employer's account pursuant to section 23-727, subsection G.

E. The department shall not disqualify an individual
from receiving benefits under this chapter on the basis of the individual's
separation from employment if the individual was terminated from employment for
not receiving a COVID-19 vaccine or COVID-19 booster shot required
by the employer.� Benefits paid to an individual pursuant to this subsection
shall not be charged against an employer's account pursuant to section 23-727
if the employer's requirement that employees receive the COVID-19 vaccine
or COVID-19 booster shot is required by law.

F. For the purposes of subsection A, paragraph
6

5
of this section, wages
shall be

are
counted as wages for insured
work for benefit purposes with respect to any benefit year only if that benefit
year begins subsequent to the date on which the employing unit by which those
wages were paid has become an employer subject to this chapter.
END_STATUTE