By David Ferguson
Saturday, June 1, 2013 12:10 EDT
A law is advancing through the Wisconsin state legislature that would
double the job-seeking requirements for people collecting unemployment
and which would allow the government to peer into their bank accounts
and freeze them if they believe the account holder has received
overpayments in their benefits.
According to the Wisconsin State Journal,
the co-authors of the bill, which was introduced in the state Assembly
and Senate on Friday, insist that the changes would be for workers’ own
good.
“This is to protect the workers and lessen the burden on employers
who are paying all the bills,” said state Rep. Dan Knodl (R-Germantown).
The bill also addresses the concerns of businesses which say that the
state has not done enough to train judges on how to rule in disputes
between companies and employees.
Democratic state Rep. Christine Sinicki (Milwaukee) said that
the law is another salvo by Republicans against working people and the
middle class. She also worried that Republicans would make the bill even
more intrusive and draconian during the legislative mark-up process.
Knodl said the aim of the legislation is to move the state’s
unemployment fund to solvency. Wisconsin is one of 31 states that had to
borrow from the federal government to pay out unemployment benefits. At
its highest point, Wisconsin’s debt to the federal government was
nearly $1.5 billion, although in April of 2013, the amount was
significantly less than that, $476 million,
according to the U.S. Department of Labor.
Among the changes included in the Republican-backed legislation would
slightly increase the maximum allowable benefit by $7 to $370 per week,
it would render anyone cut off from receiving benefits for not taking a
job ineligible to ever receive benefits again until they find a job
that pays at least six times his or her benefit rate at the time of
termination of benefits. The current requirement is four times their
benefit rate.
It would force job applicants to apply for twice as many jobs to
remain eligible for benefits. Currently employment seekers must apply
for two jobs per week to keep unemployment benefits flowing. The new law
raises that number to four.
Currently, people receiving educational or vocational training in
order to qualify for a job can continue to receive unemployment benefits
past their original expiration date. The new law would stop those
payments.
The bill mandates that banks and financial institutions must hand
over the private account information of any people suspected by the
government of receiving overpayments.
In the event of overpayments, even those caused by government
error or computer malfunctions, the government would be able to freeze
and collect from the accounts of people receiving unemployment.
Assembly Bill 219 and Senate Bill 200 will go before legislative committees for consideration on Wednesday, June 5.
[image of hands reaching for piggy-bank via Shutterstock.com]
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