Legislation that sought to aid employees and employers during tough economic times failed in the House Commerce and Energy committee Wednesday morning. House Bill 1226 creates a work-share program, where employees who had their hours reduced from full time could receive compensation up to that full amount.
Representative Ray Ring says the original bill is modeled after some other states. He proposed an amendment to meet the federal guidelines for program eligibility. He says if South Dakota passes legislation this year, the state will receive federal funds to help implement it. He says it benefits both employers and their workers during downturns.
“Now granted, right now with the unemployment rate as low as it is in South Dakota, this may not be such an issue. But even in the best of times sales can drop for individual firms and this would provide them with more flexibility. You don’t have to be an economist to be pretty sure there’s another recession coming at some point. Work-sharing puts more tools in businesses toolbox for dealing with inevitable economic fluctuations. If it helps employers, they’re free to use it. If it doesn’t, they’re in the same place they would be without it,” Ring says.
But opponents worry whether work-share is needed in South Dakota. They point to low usage, plus potential unintended consequences. Shawn Lyons with the South Dakota Retailers Association says he’s concerned about possible long term requirements of the labor department or business community.
“I would like to have a little more time to understand this. I would tell you from our organization’s standpoint and hearing from our members, or lack thereof, I don’t know if there’s any great sense of urgency to get this implemented at this point. When we talk about federal funding, we get a little bit skittish and I would join that concern in this one here as what’s the catch and what’s the hook?” Lyons says.
After more than a half hour of debate, members of the House Commerce and Energy committee agreed they needed more time to consider the 6-page amendment and possible outcomes. House Bill 1226 was voted down.