Summary:

 House Bill 67 (HB 67) modifies the Unemployment Compensation Law to define "reasonable assurance" for employees of educational institutions. The bill establishes explicit criteria to determine whether an employee has a reasonable expectation of reemployment, impacting their eligibility for unemployment benefits during academic breaks.  

Legislation Overview:

 House Bill 67 (HB 67) introduces changes to unemployment benefit eligibility for employees of educational institutions by clarifying the definition of reasonable assurance. The key provisions include:

Definition of Reasonable Assurance
Reasonable assurance requires meeting several specific criteria. The educational institution must provide an offer of employment for the following academic year or term, which may be written, oral, or implied. This offer must be extended by an individual with the actual authority to make such commitments. The employment offered must be in a similar or higher capacity compared to the individual’s previous role, and the compensation must be at least 90 percent of the previous year’s earnings. Additionally, the offer cannot be contingent on factors within the institution’s control, such as funding decisions, course programming, or facility availability.

Implications for Unemployment Benefits
Employees with reasonable assurance of reemployment are not eligible for unemployment benefits during academic breaks. However, if an anticipated position does not materialize, retroactive benefits may be provided, contingent upon the employee meeting eligibility certification requirements.

Application Scope
The provisions apply to employees in both instructional and non-instructional roles and encompass public and private educational institutions, including for-profit and nonprofit entities. These regulations apply to institutions within New Mexico as well as those covered by state unemployment agreements.

Fiscal Impacts 
The bill may reduce unemployment compensation claims by narrowing eligibility criteria for educational employees during breaks, potentially resulting in cost savings for the state’s Unemployment Insurance Trust Fund. However, the administrative burden may increase due to the need to verify compliance with the new reasonable assurance criteria and process retroactive claims when applicable.

 

Current Law:

 Under current law, the definition of reasonable assurance is less explicit, creating inconsistencies in determining eligibility for unemployment benefits during academic breaks. Employees of educational institutions are generally denied unemployment benefits during breaks if there is a reasonable expectation of reemployment, but detailed criteria for this determination are not defined.