AN ACT
To provide lost wages to displaced workers through the formation of a Wage Insurance Program
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Section 1: Title and Definitions
1. This act may be cited as the "Wage Insurance Act."
2. "Displaced Workers" shall be defined as workers currently earning less than $50,000 a year who had previously held a job where they earned at least $50,000 before being laid off.
3. "Laid off" shall be defined as being fired without cause.
Section 2: Creation of a Wage Insurance Program
1. A federal program, entitled the "National Wage Insurance Fund", shall be formed within the Department of Internal Affairs.
Section 3: Functioning of the Wage Insurance Program
1. The National Wage Insurance Fund shall administer categorical grants to regional unemployment insurance programs.
2. The grant money shall be spent by the regional governments on wage insurance for displaced workers.
a. Up to half of the difference between the initial wage before being laid off and the later wage accepted afterward is eligible for replacement through wage insurance.
3. The Department of Internal Affairs shall be responsible for allocating the necessary funds to the federal program, and thence to the regional governments.
4. The regional governments will be responsible for determining how many people at the regional level qualify for the program, and thence distributing the grant money accordingly.
Section 4: Eligibility Requirements
1. Displaced workers who spent less than 3 years at the job they were laid off from shall not be covered by this program.
2. Displaced workers whose period of unemployment between jobs was more than 15 weeks shall not be covered by this program.
3. No individual worker shall receive more than $10,000 of lost wages.
4. No individual worker shall receive wage insurance for more than 2 years.
Section 5: Cost
1. The Department of Internal Affairs shall be responsible for determining the cost of the fund.
Section 6: Implementation
1. This bill shall be implemented at the start of the next fiscal year.