(a) Special unemployment situation (nonagricultural).—
(1) The Secretary shall designate as special unemployment situations, those resulting from the displacement of workers due to technological progress and/or by the permanent disappearance of an industry, establishment or occupation in which there has occurred or is about to occur a reduction in the job opportunities, or a replacement of workers as consequence of technological progress, of such magnitude as to require that special measures be taken to prevent grave and serious hardship to the affected workers. Such designation shall be made according to the standards set forth in paragraphs (A), (B), (C) and (D) of this clause. It shall be understood for the purposes of this section that such special unemployment situations shall only be designated when said unemployment is not of a seasonal, or temporary nature, and as a result of same:
(A) One hundred (100) or more job opportunities are eliminated at a particular establishment during any period of twelve (12) consecutive months; or
(B) where the nature of the industry prevents the unemployment situation from being designated under the provisions of paragraph (A) and the job opportunities at said industry are reduced during any period of twelve (12) consecutive months by over five hundred (500) job opportunities and the average covered employment at such industry during said period of twelve (12) consecutive months is reduced by more than fifteen percent (15%); or
(C) two hundred (200) or more job opportunities are eliminated at a particular occupation during any period of twelve (12) consecutive months, or
(D) when in an establishment thirty-five (35) or more workers have been displaced, directly or indirectly, because of technological progress.
(2) Notwithstanding the provisions of clause (1)(A) of this subsection, if after the corresponding investigation the Secretary determines that extremely unfavorable conditions of employment exist at that particular situation on account of:
(A) The nature of the skills of the workers concerned;
(B) their geographical isolation, or
(C) for similar reasons, the Secretary may decide that there exists a special unemployment situation even in those cases where between fifty (50) and one hundred (100) job opportunities are eliminated at an establishment during any period of twelve (12) consecutive months.
(3) The Secretary shall determine whether a special unemployment situation exists as to any establishment, industry, or occupation, upon application by any of the workers involved or their representatives or by an employer. The Secretary shall make such a determination motu proprio in any case where an establishment or industry employing more than one hundred (100) persons has shut down and its management has not announced, within ten (10) days from the date of the shutdown, that it intends to reopen within three (3) months from the date of the shutdown.
(4) A determination that a special unemployment situation exists with relation to an establishment, industry, or occupation shall be valid for a period designated by the Secretary but not exceeding three (3) years. The Secretary upon application of the workers affected, their representatives or employers, or upon his own authority may reconsider the effective date of the determination so that the largest possible number of workers is benefited, or extend his original determination for a period not exceeding two (2) years if he finds that a substantial number of workers continues to be affected by the special unemployment situation.
(5) In determining whether a special unemployment situation exists, the Secretary shall consider, among other pertinent factors, the nature of the skills and aptitudes of the workers involved, the availability of work requiring such aptitudes and skills, whether in their industry or occupation or another industry or occupation, their geographical location and the duration and seasonality of the unemployment.
(b) Maximum additional potential benefits.—
(1) Any unemployed worker included in a special unemployment situation as determined under subsection (a) of this section, who meets the requirements of § 704(a) of this title and subsection (c) of this section, shall be entitled to an addition to his regular weekly unemployment compensation benefits payable to him during his last benefit year. Said additional benefits, together with the annual maximum potential benefits payable to the worker during his last benefit year as established in § 703(d) of this title, shall not exceed the sum of twenty (20) times the amount of the weekly benefit payable to the worker during his last benefit year plus thirty-two (32) times the amount of the weekly benefit assigned in the addition of benefits. After July 1, 1990, and for subsequent fiscal years, the weekly amounts payable for addition to benefits shall be determined on the basis of the schedule of benefits established to such ends by the Secretary by regulations, ensuring the solvency of the fund. The termination of the worker’s benefit year shall not interrupt the payment of additional benefits, but no additional benefit whatsoever shall be paid after the fifty second (52nd) week immediately after the termination of his last benefit year.
(2) The addition to the benefits provided in clause (1) of this subsection shall not be granted to any worker until he has exhausted all regular and extended benefits to which he may be entitled under any federal or federal-state unemployment compensation program, and any part of said extended benefits that the worker has received from the beginning of his last benefit year, under any federal or federal-state unemployment compensation program providing extended benefits, shall be discounted from the maximum amount of additional benefits he is entitled to under this section.
(3) In the case of an unemployed worker referred for training or retraining by the Puerto Rico Employment Service under any federal, state or federal-state program which provides allowances, who is also eligible for weekly additional unemployment benefits under this section, only so much of the weekly additional unemployment benefits payment shall be paid as exceeds the weekly allowance under the federal or federal-state training or retraining program, any any amount which the worker receives under any such federal or federal-state program after the beginning of his latest benefit year shall be deducted from the maximum amount of additional benfits to which he is entitled under this section.
(c) Eligibility for additional benefits.— Any unemployed worker included in a special unemployment situation, as determined under subsection (a) of this section, who has become permanently displaced, may be eligible for an addition of his regular unemployment benefits, as provided in subsection (b) of this section, if such worker complies with the requirements of § 704(a) of this title, and:
(1) Has exhausted maximum annual benefits to which he was entitled under § 703(d) of this title after the ninetieth (90th) day immediately preceding a determination made by the Secretary under subsection (a) of this section that a special unemployment situation exists, in which the worker is included, or his most recent benefit year has terminated after the ninetieth (90th) day immediately preceding such determination;
(2) had employment as defined under paragraphs (A)—(D) of § 702(k)(1) of this title for not less than seventy-eight (78) weeks out of the period of one hundred and fifty-six (156) consecutive weeks (or twelve (12) consecutive completed calendar quarters) immediately preceding his benefit year nearest to the effective date of the determination of special unemployment situation; Provided, That this requirement shall not be applicable to industries of a seasonal nature, as determined by the Secretary of Labor and Human Resources;
(3) had such employment in at least thirteen (13) weeks in each of the three (3) fifty-two (52)-week periods in the one hundred and fifty-six (156)-week period. This requirement shall not apply to those industries of a seasonal nature, as determined by the Secretary of Labor and Human Resources;
(4) had such employment in the establishment, industry or occupation affected by a special unemployment situation as determined under subsection (a) of this section for at least sixteen (16) weeks worked within the fifty-two (52)-week period immediately preceding said determination. This requirement shall not apply to those industries of a seasonal nature, as determined by the Secretary of Labor and Human Resources;
(5) has not refused, without just cause, to take training or retraining to which he is referred by the Puerto Rico Employment Service; Provided, That said refusal to undertake training or retraining shall not continue to bar eligibility when such worker later accepts referral by the Puerto Rico Employment Service for training or retraining;
(6) in the event that employers’ records are not available and, consequently, the number of weeks specified in clauses (4) and (5) of this subsection cannot be ascertained, the method to be used to determine said number of weeks shall be established by the Secretary through regulation.
(d) Training courses.— For purposes of this section, and of § 716b of this title:
(1) At the request of the Secretary, the Secretary of Education shall establish such training or retraining courses as may be required to provide the training needed to equip the persons referred.
(2) For the benefit of the workers displaced in a community as a result of a special unemployment situation as determined by the Secretary, the Director shall approve on-the-job retraining courses organized in the affected establishment or in any other industry established in the community, in accordance with the regulations to that effect which shall be promulgated by the Secretary.
(e) Transfer of funds.— Upon request of the Secretary, the Secretary of the Treasury is hereby empowered to make such transfers of funds as will enable the Secretary of Education to cover the operating expenses he will incur in relation with the training or retraining courses to be offered at the request of the Secretary. Likewise, to transfer any funds required by the Secretary:
(1) To cover the operating expenses he will incur in relation with the on-the-job retraining courses, and
(2) to cover the costs of transportation and of a luncheon required by the workers, and which shall be reimbursed to them in accordance with regulations to that effect which shall be promulgated by the Secretary. The total amount for transportation expenses to be reimbursed to the worker shall not exceed five dollars ($5.00) a week. Such transfers of funds shall be made from the Special Auxiliary Fund created by § 711a of this title, and when there are no other funds available for such purposes.
History —June 21, 1956, No. 74, p. 328, added as § 21 on June 28, 1963, No. 93, p. 271, § 4; June 24, 1964, No. 71, p. 213, § 2; May 13, 1968, No. 41, p. 60, §§ 1, 2; June 24, 1971, No. 85, p. 257, § 11; July 30, 1990, No. 22, p. 95; Aug. 17, 1990, No. 42, p. 171, § 3.