Ariz. Admin. Code § R6-3-53500 - Wages (refusal of Work 500)

A. Prior earnings, comparison with (Refusal of Work 500.35)

1. Whether a claimant has good cause for refusing an offer of work in his customary occupation based solely on the grounds that the wages offered are less than those earned previously depends on:

a. Prospect of securing the wages he specifies.

b. Length of unemployment.

c. Condition of the labor market in his locality at that time.

2. Prior earnings are those received most recently especially, when the claimant has been receiving those earnings for a substantial period. If the worker's most recent earnings cover a brief period, such earnings need not be considered prior earnings unless they represent his present earning ability.

B. Prevailing rate (Refusal of Work 500.7)

1. No work shall be deemed suitable and benefits shall not be denied to an otherwise eligible individual for refusing to accept new work if the wages of the work offered are substantially less favorable to the individual than those prevailing for similar work in the locality.

2. The key words and phrases are:

a. "Similar work." Is work closely related to the job being considered and generally recognized as of the same type. Actual comparison of jobs must be made on the basis of the similarity of the work done without regard to title; that is, the similarity of the operations performed, the skill, ability, knowledge required, and the responsibilities involved. Other factors such as hours of employment, permanency of the work, unionization, vacation, sick, and retirement benefits are conditions of work and should be considered only after the question of what is similar work is decided.

b. "Locality." Conditions offered are to be compared with the conditions of similar work in the locality where the work is to be done. In establishing the competitive labor market locality for an occupation, the dominant considerations are the location of the establishments employing similar services; the area from which workers are normally drawn to supply the needs of these establishments; the commuting practices and ease of transportation in the locality; and the customary migration pattern of the workers in the occupation.

c. "Wages." The customary practice of the trade in the area should be used in determining what constitutes wages. The comparison of wage rates alone, however, is not always sufficient to determine if the wages offered a claimant is substantially less favorable than those prevailing for similar work in the locality. Earnings are frequently affected not only by the wage rate and hours of work, but also by the method of payment, the overtime practices, and various extra bonuses and premiums. Only by taking all of the factors which would affect the claimant's earnings, and those of most workers in similar employment in the locality into consideration can it be determined whether the wages offered are less favorable than those prevailing.

d. "Prevailing." The prevailing wage means the most outstanding or commonly paid rate for the largest number of workers enjoyed in similar work in a locality. The model rate has generally been recognized as that prevailing where less than a majority, but as many as 40% of the workers in similar work are paid at the same rate. Therefore, when there is a single rate at which at least 40% of the workers in similar work are employed, that rate is prevailing. In the event there is no 40% mode, the prevailing rate may be determined by using the average or median wage as the standard for comparison, based on the best information available. The prevailing starting rate should be obtained in the same manner as the prevailing rate. The mode, must of necessity, be used in determining the prevailing conditions of work when fringe benefits are involved, since fringe benefits cannot be measured in numbers and cannot be averaged.

e. "Substantially less favorable." The meaning of the phrase "substantially less favorable to the individual" cannot be determined in terms of any fixed percent age, amount, or degree of difference. Both the actual conditions of the work in question and the extent of the difference, as well as its effect on the worker must be considered. The basis for comparison in each case insofar as they can be determined is the conditions under which the greatest number of workers in the particular occupation are employed in the locality. If the conditions of the offered work and those prevailing are known, it is usually easy to determine whether the difference is of a material or substantial nature or is of no real consequence. However, in borderline cases, where it is not clear whether the difference is material, the claimant should not be subject to a disqualification for refusing work unless it is reasonably certain that the conditions on the job are not substantially less favorable than those prevailing for similar work in the locality.

Notes

Ariz. Admin. Code § R6-3-53500

Former rule number - Refusal of Work 500. - 500.7. Former rule repealed, new Section R6-3-53500 adopted effective January 24, 1977 (Supp. 77-1).