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Amendments to State Unemployment Insurance Laws U.S. DEPARTMENT OF LABOR Employment and Training Administration Washington, D.C. 20210 REPORT ON STATE LEGISLATION REPORT NO. 3
Amendments to State Unemployment Insurance Laws
Benefits Changes the amount an individual may elect to deduct and withhold from benefits for federal income tax from 15 percent to an amount equal to the amount allowable under federal law.
Financing Changes the reference from the Standard Industrial Classification to the North American Industrial Classification System with respect to variation from standard rates.
Coverage Excludes from employment services provided by an owner-operator of a truck or truck tractor while leased to a motor carrier, as long as that employment is not subject to federal unemployment tax.
Coverage Amends the definition of "employing unit" and "employment" to include service performed for an Indian tribe, resulting in unemployment insurance coverage of such services. Allows an Indian tribe to either pay contributions or to elect to make reimbursements. May require an Indian tribe that elects to make reimbursements to execute and file a surety bond or deposit money or securities. Under certain circumstances, terminates the reimbursement election and coverage when a tribe fails to make the required payments; provides for reinstatement when failure is corrected.
Benefits Adds definition of domestic violence and provides what abuse includes. Provides for non disqualification for discharge provided the individual establishes that the reason for the discharge was due to circumstances resulting from domestic violence. Provides for non disqualification for voluntary leaving work provided the individual establishes that the voluntary leaving was due to domestic violence. Financing Provides that benefits paid to an individual who voluntarily quit due to domestic violence are charged to the solvency account.
Administrative Establishes a special legislative task force to investigate and study (1) the unemployment insurance system, including, the taxable wage base and its effect of the trust fund, fraud, the rate trigger mechanism and contribution rate schedules, and other matters related to the unemployment insurance system; and (2) employment and training issues and their impact on the unemployment rate and trust fund. Requires the task force to conduct an investigation, hold hearings and receive testimony from the public, including employer and employee organizations, and the deputy director of the employment and training division for both studies. Requires the task force to report the results and any recommendations with drafts of legislation to carry its recommendations into effect, by filing the same with the senate and house clerks on or before November 30, 2002.
Benefits Provides that an individual on a voluntary leave of absence is not eligible for benefits for the duration of the leave of absence. Provides that an individual who quits because of domestic abuse is not disqualified from benefits under certain conditions. Provides that an individual who without good cause, fails to affirmatively request an additional job assignment after completion of a temporary job assignment from a staffing service employer is considered to have quit employment under certain conditions. Coverage Provides that services performed for an Indian tribe are considered to be in employment, resulting in unemployment insurance coverage of such services-effective retroactive to December 31, 2000. Allows an Indian tribe to either pay contributions or to elect to make reimbursements. Under certain circumstances, terminates the reimbursement election when a tribe fails to make the required payments. Provides that an Indian tribe whose election is terminated becomes a taxpaying employer and is assigned the new employer tax rate until qualified for a rate based on experience.
Administration Requires the Department of Labor and Industry to report to the legislature on the unemployment benefits applied for and granted under the domestic violence provision. The report must include information on applicant demographics and benefit costs. Benefits Provides that an individual who is otherwise eligible for benefits may not be denied benefits because the individual left work or was discharged because of circumstances resulting from the individual or a child of the individual being a victim of domestic violence, or due to an individual's attempt to protect themselves or their child from domestic abuse. Specifies the conditions under which an individual must be treated as a victim of domestic violence. Limits the duration of these benefits to 10 weeks within a 12-month period. Terminates this provision July 1, 2003. Financing Non charges employers for the payment of unemployment benefits to an individual who left work due to circumstances stemming from domestic violence.
Coverage Amends the definition of "employing unit" to include service performed for an Indian tribe, resulting in UI coverage of such services. Allows an Indian tribe to either pay contributions or to elect to make reimbursements. Under certain conditions, terminates the reimbursement election and coverage when a tribe fails to make the required payments.
Coverage Narrows exclusion from employment for real estate agents to "qualified" agents as defined in 26 U.S.C. 3508, meaning those whose remuneration is substantially all directly related to sales or other output and who, by written contract, are not employees. The former exclusion applied to all agents licensed under State law. Adds an exclusion from employment for insurance salespeople paid solely by commission and without a guarantee of minimum earnings.
Administration Eliminates language authorizing the Department of Labor to utilize a three-member tribunal to hear UI appeals; provides that the UI appeal tribunal will in each case consist of an administrative law judge. Adds provisions concerning the independence of appeal tribunals from the State Department of Labor in making decisions about a claimant's eligibility for UI. Provides that an employer appeal concerning the rate of combined unemployment tax or amount due shall be to a UI appeal tribunal, rather than to the Commissioner of Labor. Permits the Commissioner of Labor to appeal the appeal tribunal's decision regarding an employer's rate. Specifies that fraud prosecutions involving receipt of UI benefits may be brought in any county where any part of the crime was committed, including the county in which the person received the benefits. Benefits Clarifies that employer-provided supplemental UI benefits are not wages for unemployment benefit or tax purposes and are not deductible from State-provided UI. This ensures that employees are not disqualified from receiving State-provided UI and do not have State-provided UI reduced while receiving supplemental UI. Coverage Amends the definition of "employer" and "employment" to include service performed for an Indian tribe, resulting in UI coverage of such services. Allows an Indian tribe to either pay contributions or to elect to make reimbursements. Requires an Indian tribe that elects to make reimbursements to file a surety bond or deposit money or securities on the same basis as other employers with the same election option. Under certain conditions, terminates the reimbursement election and coverage when a tribe fails to make the required payments.
Coverage Amends the definition of "employer" and "employment" to include service performed for an Indian tribe, resulting in UI coverage of such services. Allows an Indian tribe to either pay contributions or to elect to make reimbursements for regular benefits and all of extended benefits. Under certain conditions, suspends the reimbursement election when a tribe fails to make the required payments; provides for reinstatement when failure is corrected.
Administration Clarifies that an employee leasing firm (or professional employer organization) and a client company are both responsible for meeting the requirements of the state UI law.
Coverage Amends the definition of "employer" and "employment" to include service performed for an Indian tribe, resulting in UI coverage of such services. Allows an Indian tribe to either pay contributions or to elect to make reimbursements. Under certain conditions, terminates the reimbursement election and coverage when a tribe fails to make the required payments; provides for reinstatement when failure is corrected.
Coverage Amends the definition of "employer" and "employment" to include service performed for an Indian tribe, resulting in unemployment insurance coverage of such services. Allows an Indian tribe to either pay contributions or to elect to make reimbursements. Under certain conditions, terminates the reimbursement election and coverage when a tribe fails to make the required payments; provides for reinstatement when failure is corrected. Requires extended benefits not reimbursed by the federal government to be financed by the Indian tribe. Requires a refund to the Indian tribe employing unit of any credit balance in the account when the reimbursement method is changed to contributions or upon termination of coverage. (raises issue.)
Financing Provides for noncharging employer's account if the discharge of the claimant was solely for a bona fide inability to do the work for which he was hired but only where the claimant's period of employment was 100 days or less. Eliminates noncharging provisions related to hiring pursuant to a job order placed with a local office of the Commission and the Work First Program. Benefits (Effective September 1, 2001) Eliminates the age limit for a minor child under the undue family hardship provision and provides that undue family hardship arises when an individual is unable to accept a particular shift because the individual is unable to obtain care for any disabled member of that individual's immediate family. Defines "immediate family" as an individual's wife, husband, mother, father, brother, sister, son, daughter, grandmother, grandfather, grandson, granddaughter, whether the relationship is a biological, step-, half-, or in-law relationship.
Administration Eliminates the language that would allow certain but not all employers of specific domestic service employees to file reports annually. (Resolves pending issue.)
Financing Provides that a business entity that has a single owner and is disregarded as an entity separate from its owner for federal tax purposes is deemed to be the same employing unit as its owner for unemployment compensation tax purposes. Applies to tax years beginning on or after January 1, 2002.
Benefits Provides that an individual may not be disqualified from unemployment benefits if the individual is a victim of domestic violence and certain conditions are met.
Benefits Requires the Employment Department to provide unemployment insurance applicants with a JOBS Plus Program brochure at the time of application. Requires the Employment Department to refer unemployment insurance recipients:
Establishes the time period limitations for recipient's participation in JOBS PLUS Program. Provides reimbursement to employers participating in the JOBS PLUS Program by providing subsidized employment. Establishes that the director may refer claimants to JOBS PLUS Program jobs for which the claimant does not have adequate skills or experience when such job is likely to result in an upgrade in the claimant's skills and experience. Assigns the Employment Department, as appropriate, certain responsibilities in connection with the JOBS PLUS Program. Removes the Adult and Family Services Division from connection with the JOBS PLUS Program.
Financing Establishes the Oregon JOBS Plus Unemployment Wage Fund; provides that all moneys in the fund are appropriated continuously to the Employment Department for the payment of wages and wage-related and administrative expenses of participants in the JOBS Plus Program who are otherwise eligible to receive unemployment insurance benefits. Imposes a tax on employers, except employers at a 5.4% rate, of 0.07% for the first two quarters of 2002 and 2003 for purposes of funding the JOBS Plus Unemployment Wage Fund. Imposes a tax on employers, except employers at a 5.4% rate, of 0.03% for the first quarter of 2003 for purposes of funding the Wage Security Fund. Makes corresponding reduction in UI tax rates for these quarters.
Financing Imposes a tax on employers, except employers at a 5.4% rate, of 0.03% for the first quarter of every odd-numbered year for purposes of funding the Wage Security Fund. Makes corresponding reduction in UI tax rates for these quarters.
Coverage Amends the definition of "employer," "employment," and "employing unit" to include service performed for an Indian tribe, resulting in unemployment insurance coverage of such services. Allows an Indian tribe to either pay contributions or to elect to make reimbursements for regular benefits and all extended benefits. Under certain conditions, terminates the reimbursement election and coverage when a tribe fails to make the required payments; provides for reinstatement when failure is corrected.
Coverage Amends the definition of "employer" and "employment" to include service performed for an Indian tribe, resulting in unemployment insurance coverage of such services. Allows an Indian tribe to either pay contributions or to elect to make reimbursements. Under certain conditions, terminates the reimbursement election and coverage when a tribe fails to make the required payments; provides for reinstatement when failure is corrected. May require an Indian tribe that elects to make reimbursements to execute and file a surety bond or deposit money or securities. Extended benefits not reimbursed by the federal government will be financed in their entirety by the Indian tribe.
Administration Changes the employer rate assignment provision to reflect the shift from Standard Industrial Classification system to North American Industry Classification System.
Benefits Increases the maximum weekly benefit amount from $255 to $275 on or after August 5, 2001.
Financing Decreases the total number of premium rate tables from 10 to 6. Requires variations from the standard rate of premiums for certain employers be determined, beginning July 1, 2001 by the reserve ratio of each employer in accordance with the premium rate tables 1-6, depending on the balance in the unemployment compensation trust fund. Under the most favorable table, rates range from 0.0% to 10.0%. Under the least favorable table, rates range from 0.5% to 10.0%.
Benefits Amends provision concerning the treatment of back pay awards to provide that for unemployment insurance benefit purposes, the amount of back pay constitutes wages paid in the period for which it was awarded. Requires employers who are a party to a back pay award settlement to report whether such settlement was arrived at by subtracting the amount of unemployment benefits received. Establishes the requirements for payments to the unemployment fund by such employers in the event the settlement was or was not reduced by the amount of unemployment benefits received.
Benefits Changes the computation of the maximum weekly benefit amount from a computation based on the change in the1976 average weekly wage to 47.6 percent of the preceding year's annual average weekly wage. Changes the computation of the minimum weekly benefit amount from a computation based on the change in the1976 average weekly wage to 7.6 percent of the preceding year's annual average weekly wage. Requires a benefit amount not a multiple of $1 to be increased to the next multiple of $1.
Administration Provides that garnishment for the purposes of spousal maintenance does not apply to unemployment insurance benefit payments.
Coverage Excludes from employment services performed by an individual who is blind while the individual is in training at a sheltered workshop operated by a charitable organization under a rehabilitation program that includes:
Includes as employment service performed by an individual who is blind and who, after training, is working for a sheltered workshop operated by a charitable organization:
Financing Changes the definition of manual from the Standard Industrial Classification Manual to the North American Industrial Classification System Manual.
Financing Permits certain employers of domestic workers to annually report quarterly wages and pay contributions. Requires such employers to make the reporting and paying election not later than December 31 of the year before the first calendar year reported; an election by such employer is not revocable by the employer before the second anniversary of the date of the election. Requires contributions to be reported and paid by January 31 with respect to wages for employment paid in the preceding calendar year. Requires the commission to estimate the rate taking effect during the preceding calendar year subject to correction when a final computation is made. Requires those electing employers to file, on the request of the commission, reports at other times as necessary to adjudicate a claim or to establish wage credits. Requires the computation of any penalty or interest imposed on the elected employer in the same manner as for other types of employment. Provides that in computing the benefit ratio for employers of domestic workers only and who have elected to file reports annually, only taxable wages for which contributions have been paid to the commission on or before January 31 may be used. Provides that an employer who reports annually has the same computation date as other employers, but the final computation of a rate for the employer may not occur before February 1 of the year following the computation date.
Financing Provides a special unemployment compensation tax rate for employers engaged in agriculture classified as crop preparation services for market. Requires such employers to pay a contribution at the lowest of the following rates:
Eliminates the requirement to notify the Commission of an election.
Coverage Provides that an Indian tribe includes a tribal unit, a subdivision or subsidiary of an Indian tribe, and a business wholly owned by an Indian tribe. Amends the definition of employment to include service performed for an Indian tribe, resulting in unemployment insurance coverage of such services and to exclude coverage of certain services. Allows an Indian tribe to either pay contributions or to elect to make reimbursements. Under certain circumstances, terminates the reimbursement election and may terminate coverage when a tribe fails to make the required payments; provides for reinstatement when failure is corrected. Requires extended benefits not reimbursed by the Federal government to be financed 100 percent by Indian tribe.
Administration Makes the Government Code Chapter applicable unless and to the extent:
Administration Eliminates the requirement for employers to report worker's average weekly hours worked during the quarter, effective with the calendar quarter ending March 31, 2001. Provides that an individual is not deemed to be "partially unemployed" if the individual performed less than full-time work only because there was a holiday in that week for which the individual was entitled to holiday pay.
Coverage Amends the definition of "employment" and "employing unit" to include service performed for an Indian tribe, resulting in unemployment insurance coverage of such services. Allows an Indian tribe to either pay contributions or to elect to make reimbursements. Under certain conditions, terminates the reimbursement election and coverage when a tribe fails to make the required payments; provides for reinstatement when failure is corrected. May require an Indian tribe that elects to make reimbursement to execute and file a surety bond or deposit money or securities. Requires extended benefits not reimbursed by the federal government to be financed in their entirety by the Indian tribe.
Benefits Requires that eligible employees be paid benefits at the new weekly benefit rates for total unemployment which commences on or after December 30, 2001 and before December 29, 2002--the minimum weekly benefit rate is $48 and the maximum benefit rate is $324; and for total unemployment which commences on or after December 29, 2002-the minimum benefit rate is $49 and the maximum benefit rate is $329. Extends through 2002 the work search provision by changing the period that an individual must conduct a reasonable search for suitable work from a 104-week period to a 156-week period beginning on January 2, 2000. Requires the department, by rule, to require claimants to conduct a reasonable search for suitable work during the 156-week period, and, by rule, prescribe standards for the search to be considered reasonable. Amends the pension provision to specify that a pension payment received under the federal Social Security Act will not reduce the weekly benefit amount. (First applies to weeks of unemployment beginning on January 5, 2003.) Coverage (First applies with respect to employment after December 31, 2001.) The definition of "employer" and "employment" includes service performed for an Indian tribe, resulting in unemployment insurance coverage of such services. An Indian tribe can either pay contributions or elect to make reimbursement financing. An Indian tribe that elects to make reimbursement financing must file assurance of reimbursement for the election to be valid; failure to file such assurance terminates pending election. An Indian tribe may terminate the election and pay a contribution rate of 2.7% for 3 years; under certain conditions, may reelect reimbursement financing. Under certain conditions, the Department terminates the reimbursement financing and the assurance when the tribe fails to make the required payments and terminates any pending election that fails to meet the requirements to file an assurance of reimbursement; under certain conditions, may reelect reimbursement financing. The Department may consider the Indian tribe not to be an employer and may consider services performed for the tribe not to be employment for failure to make required payments. Financing Requires benefits to be charged to the funds balancing account whenever an employee fails without good cause to return to work with a former employer who recalls the employee within 52 weeks after last worked for that employer. (First applies with respect to determinations issued on December 30, 2001.) Changes one of the conditions that must be satisfied for a transferee to be deemed a successor to the transfer included 100% of the transferor's total business on the date of the transfer. (First applies to partial transfers of businesses occurring after December 31, 2001 and to transfers of businesses of which the department receives notice after January 31, 2002.) Provides that if a transfer included less than 100% of the transferor's total business on the date of the transfer, the department is required to allocate the transferor's experience to the successor in proportion to the payroll assignable to the transferred business and the liability of the successor will be proportioned to the extent of the transferred business. (First applies to partial transfers of businesses occurring after December 31, 2001 and to transfers of businesses of which the department receives notice after January 31, 2002.) Extends through 2004 the administrative assessment on contributing employers. Requires that penalties also be paid and credited to the administrative account. Amends the UI law to include that employers are required to pay a tardy filing fee also for certain reimbursements or payment for forfeitures or other penalties. Amends the provisions regarding levies for delinquent contributions for benefit overpayments: to clarify that contribution also includes certain reimbursements, fees and certain payments due for a forfeiture imposed on an employment unit or other penalty assessed by the department; to clarify that debt also means repayment of a benefit overpayment, or any liability of a 3rd party for failure to surrender to the department property or rights to property subject to levy after certain proceeding to determine that liability; and to clarify that debtor means a person who owes the department a debt. Provides that in the case of forfeitures imposed upon an employing unit, an individual debtor is entitled to an exemption from levy on wages.
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U.S.
Department of Labor
Employment
& Training Administration
