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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
November 2005
COLORADO |
HB 1208 (CH 156) |
ENACTED and EFFECTIVE May 25, 2005 |
Financing |
Establishes that if the ratio of the fund balance to total wages on June 30, 2005, equals
or exceeds the June 30, 2004, ratio, the incremental increase in the solvency tax surcharge will apply, and
the amount of the increase will be subtracted from the rated employer's standard or computed rate for calendar
year 2006. |
DELAWARE |
SB 130 (CH 177) |
ENACTED July 12, 2005 EFFECTIVE January 1, 2006 |
Financing |
Amends state law to include SUTA dumping prevention provisions which:
- mandate transfer of experience from one employer to another when there is substantially common ownership,
management, or control; apply to both total and partial transfers;
- prohibit transfer of experience if a person becomes an employer by acquiring an existing business and if
the purpose of the acquisition is to obtain a lower contribution rate; apply to persons, who prior to the
acquisition of the business, (a) had no employees and (b) had some employees but not enough to be an employer
for state law purposes;
- provide meaningful civil and criminal penalties for knowingly violating or attempting to violate the law's
requirements, and for knowingly advising to violate the law; and
- establish procedures to identify the transfer or acquisition of a business for purposes of the law.
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HAWAII |
SB 817 (Act No. 114) |
ENACTED AND EFFECTIVE June 9, 2005 |
Financing |
Amends state law to include SUTA dumping prevention provisions which:
- mandate transfer of experience from one employer to another when there is substantially common ownership,
management, or control; apply to both total and partial transfers;
- prohibit transfer of experience if a person becomes an employer by acquiring an existing business and if
the purpose of the acquisition is to obtain a lower contribution rate; apply to persons, who prior to the
acquisition of the business, (a) had no employees and (b) had some employees but not enough to be an employer
for state law purposes;
- provide meaningful civil and criminal penalties for knowingly violating or attempting to violate the law's
requirements, and for knowingly advising to violate the law; and
- establish procedures to identify the transfer or acquisition of a business for purposes of the law.
Changes the general penalty for any person who willfully violates the law or any order, rule, or regulation and
the penalty for employing units or any other persons who make a false statement or representation or failure to
disclose a material fact, or failure to establish, maintain, or preserve records to require they be charged
with a misdemeanor, and subject to a fine of not more than $10,000. Formally the penalties required a fine of
not less than $20 nor more than $200 or imprisoned not more than 60 days or both.
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IDAHO |
HB 04 (CH 5) |
ENACTED February 7, 2005 EFFECTIVE July 1, 2005 or as otherwise noted |
Appeals |
Provides, effective February 7, 2005, and retroactive to January 1, 2005, that a determination
of chargeability of a covered employer's experience rating account will become final unless, an appeal is filed
within 14 days after notice. |
Coverage |
Excludes from the definition of "employment" service performed by an individual paid less than
$50 per calendar quarter for work not in the course of the employer's trade or business, and who is not regularly
employed by such employer to perform such service; provides that an individual will be deemed to be regularly
employed by an employer during a calendar quarter only if:
- On each of some 24 days during such quarter such individual performs for such employer for some portion of the
day service not in the course of the employer's trade or business; or
- Such individual was so employed by such employer in the performance of such service during the preceding
calendar quarter.
Requires each covered employer to register with the Director within 6 months of becoming a covered employer.
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Financing |
Excludes deficit employers who have been assigned a taxable wage rate from deficit rate class
six from paying a reserve tax.
Defines "unencumbered balance in the training fund;" provides for the transfer of the excess amount over $6
million in any month from the unencumbered balance in the training fund to the employment security reserve fund.
Calculates, effective February 7, 2005, and retroactive to January 1, 2005, the taxable wage rate for calendar
years 2005 and 2006 for covered employers, except cost reimbursement employers, which must be determined prior
to December 31 of each year as follows:
- For calendar year 2005, the taxable wage rate will be determined using a base tax rate of 1.50 percent;
- For calendar year 2006, the taxable wage rate will be determined using a base tax rate of 1.67 percent unless,
at any time prior to September 30, 2005, the actual balance in the employment security fund, is 50 percent or
less than the actual balance in the reserve fund, in which case the taxable wage rate will be determined using a
base tax rate calculated in accordance with the calculation provided in law.
Revises, effective February 7, 2005, and retroactive to January 1, 2005, the formula to calculate "an average high
cost ratio;" revises the formula to calculate the "average high cost multiple" (AHCM); provides how to compute the
"benefit cost rate;" revises the calculation of the "fund balance ratio;" provides a formula for calculating the
"base tax rate;" provides a formula for calculating the "taxable wage rate" effective the following calendar year
for all covered eligible, standard-rated, and deficit employers (except cost reimbursement employers); provides the
criteria for use in assigning taxable wage rates and contribution rates; provides that the minimum taxable wage
rates range from 0.180 percent to 3.200 percent for eligible employers, from 1.000 percent to 3.360 percent for
standard-rated employers, and 1.080 percent to 6.800 percent for deficit employers.
Provides, effective February 7, 2005, and retroactive to January 1, 2005, that when a transferred experience
rating account includes amounts due from the employer, both the predecessor employer and the successor employer
shall be jointly and severally liable for those amounts.
Increases the penalty from 2 percent to 4 percent or from $10 to $20, whichever is larger, for each month or
fraction thereof until paid for any amounts due that are unpaid on or before the due date.
Provides that jeopardy assessments including penalty and interest are subject to immediate seizure, as well as
through any other lawful collection procedures and will become conclusive and binding upon the employer unless,
within 14 days after mailing or personal delivery an appeal is filed to the department.
Changes the rate of interest on the amount secured by a lien to 1 1/2 times the rate computed for judgments in
effect on January 1 of the year the lien is filed. |
Monetary Eligibility |
Changes the eligibility conditions of a claimant to provide that during the whole of any
week with respect to which he claims benefits or credit to his waiting period, the claimant was:
- Able to work, available for suitable work, and seeking work; provided, however, that no claimant shall be
considered ineligible for failure to comply with the provisions of this subsection if: (i) such failure is due
to the claimant's illness or disability which occurs after he has filed a claim and during such illness or
disability, the claimant does not refuse or miss suitable work that would have provided wages greater than 1/2
of the claimant's weekly benefit amount; or (ii) such failure is due to compelling personal circumstance,
provided that such failure does not exceed a minor portion of the claimant's work week and during which time the
claimant does not refuse or miss suitable work that would have provided wages greater than 1/2 of the claimant's
weekly benefit amount; and
- Living in a state, territory, or country that is included in the interstate benefit payment plan or that is
a party to an agreement with the U.S. or the director with respect to unemployment insurance.
Specifies that the claimant will also be ineligible for waiting week credit or benefits for any week in which he
owes an overpayment, civil penalty, or interest resulting from a determination that he willfully made a false
statement or willfully failed to report a material fact.
Changes from 12 to 14 times the weekly benefit amount a claimant needs to have received in wages to requalify for
eligibility after being ineligible for voluntarily quitting, discharged for misconduct, failure to apply for or
accept suitable work, for refusing to accept new work, or for leaving suitable employment to attend job training.
Changes the date the minimum qualifying amount of wages for the benefit formula is determined from July 1 to
January 1.
Changes the date the state average weekly wage paid by employers for the preceding calendar year is determined
from prior to June 30 to prior to December 31 of each year, for calendar years 2006 and thereafter.
Establishes that for calendar years 2006 and thereafter, prior to December 31 of each year, the director will
determine the maximum weekly benefit amount to be effective for new claims filed in the first full week of the
following January and filed thereafter until a new maximum weekly benefit amount becomes effective.
Establishes that for calendar years 2006 and thereafter, prior to December 31 of each year, the director will
determine the maximum weekly benefit amount by using a percentage of the state average weekly wage paid by covered
employers for the preceding calendar year and the base tax rate that has been calculated for the following calendar
year as provided in the new Maximum Weekly Benefit Amount Index.
Provides that effective for new claims filed in the first full week of July 2005, and thereafter until the first
full week of the following January, the maximum weekly benefit amount will be 57 percent (was 60 percent) of the
state average weekly wage paid by covered employers for the preceding calendar year; provides that prior to
December 31, 2005, the director will determine, by using the new Maximum Weekly Benefit Amount Index, the maximum
weekly benefit amount to be effective for new claims filed in the first full week of the following January and
thereafter until a new maximum weekly benefit amount becomes effective.
Modifies the duration of benefits table, however, the duration of benefits remain the same ranging from 10-26 weeks.
Defines "severance pay;" provides that severance pay will be deemed wages, including wages payable for less than
full-time work, even if the claimant was required to sign a release of claims as a condition of receiving the pay
from the employer.
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Overpayments |
Establishes civil monetary penalties that the director must assess for each determination in
which the claimant is found to have made a false statement, misrepresentation, or failed to report a material fact
to the department that results in an overpayment as follows:
- 25 percent of any resulting overpayment for the first determination;
- 50 percent of any resulting overpayment for the second determination; and
- 100 percent of any resulting overpayment for the third and any subsequent determination.
Provides that any overpayment, civil penalty and/or interest which has not been repaid may, in addition to or
alternatively to any other method of collection, including the creation of a lien, be collected with interest
at the rate required; allows the director to also file a civil action which must commence within 5 years from
the date of the final determination establishing liability to repay; provides that any judgment obtained must,
upon compliance with specific requirements, become a lien.
Provides that overpayments, other than those resulting from a false statement, misrepresentation, or failure to
report a material fact by the claimant, not recovered within 5 years from the date of the final determination
establishing liability to repay may be deemed uncollectible.
Provides that overpayments resulting from a false statement, misrepresentation, or failure to report a material
fact by the claimant which have not been recovered within 8 years from the date of the final determination
establishing liability to repay may be deemed uncollectible.
Eliminates the requirement to deduct from future benefits payable without regard to any statute of limitation
such overpayments that have not been repaid or collected that resulted from a false statement, misrepresentation,
or failure to report a material fact by the claimant.
Allows the director to waive the requirement to repay an overpayment, other than one resulting from a false
statement, misrepresentation, or failure to report a material fact by the claimant, and interest if the benefit
payments were made solely as a result of department error or inadvertence and made to a claimant who could not
reasonably have been expected to recognize the error or such payments were made solely as a result of an employer
misreporting wages earned in a claimant's base period and made to a claimant who could not reasonably have been
expected to recognize an error in the wages reported.
Allows the director, in his sole discretion, to also compromise a civil monetary penalty and or interest
assessed on overpayments resulting from making a false statement, misrepresentation, or failure to report a
material fact. |
ILLINOIS |
SB 411 (P.A. 94-301) |
ENACTED and EFFECTIVE July 21, 2005 |
Financing |
Amends state law to include SUTA dumping prevention provisions which:
- mandate transfer of experience from one employer to another when there is substantially common ownership,
management, or control; apply to both total and partial transfers;
- prohibit transfer of experience if a person becomes an employer by acquiring an existing business and if
the purpose of the acquisition is to obtain a lower contribution rate; apply to persons, who prior to the
acquisition of the business, (a) had no employees and (b) had some employees but not enough to be an employer
for state law purposes;
- provide meaningful civil and criminal penalties for knowingly violating or attempting to violate the law's
requirements, and for knowingly advising to violate the law; and
- establish procedures to identify the transfer or acquisition of a business for purposes of the law.
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ILLINOIS |
SB 1770 (P.A. 94-232) |
ENACTED July 14, 2005 EFFECTIVE July 1, 2005 |
Financing |
Transfers, on or after July 1, 2005, all remaining funds in the Employment Security Administrative
Fund to the clearing account, after which the fund is abolished; repeals the section of the law regarding the
Employment Security Administrative Fund January 1, 2006.
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LOUISIANA |
HB 443 (Act No. 234) |
ENACTED June 29, 2005 EFFECTIVE January 1, 2006 |
Financing |
Amends state law to include SUTA dumping prevention provisions which:
- mandate transfer of experience from one employer to another when there is substantially common ownership,
management, or control; apply to both total and partial transfers;
- prohibit transfer of experience if a person becomes an employer by acquiring an existing business and if
the purpose of the acquisition is to obtain a lower contribution rate; apply to persons, who prior to the
acquisition of the business,
- (a) had no employees and (b) had some employees but not enough to be an employer for state law purposes;
- provide meaningful civil and criminal penalties for knowingly violating or attempting to violate the
law's requirements, and for knowingly advising to violate the law; and
- establish procedures to identify the transfer or acquisition of a business for purposes of the law.
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MAINE |
HB 233 (P.L. No. 454) |
ENACTED and EFFECTIVE June 24, 2005 |
Administration |
Requires the agency to develop an education and training pilot program for unemployed
part-time workers by October 1, 2005; requires a report with recommendations and legislation to make
permanent 'the program' for unemployed part-time workers by January 15, 2006.
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Nonmonetary Eligibility |
Extends the application and eligibility of unemployed part-time workers from September 30,
2005, to September 30, 2008, until the worker's benefits are exhausted under these applications. |
MARYLAND |
HB 1567 (CH 610) |
ENACTED May 26, 2005 EFFECTIVE July 1, 2005 |
Financing |
Amends state law to include SUTA dumping prevention provisions which:
- mandate transfer of experience from one employer to another when there is substantially common
ownership, management, or control; apply to both total and partial transfers;
- prohibit transfer of experience if a person becomes an employer by acquiring an existing business
and if the purpose of the acquisition is to obtain a lower contribution rate; apply to persons, who prior
to the acquisition of the business, (a) had no employees and (b) had some employees but not enough to be
an employer for state law purposes;
- provide meaningful civil and criminal penalties for knowingly violating or attempting to violate the
law's requirements, and for knowingly advising to violate the law; and
- establish procedures to identify the transfer or acquisition of a business for purposes of the law.
Applicable to the assignment of contribution rates effective on or after January 1, 2006.
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MARYLAND |
SB 719 (CH 506) |
ENACTED May 26, 2005 EFFECTIVE October 1, 2005 |
Coverage |
Excludes from coverage, under certain conditions, work performed by an owner operator of
a Class F tractor vehicle or Class E truck vehicle. |
MISSOURI |
HB 500 |
ENACTED July 6, 2005 EFFECTIVE January 1, 2006 |
Financing |
Amends state law to include SUTA dumping prevention provisions which:
- mandate transfer of experience from one employer to another when there is substantially common ownership,
management, or control; apply to both total and partial transfers;
- prohibit transfer of experience if a person becomes an employer by acquiring an existing business and if
the purpose of the acquisition is to obtain a lower contribution rate; apply to persons, who prior to the
acquisition of the business, (a) had no employees and (b) had some employees but not enough to be an employer
for state law purposes;
- provide meaningful civil and criminal penalties for knowingly violating or attempting to violate the law's
requirements, and for knowingly advising to violate the law; and
- establish procedures to identify the transfer or acquisition of a business for purposes of the law.
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NEVADA |
AB 502 (CH 129) |
ENACTED and EFFECTIVE May 19, 2005 |
Appeals |
Extends the time period for employers and claimants to file appeals to the Appeal Tribunal,
the Board of Review, and judicial review from 10 to 11 days after the mailing of the notice. |
Financing |
Amends state law (effective January 1, 2006) to include SUTA dumping prevention provisions which:
- mandate transfer of experience from one employer to another when there is substantially common ownership,
management, or control; apply to both total and partial transfers;
- prohibit transfer of experience if a person becomes an employer by acquiring an existing business and if the
purpose of the acquisition is to obtain a lower contribution rate; apply to persons, who prior to the acquisition
of the business, (a) had no employees and (b) had some employees but not enough to be an employer for state law
purposes;
- provide meaningful civil and criminal penalties for knowingly violating or attempting to violate the law's
requirements, and for knowingly advising to violate the law; and
- establish procedures to identify the transfer or acquisition of a business for purposes of the law.
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NEW JERSEY |
SB 2264 (CH 103) |
ENACTED June 27, 2005 EFFECTIVE August 26, 2005 |
Nonmonetary Eligibility |
Prohibits disqualification if unemployment is due to a stoppage of work because of a labor
dispute at a place of work at which the individual is or was last employed if it is shown that the individual
has been prevented from working by the employer, even though:
- The individual's recognized or certified majority representative has directed the employees in the individual's
collective bargaining unit to work under the preexisting terms and conditions of employment; and
- The employees had not engaged in a strike immediately before being prevented from working.
Applies to claims for unemployment commencing on or after December 1, 2004.
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NEW YORK |
SB 5748 (CH 391) |
ENACTED August 2, 2005 EFFECTIVE January 1, 2006 |
Financing |
Amends state law to include SUTA dumping prevention provisions which:
- mandate transfer of experience from one employer to another when there is substantially common
ownership, management, or control; apply to both total and partial transfers;
- prohibit transfer of experience if a person becomes an employer by acquiring an existing business
and if the purpose of the acquisition is to obtain a lower contribution rate; apply to persons, who prior
to the acquisition of the business, (a) had no employees and (b) had some employees but not enough to be
an employer for state law purposes;
- provide meaningful civil and criminal penalties for knowingly violating or attempting to violate the
law's requirements, and for knowingly advising to violate the law; and
- establish procedures to identify the transfer or acquisition of a business for purposes of the law.
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OREGON |
HB 2125 (CH 181) |
ENACTED and EFFECTIVE June 8, 2005 |
Financing |
Applies the noncharging of benefits provisions to contributing Indian tribes, except that
one-half the cost of extended benefits must be charged to contributing Indian tribes.
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OREGON |
HB 2662 (CH 278) |
ENACTED and EFFECTIVE June 20, 2005 |
Nonmonetary Eligibility |
Modifies the domestic violence provision by providing that an individual may not be
disqualified from receiving benefits for voluntarily leaving work, failing to apply for available suitable
work when referred, or failing to accept suitable work when offered without good cause if:
- the individual is a victim or is the parent or guardian of a minor child who is a victim of domestic
violence, stalking, or sexual assault;
- the individual leaves work, fails to apply for available suitable work or fails to accept suitable work
when offered to protect the individual or the minor child from further domestic violence, stalking or sexual
assault that the individual reasonably believes will occur at the workplace or elsewhere; and
- the individual pursues reasonable available alternatives to leaving work, failing to apply for available
suitable work or failing to accept suitable work when offered.
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OREGON |
SB 323 (CH 533) |
ENACTED and EFFECTIVE July 15, 2005 |
Coverage |
Redefines the term "independent contractor" for purposes of the unemployment law.
Excludes from the definition of "employment" services performed by an individual as a stringer, correspondent,
or photographer for print or broadcast media who submits information, stories or pictures by the piece or at a
flat rate to newspapers, special publications, television or radio if the individual is free from direction
and control over the means and manner of providing the services; exemption does not apply to services performed
for a nonprofit employing unit for Oregon, for a political subdivision of Oregon or for an Indian tribe.
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RHODE ISLAND |
HB 5914 (P.L. No. 306) |
SB 697 (P.L. No. 290) |
| ENACTED July 15, 2005 EFFECTIVE January 1, 2006 |
Financing |
Amends state law to include SUTA dumping prevention provisions which:
- mandate transfer of experience from one employer to another when there is substantially common
ownership, management, or control; apply to both total and partial transfers;
- prohibit transfer of experience if a person becomes an employer by acquiring an existing business and
if the purpose of the acquisition is to obtain a lower contribution rate; apply to persons, who prior to
the acquisition of the business, (a) had no employees and (b) had some employees but not enough to be an
employer for state law purposes;
- provide meaningful civil and criminal penalties for knowingly violating or attempting to violate the
law's requirements, and for knowingly advising to violate the law; and
- establish procedures to identify the transfer or acquisition of a business for purposes of the law.
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TEXAS |
HB 1745 (CH 592) |
ENACTED June 17, 2005 EFFECTIVE September 1, 2005 |
Nonmonetary Eligibility |
Specifies that an individual who last worked for a temporary help firm is not considered
unemployed until 3 business days have passed since the last assignment ended.
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TEXAS |
HB 2273 (CH 1104) |
ENACTED June 18, 2005 EFFECTIVE September 1, 2005 |
Monetary Entitlement |
Adjusts the computed weekly benefit amount by rounding down to the nearest multiple of $1.00
if the amount includes 1 to 49 cents, and rounding up if that amount includes 50 to 99 cents.
Limits an increase in the maximum weekly benefit amount to $14 in any year and an increase to $1 for the minimum
weekly benefit amount.
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TEXAS |
HB 3250 (CH 1315) |
ENACTED June 18, 2005 EFFECTIVE September 1, 2005 |
Financing |
Amends state law to include SUTA dumping prevention provisions which:
- mandate transfer of experience from one employer to another when there is substantially common ownership,
management, or control; apply to both total and partial transfers;
- prohibit transfer of experience if a person becomes an employer by acquiring an existing business and if
the purpose of the acquisition is to obtain a lower contribution rate; apply to persons, who prior to the
acquisition of the business, (a) had no employees and (b) had some employees but not enough to be an employer
for state law purposes;
- provide meaningful civil and criminal penalties for knowingly violating or attempting to violate the law's
requirements, and for knowingly advising to violate the law; and
- establish procedures to identify the transfer or acquisition of a business for purposes of the law.
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VERMONT |
HB 71 (Act No. 41) |
ENACTED and EFFECTIVE June 7, 2005 |
Financing |
Amends state law to include SUTA dumping prevention provisions which:
- mandate transfer of experience from one employer to another when there is substantially common
ownership, management, or control; apply to both total and partial transfers;
- prohibit transfer of experience if a person becomes an employer by acquiring an existing business and
if the purpose of the acquisition is to obtain a lower contribution rate; apply to persons, who prior to
the acquisition of the business, (a) had no employees and (b) had some employees but not enough to be an
employer for state law purposes;
- provide meaningful civil and criminal penalties for knowingly violating or attempting to violate the
law's requirements, and for knowingly advising to violate the law; and
- establish procedures to identify the transfer or acquisition of a business for purposes of the law.
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