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. 1
June 2004
ALABAMA | HB 166 (Act No. 110) |
ENACTED and EFFECTIVE April 12, 2004 |
Financing | ||
Extends the 0.06 percent rate reduction applicable to certain employers from March 31, 2004, to March 31, 2006. |
ALABAMA | HB 169 (Act No. 111) |
ENACTED and EFFECTIVE April 12, 2004 |
Financing | ||
Appropriates up to 15 percent of Reed Act monies to administer the unemployment compensation law and public employment offices. | ||
Monetary Entitlement | ||
Increases the weekly maximum benefit amount from $210 to $220, for benefit years beginning on or after July 4, 2004. |
ARIZONA | HB 2440 (CH 251) |
ENACTED May 20, 2004 EFFECTIVE May 20, 2004 or as indicated |
Appeals | ||
With respect to a reconsideration of determination of liability, deletes the requirement for an employing unit to file contribution and wage reports within 30 days of the reconsidered determination in order to be afforded a hearing and, instead, requires the employing unit to submit all required contribution and wage reports to the department within 45 days after the decision by the appeals board. | ||
Financing | ||
Noncharges benefits against an employer's account for separations from work due to domestic violence. Decreases the contribution rate from 2.7 percent to 2.0 percent for employers whose accounts have not been charged with benefits for the 12 month period ending June 30 of the preceding calendar year, effective from and after December 31, 2004. Decreases the minimum contribution rate from 0.05 percent to 0.02 percent for positive reserve ratio employers. Reduces the employer adjusted rate from 0.05 percent to 0.0025 percent. Provides that from and after December 31, 2004, the payment of contributions or job training employer taxes is not required if the quarterly amount of the contributions and taxes is less than $10. |
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Monetary Entitlement | ||
Increases the quarterly wages needed in the base period to monetarily qualify for unemployment benefits from $1,000 to $1,500. Increases the maximum weekly benefit amount from $205 to $240, effective from and after June 30, 2004. |
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Nonmonetary Eligibility | ||
Provides, effective from and after December 31, 2004, that an individual will not be deemed unemployed if:
When an employer continues to give the part-time worker employment opportunities to the same extent while he is receiving benefits as during the base period, places the burden of proof to establish that the employer failed to give employment opportunities to the individual to the same extent as during the base period on the Commission. Provides that an individual who is a victim of domestic violence and leaves employment due to a documented case of a domestic violence offence will not be disqualified from receiving unemployment benefits. Disqualifies an individual for benefits for any week in which the individual is incarcerated. Provides that benefits will not be reduced by the receipt of social security retirement in order to take into account contributions made by the individual for the pension. |
COLORADO | SB 23 | ENACTED and EFFECTIVE March 23, 2004 |
Financing | ||
Excludes from the definition of wages payments by employers into a supplemental unemployment benefit fund for employees; this exclusion does not apply if the employee has the option to receive a lump-sum payment instead of periodically distributed supplemental unemployment benefits. |
CONNECTICUT | HB 5058 (P.A. 4-60) |
ENACTED May 10, 2004 EFFECTIVE July 1, 2004 |
Administration | ||
Establishes a $25 late filing fee for any employer who failures to submit timely quarterly wage information. | ||
Financing | ||
Requires the deposit of the collected fees into the Employment Security Administration Fund. | ||
Overpayments | ||
Charges a 1 percent per month interest rate on any overpayment made on or after July 1, 2005. |
CONNECTICUT | HB 5340 (P.A. 4-214) |
ENACTED and EFFECTIVE May 14, 2004 |
Monetary Entitlement | ||
Changes the offset pension provision to provide that the weekly benefit amount will not be reduced by prorated weekly Social Security payments. | ||
Nonmonetary Eligibility | ||
Changes the time period during which acts of wilful misconduct are considered from 18 months to 12 months; except with respect to tardiness, each instant in which an employee is absent for 1 day or 2 consecutive days without either good cause for the absence or notice to the employer which could have reasonably been provided constitutes a separate instance. |
FLORIDA | SB 1604 (CH 230) HB 1183 (CH 237) |
ENACTED and EFFECTIVE May 25, 2004 |
Nonmonetary Eligibility | ||
Provides, effective July 1, 2004, that an individual will not be disqualified for benefits for voluntarily leaving work to relocate as a result of his/her military connected spouse’s permanent change of station, activation, or unit deployment orders. |
GEORGIA | HB 1555 (Act No. 796) |
ENACTED and EFFECTIVE May 13, 2004 |
Financing | ||
Extends suspension of the overall rate increase (which is dependent on the state-wide reserve ratio) from December 31, 2004, through December 31, 2005. | ||
Nonmonetary Eligibility | ||
Makes permanent the alternative base period by removing the June 30, 2004, expiration date. |
IDAHO | SB 1226 (CH 24) |
ENACTED and EFFECTIVE March 5, 2004 |
Financing | ||
Increases from 90 to 180 days the time period for employers to request a discretionary transfer of an experience rating account. Provides that whenever an individual or organization succeeds to or acquires all, substantially all, or part of the business of a covered employer, the transfer of the predecessor’s experience rating account to the successor employer must be mandatory if the management, ownership, or control is substantially the same for the successor as for the predecessor and there is a continuity of business activity by the successor. Provides that for purposes of a successorship, an employer’s experience rating account must consist of the actual contribution, benefit and taxable payroll experience of the employer and any amounts due from the employer as required by state law. |
KANSAS | SB 440 (CH 105) |
ENACTED and EFFECTIVE April 16, 2004 |
Coverage | ||
Changes the successorship provisions to provide that if a successor employer is determined to be qualified to receive the experience rating factors of the predecessor employer, the rate assigned to the successor employer for the remainder of the contributions year will be determined by the following:
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Nonmonetary Eligibility | ||
Considers an individual to have voluntarily resigned for failure to return to work after expiration of approved personal or medical leave, or both, and disqualifies such individual from benefits for voluntarily leaving work without good cause attributable to the work or employer. Extends the definition of "misconduct" to include:
Provides that if the employee alleges his/her repeated absences were the result of health related issues, such employee must present evidence that includes documentation from a licensed and practicing health care provider. Disqualifies an individual for benefits if discharged for failing a pre-employment drug screen required by the employer and if such discharge occurs not later than 7 days after the employer is notified of the results of such drug screen; provides that the disqualification will begin the day following the separation and continue until after reemployment and earnings in insured work of at least 3 times the weekly benefit amount. |
MAINE | ER 7768 | ENACTED January 7, 2004 EFFECTIVE January 1, 2004 |
Nonmonetary Eligibility | ||
Establishes an emergency rule relating to part-time work that provides that a claimant who is not able and available for full-time work will not be disqualified from receiving benefits if:
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NEBRASKA | L 950 | ENACTED and EFFECTIVE March 19, 2004 |
Administrative | ||
Requires employers, when reporting new hire information, to report the employee’s date of hire or rehire to the department and transmit a copy of the employee’s federal W-4 with the date of hire or rehire inscribed on it, beginning January 1, 2005. |
OKLAHOMA | Rule 12893 | ENACTED March 26, 2004 EFFECTIVE May 1, 2004 |
Appeals | ||
Permits telephone appeals to the Appeal Tribunal through the Commission’s interactive voice response system or by speaking with one of the Commission’s claim representatives. Revokes the provision providing that if a party is represented by an attorney, the hearing officer may approve a fee for legal services on a quantum merit basis, provided the fee is commensurate with the fee set by the board of review. |
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Nonmonetary Eligibility | ||
Amends the severance pay provision to provide for the deduction of severance pay in the week severance pay is received. Provides that separation from employment to escape domestic violence or abuse is considered good cause and benefits are allowed, provided that a victim’s protection order was on file with the appropriate authorities and the order was effective on the date the claimant separated from employment. Requires the employer to produce certain specific documentation to establish that the drug or alcohol test of a claimant was conducted in accordance with the Standards for Workplace Drug and Alcohol Testing Act. |
SOUTH CAROLINA | HB 3326 (Act No. 170) |
ENACTED and EFFECTIVE February 18, 2004 |
Coverage (resolves pending issue) | ||
Amends coverage provision for Indian tribes to clarify that failure to make timely payments by any tribal unit results in the entire tribe being denied the reimbursement option. |
SOUTH CAROLINA | HB 4420 (Act No. 245) |
ENACTED and EFFECTIVE May 24, 2004 |
Financing | ||
Requires assigning an employing unit all or a portion of the employment benefit record of an existing employing unit when there is an acquisition or change in the form or organization of an existing business enterprise, or severable portion thereof, and there is a continuity of control of the business enterprise; requires the employing unit to be assigned the same rate as the predecessor, or the predecessor who has the highest base rate if there is more than one predecessor employing unit with different base rates. Prohibits assigning an employing unit any portion of the employment benefit record of an existing employing unit upon the acquisition of that established business or of an identifiable and segregable part thereof if the:
Provides that if the experience rating account of the predecessor employer contains a debit balance, defined as an excess of total benefits charged over total contributions paid, the experience rating account of the predecessor employer in any event must be transferred to the successor employer. Assesses a penalty equal to the greater of $1,000 or 10 percent of the tax determined by the commission to be due for each report submitted in violation on an employing unit that wilfully attempts to violate these provisions; provides that this penalty may be recovered in the same manner as for the collection of other penalties; provides that officers and directors of the enterprise comprising the employing unit are individually liable for the penalties assessed. Provides that a contribution tax return preparer who violates these provisions or provides advice to an employing unit that results in a wilful violation of these provisions is liable to a penalty of not less than $1,000 nor more than $10,000 for each report submitted in violation; provides that this penalty may be recovered by the commission in an appropriate civil action in any court of competent jurisdiction. |
TENNESSEE | SB 3391 (CH 699) HB 3504 |
ENACTED May 18, 2004 EFFECTIVE June 1, 2004 |
Appeals | ||
Requires appeals to the court for review of tax liability to be filed in the chancery court of Davidson County. Requires an appeal to be filed within 20 calendar days after the date the written notification of the redetermination is given or mailed to the last known address of the interested party or the redetermination becomes final and not subject to further review. |
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Financing | ||
Deletes the provision containing procedures for making payments under protest for employers challenging a determination of liability for premiums required to be paid. |
UTAH | HB 8 (CH 246) |
ENACTED and EFFECTIVE March 22, 2004 |
Nonmonetary Eligibility | ||
Reduces the offset for receipt of social security benefits against unemployment compensation from 100 percent to 50 percent for 3 years for benefit years beginning after July 1, 2004 and ending on or before July 1, 2007. |
UTAH | SB 5 (CH 7) |
ENACTED March 15, 2004 EFFECTIVE July 1, 2004 |
Coverage | ||
Deletes provision allowing termination of coverage by the employer when there was no calendar quarter in the preceding calendar year during which an employing unit paid wages of $140 or more; eliminates the $140 or more requirement in a quarter with respect to the division’s authority to terminate coverage of an employing unit. | ||
Financing | ||
Makes the $50 late payment penalty applicable if the filing of quarterly wage information and requested reports of base period earnings is not more than 15 days late; establishes a penalty of $50 for each 15 days or a fraction of the 15 days that the filing is late, but not to exceed $250 per filing, if the filing is more than 15 days late. Requires employers liable for payments in lieu of contributions to file quarterly Reimbursable Employment and Wage Reports on the last day of the month that follows the end of each calendar quarter, and applies the same late payment penalty applicable to contributing employers for untimely filing quarterly Reimbursable Employment and Wage Reports. |
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Monetary Entitlement | ||
Prohibits a levy on unemployment benefits by creditors enforcing a claim for alimony, support, maintenance, certain unpaid earnings, or state or local taxes. Provides that deductions of child support obligations or an uncollected over issuance of food stamp benefits are the only deductions that can be withheld from unemployment benefits. |
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Overpayments | ||
With respect to benefit fraud, clarifies that overpayment is the amount of benefits the claimant received by direct reason of fraud. Provides that if the fraud determination is based solely on unreported or under reported work or earnings, or both, and the claimant would have been eligible for benefits if the work or earnings, or both, had been correctly reported, the individual does not lose eligibility because of the misreporting but is liable for the overpayment and penalties. |
UTAH | SB 202 (CH 21) |
ENACTED March 15, 2004 EFFECTIVE January 1, 2004 |
Financing | ||
Sets the social contribution rate at .003 for the rate year beginning January 1, 2004. Provides that on or after January 1, 2005, the social contribution rate will be calculated by dividing all social costs applicable to the preceding 4 fiscal years by the total taxable wages of all employers subject to contributions for the same period. Provides that the social contribution rate for only the rate year beginning January 1, 2005, may not exceed .004. Provides that Reed Act monies made available to the state which are received on or after January 1, 2004, may not be considered in establishing the reserve factor for the rate year 2005 or any subsequent rate year. Increases the maximum employer contribution rate from 8.0 percent plus the social contribution rate to 9.0 percent plus the social contribution rate, effective January 1, 2004. Reduces the maximum weekly benefit amount from 65 percent to 62 percent of the insured average fiscal year weekly wage during the preceding fiscal year for claims filed on or after July 4, 2004. |
VERMONT | HB 143 |
ENACTED and EFFECTIVE May 26, 2004 |
Financing | ||
Changes the new employer rate from a rate not less than the average tax rate for the industry to which the employer is assigned to 1.0 percent, except that certain foreign corporations will be assigned a rate equal to the average rate as of the most recent computation date paid by all employers so classified. |
VIRGINIA | HB 288 (CH 525) |
ENACTED and EFFECTIVE April 12, 2004 |
Nonmonetary Eligibility | ||
Extends the definition of the term "misconduct" to include a willful and deliberate violation of a standard or regulation of the Commonwealth by an employee of an employer licensed or certified by the Commonwealth, which violation would cause the employer to be sanctioned or have its license or certification suspended by the Commonwealth. Allows the Commission to consider evidence of mitigating circumstances in determining whether misconduct occurred. |
VIRGINIA | HB 529 (CH 977) |
ENACTED and EFFECTIVE April 15, 2004 |
Coverage | ||
Excludes from the definition of "employment" services performed by an inmate for a penal or custodial institution or while participating in the Diversion Center Incarceration Program. | ||
Nonmonetary Eligibility | ||
Disqualifies an individual from benefits upon separation from the last employing unit from whom he has worked 30 days or 240 hours or from any subsequent employing unit if such separation arose as a condition of the individual’s parole or release from a custodial or penal institution and such individual was participating in the Diversion Center Incarceration Program. |
VIRGINIA | SB 130 (CH 495) |
ENACTED and EFFECTIVE April 12, 2004 |
Financing | ||
Increases the penalty from $30 to $75 for any employer who had wages payable for a calendar quarter and fails without good cause to file any required report with respect to wages or taxes; increases the penalty from $30 to $75 for a newly covered employer who fails to file a timely quarterly report without good cause. Penalties will be paid into the special Unemployment Compensation Administration Fund. |
VIRGINIA | SB 179 (CH 583) |
ENACTED and EFFECTIVE April 12, 2004 |
Financing | ||
Noncharges an employer’s account for benefits paid to an individual who was unable to work at his regular employment due to a disaster for which the governor, by executive order, has declared a state of emergency, if such disaster forced the closure of the employer’s business, and if the individual returned to his regular full-time employment once the business reopened. Limits the noncharging to 4 weeks. |
WASHINGTON | HB 2510 (CH 97) |
ENACTED and EFFECTIVE March 24, 2004 |
Financing | ||
Amends the penalty provision related to evading the successorship provisions by:
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WASHINGTON | SB 5168 (CH 121) |
ENACTED and EFFECTIVE March 24, 2004 |
Administration | ||
Allows the release of information and records by the employment security department to a county clerk for purposes of verifying employment or income, seeking assignment of wages, or performing other duties necessary to the collection of an offender’s legal financial obligations. |
WYOMING | HB 1 (CH 95) |
ENACTED March 5, 2004 EFFECTIVE July 1, 2004 |
Coverage | ||
Provides that childcare workers contracted to provide day-care services by the department are self-employed for profit entities and are not employees of the department and not eligible for employee benefits (including unemployment insurance) as a result of receiving contract payments from the state. Authorizes the department to appeal any decision of any state administrative body inconsistent with this determination. (Conflicts with Section 3304(a)(6)(A), FUTA) |
WYOMING | HB 69 (CH 86) |
ENACTED March 5, 2004 EFFECTIVE July 1, 2004 |
Financing | ||
Excludes charging employers’ accounts for benefits paid for unemployment resulting directly from the reinstatement of another employee upon that employee’s completion of service in the uniformed services. |