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New Hampshire. New Hampshire has amended the rules under its Unemployment Compensation Law as follows:
Regular compensation. A new section has been added addressing the coordination of emergency unemployment compensation with regular compensation.
Eligible claimant. The term "eligible claimant" is defined as an individual who has been determined to be entitled to emergency unemployment compensation with respect to a benefit year that expired on July 24, 2010, or thereafter; has remaining entitlement to emergency unemployment compensation with respect to that benefit year; and would qualify for a new benefit year in which the weekly benefit amount of regular compensation is at least either $100 less or 25% less than the individual's weekly benefit amount referred to above.
Claim for benefits. A claim for benefits by an eligible claimant is considered a claim for emergency unemployment compensation until all emergency unemployment compensation payable with respect to the benefit year is exhausted.
State-federal extended benefits. A new section has been added to allow eligible claimants to receive the maximum amount of unemployment compensation benefits to which they are entitled under the Unemployment Compensation Extension Act of 2010. Note, this section expires January 26, 2011.
Benefits available. The prohibition of the application of New Hampshire’s “on” indicator for the state-federal extended benefit program when benefits are available under any federal unemployment program does not need to be applied when 100% federal funding is available to reimburse such benefits. Note, this section expires January 26, 2011.
New Jersey. New Jersey has amended the rules under its Unemployment Compensation Law as follows:
Job abandonment. An employee will not be considered to have abandoned his or her job where the employer provides the employee with a date certain for return to work following an approved leave of absence and on or prior to that date the employee communicates to the employer that he or she will not be returning to work on that date and, in fact, does not return to work on that date. In addition, these circumstances will not be altered by virtue of the employee communicating to the employer within five consecutive work days following the date certain for return to work or thereafter that he or she is no longer unable to return to work and would now like to return to work. In both situations, the employee's eligibility for unemployment compensation will be evaluated relative to whether he or she left work voluntarily without good cause attributable to such work.
Ballot measure. New Jersey residents recently passed a ballot measure that proposed a constitutional amendment prohibiting the collection by the state of assessments based on employee wages and salaries for any purpose except paying employee benefits (or making other employee-authorized or federally required payments in the case of the state’s own employees); and dedicating all contributions made to the unemployment compensation fund, the state disability benefits fund, or any other employee benefit fund, and all returns on investments of those contributions, to the purpose of that fund and prohibiting the use of those contributions or returns for any other purpose. The requirements of the proposed amendment do not apply to the gross income tax, which is exclusively dedicated by the Constitution to the purpose of reducing or offsetting local property taxes.
New York. New York has amended its Unemployment Insurance Law as follows:
Services performed by an employee in the construction industry are covered employment unless the presumption of employment can be overcome, as provided under Section 861(1)(c) of the Labor Law.
North Carolina. The taxable wage base in North Carolina will remain $19,700 for 2011.
North Dakota. The taxable wage base in North Dakota for 2011 will be $25,500. This is an increase of $800 from the 2010 taxable wage base amount of $24,700.
Ohio. For 2011, contribution rates in Ohio will range from 0.70% to 9.60%. The mutualized rate for 2011 is 0.40%. New employers in the construction industry pay a rate of 6.40% and all other new employers continue to pay a rate of 2.70%.
Oklahoma. The state experience factor for 2011 is 46%. Rates range from 0.30% to 9.20% of the first $18,600 paid to an individual employee. However, please note that any employer whose rate is 3.40% or more cannot have a rate increase of more than 2.00% in any one year. Thus, because the maximum 2010 rate was 5.50%, the maximum rate an employer can have for 2011 is 7.50%. The new employer rate for 2011 is 1.00%.
For 2011, the taxable wage base will be $18,600. This is an increase of $3,700 from the 2010 taxable wage base amount of $14,900.
The maximum weekly benefit amount in Oklahoma for 2011 will be $358, down from $430 in 2010. The minimum weekly benefit amount remains $16 in 2011.
Oregon. The rate schedule in effect in Oregon for 2011 will be Tax Schedule VIII. Contribution rates will range from 2.20% to 5.40%, with a base rate of 3.30% for new employers.
For 2011, the taxable wage base in Oregon will increase to $32,300. This is $200 higher than the taxable wage base of $32,100 that was applicable in 2010.
Pennsylvania. The Commonwealth of Pennsylvania has enacted legislation providing for the criteria independent contractors in the construction industry need to follow and imposing penalties for those employers that fail to do so.
For purposes of unemployment compensation, workers' compensation and improper classification of employees, an individual who performs services in the construction industry for remuneration is an independent contractor only if: (1) The individual has a written contract to perform the services; (2) The individual is free from control or direction over the performance of the services both under the contract of service and in fact; and (3) As to such services, the individual is customarily engaged in an independently established trade, occupation, profession or business. An employer, or an officer or agent of an employer, will be in violation of the act and subject to its penalties, remedies and actions if the employer, officer or agent: (1) fails to properly classify an individual as an employee for purposes of the Unemployment Compensation Law and fails to pay contributions, reimbursements or other amounts required to be paid under that law; or (2) fails to properly classify an individual as an employee for purposes of the Workers' Compensation Act and fails to provide the coverage required under that act. Each individual who is not properly classified as an employee will be the basis of a separate violation. In addition, note that both civil and criminal penalties may be imposed for violations of the act. The Department of Labor and Industry will not be required to enforce the act until adequate funding is appropriated.
Rhode Island. The taxable wage base in Rhode Island for unemployment insurance purposes will remain $19,000 in 2011. The temporary disability insurance taxable wage base for 2011 will rise to $58,400, up $500 from the 2010 amount of $57,900.
South Carolina. South Carolina has changed the way it computes UI contribution rates. The state will no longer operate with a fixed tax rate table or reserve ratios. Rather, effective January 1, 2011, rates will be computed based on a benefit-ratio rating system. The benefit ratio is defined as the total benefit charged to an employer’s account for a specified time period divided by the employer’s taxable payroll over that same period. The new experience rating system is based on benefit ratios and the tax rates will be set each year so that they generate the desired level of funding for a given year. Under the new structure, employers are placed into one of 20 tax rates based on benefit ratios. Based on taxable wages, 5% of employers with the lowest benefit ratios will be placed into the lowest tax rate, “Tax Class 1.” The remaining employers will be arrayed into the remaining 19 tax rate classes so that the 5% of employers with the highest benefit ratios will be placed into the highest tax rate class, ”Tax Class 20.” For 2011, total effective rates (including an interest surcharge and a 0.06% Contingency Assessment) range from 0.103% for Tax Class 1 to 11.283% for Tax Class 20. A sliding scale will now be used for the interest surcharge, which for 2011 will range between 0.042% for employers in Tax Class 1 and 0.549% for Tax Class 20.
South Dakota. There will be no employer surcharge in effect for the 4th quarter of 2010 because South Dakota's UI Trust Fund was $27.7 million on September 30. The surcharge comes off when the fund exceeds $16.5 million at the end of any quarter. It automatically goes into effect when the fund balance is below $11 million at the end of any quarter. Since the DOL predicts that the fund balance on December 31 will be $25 million, there also will be no surcharge for the 1st quarter of 2011.
Tennessee. Effective July 1, 2010, through December 31, 2010, Premium Rate Table 1 is in effect. Employers with a positive reserve ratio of 20% or more will receive a 0.50% premium rate. For the period between July 1, 2010, and June 30, 2011, new employers in the following NAICS industrial sectors will pay at the following (higher than the standard 2.7%) new employer rates: Mining and extraction—8.6%; Construction—8.1%; Manufacturing under NAICS category 31—5.6%; Manufacturing under NACIS category 32—6.6%; and Manufacturing under NACIS category 33—9.1%.
Texas. The maximum weekly benefit amount in Texas effective October 1, 2010, is $415. The minimum weekly benefit amount increases to $60.
The Texas Workforce Commission has adopted a new rule as follows:
The Commission will establish a new benefit year, but will defer the payment of regular compensation with respect to that new benefit year until all emergency unemployment compensation payable with respect to the prior benefit year is exhausted, if the individual’s weekly benefit amount of regular compensation in the new benefit year is at least $100 or 25% less than his or her weekly benefit amount in the immediately preceding benefit year.
Texas has amended the regulations under its Unemployment Compensation Act as follows:
Benefit wage credits. This new section defines “benefit wage credits” as wages received by an individual for employment from an employer during the individual's base period and wages ordered to be paid to an individual by a final Commission order. If the wages ordered were due to be paid during the claimant's base period, those wages will be credited to the quarter in which the wages were originally due to be paid.
Approval of training. This new section states that the agency will approve training, if: (1) there is no longer substantial and recurring demand for the individual's skills, and the lack of employment opportunities in occupations requiring those skills is expected to continue for an extended period of time, and the individual has no other skill for which there is an expectation of reemployment in a reasonable period; and (2) the training will enhance the individual's ability to secure stable employment and earning potential in an occupation for which there is substantial and recurring demand.
Note that an individual will be in approved training if the agency approves the training and the individual is attending the training as shown by the following: (1) The individual and/or the training facility agrees to furnish evidence upon request that the individual is regularly attending the training course and is satisfactorily performing assignments as a trainee; and (2) The individual affirms at the time of the claim certification that he or she has attended the training course during the given training week or had good cause for failing to do so.
Earned income tax credit. This new section provides information to employers on the acceptable information that must be provided to employees on the federal Earned Income Tax Credit (EITC) as required by Texas Labor Code, Chapter 104. The information regarding general eligibility requirements for the federal EITC in Texas Labor Code §104.002 means IRS Notice 797 or a written statement that provides the same wording as IRS Notice 797.
The Texas Workforce Commission has amended sections of the Texas Payday Rules relating to fringe benefits and severance pay, paid time off, bonuses, payday loans and wage advances. The definition of severance pay is clarified to mean payment by an employer to an employee beyond the employee’s wages on termination of employment, based on the employee’s prior service; Severance pay does not include payments for liquidated damages, payments in exchange for a release of claims, or payments made because of a lack of notice of separation. Paid time off (PTO) and paid days off (PDO) are included in the definition of “wages” unless the employer’s written policy defines PTO or PDO as something other than a combination of vacation pay, holiday pay, sick leave pay, parental leave pay, or severance pay; PTO or PDO is payable to employees upon separation from employment only if there is a written agreement with the employer or the employer has a written policy that specifically provides for such payments. A rule on commissions is amended to also cover bonuses, to be in sync with statutory law. A new rule is added covering wage advances, stating that a wage advance occurs when an employer advances a monetary sum that represents wages not yet earned or wages earned but not yet due for payment; an employer may recoup a wage advance from the employee’s next regularly scheduled paycheck directly following the advance if (a) the employer provides notice to the employee that the amount is an advance that will be recovered from the next paycheck, and (b) the employee agrees to the amount to be recouped. (Rules 40 TAC 821.25 through 821.27 are amended and rule 821.29 is adopted effective September 20, 2010.)
Utah. The taxable wage base in Utah for 2011 is $28,600, up $300 from the 2010 wage base amount of $28,300.
Washington. ESD auditors have identified more unpaid unemployment taxes by placing added focus on industries that have been more likely to fail to report employees and wages.
Through September 2010, auditors found about three times the number of unreported workers compared to the same period last year. Auditors identified 11,485 unreported workers and $196 million in unreported wages—a huge increase over the 4,168 unreported workers and $76 million in wages found during the first nine months of 2009. Auditors also found $2.12 million in unpaid taxes this year compared to $1.35 million the over the same period in 2009.
When businesses fail to report all of their workers and wages, they avoid paying taxes they should be paying and reduce the likelihood that their workers will qualify for unemployment benefits if they are laid off. Over the past two years, the industries with the most unreported workers are freight trucking, schools, contractors, construction, salons, rental services, janitorial, real estate, recreational facilities and couriers.
The success of the department's targeted-auditing program has earned it an award from the federal Department of Labor. The Innovations in Integrity Award was one of three created and bestowed by the federal agency to commemorate the 75th anniversary of the nationwide unemployment insurance program.
Washington has amended the rules under its Employment Security Act as follows:
Appeals. Appeals must now be sent to the address or fax number indicated on the determination notice or other appealable document. The section relating to forms has been eliminated.
Aggrieved party. The definition of an aggrieved party now includes “the department.”
Advisement order. The Commissioner may designate a department employee to request an advisement order on decisions that are cases of first impression; may impact significant numbers of similar cases; may involve U.S. Department of Labor conformity or compliance issues; or may have an erroneous interpretation of law. The Commissioner’s review office will determine if requests meet the criteria and notify the requestor if the decision will not be taken under advisement. If a case meets the criteria, the Commissioner will issue an advisement order accepting review. The parties may then submit arguments in support or opposition to the decision under advisement within 15 days.
Department refusal. A new section has been added providing that department employees cannot refuse to accept a claim, a signed appeal or a properly filed petition, regardless of the employee’s opinion on the merits. In addition, the filer now must provide his or her name and Social Security number in order to file a claim for benefits.
West Virginia. West Virginia has amended the regulations under its Unemployment Compensation Law as follows:
Default. An employer is in default when, after due notice, it fails to submit a required payment, interest or penalty and has not entered into a properly executed repayment agreement with WorkForce West Virginia or has entered into an appropriate repayment agreement, but does not remain in compliance with its obligations. For purposes of this rule, an employer who has failed to submit required payments, interest or penalties, or required quarterly reports by the required due dates is presumed to be in default.
Employer Violator List. The employer violator list includes any employer that has a lien filed against it by WorkForce West Virginia due to a default on any assessment, surcharge, tax or penalty owed to the unemployment compensation trust fund.
General prohibition. The Employer Violator System prohibits violators who own or have a 10% or more ownership interest from maintaining any license, certificate or permit issued by the state until they have paid all monies owed to the fund or have entered into or remain in compliance with a repayment agreement.
Access. Access by the public will be via the WorkForce West Virginia website: www.workforcewestvirginia.org.
Notice. Prior to being placed in the employer violator system, an employer will be notified by mail that the Director has identified it as being in default and, as a result, intends to include the employer in the system. The employer may object to being included in the employer violator system and request in writing an expedited administrative hearing. Any employer that fails to respond within 10 days of the date of the notice by paying all moneys owed to the fund, entering into a repayment agreement, or requesting in writing an expedited administrative hearing will be included in the employer violator system and will remain in the system until removed.
Hearing. An employer that files a written objection to its name being placed into the employer violator system will be afforded an opportunity to contest the Director's determination and the opportunity to present testimony and enter evidence in support of its position.
Removal of the employer's name from list. An employer's name will be removed from the Employer Violator List when the amount on the lien owed to WorkForce West Virginia is paid in full or the employer enters into an approved repayment agreement.
Wisconsin. For 2011, Schedule A is in effect. Rates under Schedule A range from 0.27% to 9.80%. In addition, the rate for both newly liable construction employers with payrolls of $500,000 and over and the rate for newly liable construction employers with payrolls under $500,000 is 6.60% for 2011. Also, both the general new employer rate for employers with payrolls of $500,000 and over and the general new employer rate for employers with payrolls of under $500,000 is 3.60% for 2011.