State employment law updates, as of Oct. 26, 2009
Alabama.—Change in Extended Benefits (EB) period. Alabama has enacted a retroactive TUR trigger for its EB program. The state would have triggered on with the release of state total unemployment rates (TURs) for January 2009, released by the Bureau of Labor Statistics on March 11, 2009.
This means its current EB period began March 29, 2009. In addition, the three-month average seasonally adjusted TUR rose above the 8% threshold for a High Unemployment Period (HUP) with the release of March TURs on April 17, 2009. As a result, a HUP in the EB program began in Alabama on May 3. Eligible claimants will be able to receive up to 20 weeks of additional benefits.
Information for claimants. The duration of benefits payable in the EB Program, and the terms and conditions on which they are payable, are governed by the Federal-State Extended Unemployment Compensation Act of 1970, as amended, and the operating instructions issued to the states by the U.S. Department of Labor.
In the case of a state beginning a HUP period, the State Workforce Agency will furnish a written notice of potential entitlement to each individual who may be eligible for increased benefits due to the HUP (20 CFR 615.13 (c) (1)).
Individuals who wish to inquire about their rights under the program should contact their State Workforce Agency.
For further information, contact Scott Gibbons, U.S. Department of Labor, Employment and Training Administration, Office of Workforce Security, 200 Constitution Avenue N.W., Frances Perkins Bldg., Room S-4231, Washington, DC 20210, telephone number (202) 693-3008 (this is not a toll-free number); or by e-mail to gibbons.scott@dol.gov. (74 Fed. Reg. 49402, 9/28/2009.)
Arkansas.—Contribution rates. Basic contribution rates in Arkansas will be increased in 2010 to add both a 0.8% stabilization tax and a 0.1% extended benefits tax. Total rates for the year will range from 1.0% to 6.9% as a result. The rate for new employers will be 3.8% in 2010 and also includes both the stabilization tax and the extended benefits tax. (DWS Communication.)
Connecticut.—Maximum weekly benefit amount. The maximum weekly benefit amount in Connecticut effective October 4, 2009, is $537. (DOL Communication.)
Indiana.—Taxable wage base. Effective January 1, 2010, the taxable wage base in Indiana will be $9,500. (DWD Communication.)
Louisiana.—Taxable wage base. Effective January 1, 2010, the taxable wage base in Louisiana will be $7,700, up from $7,000 in 2009. Currently, the amount of remuneration subject to unemployment insurance taxes depends on the applied trust fund range in effect. In other words, the standard wage base of $8,500 is adjusted depending on upward or downward trends of the trust fund range. As a result, the wage base may be $7,000, $7,700 or $8,500, depending on the trust fund balance. (LDOL Communication.)
Maine.—Law amended. The Maine Employment Security Law has been amended as follows:
"Dislocated worker." The term "dislocated worker" means (1) an individual who has been terminated or laid off from employment as a result of a reduction of operations or who has received a notice of termination or layoff from employment, (2) an individual who has been terminated or who has received a notice of termination as a result of any permanent closure of a plant or facility; or (3) an individual who is long-term unemployed and has limited opportunities for employment or reemployment in the same or a similar occupation in the area of the individual’s residence, including any older individual who may have substantial barriers to employment because of age.
Massachusetts.—Maximum weekly benefit amount. The maximum weekly benefit amount in Massachusetts effective October 4, 2009, is $629. (DWD Communication.)
Michigan.—Credit reduction/tax credit for employers. For the 2009 tax year, many Michigan employers will not receive the usual full FUTA tax credit because the state has had outstanding federal loans for two years. The reduction will be 0.3% this year, which means that Michigan employers, except Indian tribes, nonprofit organizations and governmental entities, will pay a FUTA tax of 1.1% instead of 0.8%.
If the loans remain unpaid, an additional 0.3% credit reduction will be added for the 2010 tax year. It is due on the federal Form 940 by January 31, 2010. For further information, call the UIA Employer Customer Relations Hotline at 800-638-3994 or email TaxSupport@michigan.gov.
Note that positive reserve balance employers can apply for a state unemployment tax credit of either (1) 50% of the extra FUTA tax paid on their Form 940 for the previous year or (2) the employer's taxable wages for the previous calendar year multiplied by the Nonchargeable Benefits Component of its tax rate for that year, whichever is the lesser amount. An employer must have paid Michigan UI taxes for five or more years and have a positive balance in its experience account. (Michigan Fact Sheets #126/#130, June/July 2009.)
Missouri.—Taxable wage base. The taxable wage base in Missouri for 2010 will be $13,000, and increase of $500 from the 2009 taxable wage base amount of $12,500. (DOLIR Communication.)
New Hampshire.—Regulations amended. New Hampshire has amended the regulations under its Unemployment Compensation Law as follows:
Domestic violence. An individual is not disqualified from receiving benefits where he or she reasonably believes that separation from employment is necessary to protect the individual or any member of his or her immediate family from domestic abuse. The Department will verify the existence of domestic abuse through reasonable documentation and will keep the information confidential.
Other disqualifications. Other circumstances that will not disqualify an individual from receiving benefits include pregnancy or an illness or injury that is not work-related, provided that a physician has attested to the individual’s inability to perform work duties in a written notice; leaving employment to allow the individual to accompany his or her spouse to a place from which it is impractical for the individual to commute due to the change in location of the spouse’s employment; or leaving employment because of the illness or disability of a member of the individual’s immediate family.
New Mexico.—Change in Extended Benefits (EB) period. New Mexico's TUR for July 2009, released on August 21, 2009, by the Bureau of Labor Statistics, brought its three-month average seasonally adjusted TUR to the threshold for triggering "on" to an extended benefit period. For weeks of unemployment beginning on September 6, 2009, eligible unemployed workers will be able to collect up to an additional 13 weeks of unemployment insurance benefits.
Information for claimants. The duration of benefits payable in the EB program, and the terms and conditions on which they are payable, are governed by the Federal-State Extended Unemployment Compensation Act of 1970, as amended, and the operating instructions issued to the states by the U.S. Department of Labor. In the case of a state beginning an EB period, the State Workforce Agency will furnish a written notice of potential entitlement to each individual who has exhausted all rights to regular benefits and is potentially eligible for EB (20 CFR 615.13 (c) (1)).
Individuals who believe they may be entitled to EB or who wish to inquire about their rights under the program should contact their State Workforce Agency.
For further information, contact Scott Gibbons, U.S. Department of Labor, Employment and Training Administration, Office of Workforce Security, 200 Constitution Avenue, N.W., Frances Perkins Bldg., Room S-4231, Washington, DC 20210, telephone number (202) 693-3008 (this is not a toll-free number); or by e-mail to gibbons.scott@dol.gov. (74 Fed. Reg. 51178, 10/5/2009.)
Oklahoma.—Taxable wage base. For 2010, the taxable wage base for Oklahoma will be $14,900. This is an increase of $700 from the 2009 taxable wage base amount of $14,200. (OESC Communication.)
Tennessee.—Regulations amended. Tennessee has amended the regulations under its Employment Security Law to provide as follows:
Partial claims filing. Any employer filing more than 50 partial claims in any week must use the Department's Automated Partial Claims System.
Reassignment of rules. The Tennessee Secretary of State has moved the rules of the Department of Labor and Workforce Development from 0560-01-01 through 0560-04-01 to 0800-09-01 through 0800-12-01.
Texas.—Weekly benefit amounts The maximum weekly benefit amount in Texas effective October 4, 2009, is $406. The minimum weekly benefit amount is $59. (TWC Communication.)
Regulations adopted. Texas has adopted new rules on an emergency basis to adjust unemployment eligibility periods, as necessary, to maximize its receipt of the federally shared extended unemployment benefits in accordance with the American Recovery and Reinvestment Act of 2009, enacted February 17, 2009 (P.L. 111-5). In part, the new rules provide a conditional trigger, a definition of "high unemployment period," and a provision to pay extended benefits only after all regular and emergency unemployment compensation has been exhausted.
Utah.—Regulations amended. Utah has amended the regulations under its Employment Security Act as follows:
Failure to complete or sign form. If a claimant's disqualification results from his or her failure to complete, sign and return the Direct Deposit or Eppicard Authorization Form, the disqualification will be reversed once the completed and signed form is received by the Department. Note that the claimant does not need to show good cause for his or her failure to provide the Direct Deposit or Eppicard Authorization Form in a timely manner.
Vermont.—Law amended. Vermont has amended its Unemployment Compensation Law as follows:
Taxable wage base. The law now provides that for the period January 1, 2010, through December 31, 2010, the term "wages" will not include that part of remuneration over $10,000 which was paid during the calendar year.
Weekly benefit amounts. For the 12-month period from July 1, 2009, through June 30, 2010, the maximum weekly benefit amount is $425. Under prior law, the maximum benefit amount was $351.
Trust fund. A committee to study the reform of the unemployment trust fund has been created. The committee will consist of 12 members, including members of the House Ways and Means and Commerce and Economic Development Committees as well as members of the Senate Economic Development, Housing, and General Affairs and Finance Committees. The committee will study all issues affecting the solvency of the fund and develop recommendations for reforms to ensure long-term solvency, including negative balance, seasonal and reimbursable employers, the taxable wage base and rates applied to the base, benefit levels and any other relevant issues.
Virgin Islands.—Second-tier benefits. Public law 110-449 created a second-tier of benefits within the EUC08 program for qualified unemployed workers claiming benefits in high unemployment states. The Department of Labor produces a trigger notice indicating which states qualify for this second-tier of EUC08 benefits and provides the beginning and ending dates of the second-tier period for each state. The trigger notice covering state eligibility for the second-tier of the EUC08 program can be found at: http:// ows.doleta.gov/unemploy/claims_arch.asp. A new trigger notice is posted at this location each week that the program is in effect.
For weeks of unemployment beginning August 23, 2009, claimants in the Virgin Islands are potentially eligible for up to 13 weeks of additional benefits within the second-tier of the EUC08 program.
Information for claimants. The duration of benefits payable in the EUC program, and the terms and conditions under which they are payable, are governed by Public Laws 110-252 and 110-449, and the operating instructions issued to the states by the U.S. Department of Labor. The State Workforce Agency in states beginning a high unemployment period will furnish a written notice of potential entitlement to each individual who is potentially eligible for second-tier EUC08 benefits.
Individuals who believe they may be entitled to additional benefits under the EUC08 program, or who wish to inquire about their rights under the program, should contact their State Workforce Agency.
For further information, contact Scott Gibbons, U.S. Department of Labor, Employment and Training Administration, Office of Workforce Security, 200 Constitution Avenue N.W., Frances Perkins Bldg., Room S-4231, Washington, DC 20210, telephone number (202) 693-3008 (this is not a toll-free number); or by e-mail to gibbons.scott@dol.gov (74 Fed. Reg. 49403, 9/28/2009.)
Reprinted with permission. © CCH
<p>State employment law updates, as of Oct. 26, 2009 Alabama.—Change in Extended Benefits (EB) period. Alabama has enacted a retroactive TUR trigger for its EB program. The state would have triggered on with the release of state total unemployment rates</p>
State employment law updates, as of Oct. 26, 2009