Workforce Services, Unemployment Insurance

Section R994-106-104

Determining the Paying State

Notice of Proposed Rule

(Amendment)

DAR File No.: 33114
Filed: 10/29/2009 05:54:08 PM

RULE ANALYSIS

Purpose of the rule or reason for the change:

The purpose of this amendment is to comply with federal regulation.

Summary of the rule or change:

The Department of Labor changed the way the paying state is determined in combined wage claims (CWC). Now a claimant determines the paying state and provided the claimant is eligible, unemployment benefits are paid by that state according to that state's rules. This proposed amendment brings Utah into compliance with the federal guidance.

State statutory or constitutional authorization for this rule:

• Subsection 35A-1-104(4)
• Section 35A-1-104

Anticipated cost or savings to:

the state budget:

This is a federally-funded program so there are no costs or savings to the state budget.

local governments:

This is a federally-funded program so there are no costs or savings to any local government.

small businesses:

There are no costs or savings to any other persons or small businesses as there are no fees associated with this program and it is federally funded.

persons other than small businesses, businesses, or local governmental entities:

There are on costs or savings to any person or entity as this is a federally funded program.

Compliance costs for affected persons:

It is not anticipated this will result in a change in any unemployment tax rate or unemployment benefit amount. This change just helps determine which state is the paying state but the costs of benefits are still split among the several states where wages were paid in the same ratio as before.

Comments by the department head on the fiscal impact the rule may have on businesses:

There are no compliance costs associated with this change. There are no fees associated with this change. There will be no cost to anyone to comply with these changes. There will be no fiscal impact on any business. These changes will have no impact on any employers contribution tax rate.

Kristen Cox, Executive Director

The full text of this rule may be inspected, during regular business hours, at the Division of Administrative Rules, or at:

Workforce Services
Unemployment Insurance
140 E 300 S
SALT LAKE CITY, UT 84111-2333

Direct questions regarding this rule to:

• Suzan Pixton at the above address, by phone at 801-526-9645, by FAX at 801-526-9211, or by Internet E-mail at spixton@utah.gov

Interested persons may present their views on this rule by submitting written comments to the address above no later than 5:00 p.m. on:

12/15/2009

This rule may become effective on:

12/22/2009

Authorized by:

Kristen Cox, Executive Director

R994. Workforce Services, Unemployment Insurance.

R994-106. Combined Wage Claims.

R994-106-104. Determining the Paying State in Combined Wage Claim (CWC) Claims .

(1) The paying state is the state in which the claimant elects to file a CWC, provided the claimant has employment and wages in that state's base period and the claimant qualifies for unemployment under the law of that state using combined employment and wages. The claimant is responsible for deciding the state against which to file a CWC.

(2) If a claimant files a CWC in Utah but is not monetarily eligible for benefits against Utah, Utah will advise the claimant of Utah's qualifying requirements and his or her potential eligibility for benefits, if any, under Utah law. The claimant will also be told that he or she has the option to file in any other state/s where he or she has employment and wages. Utah will advise the claimant that state laws vary and there are differences in weekly benefits amounts and other qualifying requirements in different states. If the claimant wishes to explore options with any other state/s, Utah will provide the claimant with contact information for that/those state/s.

(3) If a claimant is found to be monetarily ineligible in Utah, the claimant can file in another state where he or she has employment and wages in that state's base period. If a claimant was found monetarily ineligible in another state and then files in Utah, Utah can use the effective date of the original claim, provided the claimant filed within the appeal period from the original state's monetary denial.[(1) The paying state is determined in order of the following priorities:

(a) the state in which the combined wage claim is filed if the claimant qualifies for unemployment benefits in that state on the basis of combined employment and wages; then

(b) if the claimant is not monetarily eligible for benefits in the state of filing, a combined wage claim must be considered against the state of last employment. If the claimant is not eligible under the law of this state, the state of next-to-last employment must be considered and so on through the order in which the work was performed; or

(c) if the combined wage claim is filed in Canada, the paying state will be that state where the combined wage claimant was last employed in covered employment among the states with wages used in determining the claim.

(2) The claimant has the right to claim against another state or states if he receives an ineligible monetary determination. If such request is made in accordance with instructions from the local office or within the appeal period of the monetary determination, a claim may be taken against another state(s) with the effective date of the original claim.]

 

KEY: unemployment compensation, interstate compacts

Date of Enactment or Last Substantive Amendment: [May 30, 2008]2009

Notice of Continuation: May 17, 2007

Authorizing, and Implemented or Interpreted Law: 35A-4-106(1)