Workforce Services, Unemployment Insurance

Section R994-201-101

General Definitions and Acronyms

Notice of Proposed Rule

(Amendment)

DAR File No.: 36613
Filed: 08/01/2012 04:22:18 PM

RULE ANALYSIS

Purpose of the rule or reason for the change:

The purpose of this amendment is to correct the definition of covered wages.

Summary of the rule or change:

The Department's current definition of covered wages is inaccurate and does not follow federal law. Railroad employment is covered by a different unemployment law and wages earned working for a railroad cannot be considered covered employment under the unemployment insurance administered by the Department. This proposed amendment corrects that oversight and makes the definition of when military wages can be used more precise.

State statutory or constitutional authorization for this rule:

• Subsection 35A-4-502(1)(b)
• Subsection 35A-1-104(4)
• Section 35A-1-104

Anticipated cost or savings to:

the state budget:

This will have no impact on the state budget or on any employer. The Department knows of no case where railroad wages were used as covered wages in determining eligibility for unemployment benefits so it is not anticipated this will save the state budget. The definition for military wages is the same definition which has always been used just more clearly stated.

local governments:

This will have no impact on any employer, including any local government acting as an employer. By not including railroad wages it would theoretically save employers money but since the Department has never used railroad wages as covered wages in determining eligibility for unemployment benefits, it is not anticipated this will save any employer. The definition for military wages is the same definition which has always been used just more clearly stated.

small businesses:

This will have no impact on any small business. The rates paid by small businesses will not go up or down as a result of this proposed change. The Department knows of no instance where railroad wages were used as covered wages in determining eligibility for unemployment benefits so it is not anticipated this will change unemployment rates. The definition for military wages is the same definition which has always been used just more clearly stated.

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

This proposed change will have no impact on any business or local government entities as it is not anticipated this will impact contribution rates for employers.

Compliance costs for affected persons:

There are no compliance costs for affected persons as there are no compliance costs associated with these proposed changes. Railroad employees will not be affected as they are covered under a different unemployment system.

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 employer's 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:

09/14/2012

This rule may become effective on:

09/21/2012

Authorized by:

Kristen Cox, Executive Director

R994. Workforce Services, Unemployment Insurance.

R994-201. Definition of Terms in Employment Security Act.

R994-201-101. General Definitions and Acronyms.

These definitions are in addition to those defined in Section 35A-4-201.

(1) "Act" means the Utah Employment Security Act, and amendments thereto.

(2) "ALJ" means Administrative Law Judge.

(3) "Appeals Unit" means the Division of Adjudication.

(4) "Board" means the Workforce Appeals Board.

(5) Bona Fide Employment.

"Bona fide employment" is work that was an authentic employer-employee relationship entered into in good faith without fraud or deceit rather than an arrangement or report of non-existent work calculated to overcome a disqualification.

(6) Burden of Proof.

The person or party with the burden of proof has the initial responsibility to show that the fact at issue is worthy of belief. Burden of proof requires proof by a preponderance of the evidence.

(7) Calendar Quarter.

"Calendar quarter" means the period of three consecutive calendar months ending on March 31, June 30, September 30, or December 31.

(8) Claimant.

"Claimant" is an individual who has filed the necessary documents to apply for unemployment insurance benefits.

(9) Covered Employment.

"Covered employment" is employment subject to a state or federal unemployment insurance laws[, including laws pertaining to railroad unemployment and active military duty,] which can be used to establish monetary eligibility for unemployment insurance benefits. Active military duty in a full time branch of the US military service can be used if the ex-servicemember was honorably discharged and completed his or first full term of service, or if the separation meets the requirements of 5 U.S.C. 8521(a)(1)(B)(ii)(I through (IV) and 20 CFR 614.[, even if the duty was for less than 90 days, if the claimant was released under honorable conditions. National Guard or Reserve wages may be used only if the claimant has completed 90 consecutive days of active duty and if the claimant was released under honorable conditions.]

(10) Department.

"Department" means the Department of Workforce Services.

(11) Employment Center.

"Employment Center" means an office operated by the Department of Workforce Services.

(12) Itinerant Service.

"Itinerant service" means a service maintained by the Department of Workforce Services at specified intervals and at designated outlying points within the jurisdiction of an Employment Center.

(13) Local Office.

"Local office" means the Employment Center of any geographical area.

(14) MBA means maximum benefit amount.

(15) Person.

"Person" includes any governmental entity, individual, corporation, partnership, or association.

(16) Preponderance of Evidence.

A "preponderance of evidence" is evidence which is of greater weight or more convincing than the evidence which is offered in opposition to it, more convincing to the mind, evidence that best accords with reason or probability. Preponderance means more than weight; it denotes a superiority of reliability. Opportunity for knowledge, information possessed and manner of testifying determines the weight of testimony.

(17) Separation.

"Separation" means curtailment of employment to the extent that the individual meets the definition of "unemployed" as stated in Subsection 35A-4-207(1) with respect to any week.

(18) Transitional Claim.

A claim that is filed effective the day after the prior claim ends provided an eligible weekly claim was filed for the last week of the prior claim.

(19) WBA means weekly benefit amount.

 

KEY: unemployment compensation, definitions

Date of Enactment or Last Substantive Amendment: [November 16, 2004]2012

Notice of Continuation: May 20, 2008

Authorizing, and Implemented or Interpreted Law: 35A-4-201