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3 | 3 | | LCO No. 6484 1 of 17 |
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4 | 4 | | |
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5 | 5 | | General Assembly Raised Bill No. 1237 |
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6 | 6 | | January Session, 2023 |
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7 | 7 | | LCO No. 6484 |
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8 | 8 | | |
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9 | 9 | | |
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10 | 10 | | Referred to Committee on FINANCE, REVENUE AND |
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11 | 11 | | BONDING |
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12 | 12 | | |
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13 | 13 | | |
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14 | 14 | | Introduced by: |
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15 | 15 | | (FIN) |
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16 | 16 | | |
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17 | 17 | | |
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18 | 18 | | |
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19 | 19 | | |
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20 | 20 | | AN ACT CONCERNING A PHASE -IN OF THE INCREASE IN THE |
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21 | 21 | | UNEMPLOYMENT INSURANCE CHARGED RATE. |
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22 | 22 | | Be it enacted by the Senate and House of Representatives in General |
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23 | 23 | | Assembly convened: |
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24 | 24 | | |
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25 | 25 | | Section 1. Section 31-225a of the general statutes is repealed and the 1 |
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26 | 26 | | following is substituted in lieu thereof (Effective from passage): 2 |
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27 | 27 | | (a) As used in this chapter: 3 |
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28 | 28 | | (1) "Qualified employer" means each employer subject to this chapter 4 |
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29 | 29 | | whose experience record has been chargeable with benefits for at least 5 |
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30 | 30 | | one full experience year, with the exception of employers subject to a 6 |
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31 | 31 | | flat entry rate of contributions as provided under subsection (d) of this 7 |
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32 | 32 | | section, employers subject to the maximum contribution rate under 8 |
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33 | 33 | | subsection (c) of section 31-273, and reimbursing employers; 9 |
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34 | 34 | | (2) "Contributing employer" means an employer who is assigned a 10 |
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35 | 35 | | percentage rate of contribution under the provisions of this section; 11 |
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36 | 36 | | (3) "Reimbursing employer" means an employer liable for payments 12 Raised Bill No. 1237 |
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37 | 37 | | |
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38 | 38 | | |
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39 | 39 | | |
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40 | 40 | | LCO No. 6484 2 of 17 |
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41 | 41 | | |
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42 | 42 | | in lieu of contributions as provided under section 31-225; 13 |
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43 | 43 | | (4) "Benefit charges" means the amount of benefit payments charged 14 |
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44 | 44 | | to an employer's experience account under this section; 15 |
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45 | 45 | | (5) "Computation date" means June thirtieth of the year preceding the 16 |
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46 | 46 | | tax year for which the contribution rates are computed; 17 |
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47 | 47 | | (6) "Tax year" means the calendar year immediately following the 18 |
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48 | 48 | | computation date; 19 |
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49 | 49 | | (7) "Experience year" means the twelve consecutive months ending 20 |
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50 | 50 | | on June thirtieth; 21 |
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51 | 51 | | (8) "Experience period" means the three consecutive experience years 22 |
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52 | 52 | | ending on the computation date, except that (A) if the employer's 23 |
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53 | 53 | | account has been chargeable with benefits for less than three years, the 24 |
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54 | 54 | | experience period shall consist of the greater of one or two consecutive 25 |
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55 | 55 | | experience years ending on the computation date, and (B) to the extent 26 |
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56 | 56 | | allowed by federal law and as necessary to respond to the spread of 27 |
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57 | 57 | | COVID-19, for any taxable year commencing on or after January 1, 2022, 28 |
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58 | 58 | | the experience period shall be calculated without regard to benefit 29 |
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59 | 59 | | charges and taxable wages for the experience years ending June 30, 2020, 30 |
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60 | 60 | | and June 30, 2021, when applicable; and 31 |
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61 | 61 | | (9) "COVID-19" means the respiratory disease designated by the 32 |
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62 | 62 | | World Health Organization on February 11, 2020, as coronavirus 2019, 33 |
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63 | 63 | | and any related mutation thereof recognized by the World Health 34 |
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64 | 64 | | Organization as a communicable respiratory disease. 35 |
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65 | 65 | | (b) (1) The administrator shall maintain for each employer, except 36 |
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66 | 66 | | reimbursing employers, an experience account in accordance with the 37 |
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67 | 67 | | provisions of this section. 38 |
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68 | 68 | | (2) With respect to each benefit year commencing on or after July 1, 39 |
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69 | 69 | | 1978, regular and additional benefits paid to an individual shall be 40 |
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70 | 70 | | allocated and charged to the accounts of the employers who paid the 41 |
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71 | 71 | | individual wages in his or her base period in accordance with the 42 Raised Bill No. 1237 |
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72 | 72 | | |
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73 | 73 | | |
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74 | 74 | | |
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75 | 75 | | LCO No. 6484 3 of 17 |
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76 | 76 | | |
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77 | 77 | | following provisions: The initial determination establishing a claimant's 43 |
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78 | 78 | | weekly benefit rate and maximum total benefits for his or her benefit 44 |
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79 | 79 | | year shall include, with respect to such claimant and such benefit year, 45 |
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80 | 80 | | a determination of the maximum liability for such benefits of each 46 |
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81 | 81 | | employer who paid wages to the claimant in his or her base period. An 47 |
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82 | 82 | | employer's maximum total liability for such benefits with respect to a 48 |
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83 | 83 | | claimant's benefit year shall bear the same ratio to the maximum total 49 |
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84 | 84 | | benefits payable to the claimant as the total wages paid by the employer 50 |
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85 | 85 | | to the claimant within his or her base period bears to the total wages 51 |
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86 | 86 | | paid by all employers to the claimant within his or her base period. This 52 |
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87 | 87 | | ratio shall also be applied to each benefit payment. The amount thus 53 |
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88 | 88 | | determined, rounded to the nearest dollar with fractions of a dollar of 54 |
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89 | 89 | | exactly fifty cents rounded upward, shall be charged to the employer's 55 |
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90 | 90 | | account. 56 |
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91 | 91 | | (c) (1) (A) Any week for which the employer has compensated the 57 |
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92 | 92 | | claimant in the form of wages in lieu of notice, dismissal payments or 58 |
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93 | 93 | | any similar payment for loss of wages shall be considered a week of 59 |
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94 | 94 | | employment for the purpose of determining employer chargeability. 60 |
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95 | 95 | | (B) No benefits shall be charged to any employer who paid wages of 61 |
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96 | 96 | | five hundred dollars or less to the claimant in his or her base period. 62 |
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97 | 97 | | (C) No dependency allowance paid to a claimant shall be charged to 63 |
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98 | 98 | | any employer. 64 |
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99 | 99 | | (D) In the event of a natural disaster declared by the President of the 65 |
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100 | 100 | | United States, no benefits paid on the basis of total or partial 66 |
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101 | 101 | | unemployment that is the result of physical damage to a place of 67 |
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102 | 102 | | employment caused by severe weather conditions including, but not 68 |
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103 | 103 | | limited to, hurricanes, snow storms, ice storms or flooding, or fire except 69 |
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104 | 104 | | where caused by the employer, shall be charged to any employer. 70 |
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105 | 105 | | (E) If the administrator finds that (i) an individual's most recent 71 |
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106 | 106 | | separation from a base period employer occurred under conditions that 72 |
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107 | 107 | | would result in disqualification by reason of subdivision (2), (6) or (9) of 73 |
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108 | 108 | | subsection (a) of section 31-236, or (ii) an individual was discharged for 74 Raised Bill No. 1237 |
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109 | 109 | | |
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110 | 110 | | |
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111 | 111 | | |
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112 | 112 | | LCO No. 6484 4 of 17 |
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113 | 113 | | |
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114 | 114 | | violating an employer's drug testing policy, provided the policy has 75 |
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115 | 115 | | been adopted and applied consistent with sections 31-51t to 31-51aa, 76 |
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116 | 116 | | inclusive, section 14-261b and any applicable federal law, no benefits 77 |
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117 | 117 | | paid thereafter to such individual with respect to any week of 78 |
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118 | 118 | | unemployment that is based upon wages paid by such employer with 79 |
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119 | 119 | | respect to employment prior to such separation shall be charged to such 80 |
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120 | 120 | | employer's account, provided such employer shall have filed a notice 81 |
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121 | 121 | | with the administrator within the time allowed for appeal in section 31-82 |
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122 | 122 | | 241. 83 |
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123 | 123 | | (F) No base period employer's account shall be charged with respect 84 |
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124 | 124 | | to benefits paid to a claimant if such employer continues to employ such 85 |
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125 | 125 | | claimant at the time the employer's account would otherwise have been 86 |
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126 | 126 | | charged to the same extent that he or she employed him or her during 87 |
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127 | 127 | | the individual's base period, provided the employer shall notify the 88 |
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128 | 128 | | administrator within the time allowed for appeal in section 31-241. 89 |
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129 | 129 | | (G) If a claimant has failed to accept suitable employment under the 90 |
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130 | 130 | | provisions of subdivision (1) of subsection (a) of section 31-236 and the 91 |
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131 | 131 | | disqualification has been imposed, the account of the employer who 92 |
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132 | 132 | | makes an offer of employment to a claimant who was a former 93 |
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133 | 133 | | employee shall not be charged with any benefit payments made to such 94 |
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134 | 134 | | claimant after such initial offer of reemployment until such time as such 95 |
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135 | 135 | | claimant resumes employment with such employer, provided such 96 |
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136 | 136 | | employer shall make application therefor in a form acceptable to the 97 |
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137 | 137 | | administrator. The administrator shall notify such employer whether or 98 |
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138 | 138 | | not his or her application is granted. Any decision of the administrator 99 |
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139 | 139 | | denying suspension of charges as herein provided may be appealed 100 |
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140 | 140 | | within the time allowed for appeal in section 31-241. 101 |
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141 | 141 | | (H) Fifty per cent of benefits paid to a claimant under the federal-state 102 |
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142 | 142 | | extended duration unemployment benefits program established by the 103 |
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143 | 143 | | federal Employment Security Act shall be charged to the experience 104 |
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144 | 144 | | accounts of the claimant's base period employers in the same manner as 105 |
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145 | 145 | | the regular benefits paid for such benefit year. 106 Raised Bill No. 1237 |
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146 | 146 | | |
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147 | 147 | | |
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148 | 148 | | |
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149 | 149 | | LCO No. 6484 5 of 17 |
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150 | 150 | | |
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151 | 151 | | (I) No base period employer's account shall be charged with respect 107 |
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152 | 152 | | to benefits paid to a claimant who voluntarily left suitable work with 108 |
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153 | 153 | | such employer (i) to care for a seriously ill spouse, parent or child, or (ii) 109 |
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154 | 154 | | due to the discontinuance of the transportation used by the claimant to 110 |
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155 | 155 | | get to and from work, as provided in subparagraphs (A)(ii) and (A)(iii) 111 |
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156 | 156 | | of subdivision (2) of subsection (a) of section 31-236. 112 |
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157 | 157 | | (J) No base period employer's account shall be charged with respect 113 |
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158 | 158 | | to benefits paid to a claimant who has been discharged or suspended 114 |
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159 | 159 | | because the claimant has been disqualified from performing the work 115 |
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160 | 160 | | for which he or she was hired due to the loss of such claimant's operator 116 |
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161 | 161 | | license as a result of a drug or alcohol test or testing program conducted 117 |
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162 | 162 | | in accordance with section 14-44k, 14-227a or 14-227b while the claimant 118 |
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163 | 163 | | was off duty. 119 |
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164 | 164 | | (K) No base period employer's account shall be charged with respect 120 |
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165 | 165 | | to benefits paid to a claimant whose separation from employment is 121 |
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166 | 166 | | attributable to the return of an individual who was absent from work 122 |
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167 | 167 | | due to a bona fide leave taken pursuant to sections 31-49f to 31-49t, 123 |
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168 | 168 | | inclusive, or 31-51kk to 31-51qq, inclusive. 124 |
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169 | 169 | | (L) On and after January 1, 2024, (i) no base period employer's 125 |
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170 | 170 | | account shall be charged with respect to benefits paid to a claimant 126 |
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171 | 171 | | through the voluntary shared work unemployment compensation 127 |
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172 | 172 | | program established pursuant to section 31-274j, if a claim for benefits 128 |
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173 | 173 | | is filed in a week in which the average rate of total unemployment in the 129 |
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174 | 174 | | state equals or exceeds six and one-half per cent based on the most 130 |
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175 | 175 | | recent three months of data published by the Labor Commissioner, and 131 |
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176 | 176 | | (ii) the Labor Commissioner may determine that no base period 132 |
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177 | 177 | | employer's account shall be charged with respect to benefits paid to a 133 |
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178 | 178 | | claimant through the voluntary shared work unemployment 134 |
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179 | 179 | | compensation program established pursuant to section 31-274j, if a 135 |
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180 | 180 | | claim for benefits is filed in a week in which the average rate of total 136 |
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181 | 181 | | unemployment in the state equals or exceeds eight per cent in the most 137 |
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182 | 182 | | recent one month of data published by the Labor Commissioner. 138 Raised Bill No. 1237 |
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183 | 183 | | |
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184 | 184 | | |
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185 | 185 | | |
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186 | 186 | | LCO No. 6484 6 of 17 |
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187 | 187 | | |
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188 | 188 | | (2) All benefits paid that are not charged to any employer shall be 139 |
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189 | 189 | | pooled. 140 |
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190 | 190 | | (3) The noncharging provisions of this chapter, except subparagraphs 141 |
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191 | 191 | | (D), (F) and (K) of subdivision (1) of this subsection, shall not apply to 142 |
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192 | 192 | | reimbursing employers. 143 |
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193 | 193 | | (d) (1) The standard rate of contributions shall be five and four-tenths 144 |
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194 | 194 | | per cent. Each employer who has not been chargeable with benefits, for 145 |
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195 | 195 | | a sufficient period of time to have his or her rate computed under this 146 |
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196 | 196 | | section shall pay contributions at a rate that is the higher of (A) one per 147 |
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197 | 197 | | cent, or (B) the state's five-year benefit cost rate. For purposes of this 148 |
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198 | 198 | | subsection, the state's five-year benefit cost rate shall be computed 149 |
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199 | 199 | | annually on or before June thirtieth and shall be derived by dividing the 150 |
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200 | 200 | | total dollar amount of benefits paid to claimants under this chapter 151 |
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201 | 201 | | during the five consecutive calendar years immediately preceding the 152 |
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202 | 202 | | computation date by the five-year payroll during the same period, 153 |
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203 | 203 | | except that, to the extent allowed by federal law and as necessary to 154 |
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204 | 204 | | respond to the spread of COVID-19, for any taxable year commencing 155 |
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205 | 205 | | on or after January 1, 2022, the state's five-year benefit cost rate shall be 156 |
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206 | 206 | | calculated without regard to benefit payments and taxable wages for 157 |
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207 | 207 | | calendar years 2020 and 2021, when applicable. 158 |
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208 | 208 | | (2) For the period beginning January 1, 2023, and ending December 159 |
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209 | 209 | | 31, 2023, the state's five-year benefit cost rate shall be calculated 160 |
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210 | 210 | | pursuant to the formula under subdivision (1) of this subsection minus 161 |
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211 | 211 | | two-tenths of one per cent. 162 |
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212 | 212 | | (3) If the resulting quotient in this subsection is not an exact multiple 163 |
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213 | 213 | | of one-tenth of one per cent, the five-year benefit cost rate shall be the 164 |
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214 | 214 | | next higher such multiple. 165 |
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215 | 215 | | (e) (1) (A) As of each June thirtieth, the administrator shall determine 166 |
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216 | 216 | | the charged tax rate for each qualified employer. Such rate shall be 167 |
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217 | 217 | | obtained by calculating a benefit ratio for each qualified employer. The 168 |
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218 | 218 | | employer's benefit ratio shall be the quotient obtained by dividing the 169 |
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219 | 219 | | total amount chargeable to the employer's experience account during 170 Raised Bill No. 1237 |
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220 | 220 | | |
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221 | 221 | | |
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222 | 222 | | |
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223 | 223 | | LCO No. 6484 7 of 17 |
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224 | 224 | | |
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225 | 225 | | the experience period by the total of his or her taxable wages during 171 |
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226 | 226 | | such experience period that have been reported by the employer to the 172 |
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227 | 227 | | administrator on or before the following September thirtieth. The 173 |
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228 | 228 | | resulting quotient, expressed as a per cent, shall constitute the 174 |
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229 | 229 | | employer's charged rate, except that each employer's charged rate for 175 |
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230 | 230 | | calendar years 2024, 2025, 2026 and 2027 shall be divided by 1.471, 1.269, 176 |
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231 | 231 | | 1.125 and 1.053, respectively. 177 |
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232 | 232 | | (i) For calendar years commencing prior to January 1, 2024, if the 178 |
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233 | 233 | | resulting quotient is not an exact multiple of one-tenth of one per cent, 179 |
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234 | 234 | | the charged rate shall be the next higher such multiple, except that if the 180 |
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235 | 235 | | resulting quotient is less than five-tenths of one per cent, the charged 181 |
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236 | 236 | | rate shall be five-tenths of one per cent and if the resulting quotient is 182 |
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237 | 237 | | greater than five and four-tenths per cent, the charged rate shall be five 183 |
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238 | 238 | | and four-tenths per cent. 184 |
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239 | 239 | | (ii) [For] Subject to the provisions of subparagraph (B) of this 185 |
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240 | 240 | | subdivision, for the calendar [years] year commencing [on or after] 186 |
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241 | 241 | | January 1, 2024, if the resulting quotient is not an exact multiple of one-187 |
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242 | 242 | | tenth of one per cent, the charged rate shall be the next higher such 188 |
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243 | 243 | | multiple, except that if the resulting quotient is less than one-tenth of 189 |
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244 | 244 | | one per cent, the charged rate shall be one-tenth of one per cent and if 190 |
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245 | 245 | | the resulting quotient is greater than [ten] six and four-tenths per cent, 191 |
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246 | 246 | | the charged rate shall be [ten] six and four-tenths per cent. 192 |
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247 | 247 | | (iii) Subject to the provisions of subparagraph (B) of this subdivision, 193 |
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248 | 248 | | for the calendar year commencing January 1, 2025, if the resulting 194 |
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249 | 249 | | quotient is not an exact multiple of one-tenth of one per cent, the 195 |
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250 | 250 | | charged rate shall be the next higher such multiple, except that if the 196 |
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251 | 251 | | resulting quotient is less than one-tenth of one per cent, the charged rate 197 |
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252 | 252 | | shall be one-tenth of one per cent and if the resulting quotient is greater 198 |
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253 | 253 | | than seven and four-tenths per cent, the charged rate shall be seven and 199 |
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254 | 254 | | four-tenths per cent. 200 |
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255 | 255 | | (iv) Subject to the provisions of subparagraph (B) of this subdivision, 201 |
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256 | 256 | | for the calendar year commencing January 1, 2026, if the resulting 202 Raised Bill No. 1237 |
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257 | 257 | | |
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258 | 258 | | |
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259 | 259 | | |
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260 | 260 | | LCO No. 6484 8 of 17 |
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261 | 261 | | |
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262 | 262 | | quotient is not an exact multiple of one-tenth of one per cent, the 203 |
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263 | 263 | | charged rate shall be the next higher such multiple, except that if the 204 |
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264 | 264 | | resulting quotient is less than one-tenth of one per cent, the charged rate 205 |
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265 | 265 | | shall be one-tenth of one per cent and if the resulting quotient is greater 206 |
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266 | 266 | | than eight and four-tenths per cent, the charged rate shall be eight and 207 |
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267 | 267 | | four-tenths per cent. 208 |
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268 | 268 | | (v) Subject to the provisions of subparagraph (B) of this subdivision, 209 |
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269 | 269 | | for the calendar year commencing January 1, 2027, if the resulting 210 |
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270 | 270 | | quotient is not an exact multiple of one-tenth of one per cent, the 211 |
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271 | 271 | | charged rate shall be the next higher such multiple, except that if the 212 |
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272 | 272 | | resulting quotient is less than one-tenth of one per cent, the charged rate 213 |
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273 | 273 | | shall be one-tenth of one per cent and if the resulting quotient is greater 214 |
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274 | 274 | | than nine and four-tenths per cent, the charged rate shall be nine and 215 |
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275 | 275 | | four-tenths per cent. 216 |
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276 | 276 | | (vi) For calendar years commencing on or after January 1, 2028, if the 217 |
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277 | 277 | | resulting quotient is not an exact multiple of one-tenth of one per cent, 218 |
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278 | 278 | | the charged rate shall be the next higher such multiple, except that if the 219 |
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279 | 279 | | resulting quotient is less than one-tenth of one per cent, the charged rate 220 |
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280 | 280 | | shall be one-tenth of one per cent and if the resulting quotient is greater 221 |
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281 | 281 | | than ten per cent, the charged rate shall be ten per cent. 222 |
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282 | 282 | | (B) For the calendar years commencing on or after January 1, 2024, to 223 |
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283 | 283 | | January 1, 2027, inclusive, no qualifying employer's charged rate shall 224 |
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284 | 284 | | increase by more than twenty-five per cent of such employer's charged 225 |
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285 | 285 | | rate for the prior calendar year. 226 |
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286 | 286 | | [(B)] (C) For [the] calendar years commencing on [and] or after 227 |
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287 | 287 | | January 1, 2024, if the benefit ratios calculated pursuant to subparagraph 228 |
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288 | 288 | | (A) of this subdivision would result in the average benefit ratio of all 229 |
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289 | 289 | | employers within a sector of the North American Industry Classification 230 |
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290 | 290 | | System increasing over the prior calendar year's such average by an 231 |
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291 | 291 | | amount equal to or greater than .01, the benefit ratio of each employer 232 |
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292 | 292 | | within such sector shall be adjusted downward by an amount equal to 233 |
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293 | 293 | | one-half of the increase in the average benefit ratio of all employers 234 Raised Bill No. 1237 |
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294 | 294 | | |
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295 | 295 | | |
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296 | 296 | | |
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297 | 297 | | LCO No. 6484 9 of 17 |
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298 | 298 | | |
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299 | 299 | | within such sector. Sectors 21 and 23 of said system shall be considered 235 |
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300 | 300 | | one sector for the purposes of this subparagraph. 236 |
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301 | 301 | | (2) (A) Each contributing employer subject to this chapter shall pay 237 |
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302 | 302 | | an assessment to the administrator at a rate established by the 238 |
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303 | 303 | | administrator sufficient to pay interest due on advances from the federal 239 |
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304 | 304 | | unemployment account under Title XII of the Social Security Act (42 U.S. 240 |
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305 | 305 | | Code Sections 1321 to 1324). The administrator shall establish the 241 |
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306 | 306 | | necessary procedures for payment of such assessments. The amounts 242 |
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307 | 307 | | received by the administrator based on such assessments shall be paid 243 |
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308 | 308 | | over to the State Treasurer and credited to the General Fund. Any 244 |
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309 | 309 | | amount remaining from such assessments, after all such federal interest 245 |
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310 | 310 | | charges have been paid, shall be transferred to the Employment Security 246 |
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311 | 311 | | Administration Fund or to the Unemployment Compensation Advance 247 |
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312 | 312 | | Fund established under section 31-264a, (i) to the extent that any federal 248 |
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313 | 313 | | interest charges have been paid from the Unemployment Compensation 249 |
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314 | 314 | | Advance Fund, (ii) to the extent that the administrator determines that 250 |
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315 | 315 | | reimbursement is appropriate, or (iii) otherwise to the extent that 251 |
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316 | 316 | | reimbursement of the advance fund is the appropriate accounting 252 |
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317 | 317 | | principle governing the use of the assessments. Sections 31-265 to 31-253 |
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318 | 318 | | 274, inclusive, shall apply to the collection of such assessments. 254 |
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319 | 319 | | (B) On and after January 1, 1994, and conditioned upon the issuance 255 |
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320 | 320 | | of any revenue bonds pursuant to section 31-264b, each contributing 256 |
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321 | 321 | | employer shall also pay an assessment to the administrator at a rate 257 |
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322 | 322 | | established by the administrator sufficient to pay the interest due on 258 |
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323 | 323 | | advances from the Unemployment Compensation Advance Fund and 259 |
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324 | 324 | | reimbursements required for advances from the Unemployment 260 |
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325 | 325 | | Compensation Advance Fund, computed in accordance with subsection 261 |
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326 | 326 | | (h) of section 31-264a. The administrator shall establish the assessments 262 |
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327 | 327 | | as a percentage of the charged tax rate for each employer pursuant to 263 |
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328 | 328 | | subdivision (1) of this subsection. The administrator shall establish the 264 |
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329 | 329 | | necessary procedures for billing, payment and collection of the 265 |
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330 | 330 | | assessments. Sections 31-265 to 31-274, inclusive, shall apply to the 266 |
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331 | 331 | | collection of such assessments by the administrator. The payments 267 |
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332 | 332 | | received by the administrator based on the assessments, excluding 268 Raised Bill No. 1237 |
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333 | 333 | | |
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334 | 334 | | |
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335 | 335 | | |
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336 | 336 | | LCO No. 6484 10 of 17 |
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337 | 337 | | |
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338 | 338 | | interest and penalties on past due assessments, are hereby pledged and 269 |
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339 | 339 | | shall be paid over to the State Treasurer for credit to the Unemployment 270 |
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340 | 340 | | Compensation Advance Fund. 271 |
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341 | 341 | | (f) (1) (A) For each calendar year commencing with calendar year 272 |
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342 | 342 | | 1994 but prior to calendar year 2013, the administrator shall establish a 273 |
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343 | 343 | | fund balance tax rate sufficient to maintain a balance in the 274 |
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344 | 344 | | Unemployment Compensation Trust Fund equal to eight-tenths of one 275 |
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345 | 345 | | per cent of the total wages paid to workers covered under this chapter 276 |
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346 | 346 | | by contributing employers during the year ending the last preceding 277 |
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347 | 347 | | June thirtieth. If the fund balance tax rate established by the 278 |
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348 | 348 | | administrator results in a fund balance in excess of said per cent as of 279 |
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349 | 349 | | December thirtieth of any year, the administrator shall, in the year next 280 |
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350 | 350 | | following, establish a fund balance tax rate sufficient to eliminate the 281 |
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351 | 351 | | fund balance in excess of said per cent. 282 |
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352 | 352 | | (B) For each calendar year commencing with calendar year 2013, the 283 |
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353 | 353 | | administrator shall establish a fund balance tax rate sufficient to 284 |
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354 | 354 | | maintain a balance in the Unemployment Compensation Trust Fund 285 |
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355 | 355 | | that results in an average [high cost] high-cost multiple equal to 0.5. 286 |
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356 | 356 | | (C) Commencing with calendar year 2014 and ending with calendar 287 |
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357 | 357 | | year 2018, the administrator shall establish a fund balance tax rate 288 |
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358 | 358 | | sufficient to maintain a balance in the Unemployment Compensation 289 |
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359 | 359 | | Trust Fund that results in an average [high cost] high-cost multiple that 290 |
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360 | 360 | | is increased by 0.1 from the preceding calendar year. 291 |
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361 | 361 | | (D) Commencing with calendar year 2019, the administrator shall 292 |
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362 | 362 | | establish a fund balance tax rate sufficient to maintain a balance in the 293 |
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363 | 363 | | Unemployment Compensation Trust Fund that results in an average 294 |
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364 | 364 | | [high cost] high-cost multiple equal to 1.0. If the fund balance tax rate 295 |
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365 | 365 | | established by the administrator results in a fund balance in excess of 296 |
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366 | 366 | | the amount prescribed in this subdivision as of December thirtieth of 297 |
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367 | 367 | | any year, the administrator shall, in the year next following, establish a 298 |
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368 | 368 | | fund balance rate sufficient to eliminate the fund balance in excess of 299 |
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369 | 369 | | said amount. 300 Raised Bill No. 1237 |
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370 | 370 | | |
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371 | 371 | | |
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372 | 372 | | |
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373 | 373 | | LCO No. 6484 11 of 17 |
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374 | 374 | | |
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375 | 375 | | (E) The assessment levied by the administrator at any time (i) during 301 |
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376 | 376 | | a calendar year commencing on or after January 1, 1994, but prior to 302 |
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377 | 377 | | January 1, 1999, shall not exceed one and five-tenths per cent, (ii) during 303 |
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378 | 378 | | a calendar year commencing on or after January 1, 1999, but prior to 304 |
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379 | 379 | | January 1, 2013, shall not exceed one and four-tenths per cent, and shall 305 |
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380 | 380 | | not be calculated to result in a fund balance in excess of eight-tenths of 306 |
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381 | 381 | | one per cent of such total wages, (iii) during a calendar year 307 |
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382 | 382 | | commencing on or after January 1, 2013, but prior to January 1, [2024] 308 |
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383 | 383 | | 2023, shall not exceed one and four-tenths per cent and shall not be 309 |
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384 | 384 | | calculated to result in a fund balance in excess of the amounts prescribed 310 |
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385 | 385 | | in this subdivision, (iv) during the calendar year [beginning] 311 |
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386 | 386 | | commencing on January 1, 2023, [and ending December 31, 2023,] shall 312 |
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387 | 387 | | not exceed one and two-tenths per cent and shall not be calculated to 313 |
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388 | 388 | | result in a fund balance in excess of the amounts prescribed in this 314 |
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389 | 389 | | subdivision, and (v) during a calendar year commencing on or after 315 |
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390 | 390 | | January 1, 2024, shall not exceed one per cent and shall not be calculated 316 |
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391 | 391 | | to result in a fund balance in excess of the amounts prescribed in this 317 |
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392 | 392 | | subdivision. 318 |
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393 | 393 | | (F) During a calendar year that begins during an economic recession 319 |
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394 | 394 | | declared by the National Bureau of Economic Research on or before 320 |
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395 | 395 | | November fifteenth of the prior calendar year, the assessment levied by 321 |
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396 | 396 | | the administrator shall not exceed one-half of one per cent unless such 322 |
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397 | 397 | | maximum rate jeopardizes the state's access to interest-free federal 323 |
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398 | 398 | | advances, including, but not limited to, those offered pursuant to 42 324 |
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399 | 399 | | USC 1322 and subject to the funding goals established in 20 CFR 606.32, 325 |
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400 | 400 | | as amended from time to time. 326 |
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401 | 401 | | (2) The average [high cost] high-cost multiple shall be computed as 327 |
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402 | 402 | | follows: The result of the balance of the Unemployment Compensation 328 |
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403 | 403 | | Trust Fund on December thirtieth immediately preceding the new rate 329 |
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404 | 404 | | year divided by the total wages paid to workers covered under this 330 |
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405 | 405 | | chapter by contributing employers for the twelve months ending on the 331 |
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406 | 406 | | December thirtieth immediately preceding the new rate year shall be the 332 |
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407 | 407 | | numerator and the average of the three highest calendar benefit cost 333 |
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408 | 408 | | rates in (A) the last twenty years, or (B) a period including the last three 334 Raised Bill No. 1237 |
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409 | 409 | | |
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410 | 410 | | |
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411 | 411 | | |
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412 | 412 | | LCO No. 6484 12 of 17 |
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413 | 413 | | |
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414 | 414 | | recessions, whichever is longer, shall be the denominator. Benefit cost 335 |
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415 | 415 | | rates are computed as benefits paid including the state's share of 336 |
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416 | 416 | | extended benefits but excluding reimbursable benefits as a per cent of 337 |
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417 | 417 | | total wages in covered employment. The results rounded to the next 338 |
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418 | 418 | | lower one decimal place will be the average [high cost] high-cost 339 |
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419 | 419 | | multiple. 340 |
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420 | 420 | | (g) Each qualified employer's contribution rate for each calendar year 341 |
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421 | 421 | | after 1973 shall be a percentage rate equal to the sum of his or her 342 |
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422 | 422 | | charged tax rate as of the June thirtieth preceding such calendar year 343 |
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423 | 423 | | and the fund balance tax rate as of December thirtieth preceding such 344 |
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424 | 424 | | calendar year. 345 |
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425 | 425 | | (h) (1) With respect to each benefit year commencing on or after July 346 |
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426 | 426 | | 1, 1978, notice of determination of the claimant's benefit entitlement for 347 |
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427 | 427 | | such benefit year shall include notice of the allocation of benefit charges 348 |
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428 | 428 | | of the claimant's base period employers and each such employer shall 349 |
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429 | 429 | | be provided a copy of such notice of determination and shall be an 350 |
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430 | 430 | | interested party thereto. Such determination shall be final unless the 351 |
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431 | 431 | | claimant or any of such employers files an appeal from such decision in 352 |
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432 | 432 | | accordance with the provisions of section 31-241. 353 |
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433 | 433 | | (2) The administrator shall, not less frequently than once each 354 |
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434 | 434 | | calendar quarter, provide a statement of charges to each employer to 355 |
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435 | 435 | | whose experience record any charges have been made since the last 356 |
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436 | 436 | | previous such statement. Such statement shall show, with respect to 357 |
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437 | 437 | | each week for which benefits have been paid and charged, the name and 358 |
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438 | 438 | | Social Security account number of the claimant who was paid the 359 |
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439 | 439 | | benefit, the amount of the benefits charged for such week and the total 360 |
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440 | 440 | | amount charged in the quarter. 361 |
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441 | 441 | | (3) The statement of charges provided for in subdivision (2) of this 362 |
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442 | 442 | | subsection shall constitute notice to the employer that it has been 363 |
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443 | 443 | | determined that the benefits reported in such statement were properly 364 |
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444 | 444 | | payable under this chapter to the claimants for the weeks and in the 365 |
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445 | 445 | | amounts shown in such statements. If the employer contends that 366 Raised Bill No. 1237 |
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446 | 446 | | |
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447 | 447 | | |
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448 | 448 | | |
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449 | 449 | | LCO No. 6484 13 of 17 |
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450 | 450 | | |
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451 | 451 | | benefits have been improperly charged due to fraud or error, a written 367 |
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452 | 452 | | protest setting forth reasons therefor shall be filed with the 368 |
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453 | 453 | | administrator within sixty days of the date the quarterly statement was 369 |
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454 | 454 | | provided. An eligibility issue shall not be reopened on the basis of such 370 |
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455 | 455 | | quarterly statement if notification of such eligibility issue had 371 |
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456 | 456 | | previously been given to the employer under the provisions of section 372 |
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457 | 457 | | 31-241, and he or she failed to file a timely appeal therefrom or had the 373 |
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458 | 458 | | issue finally resolved against him or her. 374 |
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459 | 459 | | (4) The provisions of subdivisions (2) and (3) of this subsection shall 375 |
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460 | 460 | | not apply to combined wage claims paid under subsection (b) of section 376 |
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461 | 461 | | 31-255. For such combined wage claims paid under the unemployment 377 |
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462 | 462 | | law of other states, the administrator shall, each calendar quarter, 378 |
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463 | 463 | | provide a statement of charges to each employer whose experience 379 |
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464 | 464 | | record has been charged since the previous such statement. Such 380 |
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465 | 465 | | statement shall show the name and Social Security number of the 381 |
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466 | 466 | | claimant who was paid the benefits and the total amount of the benefits 382 |
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467 | 467 | | charged in the quarter. 383 |
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468 | 468 | | (i) (1) At the written request of any employer that holds at least eighty 384 |
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469 | 469 | | per cent controlling interest in another employer or employers, the 385 |
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470 | 470 | | administrator may mingle the experience rating records of such 386 |
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471 | 471 | | dominant and controlled employers as if they constituted a single 387 |
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472 | 472 | | employer, subject to such regulations as the administrator may make 388 |
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473 | 473 | | and publish concerning the establishment, conduct and dissolution of 389 |
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474 | 474 | | such joint experience rating records. 390 |
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475 | 475 | | (2) The executors, administrators, successors or assigns of any former 391 |
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476 | 476 | | employer shall acquire the experience rating records of the predecessor 392 |
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477 | 477 | | employer with the following exception: The experience of a predecessor 393 |
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478 | 478 | | employer, who leased premises and equipment from a third party and 394 |
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479 | 479 | | who has not transferred any assets to the successor, shall not be 395 |
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480 | 480 | | transferred if there is no common controlling interest in the predecessor 396 |
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481 | 481 | | and successor entities. 397 |
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482 | 482 | | (3) The administrator is authorized to establish such regulations 398 Raised Bill No. 1237 |
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483 | 483 | | |
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484 | 484 | | |
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485 | 485 | | |
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486 | 486 | | LCO No. 6484 14 of 17 |
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487 | 487 | | |
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488 | 488 | | governing joint accounts as may be necessary to comply with the 399 |
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489 | 489 | | requirements of the federal Unemployment Tax Act. 400 |
---|
490 | 490 | | (j) (1) (A) Each employer subject to this chapter shall submit 401 |
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491 | 491 | | quarterly, on forms supplied by the administrator, a listing of wage 402 |
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492 | 492 | | information, including the name of each employee receiving wages in 403 |
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493 | 493 | | employment subject to this chapter, such employee's Social Security 404 |
---|
494 | 494 | | account number and the amount of wages paid to such employee during 405 |
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495 | 495 | | such calendar quarter. 406 |
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496 | 496 | | (B) Commencing with the third calendar quarter of 2024, unless 407 |
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497 | 497 | | waived pursuant to subdivision (5) of this subsection, any employer 408 |
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498 | 498 | | subject to this chapter, with one hundred or more employees, shall 409 |
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499 | 499 | | include in the quarterly filing submitted pursuant to subparagraph (A) 410 |
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500 | 500 | | of this subdivision, the following data for each employee receiving 411 |
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501 | 501 | | wages in employment subject to this chapter: Such employee's gender 412 |
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502 | 502 | | identity, age, race, ethnicity, veteran status, disability status, highest 413 |
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503 | 503 | | education completed, home address, address of primary work site, 414 |
---|
504 | 504 | | occupational code under the standard occupational classification 415 |
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505 | 505 | | system of the Bureau of Labor Statistics of the United States Department 416 |
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506 | 506 | | of Labor, hours worked, days worked, salary or hourly wage, 417 |
---|
507 | 507 | | employment start date in the current job title and, if applicable, 418 |
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508 | 508 | | employment end date. The information required pursuant to this 419 |
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509 | 509 | | subparagraph shall be included in the quarterly filings of employers 420 |
---|
510 | 510 | | subject to this chapter with ninety-nine or fewer employees 421 |
---|
511 | 511 | | commencing with the third calendar quarter of 2026, except employers 422 |
---|
512 | 512 | | subject to this chapter with forty-nine or fewer employees without an 423 |
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513 | 513 | | electronic payroll system shall include such information commencing 424 |
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514 | 514 | | with the third calendar quarter of 2028. Nothing in this subparagraph 425 |
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515 | 515 | | shall be construed to require an employee to provide information about 426 |
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516 | 516 | | gender identity, age, race, ethnicity, veteran status or disability status if 427 |
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517 | 517 | | not otherwise required by law. The administrator may issue guidance 428 |
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518 | 518 | | defining each such data field. 429 |
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519 | 519 | | (2) Each employer subject to this chapter that reports wages for 430 |
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520 | 520 | | employees receiving wages in employment subject to this chapter, and 431 Raised Bill No. 1237 |
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521 | 521 | | |
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522 | 522 | | |
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523 | 523 | | |
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524 | 524 | | LCO No. 6484 15 of 17 |
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525 | 525 | | |
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526 | 526 | | each person or organization that, as an agent, reports wages for 432 |
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527 | 527 | | employees receiving wages in employment subject to this chapter on 433 |
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528 | 528 | | behalf of one or more employers subject to this chapter shall submit 434 |
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529 | 529 | | quarterly the information required by subdivision (1) of this subsection 435 |
---|
530 | 530 | | electronically, in a format and manner prescribed by the administrator, 436 |
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531 | 531 | | unless such employer or agent receives a waiver pursuant to 437 |
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532 | 532 | | subdivision (5) of this subsection. 438 |
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533 | 533 | | (3) Any employer that fails to submit the information required by 439 |
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534 | 534 | | subparagraph (A) of subdivision (1) of this subsection in a timely 440 |
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535 | 535 | | manner, as determined by the administrator, shall be liable to the 441 |
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536 | 536 | | administrator for a late filing fee of twenty-five dollars. Any employer 442 |
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537 | 537 | | that fails to submit the information required by subparagraph (A) of 443 |
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538 | 538 | | subdivision (1) of this subsection under a proper state unemployment 444 |
---|
539 | 539 | | compensation registration number shall be liable to the administrator 445 |
---|
540 | 540 | | for a fee of twenty-five dollars. All fees collected by the administrator 446 |
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541 | 541 | | under this subdivision shall be deposited in the Employment Security 447 |
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542 | 542 | | Administration Fund. 448 |
---|
543 | 543 | | (4) Each employer subject to this chapter that makes contributions or 449 |
---|
544 | 544 | | payments in lieu of contributions for employees receiving wages in 450 |
---|
545 | 545 | | employment subject to this chapter, and each person or organization 451 |
---|
546 | 546 | | that, as an agent, makes contributions or payments in lieu of 452 |
---|
547 | 547 | | contributions for employees receiving wages in employment subject to 453 |
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548 | 548 | | this chapter on behalf of one or more employers subject to this chapter 454 |
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549 | 549 | | shall make such contributions or payments in lieu of contributions 455 |
---|
550 | 550 | | electronically. 456 |
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551 | 551 | | (5) Any employer or any person or organization that, as an agent, is 457 |
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552 | 552 | | required to submit information pursuant to subdivision (2) of this 458 |
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553 | 553 | | subsection, make contributions or payments in lieu of contributions 459 |
---|
554 | 554 | | pursuant to subdivision (4) of this subsection or submit information 460 |
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555 | 555 | | pursuant to subparagraph (B) of subdivision (1) of this subsection may 461 |
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556 | 556 | | request in writing, not later than thirty days prior to the date a 462 |
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557 | 557 | | submission of information or a contribution or payment in lieu of 463 |
---|
558 | 558 | | contribution is due, that the administrator waive such requirement. The 464 Raised Bill No. 1237 |
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559 | 559 | | |
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560 | 560 | | |
---|
561 | 561 | | |
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562 | 562 | | LCO No. 6484 16 of 17 |
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563 | 563 | | |
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564 | 564 | | administrator shall grant such request if, on the basis of information 465 |
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565 | 565 | | provided by such employer or person or organization and on a form 466 |
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566 | 566 | | prescribed by the administrator, the administrator finds that there 467 |
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567 | 567 | | would be undue hardship for such employer or person or organization. 468 |
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568 | 568 | | The administrator shall promptly inform such employer or person or 469 |
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569 | 569 | | organization of the granting or rejection of the requested waiver. The 470 |
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570 | 570 | | decision of the administrator shall be final and not subject to further 471 |
---|
571 | 571 | | review or appeal. Such waiver shall be effective for twelve months from 472 |
---|
572 | 572 | | the date such waiver is granted. 473 |
---|
573 | 573 | | (6) The name and identifying information of an employer and 474 |
---|
574 | 574 | | personally identifiable information about an employee provided to the 475 |
---|
575 | 575 | | administrator pursuant to subparagraph (B) of subdivision (1) of this 476 |
---|
576 | 576 | | subsection shall not be deemed to be a public record for purposes of the 477 |
---|
577 | 577 | | Freedom of Information Act, as defined in section 1-200, and shall not 478 |
---|
578 | 578 | | be subject to disclosure under the provisions of section 1-210. The 479 |
---|
579 | 579 | | administrator or the department may share information provided 480 |
---|
580 | 580 | | pursuant to subparagraph (B) of subdivision (1) of this subsection with 481 |
---|
581 | 581 | | another state agency, another state or territory, the federal government 482 |
---|
582 | 582 | | or to support a data request submitted through CP20 WIN in accordance 483 |
---|
583 | 583 | | with the policies and procedures of CP20 WIN, established pursuant to 484 |
---|
584 | 584 | | section 10a-57g, for the purposes of program administration, audit, 485 |
---|
585 | 585 | | evaluation or research, provided the recipient of such data enters into a 486 |
---|
586 | 586 | | data sharing agreement pursuant to section 4-67aa if such recipient is 487 |
---|
587 | 587 | | not a state agency, another state or territory, or the federal government. 488 |
---|
588 | 588 | | (k) The employer may inspect his or her account records in the office 489 |
---|
589 | 589 | | of the Employment Security Division at any reasonable time. 490 |
---|
590 | 590 | | This act shall take effect as follows and shall amend the following |
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591 | 591 | | sections: |
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592 | 592 | | |
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593 | 593 | | Section 1 from passage 31-225a |
---|
594 | 594 | | Raised Bill No. 1237 |
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595 | 595 | | |
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596 | 596 | | |
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597 | 597 | | |
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598 | 598 | | LCO No. 6484 17 of 17 |
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599 | 599 | | |
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600 | 600 | | Statement of Purpose: |
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601 | 601 | | To phase-in the increase in the unemployment insurance maximum |
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602 | 602 | | charged rate and implement an annual maximum increase percentage |
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603 | 603 | | for employers during the phase-in. |
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604 | 604 | | [Proposed deletions are enclosed in brackets. Proposed additions are indicated by underline, except |
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605 | 605 | | that when the entire text of a bill or resolution or a section of a bill or resolution is new, it is not |
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606 | 606 | | underlined.] |
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607 | 607 | | |
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