Session of 2024
SENATE BILL No. 478
By Committee on Commerce
2-7
AN ACT concerning employment security law; relating to the definition of
benefit year, temporary unemployment, wages, statewide average
annual wage and statewide average weekly wage; referencing certain
new definitions for purposes of the annual determination by the
secretary of the maximum weekly benefit amount; requiring electronic
filing of wage reports, contribution returns and payments and interest
assessments for employers with 25 or more employees; establishing
minimum qualifications for candidates for membership on the
employment security board of review and initial review of such
candidates by the director of unemployment; extending when the
mandatory combination of rates and the establishment of a new account
due to a business acquisition must occur from the beginning of the
following quarter to the beginning of the following year; making
certain changes to the schedules governing employer contribution rates;
removing obsolete language pertaining to the employment security
interest assessment fund and abolishing such fund; requiring the
secretary to create an audit process within the new unemployment
insurance information technology system to permit employers to
submit reports regarding work search, the my reemployment plan and
claimants who do not provide notification or appear for scheduled
interviews; providing for notices by the secretary to active employers
regarding work search noncompliance reporting options; confirming
the legislative coordinating council's authority to extend the new
unemployment insurance information technology system's
implementation date retroactively and as often as deemed appropriate
by the council; requiring the secretary to notify the council of the need
for an extension; authorizing the secretary to extend temporary
unemployment for limited periods upon request by employers and
allowing for additional temporary unemployment when requested by
employers engaged in certain industries; requiring the secretary to
annually post on the secretary's website certain additional calculations
and data; changing the timing of employer benefit charge notices from
annually to quarterly; removing the exemption for benefit charges less
than $100; amending K.S.A. 44-704, 44-705, 44-709, 44-710, 44-710b,
44-717, 44-771, 44-772 and 44-774 and K.S.A. 2023 Supp. 44-703, 44-
710a and 44-775 and repealing the existing sections.
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WHEREAS, The amendments made to the employment security law by
this act shall be known as the Kansas unemployment insurance state trust
fund solvency, system integrity and tax credit preservation act of 2024.
Now, therefore:
Be it enacted by the Legislature of the State of Kansas:
Section 1. K.S.A. 2023 Supp. 44-703 is hereby amended to read as
follows: 44-703. As used in this act, unless the context clearly requires
otherwise:
(a) (1) "Annual payroll" means the total amount of wages paid or
payable by an employer during the calendar year.
(2) "Average annual payroll" means the average of the annual
payrolls of any employer for the last three calendar years immediately
preceding the computation date as hereinafter defined if the employer has
been continuously subject to contributions during those three calendar
years and has paid some wages for employment during each of such years.
In determining contribution rates for the calendar year, if an employer has
not been continuously subject to contribution for the three calendar years
immediately preceding the computation date but has paid wages subject to
contributions during only the two calendar years immediately preceding
the computation date, such employer's "average annual payroll" shall be
the average of the payrolls for those two calendar years.
(3) "Total wages" means the total amount of wages paid or payable
by an employer during the calendar year, including that part of
remuneration in excess of the limitation prescribed as provided in
subsection (o)(1).
(b) "Base period" means the first four of the last five completed
calendar quarters immediately preceding the first day of an individual's
benefit year, except that the base period in respect to combined wage
claims means the base period as defined in the law of the paying state.
(1) If an individual lacks sufficient base period wages in order to
establish a benefit year in the manner set forth above and satisfies the
requirements of subsection (hh) and K.S.A. 44-705(g) and K.S.A. 44-
703(hh), and amendments thereto, the claimant shall have an alternative
base period substituted for the current base period so as not to prevent
establishment of a valid claim. For the purposes of this subsection,
"alternative base period" means the last four completed quarters
immediately preceding the date the qualifying injury occurred. In the event
the wages in the alternative base period have been used on a prior claim,
then they shall be excluded from the new alternative base period.
(2) For the purposes of this chapter, the term "base period" includes
the alternative base period.
(c) (1) "Benefits" means the money payments payable to an
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43 SB 478 3
individual, as provided in this act, with respect to such individual's
unemployment.
(2) "Regular benefits" means benefits payable to an individual under
this act or under any other state law, including benefits payable to federal
civilian employees and to ex-servicemen pursuant to 5 U.S.C. chapter 85,
other than extended benefits.
(d) "Benefit year" with respect to any individual, means the period
beginning with the first day Sunday of the first week for which such
individual files a valid claim for benefits, and such benefit year shall
continue for one full year. In the case of a combined wage claim, the
benefit year shall be the benefit year of the paying state. Following the
termination of a benefit year, a subsequent benefit year shall commence on
the first day Sunday of the first week with respect to which an individual
next files a claim for benefits. When such filing occurs with respect to a
week that overlaps the preceding benefit year, the subsequent benefit year
shall commence on the first day immediately following the expiration date
of the preceding benefit year. Any claim for benefits made in accordance
with K.S.A. 44-709(a), and amendments thereto, shall be deemed to be a
"valid claim" for the purposes of this subsection if the individual has been
paid wages for insured work as required under K.S.A. 44-705(e), and
amendments thereto. Whenever a week of unemployment overlaps two
benefit years, such week shall, for the purpose of granting waiting-period
credit or benefit payment with respect thereto, be deemed to be a week of
unemployment within that benefit year in which the greater part of such
week occurs.
(e) "Commissioner" or "secretary" means the secretary of labor.
(f) (1) "Contributions" means the money payments to the state
employment security fund that are required to be made by employers on
account of employment under K.S.A. 44-710, and amendments thereto,
and voluntary payments made by employers pursuant to such statute.
(2) "Payments in lieu of contributions" means the money payments to
the state employment security fund from employers that are required to
make or that elect to make such payments under K.S.A. 44-710(e), and
amendments thereto.
(g) "Employing unit" means any individual or type of organization,
including any partnership, association, limited liability company, agency
or department of the state of Kansas and political subdivisions thereof,
trust, estate, joint-stock company, insurance company or corporation,
whether domestic or foreign including nonprofit corporations, or the
receiver, trustee in bankruptcy, trustee or successor thereof, or the legal
representatives of a deceased person, that has in its employ one or more
individuals performing services for it within this state. All individuals
performing services within this state for any employing unit that maintains
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two or more separate establishments within this state shall be deemed to be
employed by a single employing unit for all the purposes of this act. Each
individual employed to perform or to assist in performing the work of any
agent or employee of an employing unit shall be deemed to be employed
by such employing unit for all the purposes of this act, whether such
individual was hired or paid directly by such employing unit or by such
agent or employee, provided the employing unit had actual or constructive
knowledge of the employment.
(h) "Employer" means:
(1) (A) Any employing unit for which agricultural labor as defined in
subsection (w) is performed and during any calendar quarter in either the
current or preceding calendar year paid remuneration in cash of $20,000 or
more to individuals employed in agricultural labor or for some portion of a
day in each of 20 different calendar weeks, whether or not such weeks
were consecutive, in either the current or the preceding calendar year,
employed in agricultural labor 10 or more individuals, regardless of
whether they were employed at the same moment of time.
(B) For the purpose of this subsection (h)(1), any individual who is a
member of a crew furnished by a crew leader to perform services in
agricultural labor for any other person shall be treated as an employee of
such crew leader if:
(i) Such crew leader holds a valid certificate of registration under the
federal migrant and seasonal agricultural workers protection act or
substantially all the members of such crew operate or maintain tractors,
mechanized harvesting or cropdusting equipment or any other mechanized
equipment, that is provided by such crew leader; and
(ii) such individual is not in the employment of such other person
within the meaning of subsection (i).
(C) For the purpose of this subsection (h)(1), in the case of any
individual who is furnished by a crew leader to perform services in
agricultural labor for any other person and who is not treated as an
employee of such crew leader:
(i) Such other person and not the crew leader shall be treated as the
employer of such individual; and
(ii) such other person shall be treated as having paid cash
remuneration to such individual in an amount equal to the amount of cash
remuneration paid to such individual by the crew leader, either on the crew
leader's own behalf or on behalf of such other person, for the services in
agricultural labor performed for such other person.
(D) For the purposes of this subsection (h)(1) "crew leader" means an
individual who:
(i) Furnishes individuals to perform services in agricultural labor for
any other person;
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(ii) pays, either on such individual's own behalf or on behalf of such
other person, the individuals so furnished by such individual for the
services in agricultural labor performed by them; and
(iii) has not entered into a written agreement with such other person
under which such individual is designated as an employee of such other
person.
(2) (A) Any employing unit that for calendar year 2007 and each
calendar year thereafter: (i) In any calendar quarter in either the current or
preceding calendar year paid for services in employment wages of $1,500
or more; (ii) for some portion of a day in each of 20 different calendar
weeks, whether or not such weeks were consecutive, in either the current
or preceding calendar year, had in employment at least one individual,
whether or not the same individual was in employment in each such day;
or (iii) elects to have an unemployment tax account established at the time
of initial registration in accordance with K.S.A. 44-711(c), and
amendments thereto.
(B) Employment of individuals to perform domestic service or
agricultural labor and wages paid for such service or labor shall not be
considered in determining whether an employing unit meets the criteria of
this subsection (h)(2).
(3) Any employing unit for which service is employment as defined
in subsection (i)(3)(E).
(4) (A) Any employing unit, whether or not it is an employing unit
under subsection (g), that acquires or in any manner succeeds to: (i)
Substantially all of the employing enterprises, organization, trade or
business; or (ii) substantially all the assets, of another employing unit that
at the time of such acquisition was an employer subject to this act;
(B) any employing unit that is controlled substantially, either directly
or indirectly by legally enforceable means or otherwise, by the same
interest or interests, whether or not such interest or interests are an
employing unit under subsection (g), acquires or in any manner succeeds
to a portion of an employer's annual payroll, is less than 100% of such
employer's annual payroll, and intends to continue the acquired portion as
a going business.
(5) Any employing unit that paid cash remuneration of $1,000 or
more in any calendar quarter in the current or preceding calendar year to
individuals employed in domestic service as defined in subsection (aa).
(6) Any employing unit that having become an employer under this
subsection (h) has not, under K.S.A. 44-711(b), and amendments thereto,
ceased to be an employer subject to this act.
(7) Any employing unit that has elected to become fully subject to
this act in accordance with K.S.A. 44-711(c), and amendments thereto.
(8) Any employing unit not an employer by reason of any other
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paragraph of this subsection (h), for which within either the current or
preceding calendar year services in employment are or were performed
with respect to which such employing unit is liable for any federal tax
against which credit may be taken for contributions required to be paid
into a state unemployment compensation fund; or that, as a condition for
approval of this act for full tax credit against the tax imposed by the
federal unemployment tax act, is required, pursuant to such act, to be an
"employer" under this act.
(9) Any employing unit described in section 501(c)(3) of the federal
internal revenue code of 1986 that is exempt from income tax under
section 501(a) of the code that had four or more individuals in
employment for some portion of a day in each of 20 different weeks,
whether or not such weeks were consecutive, within either the current or
preceding calendar year, regardless of whether they were employed at the
same moment of time.
(i) "Employment" means:
(1) Subject to the other provisions of this subsection, service,
including services in interstate commerce, performed by:
(A) Any active officer of a corporation; or
(B) any individual who, under the usual common law rules applicable
in determining the employer-employee relationship, has the status of an
employee subject to the provisions of subsection (i)(3)(D); or
(C) any individual other than an individual who is an employee under
subsection (i)(1)(A) or subsection (i)(1)(B) above who performs services
for remuneration for any person:
(i) As an agent-driver or commission-driver engaged in distributing
meat products, vegetable products, fruit products, bakery products,
beverages, other than milk, or laundry or dry-cleaning services, for such
individual's principal; or
(ii) as a traveling or city salesman, other than as an agent-driver or
commission-driver, engaged upon a full-time basis in the solicitation on
behalf of, and the transmission to, a principal, except for side-line sales
activities on behalf of some other person, of orders from wholesalers,
retailers, contractors, or operators of hotels, restaurants, or other similar
establishments for merchandise for resale or supplies for use in their
business operations.
For purposes of subsection (i)(1)(C), the term "employment" includes
services described in paragraphs (i) and (ii) above only if:
(a) The contract of service contemplates that substantially all of the
services are to be performed personally by such individual;
(b) the individual does not have a substantial investment in facilities
used in connection with the performance of the services, other than in
facilities for transportation; and
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43 SB 478 7
(c) the services are not in the nature of a single transaction that is not
part of a continuing relationship with the person for whom the services are
performed.
(2) The term "employment" includes an individual's entire service
within the United States, even though performed entirely outside this state
if:
(A) The service is not localized in any state;
(B) the individual is one of a class of employees who are required to
travel outside this state in performance of their duties; and
(C) the individual's base of operations is in this state, or if there is no
base of operations, then the place where service is directed or controlled is
in this state.
(3) The term "employment" also includes:
(A) Services performed within this state but not covered by the
provisions of subsection (i)(1) or subsection (i)(2) shall be deemed to be
employment subject to this act if contributions are not required and paid
with respect to such services under an unemployment compensation law of
any other state or of the federal government.
(B) Services performed entirely without this state, with respect to no
part of which contributions are required and paid under an unemployment
compensation law of any other state or of the federal government, shall be
deemed to be employment subject to this act only if the individual
performing such services is a resident of this state and the secretary
approved the election of the employing unit for whom such services are
performed that the entire service of such individual shall be deemed to be
employment subject to this act.
(C) Services covered by an arrangement pursuant to K.S.A. 44-
714(j), and amendments thereto, between the secretary and the agency
charged with the administration of any other state or federal
unemployment compensation law, pursuant to which all services
performed by an individual for an employing unit are deemed to be
performed entirely within this state, shall be deemed to be employment if
the secretary has approved an election of the employing unit for whom
such services are performed, pursuant to which the entire service of such
individual during the period covered by such election is deemed to be
insured work.
(D) Services performed by an individual for wages or under any
contract of hire shall be deemed to be employment subject to this act if the
business for which activities of the individual are performed retains not
only the right to control the end result of the activities performed, but the
manner and means by which the end result is accomplished.
(E) Services performed by an individual in the employ of a state or
any instrumentality thereof, any political subdivision of a state or any
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43 SB 478 8
instrumentality thereof, or in the employ of an Indian tribe, as defined
pursuant to section 3306(u) of the federal unemployment tax act, any
instrumentality of more than one of the foregoing or any instrumentality
that is jointly owned by this state or a political subdivision thereof or
Indian tribes and one or more other states or political subdivisions of this
or other states, provided that such service is excluded from "employment"
as defined in the federal unemployment tax act by reason of section
3306(c)(7) of that act and is not excluded from "employment" under
subsection (i)(4)(A) of this section. For purposes of this section, the
exclusions from employment in subsections (i)(4)(A) and (i)(4)(L) shall
also be applicable to services performed in the employ of an Indian tribe.
(F) Services performed by an individual in the employ of a religious,
charitable, educational or other organization that is excluded from the term
"employment" as defined in the federal unemployment tax act solely by
reason of section 3306(c)(8) of that act, and is not excluded from
employment under subsection (i)(4)(I) through (M).
(G) The term "employment" includes the services of an individual
who is a citizen of the United States, performed outside the United States
except in Canada, in the employ of an American employer, other than
service that is deemed "employment" under the provisions of subsection (i)
(2) or subsection (i)(3) or the parallel provisions of another state's law, if:
(i) The employer's principal place of business in the United States is
located in this state; or
(ii) the employer has no place of business in the United States, but:
(a) The employer is an individual who is a resident of this state;
(b) the employer is a corporation which is organized under the laws
of this state; or
(c) the employer is a partnership or a trust and the number of the
partners or trustees who are residents of this state is greater than the
number who are residents of any other state; or
(iii) none of the criteria of (i)(3)(G)(i) and (ii) are met but the
employer has elected coverage in this state or, the employer having failed
to elect coverage in any state, the individual has filed a claim for benefits,
based on such service, under the law of this state.
(H) An "American employer," for purposes of subsection (i)(3)(G),
means a person who is:
(i) An individual who is a resident of the United States;
(ii) a partnership if ⅔ or more of the partners are residents of the
United States;
(iii) a trust, if all of the trustees are residents of the United States; or
(iv) a corporation organized under the laws of the United States or of
any state.
(I) Notwithstanding subsection (i)(2), all services performed by an
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43 SB 478 9
officer or member of the crew of an American vessel or American aircraft
on or in connection with such vessel or aircraft, if the operating office,
from which the operations of such vessel or aircraft operating within, or
within and without, the United States are ordinarily and regularly
supervised, managed, directed and controlled is within this state.
(J) Notwithstanding any other provisions of this subsection (i),
services with respect to which a tax is required to be paid under any
federal law imposing a tax against which credit may be taken for
contributions required to be paid into a state unemployment compensation
fund or that as a condition for full tax credit against the tax imposed by the
federal unemployment tax act is required to be covered under this act.
(K) Domestic service in a private home, local college club or local
chapter of a college fraternity or sorority performed for a person who paid
cash remuneration of $1,000 or more in any calendar quarter in the current
calendar year or the preceding calendar year to individuals employed in
such domestic service.
(4) The term "employment" does not include: (A) Services performed
in the employ of an employer specified in subsection (h)(3) if such service
is performed by an individual in the exercise of duties:
(i) As an elected official;
(ii) as a member of a legislative body, or a member of the judiciary, of
a state, political subdivision or of an Indian tribe;
(iii) as a member of the state national guard or air national guard;
(iv) as an employee serving on a temporary basis in case of fire,
storm, snow, earthquake, flood or similar emergency;
(v) in a position that, under or pursuant to the laws of this state or
tribal law, is designated as a major nontenured policymaking or advisory
position or as a policymaking or advisory position the performance of the
duties of which ordinarily does not require more than eight hours per
week;
(B) services with respect to which unemployment compensation is
payable under an unemployment compensation system established by an
act of congress;
(C) services performed by an individual in the employ of such
individual's son, daughter or spouse, and services performed by a child
under the age of 21 years in the employ of such individual's father or
mother;
(D) services performed in the employ of the United States
government or an instrumentality of the United States exempt under the
constitution of the United States from the contributions imposed by this
act, except that to the extent that the congress of the United States shall
permit states to require any instrumentality of the United States to make
payments into an unemployment fund under a state unemployment
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43 SB 478 10
compensation law, all of the provisions of this act shall be applicable to
such instrumentalities, and to services performed for such
instrumentalities, in the same manner, to the same extent and on the same
terms as to all other employers, employing units, individuals and services.
If this state shall not be certified for any year by the federal security
agency under section 3304(c) of the federal internal revenue code of 1986,
the payments required of such instrumentalities with respect to such year
shall be refunded by the secretary from the fund in the same manner and
within the same period as is provided in K.S.A. 44-717(h), and
amendments thereto, with respect to contributions erroneously collected;
(E) services covered by an arrangement between the secretary and the
agency charged with the administration of any other state or federal
unemployment compensation law pursuant to which all services performed
by an individual for an employing unit during the period covered by such
employing unit's duly approved election, are deemed to be performed
entirely within the jurisdiction of such other state or federal agency;
(F) services performed by an individual under the age of 18 in the
delivery or distribution of newspapers or shopping news, not including
delivery or distribution to any point for subsequent delivery or
distribution;
(G) services performed by an individual for an employing unit as an
insurance agent or as an insurance solicitor, if all such service performed
by such individual for such employing unit is performed for remuneration
solely by way of commission;
(H) services performed in any calendar quarter in the employ of any
organization exempt from income tax under section 501(a) of the federal
internal revenue code of 1986, other than an organization described in
section 401(a) or under section 521 of such code, if the remuneration for
such service is less than $50. In construing the application of the term
"employment," if services performed during ½ or more of any pay period
by an individual for the person employing such individual constitute
employment, all the services of such individual for such period shall be
deemed to be employment; but if the services performed during more than
½ of any such pay period by an individual for the person employing such
individual do not constitute employment, then none of the services of such
individual for such period shall be deemed to be employment. As used in
this subsection (i)(4)(H) the term "pay period" means a period, of not more
than 31 consecutive days, for which a payment of remuneration is
ordinarily made to the individual by the person employing such individual.
This subsection (i)(4)(H) shall not be applicable with respect to services
with respect to which unemployment compensation is payable under an
unemployment compensation system established by an act of congress;
(I) services performed in the employ of a church or convention or
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43 SB 478 11
association of churches, or an organization which is operated primarily for
religious purposes and which is operated, supervised, controlled, or
principally supported by a church or convention or association of
churches;
(J) services performed by a duly ordained, commissioned, or licensed
minister of a church in the exercise of such individual's ministry or by a
member of a religious order in the exercise of duties required by such
order;
(K) services performed in a facility conducted for the purpose of
carrying out a program of:
(i) Rehabilitation for individuals whose earning capacity is impaired
by age or physical or mental deficiency or injury; or
(ii) providing remunerative work for individuals who because of their
impaired physical or mental capacity cannot be readily absorbed in the
competitive labor market, by an individual receiving such rehabilitation or
remunerative work;
(L) services performed as part of an employment work-relief or
work-training program assisted or financed in whole or in part by any
federal agency or an agency of a state or political subdivision thereof or of
an Indian tribe, by an individual receiving such work relief or work
training;
(M) services performed by an inmate of a custodial or correctional
institution;
(N) services performed, in the employ of a school, college, or
university, if such service is performed by a student who is enrolled and is
regularly attending classes at such school, college or university;
(O) services performed by an individual who is enrolled at a
nonprofit or public educational institution that normally maintains a
regular faculty and curriculum and normally has a regularly organized
body of students in attendance at the place where its educational activities
are carried on as a student in a full-time program, taken for credit at such
institution, that combines academic instruction with work experience, if
such service is an integral part of such program, and such institution has so
certified to the employer, except that this subsection (i)(4)(O) shall not
apply to service performed in a program established for or on behalf of an
employer or group of employers;
(P) services performed in the employ of a hospital licensed, certified
or approved by the secretary of health and environment, if such service is
performed by a patient of the hospital;
(Q) services performed as a qualified real estate agent. As used in this
subsection (i)(4)(Q) the term "qualified real estate agent" means any
individual who is licensed by the Kansas real estate commission as a
salesperson under the real estate brokers' and salespersons' license act and
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for whom:
(i) Substantially all of the remuneration, whether or not paid in cash,
for the services performed by such individual as a real estate salesperson is
directly related to sales or other output, including the performance of
services, rather than to the number of hours worked; and
(ii) the services performed by the individual are performed pursuant
to a written contract between such individual and the person for whom the
services are performed and such contract provides that the individual will
not be treated as an employee with respect to such services for state tax
purposes;
(R) services performed for an employer by an extra in connection
with any phase of motion picture or television production or television
commercials for less than 14 days during any calendar year. As used in this
subsection, the term "extra" means an individual who pantomimes in the
background, adds atmosphere to the set and performs such actions without
speaking and "employer" shall not include any employer that is a
governmental entity or any employer described in section 501(c)(3) of the
federal internal revenue code of 1986 that is exempt from income taxation
under section 501(a) of the code;
(S) services performed by an oil and gas contract pumper. As used in
this subsection (i)(4)(S), "oil and gas contract pumper" means a person
performing pumping and other services on one or more oil or gas leases, or
on both oil and gas leases, relating to the operation and maintenance of
such oil and gas leases, on a contractual basis for the operators of such oil
and gas leases and "services" shall not include services performed for a
governmental entity or any organization described in section 501(c)(3) of
the federal internal revenue code of 1986 that is exempt from income
taxation under section 501(a) of the code;
(T) service not in the course of the employer's trade or business
performed in any calendar quarter by an employee, unless the cash
remuneration paid for such service is $200 or more and such service is
performed by an individual who is regularly employed by such employer
to perform such service. For purposes of this paragraph, an individual shall
be deemed to be regularly employed by an employer during a calendar
quarter only if:
(i) On each of some 24 days during such quarter such individual
performs for such employer for some portion of the day service not in the
course of the employer's trade or business; or
(ii) such individual was regularly employed, as determined under
subparagraph (i), by such employer in the performance of such service
during the preceding calendar quarter.
Such excluded service shall not include any services performed for an
employer that is a governmental entity or any employer described in
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section 501(c)(3) of the federal internal revenue code of 1986 that is
exempt from income taxation under section 501(a) of the code;
(U) service which is performed by any person who is a member of a
limited liability company and that is performed as a member or manager of
that limited liability company; and
(V) services performed as a qualified direct seller. The term "direct
seller" means any person if:
(i) Such person:
(a) Is engaged in the trade or business of selling or soliciting the sale
of consumer products to any buyer on a buy-sell basis or a deposit-
commission basis for resale, by the buyer or any other person, in the home
or otherwise rather than in a permanent retail establishment; or
(b) is engaged in the trade or business of selling or soliciting the sale
of consumer products in the home or otherwise than in a permanent retail
establishment;
(ii) substantially all the remuneration whether or not paid in cash for
the performance of the services described in subparagraph (i) is directly
related to sales or other output including the performance of services rather
than to the number of hours worked;
(iii) the services performed by the person are performed pursuant to a
written contract between such person and the person for whom the services
are performed and such contract provides that the person will not be
treated as an employee for federal and state tax purposes;
(iv) for purposes of this act, a sale or a sale resulting exclusively from
a solicitation made by telephone, mail, or other telecommunications
method, or other nonpersonal method does not satisfy the requirements of
this subsection;
(W) services performed as an election official or election worker, if
the amount of remuneration received by the individual during the calendar
year for services as an election official or election worker is less than
$1,000;
(X) services performed by agricultural workers who are aliens
admitted to the United States to perform labor pursuant to section 1101(a)
(15)(H)(ii)(a) of the immigration and nationality act;
(Y) services performed by an owner-operator of a motor vehicle that
is leased or contracted to a licensed motor carrier with the services of a
driver and is not treated under the terms of the lease agreement or contract
with the licensed motor carrier as an employee for purposes of the federal
insurance contribution act, 26 U.S.C. § 3101 et seq., the federal social
security act, 42 U.S.C. § 301 et seq., the federal unemployment tax act, 26
U.S.C. § 3301 et seq., and the federal statutes prescribing income tax
withholding at the source, 26 U.S.C. § 3401 et seq. Employees or agents of
the owner-operator shall not be considered employees of the licensed
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motor carrier for purposes of employment security taxation or
compensation. As used in this subsection (Y), the following definitions
apply: (i) "Motor vehicle" means any automobile, truck-trailer, semitrailer,
tractor, motor bus or any other self-propelled or motor-driven vehicle used
upon any of the public highways of Kansas for the purpose of transporting
persons or property; (ii) "licensed motor carrier" means any person, firm,
corporation or other business entity that holds a certificate of convenience
and necessity or a certificate of public service from the state corporation
commission or is required to register motor carrier equipment pursuant to
49 U.S.C. § 14504; and (iii) "owner-operator" means a person, firm,
corporation or other business entity that is the owner of a single motor
vehicle that is driven exclusively by the owner under a lease agreement or
contract with a licensed motor carrier; and
(Z) services performed by a petroleum landman on a contractual
basis. As used in this subparagraph, "petroleum landman" means an
individual performing services on a contractual basis who is not an
individual who is an active officer of a corporation as described in
subsection (i)(1)(A) that may include:
(i) Negotiating for the acquisition or divestiture of mineral rights;
(ii) negotiating business agreements that provide exploration for or
development of minerals;
(iii) determining ownership in minerals through the research of public
and private records;
(iv) reviewing the status of title, curing title defects, providing title
due diligence and otherwise reducing title risk associated with ownership
in minerals or the acquisition and divestiture of mineral properties;
(v) managing rights or obligations derived from ownership of
interests in minerals; or
(vi) unitizing or pooling of interests in minerals. For purposes of this
subparagraph, "minerals" includes oil, natural gas or petroleum. "Services"
does not include services performed for a governmental entity or any
organization described in section 501(c)(3) of the federal internal revenue
code of 1986, or a federally recognized Indian tribe that is exempt from
income taxation under section 501(a) of the code.
(j) "Employment office" means any office operated by this state and
maintained by the secretary of labor for the purpose of assisting persons to
become employed.
(k) "Fund" means the employment security fund established by this
act, to which all contributions and reimbursement payments required and
from which all benefits provided under this act shall be paid and including
all money received from the federal government as reimbursements
pursuant to section 204 of the federal-state extended compensation act of
1970, and amendments thereto.
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(l) "State" includes, in addition to the states of the United States of
America, any dependency of the United States, the Commonwealth of
Puerto Rico, the District of Columbia and the Virgin Islands.
(m) "Unemployment." An individual shall be deemed "unemployed"
with respect to any week during which such individual performs no
services and with respect to which no wages are payable to such
individual, or with respect to any week of less than full-time work if the
wages payable to such individual with respect to such week are less than
such individual's weekly benefit amount.
(n) "Employment security administration fund" means the fund
established by this act, from which administrative expenses under this act
shall be paid.
(o) "Wages" means all compensation for services, including
commissions, bonuses, back pay and the cash value of all remuneration,
including benefits, paid in any medium other than cash. The reasonable
cash value of remuneration in any medium other than cash, shall be
estimated and determined in accordance with rules and regulations
prescribed by the secretary. Compensation payable to an individual that
has not been actually received by that individual within 21 days after the
end of the pay period in which the compensation was earned shall be
considered to have been paid on the 21
st
day after the end of that pay
period. Effective January 1, 1986, gratuities, including tips received from
persons other than the employing unit, shall be considered wages when
reported in writing to the employer by the employee. Employees must
furnish a written statement to the employer, reporting all tips received if
they total $20 or more for a calendar month whether the tips are received
directly from a person other than the employer or are paid over to the
employee by the employer. This includes amounts designated as tips by a
customer who uses a credit card to pay the bill. Notwithstanding the other
provisions of this subsection (o), wages paid in back pay awards or
settlements shall be allocated to the week or weeks and reported in the
manner as specified in the award or agreement, or, in the absence of such
specificity in the award or agreement, such wages shall be allocated to the
week or weeks in which such wages, in the judgment of the secretary,
would have been paid. The term "wages" shall not include:
(1) For calendar years 2016 through 2025, that part of the
remuneration that has been paid in a calendar year to an individual by an
employer or such employer's predecessor in excess of $3,000 for all
calendar years prior to 1972, in excess of $4,200 for the calendar years
1972 to 1977, inclusive, in excess of $6,000 for calendar years 1978 to
1982, inclusive, in excess of $7,000 for the calendar year 1983, in excess
of $8,000 for the calendar years 1984 to 2014, inclusive, and in excess of
$12,000 with respect to employment during calendar year 2015, and in
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excess of $14,000 with respect to all calendar years thereafter, except that
if the definition of the term "wages" as contained in the federal
unemployment tax act is amended to include remuneration paid to an
individual by an employer under the federal act in excess of $8,000 for the
calendar years 1984-2014, inclusive, and in excess of $12,000 with respect
to employment during calendar year 2015, and in excess of $14,000 with
respect to all calendar years thereafter employment during calendar years
2016 through 2025, wages shall include remuneration paid in a calendar
year to an individual by an employer subject to this act or such employer's
predecessor with respect to employment during any calendar year up to an
amount equal to the dollar limitation specified in the federal
unemployment tax act. For the purposes of this subsection (o)(1), the term
"employment" shall include service constituting employment under any
employment security law of another state or of the federal government;
(2) (A) For the calendar year as set forth below, except as provided
by subparagraph (B), for contributing rated employers assigned rate
groups 0-N11, that part of the remuneration that has been paid in a
calendar year to an individual by an employer or such employer's
predecessor in excess of the specified percentage of the statewide average
annual wage paid to employees in insured work during the previous
calendar year and rounded to the nearest multiple of $100:
(i) Calendar year 2026, 30%;
(ii) calendar year 2027, 35%;
(iii) calendar year 2028, 40%;
(iv) calendar year 2029, 45%;
(v) calendar year 2030, 50%;
(vi) calendar year 2031, 55%; and
(vii) calendar year 2032 and all ensuing calendar years thereafter,
60%.
(B) If the definition of the term "wages" as contained in the federal
unemployment tax act is amended to include the remuneration paid to an
individual by an employer under the federal act in excess of the amount
calculated pursuant to subparagraph (A)(i) through (vii), then with respect
to employment during all calendar years thereafter, wages shall include
the remuneration paid in a calendar year to an individual by an employer
subject to this act or such employer's predecessor with respect to
employment during any calendar year up to an amount equal to the dollar
limitation specified in the federal unemployment tax act.
(C) For purposes of subparagraphs (A) and (B):
(i) "Employment" includes service constituting employment under
any employment security law of another state or of the federal
government; and
(ii) "statewide average annual wage" means the statewide average
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annual wage as defined by subsection (jj) and computed by the secretary
on July 1 each year, as provided by K.S.A. 44-704, and amendments
thereto;
(2)(3) the amount of any payment, including any amount paid by an
employing unit for insurance or annuities, or into a fund, to provide for
any such payment, made to, or on behalf of, an employee or any of such
employee's dependents under a plan or system established by an employer
that makes provisions for employees generally, for a class or classes of
employees or for such employees or a class or classes of employees and
their dependents, on account of:
(A) Sickness or accident disability, except in the case of any payment
made to an employee or such employee's dependents, this subparagraph
shall exclude from the term "wages" only payments that are received under
a workers compensation law. Any third party that makes a payment
included as wages by reason of this subparagraph (2)(A) shall be treated as
the employer with respect to such wages; or
(B) medical and hospitalization expenses in connection with sickness
or accident disability; or
(C) death;
(3)(4) any payment on account of sickness or accident disability, or
medical or hospitalization expenses in connection with sickness or
accident disability, made by an employer to, or on behalf of, an employee
after the expiration of six calendar months following the last calendar
month in which the employee worked for such employer;
(4)(5) any payment made to, or on behalf of, an employee or such
employee's beneficiary:
(A) From or to a trust described in section 401(a) of the federal
internal revenue code of 1986 that is exempt from tax under section 501(a)
of the federal internal revenue code of 1986 at the time of such payment
unless such payment is made to an employee of the trust as remuneration
for services rendered as such employee and not as a beneficiary of the
trust;
(B) under or to an annuity plan that, at the time of such payment, is a
plan described in section 403(a) of the federal internal revenue code of
1986;
(C) under a simplified employee pension as defined in section 408(k)
(1) of the federal internal revenue code of 1986, other than any
contribution described in section 408(k)(6) of the federal internal revenue
code of 1986;
(D) under or to an annuity contract described in section 403(b) of the
federal internal revenue code of 1986, other than a payment for the
purchase of such contract that was made by reason of a salary reduction
agreement whether evidenced by a written instrument or otherwise;
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(E) under or to an exempt governmental deferred compensation plan
as defined in section 3121(v)(3) of the federal internal revenue code of
1986;
(F) to supplement pension benefits under a plan or trust described in
any of the foregoing provisions of this subparagraph to take into account
some portion or all of the increase in the cost of living, as determined by
the secretary of labor, since retirement but only if such supplemental
payments are under a plan that is treated as a welfare plan under section
3(2)(B)(ii) of the federal employee retirement income security act of 1974;
or
(G) under a cafeteria plan within the meaning of section 125 of the
federal internal revenue code of 1986;
(5)(6) the payment by an employing unit, without deduction from the
remuneration of the employee, of the tax imposed upon an employee under
section 3101 of the federal internal revenue code of 1986 with respect to
remuneration paid to an employee for domestic service in a private home
of the employer or for agricultural labor;
(6)(7) remuneration paid in any medium other than cash to an
employee for service not in the course of the employer's trade or business;
(7)(8) remuneration paid to or on behalf of an employee if and to the
extent that at the time of the payment of such remuneration it is reasonable
to believe that a corresponding deduction is allowable under section 217 of
the federal internal revenue code of 1986 relating to moving expenses;
(8)(9) any payment or series of payments by an employer to an
employee or any of such employee's dependents that is paid:
(A) Upon or after the termination of an employee's employment
relationship because of (i) death or (ii) retirement for disability; and
(B) under a plan established by the employer that makes provisions
for employees generally, a class or classes of employees or for such
employees or a class or classes of employees and their dependents, other
than any such payment or series of payments that would have been paid if
the employee's employment relationship had not been so terminated;
(9)(10) remuneration for agricultural labor paid in any medium other
than cash;
(10)(11) any payment made, or benefit furnished, to or for the benefit
of an employee if at the time of such payment or such furnishing it is
reasonable to believe that the employee will be able to exclude such
payment or benefit from income under section 129 of the federal internal
revenue code of 1986 that relates to dependent care assistance programs;
(11)(12) the value of any meals or lodging furnished by or on behalf
of the employer if at the time of such furnishing it is reasonable to believe
that the employee will be able to exclude such items from income under
section 119 of the federal internal revenue code of 1986;
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(12)(13) any payment made by an employer to a survivor or the estate
of a former employee after the calendar year in which such employee died;
(13)(14) any benefit provided to or on behalf of an employee if at the
time such benefit is provided it is reasonable to believe that the employee
will be able to exclude such benefit from income under section 74(c), 117
or 132 of the federal internal revenue code of 1986;
(14)(15) any payment made, or benefit furnished, to or for the benefit
of an employee, if at the time of such payment or such furnishing it is
reasonable to believe that the employee will be able to exclude such
payment or benefit from income under section 127 of the federal internal
revenue code of 1986 relating to educational assistance to the employee; or
(15)(16) any payment made to or for the benefit of an employee if at
the time of such payment it is reasonable to believe that the employee will
be able to exclude such payment from income under section 106(d) of the
federal internal revenue code of 1986 relating to health savings accounts.
Nothing in any paragraph of subsection (o), other than paragraph
paragraphs (1) and (2), shall exclude from the term "wages": (1) Any
employer contribution under a qualified cash or deferred arrangement, as
defined in section 401(k) of the federal internal revenue code of 1986, to
the extent that such contribution is not included in gross income by reason
of section 402(a)(8) of the federal internal revenue code of 1986; or (2)
any amount treated as an employer contribution under section 414(h)(2) of
the federal internal revenue code of 1986.
Any amount deferred under a nonqualified deferred compensation plan
shall be taken into account for purposes of this section as of the later of
when the services are performed or when there is no substantial risk of
forfeiture of the rights to such amount. Any amount taken into account as
wages by reason of this paragraph, and the income attributable thereto,
shall not thereafter be treated as wages for purposes of this section. For
purposes of this paragraph, the term "nonqualified deferred compensation
plan" means any plan or other arrangement for deferral of compensation
other than a plan described in subsection (o)(4)(5).
(p) "Week" means such period or periods of seven consecutive
calendar days, as the secretary may by rules and regulations prescribe.
(q) "Calendar quarter" means the period of three consecutive calendar
months ending March 31, June 30, September 30 or December 31, or the
equivalent thereof as the secretary may by rules and regulations prescribe.
(r) "Insured work" means employment for employers.
(s) "Approved training" means any vocational training course or
course in basic education skills, including a job training program
authorized under the federal workforce investment act of 1998, approved
by the secretary or a person or persons designated by the secretary.
(t) "American vessel" or "American aircraft" means any vessel or
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aircraft documented or numbered or otherwise registered under the laws of
the United States; and any vessel or aircraft that is neither documented or
numbered or otherwise registered under the laws of the United States nor
documented under the laws of any foreign country, if its crew performs
service solely for one or more citizens or residents of the United States or
corporations organized under the laws of the United States or of any state.
(u) "Institution of higher education," for the purposes of this section,
means an educational institution that:
(1) Admits as regular students only individuals having a certificate of
graduation from a high school, or the recognized equivalent of such a
certificate;
(2) is legally authorized in this state to provide a program of
education beyond high school;
(3) provides an educational program for which it awards a bachelor's
or higher degree, or provides a program that is acceptable for full credit
toward such a degree, a program of postgraduate or postdoctoral studies,
or a program of training to prepare students for gainful employment in a
recognized occupation; and
(4) is a public or other nonprofit institution.
Notwithstanding any of the foregoing provisions of this subsection (u),
all colleges and universities in this state are institutions of higher education
for purposes of this section, except that no college, university, junior
college or other postsecondary school or institution that is operated by the
federal government or any agency thereof shall be an institution of higher
education for purposes of the employment security law.
(v) "Educational institution" means any institution of higher
education, as defined in subsection (u), or any institution, except private
for profit institutions, in which participants, trainees or students are offered
an organized course of study or training designed to transfer to them
knowledge, skills, information, doctrines, attitudes or abilities from, by or
under the guidance of an instructor or teacher and that is approved,
licensed or issued a permit to operate as a school by the state department
of education or other government agency that is authorized within the state
to approve, license or issue a permit for the operation of a school or to an
Indian tribe in the operation of an educational institution. The courses of
study or training that an educational institution offers may be academic,
technical, trade or preparation for gainful employment in a recognized
occupation.
(w) (1) "Agricultural labor" means any remunerated service:
(A) On a farm, in the employ of any person, in connection with
cultivating the soil, or in connection with raising or harvesting any
agricultural or horticultural commodity, including the raising, shearing,
feeding, caring for, training, and management of livestock, bees, poultry,
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and furbearing animals and wildlife.
(B) In the employ of the owner or tenant or other operator of a farm,
in connection with the operating, management, conservation,
improvement, or maintenance of such farm and its tools and equipment, or
in salvaging timber or clearing land of brush and other debris left by a
hurricane, if the major part of such service is performed on a farm.
(C) In connection with the production or harvesting of any
commodity defined as an agricultural commodity in section (15)(g) of the
agricultural marketing act, as amended, 46 Stat. 1500, sec. 3; 12 U.S.C. §
1141j, or in connection with the ginning of cotton, or in connection with
the operation or maintenance of ditches, canals, reservoirs or waterways,
not owned or operated for profit, used exclusively for supplying and
storing water for farming purposes.
(D) (i) In the employ of the operator of a farm in handling, planting,
drying, packing, packaging, processing, freezing, grading, storing, or
delivering to storage or to market or to a carrier for transportation to
market, in its unmanufactured state, any agricultural or horticultural
commodity; but only if such operator produced more than ½ of the
commodity with respect to which such service is performed;
(ii) in the employ of a group of operators of farms, or a cooperative
organization of which such operators are members, in the performance of
services described in paragraph (i), but only if such operators produced
more than ½ of the commodity with respect to which such service is
performed;
(iii) the provisions of paragraphs (i) and (ii) shall not be deemed to be
applicable with respect to services performed in connection with
commercial canning or commercial freezing or in connection with any
agricultural or horticultural commodity after its delivery to a terminal
market for distribution for consumption.
(E) On a farm operated for profit if such service is not in the course
of the employer's trade or business.
(2) "Agricultural labor" does not include services performed prior to
January 1, 1980, by an individual who is an alien admitted to the United
States to perform service in agricultural labor pursuant to sections 214(c)
and 101(a)(15)(H) of the federal immigration and nationality act.
(3) As used in this subsection, the term "farm" includes stock, dairy,
poultry, fruit, fur-bearing animal, and truck farms, plantations, ranches,
nurseries, ranges, greenhouses, or other similar structures used primarily
for the raising of agricultural or horticultural commodities, and orchards.
(4) For the purpose of this section, if an employing unit does not
maintain sufficient records to separate agricultural labor from other
employment, all services performed during any pay period by an
individual for the person employing such individual shall be deemed to be
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agricultural labor if services performed during ½ or more of such pay
period constitute agricultural labor; but if the services performed during
more than ½ of any such pay period by an individual for the person
employing such individual do not constitute agricultural labor, then none
of the services of such individual for such period shall be deemed to be
agricultural labor. As used in this subsection, the term "pay period" means
a period of not more than 31 consecutive days for which a payment of
remuneration is ordinarily made to the individual by the person employing
such individual.
(x) "Reimbursing employer" means any employer who makes
payments in lieu of contributions to the employment security fund as
provided in K.S.A. 44-710(e), and amendments thereto.
(y) "Contributing employer" means any employer other than a
reimbursing employer or rated governmental employer.
(z) "Wage combining plan" means a uniform national arrangement
approved by the United States secretary of labor in consultation with the
state unemployment compensation agencies and in which this state shall
participate, whereby wages earned in one or more states are transferred to
another state, called the "paying state," and combined with wages in the
paying state, if any, for the payment of benefits under the laws of the
paying state and as provided by an arrangement so approved by the United
States secretary of labor.
(aa) "Domestic service" means any services for a person in the
operation and maintenance of a private household, local college club or
local chapter of a college fraternity or sorority, as distinguished from
service as an employee in the pursuit of an employer's trade, occupation,
profession, enterprise or vocation.
(bb) "Rated governmental employer" means any governmental entity
that elects to make payments as provided by K.S.A. 44-710d, and
amendments thereto.
(cc) "Benefit cost payments" means payments made to the
employment security fund by a governmental entity electing to become a
rated governmental employer.
(dd) "Successor employer" means any employer, as described in
subsection (h), that acquires or in any manner succeeds to: (1)
Substantially all of the employing enterprises, organization, trade or
business of another employer; or (2) substantially all the assets of another
employer.
(ee) "Predecessor employer" means an employer, as described in
subsection (h), who has previously operated a business or portion of a
business with employment to which another employer has succeeded.
(ff) "Lessor employing unit" means any independently established
business entity that engages in the business of providing leased employees
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to a client lessee.
(gg) "Client lessee" means any individual, organization, partnership,
corporation or other legal entity leasing employees from a lessor
employing unit.
(hh) "Qualifying injury" means a personal injury by accident arising
out of and in the course of employment within the coverage of the Kansas
workers compensation act, K.S.A. 44-501 et seq., and amendments.
(ii) "Temporary unemployment," "temporarily unemployed" or
"temporary layoff" means that the individual has been laid off due to lack
of work by an employing unit for which the individual has most recently
worked full time and for which the individual reasonably expects to
resume full-time work at a future date within four weeks, and that the
individual's employment with the employing unit, although temporarily
suspended, has not been terminated. Except as otherwise provided by
K.S.A. 44-775(a)(3), and amendments thereto, or by the employment
security law, "temporary unemployment" shall not exceed four consecutive
weeks. An extension or extensions of additional weeks of temporary
employment at the request of an employer for an individual may be
granted by the secretary as provided by K.S.A. 44-775(a)(3), and
amendments thereto. The maximum amount of temporary unemployment
for an individual in a benefit year, including any extensions granted by the
secretary, shall be as provided by K.S.A. 44-775(a)(3), and amendments
thereto.
(jj) "Statewide average annual wage" or "SAAW" means the quotient,
obtained by dividing gross wages by average monthly covered employment
for the same determination period, rounded to the nearest cent.
(kk) "Statewide average weekly wage" or "SAWW" means the
quotient, obtained by dividing the statewide average annual wage by 52,
rounded to the nearest cent.
Sec. 2. K.S.A. 44-704 is hereby amended to read as follows: 44-704.
(a) Payment of benefits. All benefits provided herein shall be payable from
the fund. All benefits shall be paid through the secretary of labor, in
accordance with such rules and regulations as the secretary may adopt.
Benefits based on service in employment defined in K.S.A. 44-703(i)(3)
(E) and (i)(3)(F), and amendments thereto, shall be payable in the same
amount, on the same terms and subject to the same conditions as
compensation payable on the basis of other service subject to this act
except as provided in K.S.A. 44-705(e) and 44-711(e), and amendments
thereto.
(b) Determined weekly benefit amount. An individual's determined
weekly benefit amount shall be an amount equal to 4.25% of the
individual's total wages for insured work paid during that calendar quarter
of the individual's base period that such total wages were highest, subject
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to the following limitations:
(1) If an individual's determined weekly benefit amount is less than
the minimum weekly benefit amount, it shall be raised to such minimum
weekly benefit amount;
(2) if the individual's determined weekly benefit amount is more than
the maximum weekly benefit amount, it shall be reduced to the maximum
weekly benefit amount; and
(3) if the individual's determined weekly benefit amount is not a
multiple of $1, it shall be reduced to the next lower multiple of $1.
(c) Maximum weekly benefit amount. (1) For initial claims effective
prior to July 1, 2015, the maximum weekly benefit amount shall be
determined as follows: On July 1 of each year, the secretary shall
determine the maximum weekly benefit amount by computing 60% of the
average weekly wages paid to employees in insured work during the
previous calendar year and shall, prior to that date, announce the
maximum weekly benefit amount so determined, by publication in the
Kansas register. Such computation shall be made by dividing the gross
wages reported as paid for insured work during the previous calendar year
by the product of the average of mid-month employment during such
calendar year multiplied by 52. The maximum weekly benefit amount so
determined and announced for the twelve-month period shall apply only to
those claims filed in that period qualifying for maximum payment under
the foregoing formula. All claims qualifying for payment at the maximum
weekly benefit amount shall be paid at the maximum weekly benefit
amount in effect when the benefit year to which the claim relates was first
established, notwithstanding a change in the maximum benefit amount for
a subsequent twelve-month period. If the computed maximum weekly
benefit amount is not a multiple of $1, then the computed maximum
weekly benefit amount shall be reduced to the next lower multiple of $1.
(2) For initial claims effective on or after July 1, 2015 2024, the
maximum weekly benefit amount shall be determined as follows: On July
1 of each year, the secretary shall determine the maximum weekly benefit
amount by computing 55% of the statewide average weekly wages paid to
employees in insured work during the previous calendar year, but not to be
less than $474, and shall, prior to that date, announce the maximum
weekly benefit amount so determined by publication in the Kansas
register. Such computation of the statewide average weekly wage shall be
made by dividing the gross wages reported as paid for insured work during
the previous calendar year by the product of the average of mid-month
employment during such calendar year multiplied statewide average
annual wage, as defined in K.S.A. 44-703(jj), and amendments thereto,
determined for the period of the previous calendar year, by 52, as set forth
by K.S.A. 44-703(kk), and amendments thereto. The maximum weekly
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benefit amount so determined and announced for the 12-month period
shall apply only to those claims filed in that period qualifying for
maximum payment under the foregoing formula. All claims qualifying for
payment at the maximum weekly benefit amount shall be paid at the
maximum weekly benefit amount in effect when the benefit year to which
the claim relates was first established, notwithstanding a change in the
maximum benefit amount for a subsequent 12-month period. If the
computed maximum weekly benefit amount is not a multiple of $1, then
the computed maximum weekly benefit amount shall be reduced to the
next lower multiple of $1.
(d) Minimum weekly benefit amount. The minimum weekly benefit
amount payable to any individual shall be 25% of the maximum weekly
benefit amount effective as of the beginning of the individual's benefit
year. If the minimum weekly benefit amount is not a multiple of $1 it shall
be reduced to the next lower multiple of $1. The minimum weekly benefit
amount shall apply through the benefit year, notwithstanding a change in
the minimum weekly benefit amount.
(e) All claims qualifying for payment at the maximum weekly benefit
amount shall be paid at the maximum weekly benefit amount in effect
when the benefit year to which the claim relates was first established,
notwithstanding a subsequent change in the maximum weekly benefit
amount.
(f) Weekly benefit payable. Each eligible individual who is
unemployed with respect to any week, except as to final payment, shall be
paid with respect to such week a benefit in an amount equal to such
individual's determined weekly benefit amount, less that part of the wage,
if any, payable to such individual with respect to such week that is in
excess of the amount that is equal to 25% of such individual's determined
weekly benefit amount, and if the resulting amount is not a multiple of $1,
it shall be reduced to the next lower multiple of $1.
(1) For the purposes of this section, remuneration received under the
following circumstances shall be construed as wages:
(A) Vacation or holiday pay that was attributable to a week that the
individual claimed benefits; and
(B) severance pay, if paid as scheduled, and all other employment
benefits within the employer's control, as defined in subsection (f)(3), if
continued as though the severance had not occurred, except as set out in
subsection (f)(2)(C).
(2) For the purposes of this section, remuneration received under the
following circumstances shall not be construed as wages:
(A) Remuneration received for services performed on a public
assistance work project;
(B) severance pay, in lieu of notice, under the provisions of public
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law 100-379, the federal worker adjustment and retraining notification act,
29 U.S.C. §§ 2101 through 2109;
(C) all other severance pay, separation pay, bonuses, wages in lieu of
notice or remuneration of a similar nature that is payable after the
severance of the employment relationship, except as set out in subsection
(f)(1)(B); and
(D) moneys received as federal social security payments.
(3) For the purposes of this subsection, "employment benefits within
the employer's control" means benefits offered by the employer to
employees that are employee benefit plans as defined by section 3 of the
federal employee retirement income security act of 1974, as amended, 29
U.S.C. § 1002, and that the employer has the option to continue to provide
to the employee after the last day that the employee worked for that
employer.
(g) Duration of benefits. Any otherwise eligible individual shall be
entitled during any benefit year to a total amount of benefits equal to
whichever is the lesser of 26 times such individual's weekly benefit
amount, or
1
/3 of such individual's wages for insured work paid during such
individual's base period. Such total amount of benefits, if not a multiple of
$1, shall be reduced to the next lower multiple of $1.
(h) For the purposes of this section, wages shall be counted as "wages
for insured work" for benefit purposes with respect to any benefit year
only if such benefit year begins subsequent to the date when the
employing unit by whom such wages were paid has satisfied the
conditions of K.S.A. 44-703(h), and amendments thereto, with respect to
becoming an employer.
(i) Notwithstanding any other provisions of this section to the
contrary, any benefit otherwise payable for any week shall be reduced by
the amount of any separation, termination, severance or other similar
payment paid to a claimant at the time of or after the claimant's separation
from employment during the benefit year.
(1) If any payment pursuant to this subsection is paid with respect to
a month, then the amount deemed to be received with respect to any week
during such month shall be computed by multiplying such monthly
amount by 12 and dividing the product by 52. If there is no designation of
the period with respect to which payments to an individual are made under
this section, then an amount equal to such individual's normal weekly
wage shall be attributed to and deemed paid with respect to the first and
each succeeding week following payment of the separation pay to the
individual until such amount so paid is exhausted.
(2) If benefits for any week, when reduced as provided in this
subsection, result in an amount that is not a multiple of $1, such benefits
shall be rounded to the next lower multiple of $1.
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(3) Notwithstanding the reemployment provisions of K.S.A. 44-
705(e), and amendments thereto, any individual whose benefit amount is
completely reduced under this subsection for 52 or more weeks shall, upon
exhaustion of the separation pay, be entitled to a new benefit year based
upon entitlement from the base period of the claim that was reduced.
(j) Except as provided in subsection (k), for weeks commencing on
and after January 1, 2014, and ending before September 5, 2021, if at the
beginning of the benefit year, the three-month seasonally adjusted average
unemployment rate for the state of Kansas is: (1) Less than 4.5%, a
claimant shall be eligible for a maximum of 16 weeks of benefits; (2) at
least 4.5% but less than 6%, a claimant shall be eligible for a maximum of
20 weeks of benefits; or (3) at least 6%, a claimant shall be eligible for a
maximum of 26 weeks of benefits.
(k) On and after the effective date of this act, a claimant shall be
eligible for a maximum of 26 weeks of benefits. A claimant who filed a
new claim on or after January 1, 2020, and before the effective date of this
act shall be eligible for a maximum of 26 weeks of benefits including the
number of weeks of benefits received after January 1, 2020, and before the
effective date of this act. This subsection shall not apply to initial claims
effective on and after September 5, 2021.
(l) For weeks commencing on and after September 5, 2021, if at the
beginning of the benefit year, the three-month seasonally adjusted average
unemployment rate for the state of Kansas is: (1) Less than 5%, a claimant
shall be eligible for a maximum of 16 weeks of benefits; (2) at least 5%
but less than 6%, a claimant shall be eligible for a maximum of 20 weeks
of benefits; or (3) at least 6%, a claimant shall be eligible for a maximum
of 26 weeks of benefits.
(m)(k) Upon the secretary of labor's receipt of notification that the
claimant has become employed, the secretary shall notify the secretary of
the department for children and families in order that the secretary for
children and families may determine the claimant's eligibility for state or
federal benefits provided or facilitated by the department for children and
families. The department of labor and the department for children and
families shall enter into a memorandum of understanding that shall
provide for the transfer of information as provided in this subsection.
Sec. 3. K.S.A. 44-705 is hereby amended to read as follows: 44-705.
Except as provided by K.S.A. 44-757, and amendments thereto, an
unemployed individual shall be eligible to receive benefits with respect to
any week only if the secretary, or a person or persons designated by the
secretary, finds that:
(a) The claimant has registered for work at and thereafter continued
to report at an employment office in accordance with rules and regulations
adopted by the secretary, except that, subject to the provisions of K.S.A.
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44-704(a), and amendments thereto, the secretary may adopt rules and
regulations that waive or alter either or both of the requirements of this
subsection.
(b) The claimant has made a claim for benefits with respect to such
week in accordance with rules and regulations adopted by the secretary.
(c) (1) The claimant is able to perform the duties of such claimant's
customary occupation or the duties of other occupations that the claimant
is reasonably fitted by training or experience, and is available for work, as
demonstrated by the claimant's pursuit of the full course of action most
reasonably calculated to result in the claimant's reemployment except that,
notwithstanding any other provisions of this section, an unemployed
claimant otherwise eligible for benefits shall not become ineligible for
benefits:
(A) Because of the claimant's enrollment in and satisfactory pursuit
of approved training, including training approved under section 236(a)(1)
of the trade act of 1974;
(B) solely because such individual is seeking only part-time
employment if the individual is available for a number of hours per week
that are comparable to the individual's part-time work experience in the
base period; or
(C) because a claimant is not actively seeking work:
(i) During a state of disaster emergency proclaimed by the governor
pursuant to K.S.A. 48-924 and 48-925, and amendments thereto;
(ii) in response to the spread of the public health emergency of
COVID-19; and
(iii) the state's temporary waiver of the work search requirement
under the employment security law for such claimant is in compliance
with the families first coronavirus response act, public law 116-127.
(2) The secretary shall develop and implement procedures to address
claimants who refuse to return to suitable work or refuse to accept an offer
of suitable work without good cause. Such procedures shall include the
receipt and processing of job refusal reports from employers, the
evaluation of such reports in consideration of the claimant's work history
and skills and suitability of the offered employment and guidelines for a
determination of whether the claimant shall remain eligible for
unemployment benefits or has failed to meet the work search requirements
of this subsection or the requirements of K.S.A. 44-706(c), and
amendments thereto. In determining whether the employment offered is
suitable, the secretary's considerations shall include whether the
employment offers wages comparable to the claimant's recent employment
and work duties that correspond to the claimant's education level and
previous work experience. The secretary shall also consider whether the
employment offers wages of at least the amount of the claimant's
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maximum weekly benefits.
(3) To facilitate the requirements of paragraph (2), the secretary shall
provide readily accessible means for employers to notify the department
when a claimant refuses to return to work or refuses an offer of
employment, including by telephone, email or an online web portal. The
secretary shall create or cause to be created in the new unemployment
insurance information technology system as provided by K.S.A. 44-772,
and amendments thereto, an audit process for employers to submit reports
regarding activities related to the work search requirement or to the my
reemployment plan, established by K.S.A. 44-775, and amendments
thereto, and applicants that accept interview appointments but do not
participate or notify the interviewing employer of their inability to
participate in the scheduled interview. The secretary shall not be required
to implement such audit process prior to the completion of such new
unemployment insurance information technology system. Nothing in this
subsection shall be construed as to require an employer to report such job
refusals or such failures to appear for a scheduled interview without
notifying the interviewing employer to the department.
(4) At the time of receipt of notice from an employer pursuant to
paragraph (3), the secretary shall, within 10 business days of receipt of
such notice from the employer, provide a notice to the claimant who has
refused to return to work or to accept an offer of suitable work without
good cause. The method of providing the notice to the claimant shall be
consistent with other correspondence from the department to the claimant
and may include mail, telephone, email or through an online web portal.
The notice shall, at minimum, include the following information:
(A) A summary of state employment security law regarding a
claimant's duties to return to work or accept suitable work;
(B) a statement that the claimant has been or may be disqualified and
the claimant's right to collect benefits has been or may be terminated for
refusal to return to work or accept suitable work without good cause, as
provided by this subsection and K.S.A. 44-706(c), and amendments
thereto;
(C) an explanation of what constitutes suitable work under the
employment security law; and
(D) instructions for contesting a denial of a claim if the denial is
based upon a report by an employer that the claimant has refused to return
to work or has refused to accept an offer of suitable work.
(5) The secretary shall include notices to all active employers
regarding work search noncompliance reporting options provided in
paragraph (3) in the department of labor's annual summary of benefit
charges pursuant to K.S.A. 44-710b(d), and amendments thereto, and in
the rate notices to employers pursuant to K.S.A. 44-710b(a), and
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amendments thereto. The secretary shall not be required to implement
such notice requirements prior to the completion of the new unemployment
insurance information technology system, as provided by K.S.A. 44-772,
and amendments thereto.
(5)(6) For the purposes of this subsection, an inmate of a custodial or
correctional institution shall be deemed to be unavailable for work and not
eligible to receive unemployment compensation while incarcerated.
(d) (1) Except as provided further, the claimant has been unemployed
for a waiting period of one week or the claimant is unemployed and has
satisfied the requirement for a waiting period of one week under the shared
work unemployment compensation program as provided in K.S.A. 44-
757(k)(4), and amendments thereto, and that period of one week, in either
case, occurs within the benefit year that includes the week for which the
claimant is claiming benefits. No week shall be counted as a week of
unemployment for the purposes of this subsection:
(A) If benefits have been paid for such week;
(B) if the individual fails to meet with the other eligibility
requirements of this section; or
(C) if an individual is seeking unemployment benefits under the
unemployment compensation law of any other state or of the United
States, except that if the appropriate agency of such state or of the United
States finally determines that the claimant is not entitled to unemployment
benefits under such other law, this subparagraph shall not apply.
(2) (A) The waiting week requirement of paragraph (1) shall not
apply to:
(i) New claims by claimants who become unemployed as a result of
an employer terminating business operations within this state, declaring
bankruptcy or initiating a work force reduction pursuant to public law 100-
379, the federal worker adjustment and retraining notification act, 29
U.S.C. §§ 2101 through 2109, as amended; or
(ii) new claims filed on or after April 5, 2020, through December 26,
2020, in accordance with the families first coronavirus response act, public
law 116-127 and the federal CARES act, public law 116-136.
(B) The secretary shall adopt rules and regulations to administer the
provisions of this paragraph.
(3) If the waiting week requirement of paragraph (1) applies, a
claimant shall become eligible to receive compensation for the waiting
period of one week, pursuant to paragraph (1), upon completion of three
weeks of unemployment consecutive to such waiting period. This
paragraph shall not apply to initial claims effective on and after April 1,
2021.
(e) For benefit years established on and after the effective date of this
act, the claimant has been paid total wages for insured work in the
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claimant's base period of not less than 30 times the claimant's weekly
benefit amount and has been paid wages in more than one quarter of the
claimant's base period, except that the wage credits of an individual earned
during the period commencing with the end of a prior base period and
ending on the date that such individual filed a valid initial claim shall not
be available for benefit purposes in a subsequent benefit year unless, in
addition thereto, such individual has returned to work and subsequently
earned wages for insured work in an amount equal to at least eight times
the claimant's current weekly benefit amount.
(f) The claimant participates in reemployment services, such as job
search assistance services, if the individual has been determined to be
likely to exhaust regular benefits and needs reemployment services
pursuant to a profiling system established by the secretary, unless the
secretary determines that: (1) The individual has completed such services;
or (2) there is justifiable cause for the claimant's failure to participate in
such services.
(g) The claimant is returning to work after a qualifying injury and has
been paid total wages for insured work in the claimant's alternative base
period of not less than 30 times the claimant's weekly benefit amount and
has been paid wages in more than one quarter of the claimant's alternative
base period if:
(1) The claimant has filed for benefits within four weeks of being
released to return to work by a licensed and practicing health care
provider;
(2) the claimant files for benefits within 24 months of the date the
qualifying injury occurred; and
(3) the claimant attempted to return to work with the employer where
the qualifying injury occurred, but the individual's regular work or
comparable and suitable work was not available.
Sec. 4. K.S.A. 44-709 is hereby amended to read as follows: 44-709.
(a) Filing. Claims for benefits shall be made in accordance with rules and
regulations adopted by the secretary. The secretary shall furnish a copy of
such rules and regulations to any individual requesting them. Each
employer shall: (1) Post and maintain printed statements furnished by the
secretary without cost to the employer in places readily accessible to
individuals in the service of the employer; and (2) provide any other
notification to individuals in the service of the employer as required by the
secretary pursuant to the families first coronavirus response act, public law
116-127.
(b) Determination. (1) Except as otherwise provided in this
paragraph, a representative designated by the secretary, and hereinafter
referred to as an examiner, shall promptly examine the claim and, on the
basis of the facts found by the examiner, shall determine whether or not
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the claim is valid. If the examiner determines that the claim is valid, the
examiner shall determine the first day of the benefit year, the weekly
benefit amount and the total amount of benefits payable with respect to the
benefit year. If the claim is determined to be valid, the examiner shall send
a notice to the last employing unit who shall respond within 10 days by
providing the examiner all requested information including all information
required for a decision under K.S.A. 44-706, and amendments thereto. The
information may be submitted by the employing unit in person at an
employment office of the secretary or by mail, by telefacsimile machine or
by electronic mail. If the required information is not submitted or
postmarked within a response time limit of 10 days after the examiner's
notice was sent, the employing unit shall be deemed to have waived its
standing as a party to the proceedings arising from the claim and shall be
barred from protesting any subsequent decisions about the claim by the
secretary, a referee, the employment security board of review or any court,
except that the employing unit's response time limit may be waived or
extended by the examiner or upon appeal, if timely response was
impossible due to excusable neglect. In any case in which the payment or
denial of benefits will be determined by the provisions of K.S.A. 44-
706(d), and amendments thereto, the examiner shall promptly transmit the
claim to a special examiner designated by the secretary to make a
determination on the claim after the investigation as the special examiner
deems necessary. The parties shall be promptly notified of the special
examiner's decision and any party aggrieved by the decision may appeal to
the referee as provided in subsection (c). The claimant and the claimant's
most recent employing unit shall be promptly notified of the examiner's or
special examiner's decision.
(2) The examiner may for good cause reconsider the examiner's
decision and shall promptly notify the claimant and the most recent
employing unit of the claimant, that the decision of the examiner is to be
reconsidered, except that no reconsideration shall be made after the
termination of the benefit year.
(3) Notwithstanding the provisions of any other statute, a decision of
an examiner or special examiner shall be final unless the claimant or the
most recent employing unit of the claimant files an appeal from the
decision as provided in subsection (c), except that the time limit for appeal
may be waived or extended by the referee or board of review if a timely
response was impossible due to excusable neglect. The appeal must be
filed within 16 calendar days after the mailing of notice to the last known
addresses of the claimant and employing unit or, if notice is not by mail,
within 16 calendar days after the delivery of the notice to the parties.
(c) Appeals. Unless the appeal is withdrawn, a referee, after affording
the parties reasonable opportunity for fair hearing, shall affirm or modify
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the findings of fact and decision of the examiner or special examiner. The
parties shall be duly notified of the referee's decision, together with the
reasons for the decision. The decision shall be final, notwithstanding the
provisions of any other statute, unless a further appeal to the employment
security board of review is filed within 16 calendar days after the mailing
of the decision to the parties' last known addresses or, if notice is not by
mail, within 16 calendar days after the delivery of the decision, except that
the time limit for appeal may be waived or extended by the referee or
board of review if a timely response was impossible due to excusable
neglect.
(d) Referees. The secretary shall appoint, in accordance with K.S.A.
44-714(c), and amendments thereto, one or more referees to hear and
decide disputed claims.
(e) Time, computation and extension. In computing the period of time
for an employing unit response or for appeals under this section from the
examiner's or the special examiner's determination or from the referee's
decision, the day of the act, event or default from which the designated
period of time begins to run shall not be included. The last day of the
period shall be included unless it is a Saturday, Sunday or legal holiday, in
which event the period runs until the end of the next day that is not a
Saturday, Sunday or legal holiday.
(f) Board of review. There is hereby created an employment security
board of review, hereinafter referred to as the board.
(1) (A) Except as provided in subparagraph (B), the board shall
consist of three members. Each member of the board shall be appointed for
a term of four years as provided in this subsection. Not more than two
members of the board shall belong to the same political party.
(B) On the effective date of this act, The board shall consist of six
members. The six-member board shall consist of the following: (i) Three
members appointed under subparagraph (A); and (ii) three members
appointed for a term that shall expire upon the expiration of this
subparagraph. Each member of the board appointed under subparagraph
(B)(ii) shall be appointed as provided in this subsection. Not more than
four members of the six-member board shall belong to the same political
party. The provisions of this subparagraph shall expire on June 30, 2024.
(2) (A) When a vacancy on the employment security board of review
occurs, the workers compensation and employment security boards
nominating committee established under K.S.A. 44-551, and amendments
thereto, shall convene and submit a qualified nominee to the governor for
appointment to each vacancy on the employment security board of review,
subject to confirmation by the senate as provided by K.S.A. 75-4315b, and
amendments thereto. Minimum qualifications for qualified candidates for
appointment to the employment security board of review, in order of
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priority, shall be:
(i) At least 10 years direct experience with human resources
processes, polices, guidelines or employee relations;
(ii) at least seven years direct experience with employment security
laws and processes; and
(iii) knowledge of unemployment and labor laws.
(B) Applications for employment security board of review positions
shall be submitted to the director of unemployment. The director shall
determine if an applicant meets the qualifications for an employment
security review board member as prescribed in paragraph (A). Qualified
applicants for a position of employment security review board member
shall be submitted by the director to the workers compensation and
employment security boards nominating committee for consideration. The
workers compensation and employment security boards nominating
committee may nominate the candidate for consideration by the governor.
(C) The governor shall either: (A) accept and submit to the senate for
confirmation the person nominated by the nominating committee; or (B)
reject the nomination and request the nominating committee to nominate
another person for that position. Except as provided by K.S.A. 46-2601,
and amendments thereto, no person appointed to the employment security
board of review, whose appointment is subject to confirmation by the
senate, shall exercise any power, duty or function as a member until
confirmed by the senate.
(3) No member of the employment security board of review shall
serve more than two consecutive terms. This paragraph shall not apply to
members of the board appointed under subsection (f)(1)(B)(ii). The service
of a board member appointed under subsection (f)(1)(B)(ii) shall not
constitute a term as contemplated in this paragraph.
(4) Each member of the employment security board shall serve until a
successor has been appointed and confirmed. Any vacancy in the
membership of the board occurring prior to expiration of a term shall be
filled by appointment for the unexpired term in the same manner as
provided for original appointment of the member.
(5) Each member of the employment security board of review shall
be entitled to receive as compensation for the member's services at the rate
of $15,000 per year, together with the member's travel and other necessary
expenses actually incurred in the performance of the member's official
duties in accordance with rules and regulations adopted by the secretary.
Members' compensation and expenses shall be paid from the employment
security administration fund.
(6) The employment security board of review shall organize annually
by the election of a chairperson from among its members. The chairperson
shall serve in that capacity for a term of one year and until a successor is
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elected. For the purpose of hearing and determining cases, the board
members may sit in panels. A board panel shall consist of three members
with not more than two members belonging to the same political party.
The chairperson may sit as a member of a panel and shall preside over
such panel. When the chairperson is not a member of a hearing panel, the
chairperson shall appoint a member of the panel to preside. The board or
board panel shall meet on the first Monday of each month or on the call of
the chairperson or any two members of the board at the place designated.
The secretary of labor shall appoint an executive secretary of the board
and the executive secretary or the executive secretary's designee shall
attend the meetings of the board and board panels.
(7) The employment security board of review or board panel, on its
own motion, may affirm, modify or set aside any decision of a referee on
the basis of the evidence previously submitted in the case; may direct the
taking of additional evidence; or may permit any of the parties to initiate
further appeal before it. The board or board panel shall permit such further
appeal by any of the parties interested in a decision of a referee that
overrules or modifies the decision of an examiner. The board or board
panel may remove to itself the proceedings on any claim pending before a
referee. Any proceedings so removed to the board or board panel shall be
heard in accordance with the requirements of subsection (c). The board or
board panel shall promptly notify the interested parties of its findings and
decision.
(8) A simple majority of the members of the employment security
board of review or board panel shall constitute a quorum and no action of
the board or board panel shall be valid unless it has the concurrence of a
majority of its members. A vacancy on the board shall not impair the right
of a quorum to exercise all the rights and perform all the duties of the
board.
(g) Procedure. The manner that disputed claims are presented, the
reports on claims required from the claimant and from employers and the
conduct of hearings and appeals shall be in accordance with rules of
procedure prescribed by the employment security board of review for
determining the rights of the parties, whether or not such rules conform to
common law or statutory rules of evidence and other technical rules of
procedure. A full and complete record shall be kept of all proceedings and
decisions in connection with a disputed claim. All testimony at any hearing
upon a disputed claim shall be recorded, but need not be transcribed unless
the disputed claim is further appealed. In the performance of its official
duties, the board or board panel shall have access to all of the records that
pertain to the disputed claim and are in the custody of the secretary of
labor and shall receive the assistance of the secretary upon request.
(h) Witness fees. Witnesses subpoenaed pursuant to this section shall
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be allowed fees and necessary travel expenses at rates fixed by the board.
Such fees and expenses shall be deemed a part of the expense of
administering this act.
(i) Review of board action. Any action of the employment security
board of review including that of a board panel, may not be reconsidered
after the mailing of the decision. An action of the board or board panel
shall become final unless a petition for review in accordance with the
Kansas judicial review act is filed within 16 calendar days after the date of
the mailing of the decision. If an appeal has not been filed within 16
calendar days of the date of the mailing of the decision, the decision
becomes final. No bond shall be required for commencing an action for
such review. In addition to those persons having standing pursuant to
K.S.A. 77-611, and amendments thereto, the examiner shall have standing
to obtain judicial review of an action of such board or board panel. The
review proceeding, and the questions of law certified, shall be heard in a
summary manner and shall be given precedence over all other civil cases
except cases arising under the workers compensation act.
(j) Any finding of fact or law, judgment, determination, conclusion or
final order made by the employment security board of review or board
panel or any examiner, special examiner, referee or other person with
authority to make findings of fact or law pursuant to the employment
security law is not admissible or binding in any separate or subsequent
action or proceeding, between a person and a present or previous employer
brought before an arbitrator, court or judge of the state or the United
States, regardless of whether the prior action was between the same or
related parties or involved the same facts.
(k) In any proceeding or hearing conducted under this section, a party
to the proceeding or hearing may appear before a referee or the
employment security board of review or board panel either personally or
by means of a designated representative to present evidence and to state
the position of the party. Hearings may be conducted in person, by
telephone or other means of electronic communication. The hearing shall
be conducted by telephone or other means of electronic communication if
none of the parties requests an in-person hearing. If a party requests an in-
person hearing, the referee or board or board panel shall have the
discretion to deny the request in the absence of good cause shown for the
request by the requesting party. If a request for an in-person hearing is
granted, the referee or board or board panel shall have the discretion to
require all parties to appear in person or allow the party not requesting an
in-person hearing to appear by telephone or other means of electronic
communication. The notice of hearing shall include notice to the parties of
their right to request an in-person hearing and instructions on how to make
the request.
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Sec. 5. K.S.A. 44-710 is hereby amended to read as follows: 44-710.
(a) Payment. Contributions shall accrue and become payable by each
contributing employer for each calendar year that the contributing
employer is subject to the employment security law with respect to wages
paid for employment. Such contributions shall become due and be paid by
each contributing employer to the secretary for the employment security
fund in accordance with such rules and regulations as the secretary may
adopt and shall not be deducted, in whole or in part, from the wages of
individuals in such employer's employ. In the payment of any
contributions, a fractional part of $.01 shall be disregarded unless it
amounts to $.005 or more, in which case it shall be increased to $.01.
Should contributions for any calendar quarter be less than $5, no payment
shall be required.
(b) Rates and base of contributions. (1) Except as provided in
paragraph (2), each contributing employer shall pay contributions on
wages paid by the contributing employer during each calendar year with
respect to employment as provided in K.S.A. 44-710a, and amendments
thereto. Except that, notwithstanding the federal law requiring the
secretary of labor to annually recalculate the contribution rate, for calendar
years 2010, 2011, 2012, 2013 and 2014, the secretary shall charge each
contributing employer in rate groups 1 through 32 the contribution rate in
the 2010 original tax rate computation table, with contributing employers
in rate groups 33 through 51 being capped at a 5.4% contribution rate. For
calendar year 2021, unemployment tax rates for eligible employers shall
be limited to the standard rate schedule in K.S.A. 44-710a, and
amendments thereto. Therefore, no additional solvency adjustment shall be
applied.
(2) (A) If the congress of the United States either amends or repeals
the Wagner-Peyser act, the federal unemployment tax act, the federal
social security act, or subtitle C of chapter 23 of the federal internal
revenue code of 1986, or any act or acts supplemental to or in lieu thereof,
or any part or parts of any such law, or if any such law, or any part or parts
thereof, are held invalid with the effect that appropriations of funds by
congress and grants thereof to the state of Kansas for the payment of costs
of administration of the employment security law are no longer available
for such purposes; or (B) if employers in Kansas subject to the payment of
tax under the federal unemployment tax act are granted full credit against
such tax for contributions or taxes paid to the secretary of labor, then, and
in either such case, beginning with the year that the unavailability of
federal appropriations and grants for such purpose occurs or that such
change in liability for payment of such federal tax occurs and for each year
thereafter, the rate of contributions of each contributing employer shall be
equal to the total of 0.5% and the rate of contributions as determined for
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such contributing employer under K.S.A. 44-710a, and amendments
thereto. The amount of contributions that each contributing employer
becomes liable to pay under this paragraph (2) over the amount of
contributions that such contributing employer would be otherwise liable to
pay shall be credited to the employment security administration fund to be
disbursed and paid out under the same conditions and for the same
purposes as other moneys are authorized to be paid from the employment
security administration fund, except that, if the secretary determines that as
of the first day of January of any year there is an excess in the employment
security administration fund over the amount required to be disbursed
during such year, an amount equal to such excess as determined by the
secretary shall be transferred to the employment security fund.
(c) Charging of benefit payments. (1) The secretary shall maintain a
separate account for each contributing employer, and shall credit the
contributing employer's account with all the contributions paid on the
contributing employer's own behalf. Nothing in the employment security
law shall be construed to grant any employer or individuals in such
employer's service prior claims or rights to the amounts paid by such
employer into the employment security fund either on such employer's
own behalf or on behalf of such individuals. Benefits paid shall be charged
against the accounts of each base period employer in the proportion that
the base period wages paid to an eligible individual by each such employer
bears to the total wages in the base period. Benefits shall be charged to
contributing employers' accounts and rated governmental employers'
accounts upon the basis of benefits paid during each twelve-month period
ending on the computation date calendar quarter.
(2) (A) Benefits paid in benefit years established by valid new claims
shall not be charged to the account of a contributing employer or rated
governmental employer who is a base period employer if the examiner
finds that claimant was separated from the claimant's most recent
employment with such employer under any of the following conditions: (i)
Discharged for misconduct or gross misconduct connected with the
individual's work; (ii) leaving work voluntarily without good cause
attributable to the claimant's work or the employer; or (iii) discharged from
an employer directly impacted by COVID-19 in accordance with the
families first coronavirus response act, public law 116-127.
(B) Where base period wage credits of a contributing employer or
rated governmental employer represent part-time employment and the
claimant continues in that part-time employment with that employer
during the period for which benefits are paid, then that employer's account
shall not be charged with any part of the benefits paid if the employer
provides the secretary with information as required by rules and
regulations. For the purposes of this subsection (c)(2)(B) subparagraph,
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"part-time employment" means any employment when an individual works
less than full-time because the individual's services are not required for the
customary, scheduled full-time hours prevailing at the work place or the
individual does not customarily work the regularly scheduled full-time
hours due to personal choice or circumstances.
(C) No contributing employer or rated governmental employer's
account shall be charged with any extended benefits paid in accordance
with the employment security law, except for weeks of unemployment
beginning after December 31, 1978, all contributing governmental
employers and governmental rated employers shall be charged an amount
equal to all extended benefits paid.
(D) No contributing employer, rated governmental employer or
reimbursing employer's account shall be charged for any additional
benefits paid during the period July 1, 2003 through June 30, 2004.
(E) No contributing employer or rated governmental employer's
account will be charged for benefits paid a claimant while pursuing an
approved training course as defined in K.S.A. 44-703(s), and amendments
thereto.
(F)(E) No contributing employer or rated governmental employer's
account shall be charged with respect to the benefits paid to any individual
whose base period wages include wages for services not covered by the
employment security law prior to January 1, 1978, to the extent that the
employment security fund is reimbursed for such benefits pursuant to
section 121 of public law 94-566 (, 90 Stat. 2673).
(G)(F) With respect to weeks of unemployment beginning after
December 31, 1977, wages for insured work shall include wages paid for
previously uncovered services. For the purposes of this subsection (c)(2)
(G) subparagraph, the term "previously uncovered services" means
services that were not covered employment, at any time during the one-
year period ending December 31, 1975, except to the extent that assistance
under title II of the federal emergency jobs and unemployment assistance
act of 1974 was paid on the basis of such services, and that:
(i) Are agricultural labor as defined in K.S.A. 44-703(w), and
amendments thereto, or domestic service as defined in K.S.A. 44-703(aa),
and amendments thereto;
(ii) are services performed by an employee of this state or a political
subdivision thereof, as provided in K.S.A. 44-703(i)(3)(E), and
amendments thereto; or
(iii) are services performed by an employee of a nonprofit educational
institution that is not an institution of higher education.
(H) No contributing employer or rated governmental employer's
account shall be charged with respect to their pro rata share of benefit
charges if such charges are of $100 or less.
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(I)(G) Contributing employers, rated governmental employers and
reimbursing employers shall be held harmless for and shall not be required
to reimburse the state for claims or benefits paid that have been reported
by the employer to the secretary and determined by the secretary as
fraudulent or as an improper payment, unless the secretary determines the
claims are not fraudulent or improper as provided by K.S.A. 44-710b(b)(2)
(A), and amendments thereto. The time limitation for disputing a claim or
an appeal of a claim as provided by this section, or by any other provision
of the employment security law, shall not apply to identifications of fraud
reported to the secretary for claims or benefits paid during the period
beginning on March 15, 2020, through December 31, 2022. Contributing
employers, rated governmental employers and reimbursing employers
shall be refunded or credited, in the discretion of the employer, as provided
by K.S.A. 44-710b, and amendments thereto, for any claims or benefits
paid that have been reported as fraudulent.
(3) An employer's account shall not be relieved of charges relating to
a payment that was made erroneously if the secretary determines that:
(A) The erroneous payment was made because the employer, or the
agent of the employer, was at fault for failing to respond timely or
adequately to a written request from the secretary for information relating
to the claim for unemployment compensation; and
(B) the employer or agent has established a pattern of failing to
respond timely or adequately to requests for information.
(C) For purposes of this paragraph:
(i) "Erroneous payment" means a payment that but for the failure by
the employer or the employer's agent with respect to the claim for
unemployment compensation, would not have been made; and
(ii) "pattern of failure" means repeated documented failure on the part
of the employer or the agent of the employer to respond, taking into
consideration the number of instances of failure in relation to the total
volume of requests. An employer or employer's agent failing to respond as
described in (c)(3)(A) subparagraph (A) shall not be determined to have
engaged in a "pattern of failure" if the number of such failures during the
year prior to such request is fewer than two, or less than 2%, of such
requests, whichever is greater.
(D) Determinations of the secretary prohibiting the relief of charges
pursuant to this section shall be subject to appeal or protest as other
determinations of the agency with respect to the charging of employer
accounts.
(E) This paragraph shall apply to erroneous payments established on
and after the effective date of this act.
(4) The examiner shall notify any base period employer whose
account will be charged with benefits paid following the filing of a valid
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new claim and a determination by the examiner based on all information
relating to the claim contained in the records of the division of
employment security. Such notice shall become final and benefits charged
to the base period employer's account in accordance with the claim unless
within 10 calendar days from the date the notice was sent, the base period
employer requests in writing that the examiner reconsider the
determination and furnishes any required information in accordance with
the secretary's rules and regulations. In a similar manner, a notice of an
additional claim followed by the first payment of benefits with respect to
the benefit year, filed by an individual during a benefit year after a period
in such year during which such individual was employed, shall be given to
any base period employer of the individual who has requested such a
notice within 10 calendar days from the date the notice of the valid new
claim was sent to such base period employer. For purposes of this
subsection (c)(3) paragraph, if the required information is not submitted
or postmarked within a response time limit of 10 days after the base period
employer notice was sent, the base period employer shall be deemed to
have waived its standing as a party to the proceedings arising from the
claim and shall be barred from protesting any subsequent decisions about
the claim by the secretary, a referee, the board of review or any court,
except that the base period employer's response time limit may be waived
or extended by the examiner or upon appeal, if timely response was
impossible due to excusable neglect. The examiner shall notify the
employer of the reconsidered determination, which shall be subject to
appeal or further reconsideration, in accordance with the provisions of
K.S.A. 44-709, and amendments thereto.
(5) Time, computation and extension. In computing the period of time
for a base period employer response or appeals under this section from the
examiner's or the special examiner's determination or from the referee's
decision, the day of the act, event or default from which the designated
period of time begins to run shall not be included. The last day of the
period shall be included unless it is a Saturday, Sunday or legal holiday, in
which event the period runs until the end of the next day that is not a
Saturday, Sunday or legal holiday.
(d) Pooled fund. All contributions and payments in lieu of
contributions and benefit cost payments to the employment security fund
shall be pooled and available to pay benefits to any individual entitled
thereto under the employment security law, regardless of the source of
such contributions or payments in lieu of contributions or benefit cost
payments.
(e) Election to become reimbursing employer; payment in lieu of
contributions. (1) Any governmental entity, Indian tribes or tribal units,
(subdivisions, subsidiaries or business enterprises wholly owned by such
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Indian tribes), for which services are performed as described in K.S.A. 44-
703(i)(3)(E), and amendments thereto, or any nonprofit organization or
group of nonprofit organizations described in section 501(c)(3) of the
federal internal revenue code of 1986 that is exempt from income tax
under section 501(a) of such code, that becomes subject to the
employment security law may elect to become a reimbursing employer
under this subsection (e)(1) and agree to pay the secretary for the
employment security fund an amount equal to the amount of regular
benefits and ½ of the extended benefits paid that are attributable to service
in the employ of such reimbursing employer, except that each reimbursing
governmental employer, Indian tribes or tribal units shall pay an amount
equal to the amount of regular benefits and extended benefits paid for
weeks of unemployment beginning after December 31, 1978, for
governmental employers and December 21, 2000, for Indian tribes or
tribal units to individuals for weeks of unemployment that begin during the
effective period of such election.
(A) Any employer identified in this subsection (e)(1) paragraph may
elect to become a reimbursing employer for a period encompassing not
less than four complete calendar years if such employer files with the
secretary a written notice of such election within the 30-day period
immediately following January 1 of any calendar year or within the 30-day
period immediately following the date when a determination of
subjectivity to the employment security law is issued, whichever occurs
later.
(B) Any employer that makes an election to become a reimbursing
employer in accordance with subparagraph (A) will continue to be liable
for payments in lieu of contributions until such employer files with the
secretary a written notice terminating its election not later than 30 days
prior to the beginning of the calendar year for which such termination shall
first be effective.
(C) Any employer identified in this subsection (e)(1) paragraph that
has remained a contributing employer and has been paying contributions
under the employment security law for a period subsequent to January 1,
1972, may change to a reimbursing employer by filing with the secretary
not later than 30 days prior to the beginning of any calendar year a written
notice of election to become a reimbursing employer. Such election shall
not be terminable by the employer for four complete calendar years.
(D) The secretary may for good cause extend the period within which
a notice of election, or a notice of termination, must be filed and may
permit an election to be retroactive but not any earlier than with respect to
benefits paid after January 1 of the year such election is received.
(E) The secretary, in accordance with such rules and regulations as
the secretary may adopt, shall notify each employer identified in
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subsection (e)(1) this paragraph of any determination that the secretary
may make of its status as an employer and of the effective date of any
election that it makes to become a reimbursing employer and of any
termination of such election. Such determinations shall be subject to
reconsideration, appeal and review in accordance with the provisions of
K.S.A. 44-710b, and amendments thereto.
(2) Reimbursement reports and payments. Payments in lieu of
contributions shall be made in accordance with the provisions of
subparagraph (A) by all reimbursing employers except the state of Kansas.
Each reimbursing employer shall report total wages paid during each
calendar quarter by filing quarterly wage reports with the secretary that
shall be filed by the last day of the month following the close of each
calendar quarter. Wage reports are deemed filed as of the date they are
placed in the United States mail.
(A) At the end of each calendar quarter, or at the end of any other
period as determined by the secretary, the secretary shall bill each
reimbursing employer, except the state of Kansas: (i) An amount to be paid
that is equal to the full amount of regular benefits plus ½ of the amount of
extended benefits paid during such quarter or other prescribed period that
is attributable to service in the employ of such reimbursing employer; and
(ii) for weeks of unemployment beginning after December 31, 1978, each
reimbursing governmental employer and December 21, 2000, for Indian
tribes or tribal units shall be certified an amount to be paid that is equal to
the full amount of regular benefits and extended benefits paid during such
quarter or other prescribed period that is attributable to service in the
employ of such reimbursing governmental employer.
(B) Payment of any bill rendered under subparagraph (A) shall be
made not later than 30 days after such bill was mailed to the last known
address of the reimbursing employer, or otherwise was delivered to such
reimbursing employer, unless there has been an application for review and
redetermination in accordance with subparagraph (D).
(C) Payments made by any reimbursing employer under the
provisions of this subsection (e)(2) paragraph shall not be deducted or
deductible, in whole or in part, from the remuneration of individuals in the
employ of such employer.
(D) The amount due specified in any bill from the secretary shall be
conclusive on the reimbursing employer, unless, not later than 15 days
after the bill was mailed to the last known address of such employer, or
was otherwise delivered to such employer, the reimbursing employer files
an application for redetermination in accordance with K.S.A. 44-710b, and
amendments thereto.
(E) Past due payments of amounts certified by the secretary under
this section shall be subject to the same interest, penalties and actions
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required by K.S.A. 44-717, and amendments thereto. (1) (i) If any
nonprofit organization or group of nonprofit organizations described in
section 501(c)(3) of the federal internal revenue code of 1986 or
governmental reimbursing employer is delinquent in making payments of
amounts certified by the secretary under this section, the secretary may
terminate such employer's election to make payments in lieu of
contributions as of the beginning of the next calendar year and such
termination shall be effective for such next calendar year and the calendar
year thereafter so that the termination is effective for two complete
calendar years. (2) (ii) Failure of the Indian tribe or tribal unit to make
required payments, including assessment of interest and penalty within 90
days of receipt of the bill will cause the Indian tribe to lose the option to
make payments in lieu of contributions as described pursuant to paragraph
(e)(1) for the following tax year unless payment in full is received before
contribution rates for the next tax year are calculated. (3) (iii) Any Indian
tribe that loses the option to make payments in lieu of contributions due to
late payment or nonpayment, as described in this paragraph (2), shall have
such option reinstated, if after a period of one year, all contributions have
been made on time and no contributions, payments in lieu of contributions
for benefits paid, penalties or interest remain outstanding.
(F) Failure of the Indian tribe or any tribal unit thereof to make
required payments, including assessments of interest and penalties, after
all collection activities deemed necessary by the secretary have been
exhausted, will cause services performed by such tribe to not be treated as
employment for purposes of K.S.A. 44-703(i)(3)(E), and amendments
thereto. If an Indian tribe fails to make payments required under this
section, including assessments of interest and penalties, within 90 days of
a final notice of delinquency, the secretary shall immediately notify the
United States internal revenue service and the United States department of
labor. The secretary may determine that any Indian tribe that loses
coverage pursuant to this paragraph may have services performed on
behalf of such tribe again deemed "employment" if all contributions,
payments in lieu of contributions, penalties and interest have been paid.
(G) In the discretion of the secretary, any employer who elects to
become liable for payments in lieu of contributions and any nonprofit
organization or group of nonprofit organizations described in section
501(c)(3) of the federal internal revenue code of 1986 or governmental
reimbursing employer or Indian tribe or tribal unit who is delinquent in
filing reports or in making payments of amounts certified by the secretary
under this section shall be required within 60 days after the effective date
of such election, in the case of an eligible employer so electing, or after the
date of notification to the delinquent employer under this subsection (e)(2)
(G) subparagraph, in the case of a delinquent employer, to execute and
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file with the secretary a surety bond, except that the employer may elect, in
lieu of a surety bond, to deposit with the secretary money or securities as
approved by the secretary or to purchase and deliver to an escrow agent a
certificate of deposit to guarantee payment. The amount of the bond,
deposit or escrow agreement required by this subsection (e)(2)(G) shall not
exceed 5.4% of the organization's taxable wages paid for employment by
the eligible employer during the four calendar quarters immediately
preceding the effective date of the election or the date of notification, in
the case of a delinquent employer. If the employer did not pay wages in
each of such four calendar quarters, the amount of the bond or deposit
shall be as determined by the secretary. Upon the failure of an employer to
comply with the provisions of this subsection (e)(2)(G) subparagraph
within the time limits imposed or to maintain the required bond or deposit,
the secretary may terminate the election of such eligible employer or
delinquent employer, as the case may be, to make payments in lieu of
contributions, and such termination shall be effective for the current and
next calendar year.
(H) The state of Kansas shall make reimbursement payments
quarterly at a fiscal year rate that shall be based upon: (i) The available
balance in the state's reimbursing account as of December 31 of each
calendar year; (ii) the historical unemployment experience of all covered
state agencies during prior years; (iii) the estimate of total covered wages
to be paid during the ensuing calendar year; (iv) the applicable fiscal year
rate of the claims processing and auditing fee under K.S.A. 75-3798, and
amendments thereto; and (v) actuarial and other information furnished to
the secretary by the secretary of administration. In accordance with K.S.A.
75-3798, and amendments thereto, the claims processing and auditing fees
charged to state agencies shall be deducted from the amounts collected for
the reimbursement payments under this paragraph (H) prior to making the
quarterly reimbursement payments for the state of Kansas. The fiscal year
rate shall be expressed as a percentage of covered total wages and shall be
the same for all covered state agencies. The fiscal year rate for each fiscal
year will be certified in writing by the secretary to the secretary of
administration on July 15 of each year and such certified rate shall become
effective on the July 1 immediately following the date of certification. A
detailed listing of benefit charges applicable to the state's reimbursing
account shall be furnished quarterly by the secretary to the secretary of
administration and the total amount of charges deducted from previous
reimbursing payments made by the state. On January 1 of each year, if it is
determined that benefit charges exceed the amount of prior reimbursing
payments, an upward adjustment shall be made therefor in the fiscal year
rate to be certified on the ensuing July 15. If total payments exceed benefit
charges, all or part of the excess may be refunded, at the discretion of the
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secretary, from the fund or retained in the fund as part of the payments that
may be required for the next fiscal year.
(3) Allocation of benefit costs. The reimbursing account of each
reimbursing employer shall be charged the full amount of regular benefits
and ½ of the amount of extended benefits paid except that each
reimbursing governmental employer's account shall be charged the full
amount of regular benefits and extended benefits paid for weeks of
unemployment beginning after December 31, 1978, to individuals whose
entire base period wage credits are from such employer. When benefits
received by an individual are based upon base period wage credits from
more than one employer then the reimbursing employer's or reimbursing
governmental employer's account shall be charged in the same ratio as
base period wage credits from such employer bear to the individual's total
base period wage credits. Notwithstanding any other provision of the
employment security law, no reimbursing employer's or reimbursing
governmental employer's account shall be charged for payments of
extended benefits that are wholly reimbursed to the state by the federal
government. Payments of unemployment compensation that are wholly
reimbursed to the reimbursing employer by the federal government shall
be charged for the purpose of such reimbursement under the federal
CARES act, public law 116-136.
(A) Proportionate allocation (when fewer than all reimbursing base
period employers are liable). If benefits paid to an individual are based on
wages paid by one or more reimbursing employers and on wages paid by
one or more contributing employers or rated governmental employers, the
amount of benefits payable by each reimbursing employer shall be an
amount that bears the same ratio to the total benefits paid to the individual
as the total base period wages paid to the individual by such employer
bears to the total base period wages paid to the individual by all of such
individual's base period employers.
(B) Proportionate allocation (when all base period employers are
reimbursing employers). If benefits paid to an individual are based on
wages paid by two or more reimbursing employers, the amount of benefits
payable by each such employer shall be an amount that bears the same
ratio to the total benefits paid to the individual as the total base period
wages paid to the individual by such employer bear to the total base period
wages paid to the individual by all of such individual's base period
employers.
(4) Group accounts. Two or more reimbursing employers may file a
joint application to the secretary for the establishment of a group account
for the purpose of sharing the cost of benefits paid that are attributable to
service in the employment of such reimbursing employers. Each such
application shall identify and authorize a group representative to act as the
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group's agent for the purposes of this paragraph. Upon approval of the
application, the secretary shall establish a group account for such
employers effective as of the beginning of the calendar quarter in which
the secretary receives the application and shall notify the group's
representative of the effective date of the account. Such account shall
remain in effect for not less than four years and thereafter such account
shall remain in effect until terminated at the discretion of the secretary or
upon application by the group. Upon establishment of the account, each
member of the group shall be liable for payments in lieu of contributions
with respect to each calendar quarter in the amount that bears the same
ratio to the total benefits paid in such quarter that are attributable to service
performed in the employ of all members of the group as the total wages
paid for service in employment by such member in such quarter bear to the
total wages paid during such quarter for service performed in the employ
of all members of the group. The secretary shall adopt such rules and
regulations as the secretary deems necessary with respect to applications
for establishment, maintenance and termination of group accounts that are
authorized by this paragraph, for addition of new members to, and
withdrawal of active members from such accounts, and for the
determination of the amounts that are payable under this paragraph by
members of the group and the time and manner of such payments.
Sec. 6. K.S.A. 2023 Supp. 44-710a is hereby amended to read as
follows: 44-710a. (a) Classification of employers by the secretary. The
term "employer" as used in this section refers to contributing employers.
The secretary shall classify employers in accordance with their actual
experience in the payment of contributions on their own behalf and with
respect to benefits charged against their accounts with a view of fixing
such contribution rates as will reflect such experience. If, as of the date
such classification of employers is made, the secretary finds that any
employing unit has failed to file any report required in connection
therewith, or has filed a report which the secretary finds incorrect or
insufficient, the secretary shall make an estimate of the information
required from such employing unit on the basis of the best evidence
reasonably available to the secretary at the time, and notify the employing
unit thereof by mail addressed to its last known address. Unless such
employing unit shall file the report or a corrected or sufficient report as the
case may be, within 15 days after the mailing of such notice, the secretary
shall compute such employing unit's rate of contributions on the basis of
such estimates, and the rate as so determined shall be subject to increase
but not to reduction on the basis of subsequently ascertained information.
The secretary shall determine the contribution rate of each employer in
accordance with the requirements of this section.
(1) New employers. (A) No employer will be eligible for a rate
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43 SB 478 48
computation until there have been 24 consecutive calendar months
immediately preceding the computation date throughout which benefits
could have been charged against such employer's account.
(B) (i) (a) Each employer who is not eligible for a rate contribution
shall pay contributions equal to 2.7% of wages paid during each calendar
year with regard to employment, except such employers engaged in the
construction industry shall pay a rate equal to 6%.
(b) (1) An employer who was not doing business in Kansas prior to
July 1, 2014, shall be eligible for either the new employer rate under
subsection (a)(1)(B)(i)(a) or the rate associated with the reserve ratio such
employer experienced in the state which such employer was formerly
located, but in no event less than 1% if such:
(A) Employer has been in operation in the other state or states for at
least the three years immediately preceding the date such employer
becomes a liable employer in Kansas;
(B) employer provides the authenticated account history from
information accumulated from operations of such employer in the other
state or all the other states necessary to compute a current Kansas rate; and
(C) employer's business operations established in Kansas are of the
same nature, as defined by the North American industrial classification
system, as conducted by such employer in the other state or states.
(2) The election authorized in subsection (a)(1)(B)(i)(b) of this
section must be made in writing within 30 days after notice of Kansas
liability. A rate in accordance with subsection (a)(1)(B)(i)(a) will be
assigned unless a timely election has been made.
(3) If the election is made timely, the employer's account will receive
the rate elected for the remainder of that rate year. The rate assigned for
the next and subsequent years will be determined by the condition of the
account on the computation date.
(ii) For purposes of this subsection (a), employers shall be classified
by industrial activity in accordance with standard procedures as set forth in
rules and regulations adopted by the secretary. Employers engaged in more
than one type of industrial activity shall be classified by principal activity.
All rates assigned will remain in effect for a complete calendar year. If the
sale or acquisition of a new establishment would require reclassification of
the employer to a different industry sector, the employer would be
promptly notified, and the contribution rate applicable to the new industry
sector would become effective the following January 1.
(C) "Computation date" means June 30 of each calendar year with
respect to rates of contribution applicable to the calendar year beginning
with the following January 1. In arriving at contribution rates for each
calendar year, contributions paid on or before July 31 following the
computation date for employment occurring on or prior to the computation
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date shall be considered for each contributing employer who has been
subject to this act for a sufficient period of time to have such employer's
rate computed under this subsection (a).
(2) Eligible employers. (A) A reserve ratio shall be computed for each
eligible employer by the following method: Total benefits charged to the
employer's account for all past years shall be deducted from all
contributions paid by such employer for all such years. The balance,
positive or negative, shall be divided by the employer's average annual
payroll, and the result shall constitute the employer reserve ratio.
(B) Negative account balance employers, as defined in subsection (d),
shall pay contributions at the rate referenced in subsection (a)(4)(B).
(C) Eligible employers, other than negative account balance
employers, who do not meet the average annual payroll requirements as
stated in K.S.A. 44-703(a)(2), and amendments thereto, will be issued the
maximum rate indicated by the maximum rate group of standard rate
schedule—standard schedule 7 in subsection (a)(4)(B)(ii) until such
employer establishes a new period of 24 consecutive calendar months
immediately preceding the computation date throughout which benefits
could have been charged against such employer's account by resuming the
payment of wages. Contribution rates effective for each calendar year
thereafter shall be determined as prescribed below.
(D) If the amounts collected from negative account balance
employers and paid into the employment security interest assessment fund
for the purpose of paying interest due and owing on funds received from
the federal unemployment account under title XII of the social security act
are in excess of the amounts needed to pay interest due, the amounts in
excess shall remain in the employment security interest assessment fund to
be used to pay interest in future years. Whenever the secretary certifies all
interest payments have been paid, any excess funds remaining in the
employment security interest assessment fund shall be transferred to the
employment security trust fund for the purpose of paying any remaining
principal amount due for advances described in this section. In the event
that the amount transferred from the employment security interest
assessment fund exceeds such remaining amount of principal due, the
balance shall be used for the purposes of the employment security trust
fund.
(3) Entering and expanding employer. (A) The secretary, as a method
of providing for a reduced rate of contributions to an employer shall verify
the qualifications in this statute that bear a direct relation to unemployment
risk for that employer.
(B) If, as of the computation date, an eligible, positive balance
employer's reserve ratio is significantly affected due to an increase in the
employer's taxable payroll of at least 100% and such increase is
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43 SB 478 50
attributable to a growth in employment, and not to a change in the taxable
wage base from the previous year, the secretary shall assign a reduced rate
of contributions for a period of three years.
(i) Such reduced rate of contributions shall be the new employer rate
described in subsection (a)(1)(B)(i)(a), or a rate based on the employer's
demonstrated risk as reflected in the employer's reserve fund ratio history.
(ii) To be eligible for such reduced rate, the employer must maintain a
positive account balance throughout the reduced-rate period and must have
an increase in account balance for each year.
(4) (A) For each rate year, the contribution schedule in effect shall be
determined by the applicable fund control table and rate schedule table of
subsection (a)(4)(B) (a)(4)(C).
(B) The secretary shall prepare contribution rate tables showing the
calculated maximum annual cost to contributing rated employers per
employee for the previous, current and ensuing rate year. Such
contribution rate tables shall be published each calendar year, no less
than 30 days prior to the end of such calendar year, on a publicly
accessible website maintained by the secretary.
(C) Effective rates. (i) Employer contribution rates to be effective for
each calendar year shall be determined by the applicable rate schedule in
clause (ii) and the fund control table for the rate year as specified
contained in this clause. The average high cost multiple of the trust fund as
of the computation date shall determine the contribution schedule in effect
for the next rate year. For purposes of subsection (a)(4)(B)(i) (a)(4)(C)(i),
the average high cost multiple is the reserve fund ratio divided by the
average high benefit cost rate. The average high benefit cost rate shall be
determined by averaging the three highest benefit cost rates over the last
20 years from the preceding fiscal year which ended June 30. The high
benefit cost rate is defined by dividing total benefits paid in the fiscal year
by total payrolls for covered employers in the fiscal year. The reserve fund
ratio shall be determined by dividing total assets in the employment
security fund provided for in K.S.A. 44-712(a), and amendments thereto,
excluding all moneys credited to the account of this state pursuant to
section 903 of the federal social security act, as amended, that have been
appropriated by the legislature, whether or not withdrawn from the trust
fund, and excluding contributions not yet paid on July 31, by total payrolls
for contributing employers for the preceding fiscal year that ended on June
30.
Fund Control Table A
For Rate Years 2016-2021
Lower AHCM Upper AHCM Solvency Adjustment
Threshold Threshold to Rate per
Standard Rate Schedule
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-1,000.00000 0.19999 1.60%
0.20000 0.44999 1.40%
0.45000 0.59999 1.20%
0.60000 0.74999 1.00%
0.75000 1.14999 0.00%
1.15000 1,000.00000 -0.50%
Fund Control Table B A
For Contributing Employers with a POSITIVE Account Balance
For Rate Year 2022 2025 and Ensuing Calendar Years
Proportional
KS SUTA Lower Upper Solvency/Credit Solvency/Credit Solvency/Credit
Tax Rate AHCM AHCM Adjustment toAdjustment as a Adjustment as a
SchedulesThresholdThresholdMaximum Rate Group Total % to
Standard Rate Multiplier to Employer's
Standard, Earned Standard, Earned
Rate Group Rate Group
1-1,000.00000-0.000012.00%1.50%0.05263%0.05357%26.32%
20.000000.249991.80%1.35%0.04737%0.04821%23.68%
Solvency30.250000.449991.60%1.20%0.04211%0.04286%21.05%
Schedules40.450000.599991.40%1.05%0.03684%0.03750%18.42%
(1-6)50.600000.699991.20%0.90%0.03158%0.03214%15.79%
60.700000.749991.00%0.75%0.02632%0.02679%13.16%
Standard
Schedule70.750001.24999 0.00% 0.00000% 0.00%
(7)
81.250001.29999-1.00%-0.75%-0.02632%-0.02679%-13.16%
Credit 91.300001.39999-1.20%-0.90%-0.03158%-0.03214%-15.79%
Schedules101.400001.54999-1.40%-1.05%-0.03684%-0.03750%-18.42%
(8-13)111.550001.74999-1.60%-1.20%-0.04211%-0.04286%-21.05%
121.750001.99999-1.80%-1.35%-0.04737%-0.04821%-23.68%
132.000001,000.00000-2.00%-1.50%-0.05263%-0.05357%-26.32%
Fund Control Table B
For Contributing Employers with a NEGATIVE Account Balance
For Rate Year 2025 and Ensuing Calendar Years
Proportional
KS SUTALower Upper Solvency/Credit Solvency/Credit
Tax Rate AHCM AHCM Adjustment Adjustment
SchedulesThreshold Threshold
1-1,000.00000-0.000010.00% 0.00000%
20.000000.249990.00% 0.00000%
Solvency30.250000.449990.00% 0.00000%
Schedules40.450000.599990.00% 0.00000%
(1-6)50.600000.699990.00% 0.00000%
60.700000.749990.00% 0.00000%
Standard
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Schedule70.750001.249990.00% 0.00000%
(7)
81.250001.299990.00% 0.00000%
Credit 91.300001.399990.00% 0.00000%
Schedules101.400001.549990.00% 0.00000%
(8-13)111.550001.749990.00% 0.00000%
121.750001.999990.00% 0.00000%
132.000001,000.000000.00% 0.00000%
(ii) (a) Eligible employers shall be classified by rate group according
to the standard rate schedule - standard rate schedule 7 in this section
clause, for that rate year. Except as provided in subclause (b), for rate
years 2016 through 2021, the rate pursuant to the standard rate schedule as
adjusted by fund control table A shall apply. Except as provided in
subclause (b), For rate year 2022 2025 and ensuing calendar years, the rate
pursuant to standard rate schedule 7, solvency schedules 1 through 6 or
credit schedules 8 through 13 shall apply to contributing employers with
a:
(a) Positive account balance, as provided by fund control table A;
and
(b) negative account balance, as provided by fund control table B.
(b) (1) In the event the full transfer of $250,000,000 is not made as
provided in K.S.A. 2022 Supp. 75-5745, and amendments thereto, to the
employment security fund on or before July 15, 2021, all contributing
employers shall pay the rate as set forth in standard rate schedule -
standard rate schedule 7 for the 2022 calendar year.
(2) In the event the second transfer of up to $250,000,000 is not made
as provided in K.S.A. 2022 Supp. 75-5745, and amendments thereto, to the
employment security fund on or before July 15, 2022, all contributing
employers shall pay the rate as set forth in standard rate schedules -
standard rate schedule 7 for the 2023 calendar year, unless it is determined
by actual calculation pursuant to fund control table B that credit rate
schedules (8-13) would apply based on the health of the unemployment
insurance trust fund.
STANDARD RATE SCHEDULE -
STANDARD RATE SCHEDULE 7
Rate Lower Reserve Upper Reserve Standard
Group Ratio Limit Ratio Limit Rate
10 100.000 1,000,000.000 0.00%
1 18.590 1,000,000.00099.9990.20% 0.10%
2 17.875 18.589 0.40%0.20%
3 17.160 17.874 0.60%0.30%
4 16.445 17.159 0.80%0.40%
5 15.730 16.444 1.00%0.50%
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6 15.015 15.729 1.20%0.60%
7 14.300 15.014 1.40%0.70%
8 13.585 14.299 1.60%0.80%
9 12.870 13.584 1.80%0.90%
10 12.155 12.869 2.00%1.00%
11 11.440 12.154 2.20%1.10%
12 10.725 11.439 2.40%1.20%
13 10.010 10.724 2.60%1.30%
14 9.295 10.009 2.80%1.40%
15 8.580 9.294 3.00%1.50%
16 7.865 8.579 3.20%1.60%
17 7.150 7.864 3.40%1.70%
18 6.435 7.149 3.60%1.80%
19 5.720 6.434 3.80%1.90%
20 5.005 5.719 4.00% 2.00%
21 4.290 5.004 4.20%2.10%
22 3.575 4.289 4.40%2.20%
23 2.860 3.574 4.60%2.30%
24 2.145 2.859 4.80%2.40%
25 1.430 2.144 5.00%2.50%
26 0.715 1.429 5.20%2.60%
27 0.000 0.714 5.40%2.70%
N1 -0.714 -0.001 5.60%
N2 -1.429 -0.715 5.80%
N3 -2.144 -1.430 6.00%
N4 -2.859 -2.145 6.20%
N5 -3.574 -2.860 6.40%
N6 -4.289 -3.575 6.60%
N7 -5.004 -4.290 6.80%
N8 -5.719 -5.005 7.00%
N9 -6.434 -5.720 7.20%
N10 -7.149 -6.435 7.40%
N11 -1,000,000.000 -7.150 7.60%
SOLVENCY RATE SCHEDULES (1-6)
Rate
Group1 2 3 4 5 6
100.00% 0.00% 0.00% 0.00% 0.00% 0.00%
10.25% 0.25% 0.24% 0.24% 0.23% 0.23%
0.21% 0.20% 0.19% 0.18% 0.16% 0.15%
20.51% 0.49% 0.48% 0.47% 0.46% 0.45%
0.36% 0.34% 0.33% 0.31% 0.30% 0.28%
30.76% 0.74% 0.73% 0.71% 0.69% 0.68%
0.51% 0.49% 0.47% 0.45% 0.43% 0.41%
41.01% 0.99% 0.97% 0.95% 0.93% 0.91%
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0.67% 0.64% 0.61% 0.59% 0.56% 0.53%
51.26% 1.24% 1.21% 1.18% 1.16% 1.13%
0.82% 0.79% 0.76% 0.73% 0.69% 0.66%
61.52% 1.48% 1.45% 1.42% 1.39% 1.36%
0.98% 0.94% 0.90% 0.86% 0.83% 0.79%
71.77% 1.73% 1.69% 1.66% 1.62% 1.58%
1.13% 1.09% 1.04% 1.00% 0.96% 0.91%
82.02% 1.98% 1.94% 1.89% 1.85% 1.81%
1.28% 1.23% 1.19% 1.14% 1.09% 1.04%
92.27% 2.23% 2.18% 2.13% 2.08% 2.04%
1.44% 1.38% 1.33% 1.28% 1.22% 1.17%
102.53% 2.47% 2.42% 2.37% 2.32% 2.26%
1.59% 1.53% 1.47% 1.41% 1.35% 1.29%
112.78% 2.72% 2.66% 2.61% 2.55% 2.49%
1.74% 1.68% 1.61% 1.55% 1.49% 1.42%
123.03% 2.97% 2.91% 2.84% 2.78% 2.72 %
1.90% 1.83% 1.76% 1.69% 1.62% 1.55%
133.28% 3.22% 3.15% 3.08% 3.01% 2.94%
2.05% 1.98% 1.90% 1.83% 1.75% 1.68%
143.54% 3.46% 3.39% 3.32% 3.24% 3.17%
2.20% 2.12% 2.04% 1.96% 1.88% 1.80%
153.79% 3.71% 3.63% 3.55% 3.47% 3.39%
2.36% 2.27% 2.19% 2.10% 2.01% 1.93%
164.04% 3.96% 3.87% 3.79% 3.71% 3.62%
2.51% 2.42% 2.33% 2.24% 2.15% 2.06%
174.29% 4.21% 4.12% 4.03% 3.94% 3.85%
2.66% 2.57% 2.47% 2.38% 2.28% 2.18%
184.55% 4.45% 4.36% 4.26% 4.17% 4.07%
2.82% 2.72% 2.61% 2.51% 2.41% 2.31%
194.80% 4.70% 4.60% 4.50% 4.40% 4.30%
2.97% 2.86% 2.76% 2.65% 2.54% 2.44%
205.05% 4.95% 4.84% 4.74% 4.63% 4.53%
3.13% 3.01% 2.90% 2.79% 2.68% 2.56%
215.31% 5.19% 5.08% 4.97% 4.86% 4.75%
3.28% 3.16% 3.04% 2.93% 2.81% 2.69%
225.56% 5.44% 5.33% 5.21% 5.09% 4.98%
3.43% 3.31% 3.19% 3.06% 2.94% 2.82%
235.81% 5.69% 5.57% 5.45% 5.33% 5.21%
3.59% 3.46% 3.33% 3.20% 3.07% 2.94%
246.06% 5.94% 5.81% 5.68% 5.56% 5.43%
3.74% 3.61% 3.47% 3.34% 3.20% 3.07%
256.32% 6.18% 6.05% 5.92% 5.79% 5.66%
3.89% 3.75% 3.61% 3.48% 3.34% 3.20%
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266.57% 6.43% 6.29% 6.16% 6.02% 5.88%
4.05% 3.90% 3.76% 3.61% 3.47% 3.32%
276.82% 6.68% 6.54% 6.39% 6.25% 6.11%
4.20% 4.05% 3.90% 3.75% 3.60% 3.45%
N17.07% 6.93% 6.78% 6.63% 6.48% 6.34%
5.60% 5.60% 5.60% 5.60% 5.60% 5.60%
N27.33% 7.17% 7.02% 6.87% 6.72 % 6.56%
5.80% 5.80% 5.80% 5.80% 5.80% 5.80%
N37.58% 7.42% 7.26% 7.11% 6.95% 6.79%
6.00% 6.00% 6.00% 6.00% 6.00% 6.00%
N47.83% 7.67% 7.51% 7.34% 7.18% 7.02%
6.20% 6.20% 6.20% 6.20% 6.20% 6.20%
N58.08% 7.92% 7.75% 7.58% 7.41% 7.24%
6.40% 6.40% 6.40% 6.40% 6.40% 6.40%
N68.34% 8.16% 7.99% 7.82% 7.64% 7.47%
6.60% 6.60% 6.60% 6.60% 6.60% 6.60%
N78.59% 8.41% 8.23% 8.05% 7.87% 7.69%
6.80% 6.80% 6.80% 6.80% 6.80% 6.80%
N88.84% 8.66% 8.47% 8.29% 8.11% 7.92%
7.00% 7.00%7.00% 7.00% 7.00% 7.00%
N99.09% 8.91% 8.72% 8.53% 8.34% 8.15%
7.20% 7.20% 7.20% 7.20% 7.20% 7.20%
N109.35% 9.15% 8.96% 8.76% 8.57% 8.37%
7.40% 7.40% 7.40% 7.40% 7.40% 7.40%
N119.60% 9.40% 9.20% 9.00% 8.80% 8.60%
7.60% 7.60% 7.60% 7.60% 7.60% 7.60%
CREDIT RATE SCHEDULES (8-13)
Rate
Group8 9 10 11 12 13
100.00% 0.00% 0.00% 0.00% 0.00% 0.00%
10.17% 0.17% 0.16% 0.16% 0.15% 0.15%
0.05% 0.04% 0.03% 0.01% 0.00% 0.00%
20.35% 0.34% 0.33% 0.32% 0.31% 0.29%
0.12% 0.10% 0.09% 0.07% 0.06% 0.04%
30.52% 0.51% 0.49% 0.47% 0.46% 0.44
0.19% 0.17% 0.15% 0.13% 0.11% 0.09%
40.69% 0.67% 0.65% 0.63% 0.61% 0.59%
0.27% 0.24% 0.21% 0.19% 0.16% 0.13%
50.87% 0.84% 0.82% 0.79% 0.76% 0.74%
0.34% 0.31% 0.28% 0.24% 0.21% 0.18%
61.04% 1.01% 0.98% 0.95% 0.92% 0.88%
0.41% 0.38% 0.34% 0.30% 0.26% 0.23%
71.22% 1.18% 1.14% 1.11% 1.07% 1.03%
0.49% 0.44% 0.40% 0.36% 0.31% 0.27%
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81.39% 1.35% 1.31% 1.26% 1.22% 1.18%
0.56% 0.51% 0.46% 0.41% 0.37% 0.32%
91.56% 1.52% 1.47% 1.42% 1.37% 1.33%
0.63% 0.58% 0.53% 0.47% 0.42% 0.36%
101.74% 1.68% 1.63% 1.58% 1.53% 1.47%
0.71% 0.65% 0.59% 0.53% 0.47% 0.41%
111.91% 1.85% 1.79% 1.74% 1.68% 1.62%
0.78% 0.71% 0.65% 0.59% 0.52% 0.46%
122.08% 2.02% 1.96% 1.89% 1.83% 1.77%
0.85% 0.78% 0.71% 0.64% 0.57% 0.50%
132.26% 2.19% 2.12% 2.05% 1.98% 1.92%
0.93% 0.85% 0.78% 0.70% 0.63% 0.55%
142.43% 2.36% 2.28% 2.21% 2.14% 2.06%
1.00% 0.92% 0.84% 0.76% 0.68% 0.60%
152.61% 2.53% 2.45% 2.37% 2.29% 2.21%
1.07% 0.99% 0.90% 0.81% 0.73% 0.64%
162.78% 2.69% 2.61% 2.53% 2.44% 2.36%
1.14% 1.05% 0.96% 0.87% 0.78% 0.69%
172.95% 2.86% 2.77% 2.68% 2.59% 2.51%
1.22% 1.12% 1.03% 0.93% 0.83% 0.74%
183.13% 3.03% 2.94% 2.84% 2.75% 2.65%
1.29% 1.19% 1.09% 0.99% 0.88% 0.78%
193.30% 3.20% 3.10% 3.00% 2.90% 2.80%
1.36% 1.26% 1.15% 1.04% 0.94% 0.83%
203.47% 3.37% 3.26% 3.16% 3.05% 2.95%
1.44% 1.33% 1.21% 1.10% 0.99% 0.88%
213.65% 3.54% 3.43% 3.32% 3.21% 3.09%
1.51% 1.39% 1.28% 1.16% 1.04% 0.92%
223.82% 3.71% 3.59% 3.47% 3.36% 3.24%
1.58% 1.46% 1.34% 1.21% 1.09% 0.97%
233.99% 3.87% 3.75% 3.63% 3.51% 3.39%
1.65% 1.53% 1.40% 1.27% 1.14% 1.01%
244.17% 4.04% 3.92% 3.79% 3.66% 3.54%
1.73% 1.60% 1.46% 1.33% 1.19% 1.06%
254.34% 4.21% 4.08% 3.95% 3.82% 3.68%
1.80% 1.66% 1.53% 1.39% 1.25% 1.11%
264.52% 4.38% 4.24% 4.11% 3.97% 3.83%
1.88% 1.73% 1.59% 1.44% 1.30% 1.15%
274.69% 4.55% 4.41% 4.26% 4.12% 3.98%
1.95% 1.80% 1.65% 1.50% 1.35% 1.20%
N14.86% 4.72% 4.57% 4.42% 4.27% 4.13%
5.60% 5.60% 5.60% 5.60% 5.60% 5.60%
N25.04% 4.88% 4.73% 4.58% 4.43% 4.27%
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5.80% 5.80% 5.80% 5.80% 5.80% 5.80%
N35.21% 5.05% 4.89% 4.74% 4.58% 4.42%
6.00% 6.00% 6.00% 6.00% 6.00% 6.00%
N45.38% 5.22% 5.06% 4.89% 4.73% 4.57%
6.20% 6.20% 6.20% 6.20% 6.20% 6.20
N55.56% 5.39% 5.22% 5.05% 4.88% 4.72%
6.40% 6.40% 6.40% 6.40% 6.40% 6.40
N65.73% 5.56% 5.38% 5.21% 5.04% 4.86%
6.60% 6.60% 6.60% 6.60% 6.60% 6.60
N75.91% 5.73% 5.55% 5.37% 5.19% 5.01%
6.80% 6.80% 6.80% 6.80% 6.80% 6.80%
N86.08% 5.89% 5.71% 5.53% 5.34% 5.16%
7.00% 7.00% 7.00% 7.00% 7.00% 7.00%
N96.25% 6.06% 5.87% 5.68% 5.49% 5.31%
7.20% 7.20% 7.20% 7.20% 7.20% 7.20%
N106.43% 6.23% 6.04% 5.84% 5.65% 5.45%
7.40% 7.40% 7.40% 7.40% 7.40% 7.40%
N116.60% 6.40% 6.20% 6.00% 5.80% 5.60%
7.60% 7.60% 7.60% 7.60% 7.60% 7.60%
(b) Successor classification. (1) (A) For the purposes of this
subsection, whenever an employing unit, whether or not it is an
"employing unit" within the meaning of K.S.A. 44-703(g), and
amendments thereto, becomes an employer pursuant to K.S.A. 44-703(h)
(4), and amendments thereto, or is an employer at the time of acquisition
and meets the definition of a "successor employer" as defined by K.S.A.
44-703(dd), and amendments thereto, and thereafter transfers its trade or
business, or any portion thereof, to another employer and, at the time of
the transfer, there is substantially common ownership, management or
control of the two employers, then the unemployment experience
attributable to the transferred trade or business shall be transferred to the
employer to whom such business is so transferred. These experience
factors consist of all contributions paid, benefit experience and annual
payrolls of the predecessor employer. The transfer of some or all of an
employer's workforce to another employer shall be considered a transfer of
trade or business when, as the result of such transfer, the transferring
employer no longer performs trade or business with respect to the
transferred workforce, and such trade or business is performed by the
employer to whom the workforce is transferred.
(B) If, following a transfer of experience under subparagraph (A), the
secretary determines that a substantial purpose of the transfer or business
was to obtain a reduced liability for contributions, then the experience
rating accounts of the employers involved shall be combined into a single
account and a single rate assigned to such account.
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43 SB 478 58
(2) A successor employer as defined by K.S.A. 44-703(h)(4) or (dd),
and amendments thereto, may receive the experience rating factors of the
predecessor employer if an application is made to the secretary or the
secretary's designee in writing within 120 days of the date of the transfer.
(3) Whenever an employing unit, whether or not it is an "employing
unit" within the meaning of K.S.A. 44-703(g), and amendments thereto,
acquires or in any manner succeeds to a percentage of an employer's
annual payroll which is less than 100% and intends to continue the
acquired percentage as a going business, the employing unit may acquire
the same percentage of the predecessor's experience factors if: (A) The
predecessor employer and successor employing unit make an application
in writing on the form prescribed by the secretary; (B) the application is
submitted within 120 days of the date of the transfer; (C) the successor
employing unit is or becomes an employer subject to this act immediately
after the transfer; (D) the percentage of the experience rating factors
transferred shall not be thereafter used in computing the contribution rate
for the predecessor employer; and (E) the secretary finds that such transfer
will not tend to defeat or obstruct the object and purposes of this act.
(4) (A) The rate of both employers in a full or partial successorship
under paragraph (1) shall be recalculated and made effective on the first
day of the next calendar quarter year following the date of transfer of trade
or business.
(B) If a successor employer is determined to be qualified under
paragraph (2) or (3) to receive the experience rating factors of the
predecessor employer, the rate assigned to the successor employer for the
remainder of the contributions year shall be determined by the following:
(i) If the acquiring employing unit was an employer subject to this act
prior to the date of the transfer, the rate of contribution shall be the same as
the contribution rate of the acquiring employer on the date of the transfer.
(ii) If the acquiring employing unit was not an employer subject to
this act prior to the date of the transfer, the successor employer shall have a
newly computed rate for the remainder of the contribution year which shall
be based on the transferred experience rating factors as they existed on the
most recent computation date immediately preceding the date of
acquisition. These experience rating factors consist of all contributions
paid, benefit experience and annual payrolls.
(5) Whenever an employing unit is not an employer at the time it
acquires the trade or business of an employer, the unemployment
experience factors of the acquired business shall not be transferred to such
employing unit if the secretary finds that such employing unit acquired the
business solely or primarily for the purpose of obtaining a lower rate of
contributions. Instead, such employing unit shall be assigned the
applicable industry rate for a "new employer" as described in subsection
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(a)(1). In determining whether the business was acquired solely or
primarily for the purpose of obtaining a lower rate of contributions, the
secretary shall use objective factors which may include the cost of
acquiring the business, whether the employer continued the business
enterprise of the acquired business, how long such business enterprise was
continued, or whether a substantial number of new employees were hired
for performance of duties unrelated to the business activity conducted
prior to acquisition.
(6) Whenever an employer's account has been terminated as provided
in K.S.A. 44-711(d) and (e), and amendments thereto, and the employer
continues with employment to liquidate the business operations, that
employer shall continue to be an "employer" subject to the employment
security law as provided in K.S.A. 44-703(h)(8), and amendments thereto.
The rate of contribution from the date of transfer to the end of the then
current calendar year shall be the same as the contribution rate prior to the
date of the transfer. At the completion of the then current calendar year, the
rate of contribution shall be that of a "new employer" as described in
subsection (a)(1).
(7) No rate computation will be permitted an employing unit
succeeding to the experience of another employing unit pursuant to this
section for any period subsequent to such succession except in accordance
with rules and regulations adopted by the secretary. Any such regulations
shall be consistent with federal requirements for additional credit
allowance in section 3303 of the federal internal revenue code of 1986,
and consistent with the provisions of this act.
(c) Voluntary contributions. Notwithstanding any other provision of
the employment security law, any employer may make voluntary payments
for the purpose of reducing or maintaining a reduced rate in addition to the
contributions required under this section. Such voluntary payments may be
made only during the thirty-day 90-day period immediately following the
date of mailing of experience rating notices for a calendar year. All such
voluntary contribution payments shall be paid prior to the expiration of
120 days after the beginning of the year for which such rates are effective.
The amount of voluntary contributions shall be credited to the employer's
account as of the next preceding computation date and the employer's rate
shall be computed accordingly. Under no circumstances shall voluntary
payments be refunded in whole or in part.
(d) As used in this section, "negative account balance employer"
means an eligible employer whose total benefits charged to such
employer's account for all past years have exceeded all contributions paid
by such employer for all such years.
(e) There is hereby established in the state treasury, separate and apart
from all public moneys or funds of this state, an employment security
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43 SB 478 60
interest assessment fund, which shall be administered by the secretary as
provided in this act. Moneys in the employment security fund established
by K.S.A. 44-712, and amendments thereto, and employment security
interest assessment fund established by K.S.A. 44-710, and amendments
thereto, shall not be invested in the pooled money investment portfolio
established under K.S.A. 75-4234, and amendments thereto.
Notwithstanding the provisions of K.S.A. 44-712(a), 44-716, 44-717 and
75-4234, and amendments thereto, or any like provision the secretary shall
remit all moneys received from employers pursuant to the interest payment
pursuant to law, to the state treasurer in accordance with the provisions of
K.S.A. 75-4215, and amendments thereto. Upon receipt of each such
remittance, the state treasurer shall deposit the entire amount in the
employment security interest assessment fund. All moneys in this fund
which are received from employers pursuant to the interest payment
assessments shall be expended solely for the purposes and in the amounts
found by the secretary necessary to pay any principal and interest due and
owing the United States department of labor resulting from any
advancements made to the Kansas employment security fund pursuant to
the provisions of title XII of the social security act (42 U.S.C. §§ 1321 to
1324) except as may be otherwise provided under subsection (a)(2)(D).
Notwithstanding any provision of this section, all moneys received and
credited to this fund shall remain part of the employment security interest
assessment fund and shall be used only in accordance with the conditions
specified.
(f) The secretary of labor shall annually prepare and submit a
certification as to the solvency and adequacy of the amount credited to the
state of Kansas' account in the federal employment security trust fund to
the governor and the legislative coordinating council. The certification
shall be submitted on or before December 1 of each calendar year and
shall be for the 12-month period ending on June 30 of that calendar year.
In arriving at the certification contributions paid on or before July 31
following the 12-month period ending date of June 30 shall be considered.
(f) On July 1, 2024, the director of accounts and reports shall
transfer all moneys in the employment security interest assessment fund to
the employment security trust fund. On July 1, 2024, all liabilities of the
employment security interest assessment fund are hereby transferred to
and imposed on the employment security trust fund, and the employment
security interest assessment fund is hereby abolished.
Sec. 7. K.S.A. 44-710b is hereby amended to read as follows: 44-
710b. (a) By the secretary of labor. The secretary of labor shall promptly
notify each contributing employer of its rate of contributions, each rated
governmental employer of its benefit cost rate and each reimbursing
employer of its benefit liability as determined for any calendar year
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pursuant to K.S.A. 44-710 and 44-710a, and amendments thereto, on or
before November 30 of the calendar year immediately preceding the
calendar year in which such rate takes effect. Such determination shall
become conclusive and binding upon the employer unless, within 15 days
after the mailing of notice thereof to the employer's last known address or
in the absence of mailing, within 15 days after the delivery of such notice,
the employer files an application for review and redetermination, setting
forth the reasons therefor. If the secretary of labor grants such review, the
employer shall be promptly notified thereof and shall be granted an
opportunity for a fair hearing, but no employer shall have standing, in any
proceeding involving the employer's rate of contributions or benefit
liability, to contest the chargeability to the employer's account of any
benefits paid in accordance with a determination, redetermination or
decision pursuant to K.S.A. 44-710(c), and amendments thereto, except
upon the ground that the services on the basis of which such benefits were
found to be chargeable did not constitute services performed in
employment for the employer and only in the event that the employer was
not a party to such determination, redetermination or decision or to any
other proceedings under this act in which the character of such services
was determined. Any such hearing conducted pursuant to this section shall
be heard in the county where the contributing employer maintains its
principle place of business. The hearing officer shall render a decision
concerning all matters at issue in the hearing within 90 days.
(b) (1) The secretary shall, without necessity of a request by an
employer or a hearing, immediately and fully credit any contributing
employer's, governmental rated employer's or reimbursing employer's
account for any benefits paid upon a determination by the secretary that
such benefits were an improper payment or paid to any person who
received such benefits: (A) By fraud; or (B) in error where any conditions
imposed by this act for the receipt of benefits were not fulfilled or where
the recipient was not qualified to or disqualified from receiving such
benefits.
(2) (A) Contributing employers, rated governmental employers and
reimbursing employers shall be held harmless for and shall not be required
to reimburse the state for any benefits paid that have been identified by the
employer and reported to and determined by the secretary as fraudulent or
as an improper payment, unless the secretary determines that such benefits
were received properly and not: (i) By fraud; or (ii) in error where any
conditions imposed by this act for the receipt of benefits were not fulfilled
or where the recipient was not qualified to or disqualified from receiving
such benefits. Any such determination by the secretary shall be subject to
appeal as provided by the employment security law.
(B) Reimbursing employers shall be refunded for reimbursements
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made to the state for any claims or benefits paid on or after March 15,
2020, that are or have been reported to the secretary and determined by the
secretary as fraudulent. Amounts refunded shall become due, subject to
appeal as provided by the employment security law, upon a determination
by the secretary, as provided by subparagraph (A), that the benefits were
paid properly and not by fraud or in error.
(C) For the time period of March 15, 2020, through December 31,
2022, identifications of fraud reported to the secretary pursuant to
subparagraphs (A) and (B) shall not be subject to any time limitation for
disputing a claim or for appeal pursuant to K.S.A. 44-710, and
amendments thereto, or pursuant to any other provision of the employment
security law.
(3) The secretary shall review all reimbursing employer accounts and
shall apply credit for any benefits previously paid by fraud or in error, as
provided by paragraph (1), that have been charged against a reimbursing
employer's account and have not yet been recovered through normal
recovery efforts.
(c) Judicial review. Any action of the secretary upon an employer's
timely request for a review and redetermination of its rate of contributions
or benefit liability, in accordance with subsection (a), is subject to review
in accordance with the Kansas judicial review act. Any action for such
review shall be heard in a summary manner and shall be given precedence
over all other civil cases except cases arising under K.S.A. 44-709(i), and
amendments thereto, and the workmen's compensation act.
(d) Periodic notification of benefits charged. The secretary of labor
may provide by rules and regulations for periodic notification to
employers of benefits paid and chargeable to their accounts or of the status
of such accounts, and any such notification, in the absence of an
application for redetermination filed in such manner and within such
period as the secretary of labor may prescribe, shall become conclusive
and binding upon the employer for all purposes. Such redeterminations,
made after notice and opportunity for hearing, and the secretary's findings
of facts in connection therewith may be introduced in any subsequent
administrative or judicial proceedings involving the determination of the
rate of contributions of any employer for any calendar year and shall be
entitled to the same finality as is provided in this subsection with respect to
the findings of fact made by the secretary of labor in proceedings to
redetermine the contribution rate of an employer. The review or any other
proceedings relating thereto as provided for in this section may be heard
by any duly authorized employee of the secretary of labor and such action
shall have the same effect as if heard by the secretary.
(e) The secretary shall review the information reported by the United
States department of labor pursuant to the payment integrity information
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act of 2019, public law 116-117, and any other relevant information
available from the United States department of labor and any relevant
information held by the department of labor available to the secretary
regarding improper payment amounts for the state of Kansas for the period
beginning on March 15, 2020, through December 31, 2022.
(f) Any federal unemployment insurance benefit program established
as a result of COVID-19 or any pandemic shall not be continued after the
ending date of the federal program through the use of Kansas state
employment security fund contributions made by Kansas employers.
(g) The secretary shall review benefit claims at the time a claim is
made and as necessary to timely determine whether any claimant is
eligible for unemployment benefits pursuant to any federal unemployment
program. The secretary shall suspend state unemployment benefit
payments to a claimant if the secretary determines that the claimant is
eligible for federal unemployment benefits in an amount that is equal to or
greater than the amount of state benefits that the claimant is eligible for
under the employment security law.
Sec. 8. K.S.A. 44-717 is hereby amended to read as follows: 44-717.
(a) (1) Penalties on past-due reports, interest on past-due contributions,
payments in lieu of contributions, and benefit cost payments and interest
assessments made under K.S.A. 44-710a, and amendments thereto. Any
employer or any officer or agent of an employer, who fails to file any wage
report or contribution return by the last day of the month following the
close of each calendar quarter to which they are related shall pay a penalty
as provided by this subsection for each month or fraction of a month until
the report or return is received by the secretary of labor except that for
calendar years 2010 and 2011 an employer or any officer or agent of the
employer shall have up to 90 days past the due date for any of the first
three calendar quarters in a calendar year to pay such employer's
contribution without being charged any interest, however, when the 90 day
period has passed, the provisions of this section shall apply. The penalty
for each month or fraction of a month shall be an amount equal to .05% of
the total wages paid by the employer during the quarter, except that no
penalty shall be less than $25 nor more than $200 for each such report or
return not timely filed. Contributions, and benefit cost payments and
interest assessments made pursuant to K.S.A. 44-710a, and amendments
thereto, unpaid by the last day of the month following the last calendar
quarter to which they are related and payments in lieu of contributions
unpaid 30 days after the mailing of the statement of benefit charges, shall
bear interest at the rate of 1% per month or fraction of a month until
payment is received by the secretary of labor except that. An employing
unit, which is not theretofore that has not previously been subject to this
law and which that becomes an employer and does not refuse to make the
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43 SB 478 64
reports, returns and contributions, payments in lieu of contributions and
benefit cost payments required under this law, shall not be liable for such
penalty or interest if the wage reports and contribution returns required are
filed and the contributions, payments in lieu of contributions or benefit
cost payments required are paid within 10 days following notification by
the secretary of labor that a determination has been made fixing its status
as an employer subject to this law. Upon written request and good cause
shown, the secretary of labor may abate any penalty or interest or portion
thereof provided for by this subsection. Interest amounting to less than $5
shall be waived by the secretary of labor and shall not be collected.
Penalties and interest collected pursuant to this subsection shall be paid
into the special employment security fund. For all purposes under this
section, amounts assessed as surcharges under subsection (j) or under
K.S.A. 44-710a, and amendments thereto, shall be considered to be
contributions and shall be subject to penalties and interest imposed under
this section and to collection in the manner provided by this section. For
all purposes under this section, amounts assessed under K.S.A. 44-710a,
and amendments thereto, shall be subject to penalties and interest imposed
under this section and to collection in the manner provided in this section.
For purposes of this subsection, a wage report, a contribution return, a
contribution, a payment in lieu of contribution, or a benefit cost payment
or an interest assessment made pursuant to K.S.A. 44-710a, and
amendments thereto, is deemed to be filed or paid as of the date it is
placed in the United States mail.
(2) Notices of payment and reporting delinquency to Indian tribes or
their tribal units shall include information that failure to make full payment
within the prescribed time frame:
(i) Will cause the Indian tribe to be liable for taxes under FUTA;
(ii) will cause the Indian tribe to lose the option to make payments in
lieu of contributions;
(iii) could cause the Indian tribe to be excepted from the definition of
"employer," as provided in paragraph (h)(3) of K.S.A. 44-703(h)(3), and
amendments thereto, and services in the employ of the Indian tribe, as
provided in paragraph (i)(3)(E) of K.S.A. 44-703(i)(3)(E), and
amendments thereto, to be excepted from "employment."
(b) Collection. (1) If, after due notice, any employer defaults in
payment of any penalty, contributions, payments in lieu of contributions,
or benefit cost payments, interest assessments made pursuant to K.S.A.
44-710a, and amendments thereto, or interest thereon the amount due may
be collected by civil action in the name of the secretary of labor and the
employer adjudged in default shall pay the cost of such action. Civil
actions brought under this section to collect such contributions, payments
in lieu of contributions, or benefit cost payments, interest assessments
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made pursuant to K.S.A. 44-710a, and amendments thereto, penalties, or
interest thereon from an employer shall be heard by the district court at the
earliest possible date and shall be entitled to preference upon the calendar
of the court over all other civil actions except petitions for judicial review
under this act and cases arising under the workmen's compensation act. All
liability determinations of contributions due, payments in lieu of
contributions, or benefit cost payments and interest assessments made
pursuant to K.S.A. 44-710a, and amendments thereto, due shall be made
within a period of five years from the date such contributions, payments in
lieu of contributions, or benefit cost payments and interest assessments
made pursuant to K.S.A. 44-710a, and amendments thereto, were due
except such determinations may be made for any time when an employer
has filed fraudulent reports with intent to evade liability.
(2) Any employing unit which that is not a resident of this state and
which exercises the privilege of having one or more individuals perform
service for it within this state and any resident employing unit which that
exercises that privilege and thereafter removes from leaves this state, shall
be deemed thereby to appoint have appointed the secretary of state as its
agent and attorney for the acceptance of process in any civil action under
this subsection. In instituting such an action against any such employing
unit the secretary of labor shall cause such process or notice to be filed
with the secretary of state and such service shall be sufficient service upon
such employing unit and shall be of the same force and validity as if
served upon it the employing unit personally within this state. The
secretary of labor shall send notice immediately of the service of such
process or notice, together with a copy thereof, by registered or certified
mail, return receipt requested, to such employing unit at its last-known
address and such return receipt, the affidavit of compliance of the secretary
of labor with the provisions of this section, and a copy of the notice of
service, shall be appended to the original of the process filed in the court in
which where such civil action is pending.
(3) The district courts of this state shall entertain hear, in the manner
provided in subsections (b)(1) and (b)(2), actions to collect contributions,
payments in lieu of contributions, interest assessments made pursuant to
K.S.A. 44-710a, and amendments thereto, benefit cost payments and other
amounts owed including interest thereon for which liability has accrued
under the employment security law of any other state or of the federal
government.
(c) Priorities under legal dissolutions or distributions. In the event of
any distribution of employer's assets pursuant to an order of any court
under the laws of this state, including but not limited to any probate
proceeding, interpleader, receivership, assignment for benefit of creditors,
adjudicated insolvency, composition or similar proceedings, contributions
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payments in lieu of contributions or interest assessments made under
K.S.A. 44-710a, and amendments thereto benefit cost payments, then or
thereafter due shall be paid in full from the moneys which shall first come
into the estate, prior to all other claims, except claims for wages of not
more than $250 to each claimant, earned within six months of the
commencement of the proceedings. In the event of an employer's
adjudication in bankruptcy, judicially confirmed extension proposal, or
composition, under the federal bankruptcy act of 1898, as amended federal
bankruptcy law, contributions then or thereafter due shall be entitled to
such priority as is provided in that act by federal bankruptcy law for taxes
due any state of the United States.
(d) Assessments. If any employer fails to file a report or return
required by the secretary of labor for the determination of contributions, or
payments in lieu of contributions, or benefit cost payments, the secretary
of labor may make such reports or returns or cause the same to be made,
on the basis of such information as the secretary may be able to obtain and
shall collect the contributions, payments in lieu of contributions or benefit
cost payments as determined together with any interest due under this act.
The secretary of labor shall immediately forward to the employer a copy
of the assessment by registered or certified mail to the employer's address
as it appears on the records of the agency, and. Such assessment shall be
final unless the employer protests such assessment and files a corrected
report or return for the period covered by the assessment within 15 days
after the mailing of the copy of assessment. Failure to receive such notice
shall not invalidate the assessment. Notice in writing shall be presumed to
have been given when deposited as certified or registered matter mail in
the United States mail, addressed to the person to be charged with notice at
such person's address as it appears on the records of the agency.
(e) (1) Lien. If any employer or person who is liable to pay
contributions, payments in lieu of contributions, or benefit cost payments
and interest assessments made pursuant to K.S.A. 44-710a, and
amendments thereto, neglects or refuses to pay the same after demand, the
amount, including interest and penalty, shall be a lien in favor of the state
of Kansas, secretary of labor, upon all property and rights to property,
whether real or personal, belonging to such employer or person. Such lien
shall not be valid as against any mortgagee, pledgee, purchaser or
judgment creditor until notice thereof has been filed by the secretary of
labor in the office of register of deeds in any county in the state of Kansas,
in which where such property is located, and when so filed shall be notice
to all persons claiming an interest in the property of the employer or
person against whom filed. The register of deeds shall enter such notices in
the financing statement record and shall also record the same in full in
miscellaneous record and index the same against the name of the
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43 SB 478 67
delinquent employer. The register of deeds shall accept, file, and record
such notice without prepayment of any fee, but lawful fees shall be added
to the amount of such lien and collected when satisfaction is presented for
entry. Such lien shall be satisfied of record upon the presentation of a
certificate of discharge by the state of Kansas, secretary of labor. Nothing
contained in this subsection shall be construed as an invalidation of any
lien or notice filed in the name of the unemployment compensation
division or the employment security division and such liens shall be and
remain in full force and effect until satisfied as provided by this
subsection.
(2) Authority of secretary or authorized representative. If any
employer or person who is liable to pay any contributions, payments in
lieu of contributions, or benefit cost payments and interest assessments
made pursuant to K.S.A. 44-710a, and amendments thereto, including
interest and penalty, neglects or refuses to pay the same within 10 days
after notice and demand therefor, the secretary or the secretary's authorized
representative may collect such contributions, payments in lieu of
contributions, or benefit cost payments and interest assessments made
pursuant to K.S.A. 44-710a, and amendments thereto, including interest
and penalty, and such further amount as is sufficient to cover the expenses
of the levy, by levy upon all property and rights to property which that
belong to the employer or person or which that have a lien created thereon
by this subsection for the payment of such contributions, payments in lieu
of contributions, or benefit cost payments and interest assessments made
pursuant to K.S.A. 44-710a, and amendments thereto, including interest
and penalty. As used in this subsection, "property" includes all real
property and personal property, whether tangible or intangible, except such
property which that is exempt under K.S.A. 60-2301 et seq., and
amendments thereto. Levy may be made upon the accrued salary or wages
of any officer, employee or elected official of any state or local
governmental entity which is subject to K.S.A. 60-723, and amendments
thereto, by serving a notice of levy as provided in subsection (d) of K.S.A.
60-304(d), and amendments thereto. If the secretary or the secretary's
authorized representative makes a finding that the collection of the amount
of such contributions, payments in lieu of contributions, or benefit cost
payments and interest assessments made pursuant to K.S.A. 44-710a, and
amendments thereto, including interest and penalty, is in jeopardy, notice
and demand for immediate payment of such amount may be made by the
secretary or the secretary's authorized representative and,. Upon the failure
or refusal to pay such amount, immediate collection of such amount by
levy shall be lawful without regard to the 10-day period provided in this
subsection.
(3) Seizure and sale of property. The authority to levy granted under
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this subsection includes the power of seizure by any means. A levy shall
extend only to property possessed and obligations existing at the time
thereof. In any case in which the secretary or the secretary's authorized
representative may levy upon property or rights to property, the secretary
or the secretary's authorized representative may seize and sell such
property or rights to property.
(4) Successive seizures. Whenever any property or right to property
upon which levy that has been made levied upon under this subsection is
not sufficient to satisfy the claim of the secretary for which that the levy is
was made for, the secretary or the secretary's authorized representative
may proceed thereafter and as often as may be necessary, to levy in like
the same manner upon any other property or rights to property which that
belongs to the employer or person against whom such claim exists or upon
which a lien is created by this subsection until the amount due from the
employer or person, together with all expenses, is fully paid.
(f) Warrant. In addition or as an alternative to any other remedy
provided by this section and provided that, if no appeal or other proceeding
for review permitted by this law shall then be is pending and the time for
taking thereof shall have an appeal or other proceeding for review has
expired, the secretary of labor or an authorized representative of the
secretary may issue a warrant certifying the amount of contributions,
payments in lieu of contributions, benefit cost payments, interest or
penalty, and the name of the employer liable for same such amount after
giving 15 days prior notice. Upon request, service of final notices shall be
made by the sheriff within the sheriff's county, by the sheriff's deputy or
some person specially appointed by the secretary for that purpose, or by
the secretary's designee. A person specially appointed by the secretary or
the secretary's designee to serve final notices may make service any place
in the state. Final notices shall be served as follows:
(1) Individual. Service upon an individual, other than a minor or
incapacitated person, shall be made by delivering a copy of the final notice
to the individual personally or by leaving a copy at such individual's
dwelling house or usual place of abode with some person of suitable age
and discretion then residing therein, by leaving a copy at the business
establishment of the employer with an officer or employee of the
establishment, or by delivering a copy to an agent authorized by
appointment or by law to receive service of process, but. If the agent is one
designated by a statute to receive service, such further notice as the statute
requires shall also be given. If service as prescribed above cannot be made
with due diligence, the secretary or the secretary's designee may order
service to be made by leaving a copy of the final notice at the employer's
dwelling house, usual place of abode or business establishment.
(2) Corporations and partnerships. Service upon a domestic or
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43 SB 478 69
foreign corporation or upon a partnership or other unincorporated
association, when by law it may be sued as such, shall be made by
delivering a copy of the final notice to an officer, partner or resident
managing or general agent thereof. Delivery shall be accomplished by
leaving a copy at any business office of the employer with the person
having charge thereof or by delivering a copy to any other agent
authorized by appointment or required by law to receive service of
process, if the agent is one authorized by law to receive service and,. If the
law so requires, by also mailing a copy shall be mailed to the employer.
(3) Refusal to accept service. In all cases when the person to be
served, or an agent authorized by such person to accept service of petitions
and summonses, shall refuse refuses to receive copies of the final notice,
the offer of the duly authorized process server to deliver copies thereof and
such refusal shall be sufficient service of such notice.
(4) Proof of service. (A) Every officer to whom a final notice or other
process shall be delivered for service within or without the state, shall
make return thereof in writing stating the time, place and manner of
service of such writ, and shall sign such officer's name to such return.
(B) If service of the notice is made by a person appointed by the
secretary or the secretary's designee to make service, such person shall
make an affidavit as to the time, place and manner of service thereof in a
form prescribed by the secretary or the secretary's designee.
(5) Time for return. The officer or other person receiving a final
notice shall make a return of service promptly and shall send such return to
the secretary or the secretary's designee in any event within 10 days after
the service is effected. If the final notice cannot be served it shall be
returned to the secretary or the secretary's designee within 30 days after
the date of issue with a statement of the reason for the such failure to serve
the same. The original return shall be attached to and filed with any
warrant thereafter filed.
(6) Service by mail. (A) Upon direction of the secretary or the
secretary's designee, service by mail may be effected by forwarding a copy
of the notice to the employer by registered or certified mail to the
employer's address as it appears on the records of the agency. A copy of
the return receipt shall be attached to and filed with any warrant thereafter
filed.
(B) The secretary of labor or an authorized representative of the
secretary may file the warrant for record in the office of the clerk of the
district court in the county in which the employer owing such
contributions, payments in lieu of contributions, benefit cost payments,
interest assessments made pursuant to K.S.A. 44-710a, and amendments
thereto, interest, or penalty has business property. The warrant shall certify
the amount of contributions, payments in lieu of contributions, benefit cost
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43 SB 478 70
payments, interest and penalty due, and the name of the employer liable
for such amount. It shall be the duty of the clerk of the district court to file
such warrant of record and enter the warrant in the records of the district
court for judgment and decrees under the procedure prescribed for filing
transcripts of judgment.
(C) The clerk shall enter, On the day the warrant is filed, the clerk
shall enter the case on the appearance docket, together with the amount
and the time of filing the warrant. From the time of filing such warrant, the
amount of the contributions, payments in lieu of contributions, benefit cost
payments, interest assessments made pursuant to K.S.A. 44-710a, and
amendments thereto, interest, and penalty, certified therein, shall have the
force and effect of a judgment of the district court until the same is
satisfied by the secretary of labor or an authorized representative or
attorney for the secretary. Execution shall be issuable at the request of the
secretary of labor, or an authorized representative or attorney for the
secretary, as is provided in the case of other judgments.
(D) Postjudgment procedures shall be the same as for judgments
according to the code of civil procedure.
(E) Warrants shall be satisfied of record by payment to the clerk of
the district court of the contributions, payments in lieu of contributions,
benefit cost payments, interest assessments made pursuant to K.S.A. 44-
710a, and amendments thereto, penalty, interest to date, and court costs.
Warrants may also be satisfied of record by payment to the clerk of the
district court of all court costs accrued in the case and by filing a
certificate by the secretary of labor, certifying that the such contributions,
payments in lieu of contributions, benefit cost payments, interest
assessments made pursuant to K.S.A. 44-710a, and amendments thereto,
interest and penalty have been paid.
(g) Remedies cumulative. The foregoing remedies shall be cumulative
and no action taken shall be construed as an election on the part of the
state or any of its officers to pursue any remedy or action under this
section to the exclusion of any other remedy or action for which provision
is made.
(h) Refunds. If any individual, governmental entity or organization
makes application for refund or adjustment of any amount paid as
contributions, benefit cost payments, interest assessments made pursuant
to K.S.A. 44-710a, and amendments thereto, or interest under this law and
the secretary of labor determines that such amount or any portion thereof
was erroneously collected, except for amounts less than $5, the secretary
of labor shall allow such individual or organization to make an adjustment
thereof, in connection with subsequent contribution payments, or. If such
adjustment cannot be made the secretary of labor shall refund the amount,
except for amounts less than $5, from the employment security fund,
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except that all interest erroneously collected which has been paid into the
special employment security fund shall be refunded out of the special
employment security fund. No adjustment or refund shall be allowed with
respect to a payment as contributions, interest assessments made pursuant
to K.S.A. 44-710a, and amendments thereto, benefit cost payments or
interest unless an application therefor is made by the individual,
governmental entity or organization or the adjustment or refund is made
on the initiative of the secretary on or before whichever of the following
dates is later: (1) One year from the date on which such payment was
made; or (2) three years from the last day of the period with respect to
which such payment was made. For like cause and within the same period
adjustment or refund may be so made on the secretary's own initiative. The
secretary of labor shall not be required to refund any contributions,
payments in lieu of contributions or benefit cost payments based upon
wages paid which have been used as base-period wages in a determination
of a claimant's benefit rights when justifiable and correct payments have
been made to the claimant as the result of such determination. For all
taxable years commencing after December 31, 1997, Interest at the rate
prescribed in K.S.A. 79-2968, and amendments thereto, shall be allowed
on a contribution or benefit cost payment which the secretary has
determined was erroneously collected pursuant to this section.
(i) (1) Cash deposit or bond. If any contributing employer is
delinquent in making payments under the employment security law during
any two quarters of the most recent four-quarter period, the secretary or
the secretary's authorized representative shall have the discretionary power
to may require such contributing employer either to deposit cash or to file
a bond with sufficient sureties to guarantee the payment of contributions,
interest assessments made pursuant to K.S.A. 44-710a, and amendments
thereto, penalty and interest owed by such employer.
(2) The amount of such cash deposit or bond shall be not less than the
largest total amount of contributions, interest assessments made pursuant
to K.S.A. 44-710a, and amendments thereto, penalty and interest reported
by the employer in two of the four calendar quarters preceding any
delinquency. Such cash deposit or bond shall be required until the
employer has shown timely filing of such reports and payment of
contributions and interest assessments made pursuant to K.S.A. 44-710a,
and amendments thereto, for four consecutive calendar quarters.
(3) Failure to file such cash deposit or bond shall subject the
employer to a surcharge of 2.0% which shall be in addition to the rate of
contributions assigned to the employer under K.S.A. 44-710a, and
amendments thereto. Contributions paid as a result of this surcharge shall
not be credited to the employer's experience rating account. This surcharge
shall be effective during the next full calendar year after its imposition and
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during each full calendar year thereafter until the employer has filed the
required cash deposit or bond or has shown timely filing of reports and
payment of contributions for four consecutive calendar quarters.
(j) Any officer, major stockholder or other person who has charge of
the affairs of an employer, which that is an employing unit described in
section 501(c)(3) of the federal internal revenue code of 1954 or which of
an employer that is any other corporate organization or association, or any
member or manager of a limited liability company, or any public official,
who willfully fails to pay the amount of contributions, payments in lieu of
contributions, or benefit cost payments and interest assessments made
pursuant to K.S.A. 44-710a, and amendments thereto, required to be paid
under the employment security law on the date on which such amount
becomes delinquent, shall be personally liable for the total amount of the
such contributions, payments in lieu of contributions, or benefit cost
payments and interest assessments made pursuant to K.S.A. 44-710a, and
amendments thereto, and any penalties and interest due and unpaid by
such employing unit. The secretary or the secretary's authorized
representative may assess such person for the total amount of such
contributions, payments in lieu of contributions, or benefit cost payments
and interest assessments made pursuant to K.S.A. 44-710a, and
amendments thereto, and any penalties, and interest computed as due and
owing. With respect to such persons and such amounts assessed, the
secretary shall have available all may use any of the collection remedies
authorized or provided by this section.
(k) Electronic filing of wage report and contribution return and
electronic payment of contributions, benefit cost payments, or reimbursing
payments or interest assessments under K.S.A. 44-710a, and amendments
thereto. The following employers or third party third-party administrators
shall file all wage reports and contribution returns and make payment of
contributions, benefit cost payments or reimbursing payments
electronically as follows:
(1) Wage reports, contribution returns and payments due after June
30, 2008, for those employers with 250 or more employees or third party
third-party administrators with 250 or more client employees at the time
such filing or payment is first due;
(2) wage reports, contribution returns and payments due after June
30, 2009, for those employers with 100 or more employees or third party
third-party administrators with 100 or more client employees at the time
such filing or payment is first due; and
(3) wage reports, contribution returns, and payments and interest
assessments made pursuant to K.S.A. 44-710a, and amendments thereto,
due after June 30, 2010, for those employers with 50 or more employees
and for those third party third-party administrators with 50 or more client
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employees at the time such filing or payment is first due; and
(4) wage reports, contribution returns and payments due after June
30, 2024, for those employers with 25 or more employees and for those
third-party administrators with 25 or more client employees at the time
such filing or payment is first due.
The requirements of this subsection may be waived by the secretary for
an employer if the employer demonstrates a hardship in complying with
this subsection.
Sec. 9. K.S.A. 44-771 is hereby amended to read as follows: 44-771.
(a) (1) There is hereby created the unemployment compensation
modernization and improvement council. The council shall consist of 13
members appointed as follows:
(A) Three members who, on account of their vocation, employment
or affiliations, may be classed as representative of employers, one of
whom shall be selected by the governor, one by the speaker of the house of
representatives and one by the president of the senate;
(B) three members who, on account of their vocation, employment or
affiliation, may be classed as representative of employees, one of whom
shall be selected by the governor, one by the speaker of the house of
representatives and one by the president of the senate;
(C) the chairpersons of the standing committees of the senate and the
house of representatives to which legislation pertaining to the employment
security law is customarily referred, appointed by the president of the
senate and the speaker of the house of representatives, respectively;
(D) two members of the senate, one of whom shall be a member of
the majority party appointed by the president of the senate and one of
whom shall be a member of the minority party appointed by the minority
leader of the senate;
(E) two members of the house of representatives, one of whom shall
be a member of the majority party appointed by the speaker of the house
of representatives and one of whom shall be a member of the minority
party appointed by the minority leader of the house of representatives; and
(F) the secretary of labor or a designee of the secretary who has
administrative responsibilities with respect to the unemployment insurance
compensation system of the department of labor.
(2) Legislative members shall serve during the legislative session in
which they are appointed to the council and shall remain members of the
legislature in order to retain membership on the council. Vacancies of
legislative members during a term shall be filled in the same manner as the
original appointment only for the unexpired part of the term. The
appointing authority for the legislative member may remove the member,
reappoint the member or substitute another appointee for the member at
any time.
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(3) The members of the council shall be appointed and the council
shall hold its first meeting within 30 days of the effective date of this act
May 13, 2021.
(b) All non-legislative nonlegislative members shall serve for three
six years or until the council is dissolved, whichever is shorter occurs first.
Vacancies of non legislative nonlegislative members shall be filled in the
same manner as the original appointment only for the unexpired part of the
term. The appointing authority for the member may remove the member,
reappoint the member or substitute another appointee for the member at
any time.
(c) The council shall be dissolved and the provisions of this section
pertaining to the establishment, function and operation of the council shall
no longer be in effect on and after three years from the date of the
council's first meeting December 31, 2026.
(d) Each member of the council shall be entitled to receive
compensation for the member's services, together with the member's travel
and other necessary expenses actually incurred in the performance of the
member's official duties, in accordance with policies adopted by the
council. Members' compensation and expenses shall be paid from the
employment security administration fund or any account of the state
general fund of the department of labor, as designated by the secretary.
(e) The chairperson of the house of representatives standing
committee on commerce, labor and economic development, or a successor
committee to which legislation pertaining to employment security law is
customarily referred, shall serve as the chairperson of the council when
first organized and for the ensuing two years. The chairperson of the
senate standing committee on commerce, or a successor committee to
which legislation pertaining to employment security law is customarily
referred, shall serve as the chairperson of the council for the next two
years, and thereafter the office of chairperson shall continue to alternate
between the chambers as provided herein.
(f) The council shall examine and recommend changes to the
unemployment compensation system to include current limitations, new
features and benefits, system enhancements and dynamic, accurate
reporting for the benefit of both employers and individuals. The council
shall also examine the process by which an individual files a claim for and
receives benefits and any changes made to that process after the effective
date of this section. The scope of the council's examinations and
recommendations shall include, but not be limited to, the following:
(1) The technological infrastructure used to file and process claims
and pay benefits and the experience of individuals and employers
participating in the process;
(2) system improvements or upgrades that will maximize
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responsiveness for individuals and employers;
(3) methods for information and data sharing across agency systems
related to unemployment compensation to maximize efficiency; and
(4) system improvements or upgrades relating to system integrity by
reporting vulnerabilities and recommended system enhancements to
include identity verification and protection, social security administration
cross-match, systematic alien verification for entitlement, incarceration
cross-matches, interstate connection network, internet protocol address and
data mining and analytics to detect and prevent fraud. Such data mining
and analytics shall include current and future recommendations by the
United States department of labor and the national association of state
workforce agencies, including suspicious actor repository, suspicious
email domains, foreign IP addresses, multi-state cross-match, identity
verification, fraud alert system, and other assets provided by the
unemployment insurance integrity center.
(g) (1) The council shall conduct an audit that shall examine the
effects on the department of labor and the unemployment insurance system
of fraudulent claims and improper payments during the period of March
15, 2020, through March 31, 2022, and the response by the department of
labor to such fraudulent claims and improper payments during that period.
The council shall select an independent firm to conduct the audit. The
auditor shall have access to all confidential documents. The scope of the
audit shall include, but not be limited to, the amounts and nature of
improper payments and fraudulent claims, fraud processes and methods
and the possibility of recovery of any improper payments. The audit shall
also include, but not be limited to, an evaluation that provides likelihood
of a data breach being a contributing factor to any fraudulent payments,
improper network architecture allowing a potential breach to have
occurred and a timeline of relevant events. The independent firm shall
make a preliminary report to the council by May 1, 2022, and a final report
by September 1, 2022, that shall be made publicly available by the council.
The preliminary report should include, but not be limited to, an evaluation
of systems with access to the payment and processing of claims, forensic
endpoint images related to the claims and the external perimeter housing
the claims systems, as well as an evaluation of the department of labor's
response to claims. The council's report, and any subsequent report
provided, shall also include information on the progress regarding the
secretary's implementation of all program integrity elements and guidance
issued by the United States department of labor and the national
association of state workforce agencies as described in K.S.A. 44-772(e),
and amendments thereto. Any confidential information shall be redacted
and shall not be made public. The audit shall be paid for by the state,
subject to appropriations therefor.
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(2) The council may hold an executive session that shall not be public
under the Kansas open meetings act for the purpose of hearing and
discussing any confidential portions of the audit. The council shall follow
the provisions of K.S.A. 75-4319, and amendments thereto, when
conducting such an executive session.
(h) The council shall not examine the solvency of the unemployment
compensation fund created by K.S.A. 44-710a, and amendments thereto,
or changes that would either increase or reduce benefits paid from the
fund.
(i) The staff of the legislative research department, the office of
revisor of statutes and the division of legislative administrative services
shall provide such assistance as may be requested by the chairperson.
(j) (1) The council shall only have access to records of the department
of labor that are necessary for the administration and duties of the council.
The council shall not have access to any confidential or personal
identifying information. The council may request that the secretary of
labor, department of labor employee or any private or public employer or
employee with information of value to the council appear before the
council and testify to matters within the council's purview.
(2) Not later than 14 days after the council's first meeting, the council
shall issue an initial report that, at a minimum, describes the state of the
process by which an individual files a claim for and receives benefits
under the employment security law at the time the report is issued and
planned improvements to the process. The council may address other
matters within the council's purview in the report.
(3) The secretary of labor shall post all testimony and other relevant
materials discussed, presented to or produced for the council on a publicly
accessible website maintained by the secretary.
(k) The secretary of labor shall notify the chairperson of the council
of any unauthorized third-party access to or acquisition of records
maintained by the secretary that are necessary for the administration of the
employment security law. The secretary shall provide the notice not more
than five days after the secretary discovers or is notified of the
unauthorized access or acquisition.
(l) The secretary of labor shall notify the members of the council of
any substantial disruption in the process by which applications for
determination of benefit rights and claims for benefits are filed with the
secretary. The council shall, in cooperation with the secretary, adopt and
periodically review a definition of substantial disruption for purposes of
this subsection.
(m) (1) The secretary of labor shall, with the assistance of the
council:
(A) Develop a written strategic staffing plan to be implemented
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whenever there is a substantial increase or a substantial decrease in the
number of inquiries or claims for benefits and review the plan in
accordance with the provisions of subsection (n);
(B) create, in a single place on the website maintained by the
secretary, a list of all points of contact by which an applicant for or a
recipient of unemployment compensation benefits or an employer may
submit inquiries related to the employment security law; and
(C) adopt rules and regulations creating a uniform process through
which an applicant for or a recipient of benefits under the employment
security law or an employer may submit a complaint related to the service
the applicant, recipient or employer received.
(2) In the written strategic staffing plan required under paragraph (1)
(A), the secretary shall include an explanation of whether and in what
manner the secretary will utilize:
(A) Department employees who do not ordinarily perform services
related to unemployment compensation;
(B) employees employed by other state agencies; and
(C) employees provided by private entities.
(n) For purposes of subsection (m)(1)(A), the secretary of labor shall
develop the initial written strategic staffing plan and provide such plan to
the council, the president of the senate, the speaker of the house of
representatives and the governor. The secretary shall review the plan at
least once per year. If, after reviewing the plan, the secretary determines
that the plan should be revised, the secretary shall revise the plan. After
each review of the plan as provided under this subsection, the secretary
shall provide the most recent version of the plan to the council, the
president of the senate, the speaker of the house of representatives and the
governor. The secretary shall post the most recent version of the plan on a
publicly accessible website maintained by the secretary.
(o) The council may suggest rules and regulations for adoption by the
secretary as necessary to implement the provisions of this section.
(p) The secretary of labor or the secretary's designee shall provide
status reports on or before the 15
th
day and the last day of each month to
the council. The reports shall include, but not be limited to, the status of
the new unemployment information technology system upgrade timeline,
progress, budget and the overall project status. At such time that the new
system becomes operational, the reports shall include, but not be limited
to, system performance and process updates.
(q) This section shall be a part of and supplemental to the
employment security law.
Sec. 10. K.S.A. 44-772 is hereby amended to read as follows: 44-772.
(a) It is the intent of the legislature that, in order to accomplish the mission
of collecting state employment security taxes, processing unemployment
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insurance benefit claims and paying benefits, the department of labor's
information technology system shall be continually developed,
customized, enhanced and upgraded. The purpose of this section is to
ensure the state's unemployment insurance program is utilizing current
technology and features to protect the sensitive data required in the
unemployment insurance benefit and tax systems relating to program
integrity, system efficiency and customer service experience.
(b) The legislature finds that, as a result of the vulnerabilities exposed
in the legacy unemployment insurance system by the COVID-19 pandemic
unemployment insurance crisis, a new system shall be fully designed,
implemented and administered by the department of labor not later than
December 31, 2022. The legislative coordinating council, upon
consultation with the unemployment compensation modernization and
improvement council established by K.S.A. 44-771, and amendments
thereto, may extend the deadline to a date certain and may further extend
the deadline to another date certain at any time as often as the legislative
coordinating council deems appropriate. The secretary of labor shall
provide written notice to the legislative coordinating council and the
unemployment compensation modernization and improvement council at
least 30 days prior to the expiration of a deadline advising whether the
secretary seeks an extension of the deadline and, if so, the basis therefor.
The failure of the secretary to provide such notice shall not affect the
authority of the legislative coordinating council to act as provided by this
subsection. For purposes of this subsection, "consultation" means an
appearance before or written statement provided to the legislative
coordinating council by the chairperson of the unemployment
compensation modernization and improvement council or the
chairperson's designee. Any member of the unemployment compensation
modernization and improvement council may also provide a written
statement. A report to the legislative coordinating council by the
unemployment compensation modernization and improvement council may
be provided but shall not be required. If any deadline expires before the
legislative coordinating council extends that deadline, the council may
subsequently meet as soon as reasonably possible and may retroactively
extend any deadline as otherwise provided by this subsection.
(c) The information technology system, technology and platform
shall include, but not be limited to, any components as specified and
defined by the unemployment compensation modernization and
improvement council established by K.S.A. 44-771, and amendments
thereto, in consultation with the secretary.
(d) The new system shall include, but not be limited to, any features
and benefits as specified and defined by the unemployment compensation
modernization and improvement council established by K.S.A. 44-771,
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and amendments thereto, in consultation with the secretary.
(e) The secretary shall implement and utilize all program integrity
elements, as specified and defined by the unemployment compensation
modernization and improvement council established by K.S.A. 44-771,
and amendments thereto, in consultation with the secretary, including, but
not limited to:
(1) Social security administration cross-matching for the purpose of
validating social security numbers supplied by a claimant;
(2) checking of new hire records against the national directorate of
new hires to verify eligibility;
(3) verification of immigration status or citizenship and confirmation
of benefit applicant information through the systematic alien verification
for entitlement program;
(4) comparison of applicant information to local, state and federal
prison databases through incarceration cross-matches;
(5) detection of duplicate claims by applicants filed in other states or
other unemployment insurance programs through utilization of the
interstate connection network, interstate benefits cross-match, the state
identification inquiry state claims and overpayment file and the interstate
benefits 8606 application for overpayment recoveries for Kansas claims
filed from a state other than Kansas;
(6) identification of internet protocol addresses linked to multiple
claims or to claims filed outside of the United States; and
(7) use of data mining and data analytics to detect and prevent fraud
when a claim is filed, and on an ongoing basis throughout the lifecycle of a
claim, by using current and future functionalities to include suspicious
actor repository, suspicious email domains, foreign internet protocol
addresses, multi-state cross-match, identity verification, fraud alert
systems and other assets provided by the unemployment insurance
integrity center.
(f) If the unemployment compensation modernization and
improvement council becomes inactive or is dissolved and the new
information technology system modernization project has been completed,
the secretary shall implement and utilize all new program integrity
elements and guidance issued by the United States department of labor and
the national association of state workforce agencies, including the integrity
data hub, within 60 days of the issuance of any such guidance.
(g) The secretary, on a scheduled basis, shall cross check new and
active unemployment insurance claims against the cross-check programs
described in subsection (e). If the secretary receives information
concerning an individual approved for benefits that indicates a change in
circumstances that may affect eligibility, the secretary shall review the
individual's case and act in accordance with the law.
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(h) The department of labor shall have the authority to execute a
memorandum of understanding with any department, agency or agency
division for information required to be shared between agencies pursuant
to the provisions of this section.
(i) The secretary of labor shall adopt rules and regulations necessary
for the purposes of carrying out this section. Such rules and regulations
shall be adopted within 12 months of the effective date of this act by May
13, 2022.
(j) The secretary of labor shall provide an annual status update and
progress report regarding the requirements of this section to the
unemployment compensation modernization and improvement council and
the legislative coordinating council.
(k) This section shall be a part of and supplemental to the
employment security law.
Sec. 11. K.S.A. 44-774 is hereby amended to read as follows: 44-774.
(a) The secretary of labor shall post trust fund computations and data as
required by subsection (b) on a publicly accessible website maintained by
the secretary as follows:
(1) The secretary shall post and maintain certified computations and
data for each of the most recent 20 fiscal years within 120 days of the
effective date of this act; and
(2) for the fiscal year beginning on July 1, 2021 2024, and each fiscal
year thereafter, the secretary shall certify and post the trust fund
computations and data for the fiscal year to the website on or before
December 1 following the end of such fiscal year.
(b) The computations and data to be posted shall include:
(1) Distributions of taxable wages by experience factor for each state
fiscal year including the following information:
(A) The rate group;
(B) the reserve ratio lower limit;
(C) the number of accounts;
(D) the taxable wages by fiscal year;
(E) a summary of active positive eligible accounts with the number of
accounts and fiscal year taxable wages;
(F) a summary of active ineligible accounts with the number of
accounts and fiscal year taxable wages;
(G) a summary of active negative accounts with the number of
accounts and fiscal year taxable wages; and
(H) a summary of terminated and inactive accounts with the number
of accounts and fiscal year taxable wages including all:
(i) Terminated accounts with the number of accounts and fiscal year
taxable wages; and
(ii) inactive accounts with the number of accounts and fiscal year
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taxable wages organized by regular rated, industry rated and negative
rated accounts; and
(2) an average high cost benefit rate summary, including:
(A) The average high cost benefit rate currently in effect; and
(B) the benefit cost rate for the fiscal years used to calculate the
average high benefit cost rate;
(3) the statewide wage data, including:
(A) Statewide average annual wage (SAAW) for the fiscal year; and
(B) statewide average weekly wage (SAWW) for the fiscal year; and
(4) certified computations and data for contributing negative rated
employers assigned to rate groups N1 through N11, including, for the
current and most recent calculated three years:
(A) Employer account ID;
(B) NAICS code;
(C) the employer's account balance by fiscal year;
(D) the employer's taxable wages by fiscal year;
(E) the employer's calculated reserve ratio by fiscal year;
(F) the employer's taxable wage base by fiscal year;
(G) the benefits charged to the employer by fiscal year;
(H) the total number of temporary weeks requested by the employer,
if any;
(I) the total number of temporary weeks approved for the employer, if
any;
(J) the total number of temporary weeks claimed by the employer, if
any;
(K) if workshare was requested by the employer; and
(L) if workshare was approved for the employer.
(c) This section shall be a part of and supplemental to the
employment security law.
Sec. 12. K.S.A. 2023 Supp. 44-775 is hereby amended to read as
follows: 44-775. (a) (1) The secretary of labor and the secretary of
commerce shall jointly establish and implement the my reemployment
plan as provided in this section. For purposes of this section, "my
reemployment plan" means a program jointly established and implemented
by the Kansas department of labor and the Kansas department of
commerce that provides enhanced reemployment services, including
workforce services provided by the department of commerce, to Kansans
receiving unemployment insurance benefits.
(2) The program shall be required for all claimants except claimants
that are:
(A) In the shared work program,;
(B) in the trade adjustment assistance and trade readjustment
assistance program, claimants on temporary layoff with a return-to-work
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date but such claimants shall only be excepted during any first 8
consecutive weeks of benefits, claimants that are;
(C) on temporary unemployment as defined in K.S.A. 44-703(ii), and
amendments thereto;
(D) currently employed, claimants that are;
(E) current reemployment services and eligibility assessment
participants, claimants that are;
(F) active members in good standing of a placement union or; or
(G) claimants that are engaged in a training program. The program
shall be implemented on or before June 1, 2021.
(2)(3) (A) The following shall apply to any request to the secretary
for an extension or extensions of additional weeks of temporary
unemployment, as defined by K.S.A. 44-703(ii), and amendments thereto:
(i) The request shall be made in writing by a rated contributing
employer on behalf of an identified individual or individuals;
(ii) the request shall be submitted, with respect to each individual, for
an increment of not less than two weeks but not more than four weeks of
the total maximum amount of additional temporary unemployment allowed
for the individual, as provided by subparagraphs (C) and (D); and
(iii) the rated contributing employer shall agree to provide the
secretary with reports relating to the temporary unemployment extension
request as the secretary may require.
(B) The secretary may approve one or more temporary employment
extension requests for an individual in an increment of two to four weeks
for each request up to the maximum total number of weeks permitted, as
provided by subparagraphs (C) and (D), if the secretary determines that
the requesting employer has:
(i) Agreed to provide the secretary with all reports required as
provided by subparagraph (A)(iii);
(ii) filed all reports required to be filed under the employment
security law for all past and current periods;
(iii) paid all contributions required to be paid under the employment
security law; and
(iv) if the requesting employer is a negative-rated contributing
employer, improved the requesting employer's most recent calculated
reserve ratio from the previous reserve ratio for the previous reporting
year by at least 0.10%.
(C) The total maximum amount of additional temporary
unemployment for an individual in a benefit year that may be granted by
the secretary upon the request of a rated contributing employer shall be
limited to four weeks. The total maximum amount of temporary
unemployment for an individual, including any incremental extensions of
additional temporary unemployment granted by the secretary, shall be
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limited to eight weeks, except as provided by subparagraph (D).
(D) The total amount of additional temporary unemployment benefits
for an individual in a benefit year shall be limited to 12 weeks if the
incremental requests for additional temporary unemployment are made by
a requesting employer determined by the secretary to be primarily
engaged in the construction of highways or elevated highways, streets,
roads, airport runways, public sidewalks or bridges. The total maximum
amount of temporary unemployment for an individual in a benefit year
pursuant to this subparagraph, including any incremental extensions of
additional temporary unemployment granted by the secretary, shall be
limited to 16 weeks.
(4) The secretary of labor shall provide the secretary of commerce
with the names and contact information of claimants that have claimed a
third week of benefits in the current benefit year. The secretary of labor
shall request the claimant to upload or create a complete resume in the
Kansasworks workforce system, and complete a job search plan that
includes a skills assessment component. The secretary of commerce shall
offer and provide, when requested, assistance to the claimants in
developing the documents or plan through collaboration by the secretary
with the Kansasworks workforce system. The secretary of commerce may
require claimants to participate in reemployment services. The claimant
shall have 14 calendar days to respond to the secretary of commerce. The
secretary of commerce shall report any failure to respond by the claimant
to the secretary of labor.
(3)(5) The secretary of labor shall share labor market information and
current available job positions with the secretary of commerce. The
secretary of labor may collaborate with Kansasworks or other state or
federal agencies with job availability information in obtaining or sharing
such information.
(4)(6) The secretary of commerce shall match open job positions with
claimants based on skills, work history and job location that is a
reasonable commute from the claimant's residence and communicate the
match information to the claimant and to the employer. The secretary of
labor and the secretary of commerce shall consider whether the claimant or
a Kansas employer would benefit from the claimant's participation in a
work skills training or retraining program as provided by subsection (b)
and, if so, provide such information to the employer, if applicable, and the
claimant. Claimants who fail to respond within 14 calendar days after
contact by Kansasworks or the department of commerce shall be reported
by the secretary of commerce to the secretary of labor.
(5)(7) The secretary of commerce and the secretary of labor shall
monitor the result of job matches and share information regarding any
claimant who did not attend an interview or did not accept a position that
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was a reasonable match for the claimant's work history and skills and was
within a reasonable commute from the claimant's residence. The secretary
of commerce shall contact the claimant and report the contact to the
secretary of labor. The secretary of labor shall consider whether the
claimant has failed to meet work search requirements and if the claimant
should continue to receive benefits.
(b) The secretary of commerce shall refer claimants to a work skills
training or retraining program as appropriate. The secretary of commerce
shall seek to obtain or utilize any available federal funds for the program,
and to the extent feasible, may make current work skills training and
retraining programs available to claimants. The secretary of labor may
allow claimants to participate in such a program offered by the secretary of
commerce or by another state or federal agency in lieu of requiring the
claimant to meet job search requirements and the requirements of the my
reemployment plan until the number of allowed benefit weeks has expired.
A claimant shall participate in such a program for not less than 25 hours
per week. The secretary of commerce shall monitor those my
reemployment plan claimants participating in training managed by the
workforce centers to ensure compliance.
(c) Claimants who participate in the my reemployment plan or the
work skills training or retraining program shall meet attendance or
progress requirements established by the secretary of commerce to
continue eligibility for unemployment insurance benefits. Non compliant
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claimants shall be reported by the secretary of commerce to the secretary
of labor. The secretary of labor shall disqualify such claimants from further
benefits within five business days of receiving the report, unless or until
the claimant demonstrates compliance to the secretary of commerce, and
shall communicate the disqualification and the reason for the
disqualification to the claimant. The secretary of commerce shall report to
the secretary of labor when the claimant has reestablished compliance. The
secretary of labor may continue benefits or reinstate a claimant's eligibility
for benefits upon a showing of good cause by the claimant for the failure
to meet attendance or progress requirements or my reemployment plan
participation requirements.
(d) The secretary of labor and the secretary of commerce shall
provide an annual status update and progress report for the my
reemployment plan to the standing committee on commerce, labor and
economic development of the house of representatives and the standing
committee on commerce of the senate during the first month of the 2022
regular legislative session and the first month of each regular legislative
session thereafter.
(e) This section shall be a part of and supplemental to the
employment security law.
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Sec. 13. K.S.A. 44-704, 44-705, 44-709, 44-710, 44-710b, 44-717,
44-771, 44-772 and 44-774 and K.S.A. 2023 Supp. 44-703, 44-710a and
44-775 are hereby repealed.
Sec. 14. This act shall take effect and be in force from and after its
publication in the statute book.
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