HLS 14RS-1194 ENGROSSED
Page 1 of 11
CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
Regular Session, 2014
HOUSE BILL NO. 880
BY REPRESENTATIVE STOKES
EMPLOYMENT/UNEMPLOYMENT: Provides with respect to unemployment insurance
tax delay periods
AN ACT1
To amend and reenact R.S. 23:1540 through 1541.1, 1711(G)(1)(d), 1722 through 1724,2
1728, 1766(B), and 1767(D), relative to unemployment insurance tax delay periods;3
to make tax appeal delay periods uniform; to cause delay periods to begin at the time4
of mailing rather than the time of receipt; to provide relative to rights of employers5
to apply for review of a quarterly benefit charge statement; to provide that an appeal6
of a notice of chargeability be made directly to an administrative law judge; to7
provide relative to professional employer organizations; and to provide for related8
matters.9
Be it enacted by the Legislature of Louisiana:10
Section 1. R.S. 23:1540 through 1541.1, 1711(G)(1)(d), 1722 through 1724, 1728,11
1766(B), and 1767(D) are hereby amended and reenacted to read as follows: 12
§1540. Appeal of liability or tax rate determination13
If not later than one hundred eighty days following the date of issuance of a14
liability determination made pursuant to R.S. 23:1472 or a tax rate resulting from15
that determination, an An employer may apply for review pursuant to R.S.16
23:1541(E) of such a determination unless it is established that there was an17
administrative error which resulted in an incorrect determination or tax rate of any18
liability determination and any tax rate resulting from that determination in19
accordance with the time delays and procedures provided in R.S. 23:1541(E).20 HLS 14RS-1194 ENGROSSED
HB NO. 880
Page 2 of 11
CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
§1541. Notice of benefits charged against employer's experience rating record;1
employer's right to contest; application for review; procedure2
A. The administrator shall, not later than October first of each year, render3
a statement to each employer of benefits paid each individual and charged to his4
experience-rating record for the twelve-month period ending the previous June5
thirtieth. However, the administrator shall, effective with the quarter ending6
September 30, 1954, and subsequent calendar quarters, not later than ninety days7
after the close of each calendar quarter, render a statement to each employer of8
benefits paid each individual and charged to his experience-rating record. These9
benefit charges shall be conclusive and binding upon the employer unless he files an10
application to review the charges setting forth his reasons therefor within thirty days11
after the mailing of the notice to his last known address, or in the absence of mailing12
within twenty-five days after the delivery of the notice. However, any benefits paid13
to employees of experience-rated employers pursuant to Executive Orders KBB14
2005-34, KBB 2005-46, and KBB 2005-76 shall not be charged to employers'15
experience-rating records.16
B. No employer that was a party to the separation shall have standing in any17
proceeding involving the chargeability of benefits to his experience-rating record to18
contest the chargeability to his record of any benefits paid in accordance with a19
determination, reconsidered determination, or decision of which he was given notice20
and an opportunity to be heard, or that was issued a notice of chargeablility pursuant21
to R.S. 23:1541.1 shall have standing to contest the chargeability to his record of any22
benefits on the grounds of potential disqualification because of circumstances23
surrounding separation from employmen t if he was not entitled to notice of the24
determination, reconsidered determination, or decision under which such benefits25
were paid quarterly charge statement.26
C. Subject to the limitations of Subsection B of this Section, if an employer27
in his application for review alleges error in the determination, reconsidered28
determination, or decision under which any benefits charged to his experience-rating29 HLS 14RS-1194 ENGROSSED
HB NO. 880
Page 3 of 11
CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
record were paid, such determination, reconsidered determination, or decision shall1
be deemed and held to be of no force and effect as against such employer,2
notwithstanding anything to the contrary. The administrator shall affirm, modify,3
or reverse such determination, reconsidered determination, or decision, acting in4
accordance with the procedure prescribed in Part VI of this Chapter insofar as5
applicable. Notice of the administrator's action shall be given and appeal therefrom6
may be taken in accordance with Part VI of this Chapter, provided that in any such7
proceedings the employer shall be entitled to notice and shall otherwise have the8
same rights as a party entitled to notice thereunder. The administrator shall adjust9
the experience-rating record of an employer in accordance with any reconsidered10
determination or decision modifying or reversing the determination, reconsidered11
determination, or decision alleged to be in error by the employer, and shall affirm or12
modify any contribution rate based upon such experience-rating record. If an13
employer who was not a party to the separation determination, reconsidered14
determination, or decision, or who was not issued a determination of chargeability15
pursuant to R.S. 23:1541.1, alleges in his application for review of the quarterly16
charge statement that benefits were not properly charged to his experience-rating17
record, the administrator shall affirm, modify, or reverse such charges by issuing a18
determination of chargeability as provided in R.S. 23:1541.1.19
D. Subject to the limitations of Subsection B of this Section, if an employer20
alleges that certain benefits are not properly chargeable to his experience-rating21
record on grounds other than error in the determination, reconsidered determination,22
or decision under which the benefits were paid, the administrator shall give him an23
opportunity for a fair hearing, and on the basis of his findings and conclusion shall24
make such adjustments in the employer's experience-rating record and contribution25
rate as may thereunder be required. The employer shall be promptly notified of the26
administrator's action which shall become final unless within twenty days after the27
mailing of notice thereof to his last known address or in the absence of mailing28
within fifteen days of delivery of such notice a petition for judicial review is filed in29 HLS 14RS-1194 ENGROSSED
HB NO. 880
Page 4 of 11
CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
the district court of the employer's domicile. In all proceedings under this1
Subsection, the findings of the administrator as to facts shall be presumed to be2
prima facie correct if supported by substantial and competent evidence. These3
proceedings shall be heard in summary manner and shall be given precedence over4
all other civil cases except cases arising under Part VI of this Chapter and under5
Chapter 10 of this Title. An appeal may be taken from the decision of the district6
court in the same manner, but not inconsistent with the provisions of this Chapter,7
as is provided for in other civil cases.8
E. D. The administrator shall establish by October fourteenth of each year9
the amount to be collected for the Incumbent Worker Training Account pursuant to10
R.S. 23:1553(B)(6) through (9). 11
E. The administrator shall notify each employer, no later than December12
thirty-first of each year, of his rate of contribution for the forthcoming calendar year13
as determined for any relevant experience-rating year pursuant to this Part. This14
determination shall be conclusive and binding upon an employer unless within15
twenty thirty days after the mailing of notice hereof to his last known address, or in16
the absence of mailing within fifteen days after the delivery of such notice, the17
employer files an application for review and redetermination, setting forth his18
reasons therefor. If the administrator grants such review, the employer shall be19
promptly notified thereof and shall be granted an opportunity for a fair hearing, but20
no employer shall have standing, in any proceeding involving his rate of contribution21
or contribution liability, to contest the chargeability of any benefits to his experience-22
rating record as to cases wherein he has previously been notified and had an23
opportunity for hearing, review, and appeal. The employer shall be promptly24
notified of the administrator's action which shall become final unless within twenty25
thirty days after the mailing of notice thereof to his last known address or in the26
absence of mailing within fifteen days after the delivery of such notice a petition for27
judicial review is filed in the district court of employer's domicile. In any proceeding28
under this Subsection, the findings of the administrator as to facts shall be presumed29 HLS 14RS-1194 ENGROSSED
HB NO. 880
Page 5 of 11
CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
to be prima facie correct if supported by substantial and competent evidence. These1
proceedings shall be heard in a summary manner and shall be given precedence over2
all other civil cases except cases arising under Part VI of this Chapter and Chapter3
10 of this Title. An appeal may be taken from the decision of the district court in the4
same manner, but not inconsistent with the provisions of this Chapter as in other civil5
cases.6
F.(1) Within thirty days after the mailing to his last known address, or in the7
absence of mailing, within twenty-five days after the delivery of the annual rate8
notice, the employer may contribute any amount to his experience-rating account.9
(2) Any such payment made by the employer within thirty days after the10
mailing to his last known address, or in the absence of mailing within twenty-five11
days after the delivery of the notice, shall be deposited in the Louisiana12
unemployment compensation fund and credited by the administrator so that the13
employer's experience rating account as of the previous computation date, and the14
balance of his account after such credit, shall be used in computing his rate15
determination for the ensuing experience-rating year.16
(3) This Subsection shall be inapplicable with respect to any calendar year17
in which any of the additional rates provided for in R.S. 23:1536(E) 23:1536(D), (E),18
and (F) and this Section are applicable.19
§1541.1. Notice of chargeability of benefits to base-period employers; employer's20
right to contest; application for review appeals; procedure21
A. The administrator shall issue, upon the commencement of payment of a22
claim, a determination of chargeability of benefits to base-period employers. The23
determination shall be conclusive and binding upon any such base-period employer24
unless he files an appeal application for initial review, setting forth his reasons25
within twenty thirty days after the date of mailing of any such determination.26
B. Upon initial review, the administrator shall affirm, modify, or reverse27
such determination of chargeability. The employer shall be promptly notified in28
writing of the administrator's initial review, which shall become final unless the29 HLS 14RS-1194 ENGROSSED
HB NO. 880
Page 6 of 11
CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
employer requests a hearing to appear before the administrator within twenty days1
after the date of mailing of the decision of review. Upon If appealed, then upon2
being given the opportunity to be heard, the employer shall be promptly notified of3
the administrator's administrative law judge's action, which shall be final unless the4
employer files a petition for judicial review in the state district court of the5
employer's domicile within twenty thirty days of the date of mailing such action. In6
any court proceeding under this Subsection, the findings of the administrator7
administrative law judge as to facts shall be presumed to be prima facie correct, if8
supported by substantial and competent evidence. These proceedings shall be heard9
in summary manner and shall be given precedence over all other civil cases, except10
cases arising under Part VI of this Chapter or Chapter 10 of this Title. An appeal11
may be further taken from the decision of the state district court in the same manner,12
but not inconsistent with the provisions of this Chapter, as provided in other civil13
cases.14
C. Chargeability under this Section is not altered unless and until such15
decision is finally modified or reversed by the administrator , administrative law16
judge, or court.17
D. Any final decision of the administrator, administrative law judge, or the18
court shall be binding upon the employer upon his receipt of the quarterly statement19
of benefit charges. No employer shall thereafter have standing in any administrative20
or judicial proceeding to contest the chargeability to his record of any such paid21
benefits for which he previously sought review or appeal and was given notice under22
this Section.23
* * *24
§1711. False statements or representations; failure to file reports or maintain25
records; duties of officers and agents; presumptive proof; penalties26
* * *27 HLS 14RS-1194 ENGROSSED
HB NO. 880
Page 7 of 11
CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
G. Misclassification of employees as independent contractors1
(1)2
* * *3
(d) No such determination shall be final or effective, and no resulting4
administrative penalty shall be assessed, unless the administrator first provides the5
employer with written notification by certified mail of the determination, including6
the amount of the proposed contributions, interest, and penalties determined to be7
due and of the opportunity to request a fair hearing, of which a record shall be made8
within ten thirty days of the mailing of such notice. The hearing request may be9
made by mail, as evidenced by the official postmarked date, or by otherwise timely10
delivering such appeal. If the employer does not request a hearing within the ten-day11
thirty-day period the determination shall become final and effective, and the12
contributions, interest, and penalties due shall be assessed.13
* * *14
§1722. Determination and notice of liability and contributions due15
If an employer fails to make and file any report required by authority of this16
Chapter or to pay any contributions, interest, penalty or other payments due under17
this Chapter, or if a report made and filed does not correctly compute the liability of18
the employer, the administrator shall cause an audit, investigation or examination to19
be made to determine the liability, contributions, interest and penalty due by the20
employer, or if no report has been filed he shall determine the liability, contributions,21
interest and penalty by estimate or otherwise. Having determined the amount of22
liability, contributions, interest and penalty due, the administrator shall send a notice23
by certified or registered mail to the employer at the last known address of the24
employer setting out the determination of liability, contributions, interest and penalty25
due and informing the employer of his intent to assess the amount of the26
determination against the employer after ten thirty calendar days from the date of the27
notice and that unless the employer protests appeals the determination as provided28 HLS 14RS-1194 ENGROSSED
HB NO. 880
Page 8 of 11
CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
in R.S. 23:1723 within the ten day thirty-day period the assessment shall become1
final.2
§1723. Protest to Appeal of determination; procedure; content; delays; hearings3
The employer, within the ten day thirty-day period provided by R.S. 23:1722,4
may protest appeal the determination of the administrator by sending a protest an5
appeal to the administrator by certified or registered mail. The protest appeal shall6
fully disclose the reasons, together with facts and figures in substantiation thereof,7
for objecting to the administrator's determination. The administrator shall consider8
the protest appeal, and, if timely requested by the employer, shall grant a fair hearing9
of which a record shall be made before making a final determination on liability and10
assessment of contributions, interest and penalties due.11
§1724. Assessment12
At the expiration of the ten day thirty-day period provided for in R.S.13
23:1722, or at the expiration of such time as may be necessary for the administrator14
to consider any protest appeal filed to such notice, the administrator may proceed to15
assess the contributions, interest and penalty that he determines to be due under this16
Chapter. This assessment shall be evidenced by a writing in any form suitable to the17
administrator which states the name of the employer, the amount determined to be18
due, and the taxable period for which the assessment is due. This writing shall be19
retained as a part of the administrator's official records. The assessment may20
confirm or modify the administrator's original determination.21
* * *22
§1728. Appeals; delays; venue; burden of proof23
When an employer is dissatisfied with the final assessment, he may within24
ten thirty days of the date of the notice of assessment file a petition for judicial25
review of the assessment in either the district court in the parish of East Baton Rouge26
or in the district court of the parish wherein the employer maintains his principal27
place of business setting forth allegations of error made by the administrator. The28
review by the court shall be limited to questions of law, provided that if a hearing has29 HLS 14RS-1194 ENGROSSED
HB NO. 880
Page 9 of 11
CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
been held the findings of fact by the administrator shall be conclusive if supported1
by substantial and competent evidence.2
No court shall have the power to enjoin or suspend the payment of3
contributions, interest, and penalty during an appeal of an assessment.4
* * *5
§1766. Rejection of application for registration6
* * *7
B. The administrator shall furnish the applicant with a written statement of8
the reason for rejecting or revoking an application. The applicant may request a9
hearing before the administrator within thirty days of receipt mailing of the written10
statement.11
§1767. Terms of registration; renewal; revocation12
* * *13
D. A PEO shall have a right to an administrative hearing before an objective14
party prior to the cancellation or nonrenewal of its registration. The administrator15
shall furnish the applicant with a written statement of the reason for revoking a16
registration or rejecting an application. The applicant may request a hearing before17
the administrator within thirty days of receipt mailing of the written statement.18
DIGEST
The digest printed below was prepared by House Legislative Services. It constitutes no part
of the legislative instrument. The keyword, one-liner, abstract, and digest do not constitute
part of the law or proof or indicia of legislative intent. [R.S. 1:13(B) and 24:177(E)]
Stokes HB No. 880
Abstract: Provides with respect to unemployment insurance tax delay periods.
Present law relative to unemployment insurance contributions provides that within 180 days
of the date of issuance of a liability determination, or a tax rate resulting from that
determination, an employer may apply for review pursuant to present law of the
determination unless it is found to have resulted from an administrative error. Proposed law
revises present law to provide that an employer may apply for such review of the liability
determination in accordance with the time delays and procedures provided in proposed law.
Proposed law deletes present law requiring the administrator of the unemployment
compensation program (administrator), not later than Oct. 1 annually, to render a statement
to each employer of benefits paid to each individual and charged to his experience-rating
record for the most recent 12-month period ending June 30. HLS 14RS-1194 ENGROSSED
HB NO. 880
Page 10 of 11
CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
Present law stipulates that no employer shall have standing in any proceeding involving
chargeability of benefits to his experience-rating record to contest the chargeability of any
benefits paid in accordance with a determination, reconsidered determination, or decision
of which he was given notice and an opportunity to be heard, or to contest the chargeability
to his record of any benefits on the grounds of potential disqualification because of
circumstances surrounding separation from employment if he was not entitled to such notice.
Proposed law revises present law to stipulate that no employer that was a party to the
separation or was issued a notice of chargeablility pursuant to proposed law shall have
standing to contest the quarterly charge statement.
Proposed law deletes all of the following provisions of present law:
(1)Provisions establishing that subject to certain limitations, if an employer in
application for review alleges error in the determination or decision under which
benefits charged to his experience-rating record were paid, the determination or
decision shall have no force and effect as against such employer.
(2)Provisions requiring the administrator to affirm, modify, or reverse the determination
or decision in (1) above; and requiring that notice of the administrator's action be
given, and authorizing appeal therefrom to be taken, provided that in any such
proceedings the employer is entitled to notice and otherwise has the same rights as
a party entitled to notice.
(3)Provisions requiring the administrator to adjust the experience-rating record of an
employer in accordance with any reconsidered determination or decision modifying
or reversing the determination, reconsidered determination, or decision alleged to be
in error by the employer; and to affirm or modify any contribution rate based upon
such record.
(4)Provisions establishing that subject to certain limitations, if an employer alleges that
certain benefits are not properly chargeable to his experience-rating record on
grounds other than error in the determination or decision under which the benefits
were paid, the administrator shall give him an opportunity for a fair hearing; and,
based on findings, shall make such adjustments in the employer's experience-rating
record and contribution rate as may be required.
(5)Provisions requiring prompt notification to an employer of the administrator's action
which shall become final unless one of the following occur:
(a)Within 20 days after the mailing of notice of the action a petition for judicial
review is filed in the district court of the employer's domicile.
(b)Within 15 days of delivery of such notice a petition for judicial review is
filed in the district court of the employer's domicile.
Proposed law provides that if an employer who was not a party to the separation
determination or decision, or who was not issued a determination of chargeability pursuant
to proposed law, alleges in his application for review of the quarterly charge statement that
benefits were not properly charged to his experience-rating record, the administrator shall
affirm, modify, or reverse such charges by issuing a determination of chargeability as
provided in proposed law.
Present law provides that a determination relative to an employer's rate of contribution for
the forthcoming calendar year to the Incumbent Worker Training Account shall be
conclusive and binding unless the employer appeals the determination within 20 days after
the mailing of notice or, in the absence of mailing, within 15 days after the delivery of such
notice. Proposed law deletes reference to 15-day period commencing with delivery of such HLS 14RS-1194 ENGROSSED
HB NO. 880
Page 11 of 11
CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
notice, providing that the employer may appeal only within 20 days after the mailing of
notice.
Proposed law changes procedure for contesting a determination of chargeability of benefits
to base-period employers from an application for review by the administrator of the
unemployment compensation program to an appeal procedure in which an administrative
law judge shall hear and act upon the appeal.
Proposed law revises present law relative to penal provisions within the unemployment
compensation program (R.S. 23:1711 et seq.) to provide the following:
(1)Authorize determinations of liability
(2)Extend the period allowed for action by employers and the administrator in certain
review and appeal procedures from 10 days to 30 days.
Proposed law revises present law relative to Professional Employer Organizations (PEOs)
within the unemployment compensation program (R.S. 23:1761 et seq.) to change the period
allowed for actions on application for, renewal, and revocation of certain registrations from
within 30 days of receipt of a statement to within 30 days of mailing of a statement.
(Amends R.S. 23:1540-1541.1, 1711(G)(1)(d), 1722-1724, 1728, 1766(B), and 1767(D))
Summary of Amendments Adopted by House
Committee Amendments Proposed by House Committee on Labor and Industrial
Relations to the original bill.
1. Added technical amendments.