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ACT No. 529
Regular Session, 2014
HOUSE BILL NO. 880
BY REPRESENTATIVE STOKES
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
§1541. Notice of benefits charged against employer's experience rating record;21
employer's right to contest; application for review; procedure22
A. The administrator shall, not later than October first of each year, render23
a statement to each employer of benefits paid each individual and charged to his24 ENROLLEDHB NO. 880
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experience-rating record for the twelve-month period ending the previous June1
thirtieth. However, the administrator shall, effective with the quarter ending2
September 30, 1954, and subsequent calendar quarters, not later than ninety days3
after the close of each calendar quarter, render a statement to each employer of4
benefits paid each individual and charged to his experience-rating record. These5
benefit charges shall be conclusive and binding upon the employer unless he files an6
application to review the charges setting forth his reasons therefor within thirty days7
after the mailing of the notice to his last known address, or in the absence of mailing8
within twenty-five days after the delivery of the notice. However, any benefits paid9
to employees of experience-rated employers pursuant to Executive Orders KBB10
2005-34, KBB 2005-46, and KBB 2005-76 shall not be charged to employers'11
experience-rating records.12
B. No employer that was a party to the separation shall have standing in any13
proceeding involving the chargeability of benefits to his experience-rating record to14
contest the chargeability to his record of any benefits paid in accordance with a15
determination, reconsidered determination, or decision of which he was given notice16
and an opportunity to be heard, or that was issued a notice of chargeablility pursuant17
to R.S. 23:1541.1 shall have standing to contest the chargeability to his record of any18
benefits on the grounds of potential disqualification because of circumstances19
surrounding separation from employment if he was not entitled to notice of the20
determination, reconsidered determination, or decision under which such benefits21
were paid quarterly charge statement.22
C. Subject to the limitations of Subsection B of this Section, if an employer23
in his application for review alleges error in the determination, reconsidered24
determination, or decision under which any benefits charged to his experience-rating25
record were paid, such determination, reconsidered determination, or decision shall26
be deemed and held to be of no force and effect as against such employer,27
notwithstanding anything to the contrary. The administrator shall affirm, modify,28
or reverse such determination, reconsidered determination, or decision, acting in29
accordance with the procedure prescribed in Part VI of this Chapter insofar as30 ENROLLEDHB NO. 880
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applicable. Notice of the administrator's action shall be given and appeal therefrom1
may be taken in accordance with Part VI of this Chapter, provided that in any such2
proceedings the employer shall be entitled to notice and shall otherwise have the3
same rights as a party entitled to notice thereunder. The administrator shall adjust4
the experience-rating record of an employer in accordance with any reconsidered5
determination or decision modifying or reversing the determination, reconsidered6
determination, or decision alleged to be in error by the employer, and shall affirm or7
modify any contribution rate based upon such experience-rating record. If an8
employer who was not a party to the separation determination, reconsidered9
determination, or decision, or who was not issued a determination of chargeability10
pursuant to R.S. 23:1541.1, alleges in his application for review of the quarterly11
charge statement that benefits were not properly charged to his experience-rating12
record, the administrator shall affirm, modify, or reverse such charges by issuing a13
determination of chargeability as provided in R.S. 23:1541.1.14
D. Subject to the limitations of Subsection B of this Section, if an employer15
alleges that certain benefits are not properly chargeable to his experience-rating16
record on grounds other than error in the determination, reconsidered determination,17
or decision under which the benefits were paid, the administrator shall give him an18
opportunity for a fair hearing, and on the basis of his findings and conclusion shall19
make such adjustments in the employer's experience-rating record and contribution20
rate as may thereunder be required. The employer shall be promptly notified of the21
administrator's action which shall become final unless within twenty days after the22
mailing of notice thereof to his last known address or in the absence of mailing23
within fifteen days of delivery of such notice a petition for judicial review is filed in24
the district court of the employer's domicile. In all proceedings under this25
Subsection, the findings of the administrator as to facts shall be presumed to be26
prima facie correct if supported by substantial and competent evidence. These27
proceedings shall be heard in summary manner and shall be given precedence over28
all other civil cases except cases arising under Part VI of this Chapter and under29
Chapter 10 of this Title. An appeal may be taken from the decision of the district30 ENROLLEDHB NO. 880
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court in the same manner, but not inconsistent with the provisions of this Chapter,1
as is provided for in other civil cases.2
E. D. The administrator shall establish by October fourteenth of each year3
the amount to be collected for the Incumbent Worker Training Account pursuant to4
R.S. 23:1553(B)(6) through (9). 5
E. The administrator shall notify each employer, no later than December6
thirty-first of each year, of his rate of contribution for the forthcoming calendar year7
as determined for any relevant experience-rating year pursuant to this Part. This8
determination shall be conclusive and binding upon an employer unless within9
twenty thirty days after the mailing of notice hereof to his last known address, or in10
the absence of mailing within fifteen days after the delivery of such notice, the11
employer files an application for review and redetermination, setting forth his12
reasons therefor. If the administrator grants such review, the employer shall be13
promptly notified thereof and shall be granted an opportunity for a fair hearing, but14
no employer shall have standing, in any proceeding involving his rate of contribution15
or contribution liability, to contest the chargeability of any benefits to his experience-16
rating record as to cases wherein he has previously been notified and had an17
opportunity for hearing, review, and appeal. The employer shall be promptly18
notified of the administrator's action which shall become final unless within twenty19
thirty days after the mailing of notice thereof to his last known address or in the20
absence of mailing within fifteen days after the delivery of such notice a petition for21
judicial review is filed in the district court of employer's domicile. In any proceeding22
under this Subsection, the findings of the administrator as to facts shall be presumed23
to be prima facie correct if supported by substantial and competent evidence. These24
proceedings shall be heard in a summary manner and shall be given precedence over25
all other civil cases except cases arising under Part VI of this Chapter and Chapter26
10 of this Title. An appeal may be taken from the decision of the district court in the27
same manner, but not inconsistent with the provisions of this Chapter as in other civil28
cases.29 ENROLLEDHB NO. 880
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F.(1) Within thirty days after the mailing to his last known address, or in the1
absence of mailing, within twenty-five days after the delivery of the annual rate2
notice, the employer may contribute any amount to his experience-rating account.3
(2) Any such payment made by the employer within thirty days after the4
mailing to his last known address, or in the absence of mailing within twenty-five5
days after the delivery of the notice, shall be deposited in the Louisiana6
unemployment compensation fund and credited by the administrator so that the7
employer's experience rating account as of the previous computation date, and the8
balance of his account after such credit, shall be used in computing his rate9
determination for the ensuing experience-rating year.10
(3) This Subsection shall be inapplicable with respect to any calendar year11
in which any of the additional rates provided for in R.S. 23:1536(E) 23:1536(D), (E),12
and (F) and this Section are applicable.13
§1541.1. Notice of chargeability of benefits to base-period employers; employer's14
right to contest; application for review appeals; procedure15
A. The administrator shall issue, upon the commencement of payment of a16
claim, a determination of chargeability of benefits to base-period employers. The17
determination shall be conclusive and binding upon any such base-period employer18
unless he files an appeal application for initial review, setting forth his reasons19
within twenty thirty days after the date of mailing of any such determination.20
B. Upon initial review, the administrator shall affirm, modify, or reverse21
such determination of chargeability. The employer shall be promptly notified in22
writing of the administrator's initial review, which shall become final unless the23
employer requests a hearing to appear before the administrator within twenty days24
after the date of mailing of the decision of review. Upon If appealed, then upon25
being given the opportunity to be heard, the employer shall be promptly notified of26
the administrator's administrative law judge's action, which shall be final unless the27
employer files a petition for judicial review in the state district court of the28
employer's domicile within twenty thirty days of the date of mailing such action. In29
any court proceeding under this Subsection, the findings of the administrator30 ENROLLEDHB NO. 880
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administrative law judge as to facts shall be presumed to be prima facie correct, if1
supported by substantial and competent evidence. These proceedings shall be heard2
in summary manner and shall be given precedence over all other civil cases, except3
cases arising under Part VI of this Chapter or Chapter 10 of this Title. An appeal4
may be further taken from the decision of the state district court in the same manner,5
but not inconsistent with the provisions of this Chapter, as provided in other civil6
cases.7
C. Chargeability under this Section is not altered unless and until such8
decision is finally modified or reversed by the administrator, administrative law9
judge, or court.10
D. Any final decision of the administrator, administrative law judge, or the11
court shall be binding upon the employer upon his receipt of the quarterly statement12
of benefit charges. No employer shall thereafter have standing in any administrative13
or judicial proceeding to contest the chargeability to his record of any such paid14
benefits for which he previously sought review or appeal and was given notice under15
this Section.16
* * *17
§1711. False statements or representations; failure to file reports or maintain18
records; duties of officers and agents; presumptive proof; penalties19
* * *20
G. Misclassification of employees as independent contractors21
(1)22
* * *23
(d) No such determination shall be final or effective, and no resulting24
administrative penalty shall be assessed, unless the administrator first provides the25
employer with written notification by certified mail of the determination, including26
the amount of the proposed contributions, interest, and penalties determined to be27
due and of the opportunity to request a fair hearing, of which a record shall be made28
within ten thirty days of the mailing of such notice. The hearing request may be29
made by mail, as evidenced by the official postmarked date, or by otherwise timely30 ENROLLEDHB NO. 880
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delivering such appeal. If the employer does not request a hearing within the ten-day1
thirty-day period the determination shall become final and effective, and the2
contributions, interest, and penalties due shall be assessed.3
* * *4
§1722. Determination and notice of liability and contributions due5
If an employer fails to make and file any report required by authority of this6
Chapter or to pay any contributions, interest, penalty or other payments due under7
this Chapter, or if a report made and filed does not correctly compute the liability of8
the employer, the administrator shall cause an audit, investigation or examination to9
be made to determine the liability, contributions, interest and penalty due by the10
employer, or if no report has been filed he shall determine the liability, contributions,11
interest and penalty by estimate or otherwise. Having determined the amount of12
liability, contributions, interest and penalty due, the administrator shall send a notice13
by certified or registered mail to the employer at the last known address of the14
employer setting out the determination of liability, contributions, interest and penalty15
due and informing the employer of his intent to assess the amount of the16
determination against the employer after ten thirty calendar days from the date of the17
notice and that unless the employer protests appeals the determination as provided18
in R.S. 23:1723 within the ten day thirty-day period the assessment shall become19
final.20
§1723. Protest to Appeal of determination; procedure; content; delays; hearings21
The employer, within the ten day thirty-day period provided by R.S. 23:1722,22
may protest appeal the determination of the administrator by sending a protest an23
appeal to the administrator by certified or registered mail. The protest appeal shall24
fully disclose the reasons, together with facts and figures in substantiation thereof,25
for objecting to the administrator's determination. The administrator shall consider26
the protest appeal, and, if timely requested by the employer, shall grant a fair hearing27
of which a record shall be made before making a final determination on liability and28
assessment of contributions, interest and penalties due.29 ENROLLEDHB NO. 880
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§1724. Assessment1
At the expiration of the ten day thirty-day period provided for in R.S.2
23:1722, or at the expiration of such time as may be necessary for the administrator3
to consider any protest appeal filed to such notice, the administrator may proceed to4
assess the contributions, interest and penalty that he determines to be due under this5
Chapter. This assessment shall be evidenced by a writing in any form suitable to the6
administrator which states the name of the employer, the amount determined to be7
due, and the taxable period for which the assessment is due. This writing shall be8
retained as a part of the administrator's official records. The assessment may9
confirm or modify the administrator's original determination.10
* * *11
§1728. Appeals; delays; venue; burden of proof12
When an employer is dissatisfied with the final assessment, he may within13
ten thirty days of the date of the notice of assessment file a petition for judicial14
review of the assessment in either the district court in the parish of East Baton Rouge15
or in the district court of the parish wherein the employer maintains his principal16
place of business setting forth allegations of error made by the administrator. The17
review by the court shall be limited to questions of law, provided that if a hearing has18
been held the findings of fact by the administrator shall be conclusive if supported19
by substantial and competent evidence.20
No court shall have the power to enjoin or suspend the payment of21
contributions, interest, and penalty during an appeal of an assessment.22
* * *23
§1766. Rejection of application for registration24
* * *25
B. The administrator shall furnish the applicant with a written statement of26
the reason for rejecting or revoking an application. The applicant may request a27
hearing before the administrator within thirty days of receipt mailing of the written28
statement.29 ENROLLEDHB NO. 880
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§1767. Terms of registration; renewal; revocation1
* * *2
D. A PEO shall have a right to an administrative hearing before an objective3
party prior to the cancellation or nonrenewal of its registration. The administrator4
shall furnish the applicant with a written statement of the reason for revoking a5
registration or rejecting an application. The applicant may request a hearing before6
the administrator within thirty days of receipt mailing of the written statement.7
SPEAKER OF THE HOUSE OF REPRESENTATI VES
PRESIDENT OF THE SENATE
GOVERNOR OF THE STATE OF LOUISIANA
APPROVED: