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Subchapter 001: GENERAL BENEFITS
§ 1301. Definitions
As used in this chapter:
(1) “Benefits” and “compensation” mean the money payments payable to an individual, as
provided in this chapter, with respect to the individual’s unemployment.
(2) “Commissioner” means the Commissioner of Labor or the Commissioner’s authorized representative.
(3) “Contributions” means the money payments to the State Unemployment Compensation Trust
Fund required by this chapter.
(4) “Employing unit” means any individual or type of organization, including any partnership,
association, labor organization as defined in the National Labor Relations Act, 29 U.S.C. § 152(5), trust, estate, joint stock company, insurance company, or corporation, whether domestic
or foreign, or the receiver, trustee in bankruptcy, trustee, or successor thereof,
or the legal representative of a deceased person, any federal, state, or local governmental
entity, which has had 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 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 chapter.
(5) “Employer” includes:
(A) Any employing unit that in any calendar quarter in either the current or preceding
calendar year paid for service in employment, as defined pursuant to subdivision (6)
of this section, wages of $1,500.00 or more, or for some portion of a day in each
of 20 different calendar weeks, whether or not the weeks were consecutive, in either
the current or the preceding calendar year, had in employment at least one individual
(irrespective of whether the same individual was in employment in each such day).
When an employing unit described in either this subdivision (A) or subdivision (B)
of this subdivision (5) becomes an employer within any calendar year, it shall be
subject to this chapter for the whole of the calendar year.
(B)(i) Any employing unit for which service in employment for a religious, charitable, educational,
or other organization as defined in subdivision (6)(A)(ix) of this section is performed,
except as provided in subdivision (C) of this subdivision (5).
(ii) Any employing unit for which service in employment for the State and any of its instrumentalities,
for a hospital or an institution of higher education as defined in subdivision (6)(A)(x)(I)
of this section is performed, except as provided in subdivision (5)(C) of this section.
(iii) Any employing unit for which service in employment for the State or any political
subdivision as defined in subdivision (6)(A)(x)(II) of this section is performed,
except as provided in subdivision (5)(C) of this section.
(iv) Any employing unit for which agricultural labor as described in subdivision (6)(A)(vii)(I)
of this section is performed.
(v) Any employing unit for which domestic service in employment as described in subdivision
(6)(A)(viii) is performed.
(C) An employing unit as described in subdivisions (5)(A) and (B) of this section except:
(i) In determining whether or not an employing unit for which service other than domestic
service is also performed is an employer under this subdivision (5), the wages earned
or the employment of an employee performing domestic service as described in subdivision
(5)(B)(v) of this section shall not be taken into account unless the total cash remuneration
paid in any calendar quarter for domestic services is $1,000.00 or more.
(ii) In determining whether or not an employing unit for which service other than agricultural
labor is also performed is an employer under this subdivision (5), the wages earned
or the employment of an employee performing service in agricultural labor shall not
be taken into account unless the agricultural labor is in accordance with subdivision
(6)(A)(vii)(I) of this section. If an employing unit is determined an employer of
agricultural labor, the employing unit shall be determined an employer for purposes
of subdivision (5)(A) of this section.
(D) Any individual or employing unit that acquired the organization, trade, or business
of another that at the time of the acquisition was an employer subject to this chapter.
(E)(i) Any employing unit that filed with and had approved by the Commissioner, on the proper
forms prescribed and supplied by the Commissioner, its written election to become
fully subject to this chapter for not less than two calendar years. The employing
unit, not otherwise subject to this chapter, that files with the Commissioner its
written election to become an employer subject to this chapter for not less than two
calendar years, shall, with the written approval of the election by the Commissioner,
become an employer subject to this chapter to the same extent as all other employers,
as of the date stated in the approval.
(ii) Any employing unit for which services that are excluded from the term “employment”
by subdivisions (6)(A)(ix) and (6)(C)(i) and (ii) of this section are performed may,
by election and approval, elect that all services performed by individuals in its
employ, in one or more establishments or places of business, shall be deemed to constitute
employment for all the purposes of this chapter for not less than two calendar years.
Upon the written approval of the election by the Commissioner the services shall be
deemed to constitute employment subject to this chapter from the date stated in the
approval.
(iii) Any such employing unit may cease to be subject under either subdivision (5)(E)(i)
or (ii) of this section, as of January 1, of any calendar year subsequent to the two
calendar years, only if at least 30 days prior to the first day of January it files
with the Commissioner a written notice of its intention to cancel the election. This
requirement may be waived by the Commissioner for good cause.
(F) Any employing unit that acquires a part of the organization, trade, or business of
another, which part, if a separate organization, trade, or business, would have been
an employer. Any employing unit that acquires the organization, trade, or business,
or acquires substantially all the assets of another employing unit, if the employment
record of the acquiring employing unit subsequent to such an acquisition, together
with the employment record of the acquired unit prior to the acquisition, both within
the same calendar year, would be sufficient to constitute an employing unit an “employer.”
(G) Any employing unit not an employer by reason of any other provision of this subdivision
(5) for which, within either the current or preceding calendar year, service is or
was performed with respect to which the employing unit is liable for any federal tax
against which credit may be taken for contributions required to be paid into a state
unemployment fund; or that, as a condition for approval of this chapter for full tax
credit against the tax imposed by the Federal Unemployment Tax Act, is required, pursuant
to the Act, to be an “employer” under this chapter.
(6)(A)(i) “Employment,” subject to the other provisions of this subdivision (6), means service
within the jurisdiction of this State performed by an employee, as defined in subsections
3306(i) and (o) of the Federal Unemployment Tax Act, including service in interstate
commerce, performed for wages or under any contract of hire, written or oral, expressed
or implied. Services partly within and partly outside this State may by election as
provided in subdivision (5)(E)(i) of this section be treated as if wholly within the
jurisdiction of this State. If an employing unit has elected to come under the provisions
of a similar act of a state where a part of the services of an employee are performed,
the Commissioner, upon approving the election as to the employee, may treat the services
covered by the election as having been performed wholly outside the jurisdiction of
this State.
(ii) The term “employment” includes an individual’s entire service, performed within, or
both within and outside, this State if the service is localized in this State. Service
shall be deemed to be localized within a state if:
(I) the service is performed entirely within the state; or
(II) the service is performed both within and outside the state but the service performed
outside the state is incidental to the individual’s service within the state; for
example, is temporary or transitory in nature or consists of isolated transactions.
(iii) The term “employment” includes an individual’s entire service, performed within, or
both within and outside, this State if the service is not localized in any state but
some of the service is performed in this State and:
(I) the individual’s base of operations is in this State;
(II) if there is no base of operations, then the place from which the service is directed
or controlled is in this State; or
(III) the individual’s base of operations or place from which the service is directed or
controlled is not in any state in which some part of the service is performed, but
the individual’s residence is in this State.
(iv) The term “employment” includes an individual’s service wherever performed within the
United States, the Virgin Islands, or Canada, if:
(I) the service is not covered under the unemployment compensation law of any other state,
the Virgin Islands, or Canada; and
(II) the place from which the service is directed or controlled is in this State.
(v) The term “employment” includes the service of an individual who is a citizen of the
United States, performed outside the United States in the employ of an American employer
(other than service that is deemed “employment” under the provisions of subdivisions
(6)(A)(ii), (iii), or (iv) of this section 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 the employer is an
individual who is a resident of this State; or the employer is a corporation that
is organized under the laws of this State; or 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 one other state; or
(III) none of the criteria of subdivisions (6)(A)(v)(I) and (II) of this section is 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.
(IV) An “American employer,” for purposes of this subdivision (6)(A)(v), means a person
who is:
(aa) an individual who is a resident of the United States; or
(bb) a partnership, if two-thirds or more of the partners are residents of the United States;
or
(cc) a trust, if all of the trustees are residents of the United States; or
(dd) a corporation organized under the law of the United States or of any state.
(vi) The term “employment” also includes all service performed by an officer or member
of the crew of an American vessel on or in connection with the vessel, provided that
the operating office, from which the operations of the vessel operating on navigable
waters within or within and outside the United States is ordinarily and regularly
supervised, managed, directed, and controlled, is within this State.
(vii) The term “employment” also includes all service performed by an individual in agricultural
labor as defined in subdivision (6)(C)(i)(I) of this section when:
(I) The service is performed for a person who:
(aa) during any calendar quarter in either the current or the preceding calendar year paid
remuneration in cash of $20,000.00 or more to individuals employed in agricultural
labor; or
(bb) for some portion of a day in each of 20 different calendar weeks, whether or not the
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.
(II) The service is not performed in agricultural labor if performed by an individual who
is an alien admitted to the United States to perform service in agricultural labor
pursuant to 8 U.S.C. §§ 1101(a)(15)(H) and 1184(c), provided that if 26 U.S.C. § 3306 (Federal Unemployment Tax Act, definitions) is amended to include the service in
the definition of employment in agricultural labor then the service shall be employment
in agricultural labor under this chapter.
(III) For the purposes of this subdivision (6)(A)(vii), any individual who is a member of
a crew furnished by a crew leader to perform service in agricultural labor for any
other person shall be treated as an employee of the crew leader:
(aa) if the crew leader holds a valid certificate of registration under the Migrant Seasonal
Agricultural Worker Protection Act, 29 U.S.C. § 1801 et seq.; or substantially all the members of the crew operate or maintain tractors,
mechanized harvesting or cropdusting equipment, or any other mechanized equipment,
that is provided by such crew leader; and
(bb) if the individual is not an employee of the other person within the meaning of subdivision
(6)(A) of this section.
(IV) For the purposes of this subdivision (vii), in the case of any individual who is furnished
by a crew leader to perform service in agricultural labor for any other person and
who is not treated as an employee of the crew leader under subdivision (6)(A)(vii)(III)
of this section:
(aa) the other person and not the crew leader shall be treated as the employer of the individual;
and
(bb) the other person shall be treated as having paid cash remuneration to the individual
in an amount equal to the amount of cash remuneration paid to the individual by the
crew leader (either on the crew leader’s own behalf or on behalf of the other person)
for the service in agricultural labor performed for the other person.
(V) For the purposes of this subdivision (vii), the term “crew leader” means an individual
who:
(aa) furnishes individuals to perform service in agricultural labor for any other person;
(bb) pays (either on the crew leader’s own behalf or on behalf of the other persons) the
individuals furnished by the crew leader for the service in agricultural labor performed
by them; and
(cc) has not entered into a written agreement with the other person under which the individual
is designated as an employee of the other person.
(viii) The term “employment” also includes domestic service as used in subdivision (6)(C)(ii)
of this section in a private home, a local college club, or local chapter of a college
fraternity or sorority, performed for a person who paid cash remuneration of $1,000.00
or more in any calendar quarter in the current calendar year or the preceding calendar
year to individuals employed in domestic service.
(ix) The term “employment” also includes service for any employing unit performed by an
individual in the employ of a religious, charitable, educational, or other organization
if the service is excluded from “employment” as defined in the Federal Unemployment
Tax Act solely by reason of 26 U.S.C. § 3306(c)(8) of that act.
(x)(I) The term “employment” also includes service for any employing unit that is performed
by an individual in the employ of this State or any of its instrumentalities, or in
the employ of this State and one or more other states or their instrumentalities,
for a hospital or institution of higher education located in this State, provided
that the service is excluded from “employment” as defined in the Federal Unemployment
Tax Act solely by reason of 26 U.S.C. § 3306(c)(7) and is not excluded from “employment” under subdivision (6)(C)(vii) of this section.
(II) The term “employment” also includes service for any employing unit that is performed
by an individual in the employ of this State or any political subdivision of the State
or any of its instrumentalities or any instrumentality of one or more of them; and
service performed for this State or any political subdivision of this State and one
or more other states or political subdivisions of another state or any instrumentality
of them that is wholly owned by the states or political subdivisions, provided that
the service is excluded from “employment” as defined in the Federal Unemployment Tax
Act by 26 U.S.C. § 3306(c)(7) and is not excluded from “employment” under subdivision (6)(C)(vii) of this section.
(B) Services performed by an individual for wages shall be deemed to be employment subject
to this chapter unless and until it is shown to the satisfaction of the Commissioner
that:
(i) the individual has been and will continue to be free from control or direction over
the performance of the services, both under the individual’s contract of service and
in fact;
(ii) the service is either outside the usual course of the business for which the service
is performed or the service is performed outside of all the places of business of
the enterprise for which the service is performed; and
(iii) the individual is customarily engaged in an independently established trade, occupation,
profession, or business.
(C) The term “employment” does not include:
(i)(I) Service performed by an individual in agricultural labor except as provided in subdivision
(6)(A)(vii) of this section. As used in this subdivision (6)(C), the term “agricultural
labor” means any remunerated service performed:
(aa) 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, and fur-bearing animals and wildlife;
(bb) in the employ of the owner or tenant or other operator of a farm, in connection with
the operation, management, conservation, improvement, or maintenance of the 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 the service is performed on a farm;
(cc) in connection with the production or harvesting of any commodity defined as an agricultural
commodity pursuant to the Agricultural Marketing Act, 12 U.S.C. § 1141j, 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;
(dd) 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 the operator produced more than one-half of
the commodity with respect to which the service is performed;
(ee) in the employ of a group of operators of farms, or a cooperative organization of which
the operators are members, in the performance of service described in subdivision
(dd) of this subdivision (C)(i)(I), but only if the operators produced more than one-half
of the commodity with respect to which the service is performed; or
(ff) on a farm operated for profit if the service is not in the course of the employer’s
trade or business.
(II) As used in subdivision (6)(C)(i)(I) of this section, the term “farm” includes stock;
dairy; poultry; fruit; fur-bearing animal; truck farms; plantations; ranches; nurseries;
ranges; greenhouses or other similar structures used primarily for the raising of
agricultural or horticultural commodities; and orchards.
(III) The provisions of subdivisions (dd) and (ee) of subdivision (6)(C)(i)(I) of this section
shall not be deemed to be applicable with respect to service 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.
(ii) Domestic service in a private home except as provided in subdivision (6)(A)(viii)
of this section.
(iii)(I) 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 that service is $50.00
or more and the service is performed by an individual who is regularly employed by
the employer to perform the service. For purposes of this subdivision (6)(C)(iii),
an individual shall be deemed to be regularly employed by an employer during a calendar
quarter if:
(aa) on each of 24 days during the quarter the individual performs for the employer for
some portion of the day service not in the course of the employer’s trade or business;
or
(bb) the individual was regularly employed, as defined pursuant to subdivision (aa) of
this subdivision (6)(C)(iii), by the employer in the performance of the service during
the preceding calendar quarter.
(II) The term “service not in the course of the employer’s trade or business” includes
service that does not promote or advance the trade or business of the employer. Services
performed for a corporation do not come within the exception.
(iv) Service performed by an individual in the employ of the individual’s child or spouse,
and service performed by a minor in the employ of the minor’s parent; or service by
one member of a family to another under circumstances that, under the general law,
do not give rise to the relation of employer and employee.
(v) Service performed in the employ of the U.S. government or of an instrumentality of
the United States, provided that if the U.S. Congress permits states to require that
the U.S. government or any instrumentalities of the United States make payments into
an unemployment fund under a state unemployment compensation act, then, to the extent
permitted by federal law, and from and after the date on which the permission becomes
effective, the provisions of this chapter shall be applicable to the U.S. government
or its 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 the
provisions of this chapter become applicable to the U.S. government and its instrumentalities
and, in any year, the State is not certified by the Secretary of Labor under 26 U.S.C. § 3304, then the payments required of the U.S. government or its instrumentalities with
respect to that year shall be deemed to have been erroneously collected under section
1337 of this subchapter and shall be refunded by the Commissioner from the Fund in
accordance with the provisions of section 1337.
(vi) Service performed in the employ of a governmental entity referred to in subdivision
(6)(A)(x) of this section if the service is performed by an individual in the exercise
of duties:
(aa) as an elected official;
(bb) as a member of a legislative body, or a member of the judiciary, of a state or political
subdivision;
(cc) as a member of the Vermont National Guard or Air National Guard;
(dd) as an employee serving on a temporary basis in case of fire, storm, snow, earthquake,
flood, or similar emergency; or
(ee) in a position that, pursuant to the laws of this State, is designated as a policymaking
or advisory position the performance of the duties of which ordinarily does not require
more than eight hours per week.
(vii) For the purposes of subdivisions (6)(A)(ix) and (6)(A)(x) of this section, the term
“employment” does not include service performed:
(I) in the employ of a church or convention or association of churches, or an organization
that is operated primarily for religious purposes and that is operated, supervised,
controlled, or principally supported by a church or convention or association of churches;
(II) by a duly ordained, commissioned, or licensed minister of a church in the exercise
of the individual’s ministry or by a member of a religious order in the exercise of
duties required by the order;
(III) [Repealed.]
(IV) by an individual performing rehabilitative or remunerative work in a facility operated
for the purpose of:
(aa) carrying out a program of rehabilitation for individuals whose earning capacity is
limited due to being an elder or having a disability or injury; or
(bb) providing remunerative work for individuals who because of having a disability cannot
be readily absorbed in the competitive labor market;
(V) by an individual receiving work relief or work training as part of an unemployment
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 of a state; or
(VI) by an inmate of a custodial or penal institution.
(viii) Service with respect to which unemployment compensation is payable under an unemployment
compensation system established by an act of Congress, provided that the Commissioner
is authorized and directed to enter into agreements with the proper agencies under
such an act of Congress, which agreements shall become effective 10 days after publication
in one or more newspapers of general circulation in this State, to provide reciprocal
treatment to individuals who have, after acquiring potential rights to unemployment
compensation under the act of Congress, acquired rights to benefits under this chapter.
(ix) Service performed with respect to which unemployment compensation is payable under
the Railroad Unemployment Insurance Act, 45 U.S.C. chapter 11.
(x) Service as an officer or member of a crew of an American vessel performed on or in
connection with the vessel, if the operating office, from which the operations of
the vessel operating on navigable waters within or outside the United States are ordinarily
and regularly supervised, managed, directed, and controlled, is outside this State.
(xi) Service performed on or in connection with a vessel that is not an American vessel
by an individual, if the individual performs services on and in connection with the
vessel when outside the United States. As used in this subdivision (xi) and subdivision
(6)(C)(x) of this section, “American vessel” means any vessel documented or numbered
under the laws of the United States, and includes any vessel that is neither documented
or numbered under the laws of the United States nor documented under the laws of any
foreign country, if its crew performs services 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.
(xii) Service performed by an individual in, or as an officer or member of the crew of a
vessel while it is engaged in, the catching, taking, harvesting, cultivating, or farming
of any kind of fish, shellfish, crustacea, sponges, seaweeds, or other aquatic forms
of animal and vegetable life, including service performed by any such individual as
an ordinary incident to any such activity, except:
(I) service performed in connection with the catching or taking of salmon or halibut,
for commercial purposes; and
(II) service performed on or in connection with a vessel of more than 10 net tons, determined
in the manner provided for determining the register tonnage of merchant vessels under
the laws of the United States.
(xiii) Service performed in any calendar quarter in the employ of any organization exempt
from income tax under Section 501(a) (other than an organization described in Section
401(a)) or under Section 521 of the federal Internal Revenue Code, if the remuneration for the service is less than $50.00.
(xiv) Service performed in the employ of a school, college, or university, if the service
is performed by a student who is enrolled and is regularly attending classes at the
school, college, or university, or by the spouse of such a student, if the spouse
is advised at the time the spouse commences to perform the service that the employment
of the spouse to perform the service is provided under a program to provide financial
assistance to the student by the school, college, or university, and the employment
will not be covered by any program of unemployment insurance.
(xv) Service performed by an individual under 22 years of age 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 the service is an integral part of the program and the institution
has so certified to the employer. This subdivision (xv) shall not apply to service
performed in a program established for or on behalf of an employer or group of employers.
(xvi) Service performed in the employ of a hospital, if the service is performed by a patient
of the hospital, as defined in this section.
(xvii) Service performed by an individual for a person as an insurance agent or as an insurance
solicitor, if all the service performed by the individual for the person is performed
for remuneration solely by way of commission.
(xviii) Service performed by an individual for a person as a salesman, agent, or solicitor
if the state law requires the individual to be registered or licensed to engage in
the performance of the service and if the individual in the performance of the service
is an independent contractor under common law rules and if the individual performs
all such service for remuneration solely by way of commission.
(xix) Service performed by an individual engaged in the harvesting of timber or in the transportation
of timber from the place where harvested to market, or service performed by an individual
engaged as a stone artisan, including sculpting, etching, or carving quarried stone,
when:
(I) the individual has been and will continue to be free from control or direction over
the performance of the services, both under the individual’s contract of service and
in fact;
(II) the individual is customarily engaged in an independently established trade, occupation,
profession, or business; and
(III) the individual furnishes substantially all of the equipment, tools, and supplies necessary
in carrying out the individual’s contractual obligations to the individual’s clients.
(xx) Service performed by a full-time student as defined in subdivision (III) of this subdivision
(6)(C)(xx) in the employ of an organized camp if:
(I) the camp:
(aa) did not operate for more than seven months in the calendar year and did not operate
for more than seven months in the preceding calendar year; or
(bb) had average gross receipts for any six months in the preceding calendar year that
were not more than 33 1/3 percent of its average gross receipts for the other six
months in the preceding calendar year; and
(II) the full-time student performed services in the employ of the camp for less than 13
calendar weeks in the calendar year, provided that if the individual does not enroll
in the immediately succeeding academic year or term, then the services of the individual
as defined in this subsection shall be deemed to be employment for all purposes under
this chapter.
(III) As used in this subdivision (6)(C)(xx), an individual shall be treated as a full-time
student for any period:
(aa) during which the individual is enrolled as a full-time student at an educational institution;
or
(bb) that is between academic years or terms if the individual was enrolled as a full-time
student at an educational institution for the immediately preceding year or term and
there is a reasonable assurance that the individual will be so enrolled for the immediately
succeeding academic year or term.
(xxi) Service performed by a direct seller if the individual is in compliance with all the
following:
(I) The individual is engaged in the trade or business of selling or soliciting the sale
of consumer products, including services or other intangibles, in the home or a location
other than in a permanent retail establishment, including whether the sale or solicitation
of a sale is to any buyer on a buy-sell basis, a deposit-commission basis, or any
similar basis for resale by the buyer or any other person.
(II) Substantially all the remuneration, whether or not received in cash, for the performance
of the services described in subdivision (I) of this subdivision (6)(C)(xxi) 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 individual are performed pursuant to a written contract
between the individual and the person for whom the services are performed, and the
contract provides that the individual will not be treated as an employee for federal
and state tax purposes.
(D) Notwithstanding any other provisions of this subdivision (6), service 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
fund or which as a condition for full tax credit against the tax imposed by the Federal
Unemployment Tax Act is required to be covered under this chapter.
(7) “Employment office” means a free public employment office, or branch thereof, of the
Vermont Employment Service Division, or an office maintained by another state as a
part of a state-controlled system of free public employment offices, or by a federal
agency or any agency of a foreign government charged with the administration of an
unemployment compensation program or free public employment office, or such other
agencies as the U.S. Secretary of Labor may approve.
(8) “Fund” means the Unemployment Compensation Trust Fund established by this chapter,
to which all contributions required and from which all benefits provided under this
chapter shall be paid.
(9) “Total” and “partial” unemployment shall be determined as follows:
(A) An individual shall be deemed “totally unemployed” in any week during which the individual
performs no services and with respect to which no wages are earned by the individual.
(B) An individual shall be deemed “partially unemployed” in any week of less than full-time
work if the wages earned by the individual with respect to the week are less than
the weekly benefit amount the individual would be entitled to receive if totally unemployed
and eligible.
(C) As used in this subdivision (9), “wages” includes only that part of remuneration in
any one week rounded to the next higher dollar that is in excess of the amount specified
in section 1338a of this subchapter.
(D) An individual’s week of unemployment shall be deemed to commence only after the individual’s
registration at an employment office, except as the Vermont Employment Security Board
may by rule otherwise prescribe.
(10) “State” means the states of the United States of America, the Commonwealth of Puerto
Rico, the District of Columbia, and the Virgin Islands.
(11) “Unemployment Compensation Administration Fund” means the Unemployment Compensation
Administration Fund established by this chapter, from which administrative expenses
under this chapter shall be paid.
(12) “Wages” means all remuneration paid for services rendered by an individual, including
commissions and bonuses and the cash value of all remuneration paid in any medium
other than cash. Gratuities customarily received by an individual in the course of
the individual’s employment from persons other than the individual’s employer and
reported by the individual to the individual’s employer shall be treated as wages
paid by the individual’s employer. The reasonable cash value of remuneration paid
in any medium other than cash shall be estimated and determined in accordance with
rules adopted by the Board. The term “wages” does not include:
(A) The amount of any payment (including any amount paid by an employer 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 the employee’s dependents under a plan or system established
by an employer that makes provision for the employer’s employees generally (or for
the employer’s employees generally and their dependents) or for a class or classes
of the employer’s employees (or for a class or classes of the employer’s employees
and their dependents), on account of:
(i) sickness or accident disability (but, in the case of payments made directly to an
employee or any of the employee’s dependents, this subdivision (i) shall exclude from
the term “wages” only payments that are received under a workers’ compensation law);
(ii) medical or hospitalization expenses in connection with sickness or accident disability;
or
(iii) death.
(B) 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 the employer.
(C) Any payment made to, or on behalf of, an employee or the employee’s beneficiary:
(i) from or to a trust described in 26 U.S.C. § 401(a) that is exempt from tax under 26 U.S.C. § 501(a) at the time of the payment unless the payment is made to an employee of the trust
as remuneration for services rendered as the employee and not as a beneficiary of
the trust; or
(ii) under or to an annuity plan that, at the time of the payment, is a plan described
in 26 U.S.C. § 403(a).
(D) The payment by an employer (without deduction from the remuneration of the employee)
of the tax imposed upon an employee under 26 U.S.C. § 3101.
(E) Any amounts received from the federal government by members of the National Guard
and reserve components of the U.S. Armed Forces as drill pay, including longevity
pay and allowances.
(F) If the definition of “wages” in 26 U.S.C. § 3306, Federal Unemployment Tax Act, is amended to no longer exclude any or all of the
payments or amounts enumerated in subdivisions (A) through (E) of this subdivision
(12), then payments or amounts no longer excluded from the federal definition shall
be included in the definition of “wages” under this this subdivision (12), effective
on the effective date of the amendment to the Federal Unemployment Tax Act.
(G) Any foster care payments excluded from the definition of gross income under 26 U.S.C. § 131.
(13) “Week” means a period or periods of seven consecutive days, as the Board may by rule
prescribe.
(14) “Calendar quarter” means a period of three consecutive calendar months ending on March
31, June 30, September 30, or December 31, or the equivalent of such a period as the
Board may by rule prescribe.
(15) An individual’s “weekly benefit amount” with respect to any week means the amount
of benefits the individual would be entitled to receive for the week if totally unemployed
and eligible for benefits for the week.
(16)(A) “Benefit year,” with respect to any individual, means the one- year period beginning
with the first day of the week with respect to which the individual first files a
valid claim for benefits in accordance with section 1346 of this subchapter, and thereafter
the one-year period beginning with the first day of the first week with respect to
which the individual next files such a claim for benefits after the termination of
the individual’s last preceding benefit year.
(B) [Repealed.]
(17) “Base period” means:
(A) The period made up of the first four of the most recently completed five calendar
quarters immediately preceding the first day of a claimant’s benefit year.
(B) For any individual who fails to meet the eligibility requirements of section 1338
of this subchapter in the base period set forth pursuant to subdivision (A) of this
subdivision (17), the Commissioner shall make a redetermination of entitlement based
upon a base period that consists of the last four completed calendar quarters immediately
preceding the first day of the claimant’s benefit year.
(C) For any individual who fails to qualify for benefits under subdivisions (A) and (B)
of this subdivision (17), the Commissioner shall make a redetermination of entitlement
based upon a base period that consists of the last three completed calendar quarters
and all wages paid prior to the effective date of the claimant’s initial claim in
the calendar quarter in which the initial claim was filed.
(D) All wages that fall within the “base period” of valid claims under this section shall
not be available for reuse in qualifying for any subsequent benefit years under section
1338 or 1318 of this subchapter.
(18)(A) “Institution of higher education” means an educational institution that:
(i) admits as regular students only individuals having a certificate of graduation from
a high school, or the recognized equivalent of such a certificate;
(ii) is legally authorized in this State to provide a program of education beyond high
school;
(iii) 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 post-graduate or post-doctoral studies, or a program of training to prepare students
for gainful employment in a recognized occupation; and
(iv) is a public or other nonprofit institution.
(B) Notwithstanding any provision of this subdivision (18) to the contrary, all colleges
and universities in this State are institutions of higher education for purposes of
this chapter.
(19) “Hospital” means an institution that has been licensed, certified, or approved by
the Department of Health as a hospital, or an institution that is operated by the
State of Vermont or any of its instrumentalities as a hospital.
(20) “Rate year” means the period beginning on July 1 of a year and ending on June 30 of
the following year.
(21) “Bona fide employer” means the federal government, state governments and political
subdivisions of state governments, railroads, tax exempt nonprofit organizations,
established agricultural employers, employers liable under the unemployment compensation
laws of this State, and an employer who has been assigned an employer identification
number by the U.S. Internal Revenue Service.
(22) “Rounding” means, notwithstanding any other provisions of this chapter to the contrary,
any amount of unemployment compensation payable to any individual for any week, if
not an even dollar amount, shall be rounded to the next lower full dollar amount.
(23) “Valid claim” means a claim for benefits filed by an individual who, at the time of
filing the claim, has had sufficient wages in employment with an employer or employers
to qualify for benefits pursuant to section 1338 of this title. The filing of a valid claim is a prerequisite to the making of a determination of
an individual’s eligibility for benefits under section 1343 of this title and a determination of an individual’s disqualification for benefits under section 1344 of this title.
(24) “Self-employment”:
(A) Except as provided in subdivision (B) of this subdivision (24), an individual shall
be deemed “self-employed” or “engaged in self-employment” in any week during which
the individual is engaged, not in the employ of another, in the formation, development,
or operation of a trade, business, enterprise, profession, or any other activity that
the individual has undertaken for the purpose of producing income and that is in the
form of a sole proprietorship, partnership, joint venture, or other similar entity.
(B) An individual who is able to work and available for full-time work shall not be deemed
to be self-employed or engaged in self-employment solely by reason of continued participation
without substantial change during a period of unemployment in any activity undertaken
while customarily employed by an employer in full-time work (whether or not such work
constituted employment) and continued subsequent to separation from such work when
the activity is not engaged in as a primary source of livelihood. Earnings from such
a sideline activity shall not constitute wages or disqualifying income for unemployment
purposes.
(25) “Child” includes an individual’s biological child, foster child, adoptive child, stepchild,
a child for whom the individual is listed as a parent on the child’s birth certificate,
a legal ward of the individual, a child of the individual’s spouse, or a child that
the individual has day-to-day responsibilities to care for and financially support.
(26) “Spouse” includes an individual’s domestic partner or civil union partner. As used
in this subdivision, “domestic partner” means another individual with whom an individual
has an enduring domestic relationship of a spousal nature, provided that the individual
and the individual’s domestic partner:
(A) have shared a residence for at least six months;
(B) are at least 18 years of age;
(C) are not married to, in a civil union with, or considered the domestic partner of another
individual;
(D) are not related by blood closer than would bar marriage under State law; and
(E) have agreed between themselves to be responsible for each other’s welfare. (Amended 1959, No. 10, eff. Feb. 27, 1959; 1959, No. 33, eff. March 11, 1959; 1959, No. 107, § 1, eff. April 10, 1959; 1959, No. 120, eff. Jan. 1, 1960; 1959, No. 262, § 35, eff. June 11, 1959; 1959, No. 329 (Adj. Sess.), § 22, eff. March 1, 1961; 1961, No. 210, §§ 15, 16, eff. July 11, 1961; 1963, No. 84,§§ 1, 2; 1963, No. 122, eff. June 3, 1963; 1965, No. 64, eff. Jan. 1, 1966; 1967, No. 43, § 1, eff. March 23, 1967; 1967, No. 184, eff. April 17, 1967; 1967, No. 247 (Adj. Sess.), § 1, eff. Feb. 20, 1968; 1971, No. 77, § 1, eff. Dec. 31, 1971; 1971, No. 184 (Adj. Sess.), § 7, eff. March 29, 1972; 1973, No. 74, § 1, eff. April 14, 1973; 1975, No. 40; 1977, No. 64, §§ 1-7, 21, 22; 1979, No. 53; 1979, No. 120 (Adj. Sess.), §§ 1-5, eff. April 14, 1980; 1981, No. 66, § 5(b), eff. May 1, 1981; 1981, No. 86, § 8, eff. May 10, 1981; 1983, No. 16, §§ 1, 2, 10, 12, eff. April 4, 1983; 1985, No. 50, §§ 1-3; 1985, No. 146 (Adj. Sess.), § 3; 1987, No. 31, eff. May 8, 1987; 1987, No. 66; 1987, No. 227 (Adj. Sess.) §§ 1, 3, eff. May 26, 1988; 1991, 1987, No. 82, § 1; 1991 No. 183 (Adj. Sess.), § 1; 1993, No. 227 (Adj. Sess.), § 17; 1997, No. 101 (Adj. Sess.), §§ 1, 6; 2003, No. 131 (Adj. Sess.), § 2; 2005, No. 103 (Adj. Sess.), § 3, eff. April 5, 2006; 2005, No. 136 (Adj. Sess.), § 1; 2007, No. 104 (Adj. Sess.), § 1; 2013, No. 96 (Adj. Sess.), § 139; 2023, No. 53, § 124, eff. June 8, 2023; 2023, No. 76, § 39, eff. July 1, 2023; 2023, No. 76, § 40, eff. July 1, 2024; 2023, No. 85 (Adj. Sess.), § 170, eff. July 1, 2024; 2023, No. 184 (Adj. Sess.), § 5, eff. July 1, 2024; 2025, No. 18, § 33, eff. May 13, 2025.)
§ 1301a. Department of Labor; composition
The Department of Labor, created by 3 V.S.A. § 212, shall consist of a Commissioner of Labor, the Vermont Employment Security Board,
the Vermont Workforce Development Division, the Economic and Labor Market Information
Division, the Workforce Development Council, the Unemployment Insurance and Wages
Division, and the Workers’ Compensation and Safety Division. The Chair of the Employment
Security Board shall be the Commissioner of Labor ex officio. The Deputy Commissioner
of Labor or a designee chosen by the Commissioner may serve as Chair in the absence
of the Commissioner as the Commissioner’s designee. (Added 1959, No. 329 (Adj. Sess.) § 20, eff. March 1, 1961; amended 1981, No. 66, § 2, eff. May 1, 1981; 2005, No. 212 (Adj. Sess.), § 13, eff. May 29, 2006; 2011, No. 162 (Adj. Sess.), § E.401.11.)
§ 1301b. Repealed. 2001, No. 142, § 302c.
§ 1302. Vermont Employment Security Board; composition; duties
(a)(1) There is created a board of three members to be known as the Vermont Employment Security
Board.
(2)(A) One member, who will serve as the chair of the Board, shall be the Commissioner of
Labor, ex officio.
(B) The two other members of the Board shall be appointed by the Governor, with the advice
and consent of the Senate. The term of each appointed member shall be six years.
(C) Biennially, in the month of February, with the advice and consent of the Senate, the
Governor shall appoint a person as a member of the Board for the term of six years,
whose term of office shall commence March 1 of the year in which the appointment is
made.
(D) Any appointment to fill a vacancy shall be for the unexpired term.
(E) In case of a vacancy by resignation, the member resigning shall continue in office
until that member’s successor is appointed.
(3) Not more than two members of the Board shall be members of the same political party.
(4) The Governor may at any time remove an appointed member of the Board for gross inefficiency,
neglect of duty, malfeasance, misfeasance, or nonfeasance in office.
(b)(1) The Board may hear and decide all matters appealed to it under this chapter. It shall
determine its own methods of procedure.
(2) The Board may, with the approval of the Governor, adopt, amend, suspend, or rescind
such rules as it considers necessary and consistent with this chapter. The rules of
the Board shall have the force and effect of law after public hearing thereon of which
reasonable notice has been given, and after filing with the Secretary of State, and
publication in such manner as the Board shall prescribe.
(3) The Board may administer oaths, take depositions, certify to official acts, and subpoena
witnesses and compel the production of books, papers, correspondence, memoranda, and
other records necessary and material in the discharge of its duties imposed by this
chapter. (Amended 1959, No. 329 (Adj. Sess.), § 22, eff. March 1, 1961; 1961, No. 210, § 1, eff. July 11, 1961; 2023, No. 53, § 134, eff. June 8, 2023; 2023, No. 85 (Adj. Sess.), § 171, eff. July 1, 2024.)
§ 1303. Compensation
The Commissioner of Labor shall be paid an annual salary, as provided by 32 V.S.A. § 1003, and necessary expenses incurred in the performance of the Commissioner’s duties.
Each other member of the Board shall be paid a per diem fixed by the Emergency Board
while engaged in work connected with his or her official duties and shall be entitled
to his or her actual and necessary expenses when away from home in discharge of such
duties. All vouchers for salary, per diem, or expenses of a member shall be approved
by the other members of the Board before payment thereof. (Amended 1959, No. 329 (Adj. Sess.), § 22, eff. March 1, 1961; 1961, No. 210, § 2, eff. July 11, 1961; 1981, No. 66, § 5(b), eff. May 1, 1981; 2005, No. 103 (Adj. Sess.), § 3, eff. April 5, 2006.)
§ 1304. Quorum
Any two members of the Board shall constitute a quorum to transact business. No vacancy
shall impair the right of the remaining members to exercise all of the powers of the
Board, as long as a majority remain. (Amended 1959, No. 329 (Adj. Sess.), § 22, eff. March 1, 1961; 1961, No. 210, § 3, eff. July 11, 1961.)
§ 1305. Divisions; Comprehensive Employment and Training Office
There is hereby established within the Department of Labor, the Vermont Employment
Service Division, the Unemployment Compensation Division, and the Comprehensive Employment
and Training Office. Each division and office shall be responsible for the discharge
of its distinctive function. Each division and office shall be so far as is practicable
a separate administrative unit with respect to personnel, budget, and duties. (Amended 1959, No. 329 (Adj. Sess.), § 21, eff. March 1, 1961; 1981, No. 66, § 3, eff. May 1, 1981; 2005, No. 103 (Adj. Sess.), § 3, eff. April 5, 2006.)
§ 1305a. Comprehensive Employment and Training Office
(a) With the approval of the Governor, the Commissioner shall appoint a Director of the
Comprehensive Employment and Training Office and fix his or her salary. The Director
shall serve at the pleasure of the Commissioner. The Commissioner may appoint such
other personnel and may organize the Office as he or she deems necessary to carry
out its functions and duties, and may delegate such powers and authority to the Director
of the Office as he or she deems necessary for its efficient administration.
(b) The Comprehensive Employment and Training Office shall provide job training and employment
opportunities for economically disadvantaged, unemployed, and underemployed persons
through a system of federal and State programs, and is hereby authorized to serve
on behalf of the Governor, through the Commissioner of Labor, as the prime sponsor
in accordance with the Comprehensive Employment and Training Act (P.L. 95-524); provided
further, that such responsibilities and authorization shall continue only so long
as the federal government provides funds to execute such responsibilities. (Added 1981, No. 66, § 4, eff. May 1, 1981; amended 2005, No. 103 (Adj. Sess.), § 3, eff. April 5, 2006.)
§ 1305b. Repealed. 1995, No. 45, § 4.
§ 1307. Commissioner of Labor, duties and powers of
The Commissioner of Labor shall administer this chapter. The Commissioner may employ
such persons, make such expenditures, require such reports, make such investigations,
and take such other action as he or she considers necessary or suitable to that end.
In the discharge of his or her duties imposed by this chapter, the Commissioner may
administer oaths, take depositions, certify to official acts, and subpoena witnesses
and compel the production of books, papers, correspondence, memoranda, and other records
necessary and material to the administration of this chapter. (Amended 1959, No. 329 (Adj. Sess.), § 22, eff. March 1, 1961; 1961, No. 210, § 4, eff. July 11, 1961; 1981, No. 66, § 5(b), eff. May 1, 1981; 2005, No. 103 (Adj. Sess.), § 3, eff. April 5, 2006.)
§ 1308. Organization
The Commissioner shall determine the method of procedure in accordance with the provisions
of this chapter. Notwithstanding any requirement in this chapter that the Commissioner
mail notices and determinations, the Commissioner may provide claimants and employers
with the option to authorize communications from the Commissioner to be delivered
electronically. (Amended 1959, No. 329 (Adj. Sess.), § 22, eff. March 1, 1961; 1961, No. 210, § 15, eff. July 11, 1961; 2025, No. 40, § 9, eff. July 1, 2025.)
§ 1309. Reports; solvency of Trust Fund
(a)(1) On or before January 31 of each year, the Commissioner shall submit to the Governor
and the Chairs of the Senate Committees on Economic Development, Housing and General
Affairs and on Finance and the House Committees on Commerce and Economic Development
and on Ways and Means a report covering the administration and operation of this chapter
during the preceding calendar year.
(2) The report shall include:
(A) a balance sheet of the monies in the Fund and data as to probable reserve requirements
based upon accepted actuarial principles, with respect to business activity, and other
relevant factors for the longest available period;
(B) recommendations for amendments of this chapter as the Board considers proper; and
(C) an accounting of the amount of supplemental benefits paid to claimants pursuant to
subdivision 1338(e)(2) of this chapter.
(b) Whenever the Commissioner believes that the solvency of the Fund is in danger or the
balance of the Fund drops below $180,000,000.00, the Commissioner shall promptly inform
the Governor and the Chairs of the Senate Committees on Economic Development, Housing
and General Affairs and on Finance and the House Committees on Commerce and Economic
Development and on Ways and Means and make recommendations for preserving an adequate
level in the Trust Fund. The provisions of 2 V.S.A. § 20(d) (expiration of required reports) shall not apply to the report to be made under this
section. (Amended 1959, No. 329 (Adj. Sess.), § 22, eff. March 1, 1961; 1961, No. 210, § 5, eff. July 11, 1961; 2009, No. 124 (Adj. Sess.), § 1; 2013, No. 142 (Adj. Sess.), § 36; 2021, No. 51, § 13, eff. June 1, 2021.)
§ 1310. Repealed. 1959, No. 329 (Adj. Sess.), § 59, eff. March 1, 1961.
§ 1311. Employees
Subject to other provisions of this chapter, the Commissioner is authorized to appoint
a Deputy Commissioner and such officers, accountants, attorneys, and employees as
may be necessary in the performance of the Commissioner’s duties. The Commissioner
may delegate to any person appointed pursuant to the provisions of this section any
power and authority the Commissioner deems reasonable and proper for the effective
administration of this chapter, and may, in the Commissioner’s discretion, bond any
person handling monies or signing checks pursuant to the provisions of this chapter. (Amended 1959, No. 329 (Adj. Sess.), § 22, eff. March 1, 1961; 1961, No. 210, § 15, eff. July 11, 1961; 1971, No. 191 (Adj. Sess.), § 12; 1985, No. 225 (Adj. Sess.), § 16; 2023, No. 85 (Adj. Sess.), § 172, eff. July 1, 2024.)
§ 1311a. Professional training for employees
The Commissioner, using grant funds made available by the United States, may, to the
extent permitted and subject to the approval of the Governor, provide professional
training for the Department’s employees by contracting with educational institutions
for short courses or other forms of intensive instruction. (Added 1959, No. 137, eff. April 22, 1959; amended 1959, No. 329 (Adj. Sess.), § 22, eff. March 1, 1961; 1961, No. 210, § 15, eff. July 11, 1961; 1981, No. 66, § 5(b), eff. May 1, 1981; 2021, No. 20, § 219.)
§ 1312. Publication of rules and reports
The Commissioner shall make available for distribution to the public the text of this
chapter, the Board’s rules, the Commissioner’s annual reports to the Governor, and
any other material the Commissioner considers relevant and suitable. The Commissioner
shall furnish the materials made available to the public pursuant to this section
to any person upon request. (Amended 1959, No. 329 (Adj. Sess.), § 22, eff. March 1, 1961; 1961, No. 210, § 6, eff. July 11, 1961; 2023, No. 85 (Adj. Sess.), § 173, eff. July 1, 2024.)
§ 1313. Repealed. 2003, No. 122 (Adj. Sess.), § 294(o).
§ 1314. Reports and records; separation information; determination of eligibility; failure
to report employment information; disclosure of information to other State agencies
to investigate misclassification or miscoding
(a) The Commissioner may require any employing unit to keep true and accurate records
and make reports covering persons employed by it respecting employment, wages, hours,
unemployment, and related matters as the Commissioner deems reasonably necessary for
the effective administration of this chapter. The records shall be open to inspection
and subject to being copied by the Commissioner or the Commissioner’s authorized representatives
at any reasonable time and as often as may be necessary.
(b) On request of the Commissioner, an employing unit shall report, within 10 days after
the mailing or personal delivery of the request, employment and separation information
with respect to a claimant and the wages paid to a claimant.
(c) If an employing unit fails to comply adequately with the provisions of subsection
(b) of this section and section 1314a of this subchapter, the Commissioner shall determine
the benefit rights of a claimant upon the available information. Prompt notice in
writing of the determination shall be given to the employing unit. The employing unit
may request or authorize the Commissioner to provide notice of the determination electronically.
The determination shall be final with respect to a noncomplying employer as to any
charges against its experience-rating record for benefits paid to the claimant before
the week following the receipt of the employing unit’s reply. The employing unit’s
experience rating record shall not be relieved of these charges, notwithstanding any
other provision of this chapter, unless the Commissioner determines that failure to
comply was due to unavoidable accident or mistake.
(d)(1) Except as otherwise provided in this chapter, information obtained from any employing
unit or individual in the administration of this chapter and determinations as to
the benefit rights of any individual shall be held confidential and shall not be disclosed
or open to public inspection in any manner revealing the individual’s or employing
unit’s identity, nor be admissible in evidence in any action or proceeding other than
one arising out of this chapter, or to support or facilitate an investigation by a
public agency identified in subdivision (e)(1) of this section.
(2) An individual or an individual’s duly authorized agent may be supplied with information
from those records to the extent necessary for the proper presentation of the individual’s
claims for benefits or to inform the individual of the individual’s existing or prospective
rights to benefits. An employing unit may be furnished with information, as the Commissioner
deems proper, to enable it to fully discharge its obligations and safeguard its rights
under this chapter.
(3) Automatic data processing services and systems and programming services within the
Department of Labor shall be the responsibility and under the direct control of the
Commissioner in the administration of this chapter and chapter 15 of this title.
(4) Notwithstanding the provisions in subdivision (3) of this subsection, the Department
of Labor shall, at the request of the Agency of Administration, perform services for
other departments and agencies of the State that are within the capacity of its data
processing equipment and personnel, provided that the services can be accomplished
without undue interference with the designated work of the Department of Labor.
(e)(1) Subject to restrictions adopted by the Board by rule, information from unemployment
insurance records may be made available to any public officer or public agency of
this or any other state or the federal government dealing with the administration
or regulation of relief, public assistance, unemployment compensation, a system of
public employment offices, wages and hours of employment, workers’ compensation, misclassification
or miscoding of workers, occupational safety and health, or a public works program
for purposes appropriate to the necessary operation of those offices or agencies.
The Commissioner may also make information available to colleges, universities, and
public agencies of the State for use in connection with research projects of a public
service nature and to the Vermont Economic Progress Council with regard to the administration
of 32 V.S.A. chapter 105, subchapter 2, but no person associated with those institutions or agencies may disclose
that information in any manner that would reveal the identity of any individual or
employing unit from or concerning whom the information was obtained by the Commissioner.
(A) The Department of Labor shall participate in the income and eligibility verification
procedures under the Deficit Reduction Act of 1984, Pub. L. No. 98-369, which provides
for the exchange of information among state agencies administering programs funded
with federal monies provided under the Temporary Assistance for Needy Families (TANF)
block grant, Medicaid, Supplemental Nutrition Assistance Program (SNAP), SSI, Unemployment
Compensation, and any other state program under a plan approved under Title I, X,
XIV, or XVI of the Social Security Act.
(B) The Department of Labor is designated as the Vermont agency for the collection of
wage records on workers covered under this chapter, as required by the Deficit Reduction
Act of 1984, Pub. L. No. 98-369.
(2)(A)(i) The Department of Labor shall disclose, upon request, to officers or employees of
any state or local child support enforcement agency any wage information or other
information material to the location of an individual, the individual’s assets, or
the individual’s place of employment or other source of income contained in the Department’s
unemployment compensation claim records with respect to an identified individual that
is contained in those records.
(ii) The term “state or local child support enforcement agency” means any agency of a state
or political subdivision of a state operating pursuant to a plan described in 42 U.S.C. § 654 that has been approved by the Secretary of Health and Human Services under 42 U.S.C.
chapter 7, subchapter IV, part D.
(B) The requesting agency shall agree that information provided under this subsection
is to be used only for the following purposes:
(i) establishing and collecting child support obligations from, and locating, individuals
owing such obligations that are being enforced pursuant to a plan described in 42 U.S.C. § 654 that has been approved by the Secretary of Health and Human Services under 42 U.S.C.
chapter 7, subchapter IV, part D; and
(ii) establishing parentage and expediting procedures relating to establishing parentage
pursuant to 42 U.S.C. § 666.
(3)(A) The Department of Labor shall disclose, upon request, to officers and employees of
the U.S. Department of Agriculture and any state agency, with respect to an identified
individual, any of the following information that is contained in its records:
(i) wage information;
(ii) whether the individual is receiving, has received, or has made application for unemployment
compensation and the amount of any compensation being received or to be received by
the individual;
(iii) the current or most recent home address of the individual; and
(iv) whether the individual has refused an offer of employment and, if so, a description
of the employment offered and the associated terms, conditions, and rate of pay.
(B) As used in this subdivision (e)(3), “state agency” means any agency described in 7 U.S.C. § 2012(s) that administers the Supplemental Nutrition Assistance Program.
(C) The requesting agency shall agree that the information shall be used only for purposes
of determining the applicant’s eligibility for benefits, or the amount of benefits,
under the Supplemental Nutrition Assistance Program established under 7 U.S.C. chapter
51.
(D) The information shall not be released unless the requesting agency agrees to reimburse
the costs involved for furnishing the information.
(E) In addition to the requirements of this subdivision, all other requirements with respect
to confidentiality of information obtained in the administration of this chapter and
the sanctions imposed for improper disclosure of information obtained in the administration
of this chapter shall apply to the use of the information by the officers and employees
of any state agency or the U.S. Department of Agriculture.
(4)(A)(i) The Department of Labor shall disclose, upon request, to officers or employees of
any state or local agency charged with administering TANF, any wage information with
respect to an identified individual that is contained in its records, which is necessary
for the purpose of determining an individual’s eligibility for aid or services or
the amount of the aid or services to needy families with children.
(ii) As used in this subdivision (e)(4), “state or local agency charged with administering
TANF” means any such agency administering a plan approved under 42 U.S.C. chapter
7, subchapter IV, part A.
(B) The information requested shall not be released unless the requesting TANF agency
agrees to reimburse the Department of Labor for the costs involved in furnishing the
information.
(C) The requesting agency shall agree that the requested information shall be used only
for the purposes authorized in subdivision (e)(4)(A) of this section.
(5)(A) The Department of Labor shall disclose to officers or employees of the Federal Parent
Locator Service (FPLS) or National New Hire Directory any employment, wage, and unemployment
compensation claim information contained in its claim records that may be useful in
locating an absent parent or the parent’s employer solely for purposes of administering
the child support enforcement provisions of 42 U.S.C. chapter 7, subchapter IV.
(B) The requesting Federal Parent Locator Service shall agree that the requested information
shall be used only for purposes authorized in 42 U.S.C. § 503(h)(1).
(C) The information requested shall not be released unless the requesting Federal Parent
Locator Service agrees to reimburse the Department of Labor for the costs involved
in furnishing the requested information.
(6)(A) The Department of Labor shall disclose, upon request, to officers or employees of
the Department of Housing and Urban Development (HUD) and to representatives of a
public housing agency any wage information and unemployment compensation benefit information
that is contained in its records with respect to an identified individual applying
for or participating in any housing assistance program administered by HUD that is
necessary for the purposes of determining the individual’s eligibility for benefits
or the amount of benefits under a HUD housing assistance program. As used in this
subdivision (e)(6), the term “public housing agency” means any agency described in
42 U.S.C. § 1437a(b)(6) that is authorized to engage in or assist in the development or operation of low-income
housing.
(B) HUD or the requesting public housing agency shall agree that the requested information
shall be used only for purposes of determining an individual’s eligibility for benefits
or the amount of benefits under a HUD housing assistance program and that it will
comply with the provisions of 20 C.F.R. § 603.7 and the limitations on the use of the information set forth in Pub. L. No. 100-628, § 904(c)(2).
(C) The information requested shall not be released unless the individual about whom the
requested information relates has signed a consent form, approved by the Secretary
of HUD, that permits the release of the requested information.
(D) The information requested shall not be released unless HUD or the requesting public
housing agency agrees to reimburse the Department of Labor for the costs involved
in furnishing the requested information.
(7)(A) The Department of Labor shall disclose, upon request, to officers and employees of
the Vermont Center for Crime Victim Services, with respect to an identified individual,
the name and address of the individual’s employer.
(B) The Center and the Department shall develop an agreement that complies with 20 C.F.R. § 603.6, and the Center shall comply with the confidentiality requirements of 20 C.F.R. § 603.7.
[Subdivision (e)(8) effective until July 1, 2026; see also subdivision (e)(8) effective
July 1, 2026 set out below.]
(8) The Department of Labor shall disclose, upon request:
(A) to the Attorney General and employees of the Office of the Attorney General, information
necessary for the Attorney General to investigate a complaint and enforce the provisions
of this chapter as provided pursuant to section 1379 of this chapter; and
(B) to the Commissioners of Financial Regulation and of Taxes and employees of the Departments
of Financial Regulation and of Taxes, information necessary to investigate misclassification
or miscoding of workers under the insurance and tax laws that are under their jurisdiction.
[Subdivision (e)(8) effective July 1, 2026; see also subdivision (e)(8) effective until
July 1, 2026 set out above.]
(8) [Repealed.]
(f) Nothing contained in this section shall be deemed to interfere with the disclosure
of certain information obtained under this chapter as provided in sections 1315, 1316, and 1317 of this title or to interfere with disclosure to the Internal Revenue Service of the U.S. Department
of the Treasury or to any state for purposes of the Federal Unemployment Tax Act or
for the purposes of taxation of unemployment compensation benefits paid to individuals
by this Department. Information may be exchanged with the Vermont Department of Taxes
for the purpose of establishing liability of employers for unemployment compensation
purposes or identifying employers affected by Vermont tax laws. Information reported
to the Department of Labor may be provided to the Vermont Department of Taxes for
the purposes of assessment and collection of Vermont taxes, including identifying
nonfilers of the State tax; locating and identifying persons in debt to the Department
of Taxes; and verifying eligibility for tax credits, tax adjustments, or other tax
benefits.
(g) All written or oral reports, or other communications, from an employer or the employer’s
workers to each other, or to the Commissioner or any of the Commissioner’s agents,
representatives, or employees, made in connection with the requirements and administration
of this chapter or the rules adopted pursuant to this chapter, shall be absolutely
privileged and shall not be made the subject matter or basis for any suit for slander
or libel in any court of this State, unless they are false in fact and malicious in
intent.
(h) Any employing unit that fails to report employment and separation information with
respect to a claimant and wages paid to a claimant required under subsection (b) of
this section shall be subject to a penalty of $100.00 for each report not received
by the prescribed due date. The penalty imposed pursuant to this subsection shall
be collected in the manner provided for the collection of contributions in section
1329 of this subchapter and shall be paid into the contingent fund established in
section 1365 of this subchapter. If the employing unit demonstrates that its failure
was due to a reasonable cause, the Commissioner may waive the penalty. (Amended 1959, No. 329 (Adj. Sess.), § 22, eff. March 1, 1961; 1961, No. 210, § 15, eff. July 11, 1961; 1965, No. 26, eff. April 14, 1965; 1967, No. 89; 1973, No. 168 (Adj. Sess.); 1975, No. 62, § 1, eff. April 18, 1975; 1979, No. 120 (Adj. Sess.), § 6, eff. Jan. 1, 1980; 1981, No. 66, § 5(a), eff. May 1, 1981; 1981, No. 194 (Adj. Sess.), § 1; 1985, No. 50, §§ 4, 5; 1987, No. 278 (Adj. Sess.), § 3, eff. June 21, 1988; 1989, No. 132 (Adj. Sess.), §§ 1, 2; 1991, No. 186 (Adj. Sess.), § 34, eff. May 7, 1992; 1993, No. 177 (Adj. Sess.), § 1; 1997, No. 63, §§ 19, 19a, eff. Sept. 1, 1997; 2003, No. 70 (Adj. Sess.), § 63, eff. March 1, 2004; 2003, No. 92 (Adj. Sess.), § 4; 2005, No. 103 (Adj. Sess.), § 3, eff. April 5, 2006; 2005, No. 184 (Adj. Sess.), § 14; 2009, No. 54, § 69a, eff. June 1, 2009; 2009, No. 124 (Adj. Sess.), § 8; 2009, No. 142 (Adj. Sess.), § 6; 2011, No. 50, § 7, eff. May 26, 2011; 2013, No. 131 (Adj. Sess.), § 125; 2013, No. 179 (Adj. Sess.), § E.400; 2015, No. 157 (Adj. Sess.), § H.3, eff. Jan. 1, 2017; 2017, No. 74, § 48; 2019, No. 85 (Adj. Sess.), § 3, eff. Feb. 20, 2020; 2019, No. 85 (Adj. Sess.), § 12, eff. July 1, 2026; 2021, No. 20, § 220; 2023, No. 85 (Adj. Sess.), § 174, eff. July 1, 2024; 2025, No. 40, § 10, eff. July 1, 2025.)
§ 1314a. Quarterly wage reporting; misclassification; penalties
(a)(1) Each employing unit that is an employer that has individuals in employment as defined
in subdivision 1301(6) of this chapter shall file with the Commissioner on forms supplied
by the Commissioner a detailed wage report for each calendar quarter that contains
each individual worker’s name, Social Security number, gross wages paid during each
calendar quarter, and any other information the Commissioner deems necessary in the
administration of this chapter.
(2) In addition to other information required by this section, the wage reports required
by this subsection shall include for each worker paid by the hour the worker’s gender
and the worker’s hourly wage.
(b) Reports required by subsection (a) of this section shall be filed with the Commissioner
by the last day of the calendar month following the calendar quarter for which the
report is submitted.
(c) An employing unit that is not an employer shall, upon request of the Commissioner,
submit reports on forms furnished by the Commissioner regarding employment, wages,
hours of employment, unemployment, and related matters that the Commissioner deems
necessary in the administration of this chapter.
(d) Reports required by subsection (c) of this section shall be submitted to the Commissioner
not later than 10 calendar days after the date the Commissioner’s request was sent
electronically or mailed to the employing unit.
(e) On request of the Commissioner, any employing unit or employer shall report, within
10 days after the mailing, electronic delivery, or personal delivery of the request,
separation information for a claimant, any disqualifying income the claimant may have
received, and any other information that the Commissioner may require to determine
the claimant’s eligibility for unemployment compensation. The Commissioner shall make
a request when:
(1) the claimant’s eligibility is dependent upon:
(A) wages paid during an incomplete calendar quarter in which the claimant was separated;
or
(B) the last completed quarter; and
(2) obtaining the information will result in more timely benefit payments.
(f)(1) Any employing unit or employer that fails to:
(A) File a report required by this section shall be subject to an administrative penalty
of $100.00 for each report not received by the prescribed due dates.
(B) Properly classify an individual regarding the status of employment shall be subject
to an administrative penalty of not more than $5,000.00 for each improperly classified
employee. In addition, an employer found to have violated this section is prohibited
from contracting, directly or indirectly, with the State or any of its subdivisions
for up to three years following the date the employer was found to have failed to
properly classify, as determined by the Commissioner in consultation with the Commissioner
of Buildings and General Services or the Secretary of Transportation, as appropriate.
Either the Secretary or the Commissioner, as appropriate, shall be consulted in any
appeal relating to prohibiting the employer from contracting with the State or its
subdivisions.
(2)(A) Penalties under this subsection (f) shall be collected in the same manner as contributions
under section 1329 of this title and shall be paid into the Contingent Fund established in section 1365 of this title.
(B) If the employing unit demonstrates that its failure was due to a reasonable cause,
the Commissioner may waive or reduce the penalty.
(g)(1) Notwithstanding any other provisions of this section, the Commissioner may, where
practicable, require any employing unit to file the reports required pursuant to subsections
(a) through (d) of this section, or any departmental registration required prior to
submitting the reports required by this section, in an electronic media form.
(2) The Commissioner may waive the requirement that an employing unit submit a report
in an electronic media form if the employing unit attests that it is unable to file
the required report in that form. (Added 1985, No. 50, § 6; amended 1985, No. 146 (Adj. Sess.), § 4; 1987, No. 227 (Adj. Sess.), § 2, eff. May 26, 1988; 1989, No. 132 (Adj. Sess.), § 3; 1997, No. 101 (Adj. Sess.), § 2; 1999, No. 119 (Adj. Sess.), § 10, eff. May 18, 2000; 2001, No. 56, § 1; 2009, No. 142 (Adj. Sess.), § 9; 2013, No. 173 (Adj. Sess.), § 2; 2019, No. 91 (Adj. Sess.), § 29, eff. July 1, 2020; 2023, No. 85 (Adj. Sess.), § 175, eff. July 1, 2024; 2025, No. 40, § 11, eff. July 1, 2025.)
§ 1315. State-federal cooperation
In the administration of this chapter, the Commissioner shall:
(1) cooperate with the Secretary of Labor to the fullest extent consistent with the provisions
of this chapter;
(2) make reports, in a form and containing information required by the Secretary of Labor;
(3) comply with any provisions the Secretary of Labor deems necessary to ensure the correctness
and verification of the reports; and
(4) comply with the regulations prescribed by the Secretary of Labor governing the expenditures
of sums allotted and paid to the State under 42 U.S.C. chapter 7, subchapter III for
the purpose of assisting in the administration of this chapter. (Amended 1959, No. 329 (Adj. Sess.), § 22, eff. March 1, 1961; 1961, No. 210, § 15, eff. July 11, 1961; 2023, No. 85 (Adj. Sess.), § 176, eff. July 1, 2024.)
§ 1316. Furnishing data
Upon request the Commissioner shall furnish to any agency of the United States charged
with the administration of public works or assistance through public employment the
name, address, ordinary occupation, and employment status of each recipient of benefits
and the recipient’s rights to further benefits under this chapter. (Amended 1959, No. 329 (Adj. Sess.), § 22, eff. March 1, 1961; 1961, No. 210, § 15, eff. July 11, 1961; 2023, No. 85 (Adj. Sess.), § 177, eff. July 1, 2024.)
§ 1317. Railroad Retirement Board
The Commissioner may make available to the Railroad Retirement Board such records
relating to the administration of this chapter as that Board deems necessary for its
purposes in administering the federal Railroad Unemployment Insurance Act and may
furnish copies of such records to the Board at the latter’s expense. (Amended 1959, No. 329 (Adj. Sess.), § 22, eff. March 1, 1961; 1961, No. 210, § 15, eff. July 11, 1961.)
§ 1318. Reciprocal benefit arrangements
(a) The Commissioner is authorized to enter into arrangements with the appropriate agencies
of other states or the federal government under which potential rights to benefits
accumulated under the unemployment compensation laws of other states or under federal
law, or both, may constitute the basis for the payment of benefits through a single
appropriate agency under terms that the Commissioner finds will be fair and reasonable
to all affected interests and will not result in any substantial loss to the Fund.
The Commissioner is authorized to reimburse a state or federal agency for benefits
paid by that agency upon the basis of wages received in employment subject to this
chapter or to receive from a state or federal agency amounts paid from the Fund upon
the basis of wages received in employment subject to the laws of the state or to federal
law.
(b) The Commissioner shall participate in any arrangements for the payment of compensation
on the basis of combining an individual’s wages and employment covered under this
chapter with the individual’s wages and employment covered under the unemployment
compensation laws of other states that are approved by the U.S. Secretary of Labor
in consultation with the state unemployment compensation agencies as reasonably calculated
to ensure the prompt and full payment of compensation in such a situation and that
include provisions for:
(1) applying the base period of a single state law to a claim involving the combining
of an individual’s wages and employment covered under two or more state unemployment
compensation laws; and
(2) avoiding the duplicate use of wages and employment by reason of the combination pursuant
to subdivision (1) of this subsection (b).
(c)(1) Reimbursements paid from the Fund pursuant to this section shall be deemed to be benefits
for the purposes of this chapter.
(2) No charge on account of reimbursements paid pursuant to subdivision (1) of this subsection
(c) shall be made to an employer’s experience rating record under subsection 1325(a)
of this subchapter.
(3) Benefits paid from the Fund to an individual, under arrangements entered into pursuant
to this section, shall not be charged to an employer’s experience rating record under
subsection 1325(a) of this subchapter when the benefits would not have been payable
to the individual but for this section because the individual lacked wages in employment
necessary to qualify for benefits under section 1338 of this subchapter. (Amended 1959, No. 329 (Adj. Sess.), § 22, eff. March 1, 1961; 1961, No. 210, § 15, eff. July 11, 1961; 1969, No. 189 (Adj. Sess.), § 1, eff. April 9, 1970; 1971, No. 77, § 2, eff. Dec. 31, 1971; 2023, No. 85 (Adj. Sess.), § 178, eff. July 1, 2024.)
§ 1319. Agreements for collection and payment of contributions
Notwithstanding the provisions of subdivision 1301(6)(A) of this title, the Commissioner is authorized to enter into reciprocal agreements with the appropriate
agencies of other states or the federal government adjusting the collecting and payment
of contributions by employers for services of individuals not performed wholly within
the jurisdiction of this State. Under the agreements, services may be agreed to be
considered for all purposes, in the Commissioner’s discretion, as wholly within or
wholly outside of the jurisdiction of this State. (Amended 1959, No. 329 (Adj. Sess.), § 22, eff. March 1, 1961; 1961, No. 210, § 15, eff. July 11, 1961; 2021, No. 20, § 221.)
§ 1320. Investigations; general powers
(a)(1) The Commissioner is authorized to conduct investigations, secure and transmit information,
make available services and facilities, and exercise the other powers provided pursuant
to this chapter as the Commissioner deems necessary or appropriate to facilitate the
administration of any unemployment compensation or public employment service law.
(2) The Commissioner is also authorized to accept and utilize information, services, and
facilities made available to this State by any agency charged with the administration
of any other unemployment compensation or public employment service law.
(3) To the extent permissible under the laws and constitution of the United States, the
Commissioner of Labor is authorized to enter into or cooperate in arrangements under
which facilities and services provided under this chapter and facilities and services
provided under the unemployment compensation law of any foreign government may be
utilized for the taking of claims and the payment of benefits under this chapter,
or under a similar law of the foreign government.
(b) On request of an agency that administers an employment security law of another state
or of a foreign government, and that has found in accordance with the provisions of
its law that an individual is liable to repay benefits received under the law, the
Commissioner may collect from the individual the amount of benefits to be refunded
to the agency, and the amounts may be collected by civil action in the name of the
Commissioner acting as agent for the agency.
(c) Records, with any necessary authentication of the records, required in the prosecution
of any criminal action brought by another state or foreign government for misrepresentation
to obtain benefits under the law of this State shall be made available to the agency
administering the employment security law of the other state or foreign government
for the purpose of the prosecution.
(d)(1) The Commissioner may begin and prosecute civil proceedings in any other state to collect
contributions, penalties, and interest legally due under this chapter.
(2) The officials of other states that extend a like comity to this State may sue for
the collection of contributions, interest, and penalties imposed by those other states,
in the courts of this State. In any such case, the Commissioner of Labor may, through
the Commissioner’s legal assistant, begin and conduct the suit for the other state.
(3) The courts of this State shall recognize and enforce liability for those contributions,
interest, and penalties imposed by other states that extend a like comity to this
State.
(e) The Commissioner may enter into or cooperate in arrangements or reciprocal agreements
with authorized agencies of other states by which:
(1) overpayments of benefits as determined under this chapter may be recovered by offset
from benefits otherwise payable under the unemployment compensation law of another
state; and
(2) overpayments of benefits as determined under the unemployment compensation law of
another state may be recovered by offset from benefits otherwise payable under this
chapter. (Amended 1959, No. 329 (Adj. Sess.), § 22, eff. March 1, 1961; 1961, No. 210, § 15, eff. July 11, 1961; 1967, No. 88, eff. April 12, 1967; 1981, No. 66, § 5(b), eff. May 1, 1981; 1991, No. 183 (Adj. Sess.), § 2; 2005, No. 103 (Adj. Sess.), § 3, eff. April 5, 2006; 2023, No. 85 (Adj. Sess.), § 179, eff. July 1, 2024.)
§ 1321. Contributions; taxable wage base changes
(a) Payment of contributions. Contributions shall accrue and become payable by each employer for each calendar
year in which the employer is subject to this chapter, with respect to wages paid
for employment, as defined in subdivision 1301(6) of this subchapter, occurring during
the calendar year, except as otherwise provided in this section. The contributions
shall become due and be payable at times and in installments prescribed by the Board.
(b) Base of contributions. The term “wages” shall not include that part of remuneration that, after remuneration
equal to $13,000.00 on January 1, 2011, and $16,000.00 on January 1, 2012, has been
paid in a calendar year to an individual by an employer with respect to employment
during a calendar year, unless that part of the remuneration is subject to a tax under
a federal law imposing a tax against which credit may be taken for contributions required
to be paid into a state unemployment fund. After January 1, 2012, whenever the Unemployment
Compensation Fund has a positive balance and all advances made to the State Unemployment
Compensation Fund pursuant to Title XII of the Social Security Act have been repaid
as of June 1, the base of contribution amount shall be adjusted on January 1 of the
following year by the same percentage as any increase in the State annual average
wage as calculated pursuant to subsection 1338(g) of this subchapter. When the unemployment
contribution rate schedule established by subsection 1326(e) of this subchapter is
reduced to schedule III, the base of contribution amount shall be reduced by $2,000.00
on January 1 of the following year and shall be adjusted annually thereafter on January
1 of the following year by the same percentage as any increase in the State annual
average wage as calculated pursuant to subsection 1338(g) of this subchapter. When
the unemployment contribution rate schedule established by subsection 1326(e) of this
subchapter is reduced to schedule I, the base of contribution amount shall be reduced
by $2,000.00 on January 1 of the following year and shall be adjusted annually thereafter
on January 1 of the following year by the same percentage as any increase in the State
annual average wage as calculated pursuant to subsection 1338(g) of this subchapter.
For the purposes of this subsection:
(1) any employer who acquired the entire or a distinct and severable portion of the organization,
trade, or business of an employer shall be treated as a single unit with its predecessor
for the calendar year in which the acquisition occurs; and
(2) the term employment shall include service constituting employment under any unemployment
compensation law of another state.
(c)(1) Financing benefits paid to employees of nonprofit organizations.
(A) Benefits paid to employees of nonprofit organizations shall be financed in accordance
with the provisions of this subsection (c).
(B) As used in this subsection (c), “nonprofit organization” means an organization, or
group of organizations, described in Section 501(c)(3) of the U.S. Internal Revenue Code that is exempt from income tax under Section 501(a) of the Internal Revenue Code.
(2) Liability for contributions and election of reimbursement. Any nonprofit organization that, pursuant to subdivision 1301(5)(B)(i) of this chapter,
is or becomes subject to this chapter shall pay contributions under the provisions
of this section unless it elects, in accordance with this subsection, to pay to the
Commissioner for the Unemployment Insurance Trust Fund an amount equal to the amount
of regular benefits and of one-half of the extended benefits paid that is attributable
to service in the employ of the nonprofit organization to individuals for weeks of
unemployment that begin during the effective period of the election.
(A) [Repealed.]
(B) Any nonprofit organization that becomes subject to this chapter may elect to become
liable for payments in lieu of contributions for a period of not less than 12 months
by filing a written notice of its election with the Commissioner not later than 30
days immediately following the date of the determination that the organization is
subject to this chapter.
(C) Any nonprofit organization that makes an election in accordance with subdivision (B)
of this subdivision (c)(2) shall continue to be liable for payments in lieu of contributions
until it files with the Commissioner a written notice terminating its election not
later than 30 days prior to the beginning of the calendar year for which the termination
shall first be effective.
(D) Any nonprofit organization that has been paying contributions under this chapter may
elect to become liable for payments in lieu of contributions by filing with the Commissioner
not later than 30 days prior to the beginning of any calendar year a written notice
of election to become liable for payments in lieu of contributions. An election under
this subdivision (c)(2)(D) shall not be terminable by the organization for that year
and the next year.
(E) The Commissioner 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.
(F) The Commissioner, in accordance with any applicable rules adopted by the Board, shall
notify each nonprofit organization of any determination that the Commissioner makes
with regard to its status as an employer and the effective date of any election that
the organization makes and of any termination of an election. The determinations shall
be subject to reconsideration and to appeal and review in accordance with the provisions
of section 1337a of this title.
(3) Reimbursement payments. Payments in lieu of contributions shall be made in accordance with the provisions
of this subdivision, including either subdivision (A) or (B).
(A) At the end of each calendar quarter, or at the end of any other period as determined
by the Commissioner, the Commissioner shall bill each nonprofit organization, or group
of nonprofit organizations, that has elected to make payments in lieu of contributions
for an amount equal to the full amount of regular benefits plus one-half of the amount
of extended benefits paid during the quarter or other prescribed period that is attributable
to service in the employ of the organization.
(B)(i) Each nonprofit organization that has elected payments in lieu of contributions may
request permission to make payments as provided in this subdivision (c)(3)(B). Payment
pursuant to the provisions of this subdivision (c)(3)(B) shall become effective upon
approval of the Commissioner.
(ii) At the end of each calendar quarter, the Commissioner shall bill each nonprofit organization
approved to make payments pursuant to the provisions of this subdivision (c)(3)(B)
for an amount representing a percentage of its total payroll for the immediately preceding
calendar year that the Commissioner determines to be appropriate based on the average
benefit costs attributable to service in the employ of nonprofit organizations during
the preceding calendar year. The Commissioner may determine a different rate for any
organization that did not pay wages throughout the four calendar quarters of the preceding
calendar year.
(iii) At the end of each calendar year, the Commissioner may modify the quarterly percentage
of payroll thereafter payable by the nonprofit organization in order to minimize excess
or insufficient payments.
(iv) At the end of each calendar year, the Commissioner shall determine whether the total
of payments for the year made by a nonprofit organization is less than, or in excess
of, the total amount of regular benefits plus one-half of the amount of extended benefits
paid to individuals during the taxable year based on wages attributable to service
in the employ of the organization. Each nonprofit organization whose total payments
for the year are less than the amount determined shall be liable for payment of the
unpaid balance to the Trust Fund in accordance with subdivision (C) of this subdivision
(c)(3). If the total payments exceed the amount so determined for the taxable year,
all or a part of the excess shall, at the election of the nonprofit organization,
be refunded from the Trust Fund or retained in the Trust Fund as part of the payments
that may be required for the next calendar year.
(C) Payment of any bill rendered under subdivision (2) of this subsection (c) or this
subdivision (c)(3) shall be made not later than 30 days after the bill is mailed to
the last known address of the nonprofit organization or is otherwise delivered to
it unless there has been an application for redetermination by the Commissioner or
a petition for hearing before a referee in accordance with subdivision (E) of this
subdivision (c)(3).
(D) Payments made by any nonprofit organization under the provisions of this section shall
not be deducted or deductible, in whole or in part, from the remuneration of individuals
in the employ of the organization.
(E)(i) The amount due specified in any bill from the Commissioner shall be conclusive on
the organization unless, not later than 30 days after the date of the bill, the organization
files an application for reconsideration by the Commissioner, or a petition for a
hearing before a referee, setting forth the grounds for the application or petition.
(ii) The Commissioner shall promptly review and reconsider the amount due specified in
the bill and shall thereafter issue a redetermination in any case in which an application
for redetermination has been filed. Any such redetermination shall be conclusive on
the organization unless, not later than 30 days after the date of the redetermination,
the organization files a petition for a hearing before a referee setting forth the
grounds for the petition.
(iii) Proceedings on the petition for a hearing before a referee on the amount of a bill
rendered under this section or a redetermination of the amount shall be in accordance
with the provisions of section 1331 of this title, and the decision of the referee shall be subject to the provisions of that section.
Review of the decision of the referee by the Employment Security Board shall be in
accordance with, and its decision shall be subject to, the provisions of section 1332 of this title.
(F) Any employer, including the State of Vermont, that makes payments in lieu of contributions
under this section shall be subject to the provisions of sections 1314, 1322, 1328, 1329, 1334, and 1336 of this title as follows:
(i) The employer shall be liable for any reports required by the Commissioner pursuant
to sections 1314 and 1322 of this title.
(ii) The employer shall be liable for any penalty imposed pursuant to sections 1314 and 1328 of this title.
(iii) The employer shall be liable for the same interest on past due payments pursuant to
subsection 1329(a) of this title.
(iv) The employer shall be subject to a civil action for the collection of past due payments
as if those payments were contributions pursuant to subsections 1329(b) and 1334(a) of this title.
(v) The employer shall be subject to actions for the collection of past due payments as
if those payments were contributions pursuant to subsections 1329(c) and (d) and 1334(b)
and (c) and section 1336 of this title; however, those provisions shall not apply to the State of Vermont.
(4) Authority to terminate elections. If any nonprofit organization is delinquent in making payments in lieu of contributions
as required under this subsection, the Commissioner may terminate the organization’s
election to make payments in lieu of contributions as of the beginning of the next
taxable year, and the termination shall be effective for that and the next taxable
year.
(5) Allocation of benefit costs.
(A) Each employer that is liable for payments in lieu of contributions shall pay to the
Commissioner for the Trust Fund the amount of regular benefits plus the amount of
one-half of extended benefits paid that are attributable to service in the employ
of the employer.
(B) If benefits paid to an individual are based on wages paid by more than one employer
and one or more of the employers are liable for payments in lieu of contributions,
the amount payable to the Trust Fund by each employer that is liable for payments
in lieu of contributions 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 the employer bear to the total base-period wages paid to the individual by all
of the individual’s base-period employers.
(6) Group accounts. Two or more employers that have become liable for payments in lieu of contributions,
in accordance with the provisions of this section and section 1380 of this title, may file a joint application to the Commissioner for the establishment of a group
account for the purpose of sharing the cost of benefits paid that are attributable
to service in the employ of the employers. Each application shall identify and authorize
a group representative to act as the group’s agent for the purpose of this section.
Upon approval of the application, the Commissioner shall establish a group account
for the employers effective as of the beginning of the calendar quarter in which the
Commissioner receives the application and shall notify the group’s representative
of the effective date of the account. The account shall remain in effect for not less
than two years and thereafter until terminated at the discretion of the Commissioner
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 the 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 the member in the
quarter bear to the total wages paid during the quarter for service performed in the
employ of all members of the group. The Board shall adopt rules as it deems necessary
with respect to applications for establishment, maintenance, and termination of group
accounts that are authorized by this subdivision, 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 subsection by members of the group and the
time and manner of the payments.
(7) [Repealed.]
(d) Financing benefits paid to employees of State. In lieu of contributions required of employers subject to this chapter, the State
of Vermont, including State hospitals but excluding any State institution of higher
education, shall pay to the Commissioner, for the Unemployment Compensation Trust
Fund, an amount equal to the amount of benefits paid, including the full amount of
extended benefits paid, attributable to service by individuals in the employ of the
State. At the end of each calendar quarter, or at the end of any other period as determined
by the Commissioner, the Commissioner shall bill the State for the amount of benefits
paid during the quarter or other prescribed period that is attributable to service
in the employ of the State. Subdivisions (c)(3)(C) through (3)(F), inclusive, and
subdivisions (c)(5) and (6) of this section as they apply to nonprofit organizations
shall also apply to the State of Vermont, except that the State shall be liable for
all benefits paid, including the full amount of extended benefits paid, attributable
to service in the employ of the State.
(e) Contributions paid by political subdivisions. Any municipality, any State institution of higher education, and any political or
governmental subdivisions or instrumentalities of the State shall pay contributions,
unless it elects to pay to the Commissioner for the Unemployment Compensation Trust
Fund, an amount equal to the amount of benefits paid, including the full amount of
extended benefits paid, attributable to service by individuals in the employ of the
entity. Subsections (a) and (b) and subdivisions (c)(3)(C) through (3)(F), inclusive,
and subdivisions (c)(4) through (6), inclusive, of this section as they apply to nonprofit
organizations shall also apply to the entities designated in this subsection, except
that these entities shall be liable for all benefits paid, including the full amount
of extended benefits paid, attributable to service in the employ of these entities.
(1) Any entity designated in this subsection may elect to become liable for payments in
lieu of contributions for a period of not less than one calendar year if it files
with the Commissioner a written notice of its election within the 30-day period immediately
following that date.
(2) Any entity designated in this subsection may elect to become liable for payments in
lieu of contributions for a period of not less than one calendar year following the
date on which it becomes subject to the provisions of this chapter by filing a written
notice of its election with the Commissioner not later than 30 days immediately following
the date of the determination of that subjectivity.
(3) Any entity designated in this subsection that makes an election in accordance with
subdivisions (1) and (2) of this subsection will continue to be liable for payments
in lieu of contributions until it files with the Commissioner a written notice terminating
its election not later than 30 days prior to the beginning of the calendar year for
which the termination shall first be effective.
(4) Any entity designated in this subsection that has been paying contributions under
this chapter may change to a reimbursable basis by filing with the Commissioner not
later than 30 days prior to the beginning of any calendar year a written notice of
election to become liable for payments in lieu of contributions. The election shall
not be terminable by the organization for that year and the next year.
(5) The Commissioner 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 the date that entity
became subject to this chapter.
(6) The Commissioner shall notify each entity designated in this subsection of any determinations
that the Commissioner makes regarding its status as an employer and of the effective
date of any election that it makes and of any termination of that election. The determination
shall be subject to reconsideration and to appeal and review in accordance with the
provisions of section 1337a of this subchapter.
(f) Payments in lieu of contributions considered self-insuring. Any employer who makes payments in lieu of contributions under the provisions of
this section is considered to be self-insuring and shall pay to the Commissioner for
the Unemployment Compensation Trust Fund any amounts the Commissioner finds to be
due under this chapter, including benefits paid but denied on appeal or benefits paid
in error that cannot be properly charged either against another employer who makes
payments in lieu of contributions or against the experience-rating record of another
employer who pays contributions. Benefits improperly paid where repayment by the claimant
is ordered pursuant to subsection 1347(a) or (b) of this title will be credited to
the employer’s account when repayment from the claimant is actually received by the
Commissioner. (Amended 1959, No. 329 (Adj. Sess.), § 22, eff. March 1, 1961; 1963, No. 106, § 1, eff. Jan. 1, 1964; 1971, No. 77, § 3, eff. Dec. 31, 1971; 1977, No. 64, §§ 8-11, 23; 1979, No. 120 (Adj. Sess.), § 7, eff. April 14, 1980; 1981, No. 86, § 9, eff. May 10, 1981; 1983, No. 16, §§ 3-5, eff. April 4, 1983; 1989, No. 132 (Adj. Sess.), § 4; 1991, No. 183 (Adj. Sess.), § 3; 2009, No. 2 (Sp. Sess.), § 1, eff. June 9, 2009; 2009, No. 124 (Adj. Sess.), § 2; 2023, No. 76, § 41, eff. July 1, 2023; 2023, No. 85 (Adj. Sess.), § 180, eff. July 1, 2024; 2023, No. 184 (Adj. Sess.), § 6, eff. July 1, 2024; 2025, No. 18, § 33, eff. May 13, 2025.)
§ 1321a. [Repealed.]
§ 1322. Reports; liability
(a) Every employer shall file with the Commissioner periodic reports to disclose its liability
for contributions under this chapter on forms and at times prescribed by the Commissioner.
(b)(1) Every employer subject to this chapter who sells in bulk 50 percent or more of its
assets, including any stock of goods, wares, or merchandise of any kind, fixtures,
machinery, equipment, buildings, or real estate, when the sale constitutes the sale
of the employer’s business to another shall give the Commissioner 10 days’ notice
of the sale before the completion of the transfer of the property.
(2) The employer shall file all contribution reports with the Commissioner to the date
of the proposed transfer of property and pay all contributions, interest, and penalties
due and payable. The employer shall also file the detailed quarterly wage report required
by section 1314a of this subchapter covering employee wages to date of proposed transfer.
(3)(A) The Commissioner shall furnish to the employer within 10 days after the reports are
filed a certificate showing that all reports have been filed and contributions, interest,
and penalties have been paid to the date of the proposed transfer. If the certificate
is not furnished by the Commissioner within 10 days, no liability may thereafter be
imposed upon the purchaser.
(B) The employer shall present the certificate to the purchaser of the property.
(C) The failure of the purchaser to require the certificate makes the purchaser liable
to the Commissioner for the unpaid contributions, interest, and penalties owed by
the employer in an amount not to exceed the reasonable value of the assets purchased.
The liability imposed upon the purchaser by this subsection shall be secondary to
the liability of the employer.
(c) Subsection (b) of this section shall not apply to sales made under any court order
or to any sales made by assignees for the benefit of creditors, executors, administrators,
receivers, or any public officer in the officer’s official capacity or by any officer
of the court.
(d) An employing unit that has been liable otherwise than by its election to pay contributions
as an employer under this chapter for any calendar year shall file reports and pay
contributions for the next succeeding calendar year as the Commissioner may prescribe. (Amended 1959, No. 329 (Adj. Sess.), § 22, eff. March 1, 1961; 1961, No. 210, § 15, eff. July 11, 1961; 1967, No. 226 (Adj. Sess.), § 1, eff. Jan. 17, 1968; 1985, No. 50, § 7; 2023, No. 85 (Adj. Sess.), § 181, eff. July 1, 2024.)
§ 1322a. Out-of-state or nonresident subcontractors
(a) Any contractor who is or becomes an employer under the provisions of this chapter,
who contracts with any out-of-state or nonresident subcontractor, who also is or becomes
an employer under the provisions of this chapter, shall:
(1) withhold sufficient monies on the contract to guarantee that all contributions, penalties,
and interest are paid upon completion of the contract; or
(2) require the subcontractor to secure a bond guaranteeing payment of all contributions,
penalties, and interest due or to become due with respect to wages paid for employment
on the contract.
(b) Failure to comply with the provisions of this section shall render the contractor
directly liable for the contributions, penalties, and interest due from the subcontractor
and the Commissioner shall have all of the remedies of collection against the contractor
under the provisions of this chapter as though the services in question were performed
directly for the contractor.
(c) Any contractor who becomes liable for and pays contributions with respect to individuals
in the employ of a subcontractor may recover the amounts paid from the subcontractor.
(d) As used in this section, the words “contractor” and “subcontractor” mean and include
individuals, partnerships, firms or corporations, or other associations of persons
engaged in the business of construction, alteration, repairing, dismantling, or demolition
of buildings, roads, bridges, viaducts, sewers, water and gas mains, streets, disposal
plants, water filters, tanks and towers, airports, dams, water wells, pipelines, and
every other type of structure, project, development, or improvement coming within
the definition of real property. (Added 1965, No. 115, eff. June 22, 1965; amended 2023, No. 85 (Adj. Sess.), § 182, eff. July 1, 2024.)
§ 1323. Termination of coverage; agreement by employee to make contribution
(a) An employing unit shall cease to be an employer subject to this chapter only as of
the first day of January of any calendar year, if it files with the Commissioner,
on or before March 31 next following, a written application for termination of coverage,
and the Commissioner finds that the employing unit was not an employer during the
preceding calendar year. The requirements of this subsection may be waived by the
Commissioner for good cause.
(b) The Commissioner may terminate coverage of any employing unit on the Commissioner’s
own motion when the Commissioner finds that the employing unit has not selected coverage
in accordance with subdivision 1301(5)(E) of this subchapter and that:
(1) the employing unit has not been an employer for the period of one year immediately
preceding;
(2) the person who is the employing unit is deceased; or
(3) the employing unit has ceased to employ at least one person within the State.
(c) Any agreement by an individual employed by an employer to pay the whole or any portion
of the employer’s contributions required by this chapter shall be void and no employer
shall make any deduction for that purpose from the wages or salary of any individual
employed by the employer. (Amended 1959, No. 329 (Adj. Sess.), § 22, eff. March 1, 1961; 1961, No. 210, § 15, eff. July 11, 1961; 1969, No. 43; 2023, No. 85 (Adj. Sess.), § 183, eff. July 1, 2024.)
§ 1324. Rate of contribution
(a) The standard rate of contributions shall be five and four-tenths percent.
(b) Each employer that has not been subject to this chapter for a sufficient period of
time to have the rate computed under section 1326 of this subchapter shall pay contributions
at the rate of one percent, except that foreign corporations classified in the three-digit
North American Industry Classification System Code as 236, 237, or 238 shall pay contributions
at a rate equal to the average rate as of the most recent computation date paid by
all employers so classified. (Amended 1971, No. 77, § 4, eff. Dec. 31, 1971; 1977, No. 64, § 12, eff. Jan. 1, 1977; 1983, No. 124 (Adj. Sess.), § 1; 1987, No. 81; 2001, No. 56, § 3; 2003, No. 131 (Adj. Sess.), § 1; 2023, No. 85 (Adj. Sess.), § 184, eff. July 1, 2024.)
§ 1325. Employers’ experience-rating records; disclosure to successor entity
(a)(1) The Commissioner shall maintain an experience-rating record for each employer. Benefits
paid shall be charged against the experience-rating record of each subject employer
who provided base-period wages to the eligible individual. Each subject employer’s
experience-rating charge shall bear the same ratio to total benefits paid as the total
base-period wages paid by that employer bear to the total base-period wages paid to
the individual by all base-period employers. The experience-rating record of an individual
subject base-period employer shall not be charged for benefits paid to an individual
under any of the following conditions:
(A) The individual’s employment with that employer was terminated under disqualifying
circumstances.
(B) The individual’s employment or right to reemployment with that employer was terminated
by retirement of the individual pursuant to a retirement or lump-sum retirement pay
plan under which the age of mandatory retirement was agreed upon by the employer and
its employees or by the bargaining agent representing those employees.
(C) As of the date on which the individual filed an initial claim for benefits, the individual’s
employment with that employer had not been terminated or reduced in hours.
(D) The individual was employed by that employer as a result of another employee taking
leave under chapter 5, subchapter 4 of this title, and the individual’s employment
was terminated as a result of the reinstatement of the other employee under chapter
5, subchapter 4 of this title.
(E) [Repealed.]
(F) The individual voluntarily separated from that employer to accompany a spouse who
is on active duty with the U.S. Armed Forces or who holds a commission in the U.S.
Foreign Service and is assigned overseas as provided by subdivision 1344(a)(2)(A)
of this chapter.
(G) [Repealed.]
(H) [Repealed.]
(2) If an individual’s unemployment is directly caused by a major disaster declared by
the President of the United States pursuant to 42 U.S.C. § 5122 and the individual would have been eligible for federal disaster unemployment assistance
benefits but for the receipt of regular benefits, an employer shall be relieved of
charges for benefits paid to the individual with respect to any week of unemployment
occurring due to the natural disaster up to a maximum amount of 10 weeks.
(3) [Repealed.]
(b)(1) Any individual or employing unit who in any manner succeeds to or acquires the organization,
trade, or business or substantially all of the assets of any employer who has been
operating the business within two weeks prior to the acquisition, except any assets
retained by the employer incident to the liquidation of the employer’s obligations,
and who thereafter continues the acquired business shall be considered to be a successor
to the predecessor from whom the business was acquired and, if not already an employer
before the acquisition, shall become an employer on the date of the acquisition. The
Commissioner shall transfer the experience-rating record of the predecessor employer
to the successor employer. If the successor was not an employer before the date of
acquisition, the successor’s rate of contribution for the remainder of the rate year
shall be the rate applicable to the predecessor employers with respect to the period
immediately preceding the date of acquisition if there was only one predecessor or
there were only predecessors with identical rates. If the predecessors’ rates were
not identical, the Commissioner shall determine a rate based on the combined experience
of all the predecessor employers. If the successor was an employer before the date
of acquisition, the contribution rate that was assigned to the successor for the rate
year in which the acquisition occurred will remain assigned to the successor for the
remainder of the rate year, after which the experience-rating record of the predecessor
shall be combined with the experience rating of the successor to form the single employer
experience-rating record of the successor. At any time prior to the issuance of the
certificate required by subsection 1322(b) of this chapter, an employing unit shall,
upon request of a potential successor, disclose to the potential successor its current
experience-rating record.
(2) Notwithstanding the provisions of subdivision (1) of this subsection, an individual
or employing unit who in any manner succeeds to or acquires the organization, trade,
or business or substantially all of the assets of any employing unit who was an employer
before the date of acquisition and whose currently assigned contribution rate is higher
than that currently assigned to the acquiring individual or employing unit shall not
be treated as a successor.
(3) If a successor, upon acquisition of an employer under subdivision (1) of this subsection,
divides operation of the successor business between two or more corporate entities,
the successor shall designate one of the corporate entities involved in the successor’s
business operations as the filing successor for purposes of quarterly wage reporting
and benefit rate assignment. The designated filing successor shall include all employees
involved in carrying on the successor business in the designated filing successor’s
quarterly wage reporting and shall pay the full successor benefit tax on all business
employees.
(c) Nothing in this section shall be construed to grant to any employer or to individuals
performing services for the employer prior claims or rights to the amounts paid by
the employer into the Fund.
(d) Notwithstanding any other provision of law, the following shall apply to assignment
of rates and transfers of experience:
(1) If an employer transfers its trade or business, or a portion thereof, to another employer
and, at the time of the transfer, there is substantially common ownership, management,
or control of the two employers, the employment experience attributable to the transferred
trade or business shall be transferred to the employer to whom such business is so
transferred. The rates of both employers shall be recalculated and made effective
immediately upon the date of the transfer of trade or business.
(2) Whenever a person who is not an employer under this chapter at the time it acquires
the trade or business of an employer, the unemployment experience of the acquired
business shall not be transferred to such person if the Commissioner finds that such
person acquired the business solely or primarily for the purpose of obtaining a lower
rate of contributions. Instead, that person shall be assigned the highest rate assignable
under this chapter until being subject to this chapter for a sufficient period of
time to have his or her rate computed under section 1326 of this title. In determining whether the business was acquired solely or primarily for the purpose
of obtaining a lower rate of contribution, the Commissioner shall use objective factors
that may include:
(A) the cost of acquiring the business;
(B) whether the person continued the business enterprise of the acquired business;
(C) how long that business enterprise was continued; and
(D) whether a substantial number of new employees were hired to perform duties unrelated
to the business activity conducted prior to acquisition of the new business.
(3) If a person knowingly violates or attempts to violate subdivision (1) or (2) of this
subsection or any other provision of this chapter related to determining the assignment
of a contribution rate, or if a person knowingly advises another person in a way that
results in a violation of those provisions, the person shall be subject to the following
penalties:
(A) If the person is an employer, the person shall be assigned the highest rate assignable
under this chapter for the rate year during which the violation or attempted violation
occurred and the three rate years immediately following this rate year. If the person’s
business is already at the highest rate for any year, or if the amount of increase
in the person’s rate would be less than two percent for that year, a penalty rate
of contributions of two percent of taxable wages shall be imposed for that year.
(B) If the person is not an employer, that person shall be subject to a civil penalty
of not more than $5,000.00. A fine under this subdivision (B) shall be deposited in
the Contingent Fund established under section 1365 of this title.
(C) In addition to other penalties under this subdivision (3), a person who violates this
section may be imprisoned not more than three years or fined not more than $5,000.00,
or both.
(4) As used in this section:
(A) “Attempt to violate” means the intent to evade, misrepresentation, or intentional
nondisclosure.
(B) “Knowingly” means having actual knowledge of or acting with deliberate ignorance or
reckless disregard of the prohibition.
(C) “Person” has the same meaning as in Section 7701(a)(1) of the Internal Revenue Code of 1986.
(D) “Trade or business” includes the employer’s workforce.
(5) The Commissioner shall establish procedures, by rule, to identify the transfer or
acquisition of a business for the purposes of this section.
(e)-(g) [Repealed.] (Amended 1959, No. 329 (Adj. Sess.), § 22, eff. March 1, 1961; 1961, No. 132, eff. May 19, 1961; 1961, No. 210, § 15, eff. July 11, 1961; 1963, No. 98; 1967, No. 262 (Adj. Sess.), § 1, eff. Feb. 28, 1968; 1969, No. 42, § 1; 1977, No. 64, § 13; 1981, No. 86, § 10, eff. May 10, 1981; 1985, No. 50, § 8; 1985, No. 146 (Adj. Sess.), § 1; 1987, No. 100, § 1; 1989, No. 17, eff. April 13, 1989; 1989, No. 47, §§ 1, 2, eff. May 18, 1989; 1989, No. 83, § 2; 1997, No. 101 (Adj. Sess.), §§ 7, 9; 2005, No. 41, § 1; 2009, No. 118 (Adj. Sess.), § 1; 2011, No. 50, § 9c, eff. July 1, 2011; 2013, No. 82, § 1, eff. June 10, 2013; 2013, No. 173 (Adj. Sess.), § 9; 2017, No. 74, § 49; 2019, No. 91 (Adj. Sess.), § 30, eff. March 30, 2020; 2019, No. 91 (Adj. Sess.), § 32, eff. Oct. 1, 2021; 2021, No. 51, § 6, eff. June 1, 2021; 2023, No. 184 (Adj. Sess.), § 1, eff. July 1, 2024; 2025, No. 18, § 33, eff. May 13, 2025; 2025, No. 40, § 17, eff. July 1, 2025.)
§ 1326. Rate based on benefit experience
(a)(1) The Commissioner shall for each rate year compute a benefit ratio for each employer
who meets the requirements of section 1327 of this subchapter. For an employer whose
record has been chargeable with benefits throughout the three consecutive calendar
years immediately preceding the rate year for which the ratio is computed, the benefit
ratio shall be the quotient obtained by dividing the total benefits charged to the
employer’s record in those three years by the total of the employer’s taxable payrolls
for the same three-year period.
(2) For an employer whose record has been chargeable with benefits for at least one but
less than three consecutive calendar years immediately preceding the rate year for
which the ratio is computed, the benefit ratio shall be the quotient obtained by dividing
the total benefits charged to the employer’s record for the calendar year or years
by the total of the employer’s taxable payrolls for the same period.
(3) The contribution rate of each employer, not otherwise ineligible, who meets the requirements
of section 1327 of this subchapter, shall be determined under subsections (b) through
(g) of this section.
(b) The Commissioner shall prepare a schedule that lists all employers for whom a benefit
ratio has been computed pursuant to this section, in the order of their benefit ratios,
beginning with the lowest such ratio, and on which shall be shown with respect to
each such employer:
(1) the amount of the employer’s benefit ratio;
(2) the amount of the employer’s annual taxable payroll; and
(3) a cumulative total consisting of the amount of the employer’s annual taxable payroll
plus the amount of the annual taxable payrolls of all other employers preceding the
employer on the list.
(c) The Commissioner shall segregate employers so listed into classes in accordance with
the cumulative payrolls. The classes shall be determined by the cumulative payroll
percentage limits set forth in column B of the table set forth in subsection (e) of
this section. Each such class shall be identified by the rate class number in column
A that is opposite the figures in column B that represents the percentage limits of
each class. In the event an employer’s taxable payroll falls in more than one rate
class, the employer shall be assigned to the lower numbered rate class except that
no employer shall be assigned to a higher rate class than is assigned any other employer
with the same benefit ratio.
(d) The Commissioner shall compute a current fund ratio, and a highest benefit cost rate,
as follows:
(1) The current fund ratio shall be determined by dividing the available balance of the
Unemployment Compensation Fund on December 31 of the preceding calendar year by the
total wages paid for employment during that calendar year as reported by employers
by the following March 31.
(2)(A) The highest benefit cost rate is the highest annual ratio within the 10-year period
ending on the preceding December 31 of benefits paid, including the State’s share
of extended benefits, for taxpaying employers divided by total wages paid in covered
employment for taxpaying employers for the same period.
(B) Notwithstanding any provision of subdivision (A) of this subdivision (d)(2) to the
contrary, when computing the tax rate schedule to become effective on July 1, 2021
and on each subsequent July 1, the Commissioner shall calculate the highest benefit
cost rate without consideration of benefit payments made in calendar year 2020.
(e) The rate schedule shall be determined by dividing the current fund ratio by the highest
benefit cost rate. The applicable rate schedule shall be that schedule below the
resultant quotient that appears in column C of the following table:
| A. |
B. |
C. |
| |
|
|
IF THE RESULTING QUOTIENT IS: |
Rate
Class
|
% of Taxable
Payrolls
|
2.50
and
over
|
2.00
to
2.49
|
1.50
to
1.99
|
1.00
to
1.49
|
under
1.00
|
| |
From |
To |
I. |
II. |
III. |
IV. |
V. |
| _________________________________________ |
| 0 |
00.00 |
00.00 |
0.4% |
0.6% |
0.8% |
1.1% |
1.3% |
| 1 |
00.01 |
05.00 |
0.5 |
0.7 |
0.9 |
1.2 |
1.5 |
| 2 |
05.01 |
10.00 |
0.6 |
0.8 |
1.1 |
1.4 |
1.8 |
| 3 |
10.01 |
15.00 |
0.7 |
1.0 |
1.4 |
1.7 |
2.1 |
| 4 |
15.01 |
20.00 |
0.8 |
1.2 |
1.7 |
2.0 |
2.4 |
| 5 |
20.01 |
25.00 |
0.9 |
1.4 |
2.0 |
2.3 |
2.7 |
| 6 |
25.01 |
30.00 |
1.1 |
1.7 |
2.3 |
2.6 |
3.0 |
| 7 |
30.01 |
35.00 |
1.4 |
2.0 |
2.6 |
2.9 |
3.3 |
| 8 |
35.01 |
40.00 |
1.7 |
2.3 |
2.9 |
3.2 |
3.6 |
| 9 |
40.01 |
45.00 |
2.0 |
2.6 |
3.2 |
3.5 |
4.0 |
| 10 |
45.01 |
50.00 |
2.3 |
2.9 |
3.5 |
3.8 |
4.4 |
| 11 |
50.01 |
55.00 |
2.6 |
3.2 |
3.8 |
4.1 |
4.8 |
| 12 |
55.01 |
60.00 |
2.9 |
3.5 |
4.1 |
4.5 |
5.2 |
| 13 |
60.01 |
65.00 |
3.2 |
3.8 |
4.4 |
4.9 |
5.6 |
| 14 |
65.01 |
70.00 |
3.5 |
4.1 |
4.7 |
5.3 |
6.0 |
| 15 |
70.01 |
75.00 |
3.8 |
4.4 |
5.0 |
5.7 |
6.4 |
| 16 |
75.01 |
80.00 |
4.1 |
4.7 |
5.3 |
6.1 |
6.8 |
| 17 |
80.01 |
85.00 |
4.4 |
5.0 |
5.6 |
6.5 |
7.2 |
| 18 |
85.01 |
90.00 |
4.7 |
5.3 |
5.9 |
6.9 |
7.6 |
| 19 |
90.01 |
95.00 |
5.0 |
5.6 |
6.2 |
7.3 |
8.0 |
| 20 |
95.01 |
100.00 |
5.4 |
5.9 |
6.5 |
7.7 |
8.4 |
| _________________________________________ |
(f) The contribution rate to become effective on July 1 of each year shall be the rate
determined for that class into which the given employer is placed by application of
this section.
(g) If, subsequent to the assignment of rates of contribution for any rate year, the benefit
ratio of any employer is recomputed and changed, the employer shall be placed in that
position on the list that the employer would have occupied had the employer’s corrected
benefit ratio been shown on the list, but the altered position on the list shall not
affect the position of any other employer.
(h) In the determination of a rate schedule, only the wages paid by employers liable for
payment of contributions into the fund and benefit payments not reimbursable by employers
liable for payments in lieu of contributions shall be considered in the computation
of a current fund ratio and highest benefit cost rate. (Amended 1959, No. 329 (Adj. Sess.), § 22, eff. March 1, 1961; 1961, No. 65, eff. Jan. 1, 1961; 1961, No. 210, § 15, eff. July 11, 1961; 1963, No. 106, § 2; 1965, No. 77, § 1; 1967, No. 159, § 1; 1969, No. 161 (Adj. Sess.); 1973, No. 31, § 1, eff. March 27, 1973; 1977, No. 64, § 14, eff. Jan. 1, 1977; 1983, No. 124 (Adj. Sess.), § 2; 2021, No. 51, § 9a, eff. June 1, 2021; 2023, No. 85 (Adj. Sess.), § 185, eff. July 1, 2024; 2025, No. 40, § 18, eff. July 1, 2025.)
§ 1327. Rate; reduction; conditions
No employer’s contribution rate shall be reduced from five and four-tenths percent
for any rate year, except as provided in section 1324 of this subchapter, unless and
until the employer’s experience-rating record has been chargeable with benefits throughout
the three consecutive calendar years immediately preceding the rate year with respect
to which the rate shall be reduced and contributions were payable by the employer
with respect to the three calendar years. An employer who has not been subject to
the law for a period of time sufficient to meet this requirement may qualify for a
reduced rate if the employer’s record has been chargeable with benefits throughout
a lesser number of consecutive calendar years but in no event less than one calendar
year immediately preceding the rate year with respect to which the rate shall be reduced
and contributions were payable by the employer with respect to the period. (Amended 1963, No. 106, § 3; 1971, No. 77, § 5, eff. Dec. 31, 1971; 1983, No. 124 (Adj. Sess.), § 3; 2023, No. 85 (Adj. Sess.), § 186, eff. July 1, 2024.)
§ 1328. Filing employer quarterly tax contribution reports; failure
The Commissioner shall impose a penalty of $100.00 for each failure by an employer
to file any contribution report required under section 1322 of this title on or before the date on which the report is due, which shall be collected in the
manner provided for the collection of contributions in section 1329 of this title and shall be paid into the Contingent Fund provided in section 1365 of this title. If the employer demonstrates that its failure was due to a reasonable cause, the
Commissioner may waive or reduce the penalty. (Amended 1959, No. 329 (Adj. Sess.), § 22, eff. March 1, 1961; 1961, No. 210, § 15, eff. July 11, 1961; 1963, No. 106, § 5; 1967, No. 178; 1985, No. 50, § 9; 1989, No. 132 (Adj. Sess.), § 5; 2009, No. 142 (Adj. Sess.), § 10.)
§ 1329. Collection of unpaid contributions; suit
(a)(1) If any employer fails to make, when due, any contributions or payments required of
the employer under this chapter, the obligation shall carry interest at the rate of
one and one-half percent per month from the due date.
(2)(A) It shall be the duty of the Commissioner to collect the overdue obligations and interest.
Interest collected shall be paid into the Contingent Fund established pursuant to
section 1365 of this title.
(B) If an employer has paid the contributions or payments timely to another state through
error, the Commissioner may waive the interest.
(C) The Commissioner may waive all or a portion of the interest if the Commissioner determines
that the untimeliness of the payment was not caused by fault, neglect, or bad faith
on the part of the employer.
(b) In addition to other remedies and proceedings authorized by this chapter, a civil
action in the name of the Commissioner may be maintained and the remedies available
in a civil action, including attachment and trustee process, shall be available to
the Commissioner for the collection of contributions, interest, and penalties under
this chapter.
(c) An employer failing, for any two calendar quarters during the preceding 20 calendar
quarters, to make return or to pay contributions required under this chapter, and
who has not ceased to be an employer as provided in section 1323 of this subchapter,
may be required by the Commissioner to furnish a good and sufficient bond conditioned
upon the payment of the delinquent contributions, together with interest and penalty
from the due date of the delinquent contributions, and containing any terms required
by the Commissioner. An employer who fails to furnish a bond when required by the
Commissioner may be enjoined from employing individuals in employment, as defined
by this chapter, upon complaint of the Commissioner in the Superior Court of any county
in which the employer is doing business, until the contributions due, together with
interest and penalty, are paid to the Commissioner.
(d) In the event of an employer’s dissolution, adjudicated insolvency, adjudicated bankruptcy,
receivership, assignment for benefit of creditors, or judicially confirmed extension
proposals or composition, claims for contributions due under this chapter and for
interest on the unpaid contributions shall be a lien upon the employer’s assets and
shall have priority over all other claims except expenses of administration, taxes,
wage claims, and prior liens valid under the laws of this State.
(e) No action shall be commenced for the collection of contributions, interest, and penalties
under this chapter more than three years after the date on which the contributions
became due and payable, unless prior to the expiration of the three-year period:
(1) an assessment proceeding has been instituted under the provisions of section 1330 of this title;
(2) a civil action has been instituted under subsection (b) of this section; or
(3) a lien has been created under section 1336 of this title.
(f) The provisions of subsection (e) of this section shall not apply where an employer
intentionally fails or refuses to file a report with the Commissioner or to include
in any report all wages that the employer has paid, or otherwise attempts to avoid
or reduce liability for the payment of contributions. (Amended 1959, No. 329 (Adj. Sess.), § 22, eff. March 1, 1961; 1961, No. 210, § 15, eff. July 11, 1961; 1965, No. 27, eff. April 14, 1965; 1967, No. 61; 1969, No. 41; 1983, No. 16, § 6; 1985, No. 121 (Adj. Sess.), § 1, eff. April 16, 1986; 1987, No. 100, § 2; 2017, No. 74, § 50; 2021, No. 105 (Adj. Sess.), § 408, eff. July 1, 2022; 2023, No. 85 (Adj. Sess.), § 187, eff. July 1, 2024.)
§ 1330. Assessment provided
When any employer fails to pay any contributions or payments required under this chapter,
the Commissioner shall make an assessment of contributions against the employer together
with applicable interest and penalty. After making the assessment, the Commissioner
shall give notice to the employer electronically or by ordinary or certified mail,
and the assessment shall be final unless the employer petitions for a hearing on the
assessment pursuant to section 1331 of this subchapter. (Amended 1961, No. 210, § 7, eff. July 11, 1961; 1989, No. 8, § 1; 1989, No. 8, § 1; 1991, No. 82, § 2; 2023, No. 85 (Adj. Sess.), § 188, eff. July 1, 2024; 2025, No. 40, § 12, eff. July 1, 2025.)
§ 1331. Notice; hearing
(a) Any employer against whom an assessment is made may, within 30 days after the date
of the assessment, file with the Commissioner a petition for a hearing before a referee
appointed for that purpose. The petition shall set forth specifically and in detail
the grounds upon which it is claimed the assessment is erroneous.
(b) Hearing or hearings on the assessment shall be held by the referee at times and places
provided by the rules of the Board and due notice of the time and place of the hearing
or hearings shall be given electronically or by ordinary or certified mail to the
petitioner.
(c) After the hearing, the petitioner shall be promptly notified electronically or by
ordinary or certified mail of the findings of fact, conclusions, and decision of the
referee.
(d) The decision of the referee shall be final unless the employer or Commissioner makes
application for review of the decision by the Board within 30 days after the date
of the decision or unless the Board, on its own motion within the same period, initiates
a review of the decision. (Amended 1959, No. 329 (Adj. Sess.), § 22, eff. March 1, 1961; 1961, No. 210, § 8, eff. July 11, 1961; 1989, No. 8, § 2; 1991, No. 82, § 3; 2023, No. 85 (Adj. Sess.), § 189, eff. July 1, 2024; 2025, No. 40, § 13, eff. July 1, 2025.)
§ 1332. Review by Board; Supreme Court appeal
(a) The Board, upon an application filed or on its own motion, within the time specified
in section 1331 of this subchapter, shall, on notice to interested parties, review
the decision of the referee.
(b) Before rendering its decision, the Board may order the taking of additional evidence
by the referee or, in its discretion, the Board may hear additional evidence to be
made a part of the record in the case.
(c) Upon the basis of evidence previously submitted in the case and any additional evidence
the Board may take or direct to be taken, the Board may affirm, modify, or reverse
the findings and conclusions of the referee and shall render its decision.
(d) The parties shall be promptly notified electronically or by ordinary or certified
mail of the findings of fact, conclusions, and decision of the Board. The decision
of the Board shall be final unless it is appealed to the Supreme Court. (Amended 1959, No. 329 (Adj. Sess.), § 22, eff. March 1, 1961; 1961, No. 210, § 9, eff. July 11, 1961; 1971, No. 185 (Adj. Sess.), § 195, eff. March 29, 1972; 1989, No. 8, § 3; 1991, No. 82, § 4; 2023, No. 85 (Adj. Sess.), § 190, eff. July 1, 2024; 2025, No. 40, § 14, eff. July 1, 2025.)
§ 1333. Repealed. 1961, No. 210, § 17, eff. July 11, 1961.
§ 1334. Judgment; exception
(a) Any liability for contributions, payments, penalties, interest, and costs imposed
under this chapter becomes, from the time the liability is due and payable, a debt
of the liable employer or employing unit to the State for the benefit of the Unemployment
Compensation Fund and the Contingent Fund to be recovered in a civil action.
(b) The Commissioner may file in the Superior Court for the county in which the employer
resides, or the Washington Superior Court if the employer is a nonresident, a certified
copy of an assessment for contributions from which an appeal has not been taken within
the time allowed. The court, after due notice to all interested parties shall summarily
render a final judgment in accordance with the assessment. The judgment shall have
the same effect, and all proceedings in relation to the judgment shall be the same,
as though the judgment had been rendered in an action duly heard and determined by
the court, provided, however, there shall not be an appeal from the judgment except
on matters of law heard and determined in the court.
(c) When an assessment has been made under section 1330 of this subchapter from which
a timely appeal has not been taken or when any appeal taken has been finally determined
under sections 1331 and 1332 of this subchapter, the Commissioner may, as an additional
or alternate remedy to other remedies and proceedings authorized by this chapter,
issue a warrant directed to the sheriff of any county of this State. The warrant shall
command the sheriff to levy upon and sell the real and personal property of any person
liable for unpaid contributions, payments, interest, penalties, and costs due under
this chapter, for payment of the amount due and the cost of executing the warrant,
and to return the warrant to the Commissioner and to pay the Commissioner the money
collected by virtue of the warrant within 60 days after receipt of the warrant. The
sheriff shall within five days after receipt of the warrant file with the county clerk
a copy of the warrant, and the clerk shall then enter in the judgment docket the name
of the person liable, the amount of the contributions, payments, interest, penalties,
and costs for which the warrant is issued and the date when the copy is filed. The
levy and sale shall be effected in the manner prescribed for levy of execution. If
a warrant is returned not fully satisfied, the Commissioner may issue new warrants
for the balance due in accordance with the procedure set forth in this subsection. (Amended 1959, No. 329 (Adj. Sess.), § 22, eff. March 1, 1961; 1961, No. 210, § 15, eff. July 11, 1961; 1973, No. 193 (Adj. Sess.), § 3, eff. April 9, 1974; 1977, No. 64, § 15; 2023, No. 85 (Adj. Sess.), § 191, eff. July 1, 2024.)
§ 1335. Repealed. 1961, No. 210, § 17, eff. July 11, 1961.
§ 1336. Lien; fee; foreclosure
(a)(1) All contributions, interest, penalties, and costs thereon due and payable by an employer
under the provisions of this chapter shall be a lien upon the real estate of the employer
from the date a lien for the contributions, interest, penalties, and costs is entered
in the land records of the town in which is located real estate of the employer.
(2) A lien for contributions, penalties, interest, and costs shall be created upon the
personal property or franchises of the employer if the lien is recorded in the town
clerk’s office of the town in which the employer resides. If the employer is a corporation
or a co-partnership, then the lien on the franchises or personal property of the employer
shall be recorded in the town clerk’s office in the town in which the employer has
its principal place of business in the State.
(3) Liens created under this section shall show the name of the employer, and the amount
of contributions and other indebtedness due to the Commissioner of Labor.
(4) A lien created under this section shall be a lien prior to all other liens except
liens created for taxes due the State of Vermont, the federal government, or a town
or municipality in this State and wage claims. A lien created under this section shall
not be a prior lien to liens on record prior to the recording of the lien provided
for by this section.
(b) There shall be paid to the town clerk by the Commissioner for recording each lien,
and the discharge of a recorded lien, the fees prescribed in 32 V.S.A. § 1671. The fees shall be added to the amount due from the employer under the lien.
(c) An employer upon whose property a lien is created as provided in this section shall
be given notice of the lien by ordinary or certified mail within five days after the
creation of the lien.
(d) When the contributions, interest, penalties, and costs, secured by a lien in accordance
with this section, remains unpaid for 90 days after the creation of the lien, the
lien on personal property may be foreclosed in the same manner as provided by law
for the foreclosure of mortgages on personal property; and a lien on real property
may be foreclosed in the same manner as provided by law for the foreclosure of mortgages
on real property. The remedy provided by this section shall be in addition, or as
an alternative, to the remedy provided by section 1329 of this subchapter for the
collection of unpaid contributions.
(e) In the event the employer files a written protest to the creation of the lien within
30 days after the date the lien is created, assessment proceedings as provided in
sections 1329–1334 of this subchapter shall be had.
(f) If final judgment is in favor of the employer, the property of the employer shall
be discharged from the lien. If final judgment is against the employer, the property
under the lien shall be held to respond to the judgment rendered and may be taken
in execution thereon unless the employer otherwise satisfies the execution and charges.
(g) The Commissioner shall issue and record a certificate of release of the lien if:
(1) The Commissioner finds that the liability for contributions due, together with interest,
penalty, and costs, has been satisfied or has become unenforceable.
(2) There is furnished to the Commissioner a bond with surety approved by the Commissioner
in a penal sum sufficient to equal the amount of contributions due, together with
interest, penalty, and costs. The bond shall be conditioned upon the payment of any
judgment rendered in proceedings regularly instituted by the Commissioner to enforce
collection of the amount due.
(3) The Commissioner determines at any time that the interest of the State of Vermont
in the property has no value. (Amended 1959, No. 329 (Adj. Sess.), § 22, eff. March 1, 1961; 1961, No. 210, § 15, eff. July 11, 1961; 1963, No. 58; 1969, No. 40, § 1, eff. April 4, 1969; 1981, No. 66, § 5(b), eff. May 1, 1981; 1989, No. 8, §§ 4, 5; 1991, No. 82, § 5; 2005, No. 103 (Adj. Sess.), § 3, eff. April 5, 2006; 2023, No. 85 (Adj. Sess.), § 192, eff. July 1, 2024.)
§ 1337. Adjustments and refunds
(a) If not later than three years after the date on which any contributions or interest
thereon became due, an employer who has paid the contributions or interest thereon
applies for an adjustment of the contributions or interest in connection with subsequent
contribution payments, or for a refund of the amounts paid because an adjustment cannot
be made, and the Commissioner determines that the payments or any portion of the payments
were erroneously collected, the Commissioner shall allow the employer to make an adjustment
for the amounts erroneously collected, without interest, in connection with subsequent
payments by the employer, or if the adjustment cannot be made, shall refund the amount
without interest from the Fund.
(b) The Commissioner may make an adjustment or refund on the Commissioner’s own initiative
for the same reasons and within the time period set forth in subsection (a) of this
section. (Amended 1959, No. 329 (Adj. Sess.), § 22, eff. March 1, 1961; 1961, No. 210, § 15, eff. July 11, 1961; 1997, No. 101 (Adj. Sess.), § 3; 2023, No. 85 (Adj. Sess.), § 193, eff. July 1, 2024.)
§ 1337a. Administrative determination; hearing on
(a) Any employing unit aggrieved by an administrative determination affecting its rate
of contributions, its rights to adjustment or refund on contributions paid, its coverage
as an employer, or its termination of coverage may, within 30 days after the date
of the determination, file with the Commissioner a petition for a hearing on the determination.
The petition shall set forth specifically and in detail the grounds upon which it
is claimed the administrative determination is erroneous. Hearing or hearings on the
petition shall be held by a referee appointed for that purpose, at times and places
as provided by rules of the Board. Notice of the time and place of the hearing or
hearings shall be given electronically or by ordinary or certified mail to the petitioner.
(b) After a hearing pursuant to subsection (a) of this section, the petitioner shall be
promptly notified electronically or by ordinary or certified mail of the findings
of fact, conclusions, and decision of the referee. The decision of the referee shall
be final unless the employing unit or Commissioner makes application for review of
the decision by the Board within 30 days after the date of the decision or unless
the Board, on its own motion within the same period, initiates a review of the decision. (Added 1961, No. 210, § 10, eff. July 11, 1961; amended 1965, No. 76, § 1, eff. May 26, 1965; 1989, No. 8, § 6; 1991, No. 82, § 6; 2023, No. 85 (Adj. Sess.), § 194, eff. July 1, 2024; 2025, No. 40, § 15, eff. July 1, 2025.)
§ 1338. Weekly benefits
(a) Each eligible individual who is totally unemployed in any week shall be paid with
respect to a the week a weekly benefit amount determined as provided in this section.
(b), (c) [Repealed.]
(d)(1) To qualify for benefits an individual must:
(A) have been paid in one quarter of the individual’s base period wages in employment
with an employer or employers subject to this chapter that equal at least $1,000.00;
(B) have been paid in the individual’s base period additional wages in employment with
an employer or employers subject to this chapter that equal or exceed 40 percent of
the total wages paid in the highest quarter of the individual’s base period; and
(C) have earned subsequent to the beginning of the individual’s most recent benefit year
wages in employment with an employer or employers subject to this chapter that equal
or exceed four times the individual’s weekly benefit amount as determined under subsection
(e) of this section for that prior benefit year.
(2) The base period wages shall not include any wages paid by an employing unit based
on a separation for gross misconduct under subdivision 1344(a)(2)(B) of this title.
[Subsection (e) effective until occurrence of contingency; see also contingent amendments
to subsection (e) by 2021, No. 183 §§ 52d–52e and 52g set out below.]
(e) An individual’s weekly benefit amount shall be determined by dividing the individual’s
two high quarter total subject wages required under subdivision (d)(1) of this section
by 45, provided that the weekly benefit amount so determined shall not exceed the
maximum weekly benefit amount computed pursuant to subsection (f) of this section.
[Contingent amendment to subsection (e) by 2021, No. 183 (Adj. Sess.), §§ 52d and 52e; see also subsection (e) effective until occurrence of contingencies set out above and contingent amendment to subsection (e) by 2021, No. 183 (Adj. Sess.), § 52g set out below.]
(e) An individual’s weekly benefit amount shall be determined by dividing the individual’s
two high quarter total subject wages required under subdivision (d)(1) of this section
by 45 and adding $25.00 to the resulting quotient, provided that the weekly benefit
amount so determined shall not exceed the maximum weekly benefit amount computed pursuant
to subsection (f) of this section.
[Contingent amendment to subsection (e) by 2021, No. 183 (Adj. Sess.), § 52g; see also subsection (e) effective until occurrence of contingencies and contingent amendments to subsection (e) by 2021, No. 183 (Adj. Sess.), §§ 52d and 52e set out above.]
(e) An individual’s weekly benefit amount shall be determined by dividing the individual’s
two high quarter total subject wages required under subdivision (d)(1) of this section
by 45, provided that the weekly benefit amount so determined shall not exceed the
maximum weekly benefit amount computed pursuant to subsection (f) of this section.
(f)
[Subdivision (f)(1) effective until occurrence of contingency; see also contingent
amendments to subdivision (f)(1) by 2021, No. 183, §§52c–52e and 52g set out below.]
(1) The maximum weekly benefit amount shall be annually adjusted on the first day of the
first calendar week in July to an amount equal to the sum of $60.00 plus 57 percent
of the State annual average weekly wage as determined by subsection (g) of this section.
[Contingent amendment to subdivision (f)(1) by 2021, No. 183 (Adj. Sess.), §§ 52c and 52g; see also subdivision (f)(1) effective until occurrence of contingencies set out above and contingent amendment to subdivision (f)(1) by 2021, No. 183 (Adj. Sess.), §§ 52d and 52e set out below.]
(1) The maximum weekly benefit amount shall be annually adjusted on the first day of the
first calendar week in July to an amount equal to 57 percent of the State annual average
weekly wage as determined by subsection (g) of this section.
[Contingent amendment to subdivision (f)(1) by 2021, No. 183 (Adj. Sess.), §§ 52d and 52e; see also subdivision (f)(1) effective until occurrence of contingencies and contingent amendment to subdivision (f)(1) by 2021, No. 183 (Adj. Sess.), §§ 52c and 52g set out above.]
(1) The maximum weekly benefit amount shall be annually adjusted on the first day of the
first calendar week in July to an amount equal to the sum of $25.00 plus 57 percent
of the State annual average weekly wage as determined by subsection (g) of this section.
(2) Notwithstanding any provision of subdivision (1) of this subsection to the contrary:
(A) The maximum weekly benefit amount shall not increase in any year that advances made
to the State Unemployment Compensation Fund pursuant to Title XII of the Social Security
Act, as amended, remain unpaid.
(B) The maximum weekly benefit amount shall not decrease.
(g) On or before the first day of June of each year, the total wages reported on contribution
reports for the preceding calendar year shall be divided by the average monthly number
of covered workers (determined by dividing the total covered employment reported on
contribution reports pursuant to this chapter for the preceding year by 12). The State
average annual wage thus obtained shall be divided by 52 and the State average weekly
wage thus determined shall be rounded down to the nearest dollar.
(h) Effective with the first full calendar week of each July, the minimum quarterly wage
requirement of subdivision (d)(1) of this section shall be adjusted by a percentage
increase equal to the percentage increase, if any, in the State minimum wage effective
during the prior calendar year. This adjusted minimum quarterly wage requirement shall
be applicable to new claims for benefits with effective dates during or after the
first full calendar week of each July.
(i)(1) An individual filing a new claim for unemployment compensation shall, at the time
of filing of the claim, be advised that:
(A) unemployment compensation is subject to federal and State income tax;
(B) requirements exist pertaining to estimated tax payments;
(C) the individual may elect to have federal income tax deducted and withheld from the
individual’s payment of unemployment compensation in the amount specified in the federal
Internal Revenue Code;
(D) the individual who elects to have federal income tax deducted and withheld shall have
State income tax withheld at 24 percent of the federal rate; and
(E) the individual shall be permitted to change a previously elected withholding once
during each benefit year.
(2) Amounts deducted and withheld from unemployment compensation shall remain in the Unemployment
Compensation Trust Fund until transferred to the federal and State taxing authority
as a payment of income tax.
(3) The Commissioner shall follow all procedures specified by the U.S. Department of Labor
and the federal Internal Revenue Service pertaining to the deducting and withholding
of income tax.
(4) Amounts shall be deducted and withheld under this section only after amounts are deducted
and withheld for any overpayments of unemployment compensation, child support obligations,
or other amounts required to be deducted and withheld under this chapter. (Amended 1959, No. 51, § 1; 1959, No. 329 (Adj. Sess.), § 22, eff. March 1, 1961; 1961, No. 210, § 15, eff. July 11, 1961; 1963, No. 84, § 3; 1969, No. 42, § 2; 1971, No. 71, § 1, eff. April 15, 1971; 1973, No. 231 (Adj. Sess.), §§ 2, 3; 1977, No. 64, § 16; 1981, No. 194 (Adj. Sess.), § 2, eff. June 20, 1982; 1983, No. 16, § 7, eff. May 1, 1983; 1985, No. 146 (Adj. Sess.), § 2; 1991, No. 183 (Adj. Sess.), § 4; 1993, No. 177 (Adj. Sess.), § 2; 1995, No. 85 (Adj. Sess.), § 1, eff. Jan. 1, 1997; 1997, No. 101 (Adj. Sess.), § 10; 2001, No. 143 (Adj. Sess.), § 65, eff. June 21, 2002; 2003, No. 70 (Adj. Sess.), § 64, eff. March 1, 2004; 2009, No. 2 (Sp. Sess.), § 2, eff. June 9, 2009; 2009, No. 124 (Adj. Sess.), § 3, eff. July 1, 2011; 2013, No. 173 (Adj. Sess.), § 3; 2021, No. 51, § 10, eff. June 1, 2021; 2021, No. 51, §§ 11, 12; 2021, No. 105 (Adj. Sess.), § 409, eff. July 1, 2022; 2021, No. 183 (Adj. Sess.), § 52b, eff. July 1, 2022; 2021, No. 183 (Adj. Sess.), §§ 52c–52e, 52g; 2023, No. 85 (Adj. Sess.), § 195, eff. July 1, 2024.)
§ 1338a. Disregarded earnings
(a) An individual shall be deemed “partially unemployed” in any week of less than full-time
work if the wages earned by the individual with respect to such week are less than
the weekly benefit amount the individual would be entitled to receive if totally unemployed
and eligible. As used in this section, “wages” in any one week includes only that
amount of remuneration rounded down to the nearest dollar that is in excess of 50
percent of the individual’s weekly wage.
(b) Notwithstanding subsection (a) of this section, an individual shall not be deemed
to be “partially unemployed” if the individual performed less than full-time work
only because there was a holiday in that week for which the individual was entitled
to holiday pay. (Added 1959, No. 64, eff. March 31, 1959; amended 1967, No. 246 (Adj. Sess.), § 1, eff. Feb. 20, 1968; 1971, No. 70, eff. April 15, 1971; 1979, No. 120 (Adj. Sess.). § 8, eff. April 14, 1980; 1991, No. 62; 2001, No. 56, § 2; 2009, No. 124 (Adj. Sess.), § 4, eff. July 1, 2012; 2013, No. 173 (Adj. Sess.), § 8; 2025, No. 40, § 19, eff. July 1, 2025.)
§ 1339. Weekly benefit for partial unemployment
Each eligible individual who is partially unemployed in any week shall be paid with
respect to such week a partial benefit. Such partial benefit shall be an amount equal
to the difference between his or her weekly benefit amount and his or her wages, as
used in section 1338a of this title, for such week. (Amended 1981, No. 86, § 11, eff. May 10, 1981.)
§ 1340. Computation of benefits
(a) Except as provided in subchapter 2 of this chapter, the maximum total amount of benefits
payable to any eligible individual during any benefit year shall not exceed the lesser
of 26 times his or her weekly benefit amount or 46 percent of the total wages paid
to the individual during his or her base period.
(b) An individual who is discharged by his or her last employing unit for misconduct connected
with his or her work under subdivision 1344(a)(1)(A) of this title is limited to a maximum amount during the benefit year which is the lesser of the
maximum amount determined under subsection (a) of this section or 23 times his or
her weekly benefit amount, provided that the individual has not already received more
than 23 weeks in his or her benefit year. (Amended 1959, No. 51, § 2; 1959, No. 107, § 2, eff. April 10, 1959; 1959, No. 329 (Adj. Sess.), § 22, eff. March 1, 1961; 1961, No. 210, § 15, eff. July 11, 1961; 1963, No. 84, § 5; 1971, No. 1, § 1, eff. Oct. 11, 1970; 2009, No. 156 (Adj. Sess.), § E.401.3, eff. June 3, 2010; 2009, No. 124 (Adj. Sess.), § 5, eff. July 1, 2011.)
§ 1340a. Self-Employment Assistance Program
(a) As used in this section:
(1) “Full-time basis” means that the individual is devoting the necessary time as determined
by the Commissioner to establish a business that will serve as a full-time occupation
for that individual.
(2) “Regular benefits” shall have the same meaning as in subdivision 1421(5) of this title.
(3) “Self-employment assistance activities” means activities approved by the Commissioner
in which an individual participates for the purpose of establishing a business and
becoming self-employed, including entrepreneurial training, business counseling, and
technical assistance.
(4) “Self-employment assistance allowance” means an allowance payable in lieu of regular
benefits from the Unemployment Compensation Trust Fund to an individual who meets
the requirements of this section.
(5) “Self-Employment Assistance Program” means the program under which an individual who
meets the requirements of subsection (d) of this section is eligible to receive an
allowance in lieu of regular benefits for the purpose of assisting that individual
in establishing a business and becoming self-employed.
(b) The weekly amount of the self-employment assistance allowance payable to an individual
shall be equal to the weekly benefit amount for regular benefits otherwise payable
pursuant to this title.
(c) The maximum amount of the self-employment assistance allowance paid pursuant to this
section shall not exceed the maximum amount of benefits established pursuant to section 1340 of this title with respect to any benefit year.
(d)(1) An individual may receive a self-employment assistance allowance if that individual:
(A) is eligible to receive regular benefits or would be eligible to receive regular benefits
except for the requirements described in subdivisions (2)(A) and (B) of this subsection
(d);
(B) is identified by a worker profiling system as an individual likely to exhaust regular
benefits;
(C) has received the approval of the Commissioner to participate in a program providing
self-employment assistance activities;
(D) is engaged actively on a full-time basis in activities that may include training related
to establishing a business and becoming self-employed; and
(E) has filed a weekly claim for the self-employment assistance allowance and provided
the information the Commissioner requires.
(2) A self-employment allowance shall be payable to an individual at the same interval,
on the same terms, and subject to the same conditions as regular benefits pursuant
to this chapter, except:
(A) the requirements of section 1343 of this title, relating to availability for work, efforts to secure work, and refusal to accept
work, are not applicable to the individual; and
(B)(i) the individual is not considered to be self-employed pursuant to subdivision 1301(24) of this title;
(ii) an individual who meets the requirements of this section shall be considered to be
unemployed pursuant to section 1338 of this title; and
(iii) an individual who fails to participate in self-employment assistance activities or
who fails to engage actively on a full-time basis in activities, including training,
relating to the establishment of a business and becoming self-employed shall be disqualified
from receiving an allowance for the week in which the failure occurs.
(e) The self-employment assistance allowance may be paid to up to 35 qualified individuals
at any time, provided that the number of qualified individuals receiving a self-employment
assistance allowance at any time shall not exceed five percent of the total number
of individuals receiving regular benefits at that time.
(f)(1) The self-employment assistance allowance shall be charged to the Unemployment Compensation
Trust Fund.
(2) In the event that the self-employment assistance allowance cannot be charged to the
Unemployment Compensation Trust Fund pursuant to subdivision (1) of this subsection,
the allowance shall be charged in accordance with section 1325 of this title.
(g) The Commissioner may approve a program upon determining that it will provide self-employment
assistance activities to qualified individuals.
(h)(1) The Commissioner shall adopt rules to implement this section.
(2) The rules adopted pursuant to this subsection shall include a detailed explanation
of how an individual may apply for and establish eligibility for the Self-Employment
Assistance Program and any criteria that the Commissioner will consider in determining
whether to approve a program.
(i) The Commissioner may suspend the Self-Employment Assistance Program with approval
of the Secretary of Administration and notice to the House Committee on Commerce and
Economic Development and the Senate Committee on Finance in the event that the Program
presents unintended adverse consequences to the Unemployment Compensation Trust Fund.
(j) The Self-Employment Assistance Program may not result in any cost to the Unemployment
Trust Fund in excess of the cost that would be incurred by the State and charged to
the Fund if the Program were not in operation. (Added 2019, No. 85 (Adj. Sess.), § 21, eff. Feb. 20, 2020.)
§ 1341. Repealed. 1965, No. 76, § 2, eff. May 26, 1965.
§ 1342. Repealed. 1959, No. 83, § 1, eff. April 2, 1959.
§ 1343. Conditions
(a) An unemployed individual shall be eligible to receive benefits with respect to any
week only if the Commissioner finds that the individual has met all of the following
requirements:
(1) Has registered for work at and thereafter has continued to report at an employment
office in accordance with rules adopted by the Board.
(2) Has made a claim for benefits in accordance with the provisions of section 1346 of this title.
(3)(A) Is able to work and is available for work. In determining the availability of any
individual for work during any week, the Commissioner may require, in addition to
registration at any employment office, that the individual participate in reemployment
services or make other efforts to secure suitable work as the Commissioner reasonably
requires under the circumstances and to supply proper evidence of the efforts to secure
work.
(B) If, without good cause, the individual fails to comply with the requirements of subdivision
(A) of this subdivision (a)(3), the individual shall be ineligible for each week the
failure continues. A claimant shall not be ineligible in any week of unemployment
for failure to comply with the provisions of this subdivision (a)(3) if the failure
is due to an illness or disability that occurs during a week for which the individual
was entitled to waiting period credit or benefit payments and after the claimant has
registered for work and filed a claim for benefits and no work that would have been
considered suitable but for the illness or disability has been offered after the beginning
of the illness or disability.
(4) [Repealed.]
(5) Qualifies for a weekly benefit computed in accordance with section 1338 of this title.
(6) 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 Commissioner.
(7) Is not self-employed or engaged in self-employment to the extent that it makes the
individual unavailable for work.
(8) Has given written notice of resignation to the individual’s employer and the employer
subsequently made the termination of employment effective prior to the separation
date given in the notice. Provided that the claimant could not establish good cause
for leaving work pursuant to subdivision 1344(a)(2)(A) of this subchapter and was
not discharged for misconduct as provided in subdivision 1344(a)(1)(A) of this subchapter
or for gross misconduct as provided in subdivision 1344(a)(2)(B) of this subchapter,
in no case shall unemployment benefits awarded under this subdivision exceed four
weeks or extend beyond the date of separation as provided in the employee’s notice
to the employer.
(b) Notwithstanding any other provisions of this chapter, any otherwise eligible claimant
regularly attending a training course or program approved for the claimant by the
Commissioner shall be deemed to be available for work and while attending the course
and making satisfactory progress in the training shall not be denied benefits solely
because of attendance at the course or because of the claimant’s refusal of an offer
of suitable work. Benefits paid to an eligible claimant regularly attending a training
course or program approved pursuant to this subsection for any unemployment following
the claimant’s refusal of an offer of suitable work, shall not be charged against
the experience rating record of any employer, but shall be charged to the Fund.
(c) Benefits are payable on the basis of service in employment as defined in subdivisions
1301(6)(A)(ix) and (x) of this subchapter, in the same amount, on the same terms,
and subject to the same conditions as benefits payable on the basis of other service
subject to this chapter, except that:
(1) With respect to services performed in an instructional, research, or principal administrative
capacity for an educational institution, benefits shall not be payable on the basis
of such services for any week of unemployment commencing during the period between
two successive academic years or terms (or, when an agreement provides instead for
a similar period between two regular but not successive terms, during such period)
or during a period of paid sabbatical leave provided for in the individual’s contract,
to any individual if the individual performs such services in the first of the academic
years or terms and if there is a contract or reasonable assurance that the individual
will perform services in any such capacity for any educational institution in the
second of the academic years or terms.
(2) With respect to services performed in any other capacity for an educational institution,
benefits shall not be payable on the basis of such services to any individual for
any week of unemployment that commences during a period between two successive academic
years or terms if the individual performs such services in the first of the academic
years or terms and there is a reasonable assurance that the individual will perform
such services for any educational institution in the second of the academic years
or terms, except that if benefits are denied to any individual under this subdivision
and the individual was not offered an opportunity to perform such services for the
educational institution for the second of the academic years or terms, the individual
shall be entitled to a retroactive payment of the benefits for each week for which
the individual filed a timely claim for benefits and for which benefits were denied
solely by reason of this subdivision.
(3) With respect to any services described in subdivision (1) or (2) of this subsection,
benefits shall not be payable on the basis of services in any such capacities to any
individual for any week that commences during an established and customary vacation
period or holiday recess if the individual performs such services in the period immediately
before the vacation period or holiday recess, and there is a reasonable assurance
that the individual will perform such services in the period immediately following
the vacation period or holiday recess.
(4) With respect to any services described in subdivision (1) or (2) of this subsection,
benefits shall not be payable on the basis of services in any such capacities as specified
in subdivisions (1), (2), and (3) of this subsection to any individual who performed
such services in an educational institution while in the employ of an educational
service agency. As used in this subdivision, the term “educational service agency”
means a governmental agency or governmental entity that is established and operated
exclusively for the purpose of providing such services to one or more educational
institutions.
(d) Notwithstanding any other provision of this chapter, any otherwise eligible claimant
who was separated from employment due to an accident or injury resulting in a temporary
total disability for which the claimant received workers’ compensation benefits under
chapter 9 of this title shall be entitled to receive, after the termination of the
period of temporary total disability, benefits that would have been available at the
time of separation from employment. Payment of benefits for any week under this section
shall be made only if, at the time the claimant files the initial claim, the claimant
was not monetarily eligible for benefits under subsection 1338(d) of this subchapter
and the claim is filed within six months after the termination of the period of temporary
total disability.
(e) Benefits shall not be paid to any individual on the basis of any services, substantially
all of which consist of participating in sports or athletic events or training or
preparing to so participate, for any week that commences during the period between
two successive sport seasons, or similar periods, if the individual performed such
services in the first of the seasons, or similar periods, and there is a reasonable
assurance that the individual will perform such services in the later of the seasons,
or similar periods.
(f)(1) Benefits shall not be payable on the basis of services performed by an alien unless
the alien is an individual who was lawfully admitted for permanent residence at the
time the services were performed, was lawfully present for purposes of performing
the services, or was permanently residing in the United States under color of law
at the time the services were performed, including an alien who was lawfully present
in the United States as a result of the application of the provisions of 8 U.S.C. § 1182(d)(5). Provided, that any modifications to the provisions of 26 U.S.C. § 3304(a)(14) as provided by Pub. L. No. 94-566 that specify other conditions or other effective date than stated in this section for the denial of benefits based on services performed by aliens and which modifications are required to be implemented under state law as a condition for full tax credit against the tax imposed by the Federal Unemployment Tax Act, shall be deemed applicable under the provisions of this section.
(2) Any data or information required of individuals applying for benefits to determine
whether benefits are not payable to them because of their alien status shall be uniformly
required from all applicants for benefits.
(3) In the case of an individual whose application for benefits would otherwise be approved,
no determination that benefits to such individual are not payable because of his or
her alien status shall be made except upon a preponderance of the evidence. (Amended 1959, No. 51, § 3; 1959, No. 329 (Adj. Sess.), § 22, eff. March 1, 1961; 1961, No. 210, § 15, eff. July 11, 1961; 1963, No. 84, § 4; 1965, No. 94, eff. June 14, 1965; 1971, No. 77, § 6, eff. Dec. 31, 1971; 1977, No. 64, §§ 17, 24, eff. Jan. 1, 1978; 1981, No. 86, § 1, eff. May 3, 1981, § 12, eff. May 10, 1981; 1981, No. 182 (Adj. Sess.); 1983, No. 16, § 9, eff. April 4, 1983; 1983, No. 124 (Adj. Sess.), §§ 4, 5, eff. April 1, 1984; 1989, No. 132 (Adj. Sess.), § 6; 1991, No. 183 (Adj. Sess.), § 5; 1993, No. 177 (Adj. Sess.), § 3; 1997, No. 101 (Adj. Sess.), § 8; 1999, No. 126 (Adj. Sess.), § 2; 2001, No. 56, § 4; 2009, No. 124 (Adj. Sess.), § 6, eff. July 1, 2012; 2009, No. 124 (Adj. Sess.), § 16, eff. July 1, 2017; 2013, No. 173 (Adj. Sess.), § 5; 2017, No. 74, § 51; 2023, No. 85 (Adj. Sess.), § 196, eff. July 1, 2024.)
§ 1344. Disqualifications
(a) An individual shall be disqualified for benefits:
(1) For not more than 15 weeks nor less than six weeks immediately following the filing
of a claim for benefits, in addition to any applicable waiting period, as may be determined
by the Commissioner according to the circumstances in each case, if the Commissioner
finds that:
(A) The individual has been discharged by the individual’s last employing unit for misconduct
connected with the individual’s work.
(B) The individual was separated from the individual’s last employing unit because the
individual became unable to perform all or an essential part of the individual’s normal
duties in the employment without good cause attributable to the employing unit because
of the consequences that flow from the individual’s conviction for a felony or misdemeanor
or from an action or order of a judge or court in any criminal or civil matter. In
the event a conviction or the action or order of any judge or court in any criminal
or civil matter is rescinded or expunged, the individual may be eligible for benefits
from the time the individual would have otherwise been eligible for benefits.
(2) For any week benefits are claimed, except as provided in subdivision (3) of this subsection,
until the individual has presented evidence to the satisfaction of the Commissioner
that the individual has performed services in employment for a bona fide employer
and has had earnings in excess of six times the individual’s weekly benefit amount
if the Commissioner finds that the individual is unemployed because:
(A) The individual left the employ of the individual’s last employing unit voluntarily
without good cause attributable to the employing unit. An individual shall not suffer
more than one disqualification by reason of such separation. However, an individual
shall not be disqualified for benefits if the individual left such employment to accompany
a spouse who:
(i) is on active duty with the U.S. Armed Forces and is required to relocate due to permanent
change of station orders, activation orders, or unit deployment orders, and when such
relocation would make it impractical or impossible, as determined by the Commissioner,
for the individual to continue working for such employing unit; or
(ii) holds a commission in the U.S. Foreign Service and is assigned overseas, and when
such relocation would make it impractical or impossible, as determined by the Commissioner,
for the individual to continue working for such employing unit.
(B) The individual has been discharged by the individual’s last employing unit for gross
misconduct connected with the individual’s work. As used in this section, “gross misconduct”
means conduct directly related to the employee’s work performance that demonstrates
a flagrant, wanton, and intentional disregard of the employer’s business interest
and that has direct and significant impact upon the employer’s business interest,
including theft, fraud, intoxication, intentional serious damage to property, intentional
infliction of personal injury, any conduct that constitutes a felony, or repeated
incidents after written warning of either unprovoked insubordination or public use
of profanity. An individual shall not suffer more than one disqualification by reason
of such separation.
(C) The individual has failed, without good cause, either to apply for available, suitable
work when directed by the employment office or the Commissioner, or to accept suitable
work when offered, or has during the course of a job interview for available employment
made verbal statements that are either untrue, show an unreasonable lack of interest,
or are calculated to preclude an offer of work or a directive being made, or to return
to the individual’s customary self-employment, if any, when directed by the Commissioner.
An individual shall not suffer more than one disqualification for these causes.
(D) In determining whether or not any work or employment is suitable for an individual
for purposes of this subdivision, the Commissioner shall consider the degree of risk
involved to the individual’s health, safety, and morals; the individual’s physical
fitness and prior training; the individual’s experience and prior earnings; the individual’s
length of unemployment and prospects for securing local work in the individual’s customary
occupation; and the distance of the available work from the individual’s residence.
(E) Notwithstanding any other provisions of this chapter, no work shall be deemed suitable
and benefits shall not be denied under this chapter to any otherwise eligible individual
for refusing to accept new work under any of the following conditions:
(i) if the position offered is vacant due directly to a strike, lockout, or other dispute;
(ii) if the wages, hours, or other conditions of the work offered are substantially less
favorable to the individual than those prevailing for similar work in the locality;
(iii) if, as a condition of being employed, the individual would be required to join a union
or to resign from or refrain from joining any bona fide labor organization.
(F)(i) Notwithstanding any other provisions of this chapter:
(I) An otherwise eligible individual shall not be denied benefits for any week if the
individual is in training approved under section 236(a)(1) of the Trade Act of 1974,
19 U.S.C. § 2296(a), or the individual is in approved training by reason of leaving work to enter training,
provided the work left is not suitable employment as defined in section 236(e) of
the Trade Act of 1974, 19 U.S.C. § 2296(e).
(II) An otherwise eligible individual shall not be denied benefits for any week because
of the application to any week in approved training of provisions in this law, or
any federal unemployment insurance law administered by the Department, relating to
availability for work, active search for work, or refusal to accept work.
(ii) Benefits paid to an eligible claimant regularly attending a training course approved
under the Trade Act of 1974, 19 U.S.C. § 2296(e), following a refusal of work or leaving of unsuitable work shall not be charged against
the experience-rating record of any employer but shall be charged to the Fund.
(G) [Repealed.]
(H) [Repealed.]
(3) For not more than six weeks nor less than one week immediately following the filing
of a claim for benefits (in addition to any applicable waiting period), as may be
determined by the Commissioner according to the circumstances in each case, if the
Commissioner finds that the individual has left the employ of the individual’s last
employing unit without good cause attributable to the employing unit because of a
health condition, as certified by a health care provider, as defined in 18 V.S.A. § 9432(9), that precludes the discharge of duties inherent in such employment.
(4) For any week with respect to which the Commissioner finds that the individual’s total
or partial unemployment is due to a stoppage of work that exists because of a labor
dispute at the factory, establishment, or other premises at which the individual is
or was last employed, provided that this subdivision shall not apply if:
(A) the individual is not participating in or financing or directly interested in the
labor dispute that caused the stoppage of work; or
(B) the stoppage of work was due solely to a lockout, effected by the employer in order
to gain some concession from employees. A lockout does not include a temporary suspension
of work in response to:
(i) actual or imminent damage to property of the employer; or
(ii) a purposeful effort by employees to reduce productivity.
(5) For any week with respect to which the individual is receiving or has received remuneration
in the form of any of the following:
(A) Wages in lieu of notice.
(B) Vacation pay or holiday pay, provided that:
(i) Vacation pay due at time of separation in accordance with a work agreement (whether
a formal contract or established custom) shall be allocated to the period immediately
following separation, or if due subsequent to separation, it shall be allocated to
the week in which due or the next following week, and that number of weeks immediately
following as required to equal the total of the weeks of pay due. Any mutual agreement
between the employer and employee(s) (whether or not payment is made), allocating
such remuneration to any period during which work is performed, within four weeks
prior to the date of separation, shall not be valid for the purpose of determining
unemployment compensation entitlement or waiting period credit purposes and such payment
shall be allocated to the period immediately following separation.
(ii) There shall be no disqualification amount for any holiday.
(C) Severance pay, back pay awards, and back pay settlements. These payments, awards,
and settlements shall be allocated to the week(s) and in the manner as specified in
the order or agreement, or, in the absence of such specificity, to the week(s) and
in the manner that, in the judgment of the Commissioner, would be reasonable.
(D) Compensation for temporary partial disability or temporary total disability under
the workers’ compensation law of any state or under a similar law of the United States.
(E)(i) A pension under a plan maintained or contributed to by a base period or chargeable
employer, which shall include a governmental or other pension, retirement or retired
pay, annuity, or any other similar periodic payment. The weekly benefit amount payable
to an individual for the week in which the individual receives remuneration from a
pension, retirement or retired pay, annuity, or similar payment shall be reduced,
but not below zero:
(I) by the entire prorated weekly amount of the pension if no contributions to the plan
were made by the individual;
(II) by no part of the pension if the entire contributions to the plan were provided by
the individual, or by the individual and an employer, or any other person or organization;
or
(III) by no part of the pension if the services performed by the individual during the base
period, or remuneration received for the services, for the employer did not affect
the individual’s eligibility for, or increase the amount of, the pension, retirement
or retired pay, annuity, or similar payment.
(ii) If the remuneration specified in this subdivision, after applying the provisions of
this subdivision, is less than the benefits that would otherwise be due under this
chapter, the individual shall be entitled to receive for the week, if otherwise eligible,
benefits reduced by the amount of the remuneration, after applying the provisions
of this subdivision, and after rounding the remuneration to the next higher dollar,
and the provisions of subdivision 1301(9) and sections 1338a and 1339 of this title do not apply.
(F) [Repealed.]
(6) For any week with respect to which or a part of which the individual has received
or is seeking to receive unemployment benefits under an unemployment compensation
law of another state or of the United States, provided that if the appropriate agency
of the other state or of the United States finally determines that the individual
is not entitled to unemployment benefits, this disqualification shall not apply.
(b) In periods of “high level unemployment” an individual shall be disqualified for benefits
for not more than 12 nor less than six consecutive weeks immediately following the
filing of a claim for benefits, as may be determined by the Commissioner according
to the circumstances, when it is found that the individual would otherwise be disqualified
under the provisions of subdivision (a)(2)(A) of this section, and except that the
disqualification provided by this subdivision shall terminate if an individual has
performed service in any employment as provided by subdivision (a)(2) of this section.
(c) Notwithstanding any other provision of this chapter, any individual who has been disqualified
for regular or extended benefits pursuant to the provisions of subdivision (a)(1)
or (a)(3) of this section shall not be eligible to receive extended benefits with
respect to any week of unemployment in the individual’s eligibility period unless
the individual has been employed after the beginning date of such disqualification
and has earned in excess of four times the individual’s weekly benefit amount. (Amended 1959, No. 236; 1959, No. 329 (Adj. Sess.), § 22, eff. March 1, 1961; 1961, No. 210, § 15, eff. July 11, 1961; 1971, No. 77, § 8, eff. Dec. 31, 1971; 1973, No. 155 (Adj. Sess.), § 3, eff. March 15, 1974; 1973, No. 231 (Adj. Sess.), § 1; 1977, No. 64, §§ 18, 19, 25(b); 1979, No. 120 (Adj. Sess.), § 9, eff. March 31, 1980; 1981, No. 86, §§ 3, 6, 13; 1981, No. 165 (Adj. Sess.), § 1; 1981, No. 194 (Adj. Sess.), § 3, eff. Oct. 1, 1982; 1983, No. 16, § 11, eff. April 4, 1983; 1987, No. 179 (Adj. Sess.); 1989, No. 62; 1993, No. 177 (Adj. Sess.), §§ 4-6; 1999, No. 126 (Adj. Sess.), § 1; 2009, No. 124 (Adj. Sess.), § 7, eff. July 1, 2011; 2013, No. 173 (Adj. Sess.), § 10; 2017, No. 74, § 52; 2019, No. 91 (Adj. Sess.), § 31, eff. March 30, 2020; 2019, No. 91 (Adj. Sess.), § 33, eff. Oct. 1, 2021; 2021, No. 20, § 222; 2021, No. 105 (Adj. Sess.), § 410, eff. July 1, 2022; 2023, No. 6, § 252, eff. July 1, 2023.)
§ 1345. Repealed. 1971, No. 77, § 8, eff. Dec. 31, 1971.
§ 1346. Claims for benefits; rules; notice
(a) Claims for benefits shall be made in accordance with rules adopted by the Board.
(b) Every person making a claim shall certify that he or she has not, during the week
with respect to which waiting period credit or benefits are claimed, earned or received
wages or other remuneration for any employment, whether subject to this chapter or
not, otherwise than as specified in his or her claim. All benefits shall be paid in
accordance with the rules adopted by the Board.
(c)(1) An employer shall post notice of how an unemployed individual can seek unemployment
benefits in a form provided by the Commissioner in a place conspicuous to individuals
performing services for the employer. The notice shall also advise individuals of
their rights under the Domestic and Sexual Violence Survivor’s Transitional Employment
Program, established pursuant to chapter 16A of this title. The Commissioner shall
provide a copy of the notice to an employer upon request without cost to the employer.
(2) An employer shall provide an individual with notification of the availability of unemployment
compensation at the time of the individual’s separation from employment. The notification
may be based on model notification language provided by the U.S. Secretary of Labor. (Amended 1959, No. 329 (Adj. Sess.), § 22, eff. March 1, 1961; 1961, No. 210, § 15, eff. July 11, 1961; 1973, No. 155 (Adj. Sess.), § 1, eff. March 15, 1974; 2019, No. 85 (Adj. Sess.), § 19, eff. Feb. 20, 2020; 2019, No. 91 (Adj. Sess.), § 34, eff. March 30, 2020.)
§ 1347. Nondisclosure or misrepresentation; overpayments; waiver
(a) Any person who fails, without good cause, to make reasonable efforts to secure suitable
work when directed to do so by the employment office or the Commissioner and has received
any amount as benefits under this chapter with respect to weeks for which the person
is determined to be ineligible because of the failure, and any person who by nondisclosure
or misrepresentation by the person, or by another, of a material fact (irrespective
of whether the nondisclosure or misrepresentation was known or fraudulent) has received
any amount as benefits under this chapter while any conditions for the receipt of
benefits imposed by this chapter were not fulfilled in the person’s case or while
the person was disqualified from receiving benefits, shall be liable for the amount.
Notice of determination in such cases shall specify that the person is liable to repay
to the Fund the amount of overpaid benefits, the basis of the overpayment, and the
week or weeks for which the benefits were paid. The determination shall be made within
three years after the date of the overpayment.
(b) Any person who receives remuneration described in subdivision 1344(a)(5) of this subchapter
that is allocable in whole or in part to prior weeks during which the person received
any amounts as benefits under this chapter shall be liable for all such amounts of
benefits or those portions of the amounts equal to the portions of the remuneration
properly allocable to the weeks in question. Notice of determination in such cases
shall specify that the person is liable to repay to the Fund the amount of overpaid
benefits, the basis of the overpayment, and the week or weeks for which the benefits
were paid. The determination shall be made within three years after the date of the
overpayment or within one year after the date of receipt of the remuneration, whichever
period is longer.
(c) The person liable under this section shall repay the amount to the Commissioner for
the Fund. In addition to the repayment, if the Commissioner finds that a person intentionally
misrepresented or failed to disclose a material fact with respect to the person’s
claim for benefits, the person shall pay an additional penalty of 15 percent of the
amount of the overpaid benefits. Any additional penalty amount collected shall be
deposited in the Fund. The amount may be collectible by civil action in the Superior
Court, in the name of the Commissioner.
[Subsection (d) effective until the earlier of July 1, 2026 or occurrence of contingency;
see also subsection (d) effective on the earlier of July 1, 2026 or occurrence of
contingency, set out below.]
(d) In any case in which under this section a person is liable to repay any amount to
the Commissioner for the Fund, the Commissioner may withhold, in whole or in part,
any future benefits payable to the person, and credit the withheld benefits against
the amount due from the person until it is repaid in full, less any penalties assessed
under subsection (c) of this section.
[Subsection (d) effective on the earlier of July 1, 2026 or occurrence of contingency;
see also subsection (d) effective until the earlier of July 1, 2026 or occurrence
of contingency, set out above.]
(d) In any case in which under this section a person is liable to repay any amount to
the Commissioner for the Fund, the Commissioner may withhold future benefits payable
to the person, in amounts equal to not more than 50 percent of the person’s weekly
benefit amount, and credit the withheld benefits against the amount due from the person
until it is repaid in full, less any penalties assessed under subsection (c) of this
section.
(e) In addition to any repayment required pursuant to subsections (a)–(d) of this section,
when it is found by the Commissioner that a person intentionally misrepresented or
failed to disclose a material fact with respect to the person’s claim for benefits
and in the event the person is not prosecuted under section 1368 of this subchapter
and the penalty provided in section 1373 of this subchapter is not imposed, the person
shall be disqualified and shall not be entitled to receive benefits to which the person
would otherwise be entitled after the determination for such number of weeks not exceeding
26 as the Commissioner shall deem just. The notice of determination shall also specify
the period of disqualification imposed pursuant to this subsection.
(f)(1) Notwithstanding any provision of subsection (a), (b), or (d) of this section to the
contrary, the Commissioner may waive up to the full amount of any overpayment that
is not a result of the person’s intentional misrepresentation of or failure to disclose
a material fact if:
(A) the overpayment occurs through no fault of the person; and
(B) recovery of the overpayment would be against equity and good conscience.
(2) A person may request a waiver of an overpayment at any time after receiving notice
of a determination pursuant to subsection (a) or (b) of this section.
(3) Upon making a determination that an overpayment occurred pursuant to subsection (a)
or (b) of this section, the Commissioner shall, to the extent possible and in consideration
of the information available to the Department, determine whether waiver of the amount
of overpaid benefits is appropriate.
(4) The Commissioner shall provide notice of the right to request a waiver of an overpayment
with each determination that an overpayment has occurred. The notice shall include
clear instructions regarding the circumstances under which a waiver may be granted
and how a person may apply for a waiver.
(5) If the Commissioner denies an application for a waiver, the Commissioner shall provide
written notice of:
(A) the denial with enough information to ensure that the person can understand the reason
for the denial; and
(B) the person’s right to appeal the determination pursuant to subsection (h) of this
section.
(6)(A) A person whose request to waive an overpayment pursuant to this subsection (f) has
been denied pursuant to subdivision (5) of this subsection (f) and whose rights to
appeal the denial pursuant to subsection (h) have been exhausted shall be permitted
to submit an additional request to waive the overpayment if the person can demonstrate
a material change in the person’s circumstances such that recovery of the overpayment
would be against equity and good conscience.
(B) The Commissioner may dismiss a request to waive an overpayment that is submitted pursuant
to this subdivision (6) if the Commissioner finds that there is no material change
in the person’s circumstances such that recovery of the overpayment would be against
equity and good conscience. The Commissioner’s determination pursuant to this subdivision
(6) shall be final and shall not be subject to appeal.
(7) In the event that an overpayment is waived on appeal, the Commissioner shall, as soon
as practicable, refund any amounts collected or withheld in relation to the overpayment
pursuant to the provisions of this section.
(g) The provisions of subsection (f) of this section shall, to the extent permitted by
federal law, apply to overpayments made in relation to any federal unemployment insurance
benefits or similar federal benefits.
(h) Interested parties shall have the right to appeal from any determination under this
section and the same procedure shall be followed as provided for in subsection 1348(a)
and section 1349 of this title.
(i) The Commissioner shall not attempt to recover an overpayment or withhold any amounts
of unemployment insurance benefits from a person:
(1) until after the Commissioner has made a final determination regarding whether an overpayment
of benefits to the person occurred and the person’s right to appeal the determination
has been exhausted; or
(2) if the person filed an application for a waiver, until after the Commissioner has
made an initial determination regarding the application.
(j)(1) The Commissioner shall provide any person who received an overpayment of benefits
and is not currently receiving benefits pursuant to this chapter with the option of
entering into a plan to repay the amount of the overpayment. The plan shall provide
for reasonable weekly, biweekly, or monthly payments in an amount that permits the
person to continue to afford the person’s ordinary living expenses.
(2) The Commissioner shall permit a person to request a modification to a repayment plan
created pursuant to this subsection if the person’s ability to afford ordinary living
expenses changes. (Amended 1959, No. 329 (Adj. Sess.), § 22, eff. March 1, 1961; 1961, No. 210, § 15, eff. July 11, 1961; 1965, No. 74, eff. May 26, 1965; 1969, No. 205 (Adj. Sess.); 1973, No. 155 (Adj. Sess.), § 2, eff. March 15, 1974; 1981, No. 86, § 14, eff. May 10, 1981; 1987, No. 100, § 3; 1993, No. 177 (Adj. Sess.), § 7; 1995, No. 96 (Adj. Sess.), §§ 1, 2; 1997, No. 101 (Adj. Sess.), § 4; 2011, No. 162 (Adj. Sess.), § E.401.2; 2013, No. 179 (Adj. Sess.), § E.400.1; 2017, No. 74, § 53; 2023, No. 85 (Adj. Sess.), § 197, eff. July 1, 2024; 2023, No. 184 (Adj. Sess.), § 2, eff. July 1, 2024; 2023, No. 184 (Adj. Sess.), § 3, eff. July 1, 2026 or occurrence of contingency.)
§ 1348. Procedure
(a)(1) An authorized representative of the Commissioner shall review each claim for benefits
as provided in this chapter and shall, after review of the claim, promptly award any
benefits that are determined to be payable under the provisions of this chapter. Prompt
notice in writing of the determination of the representative and reasons for it shall
be given to the claimant, the claimant’s last employer, all other interested parties,
and the Commissioner.
(2) Any interested party may, within 30 days after notice of the determination, file an
appeal from the determination with an appeals referee employed by the Commissioner.
The appeal shall, be heard within 30 days after it is filed at a place as convenient
to the parties as, in the judgment of the referee, is practical. Notice of the hearing
shall be provided to the claimant, the claimant’s last employer, and all other interested
parties. After the hearing, the determination shall be sustained, modified, or set
aside by the referee as may be warranted. Prompt notice in writing of the decision
of the referee and the reasons for it shall be given to the claimant, the claimant’s
last employer, and all other interested parties.
(b) The authorized representative of the Commissioner may, for good cause, at any time
within one year after date of the original determination, reconsider an award of benefits
or the denial of a claim for benefits, and may issue a redetermination that may award,
terminate, continue, increase, or decrease the benefits. The redetermination shall
not affect any benefits paid before the date of the determination under authority
of the prior determination in the absence of nondisclosure or misrepresentation of
a material fact. Prompt notice in writing of the redetermination and the reasons for
it shall be given to the claimant, the claimant’s last employer, and all other interested
parties. All parties shall have the same right to appeal and the same procedure shall
be followed as provided for in case of appeal from the original determination. (Amended 1959, No. 117; 1959, No. 329 (Adj. Sess.), § 22, eff. March 1, 1961; 1961, No. 210, § 15, eff. July 11, 1961; 1965, No. 66, eff. May 19, 1965; 1989, No. 8, § 7; 2023, No. 85 (Adj. Sess.), § 198, eff. July 1, 2024.)
§ 1349. Appeals to Board; Supreme Court appeal
(a) Within 30 days after the date of the referee’s decision pursuant to section 1348 of
this chapter, an interested party may appeal from the decision of the referee to the
Board, by filing an appeal in the manner prescribed by the rules of the Board.
(b) The appeal shall be heard by the Board within a reasonable time after the appeal is
filed and after notice to the claimant and the claimant’s last employer.
(c) The Board may affirm, modify, or reverse the decision of the referee solely on the
basis of evidence in the record transferred to it by the referee, or upon the basis
of evidence in the record and any additional evidence the Board directs to be taken.
(d) Upon motion made by the Commissioner, the Board may review a decision of the referee
or a benefit determination.
(e) The Board shall make its findings of fact and conclusions. Prompt notice of the findings
of fact, ruling of law, conclusions, and decision of the Board shall be given to the
interested parties.
(f) The decision shall be final unless an appeal to the Supreme Court is taken. Testimony
given at any hearing upon a disputed claim shall be recorded, but the record need
not be transcribed unless ordered. (Amended 1959, No. 329 (Adj. Sess.), § 22, eff. March 1, 1961; 1961, No. 210, § 11, eff. July 11, 1961; 1971, No. 185 (Adj. Sess.), § 196, eff. March 29, 1972; 1989, No. 8, § 8; 2023, No. 85 (Adj. Sess.), § 199, eff. July 1, 2024.)
§ 1350. Interested party disqualified on behalf of Commissioner
A person shall not participate on behalf of the Commissioner in any case in which
he or she is an interested party. (Amended 1959, No. 329 (Adj. Sess.), § 22, eff. March 1, 1961; 1961, No. 210, § 15, eff. July 11, 1961.)
§ 1351. Procedure
The manner in which disputed claims shall be presented and the conduct of hearings
before the Commissioner, a referee, and the Board shall be governed by rules adopted
by the Board. The Commissioner, the referee, and the Board shall not be bound by common
law or statutory rules of evidence or by technical or formal rules of procedure except
as provided in this chapter but may conduct a hearing or trial in such manner as to
ascertain the substantial rights of the parties. (Amended 1959, No. 329 (Adj. Sess.), § 22, eff. March 1, 1961; 1961, No. 210, § 12, eff. July 11, 1961; 2023, No. 85 (Adj. Sess.), § 200, eff. July 1, 2024.)
§ 1352. Witnesses; fees
In the discharge of his or her duties prescribed by this chapter, any member of the
Board, a referee, and any authorized agent of the Commissioner shall have power to
administer oaths, take depositions, certify to official acts, and by subpoena compel
the attendance of witnesses and the production of books, papers, documents, and records,
necessary and material to be used in connection with any disputed claim. Witnesses
summoned by a member of the Board, a referee, or an agent of the Commissioner in proceedings
within this section shall be paid the same fees as witnesses summoned to appear before
a Criminal Division of the Superior Court in civil causes. Such fees shall be paid
out of the Vermont Employment Security Board Administration Fund. (Amended 1959, No. 329 (Adj. Sess.), § 22, eff. March 1, 1961; 1961, No. 210, § 13, eff. July 11, 1961; 1973, No. 249 (Adj. Sess.), § 75, eff. April 9, 1974; 2009, No. 154 (Adj. Sess.), § 238.)
§ 1353. Collateral use prohibited
Any determination, redetermination, finding of fact, conclusion of law, decision,
final order, or final judgment entered or made by a claims adjudicator or other authorized
representative of the Commissioner, an appeals referee, the Employment Security Board,
or a court of competent jurisdiction in any type of proceeding under this chapter
is binding only between the Department and all parties in that proceeding and is not
binding, conclusive, or admissible in any separate or subsequent action between an
individual and his or her present or former employer brought before an arbitrator,
court, or judge of this State or of the United States, regardless of whether the prior
proceeding was between the same or related parties or involved the same facts. (Added 1989, No. 132 (Adj. Sess.), § 7.)
§§ 1354, 1355. Repealed. 1961, No. 210, § 17, eff. July 11, 1961.
§ 1356. Limitation of fees
An individual shall not be charged fees of any kind by the Commissioner or his or
her representatives, a referee, or the Board in any proceeding under this chapter.
An individual claiming benefits in any such proceeding may be represented by counsel
or other authorized agent; but no such counsel or agents shall together charge or
receive for such services from any individual more than 10 percent of the maximum
benefits at issue in such proceedings or court action, except as the Board or the
court may allow in exceptional circumstances. (Amended 1959, No. 329 (Adj. Sess.), § 22, eff. March 1, 1961; 1961, No. 210, § 14, eff. July 11, 1961; 1965, No. 75, § 1, eff. May 26, 1965.)
§ 1357. Notices; form and service
Notices required under the provisions of this chapter, unless otherwise provided by
the provisions of this chapter or by rules adopted by the Supreme Court, shall be
deemed sufficient if given in writing and delivered to the person entitled to it by
an agent of the Commissioner, or sent electronically or by ordinary or certified mail
to the last known address of the person appearing in the records of the Commissioner.
The manner of service shall be certified by the agent of the Commissioner making the
service. Regardless of the manner of service and unless otherwise provided, appeal
periods shall commence to run from the date of the determination or decision rendered.
If a person to whom a notice has been sent files with the Commissioner within 60 days
after the date of the notice a sworn statement to the effect that the notice was not
received, or if the Commissioner is satisfied that the addressee did not receive the
notice, a new notice shall be sent to that person and the appeal period shall commence
to run from the date on which the new notice is sent. (Amended 1959, No. 329 (Adj. Sess.), § 22, eff. March 1, 1961; 1961, No. 210, § 15, eff. July 11, 1961; 1971, No. 185 (Adj. Sess.), § 197, eff. March 29, 1972; 1987, No. 100, § 4; 1989, No. 8, § 9; 1991, No. 82, § 7; 2023, No. 85 (Adj. Sess.), § 201, eff. July 1, 2024; 2025, No. 40, § 16, eff. July 1, 2025.)
§ 1358. Unemployment Compensation Trust Fund; establishment and control
(a) The Unemployment Compensation Trust Fund is established. The Fund shall be kept separate
and apart from all other public monies or funds of this State and shall be administered
by the Commissioner exclusively for the purposes of this chapter.
(b) The Fund shall consist of:
(1) all contributions collected under this chapter;
(2) interest earned upon any monies in the Fund;
(3) any property or securities acquired through the use of monies belonging to the Fund;
(4) all earnings of the property or securities;
(5) all money credited to this State’s account in the Unemployment Trust Fund pursuant
to 42 U.S.C. § 1103; and
(6) all other monies received for the Fund from any other source.
(c) All monies in the Fund shall be mingled and undivided. (Amended 1959, No. 329 (Adj. Sess.), § 22, eff. March 1, 1961; 1961, No. 210, § 15, eff. July 11, 1961; 1967, No. 190, § 1, eff. April 17, 1967; 2023, No. 85 (Adj. Sess.), § 202, eff. July 1, 2024.)
§ 1359. Administration of Unemployment Compensation Trust Fund
(a) The Fund shall be administered in trust and used solely to pay benefits and refunds
upon vouchers drawn on the Fund by the Commissioner pursuant to this chapter and to
such rules as the Board is authorized to adopt, except that money credited to this
State’s account under 42 U.S.C. § 1103 shall be used exclusively as provided in subsection (d) of this section.
(b) There shall be maintained within the Fund three separate fund accounts:
(1) a clearing account;
(2) an Unemployment Trust Fund account; and
(3) a benefit account.
(c) All monies payable to the Fund shall be immediately deposited in the clearing account
upon receipt, and, after clearance shall, except that the monies may be expended for
the payment of refunds under this chapter, be deposited immediately with the U.S.
Secretary of the Treasury to the credit of the Unemployment Trust Fund account of
the State of Vermont in the Unemployment Trust Fund established and maintained pursuant
to the Social Security Act, as amended. The Commissioner shall requisition from the
Vermont Unemployment Trust Fund account amounts that are necessary for and to be used
solely in the payment of benefits and refunds under this chapter. The requisitioned
sums shall be deposited in the benefit account. Any monies so withdrawn shall not
be used for expenses of administration or any purpose other than the payment of benefits
and refunds under this chapter. Requirements with respect to specific appropriation
or other formal release by State officers of monies belonging to the State shall not
be applicable to withdrawals from the Fund.
(d) Money credited to the account of this State in the Unemployment Trust Fund by the
U.S. Secretary of the Treasury:
(1) May not be requisitioned from this State’s account or used except for the payment
of benefits and for the payment of expenses incurred for the administration of this
chapter. The money may be requisitioned under subsection (a) of this section for the
payment of benefits. That money may also be requisitioned and used for the payment
of expenses incurred for the administration of this chapter but only under a specific
appropriation by the General Assembly and only if the expenses are incurred and the
money is requisitioned after the enactment of an appropriation law that:
(A) specifies the purpose for which the money is appropriated and the amount appropriated
for that purpose;
(B) limits the period within which the money may be obligated to a period ending not more
than two years after the date of the enactment of the appropriation law; and
(C) limits the amount that may be obligated during any 12-month period beginning on July
1 and ending on the next June 30 to an amount that does not exceed the amount by which:
(i) the aggregate of the amounts credited to the account of this State under 42 U.S.C. § 1103 during the same 12-month period and the 14 preceding 12-month periods, exceeds;
(ii) the aggregate of the amount obligated for administration and paid out for benefits
and charged against the amounts credited to the account of this State during those
15 12-month periods.
(2) That is obligated for administration or paid out for benefits shall be charged against
equivalent amounts that were first credited and that are not already so charged; except
that no amount obligated for administration during a 12-month period specified in
this section may be charged against any amount credited during such a 12-month period
earlier than the 14th preceding such period. Amounts credited to this State’s account
in the Unemployment Trust Fund under 42 U.S.C. § 1103 that have been appropriated for expenses of administration shall be excluded from
the Unemployment Compensation Trust Fund balance for the purposes of section 1326 of this title.
(e) Money appropriated as provided in this section for the payment of expenses of administration
shall be requisitioned as needed for the payment of obligations incurred under the
appropriation and, upon requisition, shall be deposited in the Unemployment Compensation
Administration Fund from which those payments shall be made. Money so deposited shall,
until expended, remain a part of the Unemployment Compensation Trust Fund and, if
it will not be expended, shall be returned promptly to the account of this State in
the Unemployment Trust Fund. (Amended 1959, No. 329 (Adj. Sess.), § 22, eff. March 1, 1961; 1961, No. 210, § 15, eff. July 11, 1961; 1967, No. 190, § 2, eff. April 17, 1967; 1969, No. 77, eff. April 18, 1969; 2015, No. 23, § 120; 2023, No. 85 (Adj. Sess.), § 203, eff. July 1, 2024.)
§ 1360. Treasurer
The Commissioner shall designate a treasurer of the Fund, who shall pay all vouchers
duly drawn upon the Fund, in such manner as the Commissioner may prescribe. He or
she shall have custody of all monies belonging to the Fund and not otherwise held
or deposited or invested pursuant to this chapter. The treasurer shall give bond
conditioned on the faithful performance of his or her duties as treasurer of the Fund
in an amount specified by the Commissioner and approved by the Governor. All premiums
upon bonds required pursuant to this section when furnished by an authorized surety
company shall be paid from the Unemployment Compensation Administration Fund. The
treasurer shall deposit the monies constituting the Fund, under the supervision and
control of the Commissioner, according to the provisions of this chapter. (Amended 1959, No. 329 (Adj. Sess.), § 22, eff. March 1, 1961; 1961, No. 210, § 15, eff. July 11, 1961.)
§ 1361. Management of funds upon discontinuance of Unemployment Trust Fund
The provisions of sections 1358–1360 of this subchapter to the extent that they relate
to the federal Unemployment Trust Fund, shall be operative only if the federal Unemployment
Trust Fund continues to exist and so long as the U.S. Secretary of the Treasury continues
to maintain for this State a separate book account of all Funds deposited in the federal
Unemployment Trust Fund by this State for benefit purposes, together with this State’s
proportionate share of the earnings of the Unemployment Trust Fund, from which only
the Commissioner of Labor is permitted to make withdrawals. If and when federal law
no longer requires the federal Unemployment Trust Fund to be maintained as a condition
of approval of this chapter as provided in Title III of the Social Security Act, then
all monies, properties, or securities in the federal Unemployment Trust Fund, belonging
to the Unemployment Compensation Trust Fund of this State, shall be transferred to
the treasurer of the Unemployment Compensation Trust Fund, who shall hold, invest,
transfer, sell, deposit, and release the monies, properties, or securities in a manner
approved by the Commissioner and appropriate for trust funds, subject to all claims
for benefits under this chapter. (Amended 1959, No. 329 (Adj. Sess.), § 22, eff. March 1, 1961; 1961, No. 210, § 15, eff. July 11, 1961; 1981, No. 66, § 5(b), eff. May 1, 1981; 2005, No. 103 (Adj. Sess.), § 3, eff. April 5, 2006; 2023, No. 85 (Adj. Sess.), § 204, eff. July 1, 2024; 2023, No. 184 (Adj. Sess.), § 7, eff. July 1, 2024.)
§ 1362. Unemployment Compensation Administration Fund
The Unemployment Compensation Administration Fund is created to consist of all monies
received by the State or by the Commissioner for the administration of this chapter.
The Unemployment Compensation Administration Fund shall be a special fund managed
pursuant to 32 V.S.A. chapter 7, subchapter 5. The Unemployment Compensation Administration
Fund shall be handled through the State Treasurer as other State monies are handled,
but it shall be expended solely for the purposes and in the amounts found necessary
by the Secretary of Labor for the proper and efficient administration of this chapter
and its balance shall not lapse at any time but shall remain continuously available
to the Commissioner for expenditures consistent with the provisions of this section.
All federal monies allotted or apportioned to the State by the Secretary of Labor,
or other agency, for the administration of this chapter shall be paid into the Unemployment
Compensation Administration Fund and are hereby appropriated to the Unemployment Compensation
Administration Fund. (Amended 1959, No. 329 (Adj. Sess.), § 22, eff. March 1, 1961; 1961, No. 210, § 15, eff. July 11, 1961; 2023, No. 85 (Adj. Sess.), § 205, eff. July 1, 2024; 2023, No. 184 (Adj. Sess.), § 8, eff. July 1, 2024.)
§ 1362a. [Repealed.]
§ 1363. Expenditures
All monies made available by or received by the State for the State employment service,
as provided in chapter 15 of this title, shall be paid to and expended from the Unemployment
Compensation Administration Fund, and a special employment service account shall be
maintained for that purpose as a part of the Fund. For the purpose of establishing
and maintaining free public employment offices, the Commissioner is authorized to
enter into agreements with the Railroad Retirement Board or any other agency of the
United States charged with the administration of an unemployment compensation law,
with any political subdivision of this State or with any private, nonprofit organization,
and as a part of any such agreement, the Commissioner may accept monies, services,
or quarters as a contribution to the employment service account. (Amended 1959, No. 329 (Adj. Sess.). § 22, eff. March 1, 1961; 1961, No. 210, § 15, eff. July 11, 1961; 2023, No. 85 (Adj. Sess.), § 206, eff. July 1, 2024.)
§ 1364. Replacement
This State shall replace any monies received from the Secretary of Labor under Title
III of the Social Security Act, any monies granted to this State pursuant to the provisions
of the Wagner-Peyser Act, and any monies made available by the State or its political
subdivisions and matched by monies granted to this State pursuant to the provisions
of the Wagner-Peyser Act, that the Secretary of Labor finds after reasonable notice
and opportunity for hearing to the Commissioner have, because of any action or contingency,
been lost or expended for purposes other than, or in amounts in excess of, those found
necessary by the Secretary of Labor for the proper administration of this chapter.
In the event that there are insufficient funds in the Contingent Fund as provided
in section 1365 of this subchapter, the monies shall be promptly replaced by monies
appropriated for the purpose from the general funds of this State to the Unemployment
Compensation Administration Fund for expenditure as provided in sections 1362 and
1363 of this subchapter. The Commissioner shall promptly report to the Governor, and
the Governor to the General Assembly, the amount required for the replacement. (Amended 1959, No. 329 (Adj. Sess.), § 22, eff. March 1, 1961; 1961, No. 210, § 15, eff. July 11, 1961; 2023, No. 85 (Adj. Sess.), § 207, eff. July 1, 2024.)
§ 1365. Contingent Fund
(a) There is created a special fund to be known as the Contingent Fund. All interest,
fines, and penalties collected under the provisions of this chapter, together with
any voluntary contributions tendered as a contribution to the Contingent Fund, shall
be paid into the Contingent Fund. The monies shall not be expended or available for
expenditures in any manner that would permit their substitution for, or a corresponding
reduction in, federal funds that would in the absence of the monies be available to
finance expenditures for the administration of the unemployment compensation law.
(b) Nothing in this chapter shall prevent the monies from being used as a revolving fund
to cover expenditures, necessary and proper under the law for which federal funds
have been duly requested but not yet received, subject to the charging of the expenditures
against the funds when received.
(c) The monies in the Contingent Fund shall be used by the Commissioner for the payment
of costs of administration that are found not to have been properly and validly chargeable
against federal grants, or other funds, received for or in the Unemployment Compensation
Administration Fund. No expenditure of the Contingent Fund shall be made unless and
until the Commissioner finds that no other funds are available or can properly be
used to finance the expenditures.
(d) The State Treasurer shall co-sign all expenditures from the Contingent Fund authorized
by the Commissioner.
(e) The monies in the Contingent Fund are available to replace, within a reasonable time,
any monies received by this State pursuant to 42 U.S.C. § 502 that because of any action or contingency, have been lost or have been expended for
purposes other than, or in amounts in excess of, those necessary for the proper administration
of the unemployment compensation law.
(f) The monies in the Contingent Fund shall be continuously available to the Commissioner
for expenditure in accordance with the provisions of this section and shall not lapse
at any time or be transferred to any other fund except as provided pursuant to this
section.
(g) On December 31 of each year, all monies in excess of $10,000.00 in the Contingent
Fund shall be transferred to the Unemployment Compensation Trust Fund. On or before
March 31 of each year, an audit of the Contingent Fund shall be completed and a report
of that audit shall be made public.
(h) In the event that a refund of interest, a fine, or a penalty is found necessary, and
the interest, fine, or penalty has been deposited in the Contingent Fund, the refund
shall be made from the Contingent Fund. (Amended 1959, No. 329 (Adj. Sess.), § 22, eff. March 1, 1961; 1961, No. 210, § 15, eff. July 11, 1961; 1983, No. 16, § 8, eff. April 4, 1983; 1985, No. 121 (Adj. Sess.), § 2, eff. April 16, 1986; 2023, No. 85 (Adj. Sess.), § 208, eff. July 1, 2024; 2023, No. 184 (Adj. Sess.), § 9, eff. July 1, 2024.)
§ 1366. Protection of rights and benefits; waiver of rights void
No agreement by an employee to waive his or her right to benefit or any other right
under this chapter shall be valid.
§ 1367. Benefits not subject to assignment or trustee process
Benefits that are due or may become due under this chapter shall not be assignable
before payment, but this provision shall not affect the survival thereof; and when
awarded, adjudged, or paid, shall be exempt from all claims of creditors, and from
levy, execution, attachment, and trustee process or other remedy now or hereafter
provided for recovery or collection of debt. This exemption may not be waived.
§ 1367a. Child support intercept of unemployment benefits
(a) An individual filing a new claim for unemployment compensation shall, at the time
of filing the claim, disclose whether or not the individual owes child support obligations
as defined under subsection (f) of this section. If the individual discloses that
the individual owes child support obligations and is determined to be eligible for
unemployment compensation, the Commissioner shall notify the state or local child
support enforcement agency enforcing the obligation that the individual has been determined
to be eligible for unemployment compensation.
(b) Notwithstanding the provisions of sections 1366 and 1367 of this subchapter, the Commissioner
shall deduct and withhold from any unemployment compensation payable to an individual
who owes child support obligations as defined under subsection (f) of this section:
(1) the amount specified by the individual to the Commissioner to be deducted and withheld
under this subsection if neither subdivision (2) nor (3) of this subsection is applicable;
or
(2) the amount, if any, determined pursuant to an agreement submitted to the Commissioner
under 42 U.S.C. § 654(19)(B)(i) by the state or local child support enforcement agency, unless subdivision (3) of
this subsection is applicable; or
(3) any amount otherwise required to be so deducted and withheld from such unemployment
compensation pursuant to legal process, as that term is defined in 42 U.S.C. § 659(i)(5), properly served upon the Commissioner.
(c) Any amount deducted and withheld under subsection (b) of this section shall be paid
by the Commissioner to the appropriate state or local child support enforcement agency.
(d) Any amount deducted and withheld under subsection (b) of this section shall for all
purposes be treated as if it were paid to the individual as unemployment compensation
and paid by the individual to the state or local child support enforcement agency
in satisfaction of the individual’s child support obligations.
(e) For purposes of this section, the term “unemployment compensation” means any compensation
payable under the state law including amounts payable by the Commissioner pursuant
to an agreement under any federal law providing for compensation, assistance, or allowances
with respect to unemployment.
(f) As used in this section, “child support obligations” means obligations that are being
enforced pursuant to a plan described in 42 U.S.C. § 654 that has been approved by the Secretary of Health and Human Services under part D
of Title IV of the Social Security Act.
(g) As used in this section, “state or local child support enforcement agency” means any
agency of a state or political subdivision of a state operating pursuant to a plan
described in subsection (f) of this section.
(h) The Commissioner shall implement the provisions of this section only if appropriate
arrangements have been made for full reimbursement by the state or local child support
enforcement agency for all administrative costs incurred by the Commissioner under
this section that are attributable to child support obligations being enforced by
the state or local child support enforcement agency. (Added 1981, No. 194 (Adj. Sess.), § 4, eff. Sept. 26, 1982; amended 2023, No. 85 (Adj. Sess.), § 209, eff. July 1, 2024.)
§ 1367b. Supplemental Nutrition Assistance Program intercept of unemployment benefits
(a) An individual filing a new claim for unemployment compensation shall, at the time
of filing such claim, disclose whether he or she owes an uncollected overissuance
of Supplemental Nutrition Assistance Program benefits as defined in 7 U.S.C. § 2022(c)(1). The Commissioner shall notify the State agency administering the Supplemental Nutrition
Assistance Program enforcing such obligation of any individual who discloses that
he or she owes an uncollected overissuance of Supplemental Nutrition Assistance Program
benefits and who is determined to be eligible for unemployment compensation.
(b) Notwithstanding the provisions of sections 1366 and 1367 of this title, the Commissioner shall deduct and withhold from any unemployment compensation payable
to an individual who owes an uncollected overissuance of Supplemental Nutrition Assistance
Program Benefits:
(1) the amount specified by the individual to the Commissioner to be deducted and withheld
under this section;
(2) the amount, if any, determined pursuant to an agreement submitted to the State agency
administering the Supplemental Nutrition Assistance Program under 7 U.S.C. § 2022(c)(3)(A); or
(3) any amount otherwise required to be deducted and withheld from unemployment compensation
pursuant to 7 U.S.C. § 2022(c)(3)(B).
(c) Any amount deducted and withheld under subsection (b) of this section shall be paid
by the Commissioner to the appropriate State agency administering the Supplemental
Nutrition Assistance Program.
(d) Any amount deducted and withheld under subsection (b) of this section shall for all
purposes be treated as if it were paid to the individual as unemployment compensation
and paid by such individual to the State agency administering the Supplemental Nutrition
Assistance Program as repayment of the individual’s uncollected overissuance of Supplemental
Nutrition Assistance Program benefits.
(e) As used in this section, the term “unemployment compensation” means any compensation
payable under this chapter and any federal benefit payments made pursuant to agreements
with the U.S. Department of Labor.
(f) This section applies only if arrangements have been made for reimbursement by the
State agency administering the Supplemental Nutrition Assistance Program for the administrative
costs incurred by the Commissioner under this section that are attributable to the
repayment of uncollected overissuances of Supplemental Nutrition Assistance Program
benefits to the State agency administering the Supplemental Nutrition Assistance Program.
(g) Any deduction and withholding authorized by this section shall not exceed 25 percent
of the individual’s weekly benefit amount. (Added 1997, No. 101 (Adj. Sess.), § 5; amended 2013, No. 131 (Adj. Sess.), § 126, eff. May 20, 2014.)
§ 1368. False statements to increase payments
A person shall not intentionally make a false statement or representation to obtain
or increase any benefit or other payment under this chapter, either for the employee
or any other person. (Amended 2023, No. 85 (Adj. Sess.), § 210, eff. July 1, 2024.)
§ 1369. False statements to avoid unemployment program obligations
A person who intentionally makes a material false statement or representation to avoid
becoming or remaining subject to this chapter, or to avoid or reduce a contribution
or other payment required of an employer under this chapter for either themselves
or for any other person, after notice and opportunity for hearing, may be assessed
an administrative penalty of not more than $5,000.00. (Amended 2009, No. 142 (Adj. Sess.), § 11; 2023, No. 85 (Adj. Sess.), § 211, eff. July 1, 2024.)
§ 1370. Furnishing reports
A person shall not intentionally fail or refuse to furnish any reports required under
this chapter or to submit the person’s records to inspection when required under this
chapter, or to make or require any deduction from wages to pay all or any portion
of the contributions required from employers. (Amended 2023, No. 85 (Adj. Sess.), § 212, eff. July 1, 2024.)
§ 1371. Each statement separate offense
Each such false statement or representation, and each day of such failure or refusal
and each such deduction from wages as provided in this section and sections 1369 and 1370 of this title shall constitute a separate and distinct offense.
§ 1372. Violation by corporate agent
If the employer in question is a corporation, any official or agent of the corporation
responsible for a falsehood, failure, or refusal mentioned in sections 1369–1371 of
this subchapter shall be subject to the penalties provided in section 1373 of this
subchapter. (Amended 2023, No. 85 (Adj. Sess.), § 213, eff. July 1, 2024.)
§ 1373. General penalty; administrative
A person who violates a provision of this chapter or any lawful rule of the Board,
for which no other penalty is provided, shall be assessed an administrative penalty
of not more than $5,000.00. (Amended 1959, No. 329 (Adj. Sess.), § 22, eff. March 1, 1961; 2009, No. 142 (Adj. Sess.), § 12; 2023, No. 85 (Adj. Sess.), § 214, eff. July 1, 2024.)
§ 1374. Representation in court
The Attorney General shall represent the Commissioner and State in any court action
relating to this chapter or to its administration and enforcement, except as other
counsel may be designated by the Commissioner with the approval of the Attorney General;
provided, however, in prosecutions under this chapter the State’s Attorney of the
county in which the offense occurs shall represent the State as in other causes. (Amended 1959, No. 329 (Adj. Sess.), § 22, eff. March 1, 1961; 1961, No. 210, § 15, eff. July 11, 1961; 2023, No. 85 (Adj. Sess.), § 215, eff. July 1, 2024.)
§ 1375. Jurisdiction
Concurrent jurisdiction of offenses under this chapter is vested in the Superior Court. (Amended 1965, No. 194, § 10; 1973, No. 193 (Adj. Sess.), § 3.)
§ 1376. Limitation of liability of State
Benefits shall be deemed to be due and payable under this chapter only to the extent
provided in this chapter and to the extent that monies are available for the payment
of benefits to the credit of the Unemployment Compensation Trust Fund. Neither the
State nor the Commissioner shall be liable for any amount in excess of such sums. (Amended 1959, No. 329 (Adj. Sess.), § 22, eff. March 1, 1961; 1961, No. 210, § 15, eff. July 11, 1961; 2023, No. 85 (Adj. Sess.), § 216, eff. July 1, 2024.)
§ 1377. Rights subject to legislative control
All the rights, privileges, or immunities conferred by this chapter or by acts done
pursuant to this chapter shall exist subject to the power of the General Assembly
to amend or repeal this chapter at any time; and there shall be no vested rights of
any kind against the amendment or repeal or the termination of this chapter or the
subdivisions of any of its provisions by its own terms. (Amended 2023, No. 85 (Adj. Sess.), § 217, eff. July 1, 2024.)
§ 1378. Requirements for obtaining license or governmental contract
(a) As used in this section, “agency” means any unit of State government, including agencies,
departments, boards, commissions, authorities, and public corporations.
(b) [Repealed.]
(c) Every agency shall, upon request, furnish to the Commissioner a list of licenses and
contracts issued or renewed by the agency during the reporting period; provided, however,
that the Secretary of State shall, with respect to certificates of authority to transact
business issued to foreign corporations, furnish to the Commissioner only those certificates
originally issued by the Secretary of State during the reporting period and not renewals
of the certificates. The lists should include the name, address, Social Security or
federal identification number of the licensee or provider, and any other information
required by the Commissioner.
(d) If the Commissioner determines that any employing unit that has agreed to furnish
goods, services, or real estate space to any agency has neglected or refused to pay
contributions or payments in lieu of contributions and that the employing unit’s liability
for the contributions or payments in lieu of contributions is not under appeal, the
Commissioner shall notify the agency and the employing unit in writing of the amount
owed by the employing unit. Upon receipt of the notice, the agency shall transfer
to the Commissioner any amounts that would otherwise be payable by the agency to the
employing unit, up to the amount certified by the Commissioner. The Commissioner may
treat any such payment as if it were a payment received from the employing unit.
(e) No agency of the State shall make final payment of any amount owed under a contract
that contemplates the employment of any employing unit within the State or the use
of any property within the State, or otherwise release any employing unit from the
obligations of any such contract, unless the employing unit shall first obtain a certificate
issued by the Commissioner that the employing unit is in good standing with respect
to or in full compliance with a plan to pay any and all contributions or payments
in lieu of contributions due as of the date of issuance of the certificate.
(f) Upon written request by the Commissioner and after notice and hearing to the employing
unit as required under any applicable provision of law, an agency shall revoke or
suspend any license or other authority to conduct a trade or business, including a
license to practice a profession, issued to any employing unit if the agency finds
that contributions or payments in lieu of contributions have not been paid and the
employing unit’s liability for contributions or payments in lieu of contributions
is not under appeal. For purposes of such findings, the written representation to
that effect by the Commissioner to the agency shall constitute prima facie evidence
that contributions have not been paid and the employing unit’s liability is not under
appeal. The Commissioner shall have the right to intervene in any hearing conducted
with respect to a license revocation or suspension. Any findings made by the agency
with respect to a license revocation or suspension shall be made only for the purposes
of the proceeding and shall not be relevant to or introduced in any other proceeding
at law, except for any appeal from a license revocation or suspension. Any license
or certificate of authority suspended or revoked under this section shall not be reissued
or renewed until the agency receives a certificate issued by the Commissioner that
the applicable employing unit is in good standing with respect to any and all contributions
or payments in lieu of contributions payable to the Commissioner as of the date of
issuance of the certificate. Any person aggrieved by the decision of the agency may
appeal from the decision in accordance with the provisions of 3 V.S.A. chapter 25.
(g)(1) For the purposes of this section, a person is in good standing with respect to any
and all contributions or payments in lieu of contributions payable if:
(A) no contributions or payments in lieu of contributions are due and payable;
(B) the liability for any contributions or payments in lieu of contributions due and payable
is on appeal;
(C) the employing unit is in compliance with a payment plan approved by the Commissioner;
or
(D) in the case of a licensee, the agency finds that requiring immediate payment of contributions
or payments in lieu of contributions due and payable would impose an unreasonable
hardship.
(2) If the agency finds an unreasonable hardship, it may condition renewal on terms that
will place the person in good standing with respect to any and all contributions or
payments in lieu of contributions as soon as reasonably possible. (Added 1993, No. 177 (Adj. Sess.), § 8; amended 2009, No. 42, §§ 33b, 33c; 2017, No. 74, § 54; 2023, No. 85 (Adj. Sess.), § 218, eff. July 1, 2024.)
§ 1379. Complaint of misclassification; enforcement by Attorney General [Repealed effective
July 1, 2026]
(a) Following the referral of a complaint by the Commissioner of Labor pursuant to the
provisions of section 3 of this title, the Attorney General may investigate a complaint that an employing unit or employer
has committed a willful, substantial, or systemic violation of section 1314a of this
chapter by failing to properly classify one or more employees and may enforce the
provisions of this chapter by restraining prohibited acts, seeking civil penalties,
obtaining assurances of discontinuance, and conducting civil investigations in accordance
with the procedures established in 9 V.S.A. §§ 2458-2461 as though the misclassification of an employee is an unfair act in commerce. Any
employing unit or employer complained against shall have the same rights and remedies
as specified in 9 V.S.A. §§ 2458-2461. The Superior Court may impose the same civil penalties and investigation costs and
order other relief to the State of Vermont or an aggrieved employee for the misclassification
of an employee and any related violations of the provisions of this chapter as they
are authorized to impose or order under the provisions of 9 V.S.A. §§ 2458 and 2461 in an unfair act in commerce. In addition, the Superior Court may order restitution
of wages or other benefits on behalf of an employee and may order reinstatement and
other appropriate relief on behalf of an employee.
(b)(1) The Attorney General shall share information and coordinate investigatory and enforcement
resources with the Departments of Financial Regulation, of Labor, and of Taxes pursuant
to the provisions of section 3 of this title.
(2) Upon receiving notice that the Attorney General has determined that an employing unit
or employer has committed a violation of section 1314a of this chapter by failing
to properly classify one or more employees, the Commissioners of Financial Regulation
and of Taxes shall review whether the employing unit or employer is in compliance
with the insurance or tax laws that are under their jurisdiction. (Added 2019, No. 85 (Adj. Sess.), § 2, eff. Feb. 20, 2020; repealed on July 1, 2026 by 2019, No. 85 (Adj. Sess.), § 11(b).)
§ 1380. Repealed. 1977, No. 64, § 25(a), eff. Jan. 1, 1978.
§ 1381. Repealed. 1987, No. 100, § 5.
§ 1382. Repealed. 1977, No. 64, § 25(a), eff. Jan. 1, 1978.
§ 1383. Severability of provisions
It is the purpose and intention of the General Assembly that the provisions of this
chapter are severable and that the invalidity or ineffectiveness of any provision
or provisions of this chapter shall not affect the validity or operative force of
the remainder of the chapter, except only that it is the legislative intent that the
whole chapter shall fail if any one or more of the following and only of the following
provisions, are finally determined to be invalid and ineffective:
(1) the exaction of contributions from employers as provided in sections 1321-1327 of this title;
(2) the requirement contained in section 1359 of this subchapter providing for the deposit
with the U.S. Secretary of the Treasury of all monies received in the Unemployment
Compensation Trust Fund and the use of monies requisitioned from the U.S. Secretary
of the Treasury;
(3) the provisions of subdivisions 1344(a)(2)(C)-(E) of this title relating to the denial
of compensation upon refusal to accept new work under certain circumstances;
(4) the provisions of section 1377 of this title barring vested rights under this chapter;
(5) the provisions of sections 1386–1388 of this subchapter with respect to suspension
or termination of the operation of this chapter or parts of this chapter in the event
of modification or invalidity of 42 U.S.C. chapter 7, the Social Security Act. (Amended 2023, No. 85 (Adj. Sess.), § 219, eff. July 1, 2024.)
§ 1384. Construction
(a) This chapter is enacted in correlation with Titles III and IX of the Social Security
Act, 42 U.S.C. chapter 7, and with the Federal Unemployment Tax Act, 26 U.S.C. chapter
23, and the expediency of certain provisions of this chapter depend upon the scope
and operation within this State of the provisions of Titles III and IX of the Social
Security Act and the Federal Unemployment Tax Act as set forth in this section.
(b) If the Federal Unemployment Tax Act is interpreted or extended to impose within this
State a tax with respect to employing units having in their employ less than four
persons, or with respect to employing units having in their employ individuals who
are not now in “employment” as defined in subdivision 1301(6)(C) of this subchapter,
the Governor by proclamation within 10 days of the effective date of the interpretation
or extension shall issue a declaration that:
(1) the word “employer” and the words “individual in employment,” as used in this chapter
include all employing units having in their employ the applicable smaller number of
persons and the individuals in their employ; and
(2) all employing units having in their employ individuals who are newly defined as being
in “employment” and the individuals in their employ.
(c) The affected persons shall be treated as individuals in the employ of the employer
with respect to contributions and eligibility for benefits under this chapter. (Amended 2023, No. 85 (Adj. Sess.), § 220, eff. July 1, 2024.)
§ 1385. Contingent provisions
If the Federal Unemployment Tax Act is amended, interpreted, or extended so that employing
units not previously included under the definition of “employer,” as that term is
used in this chapter, are included under the definition after the Act is amended,
interpreted, or extended, then, subject to other provisions of this chapter, benefits
shall become payable to any individual on the basis of wages earned in the employ
of the newly defined employer, and the wages shall be available to any individual
for determining the individual’s eligibility for benefits after the effective date
of the extension, or after the date when the newly defined employer’s approved election
to be so defined has made the employer subject to this chapter, and the benefit year
of the individual shall begin after the date the newly defined employer became subject
to this chapter. (Amended 2023, No. 85 (Adj. Sess.), § 221, eff. July 1, 2024.)
§ 1386. Operation dependent upon federal act
(a) The General Assembly finds that the expediency and beneficial operation of this chapter
are dependent upon the effective operation within this State of certain sections of
the Federal Unemployment Tax Act:
(1) 26 U.S.C. § 3301 imposing an excise tax upon employers as defined in the Act;
(2) 26 U.S.C. § 3302 allowing credits against the federal tax for contributions paid by employers into an unemployment fund under the unemployment compensation law of a state;
(3) 26 U.S.C. § 3303 prescribing the conditions upon which certain credits under 26 U.S.C. § 3302 may be allowed;
(4) 26 U.S.C. §§ 3303 and 3304 requiring the certification of state law for certain credits under 26 U.S.C. § 3302 and prescribing the conditions for certification.
(b) If any sections identified in subsection (a) of this section is repealed, amended, suspended, or finally declared invalid in a manner that deprives a contributor under this chapter of credits against the tax imposed pursuant to 26 U.S.C. § 3301, then any contribution required by this chapter, to the extent that the repeal, amendment, suspension, or declared invalidity of the federal law deprived the contributor of the benefit of the credit, shall be suspended as provided in section 1387 of this title. (Amended 2023, No. 85 (Adj. Sess.), § 222, eff. July 1, 2024.)
§ 1387. Suspension of contributions
If the Governor determines that the conditions for the suspension of the contributions
required by this chapter pursuant to section 1386 of this subchapter exist because
of any repeal, amendment, suspension, or declared invalidity of the Social Security
Act, 42 U.S.C. chapter 7, or the Federal Unemployment Tax Act, 26 U.S.C. chapter 23,
the Governor shall issue a proclamation regarding the suspension of contributions
pursuant to section 1386 of this subchapter and the suspension shall become effective
and continue for a period of two years after the date of the proclamation, subject
to legislation amending, modifying, or repealing the proclamation during that period. (Amended 2023, No. 85 (Adj. Sess.), § 223, eff. July 1, 2024.)
§ 1388. Invalidity of acts
If the Social Security Act, 42 U.S.C. chapter 7, or the Federal Unemployment Tax Act,
26 U.S.C. chapter 23, shall be finally held and determined to be wholly invalid or
shall be repealed, then this chapter shall become wholly inoperative and ineffective
except that the Commissioner shall:
(1) recover any monies on deposit with the U.S. Secretary of the Treasury and redistribute
all monies on hand to contributors in proportion to contributions received under the
direction of a presiding judge of a Superior Court upon an action brought by the Commissioner
against five or more employers; and
(2) take any other actions necessary or proper to liquidate assets and discharge the Commissioner’s
obligations pursuant to this chapter. (Amended 1959, No. 329 (Adj. Sess.), § 22, eff. March 1, 1961; 1961, No. 210, § 15, eff. July 11, 1961; 2023, No. 85 (Adj. Sess.), § 224, eff. July 1, 2024.)
§ 1389. Repealed. 1977, No. 25(a), eff. Jan. 1, 1978.