DAR File No. 27921

Workforce Services, Workforce Information and Payment Services

R994-309-105

Reimbursable Employer's Liability for Benefits Paid

NOTICE OF PROPOSED RULE

DAR File No.: 27921
Filed: 05/16/2005, 03:32
Received by: NL

RULE ANALYSIS

Purpose of the rule or reason for the change:

The reason for the change is to clarify when a reimbursable employer is liable for unemployment benefits paid.

Summary of the rule or change:

A reimbursable employer is not liable for benefits paid in the event of agency error. This amendment attempts to clarify that provision. Additionally, in the event of an overpayment to the claimant where the reimbursable employer is eligible for reimbursement, this new rule allows the Department to reimburse the employer immediately or credit the reimbursable employer's account.

State statutory or constitutional authorization for this rule:

Section 35A-1-104, and Subsections 35A-1-104(4) and 35A-4-502(1)(b)

Anticipated cost or savings to:

the state budget:

This is a federally-funded program and there will be no cost or savings to the state budget. This amendment only applies to nonprofit organizations.

local governments:

This is a federally-funded state-run program and there will be no cost or savings to any local governmental entity. This amendment only applies to nonprofit organizations.

other persons:

There will be no cost or savings to other persons. Reimbursable employers have not been held liable for benefit costs resulting from agency error for the last 20 years.

Compliance costs for affected persons:

There are no compliance costs associated with this proposed amendment for any persons.

Comments by the department head on the fiscal impact the rule may have on businesses:

There will be no impact on businesses as a result of this rule. Reimbursable nonprofit organizations have not been liable for agency errors for 20 years when the first rule amendment was passed regarding such errors. Tani Downing, Executive Director

The full text of this rule may be inspected, during regular business hours, at the Division of Administrative Rules, or at:

Direct questions regarding this rule to:

Suzan Pixton at the above address, by phone at 801-526-9645, by FAX at 801-526-9211, or by Internet E-mail at spixton@utah.gov

Interested persons may present their views on this rule by submitting written comments to the address above no later than 5:00 p.m. on:

07/01/2005

This rule may become effective on:

07/02/2005

Authorized by:

Tani Downing, Executive Director

RULE TEXT

R994. Workforce Services, Workforce Information and Payment Services.

R994-309. Nonprofit Organizations.

R994-309-105. Reimbursable Employer's Liability for Benefits Paid.

[The reimbursable employer's liability will be limited to the benefits paid to the claimant and benefits overpaid as a result of the failure of the reimbursable employer to provide complete and accurate information within the time limitations of the Department's request. The employer will not be liable for benefits overpaid as a result of a Department decision which is later reversed. Any benefits established as an overpayment due to claimant fault will be deducted from the employer's liability or refunded as the overpayment is repaid by the claimant.](1) The reimbursable employer's liability is limited to the amount of benefits paid to the claimant.

(2) The employer is not liable for benefits overpaid as a result of agency error or a Department decision which is later reversed unless the reversal was due in whole or in part to the failure of the reimbursable employer to provide complete and accurate information within the time limits prescribed by the Department.

(3) Any benefits established as an overpayment, except overpayments due to the failure of the employer to provide information as provided in subparagraph (2) above, will be deducted from the employer's liability or, at the Department's discretion, refunded as the overpayment is recovered.

(4) If a claimant continues working part-time for a reimbursable employer and had other employment during the base period, the reimbursable employer may be eligible for relief of charges if all the requirements of rule R994-401-302(1) are met.

KEY: unemployment compensation, nonprofit organization

[1989]2005

Notice of Continuation July 14, 2004

35A-4-309

ADDITIONAL INFORMATION

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For questions regarding the content or application of this rule, please contact Suzan Pixton at the above address, by phone at 801-526-9645, by FAX at 801-526-9211, or by Internet E-mail at spixton@utah.gov

For questions about the rulemaking process, please contact the Division of Administrative Rules (801-538-3764). Please Note: The Division of Administrative Rules is NOT able to answer questions about the content or application of these administrative rules.