Delaware General Assembly

CHAPTER 267 - UNEMPLOYMENT COMPENSATION LAW CHANGING DEFINITIONS, INCREASING BENEFITS AND DURATION; REDEFINING CERTAIN TERMS

AN ACT TO AMEND AN ACT KNOWN AND CITED AS THE "UNEMPLOYMENT COMPENSATION LAW", BEING CHAPTER 258, VOLUME 41, LAWS OF DELAWARE, 1937, AS AMENDED, BY MAKING CERTAIN CHANGES IN THE DEFINTIONS OF EMPLOYMENT AND WAGES; BY INCREASING THE MINIMUM WEEKLY BENEFIT AMOUNT AND. MAXIMUM DURATION OF BENEFITS AND BY MAKING CERTAIN OTHER CHANGES RELATING TO THE PAYMENT OF BENEFITS; BY PROVIDING THAT THE STATE EXPERIENCE FACTOR SHALL NEVER BE LOWER THAN 1%; BY REDEFINING THE TERMS RELATING TO SUCCESSORSHIP IN RELATION TO EXPERIENCE RATING; BY CHANGING CERTAIN OF THE ADMINISTRATIVE PROVISIONS; AND BY CHANGING THE DEFINITION OF SEASONAL EMPLOYMENT AND THE EFFECTIVE PERIOD FOR CERTAIN PROVISIONS RELATING THERETO.

Be it enacted by the Senate and House of Representatives of the State of Delaware in General Assembly met:

Section 1. That Section 2(h) (7) of Chapter 258, Volume 41, Laws of Delaware, 1937, as amended, (known and cited as the "Unemployment Compensation Law"), be and the same is hereby amended by striking out all of the said Section 2(h) (7) and inserting in lieu thereof the following:

Sec. 2(h) (7). Any employing unit which is an employer under the terms of the statute of the United States of America known and cited as the "Federal Unemployment Tax Act".

Section 2. That Section 2(i) (6) (9) of Chapter 258, Volume 41, Laws of Delaware, 1937, as amended, (known and cited as the "Unemployment Compensation Law"), be and the same is hereby amended by striking out all of the said Section 2(i) (6) (9) and inserting in lieu thereof the following:

Sec. 2(i) (6) (9). Service performed by an officer of any building and loan association, fraternal order, society, labor union, political club or political organization, service club, alumni association, or any corporation, association, society or club organized and operated exclusively for social or civic purposes. Provided, however, that the exemptions mentioned in this paragraph shall apply only when the service performed by the said officer is a part-time service. And provided, further, that the exemptions mentioned in this paragraph shall apply only when the remuneration of the officer performing the aforesaid part-time service does not exceed the sum of Seventy-five Dollars in any calendar quarter in any calendar year.

Section 3. That Section 2(i) of Chapter 258, Volume 41, Laws of Delaware, 1937, as amended (known and cited as the "Unemployment Compensation Law"), be and the same is hereby amended by adding thereto a new paragraph, to be known as Section 2(i) (7) and reading as follows:

Sec. 2(i) (7). Notwithstanding any of the other provisions of this subsection, services shall be deemed to be in employment if with respect to such services a tax is required to be paid under any Federal law imposing a tax against which credit may be taken for contributions required to be paid into a State unemployment compensation fund.

Section 4. That Section 2(n) (2) of Chapter 258, Volume 41, Laws of Delaware, 1937, as amended, (known and cited as the "Unemployment Compensation Law"), be and the same is hereby amended by striking- out all of the said Section 2(n) (2) and inserting in lieu thereof the following:

Sec. 2(n) (2). For the purposes of sections 3(b), 3(e), 4(e) and 7 of this Act that part of remuneration which, after remuneration equal to $3,000 has been paid to an individual by an employer with respect to employment during any calendar year, is paid to such individual by such employer with respect to employment du ring such calendar year and after December 31, 1940.

Provided that, if $3,000 or more of remuneration has been paid by one employer to an individual during any calendar year, some portion of which is included in such individual's base period, the $3,000 shall be equally prorated throughout the quarters of such calendar year in which he was so employed for the purposes of sections 3(b), 3(e) and 4(e) of this Act. And provided, that the remuneration paid to an individual by an employer with respect to employment in another State or other States, upon which contributions were required of and paid by such employer under an unemployment compensation law of such other State or States shall be included as a part of remuneration equal to three thousand dollars ($3,000) herein referred to.

Section 5. That Section 3 of Chapter 258, Volume 41, Laws of Delaware, 1937, as amended, (known and cited as the "Unemployment Compensation Law"), be and the same is hereby amended by striking out all of the said Section 3 and inserting in lieu thereof a new Section 3, reading as follows:

Section 3(a). Twenty-four months after the date when contributions first accrue under this Act, benefits shall become payable from the fund. All benefits shall be paid through employment offices, in accordance with such regulations as the Commission may prescribe.

WEEKLY BENEFIT AMOUNT

(b). An individual's "weekly benefit amount" shall be an amount equal to one-twenty-fifth of his total wages for employment by employers paid during that quarter of his base period in which such total wages were highest, except that if. such amount is more than Eighteen Dollars, the weekly benefit amount shall be deemed to be Eighteen Dollars, or if less than Seven Dollars, shall be deemed to be Seven Dollars, and if not a multiple of Fifty Cents, shall be computed to the next higher multiple of Fifty Cents.

(c). Each eligible individual who is unemployed in any week shall be paid with respect to such week a benefit amount equal to his weekly benefit amount less that part of the wages (if any) payable to him with respect to such week which is in excess of Two Dollars. Such benefit, if not a multiple of Fifty Cents, shall be computed to the next higher multiple of Fifty Cents.

DURATION OF BENEFITS

(d). Any otherwise eligible individual shall be entitled during any benefit year to a total amount of benefits equal to whichever is the lesser of twenty-two times his weekly benefit amount or one-fourth of his wages for employment by employers paid during his base period; provided, that if such amount is not a multiple of Fifty Cents it shall be computed to the next higher multiple of Fifty Cents; and provided that in no event shall such total amount of benefits be less than eleven times the weekly benefit amount. For the purpose of this section, wages shall be considered as wages for employment by employers for benefit purposes with respect to any benefit year only if such benefit year begins subsequent to the date on which the employer by whom such wages were paid has satisfied the conditions of Section 2(h) or Section 8(c) with respect to becoming an employer.

Section 6. That Section 4(e) of Chapter 258, Volume 41, Laws of Delaware, 1937, as amended, (known and cited as the "Unemployment Compensation Law"), be and the same is hereby amended by striking out all of the said Section 4(e) and inserting in lieu thereof the following:

Sec. 4(e). He has during his base period been paid wages for employment equal to not less than thirty times his weekly benefit amount. Provided, however, that if more than seventy-five percent of a claimant's base period wages were paid for seasonal employment as defined in Section 19 of this act, such claimant shall be eligible to receive benefits in accordance with the provisions of the said Section 19 if during his base period he has been paid wages for employment equal to not less than two hundred dollars ($200.00). For the purpose of this subsection wages shall be counted as wages for employment by employers for benefit purposes with respect to any benefit year only if such benefit year begins subsequent to the date on which the employing unit by which such wages were paid has satisfied the conditions of Section 2(h) or Section 8(c) with respect to becoming an employer.

Section 7. That Section 7(c) (2) (E) of Chapter 258, Volume 41, Laws of Delaware, 1937, as amended, (known and cited as the "Unemployment Compensation Law"), be and the same is hereby amended by striking out all of the said Section 7(c) (2) (E) and inserting in lieu thereof the following:

Sec. 7(c) (2) (E). The contribution rate for each employer for the current calendar year shall be determined prior to the due date of the first contribution for such year in accordance with the following table:

If the employer's benefit wage ratio exceeds the percentage in the last column of the table opposite the State Experience Factor, his contribution .rate shall be 3%.

Section 8. That Section 7(c) (5) of Chapter 258, Volume 41, Laws of Delaware, 1937, as amended, (known and cited as the "Unemployment Compensation Law"), be and the same is hereby amended by striking out all of the said Section 7(c) (5) and inserting in lieu thereof the following:

Sec. 7(c) (5). For the purposes of this section the words "merger, consolidation or other form of reorganization" may include the incorporation by an individual or partners of their business, providing such individual or partners thereafter remain in complete control and management of the business and affairs of the resulting corporation;

Or, the dissolution of a corporation into a partnership or individually owned business providing the resulting individually owned business or partnership is completely operated and controlled by those who were the shareholders in the predecessor corporation;

Or, the acquisition by an employing unit or employer of the business of another employer or employing unit, the objects and purposes of whose business is substantially the same as that of the acquiring employer or employing unit, and further providing the two businesses are thereafter operated as a single business entity.

The Commission shall by regulation prescribe the conditions under which a successor employer may be entitled to the experience rating of a predecessor employer, if there is a substantial continuity of identity, in changes of employer business entity from a partnership to an individual proprietorship, or from an individual proprietorship to a partnership, or in changes from a partnership into another partnership.

Section 9. That Section 9(b) of Chapter 258, Volume 41, Laws of Delaware, 1937, as amended, (known and cited as the "Unemployment Compensation Law"), be and the same is hereby amended by striking out all of the said Section 9(b) and inserting in lieu thereof the following:

Sec. 9(b). The State Treasurer shall be ex-officio, the treasurer and custodian of the fund who shall administer such fund in accordance with the directions of the Commission and shall issue his warrants upon it in accordance with such regulations as the Commission shall prescribe. He shall maintain within the fund three separate accounts: (1) A clearing account, (2) an unemployment trust fund account, and (3) a benefit account. All moneys payable to the fund, upon receipt thereof by the commission shall be forwarded to the treasurer who shall immediately deposit them in the clearing account. Refunds payable pursuant to section 14 of this Act may be paid from the clearing account upon warrants issued by the treasurer under the direction of the Commission. After clearance thereof, all other moneys in the clearing account shall be immediately deposited with the Secretary of the Treasury of the United States of America, to the credit of the account of this State in the unemployment trust fund, established and maintained pursuant to section 904 of the Social Security Act, as amended, any provisions of law in this State relating to the deposit, administration, release, or disbursement of moneys in the possession or custody of this State to the contrary notwithstanding. The benefit account shall consist of all moneys requisitioned from this State's account in the unemployment trust fund. Except as herein otherwise provided, moneys in the clearing and benefit accounts may be deposited by the treasurer, under the direction of the Commission, in any bank or public depository in which general funds of the State may be deposited, but no public deposit insurance charge or premium shall be paid out of the fund. The State Treasurer shall be liable on his official bond for the faithful performance of his duties in connection with the unemployment compensation fund provided for under this Act. Such liability on the official bond shall be effective immediately upon the enactment of this provision, and such liability shall exist in addition to the liability upon any separate bond existent on the effective date of this provision, or which may be given in the future.

Section 10. That Section 10(c) of Chapter 258, Volume 41, Laws of Delaware, 1937, as amended, (known and cited as the "Unemployment Compensation Law"), be and the same is hereby amended by striking out all of the said Section 10(c) and inserting in lieu thereof the following:

Sec. 10(c). Each Commissioner shall be paid from the unemployment compensation fund.

Section 11. That Section 12(a) of Chapter 258, Volume 41, Laws of Delaware, 1937, as amended, (known and cited as the "Unemployment Compensation Law"), be and the same is hereby amended by striking out all of the said Section 12(a) and inserting in lieu thereof the following:

EMPLOYMENT SERVICE

Section 12(a) State Employment Service. The Delaware State Employment Service is hereby established in the Unemployment Compensation Commission. The Commission, in the conduct of such service, shall establish and maintain free public employment offices in such number and in such places as may be necessary for the proper administration of this Act and for the purposes of performing such functions as are within the purview of the Act of Congress entitled "An Act to provide for the establishment of a national employment system and for cooperation with the States in the promotion of such system and for other purposes", approved June 6, 1933, (48 Stat. 113; U. S. C., title 29, sec. 49(c) as amended), hereinafter referred to as the "Wagner-Peyser Act". The provisions of the said Act of Congress are hereby accepted by this State, and the Unemployment Compensation Commission is hereby designated and constituted the agency of this State for the purposes of said Act. All moneys received by this State under the said Act of Congress shall be paid into the unemployment compensation administration fund and shall be expended solely for the maintenance of the State system of public employment offices. For the purposes of establishing and maintaining free public employment offices, and promoting the use of their facilities, the Commission is authorized to enter into agreements with the Railroad Retirement Board, or any other agency of the United States, or of this or any other State, charged with the administration of any law whose purposes are reasonably related to the purposes of this Act, and as a part of such agreements may accept moneys, services, or quarters as a contribution to the maintenance of the State system of public employment offices or as reimbursement for services performed. All moneys received for such purposes shall be paid into the unemployment compensation administration fund.

Section 12. That Section 19 of Chapter 258, Volume 41, Laws of Delaware, 1937, as amended, (known and cited as the "Unemployment Compensation Law"), be and the same is hereby amended by striking out all of the said Section 19 and inserting in lieu thereof the following:

Sec. 19(a). No benefits shall be payable in the months of January, February, March, April, November and December to any claimant more than seventy-five percent of whose base period earnings were received for seasonal employment. Provided, however, that this restriction shall not apply to payment of benefits for partial unemployment.

(b). The term "seasonal employment" means employment in a seasonal industry by a person who had been engaged in such industry during his base period and who during the portion or portions of the year when such industry was not in operation, was not engaged in any other work. Provided, however, that no occupation or industry shall be deemed to provide seasonal employment that is not part of the first processing of agricultural products. For the purposes of this section, the canning of chicken and allied products shall be considered part of such processing of agricultural products.

(c). The Commission shall make studies of the employment experience of seasonal workers and of benefits paid to seasonal workers engaged partially or entirely in seasonal employment and such studies shall serve as a basis for recommendations for future amendments to this act.

Approved March 12, 1945.