By Payroll and Entitlements Editorial Staff
The State of Nevada has amended its Unemployment Compensation Law as follows:
The Nevada Unemployment Compensation Law generally: (1) requires employers to pay contributions into the Unemployment Compensation Fund at a certain rate of the wages paid by the employer for employment; and (2) makes persons who have become unemployed and comply with certain requirements eligible for benefits from the Unemployment Compensation Fund in an amount based on the person’s previous wages for employment.
Positions. Existing law requires the Administrator of the Employment Security Division of the Department of Employment, Training and Rehabilitation to fill all positions in the Division, except the post of Administrator and Senior Attorney, from registers prepared by the Division of Human Resource Management of the Department of Administration. Section 2.5 of the bill exempts from this requirement any positions for attorneys.
Confidentiality. Existing federal law imposes various requirements on states concerning the confidentiality and disclosure of information related to unemployment compensation. Section 3 of the bill revises and removes certain provisions of existing law concerning the confidentiality of such information and the circumstances under which the Administrator is authorized to disclose such information for the purposes of complying with federal law.
Extended benefits. Existing law requires an eligible person who is unemployed in any week to be paid a benefit for that week in the amount of the person’s weekly benefit amount, less 75 percent of the remuneration payable to the person for that week. Section 4 of the bill reduces this percentage to 66 2/3 percent of the remuneration payable to the person beginning January 1, 2022. Existing law provides for the payment of extended unemployment benefits to a person who has exhausted his or her regular unemployment benefits and who meets certain eligibility requirements during an extended benefit period. In addition, under existing law, an extended benefit period: (1) begins after the Administrator makes certain determinations relating to the level of unemployment in the state; and (2) is prohibited from lasting more than 13 consecutive weeks. Existing law also prohibits an extended benefit period from beginning before the 14th week following the end of a prior extended benefit period which was in effect for Nevada. Section 5.5 of the bill authorizes an extended benefit period to begin before the 14th week following the end of a prior extended benefit period if authorized by federal law and Section 20 applies this authorization retroactively on and after December 27, 2020.
Reasonable assurance. Existing federal law requires that unemployment benefits be denied to certain employees of educational institutions for any period between successive academic years or terms, a vacation or a recess for a holiday, if there is reasonable assurance that the employee will return to service in the ensuing academic year for any educational institution. The United States Department of Labor has issued guidance setting forth certain procedures concerning the application of this requirement to employees of multiple educational institutions. Sections 6 and 7 of the bill set forth requirements for determining the eligibility for unemployment benefits of persons who provide services in multiple capacities for educational institutions in accordance with federal guidance.
Electronic documents. Under existing law, the Administrator or Division is authorized to provide documents or communications to a person electronically if the person has requested to receive documents or communications electronically. Sections 5, 8-13, 15-17, and 18 of the bill revise these provisions to require that certain notices, bills and other communications relating to unemployment compensation be mailed or personally served for the purposes of allowing such notices, bills and communications to be provided electronically.
Petitions for review. Section 13.5 of the bill specifies that a petition for judicial review of a decision of the Board of Review that is required to be served upon the Administrator under existing law is required to be served upon the Administrator at a designated office of the Administrator in Carson City.
Refunds and adjustments. Existing law requires an employer who wishes to make an application for a refund or adjustment relating to a payment of contributions, forfeit or interest that has been erroneously collected to make such an application not later than three years after the date on which such payments become due. Section 17.5 of the bill removes the three-year limitation with respect to applications for refunds.
Under existing law, an adjustment or refund will not be made with respect to contributions on wages which have been included in the determination of an eligible claim for benefits unless it is shown to the satisfaction of the Administrator that the determination was due entirely to the fault or mistake of the Division. Section 17.5 removes these limitations with respect to the making of refunds.
Fees. Section 18.5 prohibits the State of Nevada from being charged fees of any kind in any proceeding under the Unemployment Compensation Law.
Charging of benefits. Under existing law, an employer’s contribution rate is based on the employer’s experience rating, which reflects the amount of unemployment compensation benefits that are paid to former employees and charged to the employer’s experience rating record. Existing law requires, in general, that a certain percentage of unemployment benefits paid to a person be charged against the experience rating record of each employer from which the person received wages during his or her base period. Section 19.5 of the bill provides that benefits paid to a person during the second or third calendar quarter of calendar year 2020 are prohibited from being charged against the experience rating record of any of the person’s base period employers.
Reimbursements from employers. Existing law authorizes certain employers to reimburse the Unemployment Compensation Fund for benefits paid to their former employees rather than making quarterly contributions to the Fund. Existing law also requires the Administrator, after the end of each calendar quarter or at the end of any other period as determined by the Administrator, to determine the amount of reimbursement due from each employer who has elected to make reimbursement in lieu of contributions and bill each such employer for that amount.
Transfers of funds. Existing federal law requires the Secretary of Labor to transfer funds to the accounts of the states in the Unemployment Trust Fund which are required to be used to reduce the amounts required to be paid in lieu of contributions by employers who have elected to make reimbursement in lieu of contributions for weeks of unemployment during the period beginning on March 13, 2020, and ending on September 6, 2021. Section 19.5 of the bill requires the Administrator, in determining the amount of reimbursement due from an employer who has elected to make reimbursement in lieu of contributions that is attributable to benefits paid to a person during a week of unemployment in which such federal funds are available, to reduce the amount of reimbursement due by such an amount as to: (1) use all such federal funds which are available; and (2) result in the employer owing no amount of reimbursement for that week (Senate Bill 75, L. 2021).
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