Another State Will Soon Have Employer Non-charging Prohibitions in Place, Per Section 252
Pursuant to Section 252 Unemployment Insurance integrity provisions of the Trade Adjustment Assistance Extension Act of 2011 (TAAEA), the state of Nebraska has enacted legislation prohibiting employers from being relieved of charges when they have failed to provide information to the state workforce agency within the ten day period after the mailing or electronic transmission of a request. Nebraska LB1058 amends Sec. 2. Section 48-632, Reissue Revised Statutes of Nebraska.
Just as other states Minnesota, Illinois, North Carolina, Oklahoma, and West Virginia have done, the state of Nebraska enacted legislation (LB1058) on April 10th of this year as required by Federal TAAEA legislation. The TAAEA legislation, which we have been closely following, is a prohibition on noncharging due to employer fault, and amends Section 3303 of the Internal Revenue Code of 1986. You can read more about it in our earlier blog post here.
The Nebraska legislation does not include any language referencing or defining a pattern with respect to employers’ (or their agents’) failure to respond timely or adequately to the state workforce agency’s requests for information. It does specifically define timely response by the employer as “within ten days after the mailing or electronic transmission of a request.” Unfortunately, no responsibility is doled out to timeliness on the part of the United States Postal Service……which could conceivably mean a very short window of turn-around time for employers.
Under this revised statute, in case of untimeliness as defined (within ten days), then “the employer shall forfeit any appeal rights otherwise available pursuant to section 48-634.”
Interestingly, the excerpt of the Nebraska legislation I’m referencing (via uwcstrategy.org) does not appear to specifically include the language “employers (or their agents),” only that of “employer.” Because that has been such a big part of the Section 252 provisions, in terms of reminding employers that they are still fully accountable for errors and/or untimeliness on the part of their third-party contracted agents, it begs some question as to whether “employer” is elsewhere defined to mean both employers and employers’ third party agents under Nebraska law.
What does this mean for you? If you have operations in the state of Nebraska, ensure that your in-house and/or third party UC administrator is prepared for these changes. Employers with operations in Illinois, Minnesota, North Carolina, West Virginia, and Oklahoma also face recently-passed Section 252-related legislation. Employers in other states, be on the lookout for similar legislation likely headed your way.
How Will “Section 252” Impact You?
Download our one page Fact Sheet on Section 252 to get a better understanding of key provisions that will directly impact employers.
Disclaimer: This article is general in nature and is not intended to replace the guidance of an employment tax expert and/or legal professional with regards to an appropriate course of action in your particular circumstances. Please consult with a professional for appropriate advice in your case. Pursuant to IRS “Circular 230” rules, any information included herewithin is not intended or written to be used for the purpose of avoiding penalties under the federal Internal Revenue Code.