EXPEDITED ADOPTION
Title of Rule: Employer election to cover individuals--Interstate reciprocal coverage agreement.
Purpose: To set forth the procedures and process by which a multi-state employer may elect coverage for unemployment insurance purposes for its' workers from a single state.
Statutory Authority for Adoption: Chapters 34.05 and 50.12 RCW.
Statute Being Implemented: RCW 50.12.060.
Summary: This rule is being revised to promote clarity and delete archaic language. This rule is being renumbered and rewritten in accordance with recent mandates from the state legislature and the Governor's Office to remove sections of rules that are difficult to understand and clarify the intent of the rule.
Reasons Supporting Proposal: This rule is being amended in compliance with Governor Locke's Executive Order 97-02.
Name of Agency Personnel Responsible for Drafting: George Mante, 212 Maple Park, Olympia, WA, (360) 902-9642; Implementation and Enforcement: Dale Ziegler, 212 Maple Park, Olympia, WA, (360) 902-9303.
Name of Proponent: Employment Security Department, UI Tax Administration, UI Division, P.O. Box 9046, Olympia, WA 98507-9046, governmental.
Rule is not necessitated by federal law, federal or state court decision.
Explanation of Rule, its Purpose, and Anticipated Effects: This rule has not been changed from the original rule other than to clarify archaic language and to comply with the Governor's Executive Order 97-02. This rule should read better to the general public. The rule describes the process where an employer who operates in more than one state can file an election for coverage of employees in a single state (or other jurisdiction).
Proposal Changes the Following Existing Rules: The existing rule is repealed. The new
rule is being renumbered and rewritten in accordance with Executive Order 97-02 and the
department's new easier system for identifying rules for all users. There is no substantive change
to the pervious rule.
THIS RULE IS BEING PROPOSED TO BE ADOPTED USING AN EXPEDITED RULE-MAKING PROCESS THAT WILL ELIMINATE THE NEED FOR THE AGENCY TO HOLD PUBLIC HEARINGS, PREPARE A SMALL BUSINESS ECONOMIC IMPACT STATEMENT, OR PROVIDE RESPONSES TO THE CRITERIA FOR A SIGNIFICANT LEGISLATIVE RULE. IF YOU OBJECT TO THIS RULE BEING ADOPTED USING THE EXPEDITED RULE-MAKING PROCESS, YOU MUST EXPRESS YOUR OBJECTIONS IN WRITING AND THEY MUST BE SENT TO George Mante, Employment Security Department, UI Tax Administration, P.O. Box 9046, Olympia, WA 98507-9046 , AND RECEIVED BY July 21, 1999.
May 13, 1999
Carver Gayton
Commissioner
The commissioner may enter into interstate reciprocal coverage agreements with other states for the purpose of covering services performed by a person for a single employer where the services were performed in more than one state (RCW 50.12.060). These services are to be considered performed entirely in one state where:
a. any part of the person's service is performed;
b. the person has a residence; or
c. the employer keeps a place of business.
(1) Election Process
(a) Filing. An employer for whom personal services are performed, may file an election for coverage under the laws of a single state, for individuals who normally perform services in more than one state (or other jurisdiction) using a Form RC-1 "Employer's Election to Cover Multi-State Workers". Our department also requires that any employee to be covered sign the Form RC-2A "Notice to and Acquiescence of Employee as to Unemployment Compensation Coverage" which must accompany the Form RC-1.
(b) Approval. The agency of the elected state approves or disapproves the election.
If the agency approves the election, it forwards a copy of the election to any other participating states where the individual(s) might be covered by unemployment compensation law. Each participating state approves/disapproves the election as quickly as possible and notifies the appropriate agency of the elected state. If disapproved, the disapproving state notifies the elected state of its action and reason (s) for disapproval.
(c) Withdrawal of Election. If an election is not approved, the employer may withdraw its election within ten (10) days of notification.
(d) Effective Date of Election. An approved election is effective at the beginning of the calendar quarter when the election was submitted.
(e) Termination of Election. A request for election will be automatically terminated if an employee ceases to perform work in more than one state. This termination would take place at the end of the calendar quarter when the change was discovered.
2. Reports/notices to employees by employer or electing unit.
(a) The employer notifies each person affected of any approved election and sends the elected agency a copy of such notice.
(b) If a person covered by this election becomes unemployed, the employer, or electing unit will notify him/her as to which state covers any unemployment insurance claim.
(c) If an election ceases to apply to an individual, the employer will notify the affected individual in writing.
3. Other Jurisdictions.
The commissioner may also enter into such reciprocal coverage agreements with the federal government, or foreign governments.
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The following sections of the Washington Administrative Code are repealed:
| WAC 192-12-090 | Employer election to cover individuals--Interstate reciprocal coverage agreement. |