Subject of Possible Rule Making: Owners of entities are not covered for unemployment insurance purposes.

Statutes Authorizing the Agency to Adopt Rules on this Subject: RCW 50.04.090 and 50.04.100.

Reasons Why Rules on this Subject may be Needed and What They Might Accomplish: This is a current policy of the UI Division's UI Tax Administration Branch that is being converted to a rule in accordance with Governor Locke's Executive Order 97-02. It assists in the protection of the integrity of the UI Trust Fund and informs owners of select businesses and business entities that they are ineligible for unemployment insurance.

Other Federal and State Agencies that Regulate this Subject and the Process Coordinating the Rule with These Agencies: The Department of Labor and Industries and the federal Department of Labor have regulations in this area.

Process for Developing New Rule: Informal meetings with stakeholders and interested parties.

Interested parties can participate in the decision to adopt the new rule and formulation of the proposed rule before publication by contacting George Mante, UI Tax Regulatory Reform Coordinator, UI Tax Administration, Employment Security Department, P.O. Box 9046, Olympia, WA 98507-9046, fax (360) 902-9556.

September 14, 1999

Carver Gayton

Commissioner

The owners of a business as identified in RCW 50.04.090 include business entities such as limited liability companies, limited liability partnerships, etc. There is no employer-employee relationship in the services provided to the business by the owners, as defined in RCW 50.04.100. Therefore owners are not covered for unemployment insurance purposes.

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