Unemployment Insurance Law Summaries
7-1700Connecticut, Unemployment Insurance Law SummariesConnecticut's unemployment insurance law is located in Chapter 567, General Statutes, and in the Official Regulations of the Administrator of the Connecticut Unemployment Compensation Law, Secs. 31-222-1 to 31-273-8. The full text of the law is available at Unemployment Insurance UI-CT 4001 .
DEFINITIONS
"Employer" means employment of at least one individual for some portion of a day in each of 13 different calendar weeks within either the current or preceding calendar year.
Employer is one making payment of wages for employment of $1,500 or more in any calendar quarter in either the current or preceding calendar year, or employment of at least one individual for some portion of a day in each of 20 different calendar weeks in either the current or preceding year, or subject to the law on 1/1/72 by virtue of having one or more employees for some portion of a day in each of 13 different calendar weeks.
Generally, an employer subject to the FUTA is automatically an employer under the Connecticut law.
"Employment" means service, including service in interstate commerce and outside the United States, by any officer of a corporation, or by any individual who, under common law rules for determining the employer-employee relationship, has the status of an employee, certain agent-drivers or commission drivers and traveling or city salespersons, and service by officers or members of the crew of an American vessel if the operating office from which that vessel is managed and controlled is located within the state.
Service is employment, regardless of whether the common law relationship of master and servant exists, unless and until it is shown that
(1) the individual has been and will continue to be free from control and direction in connection with the performance of the service both under his or her contract to perform the service and in fact,
(2) the service is performed outside the usual course of the employer's business or outside all of the employer's places of business, and
(3) the individual is engaged in an independently established trade, occupation, profession or business.
Generally, "employment" subject to the FUTA is automatically subject to the Connecticut law. The term "employment " does not include the following:
(1) Service not in the course of employer's trade or business.
(2) Insurance agents (other than industrial life insurance agents) remunerated solely by commission.
(3) Interns in employ of hospital who have completed 4-year course in medical school.
(4) Newspaper and shopping news carriers under 18.
(5) Volunteer working in return for charitable aid.
(6) Real estate salespersons paid on commission.
(7) Relatives, i.e., services performed by individual in employ of son, daughter, or spouse, or by child under 18 in employ of parent.
(8) Service by a student enrolled at a nonprofit or public educational institution in a full-time work study program. Exemption not applicable if program established for employer or group of employers.
(9) Service for a hospital by a patient of the hospital.
(10) Service covered by federal unemployment compensation system.
(11) Service for a school, college, or university by a student in regular attendance, or by the spouse of such a student if the spouse's employment is provided under a program of assistance to the student.
(12) Student nurses in employ of hospital or training school who are attending training school.
(13) Services by an outside sales representative for a for-profit travel agency if substantially all of the services are performed outside of any travel agency premises and are performed for remuneration solely by way of commission.
(14) Agricultural and domestic employers: Service performed in agricultural labor is covered if performed for an employer who employs 10 or more workers in such labor in 20 different weeks in the current or preceding calendar year or pays $20,000 or more for such labor in any quarter of the current or preceding calendar year. When agricultural labor is supplied by a crew leader, the employing unit for which the service is performed is the employer unless the crew leader is registered under the Farm Labor Contractor Registration Act of 1963 or substantially all of the crew members operate or maintain certain mechanized equipment that is provided by the crew leader. In either of these cases, the crew leader is the employer. Service by aliens prior to 1/1/80 is excluded.
(15) Domestic service in a private home, local college club or local chapter of a college fraternity or sorority is covered if performed for an employer who paid $1,000 or more in any quarter of the current or preceding calendar year for such service.
(16) Government and nonprofit employers: Coverage is mandatory for tax-exempt nonprofit organizations employing one or more individuals in each of 13 weeks within either the current or preceding calendar year, or during any 13 weeks in any calendar year after 1970. All services performed for the state and its political subdivisions are covered, with the following exceptions (which also apply to nonprofit organizations): church or organization operated primarily for religious purposes and which is controlled by a church; religious duties of a minister or member of a religious order; patients performing services in a rehabilitation facility or sheltered workshop; individual receiving unemployment work-relief or work training under program financed by a federal agency or an agency of a state or political subdivision; inmate of a custodial or penal institution; school that is not an institution of higher education; elected officials; members of a legislative body or the judiciary; members of the State National Guard or Air National Guard; temporary employees serving in case of fire, storm, snow, earthquake, flood or similar emergency; individuals in certain major nontenured policymaking or advisory positions.
Service for the federal government and other states is not covered.
Nonprofit organizations, and towns, cities, or other political subdivisions may finance benefit payments by the contributions method or the reimbursement method. The state must use the reimbursement method. Employers using reimbursement financing make payments equal to total amount of regular and additional benefits and 1/2 extended benefits paid to claimants. A surety bond or cash or securities may be required from nonprofit organizations.
"Wages:" Remuneration for employment including cash value of remuneration paid in medium other than cash and dismissal payments. Gratuities (including "service charges" distributed among employees) paid to an employee by the employer's customers and accounted for by employee to employer are included as part of such individual's wages.
"Wages" does not include:
(1) Remuneration over $15,000. Remuneration paid by the employer's predecessor and remuneration for employment in another state may be counted in determining whether wages up to the taxable wage base have been paid. Amount will be increased if federal taxable wage base is increased to an amount over Connecticut's wage limit.
(2) The taxable wage limitation does not apply to wages paid in whole or in part from federal funds to employees of towns, cities and other political subdivisions.
(3) Payments by employer to, or on behalf of, employees under plan or system established on account of retirement, accident disability, medical and hospitalization expenses, or death (if excluded by the FUTA).
(4) Payment of employees' FICA tax without deduction from wages (only in the case of domestic service in a private home or agricultural labor).
(5) Dismissal payments an employer who is not subject to the FUTA is not legally required to make.
(6) Payments which employer is not legally required to make to employees on leave of absence for military training.
(7) Payments by a stock corporation, partnership, association, or other business entity in which 50% or more of the proprietary interest is owned by the employee or his or her son, daughter, spouse, father, or mother or any combination of such persons, provided the payment is not subject to the FUTA.
(8) Remuneration paid by any town, city or other political subdivision to an individual for service performed in lieu of payment of delinquent taxes.
COVERAGE
Generally "employment" subject to the FUTA is automatically subject to the Connecticut law.
Agricultural and domestic employers. --Service performed in agricultural labor is covered if performed for an employer who employs ten or more workers in such labor in twenty different weeks in the current or preceding calendar year or pays $20,000 or more for such labor in any quarter of the current or preceding calendar year. When agricultural labor is supplied by a crew leader, the employing unit for which the service is performed is the employer unless the crew leader is registered under the Farm Labor Contractor Registration Act of 1963 or substantially all of the crew members operate or maintain certain mechanized equipment that is provided by the crew leader. In either of these cases, the crew leader is the employer. Service by aliens prior to 1/1/80 is excluded.
Domestic service. --Domestic service in a private home, local college club or local chapter of a college fraternity or sorority is covered if performed for an employer who paid $1,000 or more in any quarter of the current or preceding calendar year for such service.
Government and nonprofit employers. --Coverage is mandatory for tax-exempt nonprofit organizations employing one or more individuals in each of thirteen weeks within either the current or preceding calendar year, or during any thirteen weeks in any calendar year after 1970. All services performed for the state and its political subdivisions are covered, with the exceptions (which also apply to nonprofit organizations) listed below.
EXCEPTIONS
Wages. --"Wages" does not include:
(1) Remuneration over $15,000 for 1999. Remuneration paid by the employer's predecessor and remuneration for employment in another state may be counted in determining whether wages up to the taxable wage base have been paid. Amount will be increased if federal taxable wage base is increased to an amount over Connecticut's wage limit.
(2) The taxable wage limitation does not apply to wages paid in whole or in part from federal funds to employees of towns, cities and other political subdivisions.
(3) Payments by employer to, or on behalf of, employees under plan or system established on account of retirement, accident disability, medical and hospitalization expenses, or death (if excluded by the FUTA).
(4) Payment of employees' FICA tax without deduction from wages (only in the case of domestic service in a private home or agricultural labor).
(5) Dismissal payments an employer who is not subject to the FUTA is not legally required to make.
(6) Payments which employer is not legally required to make to employees on leave of absence for military training.
(7) Payments by a stock corporation, partnership, association, or other business entity in which 50% or more of the proprietary interest is owned by the employee or his son, daughter, spouse, father, or mother or any combination of such persons, provided the payment is not subject to the FUTA.
(8) Remuneration paid by any town, city or other political subdivision to an individual for service performed in lieu of payment of delinquent taxes.
Employment. --The term "employment" does not include the following:
(1) Service not in the course of employer's trade or business.
(2) Insurance agents (other than industrial life insurance agents) remunerated solely by commission.
(3) Interns in employ of hospital who have completed 4-year course in medical school.
(4) Newspaper and shopping news carriers under 18.
(5) Volunteer working in return for charitable aid.
(6) Real estate salesmen paid on commission.
(7) Relatives, i.e., services performed by individual in employ of son, daughter, or spouse, or by child under 18 in employ of parent.
(8) Service by a student enrolled at a nonprofit or public educational institution in a full-time work study program. Exemption not applicable if program established for employer or group of employers.
(9) Service for a hospital by a patient of the hospital.
(10) Service covered by federal unemployment compensation system.
(11) Service for a school, college, or university by a student in regular attendance, or by the spouse of such a student if the spouse's employment is provided under a program of assistance to the student.
(12) Student nurses in employ of hospital or training school who are attending training school.
(13) Services by an outside sales representative for a for-profit travel agency if substantially all of the services are performed outside of any travel agency premises and are performed for remuneration solely by way of commission.
Government and nonprofit employers. --All services performed for the state and its political subdivisions are covered, with the following exceptions (which also apply to nonprofit organizations):
(1) Church or organization operated primarily for religious purposes and which is controlled by a church.
(2) Religious duties of a minister or member of a religious order.
(3) Patients performing services in a rehabilitation facility or sheltered workshop.
(4) Individual receiving unemployment work-relief or work training under program financed by a federal agency or an agency of a state or political subdivision.
(5) Inmate of a custodial or penal institution.
(6) School which is not an institution of higher education.
(7) Elected officials.
(8) Members of a legislative body or the judiciary.
(9) Members of the State National Guard or Air National Guard.
(10) Temporary employees serving in case of fire, storm, snow, earthquake, flood or similar emergency.
(11) Individuals in certain major nontenured policymaking or advisory positions.
(12) Service for the federal government and other states is not covered.
Nonprofit organizations, and towns, cities, or other political subdivisions may finance benefit payments by the contributions method or the reimbursement method. The state must use the reimbursement method. Employers using reimbursement financing make payments equal to total amount of regular and additional benefits and 1/2 extended benefits paid to claimants. A surety bond or cash or securities may be required from nonprofit organizations.
PROCEDURES
Base period. --First four of five most recently completed quarters preceding benefit year, provided, such quarters were not previously used to establish a prior valid benefit year. Base period of an individual who is properly absent from work under the terms of employer's sick leave or disability leave policy is the first four of the five most recently worked quarters prior to individual's benefit year.
Alternative base period. --For a period from January 1, 2003, to December 31, 2007, the base period of a benefit year for any individual who is ineligible to receive benefits using the base period set forth above will be the four most recently completed calendar quarters prior to the individual's benefit year. Provided such quarters were not previously used to establish a prior valid benefit year. Except that for any such individual who is eligible to receive or is receiving workers' compensation or who is properly absent from work under the terms of an employer's sick leave or disability leave policy, the base period shall be the four most recently worked calendar quarters prior to such benefit year. Provided such quarters were not previously used to establish a prior valid benefit year and provided further, the last most recently worked calendar quarter is not more than 12 calendar quarters prior to the date such individual makes the initiating claim. If the wage information for an individual's most recently worked calendar quarter is unavailable to the administrator from regular quarterly reports of systematically accessible wage information, the administrator will promptly contact the individual's employer to obtain such wage information.
Benefit year. --Beginning with week in which valid initiating claim filed and continuing through the Saturday of the 51st week following that week, but no benefit year may end until the third complete calendar quarter following the quarter in which the valid claim was filed has ended, including the remainder of any uncompleted calendar week which began in such third quarter.
Weekly benefit amount. --1/26 th of claimant's highest two-quarter base-period earnings, with a minimum of $15 and a maximum determined as 60% of the statewide average wage paid to production and related workers, recomputed annually as of the first Sunday in October, but increasing by not more than $18. The maximum weekly benefit amount is $483 for the year beginning 10/1/2006. A claimant is "partially unemployed" in any week of less than full-time work in which he or she has earned less than 1 1/2 times his or her weekly benefit amount, and his or her benefits will be reduced by 2/3 of his or her wages for that week. Law also provides for weekly dependency allowances: $15 each for claimant's nonworking spouse and each child and stepchild, but not more than 100% of benefit otherwise payable and not for more than five dependents. Special restrictions apply where both husband and wife are claimants.
Note that the weekly benefit rate for a construction worker (as identified in the regulations) is an amount equal to 1/26 of total wages paid during the high quarter of the base period, but not less than $15 or more than the maximum determined for other claimants.
Maximum total benefits. --26 times the weekly benefit rate. In addition, federal-state extended benefits are payable during certain periods of high unemployment, at claimant's regular weekly benefit amount.
Benefit eligibility: Requirements. --
(a) be able and available for work and making effort to find work, except, under certain conditions, if position offered is for work between 1:00-6:00 a.m. (special eligibility requirements apply to unemployed individual 62 years of age or older who has been involuntarily retired under a compulsory retirement policy or contract provision);
(b) base-period wages at least equal to greater of 40 times benefit rate for total unemployment or 1 1/2 times high quarter wages; and
(c) participate in reemployment services if necessary.
For subsequent benefit years, claimant must have been paid wages since the beginning of the prior benefit year at greater of $300 or five times weekly benefit amount.
Benefits are not payable based on instructional, research or principal administrative services performed for an educational institution during periods between school years or terms or periods of paid sabbatical leave.
Benefits are not payable based on nonprofessional services performed for an educational institution during periods between academic years or terms if there is reasonable assurance of reemployment in the second year or term. Retroactive payments of benefits may be paid to such employees if no opportunity to work is actually given in the second year or term.
Benefits are not payable to an athlete for any period between successive sport seasons if there is reasonable assurance that he or she will perform services in both such seasons.
Benefits are not payable to an alien unless he or she has been lawfully admitted for permanent residence, is lawfully present for the purpose of performing services, or is otherwise permanently residing in the United States under color of law.
Notwithstanding the availability for work requirement or the disqualification for refusal to apply for or accept suitable work, benefits may not be denied to an otherwise eligible individual in approved training.
Disqualifications --Period. --Refusal to apply for or accept suitable work --until claimant has returned to work and earned six times his or her weekly benefit amount.
Leaving work voluntarily without good cause connected with the employment or being discharged or suspended for felonious conduct; conduct constituting larceny of property or service, the value of which exceeds $25; larceny of currency, regardless of value; repeated willful misconduct in the course of the employment; until 10/1/01, just cause; or participation in an illegal strike --until the claimant has earned at least 10 times his or her weekly benefit amount. Disqualification does not apply
(1) where the person, while on layoff from his or her regular work, took other work and then left when recalled;
(2) where the person leaves work to return to his or her regular apprenticeable trade;
(3) where the person has left work due to a governmental regulation or statute;
(4) where the person leaves part-time work to accept full-time work;
(5) where the person leaves work for cause, including leaving as a result of changes in conditions created by his or her employer; or