Unemployment Insurance Law Summaries
Tennessee, Unemployment Insurance Law Summaries
Tennessee's unemployment insurance law is located in Title 50, Chapter 7, Tennessee Code Annotated, 1983, Secs. 50-7-101 to 50-7-714, as amended; and in the Rules of the Department of Labor and Workforce Development, Rules 0560-1-1-.01 to 0560-2-4-.12. The full text of the law is available beginning at Unemployment Insurance Reports UI-TN ¶4200.
DEFINITIONS
“Employer” status is created by payment 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 weeks in either the current or preceding calendar year. Employer subject to the FUTA is automatically subject to the Tennessee law.
“Employment:” Service, including service in interstate commerce, by any officer of a corporation, or by any individual who, under the usual common-law rules for determining the employer-employee relationship, has the status of an employee, and by certain agent-drivers or commission drivers and traveling or city salespersons. Service by an officer or member of the crew of an American vessel or American aircraft is covered if the operating office from which the operations of that vessel or aircraft are managed and controlled is located within Tennessee.
Service is considered employment, regardless of whether the common-law relationship of master and servant exists, unless and until it is shown that:
the individual is free from control and direction; and
the service is performed outside the usual course of the employer's business or outside all the places of the employer's business; and
the individual is customarily engaged in an independently established trade, occupation, profession or business.
Generally, employment subject to the FUTA is automatically subject to the Tennessee law. Exceptions from employment are listed below.
The term “wages” means all remuneration paid for personal services from whatever source, including commissions, bonuses, tips that are both paid to an employee while performing services that constitute employment and that are included in a written statement furnished by the employee to the employer pursuant to IRC Sec. 6053(a), tips allocated by the employer pursuant to IRC Sec. 6053(c)(3), employee salary reduction contributions to cafeteria plans pursuant to IRC Sec. 125, and the cash value of all remuneration in any medium other than cash. Sickness and accident disability payments are wages unless awarded under a workers' compensation law. Term “wages” does not include the following:
Remuneration over $7,000 paid by employer to an individual during any calendar year with respect to employment. Wages for employment covered by law of another state and wages paid by employer's predecessor may be included in first $7,000.
Other exclusions from wages are listed below.
Notwithstanding above provisions, “wages” includes remuneration paid by employing unit subject to federal unemployment tax.
COVERAGE
Generally, employment subject to the FUTA is automatically subject to the Tennessee law. Service is considered employment, regardless of whether the common-law relationship of master and servant exists, unless and until it is shown that:
the individual is free from control and direction;
the service is performed outside the usual course of the employer's business or outside all the places of the employer's business; and
the individual is customarily engaged in an independently established trade, occupation, profession or business.
Exclusions from coverage are listed below.
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 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 (1) 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, and (2) the crew member is not an employee of the individual for whom the services are performed. In either of these cases, the crew leader is the employer.
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 for such service in any quarter of the current or preceding calendar year.
Government and nonprofit employers.- Mandatory coverage is required for tax-exempt nonprofit organizations employing four or more individuals for some portion of a day in each of 20 weeks within either the current or preceding calendar year.
Most services for the state and its political subdivisions are mandatorily covered.
Other government services are not covered.
Nonprofit organizations have the option of financing benefits by the regular contributions or reimbursement method. Any governmental employer has the option of paying contributions or making payments in lieu of contributions. Any such employer that elects to pay contributions may not pay at a rate higher than 1.5%.
Employers using reimbursement financing have a choice of either of the following methods:
payments equal to the full amount of regular plus 50% (100% for governmental employers) the extended benefits paid to claimants, or
a variable percentage based on total payroll.
Under the latter method, employers are subject to an adjustment to reflect actual benefit costs.
EXCEPTIONS
Wages.- The term “wages” does not include the following:
Remuneration over $7,000 paid by employer to an individual during any calendar year with respect to employment. Wages for employment covered by law of another state and wages paid by employer's predecessor may be included in first $7,000.
Payment by employer to, or on behalf of, individuals in its employ under plan or system established on account of retirement, sickness or accident disability paid under a workers' compensation law, medical and hospitalization expenses, or death.
Payment of employees' FICA tax without deduction from wages.
Payment on account of sickness or accident disability or medical or hospitalization expenses in connection with sickness or accident disability made by an employer to, or on behalf of, an employee after the expiration of six calendar months following the last month in which he or she worked for the employer.
Notwithstanding above provisions, “wages” includes remuneration paid by employing unit subject to federal unemployment tax.
Employment.- The term “employment” does not include the following:
Direct seller if (a) the individual is engaged in the trade or business of selling or soliciting the sale of consumer products on a buy-sell, deposit-commission, or similar basis for resale in the home or otherwise than in a permanent retail establishment; or (b) the individual is engaged in the trade or business of selling consumer products to a consumer in the home or otherwise than in a permanent retail establishment and substantially all of his or her remuneration is based on sales or other output, rather than hours worked, and the services are performed pursuant to a contract providing that he or she will not be treated as an employee for FUTA purposes.
Full-time student in the employ of an organized camp if (a) the camp did not operate for more than seven months in either the current or preceding calendar year, or had average gross receipts for any six months in the preceding calendar year that were not more than 33
% of its receipts for the other six months; and (b) the student performed services for the camp for fewer than 13 weeks in the calendar year.
Insurance agents or solicitors solely by way of commission.
Service performed as a product demonstrator pursuant to a written contract between the demonstrator and a person whose principal business is providing demonstrators to third parties, if the contract provides that the demonstrator will not be treated as an employee.
Railroad employees covered by Railroad Unemployment Insurance Act.
Real estate agent if (a) licensed; (b) substantially all of the remuneration for the services performed is directly related to sales or other output, rather than the number of hours worked; and (c) the services are performed pursuant to a written contract providing that the agent will not be treated as an employee for FUTA purposes.
Relatives, i.e., service performed by individual in employ of son, daughter, or spouse, or by child under 18 in employ of parent.
Service covered by federal unemployment compensation system providing for payment of benefits to maritime employees.
Service for school, college, or university by student in regular attendance, or by spouse of that student if spouse's employment is under program of assistance to the student.
Service by 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.
Service for a hospital by a patient of the hospital.
Service performed on a boat engaged in catching fish or other forms of aquatic animal life under an arrangement with the boat owner or operator providing that the fisherman receives no cash remuneration, but instead a share of the catch or a share of the proceeds from the catch, and that his share depends on the amount of the catch, but only if the operating crew of the boat is normally made up of fewer than 10 individuals.
Government and nonprofit employers.- Mandatory coverage is required for tax-exempt nonprofit organizations employing four or more individuals for some portion of a day in each of 20 weeks within either the current or preceding calendar year.
Most services for the state and its political subdivisions are mandatorily covered. Other government services are not covered.
Services for nonprofit organizations and the state may exclude the following:
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, and by an inmate committed to such an institution for any employer.
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.
Services performed by election official or election worker if remuneration is less than $1,000 per year.
PROCEDURES
Base period.- First four of the last five completed calendar quarters preceding benefit year.
Benefit year.- 52-week period beginning with first day of first week with respect to which individual first files valid claim for benefits. Last preceding benefit year will be 53 weeks if 52 weeks would result in overlap of any calendar quarter of the base period of new benefit year with the same calendar quarter in the base period of previous benefit year.
Weekly benefit amount.- $30 to $275 for benefit years established on or after August 5, 2001. An individual's weekly benefit amount depends on his/her wages in the two highest quarters of base period. Benefit amount reduced by wages (not including remuneration payable for service performed in Tennessee National Guard) payable in excess of $50 or 25% of claimant's weekly benefit amount (Sec. 50-7-301).
Maximum total benefits.- Lesser of
26 times weekly benefit amount, or
base-period wages.
In addition, during periods of high unemployment, payment of extended benefits at a claimant's regular weekly benefit rate.
Benefit eligibility; Requirements.-
Base-period earnings of 40 times weekly benefit amount and wages outside the high quarter of at least six times weekly benefit amount or $900;
for the minimum benefit, the two highest quarter base period wage requirement is $780.01;
serve one-week waiting period;
be able and available for work and make a reasonable effort to secure work, except claimant not deemed ineligible due to unavailability due to illness or disability occurring after registration if no suitable work offered;
participate in reemployment services under a work profiling system if required to do so;
has not left employment to avoid taking a drug or alcohol screening test, or after receiving a positive result to such a test.
Notwithstanding availability for work requirement and disqualification for refusal of suitable work without good cause, no benefits may be denied individual in approved training providing he or she is not entitled to training or retraining benefits under federal or state law. No benefits will be denied a veteran enrolled in school under the G.I. Bill. If qualifying base period wages include wages paid before establishment of the previous benefit year, claimant must have wages for work performed after the establishment of the previous benefit year equal to five times current weekly benefit amount.
Benefits are not assignable, but deductions may be made for repayment of food stamp overissuances (Sec. 50-7-612) and child support obligations (Sec. 50-7-611). In addition, income taxes may be deducted from benefit payments if claimant so chooses.
Benefits will not be denied for separation from employment pursuant to a labor-management contract or agreement or an established employer plan, program or policy that permits the employee, because of lack of work, to accept a separation from employment.
No benefits may be paid to instructors, researchers or certain administrators of an educational institution during school vacation periods or paid sabbatical leaves based on service with such institution.
No benefits are payable to nonprofessional employees of an educational institution during periods between successive years or terms if there is reasonable assurance or reemployment in the second year or term. Retroactive payment of benefits may be claimed if no opportunity to work is given in the second year or term.
Similar disqualifications apply to individuals performing services in educational institutions while in the employ of an educational service agency, and during vacation and recess periods.
Benefits are not payable to a professional athlete during periods between two successive sport seasons if the individual has a reasonable assurance of performing services in both such seasons.
Benefits are not payable to an alien unless he/she has been lawfully admitted for permanent residence, is lawfully present for the purpose of working, or is otherwise permanently residing in the United States under color of law.
No benefits may be denied to a claimant who is not entitled to vacation pay when his or her plant or department has been shut down for vacation purposes.
Disqualifications Period.- Voluntary leaving without good cause connected with the work -duration of unemployment and until 10 times weekly benefit amount is earned in covered work. Disqualification does not apply if claimant can show that he/she was forced to leave work because he/she was sick or disabled, and if claimant so notified his or her employer and returned to that employer and offered himself or herself for work as soon as he/she was again able to work. Pregnancy is considered in the same manner as any other disability. Disqualification also does not apply if he/she left work to join the armed services.
Discharge for misconduct in connection with work (other than gross misconduct)-duration of unemployment and until 10 times weekly benefit amount is earned in covered work.
Refusal of suitable work without good cause-duration of unemployment and until 10 times weekly benefit amount is earned in covered work.
Labor dispute (other than lockout)-duration of the dispute and until claimant has secured covered employment and has been paid 10 times his/her weekly benefit amount.
Receipt of temporary partial disability benefits under any state or federal workers' compensation law, or unemployment benefits under any state or federal law, including state or federal retraining laws-period for which such benefits are paid.
Misrepresentation to obtain benefits-five to 53 weeks.
Receipt of governmental or other pension, retirement or retired pay, annuity or other periodic payment under a plan maintained or contributed to by a base period or chargeable employer-weekly benefit amount reduced by
entire amount of pension payment if 100% of contributions to plan were made by base period or chargeable employer and
none of the pension payment if any contributions to the plan were provided by the claimant during the base period.
Appointment as election official-no disqualification if individual is dismissed to act as an appointed election official if the employer was notified at least five days prior to such election.
WHAT THE EMPLOYER MUST DO
Pay the standard rate.- 5.5%. Maximum possible rate is 10.0%. No employee tax.
Premium rates.- Premium rates are determined for an employer for each six-month period beginning July 1 and January 1 on basis of its record up to the end of the preceding calendar year. However, no employer is entitled to a reduction in rate unless its account has been chargeable with benefits for the three preceding calendar years. The new employer's rate is based on its industrial classification and will be 2.7% unless the employer's business/industry is within a select NAICS Code. In those industries, the new employer will be assigned a rate that ranges from 5.0% to 6.0% through June 30, 2009.
The rate for an employer who has failed to file all reports necessary to determine its reserve ratio will be based on its taxable payroll in the most recent calendar year in which all such reports were submitted, plus a 50% increase for positive-balance employers and a 50% reduction for negative-balance employers. No such employer with a zero or positive balance will be assigned a rate based on a minus reserve and no employer with a negative balance will be assigned a rate higher than the highest rate in the applicable tax schedule.
The rate applicable to each qualified employer depends on its individual reserve ratio, which is the total premiums paid on or before January 31 minus all benefits charged, divided by the employer's taxable payroll for the three most recent calendar years.
Premium rates are determined for six-month periods from one of six schedules, depending on the fund balance on June 30 and December 31. The schedule of rates for negative-balance employers ranges from 5.0% to 10.0% under all six schedules. For positive-balance employers:
Schedule 1 ranges from 0.5% to 4.5%,
Schedule 2 ranges from .45% to 3.9%,
Schedule 3 ranges from 0.4% to 3.3%,
Schedule 4 ranges from 0.3% to 3.0%,
Schedule 5 ranges from 0.15% to 2.6%,
Schedule 6a ranges from zero to 2.3%, and
Schedule 6b ranges from zero to 2.45%.
If the trust fund balance is under $450 million, Table 1 is in effect;
if the trust fund balance is $450 million but under $525 million, Table 2 is in effect;
if the trust fund balance is $525 million but under $600 million, Table 3 is in effect;
if the trust fund balance is $600 million but under $675 million, Table 4 is in effect;
if the trust fund balance is $675 million but under $750 million, Table 5 is in effect; and
if the trust fund balance is $750 million or more, Table 6a or 6b is in effect.
Tables 1, 2, 3, 4, 5 and 6a apply for the calendar quarters prior to the sunset of the Tennessee job skills fee. Tables 1, 2, 3, 4, 5, and 6b apply for the calendar quarters after the sunset of the Tennessee job skills fee. Note that if Schedule 6a is in effect, a 0.15% job skills fee is imposed on contributing employers with reserve ratios of at least zero, but less than 12%. The fee is imposed on a $7,000 wage base, even if the Tennessee wage base is increased.
Effective from July 1, 2008, until June 30, 2009, new nongovernmental employers continue to pay 2.7%; new construction employers under NAICS category 23 pay 5.0%; new manufacturing employers under NAICS category 31 pay 5.5%; new manufacturing employers under NAICS category 33 pay 6.0%; new mining employers under NAICS category 21 pay 6.0%; and new governmental employers continue to pay 1.5%.
Effective July 1, 2008, and until December 31, 2008, Premium Rate Table 4 is in effect. Employers with a positive reserve ratio of 20% or more will receive a 0.30% premium rate. However, this does not mean that it is unnecessary to file reports or to file them on a timely basis.
Rates for Premium Rate Table 1are set forth below:
Reserve
Ratio
|
Rate (%)
|
|---|
20.0 and over
|
.50
|
18.0 and less than 20.0
|
.70
|
16.0 and less than 18.0
|
.90
|
14.0 and less than 16.0
|
1.1
|
12.0 and less than 14.0
|
1.3
|
11.0 and less than 12.0
|
1.6
|
9.5 and less than 11.0
|
2.1
|
8.0 and less than 9.5
|
2.5
|
7.0 and less than 8.0
|
2.9
|
6.0 and less than 7.0
|
3.3
|
5.0 and less than 6.0
|
3.8
|
2.7 and less than 5.0
|
4.1
|
0.0 and less than 2.7
|
4.5
|
Less than 0.0 and more than −2.0
|
5.0
|
−2.0 and more than −4.0
|
5.5
|
−4.0 and more than −6.0
|
6.0
|
−6.0 and more than −8.0
|
6.5
|
−8.0 and more than −10.0
|
7.0
|
−10.0 and more than −12.0
|
7.5
|
−12.0 and more than −14.0
|
8.0
|
−14.0 and more than −16.0
|
8.5
|
−16.0 and more than −18.0
|
9.0
|
−18.0 and more than −20.0
|
9.5
|
−20.0 and under
|
10.0
|
A special schedule of rates, ranging from 0.3% to 1.8% for positive-balance employers and from 2.0% to 3.0% for negative-balance employers, applies to governmental entities that have elected to pay premiums.
Special requirements apply in the case of public construction or maintenance contracts in which the total contract sum exceeds $100,000 and the time of performance is more than six months. The primary contractor must give timely notice to the Department of any subcontracts of $10,000 or more in which labor is involved, and must fulfill certain other requirements, or the contractor may itself become liable for the premiums due on the subcontract.
A mechanism is provided for assessing employers for a proportionate share of the interest costs due on advances from the federal government (no such advances are currently outstanding).
Nonprofit organizations have the option of financing benefits by the regular contributions or reimbursement method. Any governmental employer has the option of paying contributions or making payments in lieu of contributions. Any such employer that elects to pay contributions may not pay at a rate higher than 1.5%.
Employers using reimbursement financing have a choice of either of the following methods:
payments equal to the full amount of regular plus 50% (100% for governmental employers) the extended benefits paid to claimants, or
a variable percentage based on total payroll.
Under the latter method, employers are subject to an adjustment to reflect actual benefit costs.
Job skills fund.- The Tennessee job skills program is a workforce development incentive program to enhance employment opportunities. The program gives priority to the creation and retention of high wage jobs and focuses on employers in industries that promote high-skill, high-wage jobs in high-technology areas, emerging occupations or skilled manufacturing jobs. At least 70% of the Tennessee job skills funds spent on Tennessee job skills grants is to be used for assisting existing employers.
Until December 31, 2010, and effective for the quarter beginning July 1, 2001, each employer who has an unemployment insurance premium rate determined by matching such employer’s own reserve ratio to the appropriate premium rate in premium rate table 1, 2, 3, 4, 5, 6a, or 6b and who has a reserve ratio of at least 0.0% but less than 12%, will be assessed a Tennessee job skills fee. The fee is 0.15% of the employer’s wages, and applies only when premium rate table 6a is in effect. In the event that the statutory provision is amended to increase the amount of wages on which employers pay their unemployment insurance premiums to an amount greater than $7,000 to each employee during the calendar year, the jobs skills fee will be reduced proportionately.
DEADLINES
Tax and wage.- Quarterly Premium and Wage Reports, Form LB-0456 and LB-0851 are to be submitted with payment by the appropriate due date, which is on or before the last day of the month, following the calendar quarter. Internet and magnetic media filing are available.
Bills are mailed to reimbursing employers at end of each calendar quarter and payment must be made not later than 30 days from date of billing.
Interest is charged at the rate of 1
% per month or any portion of a month from due date for late payment. Penalty is charged at the rate of $10 per month or any fraction thereof up to a maximum of $50 for late submission of report.
ENFORCEMENT
The Tennessee Employment Security Law is administered by the Department of Labor and Workforce Development.
If after due notice an employer defaults in payment of premiums or interest thereon, the amount due may be collected by civil action in the name of the Commissioner, and the employer adjudged in default shall pay the costs of such action. In addition the Commissioner is authorized to issue, under his hand and seal, a distress warrant against a delinquent employer for the amount of the premium and any interest thereon which may be due and unpaid as of the date of such issuance. Such distress warrants are to be returned within 30 days and have the same force and effect as other distress warrants authorized by law for the collection of delinquent taxes. All collections must be made within six years from the due date of such premiums, or the right of action therefor ceases.
Records.- The Commissioner, the Board of Review, or an Appeals Referee may require from a claimant all necessary information to process a claim and from any employing unit any sworn or unsworn reports, with respect to persons employed by it, which any of them deem necessary for the effective administration of the Law. In particular, the Commissioner can require reports from any employing unit in connection with its business, covered employment, wages, hours of employment, and related matters.
WHO TO CONTACT
The Tennessee Employment Security Law is administered by the Department of Employment Security, Davy Crockett Tower, 10th Floor, 500 James Robertson Parkway, Nashville, Tennessee 37245-1700. Telephone (615) 741-1948.
RECORDKEEPING
The Tennessee Employment Security Law provides that each employing unit must keep true and accurate work records, for such periods of time and containing such information as the Commissioner may prescribe. The Regulations prescribe that these records shall be preserved for a period of at least seven years.
Such records shall be open to inspection and shall be subject to being copied by the Commissioner or his authorized representatives at any reasonable time and as often as may be necessary. The information thus obtained is confidential, except to the extent that such information is necessary for the presentation of a claim for benefits. Note, however, that hearings before an Appeals Referee or the Board of Review are open to the public and that information in the record is generally open to public inspection.
POSTING
Each employer shall post and maintain, in places readily accessible to employees, printed statements concerning benefit rights, claims for benefits and related matters, as the Commissioner may by regulation prescribe. Employers may also be required to distribute unemployment compensation material or literature furnished by the Department. See ¶44-9900 .
PENALTIES
Interest and penalties.- Premiums that remain unpaid on the due date bear interest at the rate of 1.5% for each month or any portion of a month from and after such date until payment plus accrued interest is received by the Commissioner.
Employers who finance benefits by the reimbursement method and whose payments are past due are subject to the same interest and penalties as apply to employers whose contributions are past due.
The law provides that it shall be a felony, punishable by imprisonment for not less than one nor more than three years, for any person to make a false statement or representation knowing it to be false, or to intentionally fail to disclose a material fact, in order to avoid becoming or remaining subject to the law or to avoid or reduce any contribution or other payment required by the law. It is also a felony to fail or refuse to: make premiums; furnish reports required under the law; or produce or permit the inspection or copying of records as required by the law.
An employer who fails or refuses to file a quarterly wage report and quarterly premium report within the required time, or who intentionally files an incomplete report, will pay a penalty of $10 for each month or portion thereof that the report is due. However, the total penalty for each late report may not exceed $50. Where an employer erroneously files reports and pays another state or federal agency, it has until the end of the month following the month in which notification of Tennessee liability is given to file reports and pay premiums due without interest or penalty.
A penalty of $50 may be assessed against any employer for failure to timely file partial claims required by regulations and within the time limits required by regulations for individuals having regular jobs with such employers, but who have sustained underemployment, as defined in the regulations. If the Commissioner finds that the employer had good cause for failure to comply with the regulations, the penalty may be waived.
In the event that an employing unit fails to file required reports or files incorrect or insufficient reports, the Commissioner may, after due notice, assess premiums on the basis of the information available to him. The assessment will become final in 30 days unless the employer timely files an application for review and redetermination with the Department of Labor and Workforce Development.
A subject employer who fails to file required reports or to pay premiums due under the law shall forfeit its right to do business in Tennessee until it complies with all the provisions of the law, and enters into a bond with sureties, to be approved by the Commissioner, in an amount not in excess of all contributions estimated to become due by said employer for any three-month period. The Commissioner may enjoin the continuance of business of any employer who so forfeits its right to do business by applying to a court of competent jurisdiction.
Bankruptcy.- Where an employer's assets are distributed pursuant to a court order under any law of Tennessee, premiums then or thereafter due have the same priority as now provided by the State of Tennessee for the payment of debts and taxes due it. In the event of adjudication in bankruptcy, etc., under the Federal Bankruptcy Act, premiums are entitled to the priority provided in section 64(a) of that Act.
Liens.- A lien is created in favor of the Department when an employer defaults in payments of premiums, interest, penalties or costs. Notice of such lien is to be recorded in the county where the defaulting employer's business or residence is located or where the employer has an interest in property.
In any civil action where the Commissioner is not joined as a party, a judgment or resulting judicial sale with respect to property on which the Department of Labor and Workforce Development has or claims a lien shall be made subject to, and without disturbing, the lien if it has been properly and timely filed. Where a lien of the Department is discharged by a judicial sale of property pursuant to a civil action to which it was not a party, the Department may claim the proceeds with the same priority as its lien had against the property sold at any time before the distribution of the proceeds is ordered. The Department also has authority to redeem real property that is subject to liens prior to that of the Department if it is not given proper notice of sale. The law also provides for the imposition of a jeopardy assessment when the Commissioner or his delegates determine that collection of premiums, interests, penalties or costs that have accrued but may not yet be due will be jeopardized by delay. The amount of the assessment will be due immediately, and immediate notification and demand shall be made by the Commissioner or his delegate.
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