Unemployment Insurance Law Summaries
Wyoming, Unemployment Insurance Law Summaries
The Wyoming unemployment insurance law is located in the Wyoming Statutes at Title 27, Chapter 3, Secs. 27-3-101 to 27-3-704; and in the Regulations of the Wyoming Employment Security Commission, Chapters I to XXXIII. The full text of the law is available beginning at Unemployment Insurance Reports UI-WY ¶4101 .
DEFINITIONS
“Employer:” Employing unit may become an employer (1) by employing one or more individuals; (2) by paying a certain amount of wages during a calendar year; (3) by acquiring the organization, trade, business, or assets of another employer or employing unit, under specified circumstances; (4) by voluntary election and (5) by being covered under the federal law. Indian tribes are also considered to be employers.
“Employment:” Service, including service in interstate commerce, performed for wages or under contract of hire, written or oral, express or implied, with exceptions below.
An individual who performs services for wages is an employee unless it is shown that the individual is free from control or direction over the details of the performance of services by contract and by fact, represents his or her services to the public as a self-employed individual or an independent contractor, and may substitute another individual to perform his or her services.
Service suppliers who meet certain conditions are the employers of workers supplied to clients.
Employment also includes service performed for an Indian tribe if that service is not otherwise excluded from employment as defined by Wyoming law.
Generally, employment subject to the FUTA is automatically subject to the Wyoming law.
“Wages:” Remuneration payable for services from whatever source, including commissions, bonuses, cash value of all non-cash remuneration (except as noted below), and tips received while performing services that constitute employment and tips that are included on a written statement furnished to the employer pursuant to IRC Sec. 6053(a), except:
Remuneration over an amount determined annually as 55% of the statewide average annual wage, rounded to the lowest $100, paid for employment during any year, counting wages payable by predecessor. Wage base is $21,500 for 2009. Law provides that amount will increase if federal taxable wage base is increased over the Wyoming limit.
Other exceptions from wages are listed below.
COVERAGE
Generally employment subject to the FUTA is automatically subject to the Wyoming law. Exclusions from coverage are listed below.
Agricultural and domestic employers.- Services performed in agricultural labor for an employer who employs 10 or more workers in services in 20 weeks in either current or preceding calendar year or pays cash remuneration of $20,000 or more for such services in any quarter of the current or preceding calendar year, are covered. Service performed by certain aliens is excluded as long as it is excluded under the FUTA. When agricultural labor is supplied by a crew leader, the employing unit for which the services are performed is the employer of the crew members unless the crew leader is registered under the Farm Labor Contractor Registration Act of 1963, or substantially all of the members of the crew operate or maintain certain equipment that is provided by the crew leader. In either of these instances, 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 a person who paid cash remuneration of $1,000 or more for such service in any quarter of the current or preceding calendar year.
Government and nonprofit employers.- All services for the state (with the exceptions noted below) are covered, including appointed officials of political subdivisions.
Services for a tax-exempt nonprofit organization are covered if the organization had in employment four or more individuals for some portion of a day in each of 20 different weeks within either the current or preceding calendar year.
Nonprofit organization may finance benefits by electing to make payments in lieu of contributions. All covered state employers may elect to reimburse the fund. Indian tribes may also elect the reimbursement method.
Employers electing reimbursement method must make payments equal to amount of regular benefits and
(100% for political subdivisions that have elected the reimbursement method) of the extended benefits paid to claimants. Bills must be paid not later than 30 days after mailing date. Commission may adopt regulations requiring employers electing reimbursement method to post surety bonds, money, or securities.
EXCEPTIONS
Wages.- The term “wages” does not include:
Remuneration over an amount determined annually as 55% of the statewide average annual wage, rounded to the lowest $100, paid for employment during any year, counting wages payable by predecessor. Wage base is $21,500 for 2009. Law provides that amount will increase if federal taxable wage base is increased over the Wyoming limit.
Premiums paid by employer under a plan, system or into a fund for insurance or annuities to provide an employee or class of employees retirement, sickness or accident disability, medical and hospitalization expenses, or death benefits, if the employee cannot receive any part of the payment instead of the death benefit or any part of the premium if the benefit is insured and cannot assign or receive cash instead of the benefit upon withdrawal from or termination of the plan.
Remuneration received by an employee as sick pay following a six-month continuous period of illness.
Payment of employees' FICA tax without deduction from wages.
Dismissal payments which employer is not obligated to make.
Tips or gratuities not reportable under Sec. 3306(s) of the FUTA.
Value of meals or lodging furnished by the employer for his or her convenience to the worker if the meals are furnished on the business premises of the employer or the employee is required to accept lodging on the business premises as a condition of employment.
Cafeteria plan payments, excluding cash.
Wages of a deceased worker paid to a beneficiary following the calendar year of the worker's death.
Wages paid to a disabled worker during the year in which he or she became entitled to social security disability insurance benefits.
Benefits or services received under any dependent care assistance program or educational assistance program.
Any benefit or other value received under an employee achievement award.
The value of any qualified group legal services plan, to the extent payments are excluded from gross income.
Costs of group term life insurance.
Any loan repayment that is repaid at interest rates below established market rates.
Moving expenses.
Employer contributions to any qualified retirement or pension plan or individual retirement account and distributions from qualified retirement and pension plans and annuities.
Benefit payments under any supplemental unemployment compensation plan.
Any benefits paid under the Wyoming Worker's Compensation Act or any other worker's compensation law of another state.
Employment.- The term “employment” does not include the following:
Licensed barbers and beauticians if use of shop facilities is contingent on payment of a flat rate of compensation to shop owner and the individual performing services receives no compensation or from the shop owner.
Newspaper and shopping news carriers under 18.
Service performed by licensed real estate brokers and salespersons, for which the compensation consists of commissions resulting from sale or rental of real estate.
Railroad employees covered by Railroad Unemployment Insurance Act.
Relatives, i.e., service performed by individual in employ of son, daughter, or spouse, or by person under 21 for his or her parent or for a partnership consisting only of his or her parents.
Service by student enrolled at a nonprofit or public educational institution in full-time work study program. Exemption not applicable if service performed under program established for an employer or group of employers.
Service for a hospital by a patient of the hospital.
Service for school, college or university performed by student in regular attendance, or spouse of that student if spouse's employment is under program of assistance to the student.
Service performed by the owner and operator of a motor vehicle that is leased or contracted with driver to a for-hire common or contract carrier, if he or she performs the service pursuant to a contract that provides that he or she is not an employee for FUTA or FICA purposes.
Services performed as casual labor.
Services by a private duty nurse employed by a private party.
Services performed by a member of a limited liability company (Sec. 27-3-108).
Agricultural and domestic employers.- Service performed by certain aliens is excluded as long as it is excluded under the FUTA.
Government and nonprofit employers.- All services for the state (with the exceptions noted below) are covered, including appointed officials of political subdivisions.
Services for a tax-exempt nonprofit organization are covered if the organization had in employment four or more individuals for some portion of a day in each of 20 different weeks within either the current or preceding calendar year.
The following types of services performed for the state or a nonprofit organization are excluded:
Church or organization operated 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 federal agency, or an agency of a state or political subdivision.
Inmate of custodial or penal institution.
Elected officials.
Members of a legislative body or the judiciary.
Members of the State National Guard or Air National Guard.
Employees serving on a temporary basis in case of fire, storm, snow, earthquake, flood or similar emergency.
Individuals in major nontenured policymaking or advisory positions, or policymaking or advisory positions that ordinarily do not require more than eight hours per week.
PROCEDURES
Base period.- First four of the last five completed calendar quarters immediately preceding the first day of the benefit year or any other 12-month period specified by the Commission. A calendar quarter used in one base period of a valid claim may not be used in a subsequent base period.
Benefit year.- 52-consecutive-calendar week period beginning the first week of a claim series established by filing a valid initial claim or 53-consecutive-week period beginning the first week of a claim series if filing a new valid claim results in the overlapping of any quarter of the base period of a previously filed claim.
Weekly benefit amount.- Amount equal to 4% of wages paid in highest quarter of base period and rounded to next lower multiple of $1. The minimum weekly benefit amount is 4% of the minimum high-quarter earnings required to qualify for benefits ($30 for the year beginning 7/1/2008) and the maximum is determined as 55% of the statewide average weekly wage of all insured workers for preceding year, but not exceeding $415 beginning 7/1/2008.
Note that, under unfavorable fund conditions, the weekly benefit amount of any individual entitled to receive $90 or more is reduced to 85% of the computed figure (but not less than $90). For example, the weekly benefit amount of an individual normally entitled to $185 is $157, with the reduction.
The weekly benefit amount is reduced by earnings in excess of 50% of the weekly benefit amount, computed to next lower even dollar, in cases of partial unemployment.
Although benefits generally are not assignable, individuals may elect to have federal income taxes deducted from their benefit payments (Sec. 27-3-320). In addition, food stamp overissuances and child support obligations may be offset against an individual's benefits (Sec. 27-3-321).
Maximum total benefits.- Lesser of
26 times weekly benefit amount or
30% of base-period wages, computed to next higher multiple of weekly benefit amount.
In addition, during certain periods of high unemployment, payment of extended benefits at claimant's weekly benefit rate.
Benefit eligibility: Requirements- Claimant eligible if
able and available for work and actively seeking work;
has base period wages for insured work of at least 8% of the statewide average annual wage; and
participate in reemployment services if so required.
If the individual's base period is designated as the first four of the last five completed calendar quarters, he or she must have base period wages equal to 1.4 times his or her high-quarter earnings. To requalify for benefits in second year, individual must earn at least eight times the weekly benefit amount. Under certain conditions, the claimant who has had a continuous period of sickness or injury for which he or she was compensated under Wyoming's Worker's Compensation Law can receive unemployment benefits based on potential eligibility at the time of last employment.
Notwithstanding availability and active search for work requirement (see above) and disqualification for failure to apply for or accept suitable work (see below), no benefits can be denied claimant in approved training. Benefits may not be paid to instructors, researchers and certain administrators of an educational institution during school vacation periods or paid sabbatical leaves based on service with such institution.
A corporate officer who is unemployed, certifies unemployment, and otherwise satisfies the eligibility requirements, is eligible.
Benefits are not payable to nonprofessional employees of an educational institution for any week of unemployment beginning during the period between two successive academic years or terms if there is a contract or reasonable assurance providing that the individual will perform such services in the second year or term. Retroactive payment of benefits will be made if after being given a contract or reasonable assurance, the individual is not offered an opportunity to perform services in the second year or term.
Benefits are not payable to professional athletes for any period between sport seasons if individual performed services in the first of such seasons and there is reasonable assurance that he or she will return for the second.
Benefits are not payable to an alien unless he or she has been lawfully admitted for permanent residence, is lawfully present for the purposes of performing services, is otherwise permanently residing in the U.S. under color of law.
Disqualifications-Period.- Leaving work voluntarily without good cause attributable to his or her employment, except for bona fide medical reasons involving claimant's health, if returning to approved training or if forced to leave the most recent work as a result of being a victim of domestic violence; failure to apply for or accept suitable work; following four weeks of unemployment, failure to apply for or accept available work other than customary occupation offering at least 50% of the compensation of previous insured work in customary occupation; and following 12 weeks of unemployment, as a member of a labor organization failure to apply for or accept suitable nonunion work in customary occupation-disqualified until he or she has been employed for 12 weeks and has earned at least 12 times the weekly benefit amount.
Discharge for misconduct connected with most recent work -from effective date of valid claim or date discharge occurred and until reemployed for at least 12 weeks and has earned at least 12 times the weekly benefit amount.
Nondisclosure of receipt of disqualifying income -forfeiture of all accrued benefit rights.
Labor dispute-duration.
Receipt of severance payments, termination allowances or earned vacation pay-benefits reduced by amount of such payments.
Receipt of unemployment benefits under other state or federal law-period for which payments are made.
Self-employment for more than three days in week, or net earnings from self-employment of more than weekly benefit amount week in which such occurs, except if net earnings less than weekly benefit amount, claimant receives difference between the two.
Receipt of benefits to which not entitled-benefits so received must be repaid or deducted from benefits payable in a three-year period following the determination that repayment was required, unless received without fault by claimant.
Receipt of retirement annuities, pensions or other payments from any former employer or trust or fund contributed to by a former employer-benefits reduced by amount of such payments. Lump-sum retirement payments are not deducted if rolled over into private funds.
Receipt of retirement annuities, pension or other payments from any base period employer or trust or fund contributed to by a base period employer-benefits reduced by amount of such payments. Lump-sum retirement payments are not deducted if rolled over into private funds and not deemed income by the IRS. Payments received are reduced by 50% prior to deduction if the individual made any contribution to the retirement payment provided by base period employer.
Conviction of false statement, representation, or failure to disclose material fact-four-week disqualification for each week of violation in addition to penalty, plus a reduction in total benefits.
False statement or misrepresentation of a material fact on a claim for benefits-52-week period beginning with the week in which the false statement or misrepresentation was made or the date notice of the overpayment determination is mailed to the person who filed the claim.
WHAT THE EMPLOYER MUST DO
Standard rate.- Minimum rate is 0.54%. Maximum rate is 9.04%. Maximum rate includes the maximum adjustment factor cap of 1.5%. Delinquent employers pay 2.0% higher than the basic rate assigned, plus adjustment factors, subject to the maximum rate in effect for the year. No employee tax.
For 2009, experience-rated employers pay rates ranging from 0.30% to 9.10%. Note that any delinquent employer is assessed 2.0% plus the assignable basic rate, the total of which may not exceed 9.10% for 2009.
Experience rates.- A new employer having no established experience period will pay contributions at a rate equal to the average rate paid by its major industrial classification for the calendar year preceding the one in which it first employed workers, in addition to the applicable adjustment factors, but not less than 1.0%, plus the adjustment factors. New employers are also subject to the special reserve rate (see below) (Sec. 27-3-503).
New employers pay the following rates by industry classification for 2008: raw materials and energy production, 1.53%; goods production, 2.49%; distribution and transportation of goods, 1.53%; information, 1.53%; finance, insurance, real estate, and rental and leasing, 1.53%; professional and business services, 1.53%; education, health and social assistance, 1.53%; leisure, accommodation, and food services, 1.55%; other services (except public administration), 1.53%; public administration, 1.53%; and unclassified employers, 1.77%.
Employer's contribution rate for calendar year may be reduced below standard rate if
its account has been chargeable with benefits throughout the 36-month (a new employer with fewer than 36 months' experience may qualify with 24 months) period ending on June 30 of preceding year,
all contributions and interest due for such 36-month period are paid on or before preceding September 30, and it has paid contributions and interest due on any account it has assumed as a successor.
Benefit ratios will be computed for those employers whose accounts have been chargeable for benefits throughout the employer's experience period. An employer's benefit ratio will be the contribution rate, provided its rate is not more than 8.5% in addition to the adjustment factors and special reserve rate (see below) (Sec. 27-3-503). For each qualified employer, a benefit ratio is computed by dividing the benefits chargeable to its account by the total taxable wages payable during its experience period, excluding wages on which contributions are not paid by July 31.
Rate variations from the base rate of contributions based upon the employer's benefit ratio will be assigned to eligible employers each calendar year.
An employer who has failed to pay all contributions, interest and penalties due or who has failed to submit all quarterly reports due must pay a rate that includes a 2.0% tax increase over its base rate, plus any adjustment factors that are in effect, but not more than the maximum rate in effect for the year. This rate will continue to be assigned through and including the calendar quarter in which the employer satisfies its account delinquency.
If the employer's delinquency plus interest is less than $200, the employer has protested the delinquency rate, and the employer has paid all delinquent contributions and interest by the December 31 preceding the calendar year for which the delinquency rate has been assigned, the Commission may collect up to, credit the employer's account with, or refund the revenue collected in excess of, double the tax due plus interest in lieu of the penalty rate.
Adjustment factors.- An adjustment factor for noncharged and ineffectively charged benefits will be computed to the fourth decimal place by dividing the total noncharged and ineffectively charged benefits to all employers' experience rating accounts during the experience rating period ending June 30 by the total taxable wages payable during the experience period and added to the basic rate. As used for this determination, the total taxable wages payable do not include wages payable by employers electing to make payments in lieu of contributions.
If the fund balance on October 31 of the year immediately preceding the calendar year for which the contribution rate is computed is less than 3.5%, a positive fund balance adjustment factor will be computed. If it exceeds 4%, a negative fund balance adjustment factor will be computed. This latter adjustment factor will only be added to the contribution rate of those employers eligible for an experience rating.
The adjustment factors are separate from an employer's experience rating and will be “algebraically added” to the employer's contribution rate and payable by each employer.
Note that the adjustment factors applied to an employer's contribution rate may not be less than zero, effective 1/1/2004.
Note that any rate variation, as well as the adjustment factors, will be imposed at a rate equal to 40% of the base rate or rate variation assigned by the Department. Moreover, the base rate or any rate variation assigned will be reduced by 40% for any calendar year in which the special reserve contribution rate is imposed.
After July 1, 2007, the Department will establish an additional formula to apportion the positive fund balance adjustment factors between employers with a benefit ratio of zero and employers who have a benefit ratio of greater than zero. Employers with no established experience period will be treated the same as those whose benefit ratio is greater than zero.
SUTA dumping.- If, following a transfer of experience, the department determines that a substantial purpose of the transfer of the trade or business was to obtain a reduced liability for contributions, then the accounts of the employers involved will be combined into a single account and a single rate assigned to the account.
If a person is not an employer at the time he or she acquires the trade or business of an employer, the unemployment insurance experience of the acquired employer will not be transferred to the person if the department finds that the person acquired the trade or business of the employer solely or primarily for the purpose of obtaining a lower rate of contributions. Instead, the person will be assigned the applicable new employer rate. In determining whether the trade or business was acquired solely or primarily for the purpose of obtaining a lower rate of contributions, the department will use objective factors that may include the cost of acquiring the business, whether the person continued the business enterprise of the acquired business, how long the business enterprise was continued, or whether a substantial number of new employees were hired for performance of duties unrelated to the business activity conducted prior to acquisition.
In addition, a person who knowingly, or with deliberate ignorance or reckless disregard of the true facts or the requirements of the Employment Security Act, violates or attempts to violate any provision related to determining the assignment of a contribution rate, or who knowingly advises another to violate such provisions, will be subject to the following penalties:
A person who is an employer will be assigned, for the rate year during which the noncompliance or misrepresentation occurred and for the following three rate years, the highest rate assignable under the law. If the person’s business is already at the highest rate for any year, or if the amount of increase in the person’s rate would be less than two percent for that year, then a penalty rate of two percent of taxable wages will be imposed for that year. This penalty may exceed the maximum assignable rate. Note that a person who is not an employer will be subject to a civil penalty of not more than $50,000.00.
In addition to the penalties described above, any violation or attempted violation of any provision of the law related to determining the assignment of a contribution rate may be prosecuted as a felony punishable by a fine of not more than $50,000.00, imprisonment for not more than five years, or both.
Incremental bond payments.- Any project in Wyoming with an estimated construction cost of at least $100 million, a majority of which is planned to be completed or discontinued within a period of seven years and which will require the employment of at least 250 persons, may be liable for an additional contribution in the form of incremental bond payments. If it is determined that the project is within these criteria, the total contributions that the involved employing units will make will be estimated, based on the average estimated number of covered employees during the course of the project. Total benefits that will be required at the completion of the project will also be estimated, assuming that 50% of covered employees will claim benefits following completion or discontinuance of the project. If estimated benefits exceed estimated contributions, the Commission may assess and collect from the prime or general contractor, or, in those situations where there is no prime or general contractor, the owner for whom the project is being constructed, an additional amount equal to 0.5% times the successful bid amount awarded to each employing unit, but not exceeding 0.5% times the total amount allowed under all bids accepted under the project. This amount is in addition to any other contributions required and will be treated as an incremental bond payment to insure payment of all benefits ultimately claimed.
DEADLINES
Tax and wage.- Summary Report with Employee Wage Listings, Forms Wyo-056, Wyo-058, and Wyo-078, is due quarterly before end of 30-day period following quarter. Report of wages paid to employees must be made on same form. If due date falls on a Saturday, Sunday, or legal holiday, it is extended to next business day. Online filing is available.
ENFORCEMENT
The Wyoming Employment Security Law is administered by the Wyoming Department of Employment, Employment Resources Division.
Records.- The Commission or any authorized representative of the Commission may require the production of books, papers, or other records material to the administration of the act. The reports required are such as to enable the Commission to ascertain who is liable for contributions, to verify the correctness of amounts paid as contributions by each employer, and to compute the amount and duration of benefits to which unemployed workers are entitled.
The information on the reports thus required must be held confidential except to the extent necessary for the proper presentation of a claim, and must not be published or be open to inspection in any manner revealing the individual's or employing unit's identity. Furthermore, the Commission may disclose specified information to certain federal, state or local agencies in the interests of cooperation and effective administration.
WHO TO CONTACT
The Wyoming Employment Security Law is administered by the Wyoming Department of Employment, Employment Resources Division, Department of Employment Bldg., Center and Midwest Sts., P.O. Box 2760, Casper, Wyoming 82602. Telephone (307) 235-3200.
RECORDKEEPING
Every employing unit is required to keep work records that detail remuneration for each worker and for the unit as a whole. For the information which has been prescribed as necessary in the keeping of records.
Records established by each employing unit with respect to employment performed for it must be preserved for not less than four years after the year in which the remuneration with respect to such employment was payable.
POSTING
The law requires each employer to post printed notices containing information on benefit rights in places readily accessible to its employees. Copies of regulations and information on benefit rights will be supplied by the Department at no cost.
PENALTIES
Interest and penalties.- Contributions unpaid on the due date bear interest at the rate of 2% per month or any fractional portion thereof from and after such date until payment plus accrued interest is received by the Commission. The Commission may require any employing unit which has been habitually delinquent in making contributions, filing returns or qualifying as required by the act, to file a bond or other security with the Commission to insure future contributions required.
If an employer who has been granted a time extension fails to pay his contributions on or before the termination of such period, interest is payable from the original due date, as if no extension had been granted. The Commission has authority to reduce or cancel interest and/or contributions due from an employer who has ceased to be subject to the Act, provided it finds that certain circumstances exist which are detailed in the law. Generally, these are circumstances tending to show that the contributions and interest are uncollectible (e.g., the employer has been adjudicated to be bankrupt or insolvent and no assets remain out of which amounts due could be collected). The Commission also has authority to reduce or waive interest due on delinquent contributions if it finds that, due to unusual or extenuating circumstances, the collection of the full amount of interest and penalties would be against equity and good conscience. Despite authority to reduce or cancel interest and/or contributions, or to reduce or waive interest, as described above, unpaid contributions, interest, or penalties can be collected at a future date if, due to changed conditions, the Commission finds amounts due to be collectible, or the Commission finds that its action was influenced by false statements or omissions of material fact.
Any person who knowingly makes a false statement or misrepresentation or who knowingly fails to disclose a material fact, to avoid becoming or remaining subject to the law or to avoid or reduce any contribution or other payment required from an employing unit under the law, or who willfully fails or refuses to make any such contributions or other payment or to furnish any reports required under the law or to produce or permit the inspection of records as required thereunder, will be held guilty of a misdemeanor and punished by a fine or imprisonment, or both. Each such false statement or representation or failure or refusal constitutes a separate offense. Willful violation of any provision of the law or any rule or regulation thereunder, if no other specific penalty is prescribed, is similarly punishable. Similar penalties are prescribed for any person who makes false statements or misrepresentations to obtain or increase benefits for himself or another. All criminal actions for violation of any provision of the law, or of any rules or regulations issued pursuant thereto, are prosecuted by or under the direction of the Attorney General of the State. Past due payments in lieu of contributions are subject to the same interest and penalties as apply to past due contributions.
If, after due notice, any employer defaults in any payment of contributions or interest thereon, the amount due may be collected by civil action in the name of the Commission. An employer adjudged in default must pay the costs of the action. If an employer neglects or refuses to submit reports and pay contributions or is about to discontinue business or leave the state without making such reports and paying the contributions the Commission may make a jeopardy assessment against such employer. Such assessment is final unless the employer files a written protest within 15 days after the mailing of the notice of such assessment. In any civil action to enforce the provisions of the law the Commission and the State may be represented by any qualified attorney employed by the Commission.
Liens.- Where contributions are not paid when due the Commission may file a certificate showing that the Commission has complied with all the provisions of the law in relation to the computation and levy of contributions and interest. From the time of such filing the amount of the contributions and interest thus claimed constitute a lien upon all the real and personal property of the employer in the county. Proceedings for the foreclosure of the lien may be instituted within five years of the date of the filing of such certificate by action in the District Court and the lien continues in force pending such action and until adjudication thereof and sale thereunder.
Prior to the filing by the Commission of the certificate the delinquent employer must be given an opportunity for a hearing before the Commission, unless it appears that the delinquent employer is about to leave the state with intent to default his creditors.
Bankruptcy.- In the event of any distribution of an employer's assets pursuant to an order of any court under the laws of the state, including any receivership, assignment for the benefit of creditors, adjudicated insolvency, composition, or similar proceedings, contributions then or thereafter due must be paid in full prior to all other claims except taxes and claims for wages of not more than $250 to each claimant, earned within six months of the commencement of the proceeding. In the event of an employer's adjudication in bankruptcy, judicially confirmed extension proposal, or composition, under the Federal Bankruptcy Act, contributions then or thereafter due are entitled to such priority as is provided in Sec. 64(a) of such Act.
<p>Bankruptcy.— In the event of any distribution of an employer's assets pursuant to an order of any court under the laws of the state, including any receivership,</p>