Ariz. Admin. Code § 6-3-1406

Current through Register Vol. 30, No. 25, June 21, 2024

Section R6-3-1406 - Employer Elections to Cover Multi-state Workers

A. Scope and definitions.

1. This rule governs the Department in its administrative cooperation with other states participating in the Interstate Reciprocal Coverage Arrangement ("the Arrangement").

2. In this rule:

a. "Agency" means a person or entity lawfully authorized to administer the unemployment compensation law of a state participating in the Arrangement.

b. "Services customarily performed" means services performed by an individual in more than 1 state, if the nature of the services gives reasonable assurance that they will continue to be performed in more than 1 state or if such services are required or expected to be performed in more than 1 state under the election.

B. Submission and approval of coverage elections under the Interstate Reciprocal Coverage Arrangement.

1. Any employing unit may file an election to cover under the law of a single participating state all of the services performed for the employing unit by any individual who customarily works for the employing unit in more than 1 participating state. Such an election may be filed, with respect to an individual, with any participating state in which:

a. Any part of the individual's services are performed,

b. The individual has residence, or

c. The employing unit maintains a place of business to which the individual's services bear a reasonable relation.

2. The agency of the elected state (thus selected and determined) shall initially approve or disapprove the election. If such agency approves the election, the agency shall forward a copy thereof to the agency of each other participating state specified thereon, under whose unemployment compensation law the individual or individuals in question, in the absence of such election, might be covered. Each such interested agency shall approve or disapprove the election as promptly as practicable and shall notify the agency of the elected state accordingly. If its law so requires, any such interested agency, before taking such action, may require from the electing employing unit satisfactory evidence that the affected employees have been notified of, and have acquiesced in, the election.

3. If the agency of the elected state, or the agency of any interested state, disapproves the election, the disapproving agency shall notify the elected state, and the electing employing unit of its action and of its reasons therefor.

4. Such an election shall take effect as to the elected state only if approved by its agency and by 1 or more interested agencies. An election thus approved shall take effect, as to any interested agency, only if it is approved by such agency.

5. If an election is approved only in part, or is disapproved by some of such agencies, the electing employing unit may withdraw its election within 10 days after being notified of such action.

C. Effective period of elections

1. Commencement

a. An election duly approved under this rule shall become effective at the beginning of the calendar quarter in which the election was submitted, unless the election, as approved, specifies the beginning of a different calendar quarter.

b. If the electing unit requests an earlier effective date than the beginning of the calendar quarter in which the election is submitted, such earlier date may be approved solely as to those interested states in which the employer had no liability to pay contributions for the earlier period in question.

2. Termination

a. The application to any individual under this rule shall terminate, if the agency of the elected state finds that the nature of the services customarily performed by the individual for the electing unit has changed so that they are no longer customarily performed in more than 1 participating state. Such termination shall be effective as of the close of the calendar quarter in which notice of such finding is mailed to all parties affected.

b. Except as provided in subsection (C)(2)(a), each election approved hereunder shall remain in effect through the close of the calendar year in which it is submitted, and thereafter until the close of the calendar quarter in which the electing unit gives written notice of the termination to all affected agencies.

c. Whenever an election under this rule ceases to apply to any individual, under subsections (C)(2)(a) or (b), the electing unit shall notify the affected individual accordingly.

D. Reports and notices by the electing unit

1. The electing unit shall promptly notify each individual affected by its approved election, on the form supplied by the elected state, and shall furnish the elected agency a copy of such notice.

2. Whenever an individual covered by election under this rule is separated from employment, the electing unit shall again notify the individual, forthwith, as to the state under whose unemployment compensation law the individual's services have been covered. If, at the time of termination, the individual is not located in the elected state, the electing unit shall notify the individual as to the procedure for filing interstate benefit claims.

3. The electing unit shall immediately report to the elected state any change which occurs in the conditions of employment pertinent to its election, such as cases when an individual's services for the employer cease to be customarily performed in more than one participating state or when a change in the work assigned to an individual requires the individual to perform services in a new participating state.

E. Approval of reciprocal coverage elections. The Department shall approve or disapprove reciprocal coverage elections in accordance with this rule.

Ariz. Admin. Code § R6-3-1406

Renumbered from R6-3-1401 and amended effective December 20, 1995 (Supp. 95-4).