La. Admin. Code tit. 40 § IV-385

Current through Register Vol. 50, No. 8, August 20, 2024

Section IV-385 - Invocation of the Statutory Savings Clause under R.S. 23:1664 to Delay Implementation of Act No. 297 of the 2021 Regular Legislative Session

A. Pursuant to the Fresh Start Proper Worker Classification Initiative and the Louisiana Voluntary Disclosure program under Act No. 297 (the enacted version of SB 244), employer liability for SUTA dumping penalties and fraud penalties is waived under the safe harbor provision. However, employer liability for SUTA dumping penalties and fraud penalties must not be waived under 26 U.S.C. § 3304 of the Federal Unemployment Tax Act (FUTA) and under 42 U.S.C. § 503, the State Unemployment Tax Act (SUTA) Dumping Prevention Act. The enactment of Act No. 297 would also require the Louisiana Workforce Commission to waive employer liability for back UI taxes. Waiving employer liability for back UI taxes is not permissible under federal unemployment compensation (UC) law and regulations. Pertinent provisions of Act No. 297 are not in conformity with federal law and regulations. The LWC only seeks to delay the provisions that are inconsistent with Federal UI law, namely R.S. 23:1772(C), 23:1774(A)(4), and any other related provision that requires the LWC to waive UI taxes owed. The LWC does not seek to delay enactment of the portion of Act No. 297 that pertains to employee misclassification. Pursuant to La. R.S. 23:1664, which addresses federal-state cooperation and compliance in the administration of Louisiana's UC program and requires that the administrator take such actions as may be necessary to meet the requirements of FUTA as interpreted by the U.S. Department of Labor, the Louisiana Workforce Commission seeks to invoke the savings clause under La. R.S. 23:1664 and delay implementation of Act No. 297 until amended during the 2022 Regular Legislative Session. A delay in promulgating this Rule would have an adverse impact on the LWC's eligibility for federal funding because Act No. 297 is not in conformity with federal UC law.

La. Admin. Code tit. 40, § IV-385

Promulgated by the Louisiana Workforce Commission, Office of Unemployment Insurance Administration, LR 471272, Repromulgated by the Louisiana Workforce Commission, Office of Unemployment Insurance Administration, LR 48991

AUTHORITY NOTE: Promulgated in accordance with Act No. 297, R.S. 23:1664, R.S. 36:310, 26 U.S.C. § 3304 and 42 U.S.C. §503