Vermont has amended its Unemployment Compensation Law as follows:
Taxable wage base changes. The taxable wage base will increase to $13,000 for 2011 and to $16,000 for 2012. After January 1, 2012, whenever the unemployment compensation fund has a positive balance and all advances made to the state unemployment compensation fund pursuant to Title XII of the Social Security Act have been repaid as of June 1, the base of contribution amount will be adjusted on January 1 of the following year by the same percentage as any increase in the state annual average wage. When the rate schedule is reduced to Schedule III, the base of contribution amount will be reduced by $2,000 on January 1 of the following year and then will be adjusted annually on January 1 of the following year by the same percentage as any increase in the state annual average wage. When the rate schedule is reduced to Schedule I, the base of contribution amount will be reduced by $2,000 on January 1 of the following year and then will be adjusted annually on January 1 of the following year by the same percentage as any increase in the state annual average wage.
Penalties. The penalty for failing to report unemployment and separation information with respect to a claimant, for failing to file any required report and for failing to file a contribution report has increased from $35 to $100.
Misclassification of employees. The Department will create and maintain an online employee misclassification reporting system. The system will be designed to allow individuals to report suspected cases of employee misclassification, failure to have appropriate insurance coverage, and claimant fraud to the Department to ensure that this information is distributed to appropriate departments and agencies. The name of the complainant will be kept confidential.
Note that failing to properly classify an individual regarding the status of employment is subject to a penalty of not more than $5,000 for each improperly classified employee. In addition, an employer found to have violated this requirement is prohibited from contracting, directly or indirectly, with the state or any of its subdivisions for up to three years following the date the employer was found to have failed to properly classify its employees.
Weekly benefit amounts. Effective July 1, 2011, when the state unemployment compensation fund has a positive balance and all advances made to the state unemployment compensation fund pursuant to Title XII of the Social Security Act have been repaid as of December 31 of the last completed calendar year, on the first day of the first calendar week of July, the maximum weekly benefit amount will be adjusted by a percentage equal to the percentage change during the preceding calendar year in the state average weekly wage. When the rate schedule is at Schedule III, the maximum weekly benefit amount will be adjusted on the first day of the first calendar week in July to an amount equal to 57% of the state annual average weekly wage. Note that the maximum weekly benefit amount will not increase in any year that advances made to the state unemployment compensation fund pursuant to Title XII of the Social Security Act remain unpaid.
Disclosure to successor employer. At any time prior to the issuance of the certificate required by employers who sell 50% or more of their assets in bulk, an employing unit must, upon request of a potential successor, disclose to the potential successor its current experience rating record.
Income tax withholding. An individual who elects to have federal income tax deducted and withheld from his or her benefits will have state income tax withheld at 24% of the federal rate.
Misconduct. An individual shall be disqualified for benefits for not more than 15 weeks nor less than six weeks immediately following the filing of a claim for benefits (in addition to the waiting period), if the commissioner finds that the individual: (1) Has been discharged by his or her last employing unit for misconduct connected with work; or (2) was separated from his or her last employing unit because he or she became unable to perform all or an essential part of the normal duties in the employment without good cause attributable to the employing unit because of the consequences which flow from conviction of a felony or misdemeanor or from an action or order of a judge or court in any criminal or civil matter.
Gross misconduct. Effective July 1, 2011, base period wages will not include any wages paid by an employing unit based on a separation for gross misconduct. "Gross misconduct" means conduct directly related to the employee's work performance that demonstrates a flagrant, wanton, and intentional disregard of the employer's business interest, and that has direct and significant impact upon the employer's business interest, including but not limited to theft, fraud, intoxication, intentional serious damage to property, intentional infliction of personal injury, any conduct that constitutes a felony, or repeated incidents after written warning of either unprovoked insubordination or public use of profanity.
Wages for partial employment. Effective July 1, 2012, "wages" in any one week includes only that amount of remuneration to the nearest dollar that is in excess of 30% of an individual's weekly wage amount, or $40.00, whichever amount is greater.
Computation of benefits. Effective July 1, 2011, the maximum total amount of benefits payable to any eligible individual during any benefit year may not exceed the lesser of 26 times his or her weekly benefit amount or 46% of the total wages paid to the individual during his or her base period.
Note that an individual who is discharged by his or her last employing unit for misconduct connected with work is limited to a maximum amount during the benefit year that is the lesser of the maximum amount determined above or 23 times the weekly benefit amount, provided that the individual has not already received more than 23 weeks in his or her benefit year.
Reemployment services. The Commissioner may now require that a claimant participate in reemployment services as a condition of receiving benefits.
Waiting week. Effective from July 1, 2012, through July 1, 2012, or when the balance of the unemployment compensation fund has a positive balance, whichever is later, prior to any week for which an individual claims benefits, he or she must have been totally or partially unemployed for a waiting period of one week during the benefit year and any extended eligibility period. However, no week will be counted as a week of total or partial unemployment if benefits have been paid with respect to that week; unless the individual is eligible for benefits with respect to that week; and unless it occurs after benefits first become payable to any individual under the Law.
In addition, the Commissioner must report to the house committees on commerce and economic development and on ways and means and the senate committees on economic development, housing and general affairs and on finance on the implementation of the one-week waiting period. The report will include an analysis of the relationship between the one-week waiting period and the rate at which claimants return to work. It must be made no later than January 15, 2015.
Severance pay. Effective July 1, 2011, an individual is disqualified from receiving benefits if he or she has received remuneration in the form of severance pay.
Short-time compensation benefits. Effective July 1, 2012, an individual must now serve a one-week waiting period before he or she receives short-time compensation benefits.
Update of system. The Commissioner will modify all systems by which unemployment insurance recipients update their employment or eligibility status by Internet or, where applicable, personal interview so the claimant, when required to show proof that he or she is seeking to reenter the workforce, must provide the name and phone number of the employers that the unemployment insurance recipient contacted.