unemplogo.jpg (50480 bytes) The Division of Unemployment Insurance serves workers who are unemployed through no fault of their own by providing temporary income maintenance during their period of unemployment and making referrals to re-employment services.

The Division also serves employers by ensuring that only those unemployed individuals meeting all eligibility criteria receive UI benefits, thereby protecting future increases in employer tax rates and the solvency of Delaware’s UI Trust Fund.

Table of Contents

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Regulation 41 Eligibility for Benefits

Regulation 42 Disqualification for Benefits

Regulation 43 Officers of Closely Held Corporations

Regulation 44 Reduction in Employer's Rate

Regulation 45 Interest

Regulation 46 Employment Training Tax

Regulation 47 Registration for Work

Regulation 48 Seasonal Employment

Regulation 49 Collection of Benefit Overpayments

Regulation 41

ELIGIBILITY FOR BENEFITS

§3314(1), Title 19, Delaware Code provides that "the Department may, by regulation, waive or alter either or both of the requirements of this subdivision... .

Accordingly, "has registered for work" as it appears in §3314(1), Title 19, Delaware Code shall mean any registration process as required by the Department's Division of Employment and Training which may include, but shall not be limited to, group intake and the General Aptitude Test Battery.

Regulation 42

DISQUALIFICATION FOR BENEFITS

§3315(3), Title 19, Delaware Code provides that an individual shall be disqualified for benefits "if he has refused to accept an offer of work which he is reasonably fitted....."

The determination of whether an individual is reasonably fitted shall be based on said individual's previous work history, education, training, the DOT (Dictionary of Occupational Titles) Code assigned by the Department's Division of Employment and Training, and the results of Validity Generalization tests administered to said individual by the Division of Employment and Training.

Regulation 43

OFFICERS OF CLOSELY HELD CORPORATIONS

Section 3302(9)(A)(i)(I)(II), Title 19, Delaware Code provides the following shall not be deemed employment:

"(I) When one half or more of the ownership interest, however designated or evidenced, in the corporation is, or during such employment was, owned or controlled, directly or indirectly, by the individual's spouse or child, or by the individual's parent if the individual is under age 18, or by a combination of 2 or more of them; or

(II) When one fourth or more of the ownership interest, however designated or evidenced, in the corporation is, or during such employment was, owned or controlled, directly or indirectly, by the individual; or"

The intent of Section 3302(9)(A)(i)(I)(II), Title 19, Delaware Code was to exclude the wages of officers of closely held corporations from unemployment insurance assessments since the work performed by such an officer was deemed not to be "covered employment" under Chapter 33, Title 19, Delaware Code. The intent of this Section was not to increase the unemployment insurance tax liability of closely held corporations.

Therefore, for the purpose of this regulation, the officer(s) of a closely held corporation may request personal coverage under Chapter 33, Title 19, Delaware Code, if the corporation agrees to such coverage and can show, to the satisfaction of the Department, that the mandatory exemption from personal coverage provided under Section 3302(9)(A)(i)(I)(II), Title 19, Delaware Code would increase the total unemployment insurance program tax liability of the corporation.

In addition, the Department recognizes, as a result of the enactment of Section 3302(9)(A)(i)(I)(II), Title 19, Delaware Code, as amended in June 1983, that an increase in the total unemployment insurance program tax liability of a particular class of closely held corporations may have been further compounded where:

(1) The officers of a closely held corporation first became subject to the provisions of Chapter 33, Title 19, Delaware Code, prior to the enactment of Section 3302(9)(A)(i)(I)(II), as amended In June 1983; and then,

(2) Upon enactment of the aforementioned Section, the corporation was deemed to have no "covered employment".

Therefore, any closely held corporation which elects coverage of their officers and employer account reactivation under this regulation, and can show, to the satisfaction of the Department, that it is a member of the above mentioned class, will be permitted to apply those experience years during which the corporation had no covered employment to the time required to receive an earned assessment rate.

A request for coverage must be agreed to by the corporation and filed in such manner as the Department shall prescribe.

This elected coverage shall be for the duration of an individual's tenure as an officer of the corporation. Coverage shall be effective as of the next calendar quarter following the receipt of the request for coverage submitted by the corporation on forms provided by the Department.

Regulation 44

REDUCTION OF EMPLOYER'S RATE BELOW THE NEW EMPLOYER RATE

Section 3349(d), Title 19, Delaware Code provides that;

"After July 1, 1986, no employer's rate shall be reduced below the new employer rate for any calendar year unless and until he has had employment in each of the 2 consecutive experience years immediately preceding the computation date,...

For the purpose of this regulation, Section 3349(d), Title 19, Delaware Code shall apply only to those employers who first become subject to Chapter 33, Title 19, Delaware Code as provided by Section 3348(d)(e)(f), Title 19. Delaware Code and such employers shall not have their employer rate reduced below the new employer rate prior to January 1, 1989.

Regulation 45

INTEREST ON PAST DUE ASSESSMENTS AND REIMBURSEMENT PAYMENTS IN LIEU OF ASSESSMENTS

Pursuant to Section 3357, Title 19, Delaware Code regarding "Interest on past due assessments and reimbursement payments in lieu of assessments":

Effective July 1, 1987, assessments and reimbursement payments in lieu of assessments which remain unpaid on the date they are due and payable, as prescribed by the Department, shall bear interest at the rate of 1.5% per month or fraction thereof from and after such date until payment plus accrued interest is received by the Department.

Regulation 46

EMPLOYMENT TRAINING TAX

Section 3401(a), Title 19, Delaware Code provides:

"In addition to all other payments to the State due under this Title, each employer liable for assessments under Chapter 33 of this Title shall also be liable for a special assessment which shall be levied at the rate of one-tenth of 1 percent on all taxable wages, as defined in Section 3302(17) of this Title, payable by each such employer".

For the purpose of this regulation, the special assessment, also referred to as the "Training Tax", shall be billed on a semi-annual basis to each employer by the Department, based on reported taxable wages or on assessed taxable wages as estimated and determined by the Department under the provisions of Section 3359 of this Title. The semi-annual bill will cover the two calendar quarters, April 1 September 30 or October 1 - March 31 respectively, whichever are the two most recently completed calendar quarters prior to each billing.

Each employer shall be billed by the Department for the special assessment amount due not later than July 31 and January 31 of each year and such amount shall be considered delinquent 30 days after the date such bill was mailed. Interest shall accrue and be collectible by this Department on all unpaid assessments as prescribed in Section 3357 of this Title and Regulation 45.

Regulation 47

REGISTRATION FOR WORK

Section 3314(l), Title 19, Delaware Code regarding "eligibility for benefits" provides that the Department may, by regulation, waive or alter the registration for work requirement.

Accordingly, the Department prescribes that the following unemployed individuals will not be required to register for work with the Department to be eligible for the receipt of benefits:

(1) Any individual on a temporary layoff who has a definite "return-to-work" date which has been verified by the Department with the individual's separating employer.

(2) Any individual who is an active member of a trade union and who is actively seeking work through a union hiring hall as verified by the Department.

(3) Any individual who is attached to a specific job as evidenced by a pattern of seasonal/periodic layoff and subsequent rehiring by the same employer over the most recent three (3) year period.

Regulation 48

SEASONAL EMPLOYMENT

Section 3316(b), Title 19, Delaware Code provides that;

"No occupation or industry shall be deemed to provide seasonal employment that is not part of the first processing of agricultural products and/or seafood products".

For the purposes of this regulation, the first processing of agricultural products and/or seafood products shall refer to those occupations and industries in the following Standard Industrial Classification (SIC) Codes (carried to four digits):

SIC Code Major Occupation/IndustryGroup

0111 Agricultural Production - Crops

0112 Agricultural Production - Crops

0115 Agricultural Production - Crops

0116 Agricultural Production - Crops

0119 Agricultural Production - Crops

0131 Agricultural Production - Crops

0132 Agricultural Production - Crops

0133 Agricultural Production - Crops

0134 Agricultural Production - Crops

0139 Agricultural Production - Crops

0161 Agricultural Production - Crops

0171 Agricultural Production - Crops

0172 Agricultural Production - Crops

0173 Agricultural Production - Crops

0174 Agricultural Production - Crops

0175 Agricultural Production - Crops

0179 Agricultural Production - Crops

0182 Agricultural Production - Crops

0191 Agricultural Production - Crops

0722 Agricultural Services

0723 Agricultural Services

0724 Agricultural Services

0729 Agricultural Services

0761 Agricultural Services

0762 Agricultural Services

2032 Food and Kindred Products

2033 Food and Kindred Products

2034 Food and Kindred Products

2035 Food and Kindred Products

2037 Food and Kindred Products

2091 Food and Kindred Products

2092 Food and Kindred Products

Regulation 49

COLLECTION OF BENEFIT OVERPAYMENTS

Section 3325, Title 19, Delaware Code, as amended effective February 8, 1989, provides:

"No action shall be taken by the Department to collect in whole or in part an overpayment of benefits to any person after a period of 5 years from the date on which the overpayment was made by the Department".

With regard to the above cited provision of Section 3325, Title 19, Delaware Code, "the date on which the overpayment was made by the Department" shall be defined as the date on which the overpayment is established. For the purpose of this regulation, an overpayment shall be considered to be established with respect to any particular claim for benefits as of the date the Department's notice of overpayment and order for recoupment has become final.