2014 Kentucky Revised Statutes
CHAPTER 341 - UNEMPLOYMENT COMPENSATION
341.050 Covered employment.
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<![CDATA[341.050 Covered employment.
(1)
As used in this chapter, unless the context clearly requires otherwise and
subject to the provisions of KRS 341.055, "covered employment" means
service, including service in interstate commerce, performed by:
(a) An individual who, under the usual common law rules applicable in
determining the employer-employee relationship, has the status of an
employee;
(b) An officer of a corporation;
(c) An individual who performs service for remuneration for any employing
unit:
1.
As an agent-driver or commission-driver engaged in distributing
meat products, vegetable products, fruit products, bakery products,
beverages (other than milk), or laundry or dry-cleaning services, for
his principal; or
2.
As a traveling or city salesman, other than as an agent-driver or
commission-driver, engaged upon a full-time basis in the solicitation
on behalf of, and the transmission to, his principal (except for
side-line sales activities on behalf of some other person) of orders
from wholesalers, retailers, contractors, or operators of hotels,
restaurants, or other similar establishments for merchandise for
resale or supplies for use in their business operations; provided, that
for purposes of this paragraph, the term "covered employment" shall
include services described in subparagraphs 1. and 2. above only if
the contract of service contemplates that substantially all of the
services are to be performed personally by such individual; such
individual does not have a substantial investment in facilities used in
connection with the performance of the services (other than in
facilities for transportation); and the services are not in the nature of
a single transaction that is not part of a continuing relationship with
the person for whom the services are performed;
(d) Except as provided in KRS 341.055(4), an individual in the employ of this
state or any of its instrumentalities or any political subdivision or
municipality thereof or any of its instrumentalities or any instrumentality of
more than one (1) of the foregoing or any instrumentality of any of the
foregoing and one (1) or more other states or political subdivisions or
municipalities, provided that such service is excluded from "employment"
as defined in the Internal Revenue Code solely by reason of Section
3306(c)(7) of the code but only when such service is required to be
"covered employment" under this chapter by reason of Section 3309 of
the Internal Revenue Code, as amended, as a requirement of Section
3304 of that code, as amended, for approval of the state's unemployment
insurance law; or
(e) An individual in the employ of a religious, charitable, educational or other
organization but only if the following conditions are met:
1.
The service is excluded from "employment" as defined in the
Internal Revenue Code solely by reason of Section 3306(c)(8) of
(2)
that code but only when such service is required to be "covered
employment" under this chapter by reason of Section 3309 of the
Internal Revenue Code, as amended, as a requirement of Section
3304 of that code, as amended, for approval of the state's
unemployment insurance law; and
2.
The organization had four (4) or more individuals in employment for
some portion of a day in each of twenty (20) different weeks,
whether or not such weeks were consecutive, within either the
current or preceding calendar year, regardless of whether they were
employed at the same moment of time; or
(f) An individual in the employ of an employing unit performing agricultural
service, as defined in Section 3306(k) of the Internal Revenue Code, if
either of the following conditions are met:
1.
The employing unit paid wages of twenty thousand dollars ($20,000)
or more in a calendar quarter in either the current or preceding
calendar year for service performed in agricultural labor; or
2.
The employing unit employed for some portion of a day in each of
twenty (20) different calendar weeks, whether or not such weeks are
consecutive, ten (10) or more workers (irrespective of whether the
same workers were in employment in each of such weeks)
performing service in agricultural labor; or
(g) An individual in the employ of an employing unit performing domestic
service in a private home, a local college club, or a local chapter of a
college fraternity or sorority if the employing unit paid wages of one
thousand dollars ($1,000) or more in a calendar quarter in either the
current or preceding calendar year for service performed in domestic
employment; or
(h) An individual's service described in paragraphs (e) or (f) or (g) of this
subsection, has not ceased to be covered employment under paragraph
(c) of subsection (3) of KRS 341.250.
The term "covered employment" shall include:
(a) An individual's entire service, performed within, or both within and
without, this state if the service is localized in this state. Service shall be
deemed to be localized within a state if:
1.
The service is performed entirely within such state; or
2.
The service is performed both within and without such state but the
service performed without such state is incidental to the individual's
service within the state; for example, is temporary or transitory in
nature or consists of isolated transactions.
(b) An individual's entire service, wherever performed within the United
States, the Virgin Islands or Canada, if:
1.
Such service is not covered under the unemployment compensation
law of any other state, the Virgin Islands or Canada; and
2.
The place from which the service is directed or controlled is in this
state.
(c)
(3)
The service of an individual who is a citizen of the United States,
performed outside the United States (except in Canada), in the employ of
an American employer (other than service which is deemed "covered
employment" under the provisions of paragraphs (a) or (b) of this
subsection or the parallel provisions of another state's law), if:
1.
The employer's principal place of business in the United States is
located in this state; or
2.
The employer has no place of business in the United States, but
a.
The employer is an individual who is a resident of this state; or
b.
The employer is a corporation which is organized under the
laws of this state; or
c.
The employer is a partnership or a trust and the number of the
partners or trustees who are residents of this state is greater
than the number who are residents of any one (1) other state;
or
3.
None of the criteria of subparagraphs 1. and 2. of this paragraph is
met but the employer has elected coverage in this state or, the
employer having failed to elect coverage in any state, the individual
has filed a claim for benefits, based on such service, under the law
of this state.
4.
An "American employer," for purposes of this paragraph, means:
a.
An individual who is a resident of the United States; or
b.
A partnership if two-thirds (2/3) or more of the partners are
residents of the United States; or
c.
A trust, if all of the trustees are residents of the United States;
or
d.
A corporation organized under the laws of the United States or
of any state.
5.
The term "United States," for the purposes of this subsection,
includes the states, the District of Columbia, the Commonwealth of
Puerto Rico, and the Virgin Islands.
(d) Service performed by an officer or member of the crew of an American
vessel or American aircraft on or in connection with such vessel or such
aircraft, if the operating office, from which the operations of such vessel
operating on navigable waters within, or the operation of such aircraft
within or the operations of such vessel or such aircraft, within or without,
the United States are ordinarily and regularly supervised, managed,
directed and controlled is within this state.
Notwithstanding any other provisions of this section or any of the provisions of
KRS 341.055, the term "covered employment" shall also include service with
respect to which a tax is required to be paid under any federal law imposing a
tax against which credit may be taken for contributions required to be paid into
a state unemployment fund or which as a condition for full tax credit against the
tax imposed by the Federal Unemployment Tax Act is required to be covered
under this chapter.
(4)
For the purpose of this chapter, if the services performed during one-half (1/2)
or more of any pay period by an individual for the employing unit employing
him constitutes covered employment, all the services of such individual for
such period shall be deemed to be covered employment; but if the services
performed during more than one-half (1/2) of any such pay period by an
individual for the employing unit employing him do not constitute covered
employment, then none of the services of such individual for such period shall
be deemed to be covered employment. As used in this subsection, the term
"pay period" means a period (of not more than thirty-one (31) consecutive
days) for which a payment for service is ordinarily made to the individual by the
employing unit employing him. This subsection shall not be applicable with
respect to services performed in a pay period by an individual for the
employing unit employing him, when any of such service is excluded because it
is subject to an unemployment insurance program established by an Act of
Congress.
Effective:July 1, 1978
History: Amended 1978 Ky. Acts ch. 389, sec. 4, effective July 1, 1978. -Amended 1972 Ky. Acts ch. 21, sec. 2. -- Amended 1962 Ky. Acts ch. 207,
sec. 1. -- Amended 1958 Ky. Acts ch. 4, sec. 3. -- Amended 1950 Ky. Acts
ch. 206, sec. 1. -- Amended 1948 Ky. Acts ch. 216, sec. 1. -- Recodified 1942
Ky. Acts ch. 208, sec. 1, effective October 1, 1942, from Ky. Stat. sec. 4748g-3.
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