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341.530 Employer reserve accounts -- Reimbursing employer accounts -Relief for improper benefit payments -- Charging of benefits -- Voluntary
payments.
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(2)
(3)
(4)
The Office of Employment and Training, Department of Workforce Investment,
shall maintain a reserve account for each subject employer making
contributions to the fund and a reimbursing employer account for each subject
employer making payment in lieu of contributions, and shall, except as
provided in KRS 341.590, credit to such account the total amount of all
contributions or benefit reimbursement paid by the employer on his own behalf.
Nothing in this section or elsewhere in this chapter shall be construed to grant
any employer or individual who is or was in his employ prior claims or rights to
the amounts paid by him into the fund.
Except as provided in subsection (3) of this section, all regular benefits paid to
an eligible worker in accordance with KRS 341.380 plus the extended benefits
paid in accordance with KRS 341.700 to 341.740, subject to the provisions of
paragraphs (a) and (b) of this subsection, shall be charged against the reserve
account or reimbursing employer account of his most recent employer. No
employer shall be deemed to be the most recent employer unless the eligible
worker to whom benefits are payable shall have worked for such employer in
each of ten (10) weeks whether or not consecutive back to the beginning of the
worker's base period.
(a) Subject employers, which are not governmental entities as defined in
KRS 341.069, shall be charged one-half (1/2) of the extended benefits
paid in accordance with KRS 341.700 to 341.740; and
(b) Subject employers which are governmental entities, as defined in KRS
341.069, shall be charged for all extended benefits paid in accordance
with KRS 341.700 to 341.740 for compensable weeks occurring on or
after January 1, 1979, and for one-half (1/2) of the extended benefits paid
for compensable weeks occurring prior to such date.
Notwithstanding the provisions of subsection (2) of this section, benefits paid to
an eligible worker and chargeable to a contributing employer's reserve account
under such subsection shall be charged against the pooled account if such
worker was discharged by such employer for misconduct connected with his
most recent work for such employer, voluntarily left his most recent work with
such employer without good cause attributable to the employment, or the
employer has continued to provide part-time employment and wages, without
interruption, to the same extent that was provided from the date of hire, and the
employer within a reasonable time, as prescribed by regulation of the
secretary, notifies the office, in writing, of the alleged voluntary quitting,
discharge for misconduct or continuing part-time employment; provided,
however, that no employer making payments to the fund in lieu of contributions
shall be relieved of charges by reason of this subsection.
Notwithstanding the provisions of subsection (3) of this section, no contributing
employer's reserve account shall be relieved of any charges for benefits
relating to an improper benefit payment to a worker established after October
21, 2013, if:
(a) The improper benefit payment was made because the employer, or an
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agent of the employer, was at fault for failing to respond timely or
adequately to the request of the secretary for information relating to a
claim for benefits; and
(b) The employer, or an agent of the employer, has a pattern of failing to
respond timely or adequately to requests under paragraph (a) of this
subsection. For purposes of this paragraph, a "pattern of failing" means at
least six (6) failures occur in a calendar year or the failure to respond to
two percent (2%) of such requests in a calendar year, whichever is
greater.
Any determination under subsection (4) of this section shall be transmitted to
the last known physical or electronic address provided by the employer and
may be appealed in accordance with the provisions of KRS 341.420(2).
Each subject employer's reserve account or reimbursing account shall, unless
terminated as of the computation date (as defined in subsection (5) of KRS
341.270), be charged with all benefits paid to eligible workers which are
chargeable to such reserve account or reimbursing account under subsection
(2) of this section. A subject employer's reserve account or reimbursing
account shall be deemed to be terminated if he has ceased to be subject to this
chapter, and his account has been closed and any balance remaining therein
has been transferred to the fund's pooled account or to a successor's account
as provided in KRS 341.540 or has been refunded if the employer is a
reimbursing employer.
Notwithstanding subsection (1) of this section, two (2) or more nonprofit
(Internal Revenue Code sec. 501(c)(3) organizations may jointly request the
secretary to establish a group reserve account or reimbursing account for such
nonprofit organizations. Two (2) or more governmental entities may jointly
request the secretary to establish a group reserve account or reimbursing
account, and once established, such account shall remain in effect at least two
(2) calendar years and thereafter until either dissolved at the discretion of the
secretary or upon filing application for dissolution by the group members. Each
member of a group shall be jointly and severally liable for all payments due
under this chapter from each or all of such group members. The secretary shall
prescribe such procedures as he deems necessary for the establishment,
maintenance, and dissolution of a group reserve account or reimbursing
account.
Any subject contributing employer may at any time on or before December 31,
2011, make voluntary payments to the fund, additional to the contributions
required under KRS 341.260 and 341.270. Effective January 1, 2012, any
subject contributing employer with a negative reserve account balance may
make voluntary payments to the fund every other calendar year, in addition to
the contributions required under KRS 341.260 and 341.270. Notwithstanding
any other provision of this chapter, contributions paid on or before the
computation date and voluntary payments made within twenty (20) days
following the mailing of notices of new rates shall be credited to an employer's
reserve account as of the computation date, provided no voluntary payments
shall be used in computing an employer's rate unless the payment is made
prior to the expiration of one hundred and twenty (120) days after the beginning
of the year for which the rate is effective. Voluntary payments by any employer
shall not exceed any negative balance they may have in their reserve account
as of the computation date. Any employer who is delinquent in the payment of
contributions, penalties, or interest as of the computation date shall be entitled
to make voluntary payments only after the amount of the delinquency is paid in
full.
Effective:June 25, 2013
History: Amended 2013 Ky. Acts ch. 45, sec. 2, effective June 25, 2013. -Amended 2010 (1st Extra. Sess.) Ky. Acts ch. 5, sec. 10, effective August 28,
2010. -- Amended 2006 Ky. Acts ch. 211, sec. 154, effective July 12, 2006. -Amended 1998 Ky. Acts ch. 167, sec. 9, effective July 15, 1998. -- Amended
1996 Ky. Acts ch. 266, sec. 18, effective July 15, 1996. -- Amended 1992 Ky.
Acts ch. 38, sec. 1, effective July 14, 1992. -- Amended 1984 Ky. Acts ch. 1,
sec. 3, effective July 13, 1984; and ch. 326, sec. 6, effective July 13, 1984. -Amended 1982 Ky. Acts ch. 261, sec. 7, effective July 15, 1982. -- Amended
1978 Ky. Acts ch. 389, sec. 29, effective July 1, 1978. --Amended 1974 Ky. Acts
ch. 74, Art. VI, sec. 107(23), (31). -- Amended 1972 Ky. Acts ch. 21, sec. 31. -Amended 1964 Ky. Acts ch. 168, sec. 4. -- Amended 1958 Ky. Acts ch. 4,
sec. 12. -- Amended 1950 Ky. Acts ch. 206, sec. 1. -- Amended 1948 Ky. Acts
ch. 216, sec. 21. -- Amended 1944 Ky. Acts ch. 37, sec. 2. -- Amended 1942 Ky.
Acts ch. 19, secs. 8 and 17. -- Recodified 1942 Ky. Acts ch. 208, sec. 1,
effective October 1, 1942, from Ky. Stat. sec. 4748g-15.
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