Download as PDF
341.530 Employer reserve accounts -- Reimbursing employer accounts -Relief for improper benefit payments -- Charging of benefits -- Voluntary
payments -- Payments of benefits related to state of emergency or
disaster declaration. (Effective January 1, 2023)
(1)
(2)
(3)
(4)
The Office of Unemployment Insurance 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 or her 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 or her employ prior claims or rights to the amounts paid by him or
her 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 or her 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. Shared work benefits paid to an eligible
worker in accordance with KRS 341.4161 to 341.4173 shall be charged against
the reserve account or reimbursing employer account of the shared work
employer.
(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 or
her most recent work for such employer, voluntarily left his or her 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
(5)
(6)
(7)
(8)
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
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 or she has ceased to be
subject to this chapter, and his or her 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 or she 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
(9)
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.
Notwithstanding any other provisions of this chapter, any benefits paid to an
eligible worker for reasons related to a state or federal state of emergency or
disaster declaration shall be paid from the pooled account provided in KRS
341.550 and not from the reserve account of the employer of that individual.
The reserve account shall not be charged for benefits related to a state of
emergency or disaster declaration. Payments shall be accounted for separately
to allow the secretary to seek reimbursement from the federal government.
Effective:January 1, 2023
History: Amended 2022 Ky. Acts ch. 21, sec. 19, effective January 1, 2023; and
ch. 236, sec. 148, effective July 1, 2022. -- Amended 2021 Ky. Acts ch. 177,
sec. 4, effective April 1, 2021. -- Amended 2019 Ky. Acts ch. 146, sec. 67,
effective June 27, 2019. -- 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.
Legislative Research Commission Note (1/1/2023). This statute was amended by
2022 Ky. Acts chs. 21 and 236, which do not appear to be in conflict and have
been codified together.
Legislative Research Commission Note (1/1/2023). 2022 Ky. Acts ch. 21, sec. 26,
provides that the Act, which amended this statute, may be cited as the
Unemployment Insurance Sustainability Act of 2022.
Legislative Research Commission Note (4/1/2021). 2021 Ky. Acts ch. 177, sec. 7
provides that the amendments made to this statute in that Act are retroactive to
March 6, 2020.
Disclaimer: These codes may not be the most recent version. Kentucky may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.