NORTH CAROLINA GENERAL ASSEMBLY
1965 SESSION
CHAPTER 795
SENATE BILL 265
AN ACT TO AMEND CHAPTER 96, GENERAL STATUTES OF NORTH CAROLINA, AS AMENDED, KNOWN AS THE EMPLOYMENT SECURITY LAW, TO PROVIDE FOR TERMINATION IN CASES OF VOLUNTARY COVERAGE; TO MODIFY CONDITIONS OF REFUNDS IN RESPECT TO OUT-OF-STATE EMPLOYMENT; TO AUTHORIZE HEARINGS ON PROTESTED INITIAL DETERMINATIONS; TO PROVIDE FOR INCREASE IN RATES FOR OVERDRAWN ACCOUNTS; TO MODIFY THE CREDITING OF CONTRIBUTIONS TO THE EMPLOYER ACCOUNT; TO CHANGE ELIGIBILITY REQUIREMENTS OF CLAIMANTS AND TO MODIFY THE BENEFIT TABLE; TO LIMIT LIABILITY IN CASES OF SUCCESSORSHIP; TO WITHHOLD BENEFITS PENDING APPEALS TO THE SUPREME COURT; TO CHANGE THE BEGINNING DATE OF PENALTIES FOR CLAIMANTS; AND TO FURTHER CLARIFY CERTAIN PROVISIONS OF SAID CHAPTER.
The General Assembly of North Carolina do enact:
Section 1. That Article 1, Chapter 96, Section 96-3(c), General Statutes of North Carolina as such appears in the 1965 Replacement Volume 2C thereof, be and the same is hereby amended by striking out in line six thereof the words and figures "ten dollars ($10.00) per day" and inserting in lieu thereof the following:
"the same amount per diem for their services as is provided for the members of other State boards, commissions, and committees who receive compensation for their services as such,".
Sec. 2. That Article 2, Chapter 96, Section 96-8(5)c, General Statutes of North Carolina as such appears in the 1965 Replacement Volume 2C thereof, be and the same is hereby amended by striking out the period following the word "subdivision" in the last line of said paragraph c and adding thereto the following:
", provided the acquiring employing unit is owned, or controlled (by legally enforceable means or otherwise), directly or indirectly, by the same interests which own, or control (by legally enforceable means or otherwise), directly or indirectly, the employing unit from which the organization, trade, or business, or substantially all the assets were acquired."
Sec. 3. That Article 2, Chapter 96, Section 96-8(5)i, General Statutes of North Carolina as such appears in the 1965 Replacement Volume 2C thereof, be and the same is hereby amended by striking out the period at the end of said paragraph i and adding thereto the following:
", provided the acquiring employing unit is owned, or controlled (by legally enforceable means or otherwise), directly or indirectly, by the same interests which own, or control (by legally enforceable means or otherwise), directly or indirectly, the employing unit from which such part of the organization, trade, or business was acquired."
Sec. 4. That Article 2, Chapter 96, Section 96-8(10)a, b, c, and d, General Statutes of North Carolina as such appear in the 1965 Replacement Volume 2C thereof, are hereby stricken out and the following is inserted in lieu thereof:
"(10) 'Total and partial unemployment.'
"a. An individual shall be deemed 'totally unemployed' in any week with respect to which no wages are payable to him and during which he performs no services.
"b. An individual shall be deemed 'partially unemployed' in any week in which he worked, but because of lack of work he worked less than three customary scheduled full-time days of the industry, plant, or establishment in which he is employed, and with respect to which the wages payable to him rounded to the next highest dollar are less than his weekly benefit amount plus an amount equal to one-half of such weekly benefit amount.
"c. An individual shall be deemed 'part totally unemployed' in any week in which his earnings from odd jobs or subsidiary work are less than his weekly benefit amount plus an amount equal to one-half of his weekly benefit amount.
"d. No individual shall be considered unemployed for any period with respect to which he is receiving, has received, or will receive, as a result of his separation from employment, remuneration in the form of (i) wages in lieu of notice, (ii) accrued vacation pay, (iii) terminal leave pay, (iv) severance pay, (v) separation pay, (vi) accumulated sick leave payments, or (vii) any other type of dismissal payments or wages by whatever name.
"e. An individual's week of unemployment shall be deemed to commence only after his registration at an employment office, except as the Commission may by regulation otherwise prescribe."
Sec. 5. That Article 2, Chapter 96, Section 96-8(17)a and b, General Statutes of North Carolina as such appear in the 1965 Replacement Volume 2C thereof, be and the same are hereby amended by rewriting said provisions to read as follows:
"(17)a. 'Benefit year' and 'valid claim,' prior to July 1, 1961, with respect to any individual, means 'benefit year' and 'valid claim' as heretofore defined by the provisions of this Chapter prior to such July 1, 1961. As to claims filed on or after July 1, 1961, and before July 1, 1965, by individuals who do not have benefit years in progress, 'benefit year' with respect to any such individual means the one-year period beginning with the first day of the first week with respect to which the individual first registers for work and files a valid claim for benefits. After the termination of such benefit year, the next benefit year shall be the next one-year period beginning with the first day of the first week with respect to which such individual registers for work and files a valid claim. A valid claim shall be deemed to have been filed if such individual, at the time the claim is filed, is unemployed and has been paid wages in more than one calendar quarter of his base period amounting to at least the minimum of the qualifying base period wages as set forth in the applicable table in § 96-12, and when such individual has in his last established benefit year exhausted his maximum benefit entitlement, he must also have met the provisions of § 96-12(b)(3).
"b. As to claims filed on or after July 1, 1965, by individuals who do not have benefit years in progress, 'benefit year' with respect to any such individual means the one-year period beginning with the first day of the first week with respect to which the individual first registers for work and files a valid claim for benefits. A valid claim shall be deemed to have been filed if such individual, at the time the claim is filed, is unemployed and has been paid wages in his base period amounting to at least the minimum qualifying wages as set forth in the applicable table in General Statutes 96-12 and, in addition, must have been paid wages in other than the high quarter of his base period equal to at least twenty per cent (20%) of the minimum required base period earnings for his assigned weekly benefit amount as shown in the applicable table in General Statutes 96-12. When such individual has in his last established benefit year exhausted his maximum benefit entitlement, he must also have met the provisions of General Statutes 96-12(b)(3). After the termination of such benefit year, the next benefit year shall be the next one-year period beginning with the first day of the first week with respect to which such individual registers for work and files a valid claim."
Sec. 6. That Article 2, Chapter 96, Section 96-9(b)(2)b, General Statutes of North Carolina as such appears in the 1965 Replacement Volume 2C thereof, be and the same is hereby amended by rewriting the last sentence in paragraph b, beginning with the word "Credit" and ending with the word "periods." to read as follows:
"Credit balance as used in this Section means the total of all contributions paid and credited for all past periods in accordance with the provisions of General Statutes 96-9(c)(1) together with all other lawful credits to the account of the employer less the total benefits charged to the account of the employer for all past periods."
Sec. 7. That Article 2, Chapter 96, Section 96-9(b)(2)c, General Statutes of North Carolina as such appears in the 1965 Replacement Volume 2C thereof, be and the same is hereby amended by rewriting said paragraph c to read as follows:
"c. The Commission shall for each year compute a debit ratio for each employer whose account shows that the total of all his contributions paid and credited for all past periods in accordance with the provisions of General Statutes 96-9(c)(1) together with all other lawful credits is less than the total benefits charged to his account for all past periods. An employer's debit ratio shall be the quotient obtained by dividing the debit balance of such employer's account as of July 31 of each year by the total taxable payroll of such employer for the thirty-six calendar-month period ending June 30 preceding the computation date. The amount arrived at by subtracting the total amount of all contributions paid and credited for all past periods in accordance with the provisions of General Statutes 96-9(c)(1) together with all other lawful credits of the employer from the total amount of all benefits charged to the account of the employer for such periods is the employer's debit balance."
Sec. 8. That Article 2, Chapter 96, Section 96-9(b)(3)c, General Statutes of North Carolina as such appears in the 1965 Replacement Volume 2C thereof, be and the same is hereby amended by rewriting paragraph c to read as follows:
"c. Each employer whose account as of any computation date occurring after August 1, 1964, shows a debit balance shall be assigned the rate of contributions appearing on the line opposite his debit ratio as set forth in the following Rate Schedule for Overdrawn Accounts:
"RATE SCHEDULE FOR OVERDRAWN ACCOUNTS BEGINNING WITH THE CALENDAR YEAR 1966
When the Debit Ratio is:
As Much As But Less Than Assigned Rate
0.0 0.3 2.9%
0.3 0.6 3.1%
0.6 0.9 3.3%
0.9 1.2 3.5%
1.2 1.5 3.7%
1.5 1.8 3.9%
1.8 2.1 4.1%
2.1 2.4 4.3%
2.4 2.7 4.5%
2.7 and over 4.7%
New rates with respect to overdrawn accounts shall be assigned to employers effective January 1, 1966, in accordance with the foregoing Rate Schedule for Overdrawn Accounts; provided, however, that rates applicable to the year 1965 and prior years thereto shall be assigned in accordance with the provisions of General Statutes 96-9(b)(3)c of the law as such existed prior to the effective date of this Act."
Sec. 9. That Article 2, Chapter 96, Section 96-9(c)(1), General Statutes of North Carolina as such appears in the 1965 Replacement Volume 2C thereof, be and the same is hereby amended by striking out the first sentence thereof beginning with the words "The Commission" in line one and ending with "1952." in line five and inserting in lieu of said sentence the following:
"The Commission shall maintain a separate account for each employer and shall transfer to such account such employer's reserve account balance as of July 31, 1952, and shall credit his account with all voluntary contributions made by him and all other contributions which he has paid or is paid on his own behalf subsequent to July 31, 1952, with respect to employment occurring after such date and prior to July 1, 1965, provided that any voluntary contribution made by an employer under the provisions of G.S. 96-9(b)(3)e, and credited to his account as of any date subsequent to July 31, 1965, shall be credited to such account in an amount equal to eighty per cent (80%) of the amount of such voluntary contribution. The Commission shall credit the account of each employer in an amount equal to eighty per cent (80%) of all contributions which he has paid or is paid on his own behalf with respect to employment occurring subsequent to June 30, 1965."
Sec. 10. That Article 2, Chapter 96, Section 96-9(c)(2)b, General Statutes of North Carolina as such appears in the 1965 Replacement Volume 2C thereof, be and the same is hereby amended by striking out the word "earned" in line three thereof and inserting in lieu thereof the following: "paid".
Sec. 11. That Article 2, Chapter 96, Section 96-10(e), General Statutes of North Carolina as such appears in the 1965 Replacement Volume 2C thereof, be and the same is hereby amended by striking out the last sentence thereof which begins in line twenty-one with the words "In any case" and ends with the words "other state" preceding the period in line twenty-seven, and inserting in lieu thereof the following:
"In any case, where the Commission finds that any employing unit has erroneously paid to this State contributions or interest upon wages earned by individuals in employment in another state, refund or adjustment thereof shall be made, without interest, irrespective of any other provisions of this subsection, upon satisfactory proof to the Commission that such other state has determined the employing unit liable under its law for such contributions or interest."
Sec. 12. That Article 2, Chapter 96, Section 96-11(c), General Statutes of North Carolina as such appears in the 1965 Replacement Volume 2C thereof, be and the same is hereby amended by adding a new subdivision reading as follows:
"(3) On and after July 1, 1965, the Commission on its own motion and in its discretion, upon thirty (30) days written notice mailed to the last known address of such employer, may terminate coverage of any employer which has become subject to the Act solely by electing coverage under the provisions of this subsection."
Sec. 13. That Article 2, Chapter 96, Section 96-11(c), subdivisions (1) and (2), General Statutes of North Carolina as such appear in the 1965 Replacement Volume 2C thereof, be and they are hereby each amended by striking out the period at the end of each of said subdivisions and adding to each subdivision the following:
", provided such employing unit may be terminated by the Commission as provided under the provisions of subdivision (3) of this subsection."
Sec. 14. That Article 2, Chapter 96, Section 96-11(d), General Statutes of North Carolina as such appears in the 1965 Replacement Volume 2C thereof, be and the same is hereby amended by rewriting the second sentence thereof which begins in line three with the word "An" and ends with the word "account" preceding the period in line eight to read as follows:
"An employer who has not had individuals in employment and who has made due application for exemption from filing contributions and wage reports required under this Chapter and has been so exempted may be terminated from liability upon written application within one hundred twenty (120) days after notification of the reactivation of his account."
Sec. 15. That Article 2, Chapter 96, Section 96-12(b)(1) and (2), General Statutes of North Carolina as such appears in the 1965 Replacement Volume 2C thereof, be and the same are hereby amended by rewriting said subdivisions to read as follows:
"(b)(1) Each eligible individual whose benefit year begins on and after the first day of July, 1961, and prior to the first day of July, 1965, and who is totally unemployed during any week as defined by General Statutes 96-8(10)a, shall be paid benefits with respect to such week or weeks at the rate per week appearing in the following table in Column II opposite which in Column I appear the wages paid to such individual during his base period with respect to employment:
Column I Column II
Wages Paid During Weekly Benefit
Base Period Amount
Less than $550.00 Ineligible
$ 550.00 to $ 649.00 $ 12.00
650.00 749.99 13.00
750.00 849.99 14.00
850.00 949.99 15.00
950.00 1,059.99 16.00
1,060.00 1,169.99 17.00
1,170.00 1,279.99 18.00
1,280.00 1389.99 19.00
1,390.00 1,499.99 20.00
1,500.00 1,619.99 21.00
1,620.00 1,739.99 22.00
1,740.00 1,859.99 23.00
1,860.00 1,979.99 24.00
1,980.00 2,099.99 25.00
2,100.00 2,239.99 26.00
2,240.00 2,379.99 27.00
2,380.00 2,529.99 28.00
2,530.00 2,679.99 29.00
2,680.00 2,839.99 30.00
Column I Column II
Wages Paid During Weekly Benefit
Base Period Amount
2,840.00 2,999.99 31.00
3,000.00 3,199.99 32.00
3,200.00 3,399.99 33.00
3,400.00 3,599.99 34.00
3,600.00 and over 35.00
(2) Each eligible individual whose benefit year begins on and after the first day of July, 1965, and who is totally unemployed as defined by Section 96‑8(10)a, shall be paid benefits with respect to such week or weeks at the rate per week appearing in the following table in Column II opposite which in Column I appear the wages paid to such individual during his base period with respect to employment; provided he has been paid qualifying wages in other than the high quarter of his base period in at least an amount equal to that appearing in Column III opposite his assigned weekly benefit amount which appears in Column II:
Column I Column II Column III
Wages Paid During Assigned Weekly Non-High Quarter
Base Period Benefit Amount Wages Required
Less Than $550.00 Ineligible
As Much As $ 550.00 But Not More Than $ 649.99 $ 12.00 $ 110.00
As Much As 650.00 But Not More Than 749.99 14.00 130.00
As Much As 750.00 But Not More Than 949.99 16.00 150.00
As Much As 950.00 But Not More Than 1,149.99 18.00 190.00
As Much As 1,150.00 But Not More Than 1,349.99 20.00 230.00
As Much As 1,350.00 But Not More Than 1,549.99 22.00 270.00
As Much As 1,550.00 But Not More Than 1,749.99 24.00 310.00
As Much As 1,750.00 But Not More Than 1,949.99 26.00 350.00
As Much As 1,950.00 But Not More Than 2,149.99 28.00 390.00
As Much As 2,150.00 But Not More Than 2,349.99 30.00 430.00
As Much As 2,350.00 But Not More Than 2,599.99 32.00 470.00
As Much As 2,600.00 But Not More Than 2,999.99 34.00 520.00
As Much As 3,000.00 But Not More Than 3,399.99 36.00 600.00
As Much As 3,400.00 But Not More Than 3,799.99 38.00 680.00
As Much As 3,800.00 But Not More Than 4,199.99 40.00 760.00
As Much As 4,200.00 and Over 42.00 840.00
Sec. 16. That Article 2, Chapter 96, Section 96-12(c), General Statutes of North Carolina as such appears in the 1965 Replacement Volume 2C thereof, be and the same is hereby amended by rewriting subsection (c) to read as follows:
"(c) Partial Weekly Benefit. Each eligible individual who is either partially unemployed or part totally unemployed (as defined in Section 96-8(10) b and c) in any week shall be paid with respect to such week a partial benefit. Such partial benefit shall be an amount which is equal to the difference between his weekly benefit amount and that part of the remuneration payable to him with respect to such week figured to the next highest dollar which is in excess of a sum equal to one-half of his weekly benefit amount."
Sec. 17. That Article 2, Chapter 96, Section 96-13(3), General Statutes of North Carolina, as such appears in the 1965 Replacement Volume 2C thereof, be and the same is hereby amended by adding at the end of such subsection the following:
"For the purposes of this subsection, no individual shall be deemed available for work during any week in which he is registered at and attending an established school, or is on vacation during or between successive quarters or semesters of such school attendance, or on vacation between yearly terms of such school attendance."
Sec. 18. That Article 2, Chapter 96, Section 96-13, General Statutes of North Carolina as such appears in the 1965 Replacement Volume 2C thereof, be and the same is hereby amended by adding thereto the following:
"(4) He has been either totally, partially, or part totally unemployed for a waiting period of one week with respect to each benefit year. No week shall be counted as a week of unemployment for waiting period credit under this provision, unless the claimant except for the provisions of this subsection was otherwise eligible for benefits."
Sec. 19. That Article 2, Chapter 96, Section 96-14, General Statutes of North Carolina as such appears in the 1965 Replacement Volume 2C thereof, be and the same is hereby amended by striking out subsection (5) thereof in its entirety and renumbering subsections (6), (7), and (8) as (5), (6), and (7), respectively.
Sec. 20. That Article 2, Chapter 96, Section 96-15(b)(1), General Statutes of North Carolina as such appears in the 1965 Replacement Volume 2C thereof, be and the same is hereby amended by inserting after the period following the word "designate" and before the word "The" in line twelve of said subdivision the following:
"The claimant shall be allowed ten (10) days from the delivery of his initial determination to him within which to protest his initial or monetary determination and upon the filing of such protest, unless said protest be satisfactorily resolved, the claim shall be referred to a deputy for a decision as to the issues presented."
Sec. 21. That Article 2, Chapter 96, Section 96-15(b)(2), General Statutes of North Carolina as such appears in the 1965 Replacement Volume 2C thereof, be and the same is hereby amended by striking out in the first line of said subdivision the word "When" and inserting in lieu thereof the following:
"When a protest is made by the claimant to his initial determination or".
Sec. 22. That Article 2, Chapter 96, Section 96-15(i), General Statutes of North Carolina as such appears in the 1965 Replacement Volume 2C thereof, be and the same is hereby amended by striking out the last sentence in said subsection beginning with the words "Such an appeal" and ending with the words "rendered by it." and inserting in lieu thereof the following:
"When an appeal has been entered to any judgment, order, or decision of the court below, no benefits shall be paid pending a final determination of the cause, except in those cases in which the court below has affirmed a decision of the Commission allowing benefits or benefits are payable under the provisions of Section 96-15(b)(2)."
Sec. 23. That Article 2, Chapter 96, Section 96-18(e), General Statutes of North Carolina as such appears in the 1965 Replacement Volume 2C thereof, be and the same is hereby amended by rewriting subsection (e) to read as follows:
"(e) An individual shall not be entitled to receive benefits for one year beginning with the first day following the last benefit week for which he received benefits, or one year from the date upon which the act was committed, whichever is the later, if he, or another in his behalf with his knowledge, has been found to have knowingly made a false statement or misrepresentation, or who has knowingly failed to disclose a material fact to obtain or increase any benefit or other payment under this Chapter."
Sec. 24. That Article 2, Chapter 96, Section 96-18(f), General Statutes of North Carolina as such appears in the 1965 Replacement Volume 2C thereof, be and the same is hereby amended by striking out in line four thereof the words "earned by" and inserting in lieu thereof the following:
"paid to".
Sec. 25. That all laws and clauses of laws in conflict with the provisions of this Act are hereby repealed.
Sec. 26. This Act shall be in full force and effect upon its ratification.
In the General Assembly read three times and ratified, this the 3rd day of June, 1965.