EmR2125 Rule Text

A preliminary public hearing on the statement of scope was held on September 8, 2021; comments were received at the hearing and by email. Commenters generally supported promulgating a rule creating policies like those established by the Department in prior unemployment insurance emergency rules related to COVID-19. One commenter indicated support for the charging relief and emergency rules the Department had promulgated in the past and indicated that the Department should continue to not require employers to submit a form to request charging relief for claims related to laid off workers. Another commenter supported the waiver of interest for reimbursable employers and asked to have the interest waived until after Department has relieved all employers of benefit charges related to the public health emergency as well as for some time afterward so that employers may review the revised bill and set up a payment plan.

Agency Response: The Department considered all relevant comments received. The Department agrees that the intent of the new rule will be to continue to not require employers to submit a form to request charging relief for claims related to laid off workers but that there would continue to be some circumstances that require the form to be submitted to request benefit charging relief, such as for quits that would otherwise remain charged to employers. The Department has drafted the emergency rule to provide for an interest waiver for each month during which the rule is in effect for any part of the month. This is expected to provide an interest waiver for reimbursable employers after the Department completes the charging relief for reimbursable employer accounts, assuming that the emergency rule is in effect for at least 150 days.

Agency contact person

Questions related to this rule may be directed to:

Janell Knutson, Director, Bureau of Legal Affairs

Division of Unemployment Insurance

Department of Workforce Development

P.O. Box 8942

Madison, WI 53708

Telephone: [phone]

E-Mail: [e-mail]

Place where comments are to be submitted and deadline for submission

Mark Kunkel, Rules and Records Coordinator

Department of Workforce Development

P.O. Box 7946

Madison, WI 53707

E-Mail: [e-mail]

Comments will be accepted until a date to be determined.

  Section 1. DWD 102.01 is amended to read:

  DWD 102.01 Purpose. This chapter specifies the initial contribution rates for certain categories of employers. This chapter also provides the treatment of benefit claims and adjustments for determining employer contribution rates for 2022.

  Section 2. DWD 102.04 is created to read:

  DWD 102.04 2022 Employer Contribution Rates. When calculating 2022 employer contribution rates, all benefit charges for weeks of unemployment for the period of March 15, 2020 through March 13, 2021 and all benefit adjustments processed during the period of March 15, 2020 through March 13, 2021 shall be disregarded.

  Section 3. DWD 113.027 is created to read:

  DWD 113.027 Waiver of Interest for Employers Subject to Reimbursement Financing. The department shall waive interest for amounts owed by reimbursable employers, as defined in s. 108.155 (1) (b), Stats., to ensure correct employer billing and to provide reimbursable employers the opportunity to pay their reimbursements over time. This waiver shall apply to each month during which this rule is in effect for any part of the month.

  Section 4. DWD 123.01 is amended to read:

  DWD 123.01 Purpose. Pursuant to ss. 108.04 (13), 108.09 (1), and 108.14 (2), Stats., in order to determine benefit claims, the department requires employers to provide information about claimants’ employment separations, dates of work, wages and other payments, and other issues that may be disqualifying. This chapter specifies the benefit reports that must be filed by employers and the filing requirements for those reports. This chapter also determines the information that employers must submit under ss. 108.04 (2) (d) and 108.07 (5) (bm), Stats., if any, to request relief of unemployment benefit charges for initial claims filed for benefit years beginning on or after March 15, 2020 through March 13, 2021, the deadline by which employers must submit the information, if any, to the department, and the treatment of payors of base period wages.

  Section 5. DWD 123.04 is created to read:

  DWD 123.04 Requests for Charging Relief. (1) Under s. 108.07 (5) (bm) 1m., Stats., for separations from employment that are not due to a labor dispute, voluntary termination of work, discharge for misconduct, or discharge for substantial fault, an employer does not need to submit information to the department to receive relief of benefit charges under s. 108.07 (5) (bm), Stats.

  (2) An employer that paid base period wages to a claimant whose most recent separation from employment is due to a voluntary termination of work for which s. 108.04 (7) (h), Stats., does not apply and whose initial claim is for benefit years beginning on or after March 15, 2020 through March 13, 2021 may receive relief of benefit charges under s. 108.07 (5) (bm), Stats., by submitting a request for relief under this section.

  (3) An employer may be relieved of unemployment benefit charges under s. 108.07 (5) (bm), Stats., for benefits for initial claims described in sub. (2) if it provides the information specified by the department in the form required by the department.

  Note: The required department form for requesting charging relief is UCB-18823-E, available online at https://dwd.wisconsin.gov/uitax/relief-of-charging.htm.

  (4) An employer described in sub. (2) may receive benefit charging relief if it certifies that any of the following circumstances apply to the initial claim:

  (a) The employer’s business/operations reduced, suspended, or ceased after experiencing a significant reduction of income due to a Safer at Home order or a government-issued health order that restricts business operations.

  (b) The employer’s business/operations reduced, suspended, or ceased due to other businesses (including suppliers) having reduced, suspended, or ceased operations.

  (c) The federal Paycheck Protection Program loan amount was used to pay employees, but the business did not yet reopen.

  (d) The employer provides other information showing that the initial claim relates to the public health emergency declared on March 12, 2020 by Executive Order 72.

  (5) An employer that must submit a request for relief under this section to receive relief under s. 108.07 (5) (bm), Stats., must submit the request to the department by the thirtieth day after the department sent a notification to the employer of an initial claim for benefit years beginning on or after March 15, 2020 through March 13, 2021.

  (6) If an initial claim relates to the public health emergency declared on March 12, 2020, by Executive Order 72 and s. 108.07 (5) (bm) 1., Stats., applies to the claim, the provisions of s. 108.07 (5) (bm) 3., Stats., apply to all the employers that paid base period wages for the claim.

  (7) The department shall apply s. 108.07 (5) (bm), Stats., to additional initial claims filed on or after March 15, 2020 through March 13, 2021 for any benefit years that began before March 15, 2020.

  Section 6. Effective dates. This rule shall take effect on October 3, 2021, or upon publication in the official state newspaper, as provided in s. 227.24 (1) (c), Stats., whichever is later, except that Sections 1 and 2 of this rule shall take effect on November 26, 2021.

  Dated this 20th day of September, 2021.

  WISCONSIN DEPARTMENT OF WORKFORCE DEVELOPMENT

By:   __________________________________________________________

  Amy Pechacek, Secretary-designee