Arkansas Code of 1987 (2023) › Title 11 - LABOR AND INDUSTRIAL RELATIONS (§§ 11-1-201 — 11-15-105) › Chapter 10 - DEPARTMENT OF WORKFORCE SERVICES LAW (§§ 11-10-101 — 11-10-1018) › Subchapter 7 - CONTRIBUTIONS (§§ 11-10-701 — 11-10-723) › Section 11-10-704 - Future rates - Experience rates generally

(a)
The Director of the Division of Workforce Services shall, for each calendar year, classify employers in accordance with their actual experience in the payment of contributions on their own behalf and with respect to regular benefits charged against their accounts, with a view to fixing the contribution rates as will reflect their experience.
(b)
(1)
Except as provided in subsection (c) of this section, the director shall determine the contribution rates of each employer in accordance with the requirements of this section and §
11-10-705
.
(2)
(A)
Each employer's rate shall be two and nine-tenths percent (2.9%) except as otherwise provided in the other provisions of this subchapter.
(B)
(i)
(a)
No employer's rate shall be less than two and nine-tenths percent (2.9%) unless and until there have been three (3) years immediately preceding the computation date throughout which an individual in the employer's employ could have received benefits if eligible.
(b)
Provided, however, an employer who, at the time of establishing an account, is in business in another state or states and who is not currently doing business in Arkansas may elect to receive a beginning contribution rate of two and nine-tenths percent (2.9%) or a contribution rate based on the rate schedule at §
11-10-705(b)(1)
, whichever is lower, but in no event less than one percent (1%), provided:
(1)
The employer has been in operation in the other state or states for at least three (3) years immediately preceding the date of becoming a liable employer in Arkansas, throughout which an individual in the employer's employ could have received benefits if eligible;
(2)
The employer must provide the authenticated account history from information accumulated from operations in the other state or states to compute a current Arkansas rate; and
(3)
The employer's business operations established in Arkansas are of the same nature as conducted in the other state or states, as defined by the North American Industry Classification System.
(ii)
(a)
The election authorized in subdivision (b)(2)(B)(i) of this section must be made in writing within thirty (30) days after receiving notice of Arkansas liability.
(b)
A two-and-nine-tenths-percent rate will be assigned unless a timely election has been made.
(iii)
If the election is made timely, the employer's account will receive the rate elected for the remainder of that rate year. The rate assigned for the next and subsequent years will be determined by the condition of the account on the computation date.
(C)
However, any employer having no covered employment under this chapter for any calendar year shall have a rate equal to his or her most recently determined contribution rate until the employer has one (1) full year of benefit risk experience immediately preceding the computation date.
(3)
(A)
Notwithstanding any other provisions of §§
11-10-701
-
11-10-715
, if the director determines that an employer has willfully submitted false information which is material with respect to the employment or separation from employment of any claimant, employee, or former employee, for the purpose of preventing regular benefit charges to the employer's account, the employer shall be assessed a penalty equivalent to twice the amount of the claimant's maximum potential benefit amount.
(B)
This penalty shall be charged against the employer's account for experience rating purposes, regardless of whether or not the employer is a base-period employer and irrespective of the identity or number of base-period employers.
(4)
An employer who changes from reimbursement to the contributory method of financing shall be considered a new or newly covered employer and can be entitled to an experience rate only when the new or newly covered employer has met the requirements of this subsection.
(5)
Each employer's rate beginning January 1 for each twelve-month period shall be determined on the basis of the employer's record through June 30 of the previous calendar year.
(c)
(1)
The director shall determine the contribution rates of each employer according to the requirements of this section and §
11-10-705
.
(2)
(A)
For any calendar year beginning on or after January 1, 2024, each employer's rate shall be one and nine-tenths percent (1.9%) except as otherwise provided in this subchapter.
(B)
(i)
(a)
An employer's rate shall not be less than one and nine-tenths percent (1.9%) unless and until there have been three (3) years immediately preceding the computation date throughout which an individual in the employer's employ could have received benefits, if eligible.
(b)
Provided, however, an employer who, at the time of establishing an account, is in business in another state or states and who is not currently doing business in Arkansas may elect to receive a beginning contribution rate of one and nine-tenths percent (1.9%) or a contribution rate based on the rate schedule in §
11-10-705(b)(1)
, whichever is lower, but in no event less than one percent (1%), provided:
(1)
The employer has been in operation in the other state or states for at least three (3) years immediately preceding the date of becoming a liable employer in Arkansas, throughout which an individual in the employer's employ could have received benefits, if eligible;
(2)
The employer must provide the authenticated account history from information accumulated from operations in the other state or states to compute a current Arkansas rate; and
(3)
The employer's business operations established in Arkansas are of the same nature as conducted in the other state or states, as defined by the North American Industry Classification System.
(ii)
(a)
The election authorized in subdivision (c)(2)(B)(i) of this section must be made in writing within thirty (30) days after receiving notice of Arkansas liability.
(b)
A one-and-nine-tenths-percent rate will be assigned unless a timely election has been made.
(iii)
(a)
If the election is timely made, the employer's account will receive the rate elected for the remainder of that rate year.
(b)
The rate assigned for the next and subsequent years will be determined by the condition of the account on the computation date.
(C)
However, any employer having no covered employment under this chapter for any calendar year shall have a rate equal to his or her most recently determined contribution rate until the employer has one (1) full year of benefit risk experience immediately preceding the computation date.
(3)
(A)
Notwithstanding any other provisions of §§
11-10-701
-
11-10-715
, if the director determines that an employer has willfully submitted false information that is material with respect to the employment or separation from employment of any claimant, employee, or former employee, for the purpose of preventing regular benefit charges to the employer's account, the employer shall be assessed a penalty equivalent to twice the amount of the claimant's maximum potential benefit amount.
(B)
This penalty shall be charged against the employer's account for experience rating purposes, regardless of whether or not the employer is a base-period employer and irrespective of the identity or number of the base-period employer.
(4)
An employer who changes from reimbursement to the contributory method of financing shall be considered a new or newly covered employer and can be entitled to an experience rate only when the new or newly covered employer has met the requirements of this subsection.
(5)
Each employer's rate beginning January 1 for each twelve-month period shall be determined on the basis of the employer's record through June 30 of the previous calendar year.
Amended by Act 2023, No. 196,§ 3, eff. 3/6/2023.
Amended by Act 2019, No. 910,§ 286, eff. 7/1/2019.
Acts 1941, No. 391, § 7; 1943, No. 135, § 1; 1947, No. 398, § 6; 1955, No. 395, § 22; 1957, No. 133, § 1; 1963, No. 93, § 9; 1971, No. 35, § 11; 1973, No. 329, §§ 10, 11; 1973, No. 350, §§ 2, 3; 1975, No. 609, § 6; A.S.A. 1947, § 81-1108; Acts 2001, No. 1528, § 1; 2005, No. 902, § 8.