2023 District of Columbia Code › Title 51 - Social Security › Chapter 1 - Unemployment Compensation › Subchapter I - General › Part A - Administration of The District Unemployment Fund › § 51–103. Employer contributions

§ 51–103. Employer contributions.
(a) Each employer who employs 1 or more individuals in any employment shall for each month, beginning with the month of January 1936, and ending December 31, 1939, pay contributions equal to the following percentages of the total wages payable (regardless of the time of payment) with respect to such employment by him during such month:
(1) With respect to employment during the calendar year 1936, the rate shall be 1%;
(2) With respect to employment during the calendar year 1937, the rate shall be 2%;
(3) With respect to employment during the calendar years 1938 and 1939, the rate shall be 3%.
(b) Each employer shall pay contributions equal to 2.7% of wages paid by him during the calendar year 1940 and thereafter with respect to employment after December 31, 1939. After December 31, 1978, each employer shall pay contributions at the rate in effect for the current year as provided by subsections (c)(3), (c)(4)(B), and (c)(8)(A) of this section.
(c)(1) The Director shall maintain a separate account for each employer, and shall credit his account with all of the contributions paid by him after June 30, 1939, with respect to employment subsequent to May 31, 1939. Each year the Director shall credit to each of such accounts having a positive reserve on the computation date, the interest earned from the federal government in the following manner: Each year the ratio of the credit balance in each individual account to the total of all the credit balances in all employer accounts shall be computed as of such computation date, and an amount equal to the interest credited to the District’s account in the Unemployment Trust Fund in the Treasury of the United States for the 4 most recently completed calendar quarters shall be credited prior to the next computation date on the pro rata basis to all employers’ accounts having a credit balance on the computation date. Such amount shall be prorated to the individual accounts in the same ratio that the credit balance in each individual account bears to the total of the credit balances in all such accounts. In computing the amount to be credited to the account of an employer as a result of interest earned by funds on deposit in the Unemployment Trust Fund in the Treasury of the United States to the account of the District, any voluntary contribution made by an employer after June 30th of any year shall not be considered a part of the account balance of the employer until the next computation date occurring after such voluntary contribution was made. Nothing in this subchapter shall be construed to grant any employer or individual in his service prior claims or rights to the amounts paid by him into the Fund either on his own behalf or on behalf of such individuals.
(2)(A) Benefits paid to an individual with respect to any week of unemployment which was based on an initial claim filed after June 30, 1939, and before July 1, 1940, shall be charged against the account of his most recent employer. Benefits paid to an individual on an initial claim for benefits filed after June 30, 1940, shall be charged against the accounts of his base period employers, except as specifically provided by subparagraphs (B), (C), (D), and (E) below. The amount of benefits so chargeable against each base period employer’s account shall bear the same ratio to the total benefits paid to an individual as the base period wages paid to the individual by such employer bear to the total amount of the base period wages paid to the individual by all of his base period employers. All base period employers whose accounts could be charged with benefits paid to an individual with respect to a claim made pursuant to this subchapter shall be given notice of potential charges.
(B) After December 31, 1971, benefits paid to an individual for any week during which he is attending a training or retraining course under the provision of § 51-110(d)(2) shall not be charged against such employer accounts, except that this subparagraph shall not apply to employers who have elected to make payments in lieu of contributions under subsection (f) or (h) of this section.
(C) After December 31, 1971, extended benefits paid to an exhaustee under the provisions of § 51-107(g) shall not be charged against such employer accounts, except that this provision shall not apply to employers who have elected to make payments in lieu of contributions under subsection (f) or (h) of this section.
(D) Commencing with the first full calendar quarter following the effective date of this subchapter, but no earlier than January 1, 1979, benefits paid to an individual subsequent to a disqualification imposed under the provisions of § 51-110(a) or (b) shall not be charged against such employer accounts, except that this provision shall not apply to employers who have elected to make payments in lieu of contributions under subsection (f) or (h) of this section.
(E) Benefits paid to an individual with respect to any week of unemployment during which the individual is a continuing part-time employee of an employer other than the separating employer shall not be charged to the continuing employer’s account, except this provision shall not apply to those employers who have elected to make payments in lieu of contributions under subsection (f) or (h) of this section.
(F) Commencing with overpayments of benefits established after September 30, 2013, no employer shall be relieved of benefit charges for payments made from the District Unemployment Fund if the charges resulted from benefit payments made because the employer or the employer’s agent was at fault for failing to respond timely or adequately to the request of the Director for information relating to the claim for benefits and the employer or agent has established a pattern of failing to respond timely or adequately to such requests unless the Director finds such failure was for good cause.
(G) Federal Pandemic Unemployment Compensation benefits paid to an individual pursuant to section 2104 of the Coronavirus Aid, Relief, and Economic Security Act, approved March 27, 2020 (Pub. L. No. 116-136; 134 Stat. 318), shall not be charged against an employer's account.
(H)(i) The following benefits paid to an individual who became unemployed or partially unemployed as a result of the circumstances giving rise to the public health emergency shall not be charged to an employer's experience rating:
(I) Benefits paid to an affected employee pursuant to section 101(a), (b), (d), (e), and (g) of the Coronavirus Support Temporary Amendment Act of 2021, effective June 24, 2021 (D.C. Law 24-9; 68 DCR 4824) [Expired], or any preceding act of the Council of the District of Columbia authorizing payment of benefits on substantially similar terms as those described in section 101 [Expired];
(II) Benefits paid to an affected employee after the expiration of section 101 [Expired], because the employee continues to otherwise qualify for benefits; and
(III) Benefits paid under other local or federal law, including the federal Pandemic Emergency Unemployment Compensation program and extended benefits authorized under § 51-107(g).
(ii) For the purposes of this subparagraph, the term:
(I) "Affected employee" shall have the same meaning as provided in section 101(d) of the Coronavirus Support Temporary Amendment Act of 2021, effective June 24, 2021 (D.C. Law 24-9; 68 DCR 4824) [Expired].
(II) "Public health emergency" means the Coronavirus (COVID-19) public health emergency declared pursuant to Mayor's Order 2020-046, on March 11, 2020, and all subsequent extensions.
(3)(A) After January 1, 1983, each employer newly subject to this subchapter shall pay contributions at a rate equal to the average rate on taxable wages of all employers for the preceding 12-month period ending June 30th (rounded to the next higher tenth of 1%) or 2.7%, whichever is higher, until he has been an employer for a sufficient period to meet the requirement to qualify for a reduced rate based on experience as provided in paragraph (4) of this subsection.
(B) Employers electing to become liable for payments in lieu of contributions shall make payments pursuant to subsection (h) of this section.
(4)(A) After December 31, 1978, contribution rates of all employers whose accounts could have been charged with benefits paid throughout the 36-consecutive-calendar-month period ending on the computation date applicable to such year or part thereof shall be determined in accordance with the provisions of subparagraph (B) of this paragraph.
(B)(i) If the balance of the Fund referred to in § 51-106 as of September 30, in any calendar year exceeds 3% of the total payrolls of employers subject to contributions under this subchapter on the preceding June 30, Table I in subsection (c)(8)(A) of this section shall be used to compute rates for employers pursuant to subparagraph (A) of this paragraph.
(ii) If the balance of the Fund as of September 30 in any calendar year shall be greater than 2.5% but not in excess of 3% of the total payrolls of employers subject to contributions under this subchapter on the preceding June 30, Table II in subsection (c)(8)(A) of this section shall be used to compute the rates for employers pursuant to subparagraph (A) of this paragraph.
(iii) If the balance of the Fund as of September 30 in any calendar year shall be greater than 2% but not in excess of 2.5% of the total payrolls of employers subject to contributions under this subchapter on the preceding June 30, Table III in subsection (c)(8)(A) of this section shall be used to compute rates for employers pursuant to subparagraph (A) of this paragraph.
(iv) If the balance of the Fund on September 30 of any calendar year shall be greater than 1.5% but not in excess of 2% of the total payrolls subject to contributions on the preceding June 30, Table IV in subsection (c)(8)(A) of this section shall be used to compute rates for employers pursuant to subparagraph (A) of this paragraph.
(v) If the balance of the Fund on September 30 of any calendar year shall be greater than .8% but not in excess of 1.5% of the total payrolls of employers subject to contributions under this subchapter on the preceding June 30, Table V in subsection (c)(8)(A) of this section shall be used to compute rates for employers pursuant to subparagraph (A) of this paragraph.
(vi) If the balance of the Fund on September 30 of any calendar year shall not be greater than .8% of the total payrolls of employers subject to contributions under this subchapter on the preceding June 30, Table VI in subsection (c)(8)(A) of this section shall be used to compute employer rates pursuant to subparagraph (A) of this paragraph.
(C) When the Director finds that the continuity of an employer’s employment experience has been interrupted solely by reason of 1 or more of the owners, officers, managers, partners, or majority stockholders of such employer’s employing enterprise having served in the armed forces of the United States of America or any of its allies during a time of war, such employer’s employment experience shall be deemed to have been continuous throughout the period that such individual or individuals so served in such armed forces, including the period up to the time it again resumes the status of an employer liable for contributions under this subchapter, provided it resumes such status within 2 years from the date of discharge of such individual or individuals or from the date of the termination of such war, whichever date is the earlier. For the purposes of this subparagraph, in determining an employer’s contribution rate his average annual payroll shall be the average of his last 3 annual payrolls.
(5) The Director shall for any uncompleted portion of the calendar year beginning July 1, 1943, and for each calendar year thereafter classify employers in accordance with their actual experience in the payment of contributions and with respect to benefits charged against their accounts, except as provided in subsection (c)(3) of this section. Each employer’s contribution rate for each subsequent year or part thereof shall be calculated on the basis of his records filed with the Director and benefit payments disbursed through the applicable computation date. The Director shall compute rates for the second 6 months of 1963 for all employers first acquiring the necessary 12 months’ benefit experience under subsection (c)(4)(A) of this section on the computation date June 30, 1963. Such rates shall be based upon such employer’s experience in the payment of contributions and benefits charged against his account through June 30, 1963, prior to the crediting of his account with Trust Fund interest. All employers issued a rate for the second 6 months of 1963, under this subsection, shall have a computation date of September 30, 1963, for the calendar year 1964.
(6) If, as of the date such classification of employers is made, the Director finds that an employing unit has failed to file any report in connection therewith, or has filed a report which the Director finds incorrect or insufficient, the Director shall make an estimate of the information required from such employing unit on the basis of the best evidence reasonably available to it at the time, and notify the employing unit thereof by registered mail addressed to its last-known address. Unless such employing unit shall file the report or a correct or sufficient report, as the case may be, within 15 days after the mailing of such notice, the Director shall compute such employing unit’s rate of contribution on the basis of such estimates, and the rates so determined shall be subject to increase, but not to reduction, on the basis of subsequently ascertained information.
(7)(A) After December 31, 2005, if any employer transfers all or a portion of its trade or business to another employer, the transferee shall be determined a successor for the purposes of this section.
(i) If the Director is unable to get information upon which to determine what portion of the business has been transferred, the Director may, in the Director’s discretion, make such determination based upon the quarterly payrolls of the employers involved for the last complete calendar quarter prior to the transfer and the first complete calendar quarter after such transfer.
(ii) In the event of a transfer of a portion of the assets of a covered employer’s business by any means whatever, otherwise than in the ordinary course of trade, such transfer shall be deemed a transfer of business and shall constitute the transferee a successor hereunder, unless the director, on the Director’s own motion or on application of an interested party, finds that all of the following conditions exist:
(I) The transferee has not assumed any of the transferor’s obligations;
(II) The transferee has not continued or resumed transferor’s goodwill;
(III) The transferee has not continued or resumed the business of the transferor, either in the same establishment or elsewhere; and
(IV) The transferee has not employed substantially the same employees as those the transferor had employed in connection with the assets transferred.
(B) The successor, if not already subject to this section, shall become an “employer” subject hereto on the date of such transfer, and shall accordingly become liable for contributions hereunder from and after said date.
(C) The successor shall take over and continue the employer’s account, including its reserve and all other aspects of its experience under this section, in proportion to the payroll assignable to the transferred business as determined for the purposes of this section by the Director. However, his successor shall take over only the reserve actually credited to the account of the transferor or for which the transferor has filed a claim with the Director at the date of transfer. The successor shall be secondarily liable for any amounts owed by the employer to the Fund at the time of such transfer; but such liability shall be proportioned to the extent of the transfer of business and shall not exceed the value of the assets transferred.
(D) The benefit chargeability of a successor’s account under subsection (c) of this section, if not accrued before the transfer date, shall begin to accrue on the transfer date in case the transferor’s benefit chargeability was then accruing; or shall begin to accrue on the date otherwise applicable to the successor, or on the date otherwise applicable to the transferor, whichever is earlier, in case the transferor’s benefit chargeability was not accruing on the transfer date. Similarly, benefits from a successor’s account, if not chargeable before the transfer date, shall become chargeable on the transfer date, in case the transferor was then chargeable for benefit payments; or shall become chargeable on the date otherwise applicable to the successor or on the date otherwise applicable to the transferor, whichever is earlier, in case the transferor was chargeable for benefit payments on the transfer date.
(E) The account taken over by the successor employer shall remain chargeable with respect to accrued benefit and related rights based on employment in the transferred business, and all such employment shall be deemed employment performed for such employer.
(F) Notwithstanding any other provisions of this section, if the successor employer was an employer subject to this subchapter prior to the date of transfer, his rate of contributions the remainder of the calendar year shall be his rate with respect to the period immediately preceding his date of acquisition. If the successor was not an employer prior to the date of transfer, his rate shall be the rate applicable to the transferor or transferors with respect to the period immediately preceding the date of transfer; provided, that there was only 1 transferor or there were only transferors with identical rates; if the transferor rates were not identical, the successor’s rate shall be the highest rate applicable to any of the transferors with respect to the period immediately preceding the date of transfer. The rate of the transferor, if still subject to the chapter, will not be redetermined and shall remain the rate with respect to the period immediately preceding the date of transfer.
(G) For future years, for the purposes of subsection (c) of this section, the Director shall determine the “experience under this section” of the successor employer’s account and of the transferring employer’s account by allocating to the successor employer’s account for each period in question the respective proportions of the transferring employer’s payroll, contributions, and the benefit charges which the Director determines to be properly assignable to the business transferred.
(8) Variations from the standard rates of contributions for each calendar year or part thereof shall be determined as of the applicable computation date in accordance with the following requirements:
(A) As of the computation date, the total benefits paid after June 30, 1939, then chargeable or charged to any employer’s account, shall be subtracted from the total of all contributions credited to his account with respect to employment since May 31, 1939. The result of this computation shall be known as the employer’s reserve and the employer’s contribution rate for the ensuing calendar year shall be established under Table I, II, III, IV, V, or VI of this subparagraph in accordance with the provisions of paragraph (4)(B) of this subsection.
TABLE I
0.1% if such reserve equals or exceeds 8.0% of the employer’s average annual taxable payroll;
0.2% if such reserve equals or exceeds 7.5% but is less than 8.0% of the employer’s average annual taxable payroll;
0.5% if such reserve equals or exceeds 7.0% but is less than 7.5% of the employer’s average annual taxable payroll;
0.8% if such reserve equals or exceeds 6.5% but is less than 7.0% of the employer’s average annual taxable payroll;
1.1% if such reserve equals or exceeds 6.0% but is less than 6.5% of the employer’s average annual taxable payroll;
1.4% if such reserve equals or exceeds 5.5% but is less than 6.0% of the employer’s average annual taxable payroll;
1.7% if such reserve equals or exceeds 5.0% but is less than 5.5% of the employer’s average annual taxable payroll;
2.0% if such reserve equals or exceeds 4.5% but is less than 5.0% of the employer’s average annual taxable payroll;
2.3% if such reserve equals or exceeds 4.0% but is less than 4.5% of the employer’s average annual taxable payroll;
2.6% if such reserve equals or exceeds 3.0% but is less than 4.0% of the employer’s average annual taxable payroll;
2.9% if such reserve equals or exceeds 1.5% but is less than 3.0% of the employer’s average annual taxable payroll;
3.2% if such reserve equals or exceeds 0.0% but is less than 1.5% of the employer’s average annual taxable payroll;
4.2% if such reserve exceeds minus 2.5% but is less than 0.0% of the employer’s average annual taxable payroll;
4.5% if such reserve exceeds minus 5.0% but is less than or equal to minus 2.5% of the employer’s average annual taxable payroll;
4.8% if such reserve exceeds minus 7.5% but is less than or equal to minus 5.0% of the employer’s average annual taxable payroll;
5.1% if such reserve exceeds minus 10.0% but is less than or equal to minus 7.5% of the employer’s average annual taxable payroll;
5.4% if such reserve is equal to or less than minus 10.0% of the employer’s average annual taxable payroll.
0.6% if such reserve equals or exceeds 8.0% of the employer’s average annual taxable payroll;
1.0% if such reserve equals or exceeds 7.5% but is less than 8.0% of the employer’s average annual taxable payroll;
1.3% if such reserve equals or exceeds 7.0% but is less than 7.5% of the employer’s average annual taxable payroll;
1.6% if such reserve equals or exceeds 6.5% but is less than 7.0% of the employer’s average annual taxable payroll;
1.9% if such reserve equals or exceeds 6.0% but is less than 6.5% of the employer’s average annual taxable payroll;
2.1% if such reserve equals or exceeds 5.5% but is less than 6.0% of the employer’s average annual taxable payroll;
2.3% if such reserve equals or exceeds 5.0% but is less than 5.5% of the employer’s average annual taxable payroll;
2.5% if such reserve equals or exceeds 4.5% but is less than 5.0% of the employer’s average annual taxable payroll;
2.7% if such reserve equals or exceeds 4.0% but is less than 4.5% of the employer’s average annual taxable payroll;
2.9% if such reserve equals or exceeds 3.0% but is less than 4.0% of the employer’s average annual taxable payroll;
3.1% if such reserve equals or exceeds 1.5% but is less than 3.0% of the employer’s average annual taxable payroll;
3.3% if such reserve equals or exceeds 0.0% but is less than 1.5% of the employer’s average annual taxable payroll;
4.6% if such reserve exceeds minus 2.5% but is less than 0.0% of the employer’s average annual taxable payroll;
4.9% if such reserve exceeds minus 5.0% but is less than or equal to minus 2.5% of the employer’s average annual taxable payroll;
5.2% if such reserve exceeds minus 7.5% but is less than or equal to minus 5.0% of the employer’s average annual taxable payroll;
5.5% if such reserve exceeds minus 10.0% but is less than or equal to minus 7.5% of the employer’s average annual taxable payroll;
5.8% if such reserve is equal to or less than minus 10.0% of the employer’s average annual taxable payroll.
TABLE III
1.0% if such reserve equals or exceeds 8.0% of the employer’s average annual taxable payroll;
1.4% if such reserve equals or exceeds 7.5% but is less than 8.0% of the employer’s average annual taxable payroll;
1.7% if such reserve equals or exceeds 7.0% but is less than 7.5% of the employer’s average annual taxable payroll;
2.0% if such reserve equals or exceeds 6.5% but is less than 7.0% of the employer’s average annual taxable payroll;
2.3% if such reserve equals or exceeds 6.0% but is less than 6.5% of the employer’s average annual taxable payroll;
2.5% if such reserve equals or exceeds 5.5% but is less than 6.0% of the employer’s average annual taxable payroll;
2.7% if such reserve equals or exceeds 5.0% but is less than 5.5% of the employer’s average annual taxable payroll;
2.9% if such reserve equals or exceeds 4.5% but is less than 5.0% of the employer’s average annual taxable payroll;
3.0% if such reserve equals or exceeds 4.0% but is less than 4.5% of the employer’s average annual taxable payroll;
3.2% if such reserve equals or exceeds 3.0% but is less than 4.0% of the employer’s average annual taxable payroll;
3.4% if such reserve equals or exceeds 1.5% but is less than 3.0% of the employer’s average annual taxable payroll;
3.6% if such reserve equals or exceeds 0.0% but is less than 1.5% of the employer’s average annual taxable payroll;
5.0% if such reserve exceeds minus 2.5% but is less than 0.0% of the employer’s average annual taxable payroll;
5.3% if such reserve exceeds minus 5.0% but is less than or equal to minus 2.5% of the employer’s average annual taxable payroll;
5.6% if such reserve exceeds minus 7.5% but is less than or equal to minus 5.0% of the employer’s average annual taxable payroll;
5.9% if such reserve exceeds minus 10.0% but is less than or equal to minus 7.5% of the employer’s average annual taxable payroll;
6.2% if such reserve is equal to or less than minus 10.0% of the employer’s average annual taxable payroll.
TABLE IV
1.3% if such reserve equals or exceeds 8.0% of the employer’s average annual taxable payroll;
1.7% if such reserve equals or exceeds 7.5% but is less than 8.0% of the employer’s average annual taxable payroll;
2.0% if such reserve equals or exceeds 7.0% but is less than 7.5% of the employer’s average annual taxable payroll;
2.3% if such reserve equals or exceeds 6.5% but is less than 7.0% of the employer’s average annual taxable payroll;
2.6% if such reserve equals or exceeds 6.0% but is less than 6.5% of the employer’s average annual taxable payroll;
2.8% if such reserve equals or exceeds 5.5% but is less than 6.0% of the employer’s average annual taxable payroll;
3.0% if such reserve equals or exceeds 5.0% but is less than 5.5% of the employer’s average annual taxable payroll;
3.2% if such reserve equals or exceeds 4.5% but is less than 5.0% of the employer’s average annual taxable payroll;
3.4% if such reserve equals or exceeds 4.0% but is less than 4.5% of the employer’s average annual taxable payroll;
3.6% if such reserve equals or exceeds 3.0% but is less than 4.0% of the employer’s average annual taxable payroll;
3.8% if such reserve equals or exceeds 1.5% but is less than 3.0% of the employer’s average annual taxable payroll;
4.0% if such reserve equals or exceeds 0.0% but is less than 1.5% of the employer’s average annual taxable payroll;
5.4% if such reserve exceeds minus 2.5% but is less than 0.0% of the employer’s average annual taxable payroll;
5.7% if such reserve exceeds minus 5.0% but is less than or equal to minus 2.5% of the employer’s average annual taxable payroll;
6.0% if such reserve exceeds minus 7.5% but is less than or equal to minus 5.0% of the employer’s average annual taxable payroll;
6.3% if such reserve exceeds minus 10.0% but is less than or equal to minus 7.5% of the employer’s average annual taxable payroll;
6.6% if such reserve is equal to or less than minus 10.0% of the employer’s average annual taxable payroll.
TABLE V
1.6% if such reserve equals or exceeds 8.0% of the employer’s average annual taxable payroll;
2.0% if such reserve equals or exceeds 7.5% but is less than 8.0% of the employer’s average annual taxable payroll;
2.3% if such reserve equals or exceeds 7.0% but is less than 7.5% of the employer’s average annual taxable payroll;
2.6% if such reserve equals or exceeds 6.5% but is less than 7.0% of the employer’s average annual taxable payroll;
2.9% if such reserve equals or exceeds 6.0% but is less than 6.5% of the employer’s average annual taxable payroll;
3.1% if such reserve equals or exceeds 5.5% but is less than 6.0% of the employer’s average annual taxable payroll;
3.3% if such reserve equals or exceeds 5.0% but is less than 5.5% of the employer’s average annual taxable payroll;
3.5% if such reserve equals or exceeds 4.5% but is less than 5.0% of the employer’s average annual taxable payroll;
3.7% if such reserve equals or exceeds 4.0% but is less than 4.5% of the employer’s average annual taxable payroll;
3.9% if such reserve equals or exceeds 3.0% but is less than 4.0% of the employer’s average annual taxable payroll;
4.1% if such reserve equals or exceeds 1.5% but is less than 3.0% of the employer’s average annual taxable payroll;
4.2% if such reserve equals or exceeds 0.0% but is less than 1.5% of the employer’s average annual taxable payroll;
5.8% if such reserve exceeds minus 2.5% but is less than 0.0% of the employer’s average annual taxable payroll;
6.1% if such reserve exceeds minus 5.0% but is less than or equal to minus 2.5% of the employer’s average annual taxable payroll;
6.4% if such reserve exceeds minus 7.5% but is less than or equal to minus 5.0% of the employer’s average annual taxable payroll;
6.7% if such reserve exceeds minus 10.0% but is less than or equal to minus 7.5% of the employer’s average annual taxable payroll;
7.0% if such reserve is equal to or less than minus 10.0% of the employer’s average annual taxable payroll.
TABLE VI
1.9% if such reserve equals or exceeds 8.0% of the employer’s average annual taxable payroll;
2.3% if such reserve equals or exceeds 7.5% but is less than 8.0% of the employer’s average annual taxable payroll;
2.6% if such reserve equals or exceeds 7.0% but is less than 7.5% of the employer’s average annual taxable payroll;
2.9% if such reserve equals or exceeds 6.5% but is less than 7.0% of the employer’s average annual taxable payroll;
3.2% if such reserve equals or exceeds 6.0% but is less than 6.5% of the employer’s average annual taxable payroll;
3.4% if such reserve equals or exceeds 5.5% but is less than 6.0% of the employer’s average annual taxable payroll;
3.6% if such reserve equals or exceeds 5.0% but is less than 5.5% of the employer’s average annual taxable payroll;
3.8% if such reserve equals or exceeds 4.5% but is less than 5.0% of the employer’s average annual taxable payroll;
4.0% if such reserve equals or exceeds 4.0% but is less than 4.5% of the employer’s average annual taxable payroll;
4.2% if such reserve equals or exceeds 3.0% but is less than 4.0% of the employer’s average annual taxable payroll;
4.3% if such reserve equals or exceeds 1.5% but is less than 3.0% of the employer’s average annual taxable payroll;
4.4% if such reserve equals or exceeds 0.0% but is less than 1.5% of the employer’s average annual taxable payroll;
6.2% if such reserve exceeds minus 2.5% but is less than 0.0% of the employer’s average annual taxable payroll;
6.5% if such reserve exceeds minus 5.0% but is less than or equal to minus 2.5% of the employer’s average annual taxable payroll;
6.8% if such reserve exceeds minus 7.5% but is less than or equal to minus 5.0% of the employer’s average annual taxable payroll;
7.1% if such reserve exceeds minus 10.0% but is less than or equal to minus 7.5% of the employer’s average annual taxable payroll;
7.4% if such reserve is equal to or less than minus 10.0% of the employer’s average annual taxable payroll.
(B) Except as otherwise provided in this section, whenever through inadvertence or mistake erroneous charges or credits are found to have been made to experience-rating accounts, the same shall be readjusted as of the date of discovery and such readjustment shall not affect any computation or rate assigned prior to the date of discovery but shall be used on the next computation date in calculating future contribution rates.
(C) Repealed.
(9) As used in this subsection:
(A) The term “annual payroll” means the total amount of wages for employment paid by an employer during a 12-month period ending 90 days prior to the computation date.
(B) The term “average annual payroll,” except for the purposes of paragraph (4)(C) of this subsection, means the average of the annual payrolls of any employer for the 3 consecutive 12-month periods ending 90 days prior to the computation date; provided, that for an employer whose account could have been charged with benefit payments throughout at least 12 but less than 36 consecutive calendar months ending on the computation date, the term “average annual payroll” means the total amount of wages for employment paid by him during the 12-month period ending 90 days prior to the computation date.
(C) The term “base-period wages” means the wages paid to an individual during his base period for employment.
(D) The term “base-period employers” means the employers by whom an individual was paid his base-period wages.
(E) The term “most recent employer” means that employer who last employed such individual immediately prior to such individual’s filing an initial claim for benefits.
(10) At least 1 month prior to the final date upon which the first contributions for any calendar year or part thereof become due from any employer at a contribution rate determined under this subsection, the Director shall notify such employer of his rate of contributions and of the benefit charges upon which such rate was based. Such determination shall become conclusive and binding upon the employer unless, within 30 days after the mailing of notice thereof to his last-known address, or in the absence of mailing, within 30 days after the delivery of such notice, the employer files an application for review and a redetermination, setting forth his reasons therefor. Upon receipt of such application, the Director shall voluntarily adjust such matter or shall grant an opportunity for a fair hearing and promptly notify the employer thereof. All such hearings shall be held before a Contribution Rate Review Committee composed of 3 members who shall be employees of the Director and appointed by the Director. The findings and decision of this Committee shall not be subject to review by the Office of the Inspector General. No employer shall have standing, in any proceeding involving his rate of contributions or contribution liability, to contest the chargeability of his account of any benefits paid in accordance with a determination, redetermination, or decision pursuant to § 51-111, except on the ground that the services on the basis of which such benefits were found to be chargeable do not constitute services performed in employment for him and only in the event that he was not a party to such determination, redetermination, or decision or to any other proceedings under this subchapter in which the character of such services was determined. The employer shall be promptly notified in writing of the Director’s denial of his application or of the Director’s redetermination. An employer aggrieved by the Director’s decision may seek review of such determination in the District of Columbia Court of Appeals in accordance with the District of Columbia Administrative Procedure Act.
(11) After December 31, 1971, the separate account established for an employer under the provisions of paragraph (1) of this subsection shall be discontinued effective the calendar quarter next succeeding 3 calendar years after the employer has been determined out of business. Thereafter no employer shall have any right to or interest in such discontinued account.
(d) The contributions payable pursuant to subsections (b) and (c) of this section shall become due and be paid by each employer to the Director, and shall not be deducted in whole or in part from the wages of individuals in such employer’s employ.
(e)(1) From December 31, 1939, to January 1, 1955, wages, for the purpose of this section, shall not include any amount in excess of $3,000 paid by an employer to any person arising out of his or her employment during any calendar year. From January 1, 1955, to December 31, 1971, wages shall not include any amount in excess of $3,000 actually paid by an employer to any person during any calendar year. From January 1, 1972, through December 31, 1977, inclusive, wages shall not include any amount in excess of $4,200. From January 1, 1978, through December 31, 1981, taxable wages shall not include any amount in excess of $6,000. For the purpose of determining employer contributions after January 1, 1982, the term “wages” shall not include any amount in excess of $7,500 (or in excess of the limitation on the amount of taxable wages fixed by the Federal Unemployment Tax Act (26 U.S.C. § 3306), whichever is greater) actually paid by an employer to any person during the calendar year. After December 31, 1954, the term “employment” for the purpose of this subsection shall include services constituting employment under any employment security law of a state or of the federal government. After December 31, 1971, the term “employment” for the purpose of this subsection shall include services constituting employment performed in the employ of a transferor as determined under the provisions of subsection (c)(7) of this section. For the purpose of determining employer contributions after January 1, 1983, the term “wages” shall not include any amount in excess of $8,000 (or in excess of the limitation on the amount of taxable wages fixed by the Federal Unemployment Tax Act (26 U.S.C. § 3306), whichever is greater) actually paid by an employer to any person arising out of employment during any calendar year.
(2) After January 1, 1993, the term “wages” shall not include any amount in excess of $9,000 actually paid to any person arising out of employment in any succeeding calendar year.
(3) After January 1, 1994, the term “wages” shall not include any amount in excess of $9,500 actually paid to any person arising out of employment in any succeeding calendar year; provided, however that should the balance in the Fund referred to in § 51-106 exceed $40 million as of September 30, 1993, then the term “wages” contained in paragraph (2) of this subsection shall be applicable.
(4) After January 1, 1995, the term “wages” shall not include any amount in excess of $10,000 actually paid to any person arising out of employment in any succeeding calendar year; provided, however, that should the balance in the Fund referred to in § 51-106 exceed $80 million as of September 30, 1994, then the term “wages” contained in paragraph (3) of this subsection shall be applicable; be it further provided, however, that if the term “wages” has the same meaning as in paragraph (2) of this subsection as of December 31, 1994, then the term “wages” shall not include any amount in excess of $9,500 actually paid to any person arising out of employment in any succeeding calendar year.
(5) After January 1, 1996, the term “wages” shall not include any amount in excess of $10,000 actually paid to any person arising out of employment in any succeeding calendar year; provided, however, that should the balance in the Fund referred to in § 51-106 exceed $120 million as of September 30, 1995, then the term “wages” contained in paragraph (4) of this subsection shall be applicable.
(6) After January 1, 1997, the term “wages” shall not include any amount in excess of $9,000 actually paid to any person arising out of employment in 1997 or in any succeeding calendar year.
(f)(1)(A) If the District elects to cover employees under this subchapter under the provisions of § 51-101(2)(H)(i), or if any of its instrumentalities are required to be covered under this subchapter, in lieu of contributions required of employers under this subchapter, the District shall pay into the Fund an amount equivalent to the amount of benefits paid to individuals based on wages paid by the District.
(B) In lieu of contributions required of employers under this subchapter, a government entity or instrumentality that would otherwise be liable for contributions pursuant to § 51-101(2)(A)(ii) may pay into the Fund an amount equivalent to the amount of benefits paid to individuals based on wages paid by the government entity or instrumentality.
(C) If benefits paid to an individual are based on wages paid by the District, or another government entity or instrumentality, and one or more other employers, the amount payable by the District or other government entity or instrumentality to the Fund shall bear the same ratio to total benefits paid to the individual as the base-period wages paid to the individual by the District or other government entity or instrumentality bears to the total amount of the base-period wages paid to the individual by all of his base-period employers.
(2) The amount of payment required under this section shall be ascertained by the Director quarterly and, with respect to the District, shall be paid from the general funds of the District at such time and in such manner as the Mayor of the District may prescribe except that to the extent that benefits are paid on wages paid by the District from special administrative funds, the payment by the District into the Unemployment Fund shall be made from such special funds. The District shall be liable only for 50% of any extended benefits paid.
(3) After December 31, 1977, the District or any government entity or instrumentality liable for contributions pursuant to § 51-101(2)(A)(ii) shall be provided the option of financing the costs of benefits paid to its employees by electing to pay contributions under the provisions of subsection (c) of this section or by electing to become liable for payments in lieu of contributions under the same terms and conditions provided for nonprofit organizations in subsection (h) of this section, except as provided in the following sentence. For weeks of unemployment beginning January 1, 1979, and thereafter, the District or any government entity or instrumentality liable for contributions pursuant to § 51-101(2)(A)(ii) shall be chargeable if it elects to pay contributions, or shall be liable if it elects to make payments in lieu of contributions, for the cost of regular benefits plus 100% of any extended benefits paid that are attributable to service in the employ of the District or respective governmental entity or instrumentality.
(g) Contributions due under this subchapter with respect to wages for insured work shall, for the purpose of this section, be deemed to have been paid to the Fund as of the date payment was made as contributions therefor under another state or federal employment security law if payment into the Fund of such contributions is made on such terms as the Director finds will be fair and reasonable as to all affected interests; provided, that liability to the Fund shall not exceed contributions for the 3 calendar years next preceding the quarter in which liability was determined. Payments to the Fund under this subsection shall be deemed to be contributions for purposes of this section.
(h) Notwithstanding any other provisions of this section, benefits paid to employees of nonprofit organizations shall be financed in accordance with the provisions of this subsection. For the purpose of this subsection and subsection (i) of this section, a nonprofit organization is an organization (or group of organizations) described in § 501(c)(3) of the Internal Revenue Code of 1954 which is exempt from income tax under § 501(a) of such Code.
(1) Any nonprofit organization which, pursuant to § 51-101(2)(A)(iii), is, or becomes, subject to this subchapter on or after January 1, 1972, shall pay contributions under the provisions of subsection (c) of this section, unless it elects, in accordance with this paragraph to pay to the Director for the District Unemployment Fund an amount equal to the amount of regular benefits plus one-half of the amount of extended benefits paid that is attributable to service in the employ of such nonprofit organization, to individuals for weeks of unemployment which begin during the effective period of such election.
(A) Any nonprofit organization which is, or becomes, subject to this subchapter on January 1, 1972, may elect to become liable for payments in lieu of contributions for a period of not less than 1 taxable year beginning with January 1, 1972; provided, that it files with the Director a written notice of its election within the 30-day period immediately following such date or within a like period immediately following the date of enactment of this subparagraph whichever occurs later.
(B) Any nonprofit organization which becomes subject to this subchapter after January 1, 1972, may elect to become liable for payments in lieu of contributions for a period of not less than the remainder of that and the next year beginning with the date on which such liability begins by filing a written notice of its election with the Director not later than 30 days immediately following the date of the determination of such liability.
(C) Any nonprofit organization which makes an election in accordance with subparagraph (A) or subparagraph (B) of this paragraph will continue to be liable for payments in lieu of contributions until it files with the Director a written notice terminating its election not later than 30 days prior to the beginning of the taxable year for which such termination shall first be effective.
(D) Any nonprofit organization which has been paying contributions under this subchapter for a period subsequent to January 1, 1972, may change to a reimbursable basis by filing with the Director not later than 30 days prior to the beginning of any taxable year a written notice of election to become liable for payments in lieu of contributions. Such election shall not be terminal by the organization for that and the next year.
(E) The Director may for good cause extend the period within which a notice of election, or a notice of termination, must be filed and may permit an election to be retroactive but not any earlier than with respect to benefits paid after December 31, 1969.
(F) The Director shall notify each nonprofit organization of any determination which the Director may make of its status as an employer and of the effective date of any election which it makes and of any termination of such election. Such determinations shall be subject to reconsideration, appeal and review in accordance with the provisions of subsection (c) of this section.
(G) Any nonprofit organization which elects to make payments in lieu of contributions into the District Unemployment Compensation Fund as provided in this paragraph shall not be liable to make such payments with respect to the benefits paid to any individual whose base-period wages include wages for previously uncovered services as defined in § 51-101(3)(c) to the extent that the Unemployment Compensation Fund is reimbursed for such benefits pursuant to § 121 of the Unemployment Compensation Amendments of 1976 (26 U.S.C. § 3304, note).
(2) Payments in lieu of contributions shall be made in accordance with the provisions of this paragraph including either subparagraph (A) or subparagraph (B) of this paragraph.
(A) At the end of each calendar quarter, or at the end of any other period as determined by the Director, the Director shall bill each nonprofit organization (or group of such organizations) which has elected to make payments in lieu of contributions for an amount equal to the full amount of regular benefits plus one-half of the amount of extended benefits paid that is attributable to service in the employ of such organization.
(B)(i) Each nonprofit organization that has elected payments in lieu of contributions may request permission to make such payments as provided in this subparagraph. Such method of payment shall become effective upon approval by the Director.
(ii) At the end of each calendar quarter, or at the end of such other period as determined by the Director, the Director shall bill each nonprofit organization for an amount representing 1 of the following:
(I) For 1972, one-fourth of 1% of its total payroll for 1971;
(II) For years after 1972, such percentage of its total payroll for the immediately preceding calendar year as the Director shall determine. Such determination shall be based each year on the average benefit costs attributable to service in the employ of nonprofit organizations during the preceding calendar year;
(III) For any organization which did not pay wages throughout the 4 calendar quarters of the preceding calendar year, such percentage of its payroll during such year as the Director shall determine.
(iii) At the end of each taxable year, the Director may modify the quarterly percentage of payroll thereafter payable by the nonprofit organization in order to minimize excess or insufficient payments.
(iv) At the end of each taxable year, the Director shall determine whether the total of payments for such year made by a nonprofit organization is less than, or in excess of, the total amount of regular benefits plus one-half of the amount of extended benefits paid to individuals during such taxable year based on wages attributable to service in the employ of such organization. Each nonprofit organization whose total payments for such year are less than the amount so determined shall be liable for payment of the unpaid balance to the fund in accordance with subparagraph (C) of this paragraph. If the total payments exceed the amount so determined for the taxable year, all or a part of the excess may, at the discretion of the Director, be refunded from the Fund or retained in the Fund as part of the payments which may be required for the next taxable year.
(C) Payment of any bill rendered under subparagraph (A) or subparagraph (B) of this paragraph shall be made not later than 30 days after such bill was mailed to the last-known address of the nonprofit organization or was otherwise delivered to it, unless there has been an application for review and redetermination in accordance with subparagraph (E) of this paragraph.
(D) Payments made by a nonprofit organization under the provisions of this subsection shall not be deducted or deductible, in whole or in part, from the remuneration of individuals in the employ of the organization.
(E) The amount due specified in any bill from the Director shall be conclusive on the organization unless, not later than 15 days after the bill was mailed to its last-known address or otherwise delivered to it, the organization files an application for redetermination by the Director, setting forth the grounds for such application or appeal. The Director shall promptly review and reconsider the amount due specified in the bill and shall thereafter issue a redetermination in any case in which such application for redetermination has been filed. Any such redetermination shall be conclusive on the organization unless the organization files an appeal as set forth in subsection (c)(10) of this section, setting forth the grounds for the appeal.
(F) Past due payments of amounts in lieu of contributions shall be subject to the same interest and penalties that, pursuant to § 51-104(c), apply to past due contributions.
(3) In the discretion of the Director, any nonprofit organization that elects to become liable for payments in lieu of contributions shall be required within 30 days after the effective date of its election, to execute and file with the Director a surety bond approved by the Director, or it may elect instead to deposit with the Director money. The amount of such bond or deposit shall be determined in accordance with the provisions of this paragraph.
(A) The amount of the bond or deposit required by this paragraph shall be equal to one-fourth of 1% of the organization’s total wages paid for employment as defined in § 51-101(2)(A)(iii) for the 4 calendar quarters immediately preceding the effective date of the election, the renewal date in the case of a bond, or the biennial anniversary of the effective date of election in the case of a deposit of money, whichever date shall be most recent and applicable. If the nonprofit organization did not pay wages in each of such 4 calendar quarters, the amount of the bond or deposit shall be as determined by the Director.
(B) Any bond deposited under this paragraph shall be in force for a period of not less than 2 taxable years and shall be renewed with the approval of the Director at such times as the Director may prescribe, but not less frequently than at 2-year intervals as long as the organization continues to be liable for payments in lieu of contributions. The Director shall require adjustments to be made in a previously filed bond as he deems appropriate. If the bond is to be increased, the adjusted bond shall be filed by the organization within 15 days of the date notice of the required adjustment was mailed or otherwise delivered to it. Failure by any organization covered by such bond to pay the full amount of payments in lieu of contributions when due, together with any applicable interest and penalties provided for in § 51-104(c), shall render the surety liable on said bond to the extent of the bond, as though the surety was such organization.
(C) Any deposit of money in accordance with this paragraph shall be retained by the Director in an escrow account until liability under the election is terminated, at which time it shall be returned to the organization, less any deductions as hereinafter provided. The Director may deduct from the money deposited under this paragraph by a nonprofit organization to the extent necessary to satisfy any due and unpaid payments in lieu of contributions and any applicable interest and penalties provided for in § 51-104(c). The Director shall require the organization within 15 days following any deduction from a money deposit under the provisions of this subparagraph to deposit sufficient additional money to make whole the organization’s deposit at the prior level. The Director may, at any time, review the adequacy of the deposit made by any organization. If, as the result of such review, he determines that an adjustment is necessary, he shall require the organization to make additional deposit within 15 days of written notice of his determination or shall return to it such portion of the deposit as he no longer considers necessary, whichever action is appropriate.
(D) If any nonprofit organization fails to file a bond or make a deposit, or to file a bond in an increased amount or to increase or make whole the amount of a previously made deposit, as provided under this paragraph, the Director may terminate such organization’s election to make payments in lieu of contributions and such termination shall continue for not less than the 4-consecutive-calendar-quarter period beginning with the quarter in which such termination becomes effective; provided, that the Director may extend for good cause the applicable filing, deposit or adjustment period by not more than 15 days.
(4) If any nonprofit organization is delinquent in making payments in lieu of contributions as required under paragraph (2) of this subsection, the Director may terminate such organization’s election to make payments in lieu of contributions as of the beginning of the next taxable year, and such termination shall be effective for that and the next taxable year.
(5) Each employer that is liable for payments in lieu of contributions shall pay to the Director for the fund the amount of regular benefits plus one-half of the amount of extended benefits paid that are attributable to service in the employ of such employer. If benefits paid to an individual are based on wages paid by more than 1 employer and 1 or more of such employers are liable for payments in lieu of contributions, the amount payable to the Fund by each employer that is liable for such payments shall be determined in accordance with the provisions of subparagraph (A) or subparagraph (B) of this paragraph.
(A) If benefits paid to an individual are based on wages paid by 1 or more employers that are liable for payments in lieu of contributions and on wages paid by 1 or more employers who are liable for contributions, the amount of benefits payable by each employer that is liable for payments in lieu of contributions shall be an amount which bears the same ratio to the total benefits paid to the individual as the total base-period wages paid to the individual by such employer bear to the total base-period wages paid to the individual by all of his base-period employers.
(B) If benefits paid to an individual are based on wages paid by 2 or more employers that are liable for payments in lieu of contributions, the amount of benefits payable by each such employer shall be an amount which bears the same ratio to the total benefits paid to the individual as the total base-period wages paid to the individual by such employer bear to the total base-period wages paid to the individual by all of his base-period employers.
(6) Two or more employers that have become liable for payments in lieu of contributions, in accordance with the provisions of subsection (h)(1) of this section, may file a joint application to the Director for the establishment of a group account for the purpose of sharing the cost of benefits paid that are attributable to service in the employ of such employers. Each such application shall identify and authorize a group representative to act as the group’s agent for the purposes of this paragraph. Upon approval of the application, the Director shall establish a group account for such employers effective as of the beginning of the calendar quarter in which it receives the application and shall notify the group’s representative of the effective date of the account. Such account shall remain in effect for not less than 2 years and thereafter until terminated at the discretion of the Director or upon application by the group. Upon establishment of the account, each member of the group shall be liable for payments in lieu of contributions with respect to each calendar quarter in the amount that bears the same ratio to the total benefits paid in such quarter that are attributable to service performed in the employ of all members of the group as the total wages paid for service in employment by such member in such quarter bear to the total wages paid during such quarter for service performed in the employ of all members of the group. The Director shall prescribe such regulations as he deems necessary with respect to applications for establishment, maintenance, and termination of group accounts that are authorized by this paragraph, for addition of new members to, and withdrawal of active members from, such accounts, and for the determination of the amounts that are payable under this paragraph by members of the group and the time and manner of such payments.
(i) Notwithstanding any provisions in subsection (h) of this section, any nonprofit organization that prior to January 1, 1969, paid contributions required by subsection (c) of this section and, pursuant to subsection (h) of this section, elects within 30 days after January 1, 1972, to make payments in lieu of contributions, shall not be required to make any such payment on account of any benefits paid, on the basis of wages paid by such organization to individuals for weeks of unemployment which began on or after the effective date of such election until the total amount of such benefits equals the amount of the positive balance in the experience rating account of such organization.
(j) Notwithstanding any of the provisions of this subchapter, no employer’s experience rating account shall be charged and no employer shall be liable for payments in lieu of contributions with respect to extended benefit payments which are wholly reimbursed to the District of Columbia by the federal government.
(k) Notwithstanding any provisions of this subchapter, no employer’s experience rating account shall be charged with respect to benefits paid to any individual whose base-period wages include wages for previously uncovered services as defined in § 51-101(3)(C) to the extent that the Unemployment Insurance Fund is reimbursed for such benefits pursuant to § 121 of the Unemployment Compensation Amendments of 1976 (26 U.S.C. § 3304, note).
(l)(1) Commencing January 1, 1992, an interest surcharge of 0.1% shall be added to the contribution rate of each employer required to pay contributions by this subchapter, excepting those reimbursing employers subject to the requirements of subsection (h) of this section.
(2) All interest surcharges collected under this subsection shall be considered separate from contributions required by subsection (c) of this section and shall be deposited in the Interest Account established by § 51-114(c) and shall not be credited to the individual accounts of employers.
(3) No interest surcharge shall be required for any year following the year in which the amount of interest-bearing advances has been reduced to zero; provided, however, that an interest surcharge shall be reimposed by the Director of the Department of Employment Services (“Director”) for the calendar year following any year in which an interest-bearing advance remains outstanding on October 1 and where there are not sufficient funds in the Interest Account to pay the interest due for that year.
(m)(1) Commencing January 1, 2006, an administrative funding assessment of 0.2% of all wages as defined in subsection (e)(6) of this section shall be paid by all employers liable for contributions required by subsections (b) and (c) of this section and by all employers liable for payments in lieu of contributions required by subsection (h) of this section. The administrative funding assessment shall be paid quarterly, but shall be separate and distinct from contributions or payments in lieu of contributions.
(2) All administrative funding assessment payments collected shall be deposited into the Unemployment and Workforce Development Administrative Fund established by § 51-114(d) and shall not be credited to the accounts of individual employers.
(3) Repealed.
(4)(A) For calendar quarters commencing after September 30, 2007, if the administrative funding assessments required by paragraph (1) of this subsection are not paid when due, there shall be added thereto interest at the rate of 1.5% per month, or fraction thereof, from the date the assessments became due until paid. Interest shall not be charged to a court-appointed fiduciary when the assessment payments are not paid timely because of a court order.
(B) If an administrative funding assessment is not paid on or before the first day of the second month following the close of the calendar quarter for which it is due, there shall be added a penalty of 10% of the amount due. The penalty shall not be less than $100; provided, that for good cause shown, the penalty may be waived by the Director of the Department of Employment Services.
(n) Notwithstanding any other provision of this subchapter, all assignments of contribution rates and transfers of experience in any year commencing after December 31, 2005 shall be made in accordance with the following:
(1) If an employer transfers all or a portion of its trade or business to another employer and, at the time of transfer, there exists any common ownership, management, or control of the 2 employers, the unemployment experience for the trade or business shall be transferred to the employer receiving the trade or business. The contribution rates of both employers shall be recalculated and made effective on the 1st day of the next rating year. Any penalties that may be imposed on the transfer under § 51-104 shall be retroactive to the beginning of the year in which the transfer occurred.
(2) If a person is not subject to this subchapter at the time it acquires the trade or business of an employer subject to this subchapter, the unemployment experience of that trade or business shall not be transferred if the Director determines that the acquisition was solely or primarily for purpose of obtaining a lower contribution rate. In such event, the person shall be assigned a new employer rate under subsection (c)(3)(A) of this section. The Director shall use objective criteria to determine whether the trade or business was acquired solely or primarily for the purpose of obtaining a lower contribution rate, including:
(A) The cost of acquiring the trade or business enterprise;
(B) Whether the trade or business was continued by the person after acquisition;
(C) The length of time that the trade or business was continued; and
(D) Whether a substantial number of new employees were hired to perform duties unrelated to the trade or business activity prior to the acquisition.
(3) The Director shall establish procedures to identify the transfer or acquisition of a trade or business for the purposes of this subchapter.
(Aug. 28, 1935, 49 Stat. 947, ch. 794, § 3; July 2, 1940, 54 Stat. 731, ch. 524, § 1; Nov. 21, 1941, 55 Stat. 781, ch. 500, § 1; Nov. 9, 1942, 56 Stat. 1016, ch. 636; June 4, 1943, 57 Stat. 105, ch. 117, § 1; July 11, 1946, 60 Stat. 527, ch. 557; July 26, 1947, 61 Stat. 494, ch. 342, §§ 1, 2; June 25, 1948, 62 Stat. 991, ch. 646, § 32(b); May 24, 1949, 63 Stat. 107, ch. 139, § 127; Aug. 31, 1954, 68 Stat. 989, ch. 1139, § 1; Mar. 30, 1962, 76 Stat. 47, Pub. L. 87-424, §§ 3-5; Sept. 27, 1962, 76 Stat. 633, Pub. L. 87-705, § 1; July 29, 1970, 84 Stat. 572, Pub. L. 91-358, title I, § 155(c)(44)(A); Dec. 22, 1971, 85 Stat. 760, Pub. L. 92-211, § 2(14)-(26); Dec. 7, 1974, 88 Stat. 1617, Pub. L. 93-515, title III, § 301(1); May 13, 1975, D.C. Law 1-2, § 1(1), 21 DCR 3941; Mar. 3, 1979, D.C. Law 2-129, § 2(h)-(q), 25 DCR 2451; Mar. 16, 1982, D.C. Law 4-86, § 2(a), (b), 29 DCR 429; Sept. 17, 1982, D.C. Law 4-147, § 2(a)-(d), 29 DCR 3347; May 7, 1983, D.C. Law 5-3, § 2(a)-(h), 30 DCR 1371; Aug. 10, 1984, D.C. Law 5-102, § 2(b), 31 DCR 2902; Mar. 13, 1985, D.C. Law 5-124, §§ 2(a)(1), (a)(2), (b), 4, 31 DCR 5165; Feb. 24, 1987, D.C. Law 6-189, § 2, 33 DCR 7935; Mar. 16, 1988, D.C. Law 7-91, § 2(a), 35 DCR 712; Mar. 16, 1993, D.C. Law 9-200, § 2(a), 39 DCR 9217; Sept. 24, 1993, D.C. Law 10-15, §§ 102, 203, 40 DCR 5420; May 16, 1995, D.C. Law 10-255, §§ 39(b), 49(d), 41 DCR 5193; Mar. 26, 1999, D.C. Law 12-175, § 202(a), 45 DCR 7193; Oct. 20, 2005, D.C. Law 16-33, § 2042(a), 52 DCR 7503; Mar. 2, 2007, D.C. Law 16-191, § 97, 53 DCR 6794; Mar. 8, 2007, D.C. Law 16-233, § 2(a), 54 DCR 374; Sept. 18, 2007, D.C. Law 17-20, § 2042(a), 54 DCR 7052; Mar. 3, 2010, D.C. Law 18-111, § 1011, 57 DCR 181; Sept. 24, 2010, D.C. Law 18-223, §§ 2192(a), 2202(a), 57 DCR 6242; Sept. 20, 2012, D.C. Law 19-168, § 2002(a), 59 DCR 8025; Dec. 24, 2013, D.C. Law 20-61, § 2042, 60 DCR 12472; May 2, 2015, D.C. Law 20-271, § 268(b), 62 DCR 1884; Mar. 16, 2021, D.C. Law 23-210, § 2(b), 67 DCR 14763; Nov. 13, 2021, D.C. Law 24-45, § 4162(a), 68 DCR 010163; July 12, 2022, D.C. Law 24-147, § 173, 69 DCR 003386.)
Prior Codifications
1981 Ed., § 46-103.
1973 Ed., § 46-303.
Section References
This section is referenced in § 51-104, § 51-106, § 51-113, § 51-117, and § 51-133.
Effect of Amendments
D.C. Law 16-33 added subsec. (m).
D.C. Law 16-191, in subsec. (m)(1), substituted “of .2%” for “of 2%”.
D.C. Law 16-233, in subsec. (c)(7)(A), substituted “After December 31, 2005, if any employer transfers all or a portion of its trade or business to another employer” for “If all or substantially all of the business of any employer is transferred” in the lead-in language, substituted “what portion” for “whether or not all or substantially all” in sub-subpar. (i), and substituted “a portion” for “all or substantially all” in sub-subpar. (ii); and added subsec. (n).
D.C. Law 17-20, in subsec. (m)(3), substituted “commencing after December 31, 2008, the assessment rate for the next calendar year” for “, the assessment rate for the calendar year commencing after January 1 of the following calendar year”; and added subsec. (m)(4).
D.C. Law 18-111, in subsec. (m)(3), substituted “December 31, 2013” for “December 31, 2008”.
D.C. Law 18-223, in subsec. (m)(2), substituted “Unemployment and Workforce Development Administrative Fund” for “Administrative Assessment Account”; and repealed subsec. (m)(3), which had read as follows: “(3) If the amount collected from the administrative funding assessment exceeds $4 million in any calendar year commencing after December 31, 2013, the assessment rate for the next calendar year shall be adjusted so as to yield tax revenue not exceeding $4 million.”
The 2012 amendment by D.C. Law 19-168 repealed (c)(8)(C).
The 2013 amendment by D.C. Law 20-61 added (c)(2)(F).
The 2015 amendment by D.C. Law 20-271 deleted “in accordance with such regulations as the Board may prescribe” following “Director” in (d) and (h)(1)(F); and substituted “Director” for “Board” in (h)(4).
Cross References
Judicial review by District of Columbia Court of Appeals, see § 2-510.
Expiration of Law
Expiration of Law 5-3
Section 4 of D.C. Law 5-3, as amended by § 4 of D.C. Law 5-124, provided that except for provisions of § 2(a), (b), (d), (f)(2), (g), (h), (j), (l)(3), (m), (n), (o), (p), (q), (r), and (s), the act shall expire on December 31, 1985.
Emergency Legislation
For temporary (90 days) amendment of this section, see § 4162(a) of Fiscal Year 2022 Budget Support Emergency Act of 2021 (D.C. Act 24-159, Aug. 23, 2021, 68 DCR 008602).
For temporary (90 days) amendment of this section, see § 102(b) of Coronavirus Support Congressional Review Emergency Amendment Act of 2021 (D.C. Act 24-96, June 7, 2021, 68 DCR 006025).
For temporary (90 days) amendment of this section, see § 102(b) of Coronavirus Support Emergency Amendment Act of 2021 (D.C. Act 24-30, Mar. 17, 2021, 68 DCR 003101).
For temporary (90 days) amendment of this section, see § 102(b) of Coronavirus Support Second Congressional Review Emergency Amendment Act of 2020 (D.C. Act 23-405, Aug. 19, 2020, 67 DCR 10235).
For temporary (90 days) amendment of this section, see § 102(b) of Coronavirus Support Congressional Review Emergency Amendment Act of 2020 (D.C. Act 23-328, June 8, 2020, 67 DCR 7598).
For temporary (90 days) amendment of this section, see § 102(b) of Coronavirus Support Emergency Amendment Act of 2020 (D.C. Act 23-326, May 27, 2020, 67 DCR 7045).
For temporary amendment of section, see § 2(a) of the Unemployment Compensation Tax Stabilization Emergency Amendment Act of 1997 (D.C. Act 12-1, January 23, 1997, 44 DCR 1469), § 2(a) of the Unemployment Compensation Tax Stabilization Second Emergency Amendment Act of 1997 (D.C. Act 12-247, January 13, 1998, 45 DCR 767), § 2(a) of the Unemployment Compensation Tax Stabilization Congressional Review Emergency Amendment Act of 1998 (D.C. Act 12-303, March 20, 1998, 45 DCR 1895), § 2(a) of the Unemployment Compensation Tax Stabilization Second Congressional Review Emergency Amendment Act of 1998 (D.C. Act 12-521, December 9, 1998, 46 DCR 2102), and § 2(a) of the Unemployment Compensation Tax Stabilization Congressional Review Emergency Amendment Act of 1999 (D.C. Act 13-27, March 15, 1999, 46 DCR 2983).
For temporary (90-day) amendment of section, see § 2(a) of the Unemployment Compensation Tax Stabilization Congressional Review Emergency Amendment Act of 1999 (D.C. Act 13-27, March 15, 1999, 46 DCR 2983).
For temporary (90 day) amendment of section, see § 2(b) of Unemployment Compensation Terrorist Response Emergency Amendment Act of 2001 (D.C. Act 14-157, October 25, 2001, 48 DCR 10219).
For temporary (90 day) amendment of section, see § 2(b) of Unemployment Compensation Terrorist Response Congressional Review Emergency Amendment Act of 2001 (D.C. Act 14-215, December 21, 2001, 49 DCR 382).
For temporary (90 day) amendment of section, see § 2(b) of Unemployment Compensation Terrorist Response Emergency Amendment Act of 2002 (D.C. Act 14-346, April 24, 2002, 49 DCR 4407).
For temporary (90 day) amendment of section, see § 2042(a) of Fiscal Year 2006 Budget Support Emergency Act of 2005 (D.C. Act 16-168, July 26, 2005, 52 DCR 7667).
For temporary (90 day) amendment of section, see § 2(a) of Unemployment Compensation Contributions Federal Conformity Emergency Amendment Act of 2006 (D.C. Act 16-286, February 27, 2006, 53 DCR 1639).
For temporary (90 day) amendment of section, see § 2(a) of Unemployment Compensation Contributions Federal Conformity Congressional Review Emergency Amendment Act of 2006 (D.C. Act 16-334, March 23, 2006, 53 DCR 2599).
For temporary (90 day) amendment of section, see § 2(a) of Unemployment Compensation Contributions Federal Conformity Congressional Review Emergency Amendment Act of 2006 (D.C. Act 16-662, December 28, 2006, 54 DCR 1116).
For temporary (90 day) amendment of section, see § 2042(a) of Fiscal Year 2008 Budget Support Emergency Act of 2007 (D.C. Act 17-74, July 25, 2007, 54 DCR 7549).
For temporary (90 day) amendment of section, see § 1011 of Fiscal Year 2010 Budget Support Second Emergency Act of 2009 (D.C. Act 18-207, October 15, 2009, 56 DCR 8234).
For temporary (90 day) amendment of section, see § 1011 of Fiscal Year Budget Support Congressional Review Emergency Amendment Act of 2009 (D.C. Act 18-260, January 4, 2010, 57 DCR 345).
For temporary (90 day) amendment of section, see §§ 2192, 2202(a) of Fiscal Year 2011 Budget Support Emergency Act of 2010 (D.C. Act 18-463, July 2, 2010, 57 DCR 6542).
For temporary (90 day) amendment of section, see § 2002(a) of Fiscal Year 2013 Budget Support Emergency Act of 2012 (D.C. Act 19-383, June 19, 2012, 59 DCR 7764).
For temporary (90 day) amendment of section, see § 2002(a) of Fiscal Year 2013 Budget Support Congressional Review Emergency Act of 2012 (D.C. Act 19-413, July 25, 2012, 59 DCR 9290).
For temporary (90 days) amendment of this section, see § 2042 of the Fiscal Year 2014 Budget Support Emergency Act of 2013 (D.C. Act 20-130, July 30, 2013, 60 DCR 11384, 20 DCSTAT 1827).
For temporary (90 days) amendment of this section, see § 2042 of the Fiscal Year 2014 Budget Support Congressional Review Emergency Act of 2013 (D.C. Act 20-204, October 17, 2013, 60 DCR 15341, 20 DCSTAT 2311).
For temporary (90 days) amendment of this section, see § 268(b) of the New Columbia Statehood Initiative, Omnibus Boards and Commissions, and Election Transition Reform Emergency Amendment Act of 2014 (D.C. Act 20-481, Nov. 18, 2014, 61 DCR 12133, 20 STAT 4405).
For temporary (90 days) amendment of this section, see § 268(b) of the New Columbia Statehood Initiative, Omnibus Boards and Commissions, and Election Transition Reform Congressional Review Emergency Amendment Act of 2015 (D.C. Act 21-7, Feb. 26, 2015, 62 DCR 2646, 21 STAT 807).
Temporary Legislation
For temporary (225 days) amendment of this section, see § 102(b) of Coronavirus Support Temporary Amendment Act of 2021 (D.C. Law 24-9, June 24, 2021, 68 DCR 004824).
For temporary (225 days) amendment of this section, see § 102(b) of Coronavirus Support Temporary Amendment Act of 2020 (D.C. Law 23-130, Oct. 9, 2020, 67 DCR 8622).
For temporary (225 day) amendment of section, see § 2 of District of Columbia Unemployment Compensation Act Temporary Amendment Act of 1986 (D.C. Law 6-122, June 19, 1986, law notification 33 DCR 3926).
For temporary (225 day) amendment of section, see § 2(a) of District of Columbia Unemployment Compensation Act Temporary Amendment Act of 1992 (D.C. Law 9-89, April 8, 1992, law notification 40 DCR __).
For temporary (225 day) amendment of section, see § 102 of District of Columbia Unemployment Compensation Comprehensive Improvements Temporary Amendment Act of 1992 (D.C. Law 9-260, March 27, 1993, law notification 40 DCR 2330).
For temporary (225 day) amendment of section, see § 2(a) of District of Columbia Unemployment Compensation Tax Stabilization Temporary Amendment Act of 1997 (D.C. Law 12-2, May 7,1997, law notification 44 DCR 2988).
For temporary (225 day) amendment of section, see § 2(a) of Unemployment Compensation Tax Stabilization Second Temporary Amendment Act of 1998 (D.C. Law 12-95, April 30, 1998, law notification 45 DCR 2786).
For temporary (225 day) amendment of section, see § 2(b) of Unemployment Compensation Terrorist Response Temporary Amendment Act of 2001 (D.C. Law 14-75, March 6, 2002, law notification 49 DCR 2809).
For temporary (225 day) amendment of section, see § 2(b) of Unemployment Compensation Terrorist Response Temporary Amendment Act of 2002 (D.C. Law 14-171, July 23, 2002, law notification 49 DCR __).
For temporary (225 day) amendment of section, see § 2(a) of Unemployment Compensation Contributions Federal Conformity Temporary Amendment Act of 2006 (D.C. Law 16-121, June 6, 2006, law notification 53 DCR 5359).
Short Title
Short title of subtitle E of title II of Law 16-33: Section 2041 of D.C. Law 16-33 provided that subtitle E of title II of the act may be cited as the Unemployment Compensation Administrative Funding Assessment Amendment Act of 2005.
Short title: Section 2041 of D.C. Law 17-20 provided that subtitle E of title II of the act may be cited as the “Unemployment Compensation Administration Improvement Amendment Act of 2007”.
Short title: Section 1010 of D.C. Law 18-111 provided that subtitle B of title I of the act may be cited as the “Unemployment Compensation Modernization Amendment Act of 2009”.
Short title: Section 2201 of D.C. Law 18-223 provided that subtitle Q of title II of the act may be cited as the “Unemployment and Workforce Development Administrative Assessment Account Amendment Act of 2010”.
Section 2041 of D.C. Law 20-61 provided that Subtitle E of Title II of the act may be cited as the “Unemployment Compensation Benefit Charges Federal Conformity Amendment Act of 2013”.
References in Text
The District of Columbia Administrative Procedure Act, referred to in paragraph (c)(10), is Chapter 5 of Title 2.
Section 501 of the Internal Revenue Code of 1954, referred to in subsection (h), is codified as 26 U.S.C. § 501.
Effective Dates
Section 3(b) of D.C. Law 7-91 provided that the amendments to §§ 51-103 and 51-107 shall be effective beginning January 1, 1988.
Editor's Notes
Application of Law 16-233: Section 3 of D.C. Law 16-233 provided that the act shall apply as of January 19, 2007.
Expiration of former Table IV minimum rate: Section 2(a)(3) of D.C. Law 5-124 provided that the 0.8% minimum rate contained in Table IV shall expire on December 31, 1987. Table IV, which was set forth in (c)(8)(A), was deleted by D.C. Law 7-91.
Section 2192(b) of D.C. Law 18-223 provided: “(b) This section shall apply as of October 20, 2005.”
Applicability of D.C. Law 20-61: Section 11001 of D.C. Law 20-61 provided that, except as otherwise provided, the act shall apply as of October 1, 2013.