STATEMENT OF BASIS AND PURPOSE
FOR A PROPOSED PERMaNENT RULE
Effective August 30, 2009

1.	Summary of the basis and purpose for the rule or rule change 

The basis and purpose for the proposed rules is to administer changes to the law.  The adoption of the proposed rules is necessary to comply with the law and for the economic welfare of the people of the state of Colorado.

Senate Bill 09-178, Unemployment Insurance Attached to Regular Jobs

Senate Bill 09-178 requires the division to extend the waiver of the requirements to register for work and report to an employment office, as a condition of being eligible to receive unemployment insurance (UI) benefits for claimants who are job-attached.

The amendment to relevant parts of the Regulations Concerning Employment Security (RCES) is necessary to implement the provisions of the new law.

Senate Bill 09-258, Employee Leasing Company Acts by CDLE

Senate Bill 09-258 makes employee-leasing companies responsible for the payment of UI premiums but gives them the option of reporting and paying the premiums as the employing unit or under the accounts of the work-site employers.

The amendment to relevant parts of the RCES is necessary to implement the provisions of the new law.

House Bill 09-1054, UI Award Military Death Surviving Spouse

House Bill 09-1054 extends UI benefits to the surviving working spouses of military personnel who live in Colorado, have a spouse who is stationed in Colorado and is killed in combat operations, and relocates to a new place of residence from which it is impractical to commute to the same job.  

The amendment to relevant parts of the RCES is necessary to implement the provisions of the new law.

House Bill 09-1076, Remuneration from Employment Separation

House Bill 09-1076 treats all remuneration paid to a person because of a separation from employment the same for the purpose of calculating the postponement of UI benefits.  This bill also eliminates the requirement to reduce UI benefits when social security (OASI) benefits are received.

The amendment to relevant parts of the RCES is necessary to implement the provisions of the new law.

House Bill 09-1310, Employee Misclassification

Senate Bill 09-1310 allows individuals to file a written complaint with the Colorado Department of Labor and Employment (CDLE), UI Program if an employer is misclassifying an employee as an independent contractor.  The UI Program may investigate complaints or those acts undertaken to gain a competitive advantage or to avoid the payment of UI taxes.  Upon finding a violation, the UI Program shall order the employer to pay back taxes owed plus interest.  For cases where the misclassification is made with willful disregard of the law, the UI Program is authorized to impose a fine, and upon a second or subsequent violation, prohibit an employer from contracting with the state for up to two years.

The bill allows an employer to request, for a fee, a nonbinding advisory opinion from the UI Program as to how an individual employee must be classified.  The department is required to conduct a statewide study on the issue of employee misclassification and report those findings in combination with information on complaint investigations to the General Assembly within two years.

The addition of a new part to the RCES is necessary to implement the provisions of the new law.

2.	If emergency, give reasons

Not applicable for this rules promulgation

3.	Authority for rule

Authority for amendment of the rules is found in 8-72-102 C.R.S.

Rules.  (1) The director of the division has the power to adopt, amend, or rescind, in accordance with section 24-4-103, C.R.S., reasonable and necessary rules relating to the administration of the “Colorado Employment Security Act” and governing hearings and proceedings under such act.