HB 1389 - Employment Security Law; definitions; St-wide Reserve Ratio

First Reader Summary

A BILL to amend Chapter 8 of Title 34 of the Official Code of Georgia Annotated, the "Employment Security Law,"so as to change the definition of the term "employment"; to change the provisions relating to the State-wide Reserve Ratio; and for other purposes.

Golden, Tim (177th) Hammontree, James A (4th)
Status Summary HC: IndR SC: LA: 01/28/98 H - Read 2nd Time
Page Numbers - 1/ 2/ 3/ 4
House Action Senate
1/27/98 Read 1st Time
1/28/98 Read 2nd Time

HB 1389                                            LC 10 2351 
 
 
 
 
 
 
                        A BILL TO BE ENTITLED 
                               AN ACT 
 
 
  1- 1  To amend Chapter 8 of Title 34 of the Official Code of 
  1- 2  Georgia Annotated, the "Employment Security Law," so as to 
  1- 3  change the definition of the term "employment"; to change 
  1- 4  the provisions relating to the State-wide Reserve Ratio; to 
  1- 5  repeal conflicting laws; and for other purposes. 
 
  1- 6       BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA: 
 
  1- 7                           SECTION 1. 
 
  1- 8  Chapter 8 of Title 34 of the Official Code of Georgia 
  1- 9  Annotated, the "Employment Security Law," is amended by 
  1-10  striking in its entirety subsection (f) of Code Section 
  1-11  34-8-35, relating to the definition of the term 
  1-12  "employment," which reads as follows: 
 
  1-13    "(f) Services performed by an individual for wages shall 
  1-14    be deemed to be employment subject to this chapter unless 
  1-15    and until it is shown that: 
 
  1-16      (1) Such individual has been and will continue to be 
  1-17      free from control or direction over the performance of 
  1-18      such services, both under the individual's contract of 
  1-19      service and in fact; 
 
  1-20      (2) Such service is outside the usual course of the 
  1-21      business for which such service is performed or such 
  1-22      service is performed outside of all the places of 
  1-23      business of the enterprise for which such service is 
  1-24      performed; and 
 
  1-25      (3) Such individual is customarily engaged in an 
  1-26      independently established trade, occupation, profession, 
  1-27      or business.", 
 
  1-28  and inserting in lieu thereof a new subsection (f) to read 
  1-29  as follows: 
 
  1-30      "(f)(1) Services performed by an individual for wages 
  1-31      shall be deemed to be employment subject to this chapter 
  1-32      unless the individual qualifies as an independent 
 
 
 
                                 -1- 
 
 
 
  2- 1      contractor and not an employee by meeting all of the 
  2- 2      following criteria: 
 
  2- 3        (A) Is a party to a contract, written or implied, 
  2- 4        which intends to create an independent contractor 
  2- 5        relationship; 
 
  2- 6        (B) Has the right to exercise control over the time, 
  2- 7        manner, and method of the work to be performed; and 
 
  2- 8        (C) Is paid on a set price per job or a per unit basis 
  2- 9        rather than on a salary or hourly basis. 
 
  2-10      (2) A person who does not meet all of the criteria 
  2-11      listed in subparagraphs (A) through (C) of paragraph (1) 
  2-12      of this subsection shall be considered an employee 
  2-13      unless otherwise determined by an administrative law 
  2-14      judge or court to be an independent contractor." 
 
  2-15                           SECTION 2. 
 
  2-16  Said chapter is further amended by striking in its entirety 
  2-17  subsection (d) of Code Section 34-8-156, relating to the 
  2-18  State-wide Reserve Ratio under the "Employment Security 
  2-19  Law," and inserting in lieu thereof a new subsection (d) to 
  2-20  read as follows: 
 
  2-21      "(d)(1) For the period on or after January 1, 1997, but 
  2-22      prior to January 1, 1998: 
 
  2-23        (A) When the State-wide Reserve Ratio, as computed 
  2-24        above, is 3.0 percent or more for any calendar year, 
  2-25        each employer who does not have a deficit reserve 
  2-26        balance shall have its contribution rate at the time 
  2-27        of computation credited by applying an overall 
  2-28        reduction of the rate in accordance with the following 
  2-29        table: 
 
  2-30          If the State-wide Reserve Ratio: 
 
  2-31          Equals or                But Is           Overall 
  2-32          Exceeds                 Less Than        Reduction 
 
  2-33          3.0 percent            3.6 percent       25 percent 
  2-34          3.6 percent and over                     50 percent 
 
  2-35        (B) When the State-wide Reserve Ratio, as calculated 
  2-36        above, is less than 2.6 percent, there shall be an 
  2-37        overall increase in the rate, as of the computation 
  2-38        date, for each employer whose rate is computed under a 
  2-39        rate table in Code Section 34-8-155 in accordance with 
  2-40        the following table: 
 
 
                                 -2- 
 
 
 
  3- 1          If the State-wide Reserve Ratio: 
 
  3- 2          Equals or                But Is            Overall 
  3- 3          Exceeds                 Less Than         Increase 
 
  3- 4          1.8 percent            2.6 percent       25 percent 
  3- 5          Under 1.8 percent                        50 percent 
 
  3- 6      (2) For the period on or after January 1, 1998, but 
  3- 7      prior to January 1, 1999: 
 
  3- 8        (A) When the State-wide Reserve Ratio, as computed 
  3- 9        above, is 2.4 percent or more for any calendar year, 
  3-10        each employer who does not have a deficit reserve 
  3-11        balance shall have its contribution rate at the time 
  3-12        of computation credited by applying an overall 
  3-13        reduction of the rate in accordance with the following 
  3-14        table: 
 
  3-15          If the State-wide Reserve Ratio: 
 
  3-16          Equals or                But Is           Overall 
  3-17          Exceeds                 Less Than        Reduction 
 
  3-18          2.4 percent            2.7 percent       25 percent 
  3-19          2.7 percent and over                     50 percent 
 
  3-20        (B) When the State-wide Reserve Ratio, as calculated 
  3-21        above, is less than 2.1 percent, there shall be an 
  3-22        overall increase in the rate, as of the computation 
  3-23        date, for each employer whose rate is computed under a 
  3-24        rate table in Code Section 34-8-155 in accordance with 
  3-25        the following table: 
 
  3-26          If the State-wide Reserve Ratio: 
 
  3-27          Equals or                But Is            Overall 
  3-28          Exceeds                 Less Than         Increase 
 
  3-29          1.8 percent            2.1 percent       25 percent 
  3-30          Under 1.8 percent                        50 percent 
 
  3-31      (3) For the period on or after January 1, 1999: 
 
  3-32        (A) When the State-wide Reserve Ratio, as computed 
  3-33        above, is 2.4 percent or more for any calendar year, 
  3-34        each employer who does not have a deficit reserve 
  3-35        balance shall have its contribution rate at the time 
  3-36        of computation credited by applying an overall 
  3-37        reduction of the rate in accordance with the following 
  3-38        table: 
 
  3-39          If the State-wide Reserve Ratio: 
 
 
                                 -3- 
 
 
 
  4- 1          Equals or                But Is           Overall 
  4- 2          Exceeds                 Less Than        Reduction 
 
  4- 3          2.4 percent            2.7 percent       25 percent 
  4- 4          2.7 percent and over                     50 percent 
 
  4- 5        (B) When the State-wide Reserve Ratio, as calculated 
  4- 6        above, is less than 1.9 percent, there shall be an 
  4- 7        overall increase in the rate, as of the computation 
  4- 8        date, for each employer whose rate is computed under a 
  4- 9        rate table in Code Section 34-8-155 in accordance with 
  4-10        the following table: 
 
  4-11          If the State-wide Reserve Ratio: 
 
  4-12          Equals or                But Is            Overall 
  4-13          Exceeds                 Less Than         Increase 
 
  4-14          1.7 percent            1.9 percent       25 percent 
  4-15          Under 1.7 percent                        50 percent" 
 
  4-16                           SECTION 3. 
 
  4-17  All laws and parts of laws in conflict with this Act are 
  4-18  repealed. 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                 -4- 

Clerk of the House
Robert E. Rivers, Jr., Clerk
Last Updated on 04/20/98

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