New Unemployment Insurance Rules in Effect Oct 1, 2019, Enforcement Begins Nov 1, 2019

01 October 2019

The Vermont Department of Labor (VDOL) has implemented new Employment Security Board Rules (Rules) that establish the Unemployment Insurance Division’s appeals process pertaining to misclassification findings, debarment decisions, and penalties. The new rules went into effect October 1, 2019; however, the Department will not begin to issue penalties or debarment decisions until November 1, 2019.

Additionally, the Department of Labor is announcing the creation of a short-term, no-risk review that will allow employers to request a review of their wage reporting practices without penalty. This program will be in effect between October 1, 2019 and March 31, 2020.  Employers interested in taking advantage of this program may contact the Department at https://labor.vermont.gov/unemployment-insurance.

“The newly adopted rules set a clear and transparent process for businesses to appeal determinations of misclassification penalties and debarments,” said Acting Commissioner Michael Harrington. “The newly created review program will offer employers the opportunity to engage with the Department’s UI staff on wage practices, without fear of penalty. The Department is hoping this program will help employers better understand misclassification laws in order to avoid unintended misclassification in the future.”

Currently, Vermont law (21 V.S.A. § 1314a) prohibits businesses who fail to properly classify an individual from contracting, directly or indirectly, with the State or any of its subdivisions, for up to three years following the date the employer was found to have failed to properly classify.

Beginning November 1, 2019, the Department of Labor will also begin posting the names of individuals and/or businesses who have violated the Unemployment Insurance statute and have been debarred from contracting with the State.

For the current list of entities debarred from State contracts because of workers’ compensation law violations, please visit: https://bgs.vermont.gov/purchasing-contracting/debarment.

For more information about the Department of Labor, visit: www.labor.vermont.gov.

Click here to request a risk free review of your employment classification practices: https://labor.vermont.gov/form/risk-free-review-employment-classifications-request

Click here to see the updated Employment Security Board Rules:  https://labor.vermont.gov/sites/labor/files/doc_library/EmploymentSecuri...