ARTICLE 5. INDIANA EMPLOYMENT AND TRAINING SERVICES ACT; ADMINISTRATION

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ADMINISTRATION

Rule 1. Definitions

646 IAC 5-1-1 Applicability

Authority: IC 22-4-18-1; IC 22-4.1-3-3 Affected: IC 22-4; IC 22-4.1; IC 22-4.5

Sec. 1. (a) The definitions in this rule apply throughout this article.

(b) The definitions in IC 22-4, IC 22-4.1, and IC 22-4.5 apply throughout this article unless otherwise specifically defined in this article. (Department of Workforce Development; 646 IAC 5-1-1; filed Apr 26, 2011, 11:23 a.m.: 20110525-IR-646100464FRA)

646 IAC 5-1-2 "American vessel" defined

Authority: IC 22-4-18-1; IC 22-4.1-3-3 Affected: IC 22-4; IC 22-4.1

Sec. 2. "American vessel" means any vessel:

(1) documented or numbered under the laws of the United States; or

(2) that is neither documented or numbered under the laws of the United States nor documented under the laws of any foreign country, if its crew is employed solely by one (1) or more citizens or residents of the United States, or corporations organized under the laws of the United States or any state.

(Department of Workforce Development; 646 IAC 5-1-2; filed Apr 26, 2011, 11:23 a.m.: 20110525-IR-646100464FRA)

646 IAC 5-1-3 "Approved training" defined

Sec. 3. (a) "Approved training" means training when the claimant is enrolled in: (1) Workforce Investment Act (WIA) services; or

(2) training approved by the department.

(b) Training may be approved regardless of whether it is funded by the department or by the claimant. (Department of Workforce Development; 646 IAC 5-1-3; filed Apr 26, 2011, 11:23 a.m.: 20110525-IR-646100464FRA)

646 IAC 5-1-4 "Employee" defined

Authority: IC 22-4-18-1; IC 22-4.1-3-3 Affected: IC 22-4-8-1; IC 22-4.1

Sec. 4. "Employee" means any individual performing personal services, which constitute employment under IC 22-4-8-1, for remuneration. (Department of Workforce Development; 646 IAC 5-1-4; filed Apr 26, 2011, 11:23 a.m.: 20110525-IR-646100464FRA)

646 IAC 5-1-5 "Full time" defined

Sec. 5. "Full time" means that number of hours that are customarily considered full time prevailing in a particular industry. (Department of Workforce Development; 646 IAC 5-1-5; filed Apr 26, 2011, 11:23 a.m.: 20110525-IR-646100464FRA)

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646 IAC 5-1-6 "Governmental entity" defined

Sec. 6. "Governmental entity" means an instrumentality of: (1) the state; or

(2) one (1) or more political subdivisions of the state.

646 IAC 5-1-7 "Instructional" defined

Sec. 7. "Instructional" means services that consist of: (1) teaching, tutoring, or lecturing;

(2) directing or supervising the instructional activities of others; or

(3) counseling, advising, or otherwise determining curriculum, courses, and academic pursuits for students. (Department of Workforce Development; 646 IAC 5-1-7; filed Apr 26, 2011, 11:23 a.m.: 20110525-IR-646100464FRA)

646 IAC 5-1-8 "Instrumentality" defined

Sec. 8. "Instrumentality" means a legal entity organized to carry on some function of government for the state or a political subdivision, and is an independent legal entity with the power to hire, supervise, and discharge its employees. Generally, an instrumentality may sue and be sued, enter into a contract, and hold or transfer property in its own name. (Department of Workforce Development; 646 IAC 5-1-8; filed Apr 26, 2011, 11:23 a.m.: 20110525-IR-646100464FRA)

646 IAC 5-1-9 "Job-attached" defined

Sec. 9. "Job-attached" means a relationship between an employer and an employee in which the employee is not actively performing services for the employer, but is still connected to the employer through the payment of remuneration in the form of supplemental unemployment insurance benefits, or by remaining covered under the employer's health benefits plan. (Department of Workforce Development; 646 IAC 5-1-9; filed Apr 26, 2011, 11:23 a.m.: 20110525-IR-646100464FRA)

646 IAC 5-1-10 "Officer or member of the crew" defined

Sec. 10. "Officer or member of the crew" means the master or officer in charge of the vessel, however designated, and every individual subject to the authority of the master or officer in charge serving on board and contributing in any way to the operation and welfare of the vessel. (Department of Workforce Development; 646 IAC 5-1-10; filed Apr 26, 2011, 11:23 a.m.: 20110525-IR-646100464FRA)

646 IAC 5-1-11 "Part-time worker" defined

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Sec. 11. "Part-time worker" means an individual who:

(1) works fewer than the customarily scheduled full-time hours of an employer; and

(2) has assented through agreement, policy, or practice to work the fewer than full-time hours.

646 IAC 5-1-12 "Political subdivision" defined

Sec. 12. (a) "Political subdivision" means a: (1) county;

(2) city; (3) town; (4) village: (5) school; or,

(6) sanitation, utility, reclamation, improvement, drainage, irrigation, flood control, or similar district.

(b) Organizations such as libraries and hospitals may be integral parts of cities, counties, or other political subdivisions. If so, coverage of the organization would depend upon the coverage of the political subdivision of which the organization is a part. The organization may be a political subdivision itself, or it may be a private nonprofit organization. (Department of Workforce Development; 646 IAC 5-1-12; filed Apr 26, 2011, 11:23 a.m.: 20110525-IR-646100464FRA)

646 IAC 5-1-13 "Principal administrative" defined

Sec. 13. "Principal administrative" means all executive, managerial, or administrative services performed for an educational institution. (Department of Workforce Development; 646 IAC 5-1-13; filed Apr 26, 2011, 11:23 a.m.: 20110525-IR-646100464FRA)

646 IAC 5-1-14 "Professional employer organization" or "PEO" defined (Voided)

Sec. 14. (Voided by P.L.33-2013, SECTION 7, effective July 1, 2013.)

646 IAC 5-1-15 "Remuneration" defined

Sec. 15. "Remuneration" has the same meaning set forth in IC 22-4-4-1; however, the term specifically includes payments of supplemental unemployment insurance benefits and payments by an employer for an employee's health insurance benefit plan. (Department of Workforce Development; 646 IAC 5-1-15; filed Apr 26, 2011, 11:23 a.m.: 20110525-IR-646100464FRA)

646 IAC 5-1-16 "Research" defined

Sec. 16. "Research" means any study or investigation in a field of science or knowledge. (Department of Workforce Development; 646 IAC 5-1-16; filed Apr 26, 2011, 11:23 a.m.: 20110525-IR-646100464FRA)

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646 IAC 5-1-17 "Sick pay" and "sickness or accident disability payment" defined

Sec. 17. (a) "Sick pay" means payment made to an employee during periods of temporary absence due to illness or injury, if the employer anticipates that the employee will return to service.

(b) "Sickness or accident disability payment" means payment made to or on behalf of an individual after the individual's employment relationship has been severed by disabling sickness or accident, and the employer anticipates that the employee will not return to the employment. (Department of Workforce Development; 646 IAC 5-1-17; filed Apr 26, 2011, 11:23 a.m.: 20110525-IR-646100464FRA)

646 IAC 5-1-18 "Vessel" defined

Sec. 18. In maritime service, "vessel" means watercraft or other contrivances used as a means of transportation on water. The term includes dredges used for navigation and transportation in deepening and removing obstructions from channels, rivers, or other waterways. (Department of Workforce Development; 646 IAC 5-1-18; filed Apr 26, 2011, 11:23 a.m.: 20110525-IR-646100464FRA)

Rule 2. Employer Rights, Responsibilities, and Liability

646 IAC 5-2-1 Reports and contributions

Sec. 1. (a) Every employer subject to IC 22-4 shall file quarterly wage and contribution reports in the form and manner prescribed by the department. These reports are due on or before the last day of the month next following the quarter for which the reports are filed. Contributions are due and payable at the time these reports are filed, except for those employers that have elected to become liable for payments in lieu of contributions.

(b) Reports must show the total remuneration paid for covered employment as well as wages subject to contribution. The amount of payroll subject to contribution for any year is termed "wages" and is limited as follows:

(1) "Wages", as used in this section, shall not include remuneration in excess of the taxable wage base established by law paid to an individual by a single employer in a calendar year with the following exceptions:

(A) In cases of an acquisition of the organization, trade, or business of an employer, or the acquisition of a distinct and segregable portion of the business, the remuneration paid to an individual by the predecessor will be combined with remuneration paid to the same individual by the successor in the same calendar year in which the acquisition occurs to determine the taxable wage base limitation.

(B) The remuneration paid by an employer to an employee in another state will be combined with the remuneration paid by the same employer to the same employee in the same calendar year in this state to determine the taxable wage base limitation.

(2) Each employer must file a wage report, concurrently with the filing of the quarterly contribution report. The wage report must show the total remuneration paid for covered employment to each employee in any calendar quarter. Total remuneration includes taxable wages as well as remuneration in excess of taxable wages paid to each individual in a calendar year. (c) Reports and contributions from an employer are required for the entire calendar year in which the employer first becomes subject to IC 22-4. The due date of contributions and reports for the quarter or quarters preceding the quarter in which the employing unit qualifies as an employer is the date upon which the employing unit actually acquired the status of an employer within the meaning of IC 22-4; however, interest and penalty shall not accrue on past quarters until thirty (30) days after such date. (d) If the due date for a report falls on a Sunday, or a federal holiday, then that due date will roll over to the next department

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business day. In all other situations, the due date is the final date indicated on the report for a timely submission.

(e) Contributions required under subsection (c) will not apply to those employers that have elected to become liable for payments in lieu of contributions. However, reports are required of all employers regardless of election. (Department of Workforce Development; 646 IAC 5-2-1; filed Apr 26, 2011, 11:23 a.m.: 20110525-IR-646100464FRA)

646 IAC 5-2-2 Filing of reports

Sec. 2. (a) Each employer shall ascertain the Social Security number of each employee and include the employee's Social Security number in any report filed with the department.

(b) All reports shall be filed on the forms required by the department.

(c) Reports shall be filed electronically if required by the department. (Department of Workforce Development; 646 IAC 5-2-2; filed Apr 26, 2011, 11:23 a.m.: 20110525-IR-646100464FRA)

646 IAC 5-2-3 Quarterly reports; nothing to report; errors

Sec. 3. (a) If an employer has incurred no payroll, and no contributions are due for a particular quarter, the employer's report may be marked "Nothing to Report" in lieu of completing the report with zeros. Quarterly contribution reports must be sent to the department on a quarterly basis until the employer terminates or inactivates its account.

(b) No contribution report submitted to the department will be returned to the employer for correction. If an error has been made in filing a contribution report, the employer shall submit an explanation for the error on the form required by the department. (c) If an employer owes additional contributions as a result of a correction, the employer must remit all additional contributions due.

(d) If the employer has paid more contributions than owed, according to the corrected report, the employer's account will show a credit balance. If the credit balance is greater than the amount due on the subsequent quarterly report, the employer may file a claim for refund in the form and manner prescribed by the department.

(e) A claim for refund must be executed by the person to whom the claim is alleged to be due. A claim for refund by a corporation must be made in the name of the corporation, and executed by an officer thereof. A fiduciary will be required to furnish a certified copy of appointment to accompany a claim for refund on contributions not paid in fiduciary capacity. (Department of Workforce Development; 646 IAC 5-2-3; filed Apr 26, 2011, 11:23 a.m.: 20110525-IR-646100464FRA)

646 IAC 5-2-4 Estimation of wages

Sec. 4. (a) Pursuant to the department's authority set forth in IC 22-4-11-4, if an employer fails to timely submit quarterly reports, the department will investigate and, if necessary, estimate employer wages, and resulting contributions. The following circumstances relate to a wage estimation by the department:

(1) An employer's contacting other state agencies regarding unemployment issues does not constitute the submission of reports required by the department.

(2) An employer's failure to claim certified mail notices sent by the department does not constitute a lack of notice to the employer.

(b) Once an auditor has determined that there is sufficient reason to begin the estimation process, the department will send the employer a penalty letter by certified mail, return receipt requested. The penalty letter will:

(1) state the quarter or quarters and year or years of the missing report or reports; and

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If the employer does not submit the reports in question, the department will estimate the employer wages and compute the resulting contributions, penalty, and interest for the covered quarters.

(c) After the department has done a wage estimation, and liability computation, the department will send the employer a notice and demand for payment by certified mail, return receipt requested. The notice and demand sets forth the quarter or quarters and year or years in question, and the contributions, penalties, and interest due to the department. The penalties include:

(1) a twenty-five dollar ($25) fine for failure to file the wage report within ten (10) days of the agency's written request; and (2) a twenty-five dollar ($25) fine for the failure to file the contribution report within ten (10) days of the agency's written request.

The employer has fifteen (15) days from the mailing date of the notice of demand within which to file a timely protest. (d) With regard to employer protests, the following:

(1) If the employer files the actual reports in a timely manner, the department will adjust the employer's account to reflect the information provided. However, the twenty-five dollar ($25) penalties for failure to timely file the reports will not be removed.

(2) If the employer files the actual reports after the expiration of the time for a timely protest, the estimation can be adjusted upward based upon the actual information submitted by the employer; however, it will not be adjusted downward unless the employer meets the following two (2) statutory conditions:

(A) The employer produces true and actual reports.

(B) The employer establishes reasonable cause for its failure to timely file the required reports.

646 IAC 5-2-5 Unemployment contribution rates

Sec. 5. (a) An employer will be subject to the penalty rate, as established under IC 22-4-11-2, if as follows: (1) The employer fails to file any required quarterly report.

(2) The employer fails to pay the contributions, penalty, and interest charges owed for past quarters, or owed by a predecessor account, within ten (10) days of the date specified on Form 1171 (Merit Rate Delinquency Notice), which is sent certified mail by the department. The merit rate delinquency notice is not a protestable notification.

(b) Employers that no longer hold new employer status, and are not subject to the penalty rate, qualify for an experience-based merit rate. An employer's merit rate contribution is experience-based upon the following:

(1) The employer's experience account status as of the June 30 computation date.

(2) The employer's payroll in the thirty-six (36) months immediately preceding the computation date.

646 IAC 5-2-6 Merit rate process

Sec. 6. (a) Merit rate calculations begin with the allocation of the pool account to employers in early July. Employers receive a mutualized benefit charge statement, which is a nonprotestable, informational document.

(b) In mid-September, any employer with outstanding liabilities, missing quarterly contribution reports, or outstanding predecessor liabilities is sent a nonprotestable merit rate delinquency notice by certified mail, return receipt requested. This notification provides the employer an opportunity to avoid being assigned a penalty rate for the next calendar year by making the payments due, or by submitting the missing reports, within ten (10) days of the mailing date of the notice.

(c) A merit rate notice is sent by first class mail to the last known address of each employer no later than March 30 of the rate year. This notice provides the employer with:

(1) its experience balance;

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(3) a voluntary payment offer if eligible; and (4) any requirements that have not been met.

An employer who has not met the listed requirements, or whose account is at the lowest available rate, is not eligible for a voluntary buy down. An employer has the right to protest its merit rate notice. The protest must be filed within fifteen (15) days of the mailing date of the notice. The protest right is limited to whether the employer's contribution rate was calculated correctly and does not extend to department determinations that were independently protestable when issued. (Department of Workforce Development; 646 IAC 5-2-6; filed Apr 26, 2011, 11:23 a.m.: 20110525-IR-646100464FRA)

646 IAC 5-2-7 Transfers of Indiana operations

Sec. 7. (a) An employing unit, whether or not an employer at the time of transfer, that:

(1) acquires all or a portion of an employer's trade or business (including the employer's workforce), which results in the continuance of an organization, trade, or business; or

(2) merges, incorporates, or reorganizes the employing unit's business;

immediately qualifies as a covered employer under IC 22-4 and assumes the position of the predecessor with respect to all the resources and liabilities of the predecessor's experience account. In order for this section to be applicable, the transfer must result in a substantial change in ownership and management. The successor/acquirer must complete State Form 2837 (Report to Determine Status), and the predecessor/disposer must complete State Form 46799 (Report of Transfer – Complete Sale). The deadline for filing is the earlier of thirty (30) days from the dispositions date or ten (10) days from a request for information by the department.

(b) An employing unit, whether or not an employer at the time of transfer, that:

(1) purchases a distinct and segregable portion of an organization, trade, or business; and (2) retains employees of that business;

will be entitled to consider the wages reported by the predecessor/disposer when computing the tax base per employee, per calendar year. The predecessor/disposer must transfer a proportionate portion of its experience balance, and the merit rate, to the successor/acquirer. This must be done by the earlier of thirty (30) days from the date of disposition or not later than ten (10) days after notification from the department. The employers must complete State Form 23299 (Report of Transfer-Partial Sale). Failure to complete this form may result in a department-mandated flat fifty percent (50%) transfer of the disposer's experience balance to the acquirer's experience balance. (Department of Workforce Development; 646 IAC 5-2-7; filed Apr 26, 2011, 11:23 a.m.: 20110525-IR-646100464FRA)

646 IAC 5-2-8 Calculation and payment of contributions; municipal utilities

Sec. 8. (a) If a city or town had previously been a covered employer to the extent of its municipal utilities, the utilities will pay contributions at their computed rate, but the rate will not exceed the prescribed rate under IC 22-4-11-2(e).

(b) If, by statute, a municipal utility is set apart as a separate political subdivision, such utility will retain their experience account and assigned rate, and IC 22-4-11-2(d) will apply to the new account assigned to the city or town for the purpose of reporting nonutility employment. (Department of Workforce Development; 646 IAC 5-2-8; filed Apr 26, 2011, 11:23 a.m.: 20110525-IR-646100464FRA)

646 IAC 5-2-9 Accelerated payment of contributions under Schedule "A"

Authority: IC 22-4-18-1; IC 22-4.1-3-3

Affected: IC 22-4-10-1; IC 22-4-29-1; IC 22-4.1

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that contribution payments should be accelerated under the conditions set forth by statute, each subject employer will be notified by regular mail not fewer than thirty (30) days prior to the date the accelerated contribution is due.

(b) The employer:

(1) will estimate the amount of the accelerated contribution payment based upon its projection of its estimated payroll for the accelerated quarter; and

(2) must remit that amount in whole or in a percentage of the whole as determined by the department.

(c) Any amount of the estimated accelerated payment that exceeds the amount of contribution actually owed by the employer for the quarter to which the acceleration applies will be applied as a credit against that employer's future liability.

(d) If the amount of the estimated accelerated contribution remitted is less than the contribution actually owed by the employer for the accelerated quarter, the difference between the estimated contribution paid and the actual contribution owed must be paid at the time the contribution would normally be due for the accelerated quarter.

(e) All enforcement procedures that apply to regular contributions, including the interest and penalty provisions of IC 22-4-29-1, will apply to accelerated contributions. (Department of Workforce Development; 646 IAC 5-2-9; filed Apr 26, 2011, 11:23 a.m.: 20110525-IR-646100464FRA)

646 IAC 5-2-10 Reimbursable employers; payments in lieu of contributions

Sec. 10. Any employer that makes an election to reimburse benefit charges under IC 22-4-10-1 will continue to be liable for payments in lieu of contributions until it files a written request to terminate its election. If the department approves the election, the employer will continue to be liable for payments of benefits that applied to an employee's base period falling in quarters in which the employer's election to reimburse was in effect. (Department of Workforce Development; 646 IAC 5-2-10; filed Apr 26, 2011, 11:23 a.m.: 20110525-IR-646100464FRA)

646 IAC 5-2-11 Termination or transfer of business; notice; final report; attachment of successor's assets

Sec. 11. (a) Where the status of an employer is changed by cessation or disposition of a business or an appointment of a receiver, trustee, trustee in bankruptcy, or other fiduciary, the employer shall immediately notify the department, and contributions with respect to wages for employment up to and including the date of the change of status, and with respect to amounts that would otherwise constitute wages as defined in IC 22-4, except for nonpayment thereof, are immediately due and payable. The employer shall immediately file necessary contribution and wage reports, showing all remuneration paid per employee for employment occurring in the calendar quarter in which the change of status occurred, and all previous unreported contributions and remuneration. Reports covering the calendar quarter in which the change of status occurred shall be marked "final report".

(b) Whenever an employer disposes of its organization, trade, or business, in whole or in part, it shall be the duty of both the employer and its successor to notify the department of the disposition on the forms prescribed by the department. If the disposing employer is a corporation, the employer shall follow the dissolution procedure described in IC 22-4-32-23. (Department of Workforce Development; 646 IAC 5-2-11; filed Apr 26, 2011, 11:23 a.m.: 20110525-IR-646100464FRA)

646 IAC 5-2-12 Eligibility for separate employer account

Sec. 12. (a) For purposes of IC 22-4-10-4, any employing unit that is wholly or partially owned by another employing unit will not be eligible for a separate experience account if:

(1) the employing units are so closely related that it would be appropriate to disregard the corporate structure under Indiana law; or

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(2) one (1) of the employing units has failed to assume all of the requisite employment responsibilities necessary to provide its employees with employment.

(b) Employing units not eligible for separate accounts are responsible for ensuring that their wages are reported under a single account. (Department of Workforce Development; 646 IAC 5-2-12; filed Apr 26, 2011, 11:23 a.m.: 20110525-IR-646100464FRA)

646 IAC 5-2-13 Responsibilities of related entities

Sec. 13. (a) Where employing units are related because one (1) employing unit has created or acquired a separate employing unit with no existing experience account, the employing units are responsible for determining whether they are eligible for separate accounts before requesting a new account.

(b) Where employing units with properly acquired experience accounts become related and ineligible for separate accounts through acquisition or merger, the entities are responsible for reporting the acquisition or merger to the department. The department shall combine the experience balance of the two (2) accounts once it receives the report. (Department of Workforce Development; 646 IAC 5-2-13; filed Apr 26, 2011, 11:23 a.m.: 20110525-IR-646100464FRA)

646 IAC 5-2-14 Rate recalculation and penalties

Sec. 14. If employing units that are not eligible for separate accounts obtain and use separate accounts, the department shall, once the error has been discovered, retroactively recalculate the employing units' experience rate as if the employing units had reported using a single account. The recalculation must be made not later than four (4) completed calendar years subsequent to the date that the contributions, penalties, or interest would have become due, except that this limitation shall not apply to any contributions, penalty, or interest that should have been paid with respect to any incorrect report filed with the department which report was known or should have been known to be incorrect by the employing unit. In addition, the employing units may be subject to the following penalties:

(1) Penalties and interest as set forth in IC 22-4-29-1. (2) An increased merit rate under IC 22-4-11-2. (3) Criminal penalties set forth in IC 22-4-34-2.

646 IAC 5-2-15 Department notices to employers

Sec. 15. (a) All notices to employers from the department shall be sent to one (1) of the following: (1) The employer's facility at which the claimant last worked.

(2) An address designated by the employer. The designation must be entered into the Employer Self Service (ESS) application by an employee of the employer with the authority to designate a correspondence agent. The following factors will be considered in determining where employer notices will be sent:

(A) When the job location is other than the employer's place of business, the employer's notice will be sent to the business address.

(B) If the employer elects to be represented by an agent or representative, and has properly entered the designation in the ESS application, as stated in this subdivision, the employer's notice will be sent to the address designated in the ESS application.

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delinquent notices, and any other such notices concerning penalties, interest, or other information required to properly administer IC 22-4, will be mailed to the:

(1) corporate office of the employer; (2) official place of business; or

(3) the representative designated under subsection (a);

except notices that reflect legal action, which will be mailed without exception to the corporate office or the official place of business.

(c) All notices of: (1) a new claim; (2) a reopened claim;

(3) a claim of potential liability; or (4) benefit charges;

will be mailed to only one (1) address to be designated by the employer. Employers that report wages under employer location numbers may elect to have the notices mailed to each separate establishment, the corporate office, or the designated representative. (d) Additionally, the department may make all notices available electronically. The department may send the notices set forth in this section solely through electronic means if the employer elects to receive notices solely through electronic means. (Department of Workforce Development; 646 IAC 5-2-15; filed Apr 26, 2011, 11:23 a.m.: 20110525-IR-646100464FRA)

646 IAC 5-2-16 Posted notification

Sec. 16. All employers liable for the payment of unemployment contributions must prominently display a poster, or posters, regarding unemployment insurance. Upon request, an employer must provide to employees information necessary for them to obtain their full rights and benefits under IC 22-4. (Department of Workforce Development; 646 IAC 5-2-16; filed Apr 26, 2011, 11:23 a.m.: 20110525-IR-646100464FRA)

Rule 3. Seasonal Employers and Employment

646 IAC 5-3-1 Seasonal employer status

Sec. 1. (a) For an employer to be designated as a seasonal employer under IC 22-4-7-3, the employer must submit an application to the department on the prescribed forms, attesting to the seasonal nature of the business or a portion of the business. (b) Once an application for seasonal status filed under IC 22-4-7-3 has been approved by the department, the effective date is the first day of the calendar quarter beginning after the date of the seasonal determination. (Department of Workforce Development; 646 IAC 5-3-1; filed Apr 26, 2011, 11:23 a.m.: 20110525-IR-646100464FRA)

646 IAC 5-3-2 Seasonal employment, worker definitions; report requirements

Sec. 2. (a) Seasonal employment means service performed for an approved seasonal employer during the approved seasonal period of less than twenty-six (26) weeks.

(b) A seasonal worker is an individual employed by an approved seasonal employer who is employed for less than twenty-six (26) weeks in approved seasonal employment.

(c) An approved seasonal employer will be required to submit information on department forms detailing the number of positions classified as seasonal within the approved portion or portions of such business. Also included will be the opening and

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closing dates of each seasonal operation. (Department of Workforce Development; 646 IAC 5-3-2; filed Apr 26, 2011, 11:23 a.m.: 20110525-IR-646100464FRA)

646 IAC 5-3-3 Seasonal employment determination appeal

Authority: IC 22-4-18-1; IC 22-4.1-3-3 Affected: IC 22-4-32; IC 22-4.1

Sec. 3. Any interested party may file an appeal to a determination regarding an approval or disapproval of an election to become a seasonal employer. The appeal must be filed within fifteen (15) days after the determination to obtain review in accordance with IC 22-4-32. (Department of Workforce Development; 646 IAC 5-3-3; filed Apr 26, 2011, 11:23 a.m.: 20110525-IR-646100464FRA)

646 IAC 5-3-4 Loss of seasonal status

Sec. 4. A seasonal employer shall give written notice to the department when the seasonal operation exceeds twenty-five (25) weeks in a calendar year, within thirty (30) days after completion of the twenty-sixth week of operation. The seasonal employer shall automatically lose its seasonal status for that portion of its operation at the end of the calendar quarter, and wages paid to individuals in that portion of the employer's operation will be useable as regular wages to establish claims. (Department of Workforce Development; 646 IAC 5-3-4; filed Apr 26, 2011, 11:23 a.m.: 20110525-IR-646100464FRA)

646 IAC 5-3-5 Reinstatement of seasonal status

Sec. 5. An employer that loses seasonal status may apply for reinstatement in any calendar year after the year in which its designation as a seasonal employer was revoked. (Department of Workforce Development; 646 IAC 5-3-5; filed Apr 26, 2011, 11:23 a.m.: 20110525-IR-646100464FRA)

646 IAC 5-3-6 Notification to seasonal employees of employment limitations

Sec. 6. (a) An approved seasonal employer must notify a seasonal employee in writing of the following: (1) The employee has been hired for a specific temporary seasonal period as determined by the department. (2) The employee is performing services in seasonal employment for an approved seasonal employer.

(3) Employment will customarily be limited to the beginning and ending dates of the seasonal period as determined and approved by the department.

(b) An employee will be considered notified at the date of hiring if the employee is notified on or before the date on which the employee begins services for the employer in any season for which seasonal status has been granted to a seasonal employer. (Department of Workforce Development; 646 IAC 5-3-6; filed Apr 26, 2011, 11:23 a.m.: 20110525-IR-646100464FRA)

646 IAC 5-3-7 Seasonal employment benefit payments

Sec. 7. (a) Benefits may be paid to individuals in seasonal employment on the basis of services performed in seasonal employment only if the claim is filed within the operating period of the approved seasonal employment.

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(b) If the claim is filed outside the operating period, benefits may be paid on the basis of nonseasonal wages only. (Department of Workforce Development; 646 IAC 5-3-7; filed Apr 26, 2011, 11:23 a.m.: 20110525-IR-646100464FRA)

646 IAC 5-3-8 Seasonal employment wage reporting

Sec. 8. Seasonal employers are required to keep an accurate account of wages paid to seasonal workers within the seasonal period as determined by the department. The department will furnish seasonal employers the special wage reporting forms with coding for seasonal employees. Wages will continue to be reported on a quarterly basis. (Department of Workforce Development; 646 IAC 5-3-8; filed Apr 26, 2011, 11:23 a.m.: 20110525-IR-646100464FRA)

Rule 4. Professional Employer Organizations (Voided)

NOTE: Voided by P.L.33-2013, SECTION 7, effective July 1, 2013.

Rule 5. Specific Types of Employment; Exempt Employers; Services Excluded from Employment

646 IAC 5-5-1 Trustees

Sec. 1. Individuals hired by a trustee to perform services in connection with the trust property, and who are paid from the funds of the trust, are considered in the employment of the trust, and not the trustee. (Department of Workforce Development; 646 IAC 5-5-1; filed Apr 26, 2011, 11:23 a.m.: 20110525-IR-646100464FRA)

646 IAC 5-5-2 Bankruptcy trustees

Sec. 2. A bankruptcy trustee may be an employing unit or an employer, but remuneration paid to the individual for services rendered as a trustee in bankruptcy is not considered wages, because such trustee is not in employment. (Department of Workforce Development; 646 IAC 5-5-2; filed Apr 26, 2011, 11:23 a.m.: 20110525-IR-646100464FRA)

646 IAC 5-5-3 Caddies

Sec. 3. A caddy who performs services for a member or guest of a golf club is not an employee of the club, although the caddy's fees are paid directly or indirectly by the club. (Department of Workforce Development; 646 IAC 5-5-3; filed Apr 26, 2011, 11:23 a.m.: 20110525-IR-646100464FRA)

646 IAC 5-5-4 Minor child or spouse employed in family business

Sec. 4. (a) A minor child who performs services for a partnership or corporation controlled by the parents of such child is considered to be employed by the partnership or corporation, and not by the child's parent or parents, but such employment is excluded if the firm is a partnership and the parents of the child are the sole owners and members of the partnership.

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employing unit is a partnership, an exempt relationship must exist with each member before such services shall be deemed as excluded services. (Department of Workforce Development; 646 IAC 5-5-4; filed Apr 26, 2011, 11:23 a.m.: 20110525-IR-646100464FRA)

646 IAC 5-5-5 Churches and religious organizations

Sec. 5. (a) As used in this rule, "church", "convention", and "association" have the meanings set forth in IC 22-4-8-2(j)(3)(A).

(b) Service performed for a college devoted primarily to the preparation of students for the ministry is not employment, as is the service for a novitiate or a house of study training candidates to become members of a religious order.

(c) A church-related charitable organization, such as an orphanage or home for the aged, is not considered to be operated primarily for religious purposes, and service performed for such an entity is employment.

(d) Under IC 22-4-8-2(j)(3)(B), the exclusion of service performed by ministers in the exercise of their ministry, and by members of a religious order in performing the duties required by the order, applies only when the service is performed for nonprofit organizations required to be covered by the state law.

(e) A minister is ordained, commissioned, or licensed if he or she has been vested with ministerial status in accordance with the procedure followed by the particular church denomination. However, he or she does not have to be connected with a congregation. Ministerial authority continues until revoked by the church.

(f) For purposes of this section, "exercise of the ministry" includes the following: (1) The conduct of religious worship and the ministration of sacerdotal functions. (2) Service performed in the control, conduct, and maintenance of:

(A) a religious organization under the authority of a religious body constituting a church or church denomination; or (B) an organization operated as an integral agency of such a religious organization or of a church or church denomination.

(3) Service performed for any organization under an assignment or designation by a church, not including cases in which a church merely helps a minister by recommending him or her for a position involving nonministerial services for an organization not connected with the church.

(4) Missionary service or administrative work in the employ of a missionary organization.

(g) As established in subsection (f), service of an individual as a chaplain in an orphanage or in a home for the aged is not employment since the service is in the exercise of the individual's ministry.

(h) Service of an individual who is a member of a teaching or nursing order who is engaged in teaching or nursing is not employment, if the order requires the performance of such service.

(i) Control, conduct, and maintenance of an organization is the performance of services directing, managing, or promoting the activities of the organization. (Department of Workforce Development; 646 IAC 5-5-5; filed Apr 26, 2011, 11:23 a.m.: 20110525-IR-646100464FRA)

646 IAC 5-5-6 Domestic service

Sec. 6. (a) Domestic services excluded from employment are services of a household nature performed by an individual in or about the private home of the person for whom the services are performed, or are services performed in or about the club rooms or house of a local college club, or local chapter of a college fraternity or sorority, for whom the services are performed.

(b) As used in this section, "private home" means the fixed place of abode of an individual or a family.

(c) As used in this section, "local college club or local chapter of a college fraternity or sorority" does not include an alumni club or chapter.

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home ceases to be a private home and the services performed therein are not excluded. In addition, if the club rooms or house of a local college club, or local chapter of a college fraternity or sorority, are used primarily for such purposes, the services performed therein are not excluded.

(e) The services described in subsection (a) are not excluded if they are performed in or about: (1) rooming or lodging houses;

(2) boarding houses;

(3) clubs (except local college clubs); (4) hotels; or

(5) commercial offices or establishments.

(f) Services performed as a private secretary, even though performed in the employer's home, are not excluded. (Department of Workforce Development; 646 IAC 5-5-6; filed Apr 26, 2011, 11:23 a.m.: 20110525-IR-646100464FRA)

646 IAC 5-5-7 Agricultural labor

Sec. 7. (a) Agricultural labor does not include services performed in connection with forestry, lumbering, or landscaping. (b) Greenhouses and other similar structures used primarily for other purposes, such as display, storage, or fabrication of wreaths, corsages, and bouquets, do not constitute farms.

(c) Services performed for the owner or tenant or operator of one (1) or more farms in connection with the: (1) operation;

(2) management; (3) conservation; (4) improvement; or (5) maintenance;

of any of the farms or its tools or equipment are excluded as agricultural labor, provided the major part of the services is performed on a farm.

(d) Excluded services do not include services performed in connection with commercial canning or commercial freezing or in connection with any commodity after its delivery to a terminal market for distribution for consumption. Moreover, since the excluded services must be rendered in the actual handling, planting, drying, packing, packaging, processing, freezing, grading, storing, or delivery to storage or to market, or to a carrier for transportation to market, of the commodity, the services do not include services performed as stenographers, bookkeepers, clerks, and other office employees, even though the services may be in connection with such activities, except to the extent that the services of the individuals are performed in the employ of the owner or tenant or other operator of a farm and are rendered in major part on a farm.

(e) Subsequent to December 31, 1977, the exclusion of agricultural labor does not apply to those employers meeting the requirements of IC 22-4-7-2(e). (Department of Workforce Development; 646 IAC 5-5-7; filed Apr 26, 2011, 11:23 a.m.: 20110525-IR-646100464FRA)

646 IAC 5-5-8 Product demonstrators

Sec. 8. (a) Demonstrators:

(1) who are placed by a manufacturer in department and specialty stores to aid in the sale of the specialized products of the manufacturer;

(2) who are engaged by the manufacturer;

(3) who are paid directly or indirectly by the manufacturer; and

(4) who work under the direction of the manufacturer, although this direction may be delegated to the retailer; are employed by the manufacturer.

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(b) If the retailer, not acting as an agent for the manufacturer, engages the demonstrator, and the demonstrator works under the direction of the retailer and receives remuneration directly from the retailer, the retailer is the employer.

(c) If wages are paid in part by the manufacturer and in part by the retailer, the demonstrator is employed by both the manufacturer and the retailer. Each is required to pay contributions on the part of the remuneration that they pay, provided that one (1) or both are employers under IC 22-4. (Department of Workforce Development; 646 IAC 5-5-8; filed Apr 26, 2011, 11:23 a.m.: 20110525-IR-646100464FRA)

646 IAC 5-5-9 Railroad workers

Sec. 9. Services performed where potential unemployment benefits are payable under the Railroad Unemployment Insurance Act shall not be deemed employment within the meaning of IC 22-4. (Department of Workforce Development; 646 IAC 5-5-9; filed Apr 26, 2011, 11:23 a.m.: 20110525-IR-646100464FRA)

646 IAC 5-5-10 Insurance agents and solicitors

Sec. 10. Services performed by an individual as an insurance agent or insurance solicitor are excluded, provided that these services are performed solely on a commission basis. If any part of an individual's remuneration for these services is a salary, none of the individual's services are excluded, and the total remuneration is included in the contribution computation. (Department of Workforce Development; 646 IAC 5-5-10; filed Apr 26, 2011, 11:23 a.m.: 20110525-IR-646100464FRA)

646 IAC 5-5-11 Agent workforce lessors

Sec. 11. The lessee of a leased workforce is the employer of the individuals in the workforce when the lessor hires and pays the individuals as the agent of the lessee. (Department of Workforce Development; 646 IAC 5-5-11; filed Apr 26, 2011, 11:23 a.m.: 20110525-IR-646100464FRA)

646 IAC 5-5-12 Certain services performed with respect to property not held by the owner

Sec. 12. Where property is held by a mortgagee in possession, an assignee of rent, or a trustee or receiver under the mortgage, the mortgagee, the assignee, or the trustee or receiver, not the owner of the property, is the employer of individuals performing services with respect to the property. (Department of Workforce Development; 646 IAC 5-5-12; filed Apr 26, 2011, 11:23 a.m.: 20110525-IR-646100464FRA)

646 IAC 5-5-13 "Partially exempt services" determined

Sec. 13. (a) To determine whether one-half (1/2) of the services performed in a pay period constitute employment under IC 22-4-8-3, the department will compare the duration of the services that constitute employment to the duration of the services that do not constitute employment.

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whether the services constitute employment.

(c) This rule does not apply with respect to any services performed by the individual for an employing unit:

(1) if the periods for which the employing unit makes payments of remuneration to the individual vary to the extent that there is no period for which a payment of remuneration is ordinarily made to the individual;

(2) if the period for which a payment of remuneration is ordinarily made to the individual by the employing unit exceeds thirty-one (31) consecutive calendar days; or

(3) during a pay period if any of such service is excepted under IC 22-4-8-3.

(d) If, during any period for which an employing unit makes a payment of remuneration to an individual, only a portion of the individual's services constitutes employment and this rule is not applicable, contributions are due with respect to such services that constitute employment. (Department of Workforce Development; 646 IAC 5-5-13; filed Apr 26, 2011, 11:23 a.m.: 20110525-IR-646100464FRA)

Rule 6. Wages

646 IAC 5-6-1 Meals and lodging; valuation

Sec. 1. (a) Costs for meals and lodging allowed by an employer as increased or additional remuneration for employees are wages subject to contribution.

(b) Where the employer provides a fixed amount to employees for meals and lodging, that fixed amount is the amount of additional remuneration.

(c) Where the employer does not provide a fixed amount to employees, the actual cost of the meals and lodging is the amount of additional remuneration.

(d) Where meals and lodging are furnished by the employer on the premises of the employer for the convenience of the employer, the value of those meals and lodging is not remuneration subject to contributions. (Department of Workforce Development; 646 IAC 5-6-1; filed Apr 26, 2011, 11:23 a.m.: 20110525-IR-646100464FRA)

646 IAC 5-6-2 Wages in lieu of notice or termination allowances

Sec. 2. Wages in lieu of notice, or termination allowances, include amounts paid by an employer to an employee at the time of employment separation and are wages subject to contribution. (Department of Workforce Development; 646 IAC 5-6-2; filed Apr 26, 2011, 11:23 a.m.: 20110525-IR-646100464FRA)

646 IAC 5-6-3 Back pay awards by the National Labor Relations Board

Sec. 3. (a) Awards of back pay to individuals by the National Labor Relations Board are reportable as wages for the quarter covered by the award.

(b) Payments of additional wages made pursuant to terms of the Fair Labor Standards Act are reportable as wages for the quarter covered by the payment.

(c) Awards of back pay to individuals resulting from arbitration are reportable as wages for the quarter covered by the arbitration award. (Department of Workforce Development; 646 IAC 5-6-3; filed Apr 26, 2011, 11:23 a.m.: 20110525-IR-646100464FRA)

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646 IAC 5-6-4 Commissions on installment payments

Sec. 4. Where commissions are paid to salespersons each time a purchaser makes a payment under an installment contract, the commissions shall be considered wages paid at the time that they are credited to the salesperson in the employer's financial records. (Department of Workforce Development; 646 IAC 5-6-4; filed Apr 26, 2011, 11:23 a.m.: 20110525-IR-646100464FRA)

646 IAC 5-6-5 Payments to corporate officers, directors, and members of a board of directors

Sec. 5. (a) An officer of a corporation who receives remuneration for his or her services as a corporate officer from a corporation is in employment during the entire term of his or her office, and the remuneration shall be considered as wages.

(b) A member of the board of directors of a corporation is not considered in employment, and fees paid for attendance at meetings of the board of directors shall not be deemed wages.

(c) A member of a board of directors is in employment, however, if he or she performs services for remuneration for the corporation other than those required by attendance at, and participation in, the meetings of the board of directors.

(d) The remuneration considered wages in subsection (a) shall be deemed wages paid by a PEO, and the corporate officer of a client business entity shall be deemed the employee of the PEO, when the services performed as a corporate officer are subject to a written agreement between the PEO and the client business entity, as provided in 646 IAC 5-1-14. (Department of Workforce Development; 646 IAC 5-6-5; filed Apr 26, 2011, 11:23 a.m.: 20110525-IR-646100464FRA)

646 IAC 5-6-6 Payments to partners

Sec. 6. Payments made by a partnership to a partner are not wages. A partner is an employer and is not an employee of the partnership. (Department of Workforce Development; 646 IAC 5-6-6; filed Apr 26, 2011, 11:23 a.m.: 20110525-IR-646100464FRA)

646 IAC 5-6-7 Idle time payments

Sec. 7. Where an employer:

(1) guarantees employees a minimum number of hours of employment per week; and

(2) makes payments to them for idle time when they do not render services for the minimum number of hours;

the payment for the idle time constitutes wages subject to contribution. (Department of Workforce Development; 646 IAC 5-6-7; filed Apr 26, 2011, 11:23 a.m.: 20110525-IR-646100464FRA)

646 IAC 5-6-8 Employee discounts on purchases

Sec. 8. Discounts allowed employees on the purchase of goods from the employer are not wages if the: (1) purchase is optional for the employee; and

(2) discounts do not constitute regular or systematic remuneration for services rendered.

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646 IAC 5-6-9 Prizes and bonuses

Sec. 9. (a) A prize or a bonus given by an employer to an employee in cash is wages. When given in any medium other than cash, the prize or bonus will be considered wages unless it is not remuneration for employment.

(b) A prize or bonus paid in cash or in any other medium, whether or not paid as a result of a contractual obligation, shall be reported as wages for the week in which the prize or bonus is due or paid. (Department of Workforce Development; 646 IAC 5-6-9; filed Apr 26, 2011, 11:23 a.m.: 20110525-IR-646100464FRA)

646 IAC 5-6-10 Promissory notes

Sec. 10. Where an employee accepts a promissory note in lieu of wages, the:

(1) face amount of the note at the time it is delivered to and accepted by the employee is considered the amount of wages subject to contribution; and

(2) wages are considered paid at the time of the delivery and the acceptance of the note.

646 IAC 5-6-11 Tips and gratuities

Sec. 11. (a) Tips and gratuities received by an employee from persons other than the employer, and not accounted for to the employer, are not wages. However, the amount of tips or gratuities accounted for by the employee to the employer by written statement, as required by Section 6053 of the Internal Revenue Code when the tips are in excess of twenty dollars ($20) per month, are wages within the meaning of IC 22-4-4-2.

(b) Where an employer does not permit tipping of employees, but rather: (1) adds a certain percent to the charges made to patrons; and

(2) disburses the added amounts to employees;

the sums disbursed are wages and not tips. (Department of Workforce Development; 646 IAC 5-6-11; filed Apr 26, 2011, 11:23 a.m.: 20110525-IR-646100464FRA)

646 IAC 5-6-12 Traveling expenses; commission drawing accounts

Sec. 12. (a) Actual amounts advanced or reimbursed to employees for traveling expenses, which are expenses of the employer incurred by the employee in connection with the employee's position and the business of the employer, are not wages.

(b) Where an employee is allowed a drawing account against which earned commissions are credited, and the commissions earned do not equal the amounts withdrawn, and the employee is required to account to the employer for amounts overdrawn, the commissions earned, and not the amounts overdrawn, are wages subject to contribution. However, if the employee is not required to account to the employer for the amounts overdrawn, all amounts advanced to the employee are wages.

(c) In determining contributions due for a quarter, each employee is to be considered individually, and, if the expenses of an employee exceed earnings, the excess may not be credited against the contribution liability incurred by the employer by reason of wages payable to other employees of that employer.

(d) If an employee earns wages in excess of expenses in one (1) calendar quarter, contributions are due and payable on the wages. If the same employee, in a subsequent calendar quarter, incurs expenses in excess of wages, the excess shall not be taken

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as a credit against contributions due for a previous calendar quarter, or contributions in future months or calendar quarters, respectively. (Department of Workforce Development; 646 IAC 5-6-12; filed Apr 26, 2011, 11:23 a.m.: 20110525-IR-646100464FRA)

646 IAC 5-6-13 Vacation and leave of absence pay

Sec. 13. Remuneration paid by an employer to an employee for vacation periods or leaves of absence, in the regular course of employment, is wages, and such periods of paid vacation or paid leave of absence is employment, as the employment relationship has not been terminated. (Department of Workforce Development; 646 IAC 5-6-13; filed Apr 26, 2011, 11:23 a.m.: 20110525-IR-646100464FRA)

646 IAC 5-6-14 Taxable wage base; successors

Sec. 14. (a) When an employing unit qualifies under IC 22-4-7-2(a) or IC 22-4-7-2(b), the remuneration paid by the predecessor in such calendar year is combined with the remuneration paid by the successor in that same calendar year in determining when an employee has reached the taxable wage base limit.

(b) The combining of the remuneration paid to an individual by separate employers, in establishing the taxable wage base limitation, applies only in successorship cases. (Department of Workforce Development; 646 IAC 5-6-14; filed Apr 26, 2011, 11:23 a.m.: 20110525-IR-646100464FRA)

646 IAC 5-6-15 Taxable wage base; out of state

Sec. 15. Under IC 22-4-4-2, remuneration paid to an employee in another state is considered in determining the taxable wage base limitation for a calendar year, if wages are paid to the same employee by the same employer in this state during that calendar year. (Department of Workforce Development; 646 IAC 5-6-15; filed Apr 26, 2011, 11:23 a.m.: 20110525-IR-646100464FRA)

Rule 7. Unemployment Benefits

646 IAC 5-7-1 Social Security; identification of claimant

Sec. 1. No individual will be eligible for a monetary determination of benefits without first providing the department with his or her Social Security number. (Department of Workforce Development; 646 IAC 5-7-1; filed Apr 26, 2011, 11:23 a.m.: 20110525-IR-646100464FRA)

646 IAC 5-7-2 Separating and base period employer notices; protests

Sec. 2. (a) Whenever an individual files an initial claim for unemployment benefits, the department shall issue a notice to the claimant's last employer prior to the filing of the claim, and to all of their base period employers, informing these employers of the filing of the claim, and requesting the submission of information regarding the claimant's separation from employment. This

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notice also informs the employers that their experience account is potentially chargeable for benefits paid to the claimant. (b) If the claimant has been separated for any of the following reasons, the employer shall file a protest setting forth the separation circumstances, and the form of protest, from publicly available department policy, will be set forth on the employer notice:

(1) Voluntarily left the employment without good cause in connection with the work. (2) Was discharged for just cause.

(3) Was discharged for gross misconduct in connection with his or her work. (4) Left due to the claimant's physical condition.

(5) Left to accept other employment. (6) Left to enter self-employment.

(c) An employer shall file a protest when the following circumstances exist with regard to a separated claimant; and the form of protest, from publicly available department policy, will be set forth on the employer notice:

(1) The claimant is entitled to: (A) vacation pay;

(B) payment in lieu of vacation; (C) standby pay; or

(D) wages in lieu of notice.

(2) The claimant is receiving, or will receive, retirement pay.

(3) There are other circumstances, of which the employer is aware, that are potentially disqualifying for claimant benefits. (d) An employer should not notify the department if the claimant was laid off, unless other issues, such as set forth in subsection (c), exist.

(e) An employer protest under this section must be filed with the department, as set forth on the notice, within ten (10) days of the mailing date of the notice. (Department of Workforce Development; 646 IAC 5-7-2; filed Apr 26, 2011, 11:23 a.m.: 20110525-IR-646100464FRA)

646 IAC 5-7-3 Minimum weekly benefits

Sec. 3. (a) In cases where an individual is paid the statutory minimum weekly benefit amount established under IC 22-4-12-2, although the individual's actual weekly benefit amount computes to less than the statutory minimum, the additional benefits paid shall not increase that individual's maximum benefit amount.

(b) If the individual is partially unemployed, the amount of benefits computed and paid to the individual will be the difference between the statutory minimum and the individual's deductible income for a particular week.

(c) In cases where an individual's actual computed weekly benefit amount is less than the statutory minimum, and a penalty suspension has been imposed under IC 22-4-15-1 or IC 22-4-15-2, the statutory weekly benefit amount language, relating to the lifting of the suspension, refers to the individual's actual computed weekly benefit amount, not to the statutory minimum. (Department of Workforce Development; 646 IAC 5-7-3; filed Apr 26, 2011, 11:23 a.m.: 20110525-IR-646100464FRA)

646 IAC 5-7-4 Backdating, cancellation, or withdrawal of claim

Sec. 4. Once a valid claim has been filed by an individual, during the benefit period established that individual cannot cancel, withdraw, or change the time of filing of the initial claim, a reopened claim, or an additional claim, for any purpose, other than administrative error on the part of department staff. (Department of Workforce Development; 646 IAC 5-7-4; filed Apr 26, 2011, 11:23 a.m.: 20110525-IR-646100464FRA)

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646 IAC 5-8-1 Partial or part-total unemployment

Sec. 1. (a) A claimant who applies for benefits due to partial or part-total unemployment is ineligible unless they can show that they are working less than their normal customarily scheduled hours for their regular employer.

(b) For purposes of this subsection, "normal customarily scheduled hours" means the hours to which the claimant has agreed to work. Any reduction in hours that regularly occurs as a matter of practice, policy, or procedure of which the claimant was aware and to which the claimant has agreed will not be considered partial or part-total unemployment.

(c) For purposes of this subsection, "regular employer" means an employing unit for which the claimant has performed services in the last twenty-six (26) weeks, except as provided under federal law. (Department of Workforce Development; 646 IAC 5-8-1; filed Apr 26, 2011, 11:23 a.m.: 20110525-IR-646100464FRA)

646 IAC 5-8-2 Leave of absence

Sec. 2. (a) Where an individual takes a voluntary leave of absence, with the consent of the employer, it shall not constitute voluntarily leaving work without good cause within the meaning of IC 22-4-15-1. However, no benefit or waiting period weeks may be accumulated during that period, unless the individual terminates the leave of absence by notifying the employer and becomes available for work.

(b) A leave of absence for a disability granted to an individual by an employer pursuant to the employer's rule or pursuant to terms of a collective bargaining agreement shall be deemed terminated on the day following the disability when the individual again becomes mentally and physically able to work and available for work and establishes their ability to work and availability for work. (Department of Workforce Development; 646 IAC 5-8-2; filed Apr 26, 2011, 11:23 a.m.: 20110525-IR-646100464FRA)

646 IAC 5-8-3 Voluntary quit; general

Sec. 3. A claimant will not be considered to have voluntarily left employment for good cause in connection with the work unless the claimant can establish that a reasonable individual in the same or similar circumstances would also have left the employment. (Department of Workforce Development; 646 IAC 5-8-3; filed Apr 26, 2011, 11:23 a.m.: 20110525-IR-646100464FRA)

646 IAC 5-8-4 Voluntary quit; good cause

Sec. 4. (a) A voluntary quit due to excessive discipline, or inappropriate comments or conduct by managers or coworkers, will not constitute good cause in connection with the work unless the claimant can establish that an individual in the same or similar circumstances would reasonably believe that the:

(1) conduct was severe and pervasive; (2) conduct:

(A) was motivated by the claimant's: (i) race;

(ii) age; (iii) sex;

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(v) religious beliefs; or other status protected by law;

(B) endangered the claimant's physical safety; or (C) endangered the claimant's mental health; and

(3) claimant reported the conduct pursuant to the employer's procedures, if any, but no employer action was taken within a reasonable period of time.

(b) An individual who quits employment in anticipation of an imminent discharge does so with good cause if the: (1) claimant establishes that the discharge was imminent; and

(2) employer fails to establish that the imminent discharge would have been for just cause.

(c) If an employer gives an employee the opportunity to submit a resignation from employment, rather than be discharged, and the employee resigns, this is a quit in lieu of discharge, and the separation will be analyzed under the discharge for just cause criteria, as the employer is the moving party in the separation. (Department of Workforce Development; 646 IAC 5-8-4; filed Apr 26, 2011, 11:23 a.m.: 20110525-IR-646100464FRA)

646 IAC 5-8-5 Discharge; work rules

Sec. 5. A work rule will be found to be reasonable if it: (1) is lawful;

(2) is related to the employer's business operations;

(3) is intended by the employer to broadly apply to classes, categories, or all employees; (4) does not create a harsh or unconscionable requirement for employees.

646 IAC 5-8-6 Discharge; breach of duty

Sec. 6. (a) In order to qualify as a breach of duty for unemployment insurance purposes, the duty must be: (1) reasonably connected to the work;

(2) reasonably owed to the employer by the employee; and

(3) of such a nature that a reasonable employee would recognize a violation of the duty, and would understand that such a violation of the duty would subject the individual to discharge.

(b) A breach of duty reasonably owed to an employer includes, but is not limited to, conduct which establishes that the claimant:

(1) damaged the employer's trust and confidence in the claimant's ability to effectively perform the job; (2) willfully failed to meet the employer's reasonable expectation;

(3) chose a course of action that the claimant knew, or should have known, would negatively impact the employer's financial interests;

(4) demonstrated an intentional or substantial disregard for the employer's interests;

(5) intentionally or knowingly injured, or attempted to injure, the employer's financial interests;

(6) intentionally chose a course of action that pitted the claimant's interests against the employer's interests to the detriment of the employer; or

(7) showed carelessness or negligence to such a degree, or with such recurrence, as to cause damage to the employer's interests.