CHAPTER 440

An Act to amend and reenact §§ 60-12, 60-14 as amended, 60-20 as
amended, 60-22 as amended, 60-25, 60-39, 60-42 as amended, 60-45 as
amended, 60-46 as amended, 60-47 as amended, 60-63 as amended,
60-64, 60-67 as amended, 60-68 as amended, 60-70 as amended, 60-76.1,
60-81, 60-88, 60-96, 60-97 and 60-98 of the Code of Virginia, and to
amend the Code by repealing §§ 60-6, 60-8 and 60-45 as amended, and
adding four new sections numbered 60-6.1, 60-8.1, 60-45.2 and 60-76.2,
the amended, repealed and new sections pertaining to the “Virginia
Unemployment Compensation Act’ and relating respectively to the
definition of employer, the definition of employment, the definition of
unemployment, the definition of wages, contingencies affecting the
operations of the title, State-federal co-operation, the weekly benefit
amount, the duration of benefits, the eligibility for benefits, the dts-
qualification for benefits, the amount of taxes, the use of collections in
financing administrative expenditures, the eligibility of employers for
a reduction in the maximum contribution rate, the individual’s benefit
wages, the employer’s benefit wage ratio, the reduced contribution
rate permissible under federal amendment, refunds, the termination
of coverage, the moneys constituting Unemployment Compensation
Administrative Fund, expenditures solely for costs of administration,
the replacement of funds lost or expended for unnecessary purposes,
the definition of base period, the definition of benefit year, the duration
of benefits and the computation of the contribution rate of delinquent
employers.

[S 35]

Approved March 30, 1956

Be it enacted by the General Assembly of Virginia:
1. That §§ 60-12, 60-14 as amended, 60-20 as amended, 60-22 as amended,
60-25, 60-39, 60-42 as amended, 60-45 as amended, 60-46 as amended, 60-47
as amended, 60-63 as amended, 60-64, 60-67 as amended, 60-68 as amended,
60-70 as amended, 60-76.1, 60-81, 60-83, 60-96, 60-97, and 60-98 of the Code
of wirginia be amended and re-enacted, the amended sections being as
follows:

§ 60-12. Employer.—Employer” means:

(1) With respect to the years 1987 to 1955, inclusive, any employing
CH. 440] ACTS OF ASSEMBLY 629

unit which for some portion of a day, but not necessarily simultaneously,
in each of twenty different weeks whether or not such weeks are or were
consecutive, within either the current or the preceding calendar year, has
or had in its employment eight or more individuals, irrespective of whether
the same individuals are or were employed in each such day;

On and after January 1, 1956, any employing unit which for some
portion of a day, but not necessarily simultaneously, in each of twenty
different weeks within either the current or preceding calendar year, but
not prior to the calendar year 1956, has or had in its employment, four or
more individuals, irrespective of whether the same individuals are or were
employed in each such day;

(2) Any employing unit which acquired the organization, trade,
separate establishment or business or substantially all the assets thereof,
of snpther which at the time of such acquisition was an employer subject to
this title;

(3) Any employing unit which acquired the organization, trade or
business, or substantially all the assets thereof, of another employing unit
and which, if treated as a single unit with such other employing unit, would
be an employer under paragraph (1) of this section;

(4) Any employing unit which together with one or more other em-
ploying units, is owned or controlled, by legally enforceable means or
otherwise, directly or indirectly by the same interests, or which owns or
controls one or more other employing units, by legally enforceable means
or otherwise, and which if treated as a single unit with such other employ-
ing unit, would be an employer under paragraph (1) of this section;

(5) Any employing unit which, having become an employer under
paragraphs (1), (2), (8) or (4) of this section, has not, under § 60-83,
ceased to be an employer subject to this title; or

(6) For the effective period of its election pursuant to § 60-84, any
pace employing unit which has elected to become fully subject to this

itle; or

(7) Any employing unit which for some portion of a day within the
current calendar year has or had in employment one or more individuals;
provided, that this paragraph shall be effective only from the time such
employing unit shall be subject to the pay roll tax imposed by section *
3301 of the Federal Internal Revenue Code or to any other federal tax
against which credit may be taken by such employing unit for contribu-
tions paid into a State unemployment compensation fund.

This section shall not be construed as expressing a desire by the Gen-
eral Assembly that a federal law be enacted subjecting employers of less
than eight individuals to the provisions of the federal unemployment tax.

§ 60-14. Employment.—(1) ‘Employment’ means any service per-
formed prior to January first, nineteen hundred forty, which was employ-
ment as defined in this section prior to such date, and subject to the other
provisions of this section, service performed after December thirty-first,
nineteen hundred thirty-nine, including service in interstate commerce,
performed for remuneration or under any contract of hire, written or oral,
express or implied; and any service, of whatever nature, performed after
December thirty-first, nineteen hundred forty-seven, by any individual for
any employing unit, for remuneration or under any contract of hire, written
or oral, «nd irrespective of citizenship or residence of either,

(a) Within the United States or

(b) On or in connection with an American vessel under a contract of
service which is entered into within the United States or during the per-
formance of which the vessel touches at a port in the United States, if
such individual performs such services on or in connection with such vessel
when outside the United States, provided that the operating office, from
630 ACTS OF ASSEMBLY [va., 1956

which the operations of the vessel are ordinarily and regularly supervised,
managed, directed and/or controlled, is within the Commonwealth.

. (2) The term “employment” shall include an individual’s entire serv-
ice, performed within or both within and without this State if:

(a) The service is localized in this State; or

(b) The service is not localized in any state but some of the service is
performed in this State and (i) the base of operations, or, if there is no
base of operations, then the place from which such service is directed or
controlled, is in this State; or (ii) the base of operations or place from
which such service is directed or controlled is not in any state in which
some part of the service is performed, but the individual’s residence is in
this State.

(3) Services performed within this State and not covered under para-
graph (2) of this section shall be deemed to be employment subject to this
title if contributions are not required and paid with respect to such services
under an unemployment compensation law of any other state or of the
federal government.

(4) (a) Services not covered under paragraph (2) of this section,
and performed entirely without this State, with respect to no part of which
contributions are required and paid under an unemployment compensation
law of any other state or of the federal government, shall be deemed to be
employment subject to this title if the individual performing such services
is a resident of this State and the Commission approves the election of the
employing unit for whom such services are performed that the entire
fervite at such individual shall be deemed to be employment subject to

is title.

(b) Services covered by an arrangement between the Commission
and the agency charged with the administration of any other state or
federal unemployment compensation law, pursuant to which all services
performed by an individual for an employing unit are deemed to be per-
formed entirely within this State shall be deemed to be employment if
the Commission has approved an election of the employing unit for whom
such services are performed, pursuant to which the entire service of such
individual during the period covered by such election is deemed to be
insured work.

(c) The Commission is hereby authorized to enter into reciprocal
arrangements with appropriate and duly authorized agencies of other
states or the federal government, or both, whereby services performed
by an individual for a single employing unit for which services are cus-
tomarily performed in more than one state shall be deemed to be services
performed entirely within any one of the states (i) in which any part of
such individual’s service is performed or (ii) in which such individual
has his residence or (iii) in which the employing unit maintains a place
of business, provided there is in effect, as to such services, an election,
approved by the agency charged with the administration of such state’s
unemployment compensation law, pursuant to which all the services per-
formed by such individual for such employing unit are deemed to be
performed entirely within such state.

(d) To the extent permissible under the laws and Constitution of this
State and the United States the Commission is authorized to enter into or
cooperate in arrangements whereby facilities and services provided under
this title and facilities and services provided under the unemployment
compensation law of any foreign government established on the continent
of North America, may be utilized for the taking of claims and the pay-
ment of benefits under the Virginia Unemployment Compensation Act
or under a similar law of such foreign government.

(5) Service shall be deemed to be localized within a state if:
CH. 440] ACTS OF ASSEMBLY 631

(a) The service is performed entirely within such state; or

(b) The service is performed both within and without such state, but
the service performed without such state is incidental to the individual’s
service within the state, for example is temporary or transitory in nature
or consists of isolated transactions.

___ Services performed outside the state in which the base of operations
is located shall be deemed to be incidental to the services performed within
such state.

(6) Services performed by an individual for remuneration shall be
deemed to be employment subject to this title unless:

(a) Such individual has been and will continue to be free from con-
trol or direction over the performance of such services, both under his
contract or service and in fact; and

(b) Such service is either outside the usual course of the business
for which such service is performed, or such service is performed outside
of all the places of business of the enterprise for which such service is per-
formed; or such individual, in the performance of such service, is engaged
in an independently established trade, occupation, profession or business.

(7) The term “employment”, after December thirty-first, nineteen
hundred fifty-one, shall not include:

(a) Service performed in the employ of a state, or of any political
subdivision thereof, or of any instrumentality of any one or more of the
foregoing which is wholly owned by one or more states or political sub-
divisions; and any service performed in the employ of any instrumentality
of one or more other states or their political subdivisions to the extent
that the instrumentality is, with respect to such service, immune under the
Constitution of the United States from the tax imposed by section * 3301
of the Federal Internal Revenue Code;

(b) Service performed in the employ of the United States Govern-
ment or of any instrumentality of the United States which is wholly
owned by the United States;

(c) Service with respect to which unemployment compensation is
payable under an unemployment compensation system established by an
act of Congress, including service performed after June thirtieth, nineteen
hundred thirty-nine, for an employer determined to be subject to the
Railroad Unemployment Insurance Act by the agency or agencies em-
powered to make such determination by an act of Congress, and service
as an employer representative determined to be subject to such act by such
agency or agencies; provided, that the Commission is hereby authorized
and directed to enter into agreements with the proper agencies under
such act of Congress, which agreements shall become effective ten days
after publication thereof in the manner provided in § 60-30 for general
rules, to provide reciprocal treatment to individuals who have, after
acquiring potential rights to benefits under this title acquired rights to
unemployment compensation under such act of Congress, or who have,
after acquiring potential rights to unemployment compensation under
such act of Congress, acquired rights to benefits under this title;

(d) Agricultural labor as defined in § 60-3;

(e) Domestic service in a private home, local college club or local
chapter of a college fraternity or sorority;

(f) Service performed on or in connection with a vessel not an
American vessel by an employee, if the employee is employed on and in
connection with such vessel when outside the United States;

(f1) Service performed by an individual in, or as an officer or mem-
ber of the crew of a vessel while it is engaged in, the catching, taking,
harvesting, cultivating or farming of any kind of fish, shellfish, crustacea,
sponges, seaweeds or other aquatic forms of animal and vegetable life,
632 ACTS OF ASSEMBLY [va., 1956

including service performed by any such individual as an ordinary incident
to any such activity, except (i) service performed in connection with the
catching or taking of salmon or halibut, for commercial purposes, and (ii)
service performed on or in connection with a vessel of more than ten net
tons, determined in the manner provided for determining the register
tonnage of merchant vessels under the laws of the United States;

(g) Service performed by an individual in the employ of his son,
daughter, or spouse, and service performed by a child under the age of
twenty-one in the employ of his father or mother ;

(h) Service performed in the employ of a corporation, community
chest, fund or foundation organized and operated exclusively for religious,
charitable, scientific, literary or educational purposes, or for the prevention
of cruelty to children or animals, no part of the net earnings of which
inures to the benefit of any private shareholder or individual ;

(i) Service performed in any calendar quarter in the employ of any
organization exempt from income tax under * Sections 501 and 502 of the
Federal Internal Revenue Code, if (i) the remuneration for such service
does not exceed forty-five dollars; or (ii) such service is in connection with
the collection of dues or premiums for a fraternal beneficiary society,
order, or association, and is performed away from the home office, or is
ritualistic service in connection with any such society, order, or association ;
or (iii) such service is performed by a student who is enrolled and is
regularly attending classes at a school, college, or university ;

(j) Service performed in the employ of an agricultural or horti-
cultural organization exempt from income tax under Section * 501 (c) (5)
of the Federal Internal Revenue Code;

(k) Service performed in the employ of a voluntary employees’ bene-
ficiary association providing for the payment of life, sick, accident, or other
benefits to the members of such association or their dependents, if (i) no
part of its net earnings inures (other than through such payments) to the
benefit of any private shareholder or individual, and (ii) eighty-five per
centum or more of the income consists of amounts collected from members
for the sole purpose of making such payments and meeting expenses;

Service performed in the employ of a voluntary employees’ beneficiary
association providing for the payment of life, sick, accident, or other bene-
fits to the members of such association or their dependents or their desig-
nated beneficiaries, if (i) admission to membershp in such association is
limited to individuals who are officers or employees of the United States
Government, and (ii) no part of the net earnings of such association in-
ures (other than through such payments) to the benefit of any private
shareholder or individual;

Service performed in any calendar quarter in the employ of a school,
college or university, not exempt from income tax under Section * 501 of
the Federal Internal Revenue Code, if such service is performed by a
student who is enrolled and is regularly attending classes at such school,
college or university, and the remuneration for such service does not exceed
forty-five dollars exclusive of room, board and tuition;

(1) Service performed as a student in the employ of a hospital or a
nurses’ training school by an individual who is enrolled and is regularly
attending classes in a nurses’ training school chartered or approved pur-
suant to State law; and service performed as an interne in the employ of
a hospital by an individual who has completed a four years’ course in a
medical school chartered or approved pursuant to State law;

(m) Service performed by an individual under the age of eighteen in
the delivery or distribution of newspapers or shopping news, not including
delivery or distribution to any point for subsequent delivery or distribution ;

(n) Service performed by an individual for an employing unit as an
CH. 440] ACTS OF ASSEMBLY 633

insurance agent or as an insurance solicitor, if all such service performed
by such individual for such employing unit is performed for remuneration
solely by way of commission;

(0) Service performed by an individual for an employing unit as a
real estate salesman, if all such service performed by such individual for
such employing unit is performed for remuneration solely by way of com-
mission. This paragraph (0) shall also apply to such service performed
since January first, nineteen hundred thirty-seven.

(p) Service covered by an arrangement between the Commission and
the agency charged with the administration of any other state or federal
unemployment compensation law pursuant to which all services performed
by an individual for an employing unit during the period covered by such
employing unit’s duly approved election are deemed to be performed en-
tirely within such agency’s state or under such federal law.

(q) Service performed by an individual for an employing unit as an
agent in the wholesale distribution and sale of gasoline and other petroleum
products, if all such service performed by such individual for such employ-
ing unit is performed for remuneration solely by way of commission.

(r) Service not in the course of the employer’s trade or business per-
formed in any calendar quarter by an employee, unless the cash remunera-
tion paid for such service is fifty dollars or more and such service is per-
formed by an individual who is regularly employed by such employer to
perform such service. For the purposes of this paragraph, an individual
shall be deemed to be regularly employed by an employer during a calendar
quarter only if (i) on each of some twenty-four days during such quarter
such individual performs for such employer for some portion of the day
service not in the course of the employer’s trade or business, or (ii) such
individual was regularly employed (as determined under clause (i)) by
such employer in the performance of such service during the preceding
calendar quarter.

§ 60-20. Unemployment.—An individual shall be deemed “unem-
ployed” in any week during which he performs no services and with respect
to which no wages are payable to him, or in any week of less than full-time
work if the wages payable to him with respect to such week are less than
his weekly benefit amount. Wages shall be deemed payable to an individual
with respect to any week for which wages are due, or with respect to any
week for which the payment of wages is contingent on the receipt of un-
employment benefits for such week under this Act. An individual’s week
of unemployment shall be deemed to commence only after his registration at
an employment office, except as the Commission may by regulation other-
wise prescribe.

§ 60-22. Wages.—‘Wages” means all remuneration payable for per-
sonal services, including commissions * , unemployment benefits under any
private plan financed in whole or in part by an employer, bonuses and the
cash value of all remuneration payable in any medium other than cash.
The reasonable cash value of remuneration payable in any medium other
than cash shall be estimated and determined in accordance with rules
prescribed by the Commission. But the term “wages” shall not include:

(1) Subsequent to the thirty-first day of December, nineteen hundred
fifty, for purposes of contributions only, that part of the remuneration
which, after remuneration (other than remuneration referred to in the
succeeding paragraphs of this section) equal to three thousand dollars is
payable during any calendar year to an individual by an employer with re-
spect to employment, is payable during such calendar year to such indi-
vidual by such employer with respect to employment in this Commonwealth
or any other state. If an employer (hereinafter referred to as successor
employer) during any calendar year acquires substantially all of the prop-
erty used in a trade or business of another employer (hereinafter referred
to as a predecessor), or used in a separate unit of a trade or business of a
predecessor, and immediately after the acquisition employs in his trade or
business an individual who immediately prior to the acquisition was em-
ployed in the trade or business of such predecessor, then, for the purpose
of determining whether remuneration (other than remuneration referred
to in the succeeding paragraphs of this section) with respect to employ-
ment equal to three thousand dollars is payable by the successor to such
individual during such calendar year, any remuneration (other than re-
muneration referred to in the succeeding paragraphs of this section) with
respect to employment payable (or considered under this paragraph as pay-
able) to such individual by such predecessor during such calendar year and
prior to such acquisition shall be considered as payable by such successor
employer.

(2) The amount of any payment (including any amount paid by an
employer for insurance or annuities, or into a fund, to provide for any
such payment) made to, or on behalf of, an employee or any of his
dependents under a plan or system established by an employer which
makes provisions for his employees generally (or for his employees gen-
erally and their dependents) or for a class or classes of his employees (or
for a class or classes of his employees and their dependents), on account
of (a) retirement, or (b) sickness or accident disability, or (c) medical
or hospitalization expenses in connection with sickness or accident dis-
ability, or (d) death;

The payment by an employer (without deduction from the re-
muneration of the employee) of the tax imposed upon an employer under
Section * 3101 of the Federal Internal Revenue Code;

(4) Dismissal payments made prior to January first nineteen hun-
dred fifty-six which the employer * was not legally required to make;

(5) Any payment on account of sickness or accident disability, or
medical or hospitalization expenses in connection with sickness or accident
disability, made by an employer to, or on behalf of, an employee after the
expiration of six calendar months following the last calendar month in
which the employee worked for such employer. Provided, however, that
this subsection shall be applicable only with respect to remuneration paid
after 1950;

(6) Remuneration paid in any medium other than cash to an employee
for service not in the course of the employer’s trade or business; or

(7) Any payment (other than vacation or sick pay) made to an
employee after the month in which he attains the age of sixty-five, if he
did not work for the employer in the period for which such payment is
made.

§ 60-25. Contingencies affecting operation of title—lIn the event that
* Chapter 28 of the Internal Revenue Code is repealed, amended or other-
wise changed by the Congress of the United States, or is finally adjudged
invalid or unconstitutional by the Supreme Court of the United States,
with the result that no portion of the contributions required by this title
can be credited against any tax imposed by * Chapter 28 of the Internal
Revenue Code, then the Governor shall, within 60 days from the date of
such repeal, amendment or change, or from the date that such act is so
finally adjudged invalid or unconstitutional, by proclamation so state, and
upon the issuance of such proclamation, the provisions of this title shall
expire by limitation and thereafter have no force and effect, except that
the Commission shall thereupon requisition all moneys standing to the
credit of the State in the unemployment trust fund established by section
nine hundred and four of the Social Security Act and all such moneys so
refunded, repaid or returned to the State, together with such other money
CH. 440] ACTS OF ASSEMBLY 635

paid to the State as contributions under the terms of this title and then
held by the State, less the cost of making the refund and repayment, shall
forthwith be refunded or repaid by the State Treasurer, upon warrants of
the Comptroller, issued upon vouchers signed by the chairman of the Com-
mission, or such other person or persons as the Commission shall designate
for such purpose, to the individual employers who have paid contributions
under the terms of this title ratably in proportion to the amounts contrib-
uted by each such employer.

In the event that the * Secretary of Labor of the United States shall
withdraw * his approval of this title, with the result that no portion of
the contributions required by this title with respect to employment during
any year can be credited against any tax imposed by * Chapter 23 of the
Internal Revenue Code with respect to employment for such year, the pro-
visions of this title requiring the payment of contributions shall become
and remain suspended until such credit can be had.

§ 60-39. State-Federal cooperation.—In the administration of this
title, the Commission shall cooperate to the fullest extent consistent with
the provisions of this title, with the * United States Department of Labor;
shall make such reports, in such form and containing such information as
the * United States Department of Labor may from time to time require,
and shall comply with such provisions as the * United States Department
of Labor may from time to time find necessary to assure the correctness
and verification of such reports; and shall comply with the regulations
prescribed by the * United States. Department of Labor governing the
expenditures of such sums as may be allotted and paid to this State under
Title III of the Social Security Act for the purpose of assisting in the
administration of this title.

The Commission shall further make its records available to the Rail-
road Retirement Board, created by the Railroad Retirement Act and the
Railroad Unemployment Insurance Act, and shall furnish to the Railroad
Retirement Board at the expense of the Railroad Retirement Board, such
copies thereof as the Board shall deem necessary for its purposes in accord-
ance with the provisions of section three hundred and three-(c) of the
Social Security Act as amended.

The Commission may afford reasonable cooperation with every agency
of the United States charged with the administration of any unemployment
insurance law.

Upon request therefor, the Commission shall furnish to any agency
of the United States charged with the administration of public works or
assistance through public employment, the name, address, ordinary occu-
pation, and employment status of each recipient of benefits and such
recipient’s rights to further benefits under this title.

§ 60-42. Weekly benefit amount.—With respect to all claims filed
on or after the effective date of this section, * an eligible individual’s weekly
“benefit amount” shall be the amount appearing in Column B in the “Benefit
Table” in this section on the line on which in Column A of such table, there
appears the total wages for insured work earned by such individual in that
quarter of his base period in which such total wages were highest. * With
respect to all claims filed prior to the effective date of this section an eligible
individual’s weekly “benefit amount” shall be computed under the pro-
visions of this section in force on the date such claim was filed.
[vA., 1956

ACTS OF ASSEMBLY

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(penumu0y)—"TITIGWVT TTAWNaG
§ 60-45. Duration of benefits.—With respect to all claims filed on or
after the effective date of this section, the maximum total amount of bene-
fits payable to any individual during any benefit year shall be determined
from the “Benefit Table” shown in § 60-42, but in no case shall such maxi-
mum for any one separation from an employer deemed responsible for the
individual’s current period of unemployment as defined in § 60-68, regard-
less of the benefit year, exceed * eighteen times such individual’s weekly
benefit amount. Such determination shall be based only upon wages earned
in insured work during such individual’s base period. The Commission
shall maintain a separate account for each individual who subsequent to
January first, 1937, earns wages in insured work. After the expiration of
each calendar quarter the Commission shall credit each individual’s account
with the wages earned by him in insured work in such calendar quarter.
Provided, however, with respect to all claims filed prior to the effective
date of this section the maximum total amount of benefits payable to any
individual during any benefit year shall be determined under the provisions
of this section in force on the date such claim was filed.

§ 60-46. Benefit eligibility conditions—An unemployed individual
shall be eligible to receive benefits with respect to any week only if the
Commission finds that:

(a) He has registered for work and thereafter has continued to report
at an employment office in accordance with such regulations as the Com-
mission may prescribe, except that the Commission may, by regulation,
waive or alter either or both of the requirements of this subsection as to
such types of cases or situations with respect to which it finds that com-
pliance with such requirements would be oppressive, or would be incon-
sistent with the purposes of this title.

(b) He has made a claim for benefits in accordance with such regu-
lations as the Commission may prescribe.

(c) He is able to work, and is available for work.

(d) He has served a waiting period of one week during which he was
eligible for benefits under this section in all other respects, and has not
received benefits ; except that only one waiting period week shall be required
of such individual within any benefit year.

(e) He has within his base period earned wages in employment for
employers equal to not less than the amount appearing in Column C of the
“Benefit Table” appearing in § 60-42 on the line which extends through
Division D on which in Column B of the “Benefit Table” appears his weekly
benefit amount.

(f) He is not receiving, has not received or is not seeking

(1) unemployment benefits under an unemployment compensation law
of any other state or of the United States, provided, however, that if the
appropriate agency of such other state or of the United States finally
determines that he is not entitled to such unemployment benefits, this sub-
section shall not apply.

(9) Heis not ona bona fide vacation.

§ 60-47. Disqualification for benefits—An individual shall be dis-
qualified for benefits, but only after having served a waiting period as
provided in § 60-46:

(a) For * seven consecutive weeks, if it is determined by the Com-
mission that such individual is, during any week for which he claims bene-
fits, unemployed because he left work voluntarily without good cause.

(b) For not less than * seven nor more than * eleven consecutive
weeks, if it is determined that such individual is, during any week for
which he claims benefits, unemployed because he has been discharged for
misconduct connected with his work.

(c) For not less than * seven nor more than * eleven consecutive
weeks, if it is determined by the Commission that such individual has
failed, without good cause, either to apply for available, suitable work
when so directed by the employment office or the Commission or to accept
suitable work when offered him. A disqualification under this subsection
shall be imposed for weeks following the weeks during which any dis-
qualification may have been imposed under subsections (a) or (b) of this
section.

In determining whether or not any work is suitable for an individual,
the Commission shall consider the degree of risk involved to his health,
safety and morals, his physical fitness and prior training, his experience,
his length of unemployment and the accessibility of the available work
from his residence.

Notwithstanding any other provisions of this title, no work shall be
deemed suitable and benefits shall not be denied under this title to any
otherwise eligible individual for refusing to accept new work under any
of the following conditions: (1) If the position offered is vacant due di-
rectly to a strike, lockout, or other labor dispute; (2) if the wages, hours
or other conditions of the work offered are substantially less favorable to
the individual than those prevailing for similar work in the locality; (3)
if as a condition of being employed the individual would be required to
join a company union or to resign from or refrain from joining any bona
fide labor organization.

(d) For any week with respect to which the Commission finds that
his total or partial unemployment is due to a stoppage of work which exists
(1) because of a labor dispute at the factory, establishment, or other
premises (including a vessel) at which he is or was last employed, or (2)
because of a labor dispute at a factory, establishment or other premises
(including a vessel) either within or without this State, which (a) is owned
or operated by the same employing unit which owns or operates the prem-
ises at which he is or was last employed and (b) supplies materials or
services necessary to the continued and usual operation of the premises at
which he is or was last employed, provided that this subsection shall not
apply if it is shown to the satisfaction of the Commission that:

(1) He is not participating in or financing or directly interested in the
labor dispute which caused the stoppage of work; and

(2) He does not belong to a grade or class of workers of which, im-
mediately before the commencement of the stoppage, there were members
employed at the premises (including a vessel) at which the stoppage occurs,
any of whom are participating in or financing or directly interested in the

ispute.

Provided, that if in any case separate branches of work which are
commonly conducted as separate businesses in separate premises are con-
ducted in separate departments of the same premises, each such department
shall, for the purposes of this subsection, be deemed to be a separate
factory, establishment or other premises. Provided further, that mere
membership in a union, or the payment of regular dues to a bona fide labor
organization, shall not alone constitute financing a labor dispute.

(e) When an individual is disqualified for benefits under subsections
(a) or (b) or (c) of this section, the total amount of benefits to which he
may otherwise be entitled in accordance with §§ 60-41 to 60-45 shall be
reduced by an amount equal to the product of the number of weeks for
which he shall be disqualified multiplied by his weekly benefit amount.

§ 60-638. Amount of taxes; increase of rate-—Each employer shall
pay taxes equal to the following percentages of wages payable by him with
respect to employment:

(1) One and eight-tenths per centum with respect to employment
during the calendar year nineteen hundred thirty-seven.
(2) Except as otherwise provided in § 60-66, two and seven-tenths per
centum with respect to employment during the calendar year nineteen
hundred thirty-eight and during each succeeding calendar year, after De-
cember thirty-first, nineteen hundred thirty-nine wages payable beyond the
last pay period in December shall be considered as wages earned and
payable in the first pay period of the succeeding year, and included in re-
ports required for the first reporting period of such year.

(3) If the federal unemployment tax act is at any time amended to
permit a higher maximum rate of credit against the federal tax now levied
under Section * 3301 of the Internal Revenue Code, or that may hereafter
be levied under any subsequent amendment, or amendments thereto, than is
now permitted under Section * 3302 of the Internal Revenue Code, to an
employer with respect to any state unemployment compensation law whose
standard contribution rate on payroll under such law is more than two and
seven-tenths per centum, in that event the standard contribution rate as
to all employers under this title shall, by Commission rule promulgated
under § 60-30, be increased from two and seven-tenths per centum on wages
to that percentage on wages which corresponds to the higher maximum
rate of credit thus permitted against the federal unemployment tax; and
such increase shall become effective on the same date as such higher maxi-
mum rate of credit becomes permissible under such federal amendment.

(4) If the federal unemployment tax act is at any time amended so
as to increase the rate of excise tax each employer shall pay with respect
to having individuals in his employ, the Commission may by rules promul-
gated under § 60-30, increase the rate of contributions under this title to
the rate which corresponds to the highest maximum rate of credit permitted
against such higher federal unemployment excise tax; and such increase
shall become effective on the same date as such higher rate of federal
unemployment excise tax becomes effective.

§ 60-64. Use of collections in financing administrative expenditures.—
If section three hundred three (a) (5) of Title III of the Social Security
Act and Section * 3304 (4) of the Internal Revenue Code are amended to
permit a state agency to use, in financing administrative expenditures in-
curred in carrying out its employment security functions, some part of
the moneys collected or to be collected under the state unemployment com-.
pensation law, in partial or complete substitution for grants under said
Title III, in that event this title shall, by Commission proclamation and
rules to be issued with the Governor’s approval, be modified in the manner
and to the extent and within the limits necessary to permit such use by
the Commission under this title; and such modifications shall become
effective on the same date as such use becomes permissible under such
federal amendments.

§ 60-67. General provisions.—For each calendar year commencing
after December thirty-first, nineteen hundred * fifty-six, the contribution
rate of each employer, whose experience rating account has been chargeable
with * benefit wages throughout the most recent * completed calendar
* year, shall be computed as hereinafter provided. For the purposes of this
article the payrolls, contributions and benefit experience of all employers
subject to the provisions of the Federal Railroad Unemployment Insurance
Act shall be excluded in all computations to determine contribution rates.
The Commission shall notify each such employer of his contribution rate for
such calendar year not later than fifteen days prior to the due date of the
first contribution with respect to employment in such calendar year, but the
failure of any such employer to receive such notice shall not relieve him
from liability for such contribution.

§ 60-68. Individual’s benefit wages.—Effective May first, nineteen
hundred * fifty-six, when in any benefit year an individual is paid benefits
CH. 440] ACTS OF ASSEMBLY 641

equal to three times his weekly benefit amount his wages during his base
period shall be termed the individual's “benefit wages”. If such individual’s
unemployment is caused by separation from an employer subject to this
title, such individual’s “benefit wages” shall be treated for the purposes of
this article as though they had been paid by such employer in the calendar
year in which such benefits are first paid. The employer from whom such
individual was separated resulting in the current period of unemployment,
shall be the most recent employer for whom such individual has per-
formed services for remuneration during thirty days, whether or not such
days are consecutive. For the purposes of this article, “benefit wages”
shall include only the first * two thousand and sixteen dollars of wages re-
ee by any one individual from all employers in such individual’s base
period.

An individual’s “benefit wages” shall not be treated as though they had
been paid by an employer subject to this title if such employer is deemed to
have paid, under this section, other “benefit wages’ of such individual
arising out of the same separation from work.

§ 60-70. Benefit wage ratio.—The “benefit wage ratio’? of each em-
ployer shall be the percentage equal to the employer’s benefit wages for the
most recent * completed calendar * year, divided by the total of his annual
* payroll * for the same * year except that for an employer whose account

been chargeable with benefit wages for three or more consecutive com-
pleted calendar years, the “benefit wage ratio” shall be the percentage
equal to the employers benefit wages for the most recent three consecutive
completed calendar years, divided by the total of his annual payrolls for
the same three years, and for an employer whose account has been charge-
able with benefit wages for two but less than three consecutive completed
calendar years the “benefit wage ratio” shall be the percentage equal to the
employer’s benefit wages for the most recent two completed calendar years
divided by his annual payroll for the same two years. The term “annual
payroll (s)” as used herein means the payroll on which contributions have
been paid on or before January $1 of the calendar year with respect to
which his contribution rate is being computed.

§ 60-76.1. Reduced contribution rate permissible under federal
amendment.—Notwithstanding the preceding provisions of this chapter, if
Section * 3303 of the Internal Revenue Code is amended so as to permit the
allowance of an additional credit under Section * 3302 (b) of the Internal
Revenue Code to employers not otherwise eligible for a reduced rate by
reason of the lapse of insufficient time since first becoming subject to this
title, in that event the Commission, by a regulation promulgated under
§ 60-30, shall fix and determine the contribution rate of all such employers
at such reduced rate as shall then be permissible under such Federal amend-
ment.

§ 60-81. Refunds.—If not later than two years after the date on which
any contributions or interest thereon are paid, an employing unit which
has paid such contributions or interest thereon shall make application for
adjustment thereof in connection with subsequent contribution payments,
or for a refund thereof because such adjustment cannot be made, and the
Commission shall determine that such contributions or interest or any
portion thereof was erroneously collected, the Commission shall allow such
employing unit to make an adjustment thereof, without interest, in con-
nection with subsequent contribution payments by him, or if such adjust-
ment cannot be made the Commission shall refund the amount, without
interest, from the fund. For like cause and within the same period, adjust-
ment or refund may be so made on the Commission’s own initiative.

In any case where the Commission finds that any employing unit has
erroneously paid to this State contributions or interest upon wages earned
642 ACTS OF ASSEMBLY [va., 1956

by individuals in employment in another state, or under the provisions of
the Federal Railroad Unemployment Insurance Act, refund or adjustment
thereof shall be made, without interest, and without regard to the due date
thereof, upon satisfactory proof to the Commission that payment of such
contributions or interest has been made to such other jurisdiction.

_ In any case where the Commission finds that an instrumentality of the
United States has paid to this State contributions or interest upon wages
for any year with respect to which this State is not certified by the * Secre-
tary of Labor of the United States under Section * 3304 of the Internal
Revenue Code, refund thereof shall be made to such instrumentality, with-
out interest, and without regard to the date of payment.

_ § 60-83. Termination of coverage.—Except as otherwise provided in
this section and § 60-84, an employing unit shall cease to be an employer
subject to this title as of the first day of January of any calendar year,
only if it files with the Commission, prior to the second day of February of
such year, a written application for termination of coverage and the Com-
mission finds that there were no twenty different days, each day being in
a different week within the preceding calendar year, within which such
employing unit employed * four or more individuals in employment subject
to this title. For the purpose of this section, the two or more employing
units mentioned in subsections (3) or (4) of § 60-12 shall be treated as
a single employing unit.

On and after January first, nineteen hundred forty, the provisions of
this section shall not apply to any employing unit which is an organization
exempt from income tax under * Sections 501 and 502 of the Internal
Revenue Code. :

Any employing unit which is an employer at the end of any calendar
year solely by acquisition during such year as provided in subsection (2)
of § 60-12 shall cease to be an employer subject to this title as of January
first of the succeeding calendar year without the filing of the written ap-
plication required of all other employers, provided the Commission finds
that there were no twenty different days, each day being in a different
week within the preceding calendar year, within which such employing unit
and its predecessors in title, treated as a single employing unit, employed
* four or more individuals subject to this title.

After December thirty-first, nineteen hundred forty-five, whenever
any employer shall, during any completed calendar year, fail to be subject
to the payment of contributions solely because no individual has earned
wages from such employer during such calendar year, the Commission may,
after not less than thirty days’ notice in writing mailed to such employer
at his last known address of its intention so to do, cause such employer to
cease to be an employer subject to this title as of the first day of January
of the calendar year in which such notice is given.

§60-96. Moneys constituting fund.—The fund shall consist of all
moneys appropriated by this State, and all moneys received from the United
States of America, or any agency thereof, including the * United States
Department of Labor, the Railroad Retirement Board, and the United
States Employment Service, or from any other source, for the purpose
declared in § 60-97.

§ 60-97. Expenditures solely for cost of administration.—All moneys
in this fund shall be expended solely for the purpose of defraying the cost
of the administration of this title and for no other purpose whatsoever.

All moneys received by the Commission pursuant to the provisions of
section three hundred and two of Title III of the Social Security Act, as
amended, shall be expended solely for the purposes and in the amounts
found necessary by the * Secretary of Labor of the United States for the
proper and efficient administration of this title.
CH. 440] ACTS OF ASSEMBLY 643

§ 60-98. Replacing funds lost or expended for unnecessary pur-
poses.—The Commission is authorized and directed to replace in the Unem-
ployment Compensation Administration Fund, within a reasonable time,
out of any funds appropriated by the General Assembly for such purpose,
any moneys received by the Commission pursuant to the provisions of sec-
tion three hundred and two of Title III of the Social Security Act, as
amended, which because of any action or contingency, are lost or are
expended for purposes other than, or in amounts in excess of those found
necessary by the * Secretary of Labor of the United States for the proper
administration of this title. The Commission is directed to report to the
Governor in accordance with the provisions of § 2-48 the amount necessary
to make such replacement to the Unemployment Compensation Adminis-
tration Fund, and the Governor shall include in the budget reported to the
General Assembly and in the tentative budget bill the amount necessary to
be appropriated for such purposes.

2. That, effective May first nineteen hundred fifty-seven, §§ 60-6, 60-8,
and 60-45 as amended, be repealed.

8. That the Code of Virginia be amended by adding four new sections

numbered 8§ 60-6.1, 60-8.1, 60-45.2 and 60-76.2, the new sections being as
ollows:

§ 60-6.1—On and after May first, nineteen hundred fifty-seven, “base

eriod” means the first four out of the last five completed calendar quarters
immediately preceding the first day of the individual’s benefit year.

§ 60-8.1—On and after May first, nineteen hundred fifty-seven, , eenelt
year” with respect to any individual means the fifty-two consecutive wee

period beginning with the day on which such individual first files a valid
claim for benefits, and thereafter the fifty-two consecutive week period
beginning with the day on which such individual next files a valid claim
for benefits after the termination of his last preceding benefit year. An
tnitial claim for benefits filed in accordance with regulations prescribed
by the Commission under the provisions of § 60-46 (b) of this Act shall be
deemed to be a valid claim within the purposes of this definition if the
individual has been paid wages in his base period sufficient to make him
eligible for benefits under the provisions of Chapter 8 of this Act.

§ 60-45.2—On and after May first, nineteen hundred fifty-seven, the
mazimum total amount of benefits payable to any individual during any
benefit year shall be determined from the “Benefit Table” shown in § 60-42,
but in no case shall such maximum exceed eighteen times such individual’s
weekly benefit amount. Such determination shall be based only upon wages
earned in insured work during such individual’s base period. The Com-
mission shall maintain a separate account for each individual who subse-
quent to January first, 1987, earns wages in insured work. After the
expiration of each calendar quarter the Commission shall credit each indi-
vidual’s account with the wages earned by him in insured work in such
calendar quarter.

§ 60-76.2—Notwithstanding any other provisions of this Chapter,
effective January 1, 1957, if on January 31 of any year the contributions or
any portion thereof and/or the interest due thereon for any previous quarter
is delinquent and unpaid and has been delinquent and unpaid for a period
of 90 days or more, the Commission may thereafter issue a notice of
delinquency demanding payment, and if the amount due is not paid within
30 days after such notice is mailed to the delinquent employer at his last
known address, such delinquent employer’s rate for the calendar year in
ig ps notice is sent shall not be computed under the provisions of

is article.