Chap. 181.—An ACT to amend and re-enact Sections 2, 3, 4, 5, 6, 7, 8, 14, and 16
of Chapter 1 of the Acts of the General Assembly of Virginia, extra session,
1936-1937, approved December 18, 1936, as heretofore amended, and known,
designated and cited as the Virginia Unemployment Compensation Act, said sec-
tions relating to definitions, benefits, benefit eligibility conditions, disqualifica-
tion for benefits, claims for benefits, contributions and determinations with re-
spect to whether an employing unit is an employer, period, election, afid termi-
nation of employer's coverage, collections of contributions, and penalties, so as,
among other purposes, to make certain changes therein, especially with respect
to the definition of 2 benefit year, an employing unit, and an employer, to
authorize recipfocal agreements with certain foreign governments, to amend
subsection (F) of Section 2(j) (7) relating to officers and members of the
crew of a vessel, to repeal the provisions relating to part-time workers, and
seasonal employment, to change the definition of wages, to change the provision
relating to benefit rights of persons in the military service of the United States,
to vest the Supreme Court of Appeals with jurisdiction in certain cases, to
change the disqualification provisions of the act, to add a new subsection to
section 7 relating to experience rating for certain employers, to change sub-
section (8) of Section 7(e), to provide for the revocation of voluntary elections
in certain cases, to provide for injunctions against employers in default of the
payment of judgments for contributions, and to provide for refund of benefits
collected during weeks in which back pay is subsequently received. [S 6]

Approved March 11, 1944

Be it enacted by the General Assembly of Virginia:

1. That sections two, three, four, five, six, seven, eight, fourteen
and sixteen of chapter one of the Acts of the General Assembly of Vir-
ginia, extra session, nineteen hundred and thirty-six—nineteen hundred
and thirty-seven, approved December eighteenth, nineteen hundred and
thirty-six, as heretofore amended, and known, designated and cited as
the Virginia Unemployment Compensation Act, be amended and re-
enacted so as to read as follows:

Section 2. Definitions.—As used in this act, unless the context clear-
ly requires otherwise :

(a) (1) “Annual pavroll” means the total amount of wages pay-
able by an employer, regardless of the time of payment, for employment
during a calendar year.

(2) “Average annual payroll’ means the average of the annual pay
rolls of any emplover for the last three or five preceding calendar years.
whichever 1s higher.

(b) The “base period” means the calendar year immediately pre-
ceding the beginning of a benefit year.

(c) “Benefits” means the money payments payable to an individual,
as provided in this act, with respect to his unemployment.
(d) “Benefit year”, with respect to any individual, means the twelve
month period beginning with May first and ending with April thirtieth.
When the last day of a benefit year falls within a week of compensable
unemployment, the benefit year shall be extended until the completion
of such week. The benefit year which commenced April first, nineteen
hundred and forty-three, shall end on April thirtieth, nineteen hundred
and forty-four.

(e) “Calendar quarter” means the period of three consecutive calen-
dar months ending on March thirty-first, June thirtieth, September
thirtieth or December thirty-first, excluding, however, any calendar quar-
ter or portion thereof which occurs prior to January first, nineteen hun-
dred and thirty-seven, or the equivalent thereof, as the commission may
by regulation prescribe.

({) “Commission” means the Unemployment Compensation Com-
mission established by this act.

(g) “Contributions” means the taxes imposed by and collectible
under this act.

(h) “Employing unit” means any individual or type of organiza-
tion, including any partnership, association, trust, estate, joint-stock com-
pany, insurance company or corporation, whether domestic or foreign,
or the receiver, trustee in bankruptcy, trustee or successor thereof, or
the legal representative of a deceased person, which has or subsequent
to January first, nineteen hundred and thirty-six, had in its employ one
or more individuals performing services for it within the State. All
individuals performing services within this State for any emploving unit
which maintains two or more separate establishments within this State
shall be deemed to be employed by a single employing unit for all the
purposes of this act. Whenever any employing unit contracts with any
person for any service which is a part of such emploving unit’s usual
trade, occupation, profession or business, such employing unit shall be
deemed to employ all individuals employed by such person for such serv-
ice unless such person performs service or is in fact actually available
to perform service for anyone who may wish to contract with him and is
also found to be engaged in an independently established trade, occupa-
tion, profession or business. Each individual employed to perform or to
assist in performing the work of anv agent or employee of an employing
unit shall be deemed to be emploved by such emploving unit for all the
purposes of this act, whether such individual was hired or paid directly
by such employing unit or by such agent or emplovee, provided the em-
ploying unit had actual or constructive knowledge of such work.

(1) “Employer” means:

(1) Any employing unit which for some portion of a day, but not
necessarily simultaneously, in each of twenty different weeks, whether
of not such weeks are or were consecutive within either the current or the
preceding calendar year, has or had in employment, eight or more indi-
viduals, irrespective of whether the same individuals are or were em-
ploved in each such day ;

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

(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 subsection;

(4) Any employing unit which together with one or more other
employing units, is owned or controlled, by legally enforcible means or
otherwise, directly or indirectly by the same interests, or which owns
or controls one or more other employing units, by legally enforcible

means or otherwise, and which if treated as a single unit with such other
employing unit, would be an employer under paragraph (1) of this
subsection ;

(5) Any employing unit which, having become an employer under
paragraph (1), (2), (3) or (4) of this subsection, has not, under section
eight, ceased to be an employer subject to this act ; or

(6) For the effective period of its election pursuant to section eight
(c) any other employing unit which has elected to become fully subject
to this act.

(j) (1) “Employment” means any service performed prior to
January first, nineteen hundred and forty, which was employment as
defined in this section prior to such date, and, subject to the other pro-
visions of this subsection, service performed after December thirty-first,
nineteen hundred and thirty-nine, including service in interstate com-
merce, performed for remuneration or under any contract of hire, writ-
ten or oral, express or implied.

(2) The term “employment” shall include an individual’s entire
service, 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 (1) the base of operation, or,
if there is no base of operation, then the place from which such service
is directed or controlled, is in this State; or (11) 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
paragraph (2) of this subsection shall be deemed to be employment
subject to this act 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 sub-
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 act if the individual per-
forming such services is a resident of this State and the commission ap-
proves the election of the employing unit for whom such services are
performed that the entire service of such individual shall be deemed to
be employment subject to this act.

(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 custom-
arily 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 (111) in which the employing unit maintains a
place of business, provided there is in effect, as to such services, an elec-
tion, approved by the agency charged with the administration of such
State’s unemployment compensation law, pursuant to which all the serv-
ices performed 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 pro-
vided under this act and facilities and services provided under the un-
employment compensation law of any foreign government established
on the continent of North America, may be utilized for the taking of
claims and the payment of benefits under the unemployment compensa-
tion act of this State or under a similar law of such foreign government.

(5) Service shall be deemed to be localized within a State if:

(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 insolated transactions. Services
performed outside the State in which the base of operations 1s lo-
cated 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 act unless:

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

(B) such service is either outside the usual course of the busi-
ness for which such service is performed, or that such service is per-
formed outside of all the places of business of the enterprise for which
such service is performed; or such individual, in the performance of
such service, is engaged in an independently established trade, occu-
pation, profession or business.

(7) The term “employment”, after December thirty-first, nineteen
idred and forty-three, 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 1s wholly owned by one or more States
or political subdivisions; 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 sixteen hundred of the Federal
Internal Revenue Code.

(B) Service performed in the employ of the United States
government or of any instrumentality of the United States which 1s
wholly owned by the United States ;

(C) Service with respect to which unemployment compensa-
tion is payable under an unemployment compensation system estab-
lished by an Act of Congress, including service, performed after
June thirtieth, nineteen hundred and thirty-nine, for an employer
determined to be subject to the Railroad Unemployment Insurance
Act by the agency or agencies empowered to make such determina-
tion by an Act of Congress, and service as an employer representative
determined to be subject to said act by said agency or agencies; pro-
vided, that the Commission is hereby authorized and directed to enter
into agreements with the proper agencies under such Act of Con-
gress, which agreements shall become effective ten days after publi-
cation thereof in the manner provided in section eleven (b) of this
act for general rules, to provide reciprocal treatment to individuals
who have, after acquiring potential rights to benefits under this act
acquired rights to unemployment compensation under such Act ot
Congress, or who have, after acquiring potential rights to unemploy-
ment compensation under such Act of Congress, acquired rights to
benefits under this act;

(D) Agricultural labor (as defined in subsection (t)) ;

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

(EF) Service performed as an officer or member of a crew of a
vessel on the navigable waters of the United States. The term “‘ves-
sel” as used herein does not include dredges and auxiliary equipment
used in connection therewith.

(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 ;

(II) Service performed in the employ of a corporation, com-
munity 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 section one hun-
dred and one of the Federal Internal Revenue Code, if—

(1) the remuneration for such service does not exceed
forty-five dollars, or

(11) 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

(111) such service is performed by a student who is en-
rolled and is regularly attending classes at a school, college,
or university ;

(J) Service performed in the employ of an agricultural or
horticultural organization exempt from income tax under section one
hundred and one (1) of the Federal Internal Revenue Code;

(K) Service performed in the employ of a voluntary em-
ployees’ beneficiary association providing for the payment of life,
sick, accident, or other benefits to the members of such association or
their dependents, if (1) no part of its net earnings inures (other than
through such payments) to the benefit of any private shareholder or
individual, and (11) 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, acci-
dent, or other benefits to the members of such association or their
dependents or their designated beneficiaries, if (1) admission to
membership in such association is limited to individuals who are of-
ficers or employees of the United States government, and (11) no
part of the net earnings of such association inures (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 sec-
tion one hundred and one of the Federal Internal Revenue Code, if
such service is performed by a student who is enrolled and 1s regularly
attending classes at such school, college, or university, and the re-
muneration for such service does not exceed forty-five dollars (ex-
clusive of room, board, and tuition) ;

(L) Service performed as a student in the employ of a hos-
pital or a nurses’ training school by an individual who is enrolled and
is regularly attending classes in nurses’ training school chartered or
approved pursuant 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 subse-
quent delivery or distribution ;

(N) Service performed by an individual for an employing
unit aS an insurance agent or as an insurance solicitor, if all such
service performed by such individual for such employing unit is per-
formed for remuneration solely by way of commission ; or

(O) 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 commission. This subsection (OQ) shall also apply
to such service performed since January first, nineteen hundred and
thirty-seven.

(P) Service covered by an arrangement between the commis-
sion 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 entirely within such agency’s State or
under such Federal law. (k) ‘Employment office” means a free pub-
lic employment office, or branch thereof, operated by this State or
maintained as a part of a State-controlled system of public employ-
ment offices or by a Federal agency charged with the administration
of free public enployment offices.

(1) “Fund” means the unemployment compensation fund estab-
lished by this act, to which all contributions required and from which
all benefits provided under this act shall be paid.

(m) “Insured work” means employment for employers.

(n) “State” refers to the Commonwealth of Virginia, includ-
ing land or premises located therein, owned, held, or possessed by the
United States, the States of the United States of America, Alaska,
Hawaii, and the District of Columbia.

(o) “Social Security Act” means the act enacted by the Con-
gress of the United States, approved the fourteenth day of August,
nineteen hundred and thirty-five, entitled ‘an act to provide for the
general welfare by establishing a system of Federal old-age benefits,
and by enabling the several States to make more adequate provision
for aged persons, blind persons, dependent and crippled children,
maternal and child welfare, public health, and the administration ot
their unemployment compensation laws ; to establish a Social Security
Board: to raise revenue; and for other purposes.”, and amendments
thereof.

(p) Unemplovment.—An individual shall be deemed “un-
employed” 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-tine work if the wages payable to him with respect
to such week are less than his weekly benefit amount. 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 otherwise prescribe.

(q) ‘Unemployment compensation administration fund’’ means
the unemployment compensation administration fund established by
this act, from which administrative expenses under this act shall be
paid.

(r) “Wages” means all remuneration payable for personal
services, including commissions and bonuses and the cash value of all
remuneration payable in any medium other than cash. The reason-
able cash value of remuneration payable in any medium other than
cash shall be estimated and determined in accordance with rules pre-
scribed by the Commission; except that the term “wages”, after
December thirty-first, nineteen hundred and thirty-nine, shall not
include—

(1) That part of the remuneration which, after remuneration
equals to three thousand dollars is payable to an individual by an
employer with respect to employment during any calendar year, is
payable to such individual by such employer with respect to employ-
ment during such calendar year ;

(2) The amount of any payment made to, or on behalf of an
employee under a plan or system established by an employer which
makes provision for his employees gradually or for a class or classes
of his employees (including any amount paid by an employer for
insurance or annuities, or into a fund, to provide for any such pay-
ment), on account of (A) retirement, or (B) sickness or accident
disability, or (C) medical and hospitalization expenses in connection
with sickness or accident disability, or (D) death, provided the em-
ployee (i) has not the option to receive, instead of provision for such
death benefit, any part of such payment or, if such death benefit is
insured, any part of the premiums (or contributions to premiums)
paid by his employer and (ii) has not the right, under the provisions
of the plan or system or policy of insurance providing for such death
benefit, to assign such benefit, or to receive a cash consideration in
lieu of such benefit either upon his withdrawal from the plan or sys-
tem providing for such benefit or upon termination of such plan or
system or policy of insurance or of his employment with such em-

loyer ;
— (3) The payment by an employer (without deduction from the
remuneration of the employee) of the tax imposed upon an employer
under section fourteen hundred of the Federal Internal Revenue
Code; or

(4) Dismissal payments which the employer is not legally re-
quired to make.

(s) “Week” means calendar week, ending at midnight Satur-
day, or the equivalent thereof as determined in accordance with regu-
Jations prescribed by the Commission.

(t) Agricultural Labor—The term “agricultural labor” in-
chides all services performed—
(1) On a farm, in the employ of any person, in connection
with cultivating the soil, or in connection with raising or harvesting
any agricultural or horticultural commodity, including the raising,
shearing, feeding, caring for, training, and management of livestock,
bees, poultry, and fur-bearing animals and wildlife.

(2) In the employ of the owner or tenant or other operator of
a farm, in connection with the operation, management, conservation,
improvement, or maintenance of such farm and its tools and equip-
ment, or in salvaging timber or clearing land of brush and other debris
left by a hurricane, if the major part of such service is performed
on a farm.

(3) In connection with the production or harvesting of maple
sirup or maple sugar or any commodity defined as an agricultural
commodity in section fifteen (g) of the Federal Agricultural Market-
ing Act, as amended, or in connection with the raising or harvesting
of mushrooms or in connection with the hatching of poultry, or in
connection with the ginning of cotton, or in connection with the
operation or maintenance of ditches, canals, reservoirs, or waterways
used exclusively for supplying and storing water for farming pur-
poses.

(4) In handling, planting, drying, packing, packaging, proc-
essing, freezing, grading, storing, or delivering to storage or to
market or to a carrier for transportation to market, any such agricul-
tural or horticultural commodity; but only if such service is per-
formed as an incident to ordinary farming operations or, in the case
of fruits and vegetables, as an incident to the preparation of such
fruits or vegetables for market. The provisions of this paragraph
shall not be deemed to be applicable with respect to service performed
in connection with commercial canning or commercial freezing or in
connection with any agricultural or horticultural commodity after its
delivery to a terminal market for distribution for consumption.

As used in this subsection, the term “farm” includes stock,
dairy, poultry, fruit. fur-bearing animals, and truck farms, planta-
tions, ranches, nurseries, ranges, greenhouses or other similar struc-
tures used primarily for the raising of agricultural or horticultural
commodities, and orchards.

Section 3. Benefits. — (a) Payment of Benefits. — Twenty-four
nths after the first day of the first period with respect to which con-
yutions are required under tls act, benefits shall become payable from
fund. All benefits shall be paid through employment offices, in ac-
dance with such regulations as the Commission may prescribe.

(b) (1) Weekly benefit amount.—

Commencing April first, nineteen hundred and forty-two, an
eligible individual's weekly “benefht amount” shall be the amount ap-
pearing in Column Bin the “Benefht Table” in this subsection 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. Notwith-
standing any provisions of this section, whenever it appears that a
claimant will be denied benefits for lack of sufficient “Qualifying
Earnings” as shown in Column C of the “Benefit Table’, he shall not
for that reason alone be denied benefits, but shall be entitled to have
the claim processed according to the line on such “Benefit Table’
next above the line m1 which his “Highest Quarter Earnings” are
found.

(2) Weekly Benefit for Unemployment.—Each eligible in-
dividual who ts unemployed in any week shall be paid with respect to
such week a benefit in an amount equal to his weekly benefit amount
less that part of the wages (if any) payable to him with respect to
such week which is in excess of two dollars.

(3) Notwithstanding any of the other provisions of this act
an eligible individual's weekly benefit amount and duration of bene-
hts for the benefit year beginning April first, nineteen hundred and
forty, and ending March thirty-first, nineteen hundred and forty-one,
shall reflect all such individual’s earned wages in insured work dur-
ing the calendar year nineteen hundred and thirty-nine without re-
gard to any benefits which may have been previously charged against
amounts credited to his account based on such earned wages. EI ffec-
tive April first, nineteen hundred and forty, any benefit rights of
individuals shall be based solely upon the benefit year as detined in
subsection (d) of section two.

(c) Duration of Benefits—The maximum total amount of benefits
payable to any individual during any benefit year shall be determined
from the “Benefit Table” shown in this section, but in no case shall such
maximum exceed sixteen 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 main-
tain.a separate account for each individual who subsequent to January
first, nineteen hundred and thirty-seven, 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 said calendar quarter.

(d) Notwithstanding the other provisions of this section the base
period of any individual who, subsequent to June thirtieth, nineteen
hundred and forty, entered the military service of the United States
shall. upon such individual’s honorable discharge from such military
service, be the base period of such individual on the date of his entry into
such military service and the period of time from the end of such base
period and the date he entered the military service. Notwithstanding
the provisions of section two (d) of this act such individual’s benefit
year shall be the fifty-two consecutive week period commencing the first
day of the week immediately following such individual's discharge from
such military service. Any benefit rights of such individual who has
filed a claim in such fiftv-two week period may be utilized at the same
weekly rate in the remaining portion of that benefit year as defined in
section two (d) in which the last day of such fiftv-two week benefit year
falls, provided, however, that any such individual shall not be entitled to
any benefit rights he may have in the benefit year in which the last day
of the fifty-two week period falls during any week he receives benefits
under this subsection.

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“Military Service” as used herein means service in the land, air and
naval forces of the United States, including service under the Selective
Training and Service Act of nineteen hundred and forty, or service under
the National Guard and Mobilization Act, or any other service in the
armed forces of the United States under any act of Congress.

Provided, however, that the provisions of this subsection (d) shall
be inoperative from the effective date of any legislation by the Congress
of the United States providing for unemployment allowances to indi-
viduals discharged from military service.

Section 4. Benefit Eligibility Conditions—An unemployed individ-
ual shall be eligible to receive benefits with respect to any week only if
the Commission finds that—

(a) He has registered for work at and thereafter has continued to
report at an employment office in accordance with such regulations as
the Commission may prescribe, except that the Commission may, by regu-
lation, 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
compliance with such requirements would be oppressive, or would be
inconsistent with the purposes of this act.

(b) He has made a claim for benefits in accordance with the pro-
visions of section six (a) of this act.

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

(d) Prior to any week for which he claims benefits, he has been
unemployed during his benefit year for a waiting period of one week
with respect to which he received no benefits, but during which he was
eligible for benefits in all other respects and was not disqualified for
benefits under any provision of section five of this act. If the benefit
year ends during consecutive weeks of compensable unemployment for
any individual, such individual shall not be required to serve a new wait-
ing period before benefits shall accrue in the new benefit year and be
payable.

(e) He has within his base period earned wages in employment for
employers equal to not less than twenty-five times his weekly benefit
amount.

Section 5. Disqualification for Benefits—An individual shall be dis-
qualified for benefits:

(a) For not less than one nor more than five consecutive weeks,
beginning with the first day after the disqualifying act occurs, and with-
out regard to the date the claim for benefits is filed, if it is determined
by the Commission that such individual is, during any week for which
he claims benefits, unemployed because he left work voluntarily without
good cause involving fault on the part of the employer.

(b) For not less than one nor more than nine consecutive weeks,
beginning with the first day after the disqualifying act occurs, and with-
out regard to the date the claim for benefits is filed, if it is determined by
the Commission that such individual is, during any week for which he
claims benefits, unemployed because he has been discharged for mis-
conduct connected with his work.
(c) For not less than one nor more than five consecutive weeks, if
it is determined by the Commission that such individual has registered
for work or has made a claim for benefits and thereafter has failed, with-
out good cause, either to apply for available, suitable work when so di-
rected by the employment office or the Commission or to accept suitable
work when offered him, or to return to his customary self-employment,
if any, when so directed by the Commission. A disqualification under
this subsection shall be imposed for weeks following the weeks during
which any disqualification may have been imposed under subsections
(a) or (b) of this section.

(1) In determining whether or not any work is suitable for
an individual, the Commission shall consider the degree of risk in-
volved to his health, safety, and morals, his physical fitness and prior
training, his experience and prior earnings, his length of unemplovy-
ment and prospects for securing local work 1n his customary occupa-
tion, and the distance of the available work from his residence.

(2) Notwithstanding any other provisions of this act, no work
shall be deemed suitable and benefits shall not be denied under this
act to any otherwise eligible individual for refusing to accept new
work under any of the following conditions: (A) if the position of-
fered is vacant due directly to a strike, lockout, or other labor dis-
pute; (B) if the wages, hours, or other conditions of the work of-
fered are substantially less favorable to the individual than those pre-
vailing for similar work in the locality; (C) 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 organiza-
tion.

(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 because of a labor dispute at the factory, establishment, or other
premises at which he is or was last employed, provided that this sub-
section 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, immediately before the commencement of the stoppage, there
were members employed at the premises at which the stoppage oc-
curs, any of whom are participating in or financing or directly inter-
ested in the dispute.

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 depart-
ment shall, for the purposes of this subsection, be deemed to be a separate
factory, establishment, or other premises.

(e) For any week with respect to which or a part of which he has
received or is secking unemployment benefits under an unemployment
compensation law of any other State or of the United States ; provided.
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 disqualification shall not apply.

({) When an individual is disqualified for benefits under subsections
(a) or (b) or (c) or (d) of this section, the total amount of benefits
to which he may otherwise be entitled in accordance with section three
of this act 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.

Section 6. Claims for Benefits—(a) Filing—Claims for benefits
shall be made in accordance with sugh regulations as the Commission may
prescribe. Each employer shall post and maintain printed statements of
such regulations in places readily accessible to individuals in his service
and shall make available to each such individual at the time he becomes
unemployed, a printed statement of such regulations. Such printed state-
ments shall be supplied by the Commission to each employer without cost
to him.

(b) Initial Determination—A _ representative designated by the
Commission, and hereinafter referred to as a deputy, shall promptly ex-
amine the claim and, on the basis of the facts found by him, shall either
determine whether or not such claim is vahd, and if valid, the week with
respect to which benefits shall commence, the weekly benefit amount pay-
able and the maximum duration thereof, or shall refer such claim or any
question involved therein to any appeal tribunal or to the Commission,
which tribunal or Commission shall make its determination with respect
thereto in accordance with the procedure described in subsection (c) of
this section, except that in any case in which the payment or denial of
benefits will be determined by the provisions of section five (d) of this
act, the deputy shall promptly transmit his full finding of fact with re-
spect to that subsection to the Commission, which, on the basis of the evi-
dence submitted and such additional evidence as it may require, shall
affirm, modify, or set aside such findings of fact and transmit to the
deputy a decision upon the issues involved under that subsection. The
deputy shall promptly notify the claimant, and in any claim involving
the application of section five of this act he shall also notify the most
recent employer of the claimant of the determination or decision and the
reasons therefor. Unless the claimant or any such interested party,
within five calendar days after the delivery of such notification, or within
seven calendar days after such notification was mailed to his last known
address, files an appeal from such determination or decision, such determ1-
nation or decision shall be final and benefits shall be paid or denied in
accordance therewith. If an appeal is duly filed, benefits with respect
to the period prior to the final determination of the Commission shall be
paid only after such determination; provided, that if an appeal tribunal
affirms a determination of a deputy. or the Commission affirms a decision
of an appeal tribunal, allowing benefits, such benefits shall be paid re-
gardless of any appeal which may thereafter be taken, except that should
further appeal be taken benefits as paid shall result in benefit wage
charges to the accounts of the employer or employers under section seven
(d) of this act only when and as of the date on which, as a result of a
further appeal, the courts finally determine that the Commission shoulc
have awarded benefits to the claimant or claimants involved in suct
appeal.

(c) Appeals.—Unless such appeal from any initial determinatior
made by the Commission or by a deputy is withdrawn, an appeal tribunal
after affording the parties reasonable opportunity for fair hearing, shall
affirm, set aside, reverse, or modify the findings of fact and decision of
the Commission or the deputy. The parties shall be duly notified of such
tribunal’s decision, together with its reasons therefor, which shall be
deemed to be the final decision of the Commission, unless within ten days
after the date of notification or mailing of such decision, further appeal
is initiated pursuant to subsection (e) of this section. Any such decision
by an appeal tribunal involving whether an employing unit constitutes
an employer or whether services performed for or in connection with
the business of an employing unit constitute employment for such em-
ploying unit from which no appeal is initiated shall be conclusive in any
subsequent judicial proceedings involving liability for contributions by
the Commission against any employing unit which was a party to the
proceedings had before such appeal tribunal.

(d) Appeal Tribunals—To hear and decide disputed claims, the
Commission shall establish one or more impartial appeal tribunals con-
sisting in each case of either a salaried examiner or a body consisting of
three members, one of whom shall be a salaried examiner, who shall serve
as chairman, one of whom shall be a representative of employers and the
other of whom shall be a representative of employees ; each of the latter
two members shall serve at the pleasure of the Commission and be paid
a fee of not more than ten dollars per day of active service on such tri-
bunal plus necessary expenses. No person shall participate on behalf of
the Commission in any case in which he is an interested party. The Com-
mission may designate alternates to serve in the absence or disqualifica-
tion of any member of an appeal tribunal. The chairman shall act alone
in the absence or disqualification of any other member and his alternates.
In no case shall the hearings proceed unless the chairman of the appeal
tribunal is present.

(e) Commission Review.—The Commission may on its own motion
affirm, modify, or set aside any decision of an appeal tribunal on the
basis of the evidence previously submitted in such case, or direct the tak-
ing of additional evidence, or shall permit any of the parties to such de-
cision to initiate further appeals before it. The Commission may remove
to itself or transfer to another appeal tribunal the proceedings on any
claim pending before an appeal tribunal. Any proceeding so removed
to the Commission shall be heard in accordance with the requirements of
subsection (c) of this section. The Commission shall promptly notify
the interested parties of its findings and decision.

Any decision of the Commission, upon a hearing on appeal, shall be-
come final ten days after the date of notification or mailing thereof, and
judicial review thereof shall be permitted the claimant or any interested
party claiming to be aggrieved thereby. The Commission shaH be deemed
to be a party to any judicial action involving any such decision, and shall
be represented in any such judicial action by the Attorney General. Any
such decision by the Commission involving whether an employing unit
constitutes an employer or whether services performed for or in con-
nection with business of an employing unit constitute employment fot
such employing unit from which no judicial review is had pursuant tc
subsection (h) of this section shall be conclusive in any subsequent
judicial proceedings involving liability for contributions by the Commis-
sion against any employing unit which was a party to the proceedings
had before the Commission.

(f) Procedure.—The manner in which disputed claims shall be pre-
sented, the reports thereon required from the claimant and from em-
ployers, and the conduct of hearings and appeals before any deputy, ap-
peal tribunal or the Commission shall be in accordance with regulations
prescribed by the Commission for determining the rights of the parties,
whether or not such regulations conform to common law or statutory
rules of evidence and other technical rules of procedure. A full and
complete record shall be kept of all-proceedings in connection with a
disputed claim. All testimony at any hearing upon a disputed claim
shall be recorded, but need not be transcribed unless the disputed claim
is further appealed.

(g) Witness Fees.—Witness subpoenaed pursuant to this section
shall be allowed fees at a rate fixed by the Commission. Such fees shall
be deemed a part of the expense of administering this act.

(h) Judicial Review.—Within ten days after the decision of the
Commission upon a hearing pursuant to subsection (e) of this section has
become final, any party aggrieved thereby may secure judicial review
thereof by commencing an action in the circuit court of the county or in
the corporation or hustings court of the city, or if the city has no corpora-
tion or hustings court, then in the circuit court of the city, or if no circuit
court, then in the circuit court of the county in which such city is geo-
graphically located in which the individual who filed the claim was last
employed, against the Commission for the review of its decision, in which
action any other party to the proceedings before the Commission shall
be made a defendant. In such action, a petition which need not be veri-
fied, but which shall state the grounds upon which a review is sought,
shall be served upon a member of the Commission or upon such person
as the Commission may designate and such service shall be deemed com-
pleted service on all parties, but there shall be left with the party so
served as many copies of the petition as there are defendants and the
Commission shall forthwith mail one such copy to each such defendant.
With its answer, the Commission shall certify and file with said court
all documents and papers and a transcript of all testimony taken in the
matter, together with its findings of fact and decision therein. The Com-
mission may also, in its discretion, certify to such court questions of law
involved in any decision by it. In any judicial proceedings under this
section, the findings of the Commission as to the facts, if supported by
evidence and in the absence of fraud, shall be conclusive, and the juris-
diction of said court shall be confined to questions of law. Such actions
and the questions so certified, shall be heard in a summary manner at
the earliest possible date. An appeal may be taken from the decision of
such court to the Supreme Court of Appeals in conformity with general
law governing appeals in equity cases, and from any such decision in-
volving the provisions of sections four or five of this act or whether
an employing unit constitutes an employer or whether services performed
for or in connection with the business of an employing unit constitute
employment for such employing unit, the Supreme Court of Appeals
shall have jurisdiction to review such decision regardless of the amount
involved in any claim for benefits. It shall not be necessary, in any pro-
ceeding under this section, to enter exceptions to the rulings of the Com-
mission or an appeal tribunal, and no bond shall be required upon an
appeal to any court. Upon the final determination of such judicial pro-
ceeding, the Commission shall enter an order in accordance with such
determination. <A petition for judicial review shall operate as a super-
sedeas.

(1) Re-determination of Claims.—Notwithstanding any other pro-
visions of this act, the Commission may, at any time within one year
from the date the deputy’s determination become final pursuant to sec-
tion six (b) of this act, re-determine any claim decided by a deputy re-
specting which no appeal was taken by the claimant from the determina-
tion of such deputy. Notice of any such re-determination shall be given
promptly to the interested parties, and an appeal may be had from such
re-determination within the time and in the manner prescribed for an
appeal from any original determination, and if no such appeal is filed
such re-determination shall be final. Any re-determination hereunder
shall be limited to claims concerning which an error in computation has
occurred, or that wages of the claimant pertinent to such determination
but not considered in connection therewith have been newly discovered.

(j) Board of Review.—The Commission, in its discretion, is hereby
authorized to appoint a Board of Review, consisting of three members,
one of whom shall be designated chairman, for a term of six years, ex-
cept that the terms of the members first taking office shall be two, four.
and six years, respectively, as designated by the Commission at the time
of the appointment, and except that vacancies shall be filled by appoint-
ment by the Commission for the unexpired term. During his term of
membership on the Board of Review no member shall serve as an officer
or committee member of any political organization. The members of
the board shall be paid a compensation to be determined by the Com-
mission. The Commission shall furnish the board such stenographic and
clerical assistance as the board may require. All compensation of the
members of the board and all necessary expenses for the operation there-
of shall be paid out of the administrative fund provided for in section
thirteen of this act. The Commission may at any time, after notice and
hearing, remove any member for cause. The Commission may, after
thirty days’ notice to the members of said board, and upon a finding
that said board is no longer needed, abolish the same. Said Board of
Review shall meet upon the call of the chairman and shall have the
same powers and pertorm the same functions vested in the Commission
in this act for review of decisions of an Appeal Tribunal, including the
power to administer oaths and affirmations, take depositions, certify to
official acts, and issue subpoenas to compel the attendance of witnesses
and the production of books, papers, correspondence, memoranda, and
other records deemed necessary as evidence in connection with disputed
clams. The Board of Review may hold its hearings in the county or
city where the claimant was last employed, except that hearings involv-
ing the provisions of section five (d) of this act shall be held in the
county or city where the claimant was last employed, and when the
same or substantially similar evidence is relevant and material to mat-
ters in issue in claims by more than one individual or in claims by a
single individual with respect to two or more weeks of unemployment,
the same time and place for considering each such claim may be fixed,
hearings thereon jointly conducted, and a single record of the proceed-
ings made. The. Commission may issue such regulations as it deems
necessary for the procedure of the Board of Review in the conduct of
its hearings. During the time said Board of Review is organized under
authority for the Commission, the Commission shall have no jurisdiction
under subsection (e) of this section. Any decision of the Board of
Review shall become final ten days after the date of notification or mail-
ing thereof and judicial review thereof shall be permitted the claimant,
the Commission, or any interested party claiming to be aggrieved there-
by, and in any judicial action involving any such decision the Commis-
sion shall be represented by the Attorney General. Any decision of
the Board of Review from which no judicial review is sought within
the time prescribed in subsection (h) of this section shall be conclusive
against any party to the hearing before said board and the Commission
in any subsequent judicial proceedings involving liability for contribu-
tions under this act.

Within the time specified in subsection (h) of this section, the Com-
mission, or any party to the proceedings before the Board of Review,
may obtain judicial review thereof by filing in the circuit court of the
county or in the corporation or hustings court, then in the circuit court
of the city, or if no circuit court, then in the circuit court of the county
in which such city is geographically located, in which the individual who
fled the claim was last employed, a petition for review of such decision
and in any such proceeding any other party to the proceeding shall be
made a party respondent. The Commission shall be deemed to be a
party to any such proceeding. The petition need not be verified. A
copy of such petition shall be served upon the Commission and each
party to the proceeding had before the Board of Review at least thirty
days prior to the placing of said petition upon the docket. The mailing
of a copy of such petition to each party thereto as his last known address
shall he sufficient service thereof. The Commission shall file along with
its petition or answer a certified copy of the record of the case, includ-
ing all documents and papers and a transcript of all testimony taken
in the matter, together with the Board of Review's findings, conclu-
sions and decision therein. In any proceeding under this subsection the
findings of the Board of Review as to the facts, if supported by the
evidence and in the absence of fraud. shall be conclusive and the juris-
diction of the said court shall be confined to questions of law. The
court may order additional evidence to be taken by the Board of Re-
view, which said additional evidence, findings of fact or conclusions, to-
gether with the additional transcript of the record, shall be certified by
the chairman of the Board of Review and filed by him with the court.
Such petition for review shall be heard in a summary manner and shall
have preference over all other cases on the docket, except cases in which
the Commonwealth is a party. An appeal may be taken from the de-
cision of such court to the Supreme Court of Appeals, in conformity
with general law governing appeals in equity cases, and from any such
decision involving the provisions of sections four or five of this act or
whether an employing unit constitutes an employer or whether services
performed for or in connection with the business of an employing unit
constitute employment for such employing unit, the Supreme Court of
Appeals shall have jurisdiction to review such decision regardless of
the amount involved in any claim for benefits. It shall not be necessary,
in any proceeding before the Board of Review, to enter exceptions to
the ruling of the Board of Review, and no bond shall be required upon
any appeal to any court. Upon the final determination of such judicial
proceedings, the Board of Review shall enter an order in accordance
with such determination. A petition for judicial review shall operate
as a supersedeas.

Section 7. Contributions and Determinations With Respect to
Whether an Employing Unit Is an Employer—(a) The Commission
may, upon its own motion or upon application of an employing unit, and
after not less than ten days’ notice in writing mailed to the last known
address of such employing unit and an opportunity for hearing, make
findings of fact, and on the basis thereof, determinations with respect
to whether an employing unit constitutes an employer and whether
services performed for or in connection with the business of an employ-
ing unit constitute employment for such employing unit. All testimony
at any hearing pursuant to this subsection shall be recorded but need
not be transcribed unless a petition for judicial review from such deter-
mination is filed in the manner herein prescribed. At such hearing the
interests of the Commonwealth shall be represented by the Attorney
General. Judicial review of any such determination may be had within
thirty days after the mailing of notice of such findings and determina-
tion to the employing unit or, in the absence of mailing, within thirty
days after the delivery of such notice and determination, in either of the
courts of the City of Richmond, as set forth in section fifty-nine hundred
and twelve of the Code of Virginia, except the Hustings Court of the
City of Richmond, part two. Such judicial review shall be commenced
by the filing of a petition, which need not be verified, but which shall state
the grounds upon which a review is sought. Service of two copies of
such petition upon the Commissioner shall be deemed completed service
and such petition shall be filed with the clerk of the court within five
days after service thereof. With its answer the Commission shall certify
and file with said court all documents and papers and a transcript of all
testimony taken in the matter, together with its findings of fact and de-
cision therein. In any judicial proceeding under this section, the find-
ings of the Commission as to the facts, if supported by the evidence and
in the absence of fraud, shall be conclusive, and the jurisdiction of said
court shall be confined to questions of law. Such actions shall be given
preference on the docket over all other cases except cases to which the
Commonwealth is a party. An appeal may be taken from the decision
of such court to the Supreme Court of Appeals, in conformity with
general law governing appeals in equity cases, and without regard to
the amount involved. In any such proceedings for judicial review, the
Commission shall be represented by the Attorney General. A determina-
tion by the Commission from which no judicial review has been had
shall be conclusive in any subsequent judicial proceeding involving lia-
bility for contributions against said employing unit or its successor under
the provisions of sections two (i) (2) and fourteen (c) (1) of this act.

(b) Every employer shall, on or before January thirty-first, nine-
teen hundred and thirty-seven, or in the event the time be extended for
filing the return of the tax imposed by Title IX of the Social Security
Act for the taxable year nineteen hundred and thirty-six, then before
the expiration of such extension, pay to the Commission with respect to
employment (as defined in section two (j) of this act) during the year
beginning January first, nineteen hundred and thirty-six a tax equal to
nine-tenths of one (0.9%) per centum of wages paid and payable by
him, regardless of the time payment, with respect to employment dur-
ing the calendar year nineteen hundred and thirty-six.

It is expressly provided that, any other provision or provisions in this
act to the contrary notwithstanding, this act shall not be construed as
imposing upon any employer a tax with respect to employment during
the calendar year nineteen hundred and thirty-six greater in amount than
such employer shall be entitled to have allowed as a credit upon the taxes
imposed by the Social Security Act with respect to such employment ;
provided, however, that the foregoing shall not be construed as relieving
any employer from liability for any tax imposed by this act where there
has been a failure to obtain a credit on said Federal tax due to any act
or fault of commission or omission on the part of the said employer.

(c) Onand after January first, nineteen hundred and thirty-seven,
taxes, as hereinafter set forth in this section, shall accrue and become
payable by each employer for each calendar year in which he is subject
to this act, with respect to wages payable for employment (as defined
in section two (j) of this act) occurring in such calendar year. Such
taxes shall become due and be paid by each employer to the Commis-
sion for the fund in accordance with such regulations as the Commission
may prescribe. The Commission is hereby expressly authorized to re-
quire filing of payroll and contribution reports and payment of the taxes
aforesaid in monthly, quarterly, semi-annual or annual payments as shall
be determined by the Commission, but the aggregate amount of taxes
shall be fully paid to the Commission on or before January thirty-first
of each year next succeeding the year with respect to employment dur-
ing which year such taxes are imposed, or in the event the time be ex-
ided for filing the return of the taxes imposed by Title IX of the
cial Security Act for the year for which such taxes are imposed, then
ore the expiration of such extension.

If any employing unit fails to file with the Commission any report
ich the Commission deems necessary for the effective administration
this act within thirty days after the Commission requires the same by
itten notice mailed to the last known address of such employing unit,
- Commission may determine on the basis of such information as it
y have whether such employing unit is an employer, unless such
ermination has already been made, and may assess the amount of
itribution due from such employer and shall give written notice of
th determination and assessment to such employer. Such determina-
n and assessment shall be final “unless such employer shall, within
onty days after the mailing to the employer at his last known address
other service of the notice of such determination and/or assessment,
aly to the Commission for a review of such determination and assess-
nt or unless the Commission shall, of its own motion, set aside, reduce
increase the same.
Each employer shall pay taxes equal to the following percentages
wages payable by him with respect to employment :

(1) One and eight-tenths (1.8%) per centum with respect to
employment during the calendar year nineteen hundred and thirty-
seven ;

(2) Except as otherwise provided in subsection (d) of this
section of this act, two and seven-tenths (2.7%) per centum with
respect to employment during the calendar year nineteen hundred
and thirty-eight and during each succeeding calendar year ; after De-
cember thirty-first, nineteen hundred and thirty-nine, wages pay-
able 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 reports 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 Fed-
eral tax now levied under section sixteen hundred of the Federal In-
ternal Revenue Code, or that may hereafter be levied under any
subsequent amendment, or amendments thereto, than is now per-
mitted under section sixteen hundred and one (c) of said Federal
Internal Revenue Code, to an emplover with respect to any State
unemployment compensation law whose standard contribution rate
on payroll under said law is more than two and seven-tenths (2.7%)
per centum, in that event the standard contribution rate as to all em-
ployers under this act shall, by commission rule promulgated under
section eleven (b) of this act, be increased from two and seven-tenths
(2.7%) 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 be-
come effective on the same date as such higher maximum rate of
credit becomes permissible under such Federal amendment.

(4) If section three hundred and three (a) (5) of Title III
of the Social Security Act and section sixteen hundred and three (a)
(4+) of the Internal Revenue Code are amended to permit a state
agency to use, in financing administrative expenditures incurred in
carrying out its employment security functions, some part of the
monies collected or to be collected under the state unemployment
compensation law, in partial or complete substitution for grants under
said Title III, in that event this act 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 per-
mit such use by the Commission under this act; and such modifica-
tions shall become effective on the same date as such use becomes
permissible under such Federal amendments.

(5) If the Federal Unemployment Tax Act is at any time
amended so as to increase the rate of excise tax each emplover shall
pay with respect to having individuals in his employ, the Commis-
sion may by rules promulgated under section eleven (b) of this act,
increase the rate of contributions under this act 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.

(d) Taxes imposed by this act shall not be deducted, in whole
or in part, from the ways of individuals in the employ of any em-
ployer. In the payment of any taxes, a fractional part of a cent shall
be disregarded, unless it amounts to one-half cent or more, in which
case it shall be increased to one cent.

(e) For each calendar year commencing after December thirty-
first, nineteen hundred and forty. the contribution rate of each em-
plover, with respect to whom during the most recent three consecu-
tive completed calendar years throughout which any individual in his
employ could have received benefits, if eligible, shall be computed
as hereinafter provided. For the purposes of this subsection the pay-
rolls, contributions and benefit experience of all employers subject
to the provisions of the Railroad Unemployment Insurance Act shall
be excluded in all computations to determine contribution rates. The
Commission shall notify each such emplover 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
vear, but the failure of any such employer to receive such notice shall
not relieve him from lability for such contribution,

(1) When, in any benefit vear, an individual is first paid bene-
fits for total or partial unemployment, his wages during his base
period shall be termed the individual’s “benefit wages”, and shall be
treated for the purposes of this subsection as though they had been
paid, by his employer or employers’ in the calendar year in which
such benefits are first paid. For the purposes of this subsection,
benefit wages shall include only the first nine hundred sixty dollars
($960.00) of wages received by any one individual from any one em-
ployer in such individual’s base period.

(2) The employer’s benefit wages for a given calendar year
shall be the total of the benefit wages of all his employees, or former
employees, which become benefit wages during such calendar year.

(3) The “benefit wage ratio’ of each employer shall be the
percentage equal to the total of the benefit wages of his employees or
former employees, allocated as provided in subparagraph ‘(1) to
the most recent three consecutive completed calendar years, divided
by the total of his annual payrolls (on which contributions have been
paid on or before January thirty-first of the calendar year with re-
spect to which his contribution rate is being computed) for the same
three years.

(4) For any calendar year the “State experience factor”
shall be the total benefits paid from the fund during the most recent
three consecutive completed calendar years, less all amounts credited
to the fund in such years other than employers’ contributions, divided
by the total of the benefit wages of all employers during the same
three consecutive completed calendar years. In such computation
any fraction shall be adjusted to the nearest multiple of one per cent
um (1%).

(5) Subject to the provision of paragraph six of this subsection,
the contribution rate for each employer shall be the percentage at the
lowest numbered column in the following table, in which on the same
line as the current state experience factor, there appears a percent-
age equal to or in excess of such employer’s benefit wage ratio. If
no percentage equal to or in excess of such employer’s benefit wage
ratio appears on said line, then such employer’s contribution rate shall
be two and seven-tenths (2.7% ) per centum.

(6) At the end of each calendar year, starting on December
thirty-first, nineteen hundred and forty, the balance which shall stand
to the credit of the account of the Commonwealth of Virginia in the
Unemployment Trust Fund in the Treasury of the United States,
including amounts withdrawn therefrom but not expended at De-
cember thirty-first, and excluding any amounts transferable to the
Railroad Unemployment Compensation Fund, shall be compared
with the total amount of payrolls upon which contributions were
paid, in the calendar year in which contributions were paid on the
largest amount of payrolls, disregarding, however, the amount of pay-
rolls upon which contributions were paid in any calendar year more
than nine years prior to the most recently completed calendar year.
hen the

State Column Column Column Column
erience 1 2 3 4
ctor 1S —_———
If the employer’s benefit wage ratio does
not exceed :
70 of less 100% 150% 200% 250%
50 | 75 100 125
33 ~ $0 66 83
25 38 50 63
20 30 40 50
17 25 34 42
14 21 29 36
13 19 25 31
11 16 22 28
10 15 20 25
9 14 18 23
8 13 17 21
8 12 15 19
7 11 14 18
7 10 13 17
6 9 12 16
6 9 12 15
6 8 11 14
5 8 11 13
5 8 10 13
5 7 10 12
5 7 9 11
4 7 9 11
4 6 8 10
4 6 8 10
The employer's contribution rate shall be:
1.0% 1.5% 2.0% 2.5%

If such balance is less than four and one-half per centum (44%)
of the largest total amount of payrolls upon which such contribu-
tions were paid in any calendar year, the amount by which such bal-
ance is less than such four and one-half (414%) per centum shall be
divided by the sum of the payrolls of all employers upon which con-
tributions were paid in the most recently completed calendar year
and the quotient adjusted to the nearest multiple of one-tenth of one
(1/10%) per centum. The contribution rate of each employer com-
puted or determined in accordance with the previous provisions of
this subsection shall be increased by such adjusted quotient, provided
that no employer's contribution rate shall thereby be increased to a
total of more than two and seven-tenths (2.7%) per centum.
(7) As used in this subsection (e) the term “contribution rate”
means the tax or percentage of wages payable by an employer with
respect to employment.

(8) Whenever any employing unit in any manner succeeds to
or acquires the organization, trade, separate establishment or business,
or substantially all the assets thereof, (whether or not the succeeding
or acquiring unit was an “employing unit”, as that term is defined in
section two of this act, prior to such acquisition) of another which
at the time of such acquisition was an employer subject to this act,
and such predecessor employing unit has executed and filed with the
Commission on a form approved by the Commission a waiver re-
linquishing all rights to prior experience for the purpose of obtain-
ing a reduced rate and requesting the Commission to permit such
experience to inure to the benefit of the successor employing unit.
upon request of the successor employing unit, the experience record
for rate computation purposes of the predecessor shall thereupon be
deemed the experience record of the successor as of the first day of
January of the succeeding year and provided such successor, unless
already an employer subject to this act, shall, during the remainder
of the current calendar year upon the filing of the waiver herein men-
tioned, be subject to the rate of taxation of the predecessor, but if
such successor is at the time of such transfer an employer subject to
this act, such successor’s rate of tax to which it is then subject shall
remain the same until the next determination of rates under this sec-
tion for all employers, at which time the experience of the predecessor
and the successor shall be deemed to be the experience of a single em-
ploying unit and such successor’s rate shall thereupon be determined
upon the basis of such combined experience. The waivers required
herein, and such information regarding the prior experience of the
seller as may be required by the Commission, shall be filed with the
Commission not later than February fifteenth of the year succeeding
the year in which such transfer occurred, except for the purpose of
determining the rate for the year nineteen hundred and forty-four
such waiver and prior experience shall be filed not later than June
thirtieth, nineteen hundred and forty-four.

(9) Notwithstanding any other provisions of this section, the
contribution rate of any employer which first became an employer
as of January first, nineteen hundred and forty, or January first, nine-
teen hundred and forty-one, with respect to whom during the thirty-
six month period immediately preceding the first day of any calendar
quarter throughout which any individual in his employ could have
received benefits, if eligible, shall be computed as provided in this
section, provided, however, no contribution rate of less than two and
seven-tenths per centum shall be allowed any such employer except
upon wages carned in his employment subsequent to the last day of
such thirty-six month period.

Section 8. Period, Election, and Termination of Employer’s Cover-
—(a) Any employing unit which is or becomes an employer sub-
ject to this act within any calendar year shall be subject to this act dur-
ing the whole of such calendar year.

(b) Except as otherwise provided in this subsection and subsection
(c) of this section, an employing unit shall cease to be an employer sub-
ject to this act 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 eight or more individuals in employment sub-
ject to this act. For the purpose of this subsection, the two or more
employing units mentioned in paragraphs (3) or (4) of section two
(1) shall be treated as a single employing unit. On and after Janu-
ary first, nineteen hundred and forty, the provisions of this subsection
shall not apply to any employing unit which is an organization exempt
from income tax under section one hundred and one of the Federal In-
ternal Revenue Code.

Any employing unit which is an employer at the end of any calendar
year solely by acquisition (during said year) as provided in paragraph
two of section two (i) shall cease to be an employer subject to this act
as of January first of the succeeding calendar year without the filing of
the written application required of all other employers, provided the
Commission finds that there were no twenty different days, each day be-
ing in a different week within the preceding calendar year, within which
such employing unit and its predecessors in title (treated as a single em-
p'oving unit) employed eight or more individuals subject to this act.

{c) (1) Any employing unit, not otherwise subject to this act,
which files with the Commission its written election to become an em-
ployer subject hereto for not less than two calendar years, shall, with
the written approval of such election by the Commission, become an em-
ployer subject hereto to the same extent as all other employers, as of
January first of the calendar year in which such election is approved,
and shall cease to be subject hereto as of January first of any calendar
vear subsequent to such two calendar years, if prior to the second day
of the next succeeding February, it has filed with the Commission a
written notice to that effect ; provided, however, that the Commission may,
on its own motion, and after ten days written notice mailed to such em-
ploying unit at its last known address, without regard to said two year
calendar period, revoke such written approval of such election and, as
of the date of such revocation, such employing unit shall cease to be an
employer.

(2) Any employing unit for which services that do not constitute
employment as defined in this act are performed, may file with the Com-
mission a written election that all such services performed by individuals
in its employ in one or more distinct establishments or places of business
shall be deemed to constitute employment for all the purposes of this act
for not less than two calendar years. Upon the written approval of such
election by the Commission, such services shall be deemed to constitute
employment subject to this act from and after the date stated in such
approval. Such services shall cease to be deemed employment subject
hereto as of January first of any calendar year subsequent to such two
calendar years, only if at least thirty days prior to such first day of Jan-
uary such employing unit has filed with the Commission a written notice
to that effect.

Section 14. Collection of Contributions.—(a) Interest on Past-Due
Contributions.—Contributions unpaid on the date on which they are due
and payable, as prescribed by the Commission pursuant to the provisions
of section seven, shall bear interest at the rate of one per centum per
month from and after such date until payment plus accrued interest is
received by the Commission. Interest collected pursuant to this subsec-
tion shall be paid into the unemployment compensation fund.

(b) Collection.—If, after due notice, any employer defaults in any
payment of contributions or interest thereon, the amount due shall be
collected by civil action in the name of the Commission, and the employer
adjudged in default shall pay the costs of such action. Civil actions
brought under this section to collect contributions or interest thereon
from an employer shall be heard by the court at the earliest possible date.
In addition to the foregoing remedy the Commission shall have such other
remedies as are available to the State Tax Commissioner and county and
city treasurers for the collection of taxes generally. The Commission is
hereby authorized to compromise, settle and adjust any tax or taxes as-
sessed against any employer where in the judgment of the Commission the
best interests of the Commonwealth of Virginia will be promoted or
served thereby and may in such cases accept in full settlement of the
tax assessed an amount less than that assessed.

(1) Injunction—When an execution has been returned by an officer
unsatisfied, and the employer against whom the judgment has been ob-
tained on which the execution was issued continues in default of pay-
ment of the contributions, or any portion thereof, covered by the execu-
tion, such employer may be enjoined from operating and doing business
in this State until such contributions have been paid. The Circuit Court
of the City of Richmond shall have exclusive original jurisdiction to
grant such injunction upon the complaint of the Commission. At least
fifteen days notice of the time and place when the application for the
injunction will be made shall be served on the employer, and a copy of
the bill of complaint shall be served with the notice.

(c) Priorities Under Legal Dissolutions or Distributions.—In the
event of any distribution of an employer’s assets, contributions then or
thereafter due shall be a lien against such assets, prior to all claims of
lien and general creditors. Contributions accruing by reason of an em-
ployment for an emplover who is a receiver, trustee or other fiduciary
shall be a lien against all the assets in the custody or control of such re-
ceiver, trustee or other fiduciary. prior and paramount to all other claims.
of lien and general creditors. Nothing in this section shall be construed
in derogation of any prior len of the Commonwealth of Virginia or any
of its political subdivisions now existing or hereafter created by law, nor
any mortgage, deed of trust or other lien duly perfected prior to the
date the contributions or any part thereof first accrued, provided that no-
such lien in favor of the Commonwealth of Virginia or any of its sub-
divisions, nor any mortgage, deed of trust or other lien shall in any case
be preferred, ‘paramount or prior to the lien for contributions due by
any such receiver, trustee or other fiduciary upon payrolls earned in the
employment of such receiver, trustee or other fiduciary.

(1) The contributions or tax imposed by section seven and
subsections thereunder, of this act shall be a lien upon the assets of
the business of any employer subject to the provisions hereof who
shall lease, transter or sell out his business, or shall cease to do busi-
ness and such employer shall be required, by the next reporting date
as prescribed by the Commission, to file with the Commission all re-
ports and pay all contributions due with respect to wages payable for
employment up to the date of such lease, transfer, sale or cessation of
the business and such employer’s successor in business shall be re-
quired to withhold sufficient of the purchase money to cover the
amount of said contributions due and unpaid until such time as the
former owner or employer shall produce a receipt from the Com-
mission showing that the contributions have been paid, or a certficate
that no contributions are due. If the purchaser of a business of a
successor of such employer shall fail to withhold purchase money or
any money due to such employer in consideration of a lease or other
transfer and the contributions shall be due and unpaid after the next
reporting date, as above set forth, such successor shall be personally
liable to the extent of the assets of the business so acquired for the
payment of the contributions accrued and unpaid on account of the
operation of the business by the former owner or employer. When-
ever the purchaser or successor of such employer shall file with the
Commission a written request for a statement showing the amount of
tax, if any, due by such employer, unless such statement is furnished
to such purchaser or successor of such employer within ninety days
from the date such written request was filed, such purchaser or suc-
cessor shall not be liable for any tax or taxes due by such employer,
and the lien created by this subsection shall thereupon be released and
discharged.

(d) Refund.—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 pay-
ments, 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 connection with subsequent contribution payments by him, or if such
adjustment cannot be made the Commission shall refund said amount,
without interest, from the fund. lor like cause and within the same
period, adjustment or refund may be so made on the Commission's own
initiative.

(1) Anv employing umt which the Commission finds has er-
roneously paid prior to June thirtieth, nineteen hundred and forty-
one such contributions or interest for the calendar year nineteen hun-
dred and thirty-six, nineteen hundred and _ thirty-seven, nineteen
hundred and thirty-eight, nineteen hundred and thirty-nine, nineteen
hundred and forty, or nineteen hundred and forty-one, applying for
refunded or adjustment before the sixtieth day after the effective date
of this amendment, shall, without regard to the due date thereof, be
entitled to a refund or adjustment thereof, without interest, from
the fund.

(2) In any case where the Commission finds that any employ-
ing unit has erroneously paid to this State contributions or interest
upon wages earned by individuals in employment in another state, or
under the provisions of the Federal Railroad Unemployment Insur-
ance Act, refund or adjustment thereof shall be made, without 1n-
terest, and without regard to the due date thereof, upon satisfactory
proof to the Commission that payment of such contribution or interest
has been made to such other jurisdiction.

(3) In any case where the Commission finds that an instru-
mentality 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 Social Security Board under section sixteen
hundred and three of the Federal Internal Revenue Code, refund
thereof shall be made to such instrumentality, without interest, and
without regard to the date of payment.

Section 16. Penalties—(a) Whoever makes a false statement or
representation knowing it to be false or knowingly fails to disclose a
material fact, to obtain or increase any benefit or other payment under
this act, or the unemployment compensation act of any other state, either
for himself or for any other person, shall be guilty of a misdemeanor and
on conviction thereof shall be punished accordingly ; each false statement
or representation or failure to disclose a material fact shall constitute a
separate offense.

(b) Any employing unit or any officer or agent of an employing
unit or any other person who makes a false statement or representation
knowing it to be false, or who knowingly fails to disclose a material fact,
to prevent or reduce the payment of benefits to any individual entitled
thereto, or to avoid becoming or remaining subject hereto or to avoid
or reduce any contribution or other payment required from an employ-
ing unit under this act or who wilfully fails or refuses to furnish any
reports required hereunder or to produce or permit the inspection or
copying of records as required hereunder, shall be guilty of a misdemean-
or and upon conviction thereof shall be punished accordingly ; each such
false statement or representation or failure to disclose a material fact,
and each day of such failure or refusal shall constitute a separate offense.

(c) Any person who shall wilfully violate any provision of this act
or any valid rule or regulation thereunder, the violation of which is
made unlawful or the observance of which is required under the terms
of this act, and for which a penalty is neither prescribed herein nor pro-
vided by any other applicable statute, shall be guilty of a misdemeanor
and upon conviction thereof shall be punished accordingly; each day
such violation continues shall be deemed to be a separate offense.

(d) <Any person who, by reason of his fraud has received any sum
as benefits under this act to which he was not entitled shall, in the discre-
tion of the Commission, be liable to repay such sum to the Commission for
the fund or to have such sum deducted from any future benefits payable
to him under this act. If any person, other than by reason of his fraud,
has received any sum as benefits under this act to which he has been
subsequently found not entitled, he shall not be liable to repay such sum
but shall, in the discretion of the Commission, be liable to have such sum
deducted from any future benefits payable to him with respect to the
benefit year current at the time of such receipt ; provided, however, that
no such recoupment from future benefits shall be had if such sum was
received by such person without fault on his part and such recoupment
would defeat the purposes of this act or would be against equity and good
conscience. In any case in which under this subsection a claimant 1s
liable to repay to the Commission any sum for the fund, such sum shall
be collectible without interest by civil action in the name of the Com-
mission.

(e) Whenever the Commission finds that a discharged employee has
received back pay at his customary wage rate from his employer after
re-instatement the benefits, if any, paid to such person during the time
he was discharged may be refunded by such person to the Commission.

2. An emergency is hereby declared to exist and this act shall be in
force from its passage.

Ls