Chap. 171.—An ACT to amend and reenact Sections 2, 3, 4, 5, 6, 7, 8, 14, and
16 of Chapter 1 of the Acts of the General Assembly of Virginia, extra ses-
sion, 1936-1937, approved December 18, 1936, as heretofore amended and
known, designated and cited as the Virginia Unemployment Compensation
Act, said sections relating to definitions, benefits, benefit eligibility conditions,
ts iui for benefits, claims for benefits, contributions and determinations
with respect to whether an employing unit is an employer, period, election
and termination of employers’ coverage, collection of contributions, and
penalties, so as, among other purposes, to provide for coverage of maritime
workers, to authorize reciprocal arrangements with other states regarding the
processing and payment of claims for benefits to out-of-state claimants, to
increase the potential amount of benefits, to change the disqualification pro-
visions of the Act, to provide for seasonal employment in certain cases, to abate
interest accrued against employers in the armed services, and to provide for
a lower rate of contributions in certain cases. {S 6]

Approved March 10, 1948

Be it enacted by the General Assembly of Virginia:

1. That sections two, three, four, five, six, seven, eight, four-
teen, and sixteen of chapter one of the Acts of the General Assem-
bly of Virginia, extra session, nineteen hundred thirty-six-nineteen
hundred thirty-seven, approved December eighteenth, nineteen hun-
dred thirty-six, as heretofore amended, and known, designated
and cited as the Virginia Unemployment Compensation Act, be
amended and reenacted so as to read as follows:

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

a (1) “Annual payroll” means the total amount of wages
payable 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 employer for the last three or five preceding
calendar years, whichever is higher.

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

(c) “Benefits” means the money payments payable to an indi-
vidual, 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
calendar months ending on March thirty-first, June thirtieth, Sep-
tember thirtieth or December thirty-first, excluding, however, any
calendar quarter or portion thereof which occurs prior to January
first, nineteen hundred and thirty-seven, or the equivalent thereof,
as the Commission may by regulation prescribe.
(f) “Commission” means the Unemployment Compensation
Commission established by this act.

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

(h) “Employing unit” means any individual or type of organ-
ization, including any partnership, association, trust, estate, joint-
stock company, insurance company or corporation, whether domes-
tic 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 employing 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 employing unit’s usual trade,
occupation, profession or business, such employing unit shall be
deemed to employ all individuals employed by such person ‘for
such service unless such person performs service or is in fact
actually available to perform service for any one who may wish to
contract with him and is also found to be engaged in an indepen-
dently established trade, occupation, profession or business. Each
individual employed to perform or to assist in performing the work
of any agent or employee of an employing unit shall be deemed to
be employed by such employing 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 employee, provided the employ-
ing unit had actual or constructive knowledge of such work.

(i) “Employer” means:

(1) Any employing 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 employ-
ment, eight or more individuals, irrespective of whether the same
individuals are or were employed i 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
employee subject to this act;

Any employing unit which acquired the organization, trade
or business, or substantially all the assets thereof, of another em-
ploying 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 paragraphs (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. mo

(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
payroll tax imposed by Section sixteen hundred of the Federal
Internal Revenue Code or to any other Federal tax against which
credit may be taken by such employing unit for contributions paid
into a State unemployment compensation fund.

This subsection shall not be construed as expressing a desire
by the General Assembly that a Federal law be enacted subjecting
employers of less than eight individuals to the provisions of the
Federal unemployment tax.

(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
provisions of this subsection, service performed after December
thirty-first, nineteen hundred and 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, and
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 performance 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 which the operations
of the vessel are ordinarily and regularly supervised, managed,
directed and/or controlled, is within the Commonwealth of Virginia.

(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 (i) the base of operation, or,
ii there is no base of operation, 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 con-
trolled 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) Services not covered under paragraph (2) of this subsec-
tion, and performed entirely without this State, with respect to no
part of which contributions are required and paid under an unem-
ployment compensation law of any other state or of the Federal
government, shall be deemed to be employment subject to this act
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 service of
such individual shall be deemed to be employment subject to this
act.

(b) Services 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 are deemed to be performed 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 per-
formed, 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 recip-
rocal arrangements with the appropriate and duly authorized agen-
cies of other states or the Federal government, or both, whereby
services performed by an individual for a single employing unit
for which services are customarily 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 law, pursuant to which all the services 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 serv-
360 ACTS OF ASSEMBLY [va., 1948

ices provided under this act and facilities and services provided
under the unemployment compensation law of any foreign govern-
ment established on the continent of North America, may be util-
ized for the taking of claims and the payment of benefits under the
unemployment compensation 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 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 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
performed 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 estab-
lished trade, occupation, profession or business.

(7) The term “employment”, after December thirty-first, nine-
teen hundred forty-seven, 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 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 gov-
ernment or of any instrumentality of the United States which is
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 representa-
tive determined to be subject to said act by said 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 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 of Congress, or who have, after acquiring potential
rights to unemployment compensation under such Act of Congress,
acquired rights to benefits under this act ;

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

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

(F) (1) Service performed on or in connection with a vessel
not an American vessel by an employee, if the employee is em-
ployed on and in connection with such vessel when outside the
United States;

(2) Service performed by an individual in (or as an officer or
member of the crew of a vessel while it is engaged in) the catch-
ing, taking, harvesting, cultivating, or farming of any kind of fish,
shellfish, crustacea, sponges, seaweeds, or other aquatic forms of
animal and vegetable life (including service performed by any such
individual as an ordinary incident to any such activity), except
(A) service performed in connection with the catching or taking
of salmon or halibut, for commercial purposes, and (B) service
performed on or in connection with a vessel of more than ten net
tons (determined in the manner provided for determining the
weister tonnage of merchant vessels under the laws of the United

tates).

(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, com-
munity chest, fund, or foundation, organized and operated exclu-
sively 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
hundred and one 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
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 (i) no part of its net earnings inures (other
than through such payments) to the benefit of any private share-
holder 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 benefits to the members of such association or
their dependents or their designated beneficiaries, if (i) admission
to membership 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 inures (other
than through such payments) to the benefit of any private share-
holder or individual;

Service performed in any calendar quarter in the employ of a
school, college, or university, not exempt from income tax under
section one hundred and one 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) ;

(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 char-
tered 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 performed
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 indi-
vidual for such employing unit is performed for remuneration
solely by way of commission. This subsection (O) 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 public employment
office, or branch thereof, operated by this State or maintained as a
part of a state-controlled system of public employment offices or by
a Federal agency charged with the administration of free public
employment offices.

(1) “Fund” means the unemployment compensation fund
established 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, including
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. os

(0) “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 admin-
istration of their unemployment compensation laws; to establish a
Social Security Board; to raise revenue;‘and for other purposes.”,
and amendments thereof.

(p) 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. An indivi-
dual’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 estab-
lished 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
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; except that the term “wages”
shall not include:

(1) Prior to January first, nineteen hundred forty-eight, that
part of remuneration which, after remuneration equal to three
thousand dollars was payable to an individual by an employer with
respect to employment during any calendar year, was payable to
such individual by such employer with respect to employment
occurring during such calendar year and after December thirty-first,
nineteen hundred thirty-nine, and subsequent to December thirty-
first, nineteen hundred forty-seven, that part of remuneration
which, after remuneration equal to three thousand dollars is pay-
able during any calendar year to an individual by an employer with
respect to employment, is payable during such calendar year to
such individual by such employer with respect to employment in
this Commonwealth or any other State.

(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 generally 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
payment), on account of (A) retirement, or (B) sickness or acci-
dent disability, or (C) medical and hospitalization expenses in
connection with sickness or accident disability, or (D) death,
provided the employee (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 con-
tributions 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 system providing for such benefit
or upon termination of such plan or system or policy of insurance
or of his employment with such employer ;

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
required to make.

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

(t) Agricultural Labor—The term “agricultural labor” in-
cludes 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 harvest-
ing 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, conserva-
tion, improvement, or maintenance of such farm and its tools and
equipment, 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 Mar-
keting Act, as amended, or in connection with the raising or har-
vesting 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 purposes.

(4) In handling, planting, drying, packing, packaging, process-
ing, freezing, grading, storing, or delivering to storage or to market
or to a carrier for transportation to market, any such agricultural
or horticultural commodity; but only if such service is performed
as an incident to ordinary farming operations or, in the case of
fruits and vegetables, as an incident to the preparation of sich
fruits or vegetables for market. The provisions of this paragraph
shall not be deemed to be applicable with respect to service per-
formed 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, plantations,
ranches, nurseries, ranges, greenhouses or other similar structures
used primarily for the raising of agricultural or horticultural com-
modities, and orchards.

(u) The term “American vessel” means any vessel documented
or numbered under the laws of the United States, and includes any
vessel which is neither documented or numbered under the laws
of the United States nor documented under the laws of any foreign
country, if its crew is employed solely by one or more citizens or
residents of the United States: or corporations organized under
the laws of the United States or of any state.

Section 3. Benefits—(a) Payment of Benefits—Twenty-four
months after the first day of the first period with respect to which
contributions are required under this act, benefits shall become
payable from the fund. All benefits shall be paid through employ-
ment offices, in accordance with such regulations as the Commis-
sion may prescribe.

(b) (1) Weekly benefit amount.—

Commencing May first, nineteen hundred forty-eight, an eligible
individual’s weekly “benefit amount” shall be the amount appearing
in Column B in the “Benefit 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. Notwithstanding
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 in which his “Highest Quarter Earnings” are found.

The “Benefit Table” contained in this section in chapter two
hundred sixty-nine of the Acts of the General Assembly of Virginia,
regular session of nineteen hundred and forty-six, shall remain
and continue in force and effect through April thirtieth, nineteen
hundred and forty-eight.

(2) Weekly Benefit for Unemployment.—Each eligible indi-
vidual who is 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; provided,
that where such excess is not a multiple of one dollar, such excess
shall be computed to the next lowest multiple of one dollar.

(3) Benefit rights of individuals shall be based solely upon
the benefit year as defined 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

eriod. The Commission shall maintain 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) (1) The Commission is hereby authorized to enter into
reciprocal arrangements with appropriate and duly authorized
agencies of other States or of the Federal Government, or both,
whereby:
(2) An individual’s benefit credits duly determined by the
Commission under this section may, when he is claiming benefits
outside the Commonwealth of Virginia, be transferred to the
agency in the state in which the claim is filed and be used by it
as the basis for payments to be made by it to such individual on
behalf of the Commission but under the provisions applicable to
individuals whose benefit credits are earned, determined and paid
out solely under the law administered by such other state agency.

(3) Similarly, an individual’s benefit credits, duly determined
under the law administered by such other state agency may, when
he is claiming within the Commonwealth of Virginia, be transferred
to the Commission and be used by it as a basis for payments to
be made by it to such individual on behalf of such other state
agency but under the provisions applicable to individuals whose
one credits are earned, determined and paid out solely under
this act.

(4) The Commission shall periodically reimburse such other
state agency, up to the amount of benefit credits thus transferred
to it by the Commission, for payments actually made by such other
state agency based on such transfers. :

(5) Similarly, such other state agency shall periodically reim-
burse the Commission, for payments actually made by it based on
the benefit credits transferred to it by such other state agency.

(6) Amounts paid under such reciprocal arrangement as is
authorized herein by another state agency on behalf of the Com-
mission shall, when reimbursed by the Commission, be chargeable
in every respect to the same accounts and in the same amounts as
if such benefits had been paid without regard to such reciprocal
arrangement.

(7) Amounts paid under any such reciprocal arrangement by
the Commission on behalf of another state agency shall be charge-
able to the Commission’s benefit account fund and the correspond-
ing reimbursements shall be credited to the same account.
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aes eee (9.4109) (#9199) (Vv 4,109)

d NOISIAIG
Section 4. 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 regula-
tions as the Commission may prescribe, except that the Commission
may, by regulation, waive or alter either or both of the require-
ments of this subsection as to such types of cases or situations
with respect to which it finds that compliance with such require-
ments 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
provisions of section six (a) of this act.

(c) Heis 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 section three on the
line which extends through Division D on which in Column B of
said “Benefit Table” appears his weekly benefit amount.

(f) Seasonal Employment——(1) Seasonal Employer—Deter-
mination—Any employer who believes that employment in his
industry or any establishment, division or department thereof is
seasonal may file with the Commission a petition for a hearing and
determination of such matter. Upon the filing of such petition, the
Commission, if it is of the opinion that the petition states sufficient
grounds therefor, shall, not less than thirty days prior to the date
fixed for the hearing, give written notice of the time, place and
purpose of such hearing. Such notice shall be served by mailing two
copies thereof to the petitioner, one copy of which shall be posted
by the petitioner at a conspicuous place at the factory or estab-
lishment involved in the proceeding, and the petitioner shall make
a certification to the Commission not later than twenty days before
the date fixed for the hearing that such notice has been so posted.
The Commission may designate and appoint a Special Examiner to
hold such hearings and make a report with respect thereto, and
upon the basis of such report the Commission may make its
determination.

If the Commission is of the opinion that such employer is
operating a seasonal industry in whole or in any separate division,
establishment or department, it shall determine such employer to
be a seasonal employer with respect to such industry as a whole,
or any division, establishment or department thereof as may be
prescribed in such determination.
The Commission may, on its own motion, or upon the applica-
tion of the governing body of any political sub-division of the
Commonwealth, investigate and determine whether an employer
is a seasonal employer, and in such cases the procedure shall be
the same as though the employer has filed a petition in the first
instance.

(2) Seasonal Industry—Definition :

Any industry in whole or in any separate division, establish-
ment or department which, because of the seasonal nature of its
operations, it is customary to operate only during a regularly
recurring period or periods of not less than thirteen weeks nor
more than forty weeks within any calendar year, may be determined
to be operated by a seasonal employer.

Any determination made during the operating season of any
employer shall not become effective until the commencement of the
next succeeding seasonal operating period of such employer, and
such determination may, after thirty days’ notice in writing to the
employer, by mailing the same to his last known address, of the
time, place and purpose of the hearing thereon, be revoked by the
Commission effective at any time after the ending date of the most
recent regular season as fixed by the original order of determination.

(3) Seasonal Employment—Definition :

“Seasonal Employment” means all employment during the
operating season at any industry in whole or at any separate divi-
sion, establishment or department thereof that may be determined
to be operated by a seasonal employer. All wages payable by a
seasonal employer to individuals who perform services for such
employer in seasonal employment only shall be deemed seasonal
wages.

(4) Seasonal Employment—Notice to workers:

Whenever any employer is determined to be a seasonal employ-
er, he shall at all times during his operating season post and main-
tain at each division, establishment or department of his seasonal
industry notices that the individuals employed therein are perform-
ing service in. seasonal employment for such seasonal employer.

(5) Seasonal Worker—Definition :

“Seasonal worker” means an individual who has base period
earnings of which at least seventy per centum were earned in seas-
onal employment from one seasonal employer.

(6) Seasonal Worker—Benefits :

Notwithstanding any other provisions of this act, no seasonal
worker shall be paid benefits except for unemployment occurring
during the operating season determined for his base period seasonal
employer.

Section 5. Disqualification for Benefits—An individual shall
be disqualified for benefits, but only after having served a waiting
period as provided in section four:
(a) For five consecutive weeks, 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.

(b) For not less than five nor more than nine 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 six nor more than nine consecutive
weeks, if it is determined by the Commission that such individual
has failed, without good cause, either to apply for available, suit-
able work when so directed by the employment office or the Com-
mission or to accept suitable work when offered him. A disqualifica-
tion 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.

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.

(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 posi-
tion offered is vacant due directly to a strike, lockout, or other
labor dispute; (B) 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; (C) if as a condi-
tion 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 because of a labor dispute at the factory, establish-
ment, or other 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 inter-
ested 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 occurs,
any of whom are participating in or financing or directly interested
in the dispute.

Provided, that if any case separate branches of work which
are commonly conducted as separate businesses in separate prem-
ises are conducted 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.

(e) For any week with respect to which or a part of which
he has received or is seeking readjustment allowances under Title
V of the Servicemen’s Readjustment Act of nineteen hundred
forty-four, Public Law three hundred forty-six, seventy-eighth
Congress or unemployment benefits under an unemployment com-
pensation law of any other state or of the United States; provided,
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.

(f) When an individual is disqualified for benefits under sub-
sections (a) or (b) or (c) of this section, the total amount of bene-
fits 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 disquali-
fied multiplied by his weekly benefit amount.

Section 6. Claims for Benefits—(a) Filing.—Claims for bene-
fits shall be made in accordance with such regulations as the Com-
mission 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 statements shall be supplied by
the Commission to each employer without cost to him.

(b) Determinations and Decisions by a Deputy—Appeals
Therefrom.—A representative designated by the Commission, and
hereinafter referred to as a deputy, shall promptly examine the
claim and, on the basis of the facts found by him, shall either
determine whether or not such claim is valid, and if valid, the week
with respect to which benefits shall commence, the weekly benefit
amount payable 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 pro-
cedure described in subsection (c) of this section, except that in
any case in which the payment or denial of benefits will be deter-
mined by the provisions of section five (d) of this act, the deputy
shall promptly transmit his full finding of fact with respect to that
subsection to the Commission, which, on the basis of the evidence
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.
Upon the filing of an initial claim for benefits, the Commission shall
cause an informatory notice of such filing to be mailed to the most
recent employing unit of the claimant, but the failure to furnish
such notice shall not have any effect upon the claim for benefits.
Notice of a determination upon a claim shall be promptly given to
the claimant by delivery thereof or by mailing such notice to the
claimant’s last known address. In addition, notice of any determina-
tion which involves the application of the provisions of section five
of this act, together with the reasons therefor, shall be promptly
given in the same manner to the most recent employing unit by
whom the claimant was last employed; provided that the Commis-
sion may dispense with the giving of notice of any determination
to any employing unit and such employing unit shall not be entitled
to such notice if it has failed to indicate prior to the determination,
as required by regulation promulgated by the Commission, that
the claimant may be ineligible or disqualified under any provision
of this act. The deputy shall promptly notify the claimant of any
decision made by him at any time which in any manner denies
benefits to the claimant for one or more weeks. Unless the claimant
or any such employing unit, within five calendar days after the
delivery of such notification, or within seven calendar days aiter
such notification was mailed to his last known address, or within
ten days after such notification was mailed to the last known
address of an interstate claimant, files an appeal from such deter-
mination or decision, such determination or decision shall be final
and benefits shall be paid or denied in accordance therewith. If an
appeal is duly filed from any such determination or decision, bene-
fits with respect. to the weeks involved in the appeal shall be paid
only after a final determination of the issue involved; 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 regardless of any appeal which
may thereafter be taken, except that should further appeal be taken
benefits so paid shall result in a benefit wage charge to the account
of the employer under section seven 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 should have awarded benefits to the
claimant or claimants involved in such appeal.

(c) Appeals.—Appeals filed under subsection (b) of this sec-
tion shall be heard by an appeal tribunal appointed pursuant to
subsection (d) of this section. Such appeal tribunal, after affording
the claimant and any other parties thereto reasonable opportunity
for a fair hearing, shall have jurisdiction to consider all issues with
respect to the claim since the initial filing thereof, and shall affirm,
set aside, reverse, modify, or alter the findings of fact and decision
of the Commission or the deputy, and may enter such order or
decision with respect to the claim since the initial filing thereof
as said appeal tribunal finds.should have been entered; provided,
however, that no such order or decision shall affect benefits already
paid except in accordance with the provisions of section sixteen (d)
of the act. 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 of mailing of such decision, further
appeal is initiated pursuant to subsection (e) of this section. Any
further decision by an appeal tribunal involving whether an em-
ploying unit constitutes an employer or whether services performed
for or in connection with the business of an employing unit consti-
tute employment for such employing 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 tri-
bunals consisting 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 repre-
sentative of employees; each of the latter two members shall sérve
at the pleasure of the Commission and be paid a fee of not more
than ten dollars per day of active service on such tribunal plus
necessary expenses. No person shall participate on behalf of the
Commission in any case in which he is an interested party. The
Commission may designate alternates to serve in the absence or
disqualification 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 taking of additional evidence, or shall permit,
any of the parties to such decision 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 become 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 Com-
mission shall be deemed to be a party to any judicial action involv-
ing any such decision, and shall be represented in any such judicial
action by the Attorney General. Any such decision by the Commis-
sion involving whether an employing unit constitutes an employer
or whether services performed for or in connection with business
of an employing unit constitute employment for such employing
unit from which no judicial review is had pursuant to subsection
(h) of this section 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 the Commission.

The Commissioner appointéd pursuant to section ten (10) of
this act, shall have the power to designate a special examiner to
hear appeals to the Commission under this subsection, and may
authorize and empower such special examiner to decide any such
appeal so heard, in which event the decision of such special exam-
iner shall be the final decision of the Commission under this sub-
section, subject to judicial review under subsection (h) of this
section.

(f) Procedure.—The manner in which disputed claims shall be
presented, the reports thereon required from the claimant and from
employers, and the conduct of hearings and appeals before any
deputy, appeal tribunal or the Commission shal! 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.——Witnesses 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 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 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
verified, 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 completed 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 Commission 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 jurisdic-
tion 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 con-
formity 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 employ-
er 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 jurisdic-
tion to review such decision regardless of the amount involved in
any claim for benefits. It shall not be necessary, in any proceeding
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 judi-
cial proceeding, the Commission shall enter an order in accordance
with such determination.

(i) Re-determination of Claims.—Notwithstanding any other
provisions of this act, the Commission may, at any time within one
year from the date the deputy’s determination becomes final pur-
suant to section six (b) of this act, re-determine any claim decided
by a deputy respecting which no appeal was taken by the claimant
from the determination of such deputy. Notice of any such redeter-
mination shall be given promptly to the interested parties, and an
appeal may be had from such redetermination within the time and
in the manner prescribed for an appeal from any original determina-
tion, and if no such appeal is filed such redetermination shall be
final, Any redetermination 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, except 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 vacan-
cies shall be filled by appointment 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 Commission. The
Commission shall furnish the board such stenographic and clerical
assistance as the board may require. All compensation of the mem-
bers of the board and all necessary expenses for the operation
thereof 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 Com-
mission 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 perform the same functions
vested in the Commission in this act for review of decisions by 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 produc-
tion of books, papers, correspondence, memoranda, and other rec-
ords deemed necessary as evidence in connection with disputed
claims. The board of review may hold its hearings in the county
or city where the claimant was last employed, except that hearings
involving 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 matters 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 proceedings 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 Com-
mission, the Commission shall have no jurisdiction under subsec-
tion (e) of this section. Any decision of the board of review shall
become final ten days after the date of notification or mailing
thereof and judicial review thereof shall be permitted the claimant,
the Commission, or any interested party claiming to be aggrieved
thereby, and in any judicial action involving any such decision the
Commission 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 contributions under this.act.

Within the time specified in subsection (h) of this section, the
Commission, 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 court or hustings court
of the city, or if the city has no corporation court or hustings court,
then in the circuit court of the city, or if the city has no circuit
court, then in the circuit court of the county in which such city is
geographically located, in which the individual who filed the claim
was last employed, in the State of Virginia, 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 at his last known address shall be sufficient
service thereof. The Commission shall file along with its petition
or answer a certified copy of the record of the case, including all
documents and papers and a transcript of all testimony taken in
the matter, together with the board of review’s findings, conclusions
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 jurisdiction of the said court shall be confined to questions of
law. The court may order additional evidence to be taken by the
board of review, which said additional evidence, findings of fact or
conclusions, together 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 decision of such court to the
Supreme Court of Appeals, in conformity with general law govern-
ing 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 per-
formed 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 ariy 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 Commis-
sion 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, deter-
mination with respect to whether an employing unit constitutes
an employer and whether services performed for or in connection
with the business of an employing 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 determination 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 deter-
mination 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 twelve of the Core 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 decision therein. In any judicial proceeding under this section,
the findings 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 repre-
sented by the Attorney General. A determination by the Commis-
sion from which no judicial review has been had shall be conclusive
in any subsequent judicial proceeding involving liability for contri-
butions against said employing unit or its successor under the
provision of sections two (i) (2) and fourteen (c) (1) of this act.
(b) Every employer shall, on or before January thirty-first,
nineteen hundred 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 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 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 during the calendar year nineteen hundred
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 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) On and after January first, nineteen hundred 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 employ-
ment (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 Commission for the fund in accordance with such
regulations as the Commission may prescribe. The Commission is
hereby expressly authorized to require filing of payroll and contri-
bution 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
during which year such taxes are imposed, or in the event the
time be extended for filing the return of the taxes imposed by Title
IX of the Social Security Act for the year for which such taxes
are imposed, then before the expiration of such extension.

If the remuneration payable to an individual is not based upon
a fixed period or duration of time or if the individual’s wages are
payable at irregular intervals or in such manner as not to extend
regularly over the period of employment, the wages for any week
or for any calendar quarter for the purpose of computing an indi-
vidual’s right to unemployment benefits only shall be determined
in such manner as may by regulation be prescribed. Such regula-
tions shall, so far as possible, secure results reasonably similar to
those which would prevail if the individual’s wages were payable
at regular intervals.

If any employing unit fails to file with the Commission any
report which the Commission deems necessary for the effective
administration of this act within thirty days after the Commission
requires the same by written notice mailed to the last known
address of such employing unit, the Commission may determine
on the basis of such information as it may have whether such
employing unit is an employer, unless such determination has
already been made, and may assess the amount of contribution
due from such employer and shall give written notice of such
determination and assessment to such employer. Such determina-
tion and assessment shall be final unless such employer shall, within
twenty days after the mailing to the employer at his last known
address or other service of the notice of such determination and/or
assessment, apply to the Commission for a review of such deter-
mination and assessment or unless the Commission shall, of its
own motion, set aside, reduce or increase the same.

Each employer shall pay taxes equal to the following percent-
ages of 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 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
thirty-eight and during each succeeding calendar year, after Decem-
ber 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 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
Federal tax now levied under section sixteen hundred of the Fed-
eral Internal Revenue Code, or that may hereafter be levied under
any subsequent amendment, or amendments thereto, than is now
permitted under section sixteen hundred one (c) of said Federal
Internal Revenue Code, to an employer with respect to any State
unemployment compensation laws whose standard contribution
tate or 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 employers under this act shall, by commission rule promul-
gated 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 become effective on the same date as such higher
maximum rate of credit becomes permissible under such Federal
amendment.

(4) If section three hundred three (a)(5) of Title III of the
Social Security Act and section sixteen hundred 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 col-
lected or to be collected under the state unemployment compensa-
tion 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 permit such use by the Commission under this act; and such
modifications 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 employer 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 wages of individuals in the employ of any
employer. 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 forty-seven, the contribution rate of each
employer, with respect to whom during the most recent three
consecutive completed calendar years throughout which any indi-
vidual in his employ could have received benefits, if eligible, shall
be computed as hereinafter provided. For the purposes of this sub-
section the payrolls, 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 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.

(1) Effective May first, nineteen hundred forty-eight, when,
in any benefit year, an individual is paid benefits for the third
compensable week of total or partial unemployment, his wages
during his base period shall be termed the individual’s “benefit
wage”. If such individual’s unemployment is caused by separation
from an employer subject to this act, such individual’s wages during
his base period shall be treated for the purposes of this subsection
as though they had been paid by such employer in the calendar
year in which such benefits are first_paid. For the purposes of this
subsection, benefit wages shall include only the first twelve hundred
and eighty ($1280.00) dollars of wages received by any one indi-
vidual from all employers in such individual’s base period.

A claimant’s unemployment shall be deemed to be caused by
separation from an employer subject to this act unless the Com-
mission determines that such claimant has, between the date of
his separation from such employer and the end of his third com-
pensable week, performed bona fide work for an employer not
subject to this act. The Commission may, by regulation, define
“bona fide work” for the purposes of this subsection.

(2) Any employer’s benefit wages for a given calendar year
shall be the total at the benefit wages which, pursuant to the pro-
visions of subsection (1) of this section prior to and subsequent to
May first, nineteen hundred and forty-eight, are wages deemed to
have been paid by such employer.

The provisions of paragraphs (1) and (2) of this subsection (e)
as contained in chapter two hundred sixty-nine of the Acts of the
General Assembly of Virginia, regular session of nineteen hundred
and forty-six, shall remain and continue in force and effect through
April thirtieth, nineteen hundred and forty-eight.

(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 respect 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 cred-
ited 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 centum (1%).

(5) Subject to the provision of paral six of this subsec-
tion, 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 percentage 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 quarter, starting on March
thirty-first, nineteen hundred forty-eight, the balance which shall
stand to the credit of the account of the Commonwealth of Vir-
ginia in the Unemployment Trust Fund in the treasury of the
United States, including amounts withdrawn therefrom but not
expended at the end of such quarter, and excluding any amount
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 payrolls upon which contributions were paid in any
calendar year more than nine years prior to the most recently
completed calendar year.

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 contribution rate of each
employer computed or determined in accordance with the previous
provisions of this section shall be increased to the next highest
rate in the following table, provided that no employer’s contribu-
tion 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 (c) 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 busi-
ness, 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 exe-
cuted and filed with the Commission on a form approved by the
Commission a waiver relinquishing all rights to prior experience
for the purpose of obtaining 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 em-
ploying 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 calendar year
in which said waiver is filed with the Commission prior to March
fifteenth of such year. 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 mentioned not
later than March fifteenth of the succeeding calendar year, be sub-
ject 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 section for
all employers, The experience of the predecessor and the successor
shall be deemed to be the experience of a single employing unit
for the purpose of determining the rate of contributions for the
successor as of the first day of January of any calendar year subse-
quent to the calendar year in which the acquisition occurred in
which the waiver herein required, together with such information
regarding the prior experience of the seller as may be required by
the Commission, is filed not later than March fifteenth of such year.

(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 forty, or January first, nine-
teen hundred 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

When the

State Column Column Column Column Column Column
experience 1 6
factoris —— ——_— —_— — —— ——

If the employer’s benefit wage ratio does not exceed:

1% orless 30% 50% 100% 150% 200% 250%
2 15 25 50 75 100 125
3 10 17 33 50 66 83
4 8 13 25 38 50 63
5 6 10 20 30 40 50
6 5 9 17 25 34 42
7 4 7 14 21 29 36
8 4 7 13 19 25 31
9 3 6 11 16 22 28
10 3 5 10 15 20 25
11 3 5 9 14 18 23
12 3 4 8 13 17 21
13 2 4 8 12 15 19
14 2 4 7 11 14 18
15 2 4 7 10 13 17
16 2 3 6 9 12 16
17 2 3 6 9 12 15
18 2 3 6 8 11 14
19 2 3 5 8 11 13
20 2 3 5 8 10 13
21 2 3 5 7 10 12
22 2 3 5 7 9 11
23 1 2 4 7 9 11
24 1 2 4 6 8 10
25 1 2 4 6 8 10
section, provided, however, no contribution rate of less than two
and seven-tenths per centum shall be allowed any such employer
except upon wages earned in his employment subsequent to the
last day of such thirty-six month period.

(10) Notwithstanding the preceding provisions of this section,
if section sixteen hundred two of the Internal Revenue Code is
amended so as to permit the allowance of an additional credit under
section sixteen hundred one (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
act, in that event the Commission, by a regulation promulgated
under section eleven (b) of this act, shall fix and determine the
contribution rate of all such employers at such reduced rate as shall
then be permissible under such Federal amendment.

Section 8. Period, Election, and Termination of Employers
Coverage.—(a) Any employing unit which is or becomes an em-
ployer subject to this act within any calendar year shall be subject
to this act during the whole of such calendar year.

(b) Except as otherwise provided in this subsection and sub-
section (c) of this section, an employing unit shall cease to be an
employer subject 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 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
employed eight or more individuals in employment subject 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 January first,
nineteen hundred 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 one of the Federal Internal
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 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 eight or more individuals subject to this act.

After December thirty-first, nineteen hundred forty-five, when-
ever 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 act as of the first day of January of the
calendar year in which such notice is given.

(c) (1) Any employing unit, not otherwise subject to this act,
which files with the Commission its written election to become an
employer subject hereto for not less than two calendar years, shall,
with the written approval of such election by the Commission,
become an employer subject hereto to the same extent as all other
employers as of January first of the calendar year for which such
election is approved, and shall cease to be subject hereto as of
January first of any calendar year 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 employing 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 consti-
tute employment as defined in this act are performed, may file
with the Commission 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 employ-
ment subject to this act from and after the date stated in such
approval. Such services shall cease to be deemed employment
subject thereto 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 January 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 pursu-
ant 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 subsection shall from July first,
nineteen hundred forty-six be paid into the special unemployment
compensation administration fund created by section thirteen-A.

(1) No interest shall be assessed against or collected from any
employer upon any contributions which accrued against such
employer during the period of service of such employer in the
armed forces of the United States, provided such service occurred
at any time between January first, nineteen hundred and forty-one
and January first, nineteen hundred and forty-six. Any proof of
such service satisfactory to the Commission shall be sufficient.
Any such employer who has already paid to the Commission any
interest on contributions which would have been abated under this
provision shall be entitled to a refund for the amount of interest
so paid upon the filing of an application therefor on or before
June thirtieth, nineteen hundred and forty-nine.

(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 contribu-
tions 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 assessed 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 obtained on which the execution was issued continues in
default of payment of the contributions, or any portion thereof,
covered by the execution, 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 employment for an employer who is a receiver,
trustee or other fiduciary shall be a lien against all the assets in
the custody or control of such receiver, 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 lien 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 subdivisions, 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, transfer or sell out his business, or shall cease
to do business and such employer shall be required, by the next
reporting date as prescribed by the Commission, to file with the
Commission all reports 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 required 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 Commission showing that the contribu-
tions have been paid, or a certificate 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 employ-
er in consideration of a lease or other transfer and the contribu-
tions 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. Whenever . the
purchaser or successor of such employer shall file with the Com-
mission a written request for a statement showing the amount of
tax, if any, due by such employer unless such statement is fur-
nished to such purchaser or successor of such employer within
ninety days from the date such written request was filed, such
purchaser or successor 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 subse-
quent 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 connection
with subsequent contribution payments by him, or if such adjust-
ment cannot be made the Commission shall refund said amount,
without interest, from the fund. For like cause and within the same
period, adjustment or refund may be so made on the Commission’s
own initiative.

(1) Any employing unit which the Commission finds has
erroneously paid prior to June thirtieth, nineteen hundred forty-one
such contributions or interest for the calendar year nineteen hun-
dred thirty-six, nineteen hundred thirty-seven, nineteen hundred
thirty-eight, nineteen hundred thirty-nine, nineteen hundred forty,
or nineteen hundred forty-one, applying for refund 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
Insurance Act, refund or adjustment thereof shall be made, without
interest, and without regard to the due date thereof, upon satis-
factory 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.

Any person who has been finally convicted under this section
shall be deprived of any further benefits based upon wage credits
earned during his base period in effect at the time the offense was
committed.

(b) Any employing unit or any officer or agent of an employ-
ing 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 bene-
fits 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 employing unit under this act or
who wilfully fails or refuses to furnish any reports required here-
under or to produce or permit the inspection or copying of records
as required hereunder, shall be guilty of a misdemeanor 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 provided 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 discretion 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, how-
ever, 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 is 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 Commission.

(e) Whenever the Commission finds that a discharged em-
ployee has received back pay at his customary wage rate from
his employer after reinstatement 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 effective and in force on and after its passage.