R 421.184 Employer elections to cover multistate workers.

Rule 184. (1) The following rules shall govern the Michigan employment security commission in its administrative cooperation with other states subscribing to the interstate reciprocal coverage arrangement, hereinafter referred to as "the arrangement." (2) As used in this rule, unless the context clearly indicates otherwise: (a) "Agency" means any officer, board, commission, or other authority charged with the administration of the unemployment compensation law of a participating jurisdiction. (b) "Interested jurisdiction" means any participating jurisdiction to which an election submitted under this rule is sent for its approval; and "interested agency" means the agency of such jurisdiction. (c) "Jurisdiction" means any state of the United States or, with respect to the federal government, the coverage of any federal unemployment compensation law. (d) "Participating jurisdiction" means a jurisdiction whose administrative agency has subscribed to the arrangement and whose adherence thereto has not terminated. (e) "Services customarily performed by an individual in more than 1 jurisdiction" means services performed in more than 1 jurisdiction during a reasonable period, if the nature of the services gives reasonable assurance that they will continue to be performed in more than 1 jurisdiction, or if such services are required or expected to be performed in more than 1 jurisdiction under the election. (3) The submission and approval of coverage elections under the interstate reciprocal coverage arrangement shall comply with all of the following: (a) Any employing unit may file an election to cover, under the law of a single participating jurisdiction, all of the services performed for it by any individual who customarily works for it in more than 1 participating jurisdiction. Such an election may be filed, with respect to an individual, with any participating jurisdiction in which: (i) Any part of the individual's services are performed. (ii) The individual has his residence. (iii) The employing unit maintains a place of business to which the individual's services bear a reasonable relation. (b) The agency of the elected jurisdiction, thus selected and determined, shall initially approve or disapprove the election. If such agency approves the election, then it shall forward a copy thereof to the agency of each other participating jurisdiction specified thereon, under whose unemployment compensation law the individual or individuals in question might, in the absence of such election, be covered. Each such interested agency shall approve or disapprove the election as promptly as practicable and shall notify the agency of the elected jurisdiction accordingly. If its law so requires, any such interested agency may, before taking such action, require from the electing employing unit satisfactory evidence that the affected employees have been notified of, and have acquiesced in, the election. (c) If the agency of the elected jurisdiction or the agency of any interested jurisdiction disapproves the election, then the disapproving agency shall notify the elected jurisdiction and the electing employing unit of its action and of its reasons therefor. (d) Such an election shall take effect as to the elected jurisdiction only if approved by its agency and by 1 or more interested agencies. An election thus approved shall take effect, as to any interested agency, only if it is approved by such agency. (e) In case any such election is approved only in part or is disapproved by some of such agencies, the electing employing unit may withdraw its election within 10 days after being notified of such action. (4) The effective period of elections is as follows: (a) An election duly approved under this rule shall become effective at the beginning of the calendar quarter in which the election was submitted, unless the election, as approved, specifies the beginning of a different calendar quarter. If the electing unit requests an earlier effective date than the beginning of the calendar quarter in which the election is submitted, such earlier date may be approved solely as to those interested jurisdictions in which the employer has no liability to pay contributions for the earlier period in question. (b) The application of an election to any individual under this rule shall terminate if the agency of the elected jurisdiction finds that the nature of the services customarily performed by the individual for the electing unit has changed so that they are no longer customarily performed in more than 1 participating jurisdiction. Such termination shall be effective as of the close of the calendar quarter in which notice of such finding is mailed to all parties affected. Except as provided in this subdivision, each election approved hereunder shall remain in effect through the close of the calendar year in which it is submitted and thereafter until the close of the calendar quarter in which the electing unit gives written notice of its termination to all affected agencies. Whenever an election under this rule ceases to apply to any individual under this subdivision, the electing unit shall notify the affected individual accordingly. (5) The electing unit shall file reports and notices as follows: (a) The electing unit shall promptly notify each individual affected by its approved election on the form supplied by the elected jurisdiction and shall furnish the elected agency a copy of such notice. (b) Whenever an individual covered by an election under this rule is separated from his employment, the electing unit shall again notify him forthwith as to the jurisdiction under whose unemployment compensation law his services have been covered. If at the time of the termination the individual is not located in the elected jurisdiction, then the electing unit shall notify him as to the procedure for filing interstate benefit claims. (c) The electing unit shall immediately report to the elected jurisdiction any change which occurs in the conditions of employment pertinent to its election, such as cases where an individual's services for the employer cease to be customarily performed in more than 1 participating jurisdiction, or where a change in the work assigned to an individual requires him to perform services in a new participating jurisdiction. (6) The Michigan employment security commission hereby delegates to its director authority to approve or disapprove reciprocal coverage elections pursuant to this rule.