NORTH CAROLINA GENERAL ASSEMBLY
1961 SESSION

CHAPTER 454
HOUSE BILL 418

AN ACT TO AMEND CHAPTER 96, GENERAL STATUTES OF NORTH CAROLINA, AS AMENDED, KNOWN AS THE EMPLOYMENT SECURITY LAW, TO PROVIDE FOR THE ESTABLISHMENT OF CERTAIN QUALIFYING CONDITIONS TO PROMOTE A CLOSER ATTACHMENT TO THE LABOR FORCE OF CLAIMANTS; TO INCREASE BENEFIT PAYMENTS; TO PROVIDE FOR MORE LIBERAL TERMINATION OF EMPLOYERS UNDER THE LAW; TO PROVIDE FOR THE RIGHT OF APPEAL BY THE COMMISSION IN CERTAIN CASES FROM JUDGMENTS OF SUPERIOR COURTS; TO INCREASE COVERAGE UNDER THE LAW ONLY TO THE EXTENT THAT COVERAGE HAS BEEN INCREASED UNDER THE FEDERAL UNEMPLOYMENT TAX ACT; AND TO FURTHER CLARIFY CERTAIN PROVISIONS OF SAID CHAPTER.

The General Assembly of North Carolina do enact:

Section 1.  That Article 1, Chapter 96, Section 96‑6(b), General Statutes of North Carolina as such appears in the 1958 Replacement Volume 2C thereof, be and the same is hereby amended by striking out in lines 12 and 13 thereof the words "by the State Auditor" and inserting in lieu thereof the following:
"as provided in Section 143‑3.2, General Statutes".
Sec. 2.  That Article 1, Chapter 96, Section 96‑6(c), General Statutes of North Carolina as such appears in the 1958 Replacement Volume 2C thereof, be and the same is hereby amended by striking out in line 8 thereof the words "by the State Auditor" and inserting in lieu thereof the following:
"as provided in Section 143‑3.2, General Statutes and".
Sec. 3.  That Article 1, Chapter 96, Section 96‑6(c), General Statutes of North Carolina as such appears in the 1958 Replacement Volume 2C thereof, be further amended by striking out the sentence beginning in line 13 thereof with the words "All warrants issued" and ending in line 15 with the words "for that purpose" and inserting in lieu thereof the following:
"All warrants issued upon the treasurer for the payment of benefits and refunds shall be issued as provided in G.S. 143‑3.2 as requisitioned by the Chairman of the Commission or a duly authorized agent of the Commission for that purpose."
Sec. 4.  That Article 2, Chapter 96, Section 96‑8(5)a., General Statutes of North Carolina as such appears in the 1959 Supplement to the 1958 Replacement Volume 2C thereof, be and the same is hereby amended by striking out that part which begins in line 1 with the words "Any employing unit" and ends in line 20 with "in each such week):" and inserting the following:
"With respect to any calendar year prior to 1956, any employing unit which was an employer during such year as previously defined in this Chapter applicable to any such year. With respect to employment during the calendar year 1956, 'employer' means any employing unit which in each of 20 different weeks within such calendar year (whether or not such weeks are or were consecutive) has, or had in employment, four or more individuals (not necessarily simultaneously and irrespective of whether the same individuals are or were employed in each such week), and with respect to employment on and after January 1, 1957, employer means any employing unit which in each of 20 different weeks within the current or preceding calendar year (whether or not such weeks are or were consecutive) has, or had in employment, four or more individuals (not necessarily simultaneously and irrespective of whether the same individuals are or were employed in each such week)".
Sec. 5.  That Article 2, Chapter 96, Section 96‑8(5)b., General Statutes of North Carolina as such appears in the 1959 Supplement to the 1958 Replacement Volume 2C thereof, be and the same is hereby amended by striking out the last sentence of paragraph b. and inserting the following:
"A successor by total acquisition under the provisions of this paragraph may be relieved from coverage hereunder by making written application with the Commission within 60 days from the date the Commission mails him a notification of his liability and provided the Commission finds the predecessor was an employer at the time of such acquisition only because such predecessor had failed to make application for termination of coverage as provided in Section 96‑11 of this Chapter. A successor under the provisions of this paragraph who becomes an employer by virtue of having acquired a part of the organization, trade, or business of the predecessor hereunder may be relieved from coverage upon making written application with the Commission within 60 days from the date the Commission mails him a notification of his liability and the Commission finds that the predecessor could have terminated by making the application under Section 96‑11 if the part acquired had constituted all of the predecessor's business.
Sec. 6.  That Article 2, Chapter 96, Section 96‑8(5), General Statutes of North Carolina as such appears in the 1959 Supplement to the 1958 Replacement Volume 2C thereof, be and the same is hereby amended by adding thereto the following:
"i.	Any employing unit which, after July 1, 1961, acquired a part of the organization, trade, or business of another which if treated as a single unit with such part acquired would be an employer under paragraph a. of this subdivision if such part acquired had constituted all of the organization, trade, or business of the predecessor."
Sec. 7.  That Article 2, Chapter 96, Section 96‑8(6)f., General Statutes of North Carolina as such appears in the 1959 Supplement to the 1958 Replacement Volume 2C thereof, be and the same is hereby amended by adding a new subparagraph, numbered four, to read as follows:
"4.	Any service of whatever nature performed after December 31, 1961, by an individual for an employing unit on or in connection with an American aircraft under a contract of service which is entered into within the United States or during the performance of which and while the employee is employed on the aircraft it touches at a port in the United States, if such individual is employed on and in connection with such aircraft when outside the United States; provided such service is performed on or in connection with the operations of an American aircraft and such operations are ordinarily and regularly supervised, managed, directed, and controlled from an operating office maintained by the employing unit in this State."
Sec. 8.  That Article 2, Chapter 96, Section 96‑8(6)g.2., General Statutes of North Carolina as such appears in the 1959 Supplement to the 1958 Replacement Volume 2C thereof, be and the same is hereby amended by rewriting the proviso beginning in line 18 with the words "Provided, that if this State" and ending in line 26 with the word "collected." to read as follows:
"Provided, that if this State shall not be certified for any year by the Secretary of Labor under Section 3304 of the Federal Internal Revenue Code of 1954, the payments required of such instrumentalities with respect to such year shall be refunded by the Commission from the fund in the same manner and within the same period as is provided in Section 96‑10(e) with respect to contributions erroneously collected."
Sec. 9.  That Article 2, Chapter 96, Section 96‑8(6)g.6., General Statutes of North Carolina as such appears in the 1959 Supplement to the 1958 Replacement Volume 2C thereof, be and the same is hereby amended by striking out the first three lines of said subparagraph 6 together with that portion of line 4 thereof ending with the words "United States;" and inserting in lieu thereof the following:
"6.	Service performed on or in connection with a vessel or aircraft not an American vessel or American aircraft by an individual if the individual is performing services on and in connection with such vessel or aircraft when outside the United States;"
Sec. 10.  That Article 2, Chapter 96, Section 96‑8(6)g.8., General Statutes of North Carolina as such appears in the 1959 Supplement to the 1958 Replacement Volume 2C thereof, be and the same is hereby amended by inserting after the word "performed" in line 1 thereof the words "prior to January 1, 1962," and be further amended by adding after the semicolon at the end of subparagraph 8 the following:
"and employment shall not include after December 31, 1961, service performed in the employ of a corporation, community chest, fund, or foundation, organized and operated exclusively for religious, charitable, scientific, testing for public safety, 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 and which is exempt from income tax under Section 501(a), Internal Revenue Code of 1954;".
Sec. 11.  That Article 2, Chapter 96, Section 96‑8(6)g.11., General Statutes of North Carolina as such appears in the 1959 Supplement to the 1958 Replacement Volume 2C thereof, be and the same is hereby amended by striking out subparagraph 11 and inserting in lieu thereof the following:
"11.	Service performed before January 1, 1962, in connection with the collection of dues or premiums for a fraternal benefit society, order, or association performed away from the home office, or its ritualistic service in connection with any such society, order, or association;".
Sec. 11 1/2.  That Article 2, Chapter 96, Section 96‑8(6)g., General Statutes of North Carolina as such appears in the 1959 Supplement to the 1958 Replacement Volume 2C thereof, be and the same is hereby amended by adding to paragraph g. the following subparagraphs:
"17.	Service performed after December 31, 1961, in any calendar quarter in the employ of any organization exempt from income tax under the provisions of Section 501(a) of the Internal Revenue Code of 1954 (other than an organization described in Section 401(a) of said Internal Revenue Code of 1954) or under Section 521 of the Internal Revenue Code of 1954, if the remuneration for such service is less than fifty dollars ($50.00).
"18.	Service performed after December 31, 1961, in the employ of a school, college, or university, if such service is performed by a student who is enrolled and is regularly attending classes at such school, college, or university."
Sec. 12.  That Article 2, Chapter 96, Section 96‑8(9), General Statutes of North Carolina as such appears in the 1959 Supplement to the 1958 Replacement Volume 2C thereof, be and the same is hereby amended by striking out in line 2 thereof the words "Alaska, Hawaii" including the comma between such words and inserting in lieu thereof the following: "Puerto Rico."
Sec. 13.  That Article 2, Chapter 96, Section 96‑8(10)b. and c., General Statutes of North Carolina as such appear in the 1959 Supplement to the 1958 Replacement Volume 2C thereof, be and the same are hereby amended by rewriting paragraphs b. and c. as follows:
"b.	An individual shall be deemed 'partially unemployed' in any week in which, because of lack of work, he worked less than sixty per cent of the customary scheduled full‑time hours of the industry or plant in which he is employed, and with respect to which the wages payable to him are less than his weekly benefit amount plus an amount equal to one‑half of such weekly benefit amount figured to the nearest multiple of one dollar ($1.00). Provided, however, the Commission may find the customary scheduled full‑time hours of any individual to be less or more than the customary scheduled full‑time hours of the industry or plant in which he is employed, if such individual customarily performs services in an occupation which requires that he customarily work a greater or smaller number of hours than the customary scheduled full‑time hours of the industry or plant in which he is employed.
"c.	An individual shall be deemed 'part totally unemployed' in any week in which his earnings from odd job or subsidiary work are less than his weekly benefit amount plus an amount equal to one-half his weekly benefit amount figured to the nearest multiple of one dollar ($1.00)."
Sec. 14.  That Article 2, Chapter 96, Section 96‑8(17), General Statutes of North Carolina as such appears in the 1959 Supplement to the 1958 Replacement Volume 2C thereof, be and the same is hereby amended by designating said subdivision (17) as "(17)a." and adding thereto the following paragraph:
"b.	As to claims filed on or after July 1, 1961, by individuals who do not have benefit years in progress, 'benefit year' with respect to any such individual means the one‑year period beginning with the first day of the first week with respect to which the individual first registers for work and files a valid claim for benefits. After the termination of such benefit year the next benefit year shall be the next one‑year period beginning with the first day of the first week with respect to which such individual registers for work and files a valid claim. A valid claim shall be deemed to have been filed if such individual, at the time the claim is filed, is unemployed and has been paid wages in more than one calendar quarter of his base period amounting to at least the minimum of the qualifying base period wages as set forth in the applicable table in Section 96‑12 and when such individual has in his last established benefit year exhausted his maximum benefit entitlement, he must also have met the provisions of Section 96‑12(b)(3)."
Sec. 15.  That Article 2, Chapter 96, Section 96‑8(20), General Statutes of North Carolina as such appears in the 1959 Supplement to the 1958 Replacement Volume 2C thereof, be and the same is hereby amended by striking out the period at the end of said subdivision (20) following the word "state" and adding thereto the following:
"; and the term 'American aircraft' means an aircraft registered under the laws of the United States."
Sec. 16.  That Article 2, Chapter 96, Section 96‑11(d), General Statutes of North Carolina as such appears in the 1959 Supplement to the 1958 Replacement Volume 2C thereof, be and the same is hereby amended by striking out the first sentence thereof and inserting the following:
"An employer who has not had any individuals in employment for a period of two consecutive calendar years shall cease to be an employer subject to this Chapter."
Sec. 17.  That Article 2, Chapter 96, Section 96‑12(b), General Statutes of North Carolina as such appears in the 1959 Supplement to the 1958 Replacement Volume 2C thereof, be and the same is hereby amended by rewriting subsection (b) to read as follows:
"(b)	(1)	Each eligible individual whose benefit years begins on and after the first day of July, 1957, and prior to the first day of July, 1961, and who is totally unemployed during any week as defined by Section 96‑8(10)a. shall be paid benefits with respect to such week or weeks at the rate per week appearing in the following table in Column II opposite which in Column I appear the wages paid to such individual during his base period with respect to employment:
	Column I	Column II
	Wages Paid During	Weekly Benefit
	Base Period	Amount
Less than	$500.00			Ineligible
$	500.00	to	$609.99		$11.00
	610.00	719.99		12.00
	720.00	829.99		13.00
	830.00	949.99		14.00
	950.00	1,069.99		15.00
1,070.00	1,189.99		16.00
1,190.00	1,309.99		17.00
1,310.00	1,429.99		18.00
1,430.00	1,549.99		19.00
1,550.00	1,669.99		20.00
1,670.00	1,789.99		21.00
1,790.00	1,909.99		22.00
1,910.00	2,029.99		23.00
2,030.00	2,149.99		24.00
2,150.00	2,269.99		25.00
2,270.00	2,389.99		26.00
2,390.00	2,509.99		27.00
2,510.00	2,629.99		28.00
2,630.00	2,749.99		29.00
2,750.00	2,869.99		30.00
2,870.00	2,999.99		31.00
3,000.00	and over		32.00
"(2)	Each eligible individual whose benefit year begins on and after the first day of July, 1961, and who is totally unemployed as defined by Section 96‑8(10)a. shall be paid benefits with respect to such week or weeks at the rate per week appearing in the following table in Column II opposite which in Column I appear the wages paid to such individual during his base period with respect to employment:
	Column I	Column II
Wages Paid During	Weekly Benefit
	Base Period	Amount
Less than	$550.00			Ineligible
$	550.00	to	$649.99		$12.00
	650.00	749.99		13.00
	750.00	849.99		14.00
	850.00	949.99		15.00
	950.00	1,059.99		16.00
1,060.00	1,169.99		17.00
1,170.00	1,279.99		18.00
1,280.00	1,389.99		19.00
1,390.00	1,499.99		20.00
1,500.00	1,619.99		21.00
1,620.00	1,739.99		22.00
1,740.00	1,859.99		23.00
1,860.00	1,979.99		24.00
1,980.00	2,099.99		25.00
2,100.00	2,239.99		26.00
2,240.00	2,379.99		27.00
2,380.00	2,529.99		28.00
2,530.00	2,679.99		29.00
2,680.00	2,839.99		30.00
2,840.00	2,999.99		31.00
3,000.00	3,199.99		32.00
3,200.00	3,399.99		33.00
3,400.00	3,599.99		34.00
3,600.00	and over		35.00
"(3)	Qualifying Wages for Exhaustees. An individual who has exhausted his maximum benefit entitlement in his last previous benefit year who files a claim for benefits on or after July 1, 1961, shall not be entitled to benefits unless he has been paid qualifying wages required in Section 96‑12(b)(2) and since the beginning date of his last established previous benefit year and before the date upon which he files his new benefit claim has been paid wages equal to at least ten times the weekly benefit amount of the new benefit year claim. Such wages must have been earned with an employer subject to the provisions of this Chapter or some other State employment security law or in Federal service as defined in Title XV of the Social Security Act."
Sec. 18.  That Article 2, Chapter 96, Section 96‑12(c), General Statutes of North Carolina as such appears in the 1959 Supplement to the 1958 Replacement Volume 2C thereof, be and the same is hereby amended by rewriting said subsection (c) to read as follows:
"(c)	Partial Weekly Benefit. Each eligible individual who is either partially unemployed or part totally unemployed (as defined in Secs. 96‑8(10)b. and 96‑8(10)c.) in any week shall be paid with respect to such week a partial benefit. Such partial benefit shall be an amount figured to the nearest multiple of one dollar ($1.00) which is equal to the difference between his weekly benefit amount and that part of the remuneration payable to him with respect to such week which is in excess of a sum equal to one‑half of his weekly benefit amount figured to the nearest multiple of one dollar ($1.00)."
Sec. 19.  That Article 2, Chapter 96, Section 96‑13(3), General Statutes of North Carolina as such appears in the 1958 Replacement Volume 2C thereof, be and the same is hereby amended by striking out the proviso beginning in line 8 thereof with the word "Provided" and which ends in line 15 with the words "is otherwise eligible:" and inserting in lieu thereof the following:
"Provided further that no individual separated from employment after July 1, 1961, shall be considered able and available for work who has been separated from employment due to pregnancy from the date of such separation until the birth of such individual's child, and no individual shall be considered able and available for work, regardless of the cause of such individual's separation from employment, for any week during the three‑month period immediately before the expected birth of a child to such individual and for any week during the three-month period immediately following the birth of a child to such individual; however, no individual shall be denied benefits by reason of this proviso in the event of the death of such child, if such individual is otherwise eligible:".
Sec. 20.  That Article 2, Chapter 96, Section 96‑14(4), General Statutes of North Carolina as such appears in the 1958 Replacement Volume 2C thereof, be and the same is hereby amended by rewriting subdivision (4) to read as follows:
"(4)	For any week with respect to which the Commission finds that his total or partial unemployment is caused by a labor dispute in active progress on or after July 1, 1961, at the factory, establishment, or other premises at which he is or was last employed or caused after such date by a labor dispute at another place, either within or without this State, which is owned or operated by the same employing unit which owns or operates the factory, establishment, or other premises at which he is or was last employed and which supplies materials or services necessary to the continued and usual operation of the premises at which he is or was last employed. Provided, that an individual disqualified under the provisions of this subdivision shall continue to be disqualified thereunder after the labor dispute has ceased to be in active progress for such period of time as is reasonably necessary and required to physically resume operations in the method of operating in use at the plant, factory, or establishment of the employing unit."
Sec. 21.  That Article 2, Chapter 96, Section 96‑15(i), General Statutes of North Carolina as such appears in the 1959 Supplement to the 1958 Replacement Volume 2C thereof, be and the same is hereby amended by inserting therein after the sentence ending with the word "cases" in line 24 thereof the following:
"The Commission shall have the right of appeal to the Supreme Court from a decision or judgment of the Superior Court and for such purpose shall be deemed to be an aggrieved party."
Sec. 22.  That all laws and clauses of laws in conflict with the provisions of this Act are hereby repealed.
Sec. 23.  This Act shall be in full force and effect on and after July 1, 1961.
In the General Assembly read three times and ratified, this the 18th day of May, 1961.