GENERAL ASSEMBLY OF NORTH CAROLINA

SESSION 2009

HOUSE BILL 1090

RATIFIED BILL

AN ACT amending the definition of total and partial unemployment relating to the treatment of severance pay under the employment security laws of north carolina.

The General Assembly of North Carolina enacts:

SECTION 1.  G.S. 96‑8(10) reads as rewritten:

"(10)    Total and partial unemployment.

a.         For the purpose of establishing a benefit year, an individual shall be deemed to be unemployed:

1.         If he the individual has payroll attachment but, because of lack of work during the payroll week for which he the individual is requesting the establishment of a benefit year, he the individual worked less than the equivalent of three customary scheduled full‑time days in the establishment, plant, or industry in which he the individual has payroll attachment as a regular employee. If a benefit year is established, it shall begin on the Sunday preceding the payroll week ending date.

2.         If he the individual has no payroll attachment on the date he the individual reports to apply for unemployment insurance. If a benefit year is established, it shall begin on the Sunday of the calendar week with respect to which the claimant met the reporting requirements provided by Commission regulation.

b.         For benefit weeks within an established benefit year, a claimant shall be deemed to be:

1.         Totally unemployed, irrespective of job attachment, if his a claimant's earnings for such week, including payments defined in subparagraph c below, would not reduce his the claimant's weekly benefit amount as prescribed by G.S. 96‑12(c).

2.         Partially unemployed, if he the claimant has payroll attachment but because of lack of work during the payroll week for which he the claimant is requesting benefits he the claimant worked less than three customary scheduled full‑time days in the establishment, plant, or industry in which he the claimant is employed and whose earnings from such employment (including payments defined in subparagraph c below) would qualify him the claimant for a reduced payment as prescribed by G.S. 96‑12(c).

3.         Part‑totally unemployed, if the claimant had no job attachment during all or part of such week and whose earnings for odd jobs or subsidiary work (including payments defined in subparagraph c below) would qualify him the claimant for a reduced payment as prescribed by G.S. 96‑12(c).

c.         No individual shall be considered unemployed if, with respect to the entire calendar week, he the individual is receiving, has received, or will receive as a result of his the individual's separation from employment, remuneration in the form of (i) wages in lieu of notice, (ii) accrued vacation pay, (iii) terminal leave pay, (iv) severance pay, (v) (iv) separation pay, or (vi)(v) dismissal payments or wages by whatever name. Provided, however, if such payment is applicable to less than the entire week, the claimant may be considered to be unemployed as defined in subsections a and b of this paragraph. Sums received by any individual for services performed as an elected official who holds an elective office, as defined in G.S. 128‑1.1(d), or as a member of the N. C. National Guard, as defined in G.S. 127A‑3, or as a member of any reserve component of the United States Armed Forces shall not be considered in determining that individual's employment status under this subsection. Provided further, however, that an individual shall be considered to be unemployed as to receipt of severance pay for any week the individual is registered at or attending any institution of higher education as defined in G.S. 96‑8(5)j., or secondary school as defined in G.S. 96‑8(5)q., or Commission approved vocational, educational, or training programs as defined in G.S. 96‑13. Benefits paid under this subdivision shall not be charged to the account or accounts of the base period employer or employers.

d.         An individual's week of unemployment shall be deemed to commence only after his registration at an employment office, except as the Commission may by regulation otherwise prescribe.

e.         No substitute teacher or other substitute school personnel shall be considered unemployed for days or weeks when not called to work unless the individual is or was a permanent school employee regularly employed as a full‑time substitute during the period of time for which the individual is requesting benefits."

SECTION 2.  This act becomes effective October 1, 2009, and expires July 1, 2011.

In the General Assembly read three times and ratified this the 16^th day of July, 2009.

                                                                        _____________________________________

                                                                         Walter H. Dalton

                                                                         President of the Senate

                                                                        _____________________________________

                                                                         Joe Hackney

                                                                         Speaker of the House of Representatives

                                                                        _____________________________________

                                                                         Beverly E. Perdue

                                                                         Governor

Approved __________.m. this ______________ day of ___________________, 2009