Department of Employment Security; amend provisions concerning unemployment.

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To: Judiciary, Division A
MISSISSIPPI LEGISLATURE REGULAR SESSION 2026

By: Senator(s) Suber

SENATE BILL NO. 2743

AN ACT TO AMEND SECTION 71-5-127, MISSISSIPPI CODE OF 1972, 1
TO PROVIDE FOR RELEASE OF RECORDS; TO PROVIDE FOR THE RELEASE OF 2
RECORDS TO THIRD PARTIES UNDER CERTAIN CONDITIONS; TO AMEND 3
SECTION 71-5-133, MISSISSIPPI CODE OF 1972, TO AUTHORIZE THE 4
DEPARTMENT TO HOLD A HEARING TO DETERMINE IF GOOD CAUSE EXISTS FOR 5
AN EMPLOYER FAILING TO RESPOND TO A SUBPOENA; TO AUTHORIZE THE 6
DEPARTMENT TO ASSESS A PENALTY AFTER A HEARING; TO AUTHORIZE THE 7
DEPARTMENT TO FILE A PETITION IN CIRCUIT COURT UPON THE FAILURE OF 8
THE EMPLOYER TO PAY SUCH PENALTY; TO AMEND SECTION 71-5-139, 9
MISSISSIPPI CODE OF 1972, TO AUTHORIZE THE DEPARTMENT TO SCHEDULE 10
AN ADMINISTRATIVE HEARING FOR GOOD CAUSE UPON AN EMPLOYER'S 11
FAILURE TO PRODUCE RECORDS; TO GRANT THE DEPARTMENT AND ITS AGENTS 12
AUTHORITY TO PERFORM CERTAIN ACTIONS; TO REQUIRE FINES COLLECTED 13
TO BE DEPOSITED IN THE MISSISSIPPI SPECIAL EMPLOYMENT SECURITY 14
ADMINISTRATION FUND; TO AUTHORIZE THE DEPARTMENT TO SEEK THE 15
ASSISTANCE OF THE SHERIFF FOR COLLECTION OF THE PENALTY; TO CREATE 16
NEW SECTION MISSISSIPPI CODE OF 1972, TO REQUIRE ELECTRONIC 17
PAYMENT OF UNEMPLOYMENT INSURANCE AND TRAINING TAXES; TO AMEND 18
SECTION 71-5-355, MISSISSIPPI CODE OF 1972, TO GRANT THE 19
DEPARTMENT DISCRETION TO ADJUST APPLICATION OF CERTAIN RULES UPON 20
A SHOWING OF GOOD CAUSE OR A SHOWING OF FRAUD UPON THE EMPLOYER BY 21
ITS PREDECESSOR OR THE FIRM IT RETAINED TO FILE TAX REPORTS; TO 22
AUTHORIZE EMPLOYERS TO SUBMIT A WRITTEN REQUEST FOR REVIEW AND 23
REDETERMINATION OF THEIR CONTRIBUTION RATES SETTING FORTH GOOD 24
CAUSE FOR FAILURE TO FILE ANY TWO QUARTERLY REPORTS WITHIN THE 25
QUALIFYING PERIOD; TO AMEND SECTION 71-5-365, MISSISSIPPI CODE OF 26
1972, TO REQUIRE THE DEPARTMENT TO REVIEW THE REASONS GIVEN FOR 27
FAILURE TO MAKE CONTRIBUTIONS; TO AUTHORIZE THE EXECUTIVE DIRECTOR 28
TO WAIVE UNEMPLOYMENT AND TRAINING TAXES, PENALTIES, INTEREST AND 29
PROCESS COSTS OR ANY COMBINATION THEREOF UPON A FINDING OF GOOD 30
CAUSE BY THE DEPARTMENT; TO AMEND SECTION 71-5-543, MISSISSIPPI 31
CODE OF 1972, TO PROVIDE FOR INELIGIBILITY UPON CERTAIN 32
CONDITIONS; TO REQUIRE ALL WAIVERS TO BE GRANTED BASED UPON A 33
CONSIDERATION OF ABILITY TO REPAY, GOOD CAUSE, EQUITY AND GOOD 34
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CONSCIENCE AND FINANCIAL IMPACT OF THE WAIVER UPON THE 35
UNEMPLOYMENT COMPENSATION TRUST FUND; AND FOR RELATED PURPOSES. 36
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI: 37
SECTION 1. Section 71-5-127, Mississippi Code of 1972, is 38
amended as follows: 39
71-5-127. (1) Any information or records concerning an 40
individual or employing unit obtained by the department pursuant 41
to the administration of this chapter or any other federally 42
funded programs for which the department has responsibility shall 43
be private and confidential, except as otherwise provided in this 44
article or by regulation. Information or records may only be 45
released by the department when the release is required by the 46
federal government under law in connection with, or as a condition 47
of funding for, a program being administered by the department, by 48
subpoena as permitted by state or federal law, or if the 49
department has an executed data sharing agreement with the state 50
or federal agency requesting the information. 51
(2) No data stored by the department may be released to 52
third-parties, including, but not limited to, any state or federal 53
agency, even if required by law, regulation, or as a condition of 54
funding, unless the department grants permission for said release 55
in writing and receives specific written assurances from the 56
requesting party that such data shall not be: 57
(a) Released to other federal or state agencies without 58
the written permission of the department, who must first enter 59
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into a written agreement with the other federal or state agency 60
regarding the uses of said data; 61
(b) Released to any third parties; or 62
(c) Released to any governmental, for-profit, or 63
nonprofit entity, except by presentation of a subpoena authorized 64
by law, or without written permission of the department, who must 65
first enter into a written agreement regarding the uses of said 66
data including requiring de-identification of the data as 67
appropriate with the requesting entity. 68
( * * *3) Each employing unit shall keep true and accurate 69
work records, containing such information as the department may 70
prescribe. Such records shall be open to inspection and be 71
subject to being copied by the department or its authorized 72
representatives at any reasonable time and as often as may be 73
necessary. The department, Board of Review and any referee may 74
require from any employing unit any sworn or unsworn reports with 75
respect to persons employed by it which they or any of them deem 76
necessary for the effective administration of this chapter. 77
Information, statements, transcriptions of proceedings, 78
transcriptions of recordings, electronic recordings, letters, 79
memoranda, and other documents and reports thus obtained or 80
obtained from any individual pursuant to the administration of 81
this chapter shall, except to the extent necessary for the proper 82
administration of this chapter, be held confidential and shall not 83
be published or be opened to public inspection (other than to 84
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public employees in the performance of their public duties) in any 85
manner revealing the individual's or employing unit's identity. 86
( * * *4) Any claimant or his legal representative at a 87
hearing before an appeal tribunal or the Board of Review shall be 88
supplied with information from such records to the extent 89
necessary for the proper presentation of his claim in any 90
proceeding pursuant to this chapter. 91
( * * *5) Any employee or member of the Board of Review or 92
any employee of the department who violates any provisions of this 93
section shall be fined not less than Twenty Dollars ($20.00) nor 94
more than Two Hundred Dollars ($200.00), or imprisoned for not 95
longer than ninety (90) days, or both. 96
( * * *6) The department may make the state's records 97
relating to the administration of this chapter available to the 98
Railroad Retirement Board, and may furnish the Railroad Retirement 99
Board, at the expense of such board, such copies thereof as the 100
Railroad Retirement Board deems necessary for its purposes. The 101
department may afford reasonable cooperation with every agency of 102
the United States charged with the administration of any 103
unemployment insurance law. 104
SECTION 2. Section 71-5-133, Mississippi Code of 1972, is 105
amended as follows: 106
71-5-133. (1) In any case where an employing unit or any 107
officer, member or agent thereof, or any other person having 108
possession of the records thereof, shall fail or refuse upon 109
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demand by the department or its duly appointed agents to produce 110
or permit the examination or copying of any book, paper, account, 111
record or other data pertaining to payrolls or employment or 112
ownership of interests or stock in any employing unit, or bearing 113
upon the correctness of any report, or for the purpose of making a 114
report as required by this chapter where none has been made, then 115
and in that event the department or its duly authorized agents 116
may, by the issuance of a subpoena, require the attendance of such 117
employing unit or any officer, member or agent thereof, or any 118
other person having possession of the records thereof, and take 119
testimony with respect to any such matter and may require any such 120
person to produce any books or records specified in such subpoena. 121
The department or its authorized agents at any such hearing shall 122
have power to administer oaths to any such person or persons. 123
(2) When any person called as a witness by a subpoena or to 124
produce documents by a subpoena signed by the department or its 125
agents and served upon him by the sheriff of a county of which 126
such person is a resident, or wherein is located the principal 127
office of such employing unit or wherein such records are located 128
or kept, shall fail to obey such subpoena to appear before the 129
department or its authorized agent, or shall refuse to testify or 130
to answer any questions or to produce any book, record, paper or 131
other data when required to do so, such failure or refusal shall 132
be reported to the Attorney General, who shall thereupon institute 133
proceedings by the filing of a petition in the name of the State 134
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of Mississippi, on the relation of the department, in the circuit 135
court or other court of competent jurisdiction of the county where 136
such witness resides, or wherein such records are located or kept, 137
to compel the obedience of such witness. 138
(3) The department may also hold an administrative hearing 139
to determine if good cause exists for the employer or employing 140
unit failing to respond to the subpoena. Such petition, as either 141
part of an administrative hearing by the department or filed by 142
the state, shall set forth the facts and circumstances of the 143
demand for and refusal or failure to permit the examination or 144
copying of such records, or the failure or refusal of such witness 145
to testify in answer to such subpoena or to produce the records so 146
required by such subpoena. * * * The department is authorized 147
after an administrative hearing on the merits to assess a penalty 148
upon the noncompliant employer or employing unit pursuant to 149
Section 71-5-139(1). In the event the employer or employing unit 150
fails to pay such penalty within thirty (30) days of the date of 151
the department's decision after a hearing, the department may file 152
a petition in Circuit Court of the county of the employer's 153
domicile. Upon the filing of such a petition in Circuit Court, 154
the court shall thereupon promptly issue an order to the 155
defendants named in the petition to produce forthwith in such 156
court, or at a place in such county designated in such order for 157
the examination or copying by the department or its duly appointed 158
agents, the records, books or documents so described, * * * to 159
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testify concerning matters described in such petition, and to show 160
cause why the penalty assessed by the department should not be 161
enforced. Unless such defendants to such petition shall appear in 162
the court upon a day specified in such order, which day shall be 163
not more than ten (10) days after the date of issuance of such 164
order, and offer, under oath, good and sufficient reasons why such 165
examination or copying should not be permitted, or why such 166
subpoena should not be obeyed, such court shall thereupon deliver 167
to the department or its agents, for examination or copying, the 168
records, books and documents so described in the petition and so 169
produced in such court, and shall order the defendants to appear 170
in answer to the subpoena of the department or its agents, and to 171
testify concerning matters inquired about by the department. 172
(4) Any employing unit or any officer, member or agent 173
thereof, or any other person having possession of the records 174
thereof, who shall willfully disobey such order of the court after 175
the same shall have been served upon him shall be guilty of 176
indirect contempt of such court from which such order shall have 177
issued, and may be adjudged in contempt of the court and punished 178
therefor as provided by law. 179
SECTION 3. Section 71-5-139, Mississippi Code of 1972, is 180
amended as follows: 181
71-5-139. (1) In case of contumacy or refusal to obey a 182
subpoena issued to any person, any court in this state within the 183
jurisdiction of which the inquiry is carried on, or within the 184
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jurisdiction of which the person guilty of contumacy or refusal to 185
obey is found or resides or transacts business, upon application 186
by the department, the Board of Review, any referee, or any duly 187
authorized representative of any of them, shall have jurisdiction 188
to issue to such person an order requiring such person to appear 189
before the department, the Board of Review, any referee, or any 190
duly authorized representative of any of them, there to produce 191
evidence if so ordered or there to give testimony touching the 192
matter under investigation or in question. Upon the failure of an 193
employing unit or any officer, member or agent thereof, or any 194
other person having possession of the records thereof, to produce 195
such records in response to such an order, the department may 196
schedule an administrative hearing to determine if good cause 197
exists for the refusal to provide the requested documents for 198
production or examination. Any hearing pursuant to this 199
subsection shall comply with the hearing and appeal requirements 200
outlined in Sections 71-5-517 to 71-5-533 of this chapter. The 201
department and its authorized agents shall have the authority to: 202
(a) Issue regulations regarding the procedures at any 203
such hearing in accordance with this subsection and this chapter; 204
(b) Assess penalties against the employing unit or any 205
officer, member or agent thereof, or any other person having 206
possession of the records thereof, in an amount not to exceed Five 207
Hundred Dollars ($500.00) for the failure of the employing unit or 208
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an individual to produce or permit the inspection of said records 209
upon the issuance of an agency subpoena; and 210
(c) Pursue willful and continued non-compliance with 211
the department's decision at such hearing. 212
(2) Any failure to obey an administrative decision of the 213
department may be punished by the department by the assessment of 214
an additional sum not to exceed Five Hundred Dollars ($500.00) as 215
penalty for failure to respond to the request for records. 216
(3) In case of further contumacy or refusal to obey a 217
subpoena issued to any person, any court in this state within the 218
jurisdiction the inquiry is carried, or within the jurisdiction 219
the person guilty of contumacy or refusal to obey is found, 220
resides or transacts business, upon application by the department, 221
the Board of Review, any referee, or any duly authorized 222
representative, shall have jurisdiction to issue an order 223
requiring such person to appear before the department, the Board 224
of Review, any referee, or any duly authorized representative, to 225
produce evidence or to give testimony touching the matter under 226
investigation or in question. Any failure to obey such order of 227
the court may be punished by the court as a contempt thereof. Any 228
person who shall, without just cause, fail or refuse to attend and 229
testify or to answer any lawful inquiry or to produce books, 230
papers, correspondence, memoranda and other records if it is in 231
his power so to do, in obedience to a subpoena of the department, 232
the Board of Review, any referee, or any duly authorized 233
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representative of any of them, shall be punished by a fine of not 234
more than * * *) Five Hundred Dollars ($500.00), or by 235
imprisonment for not longer than sixty (60) days, or by both such 236
fine and imprisonment; and each day such violation continues shall 237
be deemed to be a separate offense. Any such fines collected by 238
the department shall be deposited in the Mississippi Special 239
Employment Security Administration Fund account established under 240
Section 71-5-114. 241
(4) The department may seek the assistance of the sheriff of 242
the county in which any court of this state issued an order of 243
contempt, who shall assist with the collection of the penalty or 244
the imprisonment of the person found guilty of contempt in 245
accordance with the order of the court. Upon two (2) days' notice 246
to said sheriff from the department, a representative of the 247
department and the sheriff's office shall have the authority to 248
enforce the order of contempt issued by any court in this state 249
within the jurisdiction the inquiry is carried, or within the 250
jurisdiction the person guilty of contumacy or refusal to obey a 251
court order is found, resides or transacts business. 252
SECTION 4. The following shall be codified as Section 253
71-5-352, Mississippi Code of 1972: 254
71-5-352. Electronic payment of Unemployment Insurance and 255
Training taxes shall be required from all employing units and 256
employers or their authorized representatives using the methods of 257
payment identified by the department, unless the employer or 258
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employing unit has written approval from the department to remit 259
payments to the department using another authorized payment 260
method. 261
SECTION 5. Section 71-5-355, Mississippi Code of 1972, is 262
amended as follows: 263
71-5-355. (1) As used in this section, the following words 264
and phrases shall have the following meanings, unless the context 265
clearly requires otherwise: 266
(a) "Tax year" means any period beginning on January 1 267
and ending on December 31 of a year. 268
(b) "Computation date" means June 30 of any calendar 269
year immediately preceding the tax year during which the 270
particular contribution rates are effective. 271
(c) "Effective date" means January 1 of the tax year. 272
(d) Except as hereinafter provided, "payroll" means the 273
total of all wages paid for employment by an employer as defined 274
in Section 71-5-11, subsection H, plus the total of all 275
remuneration paid by such employer excluded from the definition of 276
wages by Section 71-5-351. For the computation of modified rates, 277
"payroll" means the total of all wages paid for employment by an 278
employer as defined in Section 71-5-11, subsection H. 279
(e) For the computation of modified rates, "eligible 280
employer" means an employer whose experience-rating record has 281
been chargeable with benefits throughout the thirty-six (36) 282
consecutive calendar-month period ending on the computation date, 283
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except that any employer who has not been subject to the 284
Mississippi Employment Security Law for a period of time 285
sufficient to meet the thirty-six (36) consecutive calendar-month 286
requirement shall be an eligible employer if his or her 287
experience-rating record has been chargeable throughout not less 288
than the twelve (12) consecutive calendar-month period ending on 289
the computation date. No employer shall be considered eligible 290
for a contribution rate less than five and four-tenths percent 291
(5.4%) with respect to any tax year, who has failed to file any 292
two (2) quarterly reports within the qualifying period by 293
September 30 following the computation date. No employer or 294
employing unit shall be eligible for a contribution rate of less 295
than five and four-tenths percent (5.4%) for the tax year in which 296
the employing unit is found by the department to be in violation 297
of Section 71-5-19(2) or (3) and for the next two (2) succeeding 298
tax years. No representative of such employing unit who was a 299
party to a violation as described in Section 71-5-19(2) or (3), if 300
such representative was or is an employing unit in this state, 301
shall be eligible for a contribution rate of less than five and 302
four-tenths percent (5.4%) for the tax year in which such 303
violation was detected by the department and for the next two (2) 304
succeeding tax years. However, the department shall have the 305
discretion to adjust the application of these rules upon a showing 306
of good cause as defined in Section 71-5-355(2)(b) or a showing of 307
fraud upon the employer or employing unit by either its 308
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predecessor or the firm it has retained to file tax reports and/or 309
remit tax payments to the department on behalf of the employer or 310
employing unit. 311
(f) With respect to any tax year, "reserve ratio" means 312
the ratio which the total amount available for the payment of 313
benefits in the Unemployment Compensation Fund, excluding any 314
amount which has been credited to the account of this state under 315
Section 903 of the Social Security Act, as amended, and which has 316
been appropriated for the expenses of administration pursuant to 317
Section 71-5-457 whether or not withdrawn from such account, on 318
October 31 (close of business) of each calendar year bears to the 319
aggregate of the taxable payrolls of all employers for the twelve 320
(12) calendar months ending on June 30 next preceding. 321
(g) "Modified rates" means the rates of employer 322
unemployment insurance contributions determined under the 323
provisions of this chapter and the rates of newly subject 324
employers, as provided in Section 71-5-353. 325
(h) For the computation of modified rates, "qualifying 326
period" means a period of not less than the thirty-six (36) 327
consecutive calendar months ending on the computation date 328
throughout which an employer's experience-rating record has been 329
chargeable with benefits; except that with respect to any eligible 330
employer who has not been subject to this article for a period of 331
time sufficient to meet the thirty-six (36) consecutive 332
calendar-month requirement, "qualifying period" means the period 333
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ending on the computation date throughout which his or her 334
experience-rating record has been chargeable with benefits, but in 335
no event less than the twelve (12) consecutive calendar-month 336
period ending on the computation date throughout which his or her 337
experience-rating record has been so chargeable. 338
(i) The "exposure criterion" (EC) is defined as the 339
cash balance of the Unemployment Compensation Fund which is 340
available for the payment of benefits as of November 16 of each 341
calendar year or the next working day if November 16 falls on a 342
holiday or a weekend, divided by the total wages, exclusive of 343
wages paid by all state agencies, all political subdivisions, 344
reimbursable nonprofit corporations, and tax-exempt public service 345
employment, for the twelve-month period ending June 30 immediately 346
preceding such date. The EC shall be computed to four (4) decimal 347
places and rounded up if any fraction remains. Notwithstanding 348
any other provision contained herein, the date for determining the 349
cash balance of the Unemployment Compensation Fund which is 350
available for the payment of benefits for the calendar years 2020 351
and 2021 shall be December 31. 352
(j) The "cost rate criterion" (CRC) is defined as 353
follows: Beginning with January 1974, the benefits paid for the 354
twelve-month period ending December 1974 are summed and divided by 355
the total wages for the twelve-month period ending on June 30, 356
1975. Similar ratios are computed by subtracting the earliest 357
month's benefit payments and adding the benefits of the next month 358
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in the sequence and dividing each sum of twelve (12) months' 359
benefits by the total wages for the twelve-month period ending on 360
the June 30 which is nearest to the final month of the period used 361
to compute the numerator. If December is the final month of the 362
period used to compute the numerator, then the twelve-month period 363
ending the following June 30 will be used for the denominator. 364
Benefits and total wages used in the computation of the cost rate 365
criterion shall exclude all benefits and total wages applicable to 366
state agencies, political subdivisions, reimbursable nonprofit 367
corporations, and tax-exempt PSE employment. 368
The CRC shall be computed as the average for the highest 369
monthly value of the cost rate criterion computations during each 370
of the economic cycles since the calendar year 1974 as defined by 371
the National Bureau of Economic Research. The CRC shall be 372
computed to four (4) decimal places and any remainder shall be 373
rounded up. 374
The CRC shall be adjusted only through annual computations 375
and additions of future economic cycles. 376
(k) "Size of fund index" (SOFI) is defined as the ratio 377
of the exposure criterion (EC) to the cost rate criterion (CRC). 378
The target size of fund index will be fixed at 1.0. If the 379
insured unemployment rate (IUR) exceeds a four and five-tenths 380
percent (4.5%) average for the most recent completed July to June 381
period, the target SOFI will be .8 and will remain at that level 382
until the computed SOFI (the average exposure criterion of the 383
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current year and the preceding year divided by the average cost 384
rate criterion) equals 1.0 or the average IUR falls to four and 385
five-tenths percent (4.5%) or less for any period July to June. 386
However, if the IUR falls below two and five-tenths percent (2.5%) 387
for any period July to June the target SOFI shall be 1.2 until 388
such time as the computed SOFI is equal to or greater than 1.0 or 389
the IUR is equal to or greater than two and five-tenths percent 390
(2.5%), at which point the target SOFI shall return to 1.0. 391
(l) No employer's unemployment contribution general 392
experience rate plus individual unemployment experience rate shall 393
exceed five and four-tenths percent (5.4%). Accrual rules shall 394
apply for purposes of computing contribution rates including 395
associated functions. 396
(m) The term "general experience rate" has the same 397
meaning as the minimum tax rate. 398
(2) Modified rates: 399
(a) For any tax year, when the reserve ratio on the 400
preceding November 16, in the case of any tax year, equals or 401
exceeds three percent (3%), the modified rates, as hereinafter 402
prescribed, shall be in effect. In computation of this reserve 403
ratio, any remainder shall be rounded down. 404
(b) Modified rates shall be determined for the tax year 405
for each eligible employer on the basis of his or her 406
experience-rating record in the following manner: 407
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(i) The department shall maintain an 408
experience-rating record for each employer. Nothing in this 409
chapter shall be construed to grant any employer or individuals 410
performing services for him or her any prior claim or rights to 411
the amounts paid by the employer into the fund. 412
(ii) Benefits paid to an eligible individual shall 413
be charged against the experience-rating record of his or her base 414
period employers in the proportion to which the wages paid by each 415
base period employer bears to the total wages paid to the 416
individual by all the base period employers, provided that 417
benefits shall not be charged to an employer's experience-rating 418
record if the department finds that the individual: 419
1. Voluntarily left the employ of such 420
employer without good cause attributable to the employer or to 421
accept other work; 422
2. Was discharged by such employer for 423
misconduct connected with his or her work; 424
3. Refused an offer of suitable work by such 425
employer without good cause, and the department further finds that 426
such benefits are based on wages for employment for such employer 427
prior to such voluntary leaving, discharge or refusal of suitable 428
work, as the case may be; 429
4. Had base period wages which included wages 430
for previously uncovered services as defined in Section 431
71-5-511(e) to the extent that the Unemployment Compensation Fund 432
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is reimbursed for such benefits pursuant to Section 121 of Public 433
Law 94-566; 434
5. Extended benefits paid under the 435
provisions of Section 71-5-541 which are not reimbursable from 436
federal funds shall be charged to the experience-rating record of 437
base period employers; 438
6. Is still working for such employer on a 439
regular part-time basis under the same employment conditions as 440
hired. Provided, however, that benefits shall be charged against 441
an employer if an eligible individual is paid benefits who is 442
still working for such employer on a part-time "as-needed" basis; 443
7. Was hired to replace a United States 444
serviceman or servicewoman called into active duty and was laid 445
off upon the return to work by that serviceman or servicewoman, 446
unless such employer is a state agency or other political 447
subdivision or instrumentality of the state; 448
8. Was paid benefits during any week while in 449
training with the approval of the department, under the provisions 450
of Section 71-5-513B, or for any week while in training approved 451
under Section 236(a)(1) of the Trade Act of 1974, under the 452
provisions of Section 71-5-513C; 453
9. Is not required to serve the one-week 454
waiting period as described in Section 71-5-505(2). In that 455
event, only the benefits paid in lieu of the waiting period week 456
may be noncharged; or 457
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10. Was paid benefits as a result of a 458
fraudulent claim, provided notification was made to the 459
Mississippi Department of Employment Security in writing or by 460
email by the employer, within ten (10) days of the mailing of the 461
notice of claim filed to the employer's last-known address. 462
(iii) Notwithstanding any other provision 463
contained herein, an employer shall not be noncharged when the 464
department finds that the employer or the employer's agent of 465
record was at fault for failing to respond timely or adequately to 466
the request of the department for information relating to an 467
unemployment claim that was subsequently determined to be 468
improperly paid, unless the employer or the employer's agent of 469
record shows good cause for having failed to respond timely or 470
adequately to the request of the department for information. For 471
purposes of this subparagraph "good cause" means an event that 472
prevents the employer or employer's agent of record from timely 473
responding, and includes a natural disaster, emergency or similar 474
event, or an illness on the part of the employer, the employer's 475
agent of record, or their staff charged with responding to such 476
inquiries when there is no other individual who has the knowledge 477
or ability to respond. Any agency error that resulted in a delay 478
in, or the failure to deliver notice to, the employer or the 479
employer's agent of record shall also be considered good cause for 480
purposes of this subparagraph. 481
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(iv) The department shall compute a benefit ratio 482
for each eligible employer, which shall be the quotient obtained 483
by dividing the total benefits charged to his or her 484
experience-rating record during the period his or her 485
experience-rating record has been chargeable, but not less than 486
the twelve (12) consecutive calendar-month period nor more than 487
the thirty-six (36) consecutive calendar-month period ending on 488
the computation date, by his or her total taxable payroll for the 489
same period on which all unemployment insurance contributions due 490
have been paid on or before the September 30 immediately following 491
the computation date. Such benefit ratio shall be computed to the 492
tenth of a percent (.1%), rounding any remainder to the next 493
higher tenth. 494
(v) 1. The unemployment insurance contribution 495
rate for each eligible employer shall be the sum of two (2) rates: 496
his or her individual experience rate in the range from zero 497
percent (0%) to five and four-tenths percent (5.4%), plus a 498
general experience rate. In no event shall the resulting 499
unemployment insurance rate be in excess of five and four-tenths 500
percent (5.4%), however, it is the intent of this section to 501
provide the ability for employers to have a tax rate, the general 502
experience rate plus the individual experience rate, of up to five 503
and four-tenths percent (5.4%). 504
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2. The employer's individual experience rate 505
shall be equal to his or her benefit ratio as computed under 506
paragraph (b)(iv) of this subsection (2). 507
3. The general experience rate shall be 508
determined in the following manner: The department shall 509
determine annually, for the thirty-six (36) consecutive 510
calendar-month period ending on the computation date, the amount 511
of benefits which were not charged to the record of any employer 512
and of benefits which were ineffectively charged to the employer's 513
experience-rating record. For the purposes of this item 3, the 514
term "ineffectively charged benefits" shall include: 515
a. The total of the amounts of benefits 516
charged to the experience-rating records of all eligible employers 517
which caused their benefit ratios to exceed five and four-tenths 518
percent (5.4%); 519
b. The total of the amounts of benefits 520
charged to the experience-rating records of all ineligible 521
employers which would cause their benefit ratios to exceed five 522
and four-tenths percent (5.4%) if they were eligible employers; 523
and 524
c. The total of the amounts of benefits 525
charged or chargeable to the experience-rating record of any 526
employer who has discontinued his or her business or whose 527
coverage has been terminated within such period; provided, that 528
solely for the purposes of determining the amounts of 529
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ineffectively charged benefits as herein defined, a "benefit 530
ratio" shall be computed for each ineligible employer, which shall 531
be the quotient obtained by dividing the total benefits charged to 532
his or her experience-rating record throughout the period ending 533
on the computation date, during which his or her experience-rating 534
record has been chargeable with benefits, by his or her total 535
taxable payroll for the same period on which all unemployment 536
insurance contributions due have been paid on or before the 537
September 30 immediately following the computation date; and 538
provided further, that such benefit ratio shall be computed to the 539
tenth of one percent (.1%) and any remainder shall be rounded to 540
the next higher tenth. 541
The ratio of the sum of these amounts (subsection 542
(2)(b)(v)3a, b and c) to the taxable wages paid during the same 543
period divided by all eligible employers whose benefit ratio did 544
not exceed five and four-tenths percent (5.4%), computed to the 545
next higher tenth of one percent (.1%), shall be the general 546
experience rate; however, the general experience rate for rate 547
year 2014 shall be two-tenths of one percent (.2%) and to that 548
will be added the employer's individual experience rate for the 549
total unemployment insurance rate. 550
4. a. Except as otherwise provided in this 551
item 4, the general experience rate shall be adjusted by use of 552
the size of fund index factor. This factor may be positive or 553
negative, and shall be determined as follows: From the target 554
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SOFI, as defined in subsection (1)(k) of this section, subtract 555
the simple average of the current and preceding years' exposure 556
criterions divided by the cost rate criterion, as defined in 557
subsection (1)(j) of this section. The result is then multiplied 558
by the product of the CRC, as defined in subsection (1)(j) of this 559
section, and total wages for the twelve-month period ending June 560
30 divided by the taxable wages for the twelve-month period ending 561
June 30. This is the percentage positive or negative added to the 562
general experience rate. The sum of the general experience rate 563
and the trust fund adjustment factor shall be multiplied by fifty 564
percent (50%) and this product shall be computed to one (1) 565
decimal place, and rounded to the next higher tenth. 566
b. Notwithstanding the minimum rate 567
provisions as set forth in subsection (1)(l) of this section, the 568
general experience rate of all employers shall be reduced by seven 569
one-hundredths of one percent (.07%) for calendar year 2013 only. 570
5. The general experience rate shall be zero 571
percent (0%) unless the general experience ratio for any tax year 572
as computed and adjusted on the basis of the trust fund adjustment 573
factor and reduced by fifty percent (50%) is an amount equal to or 574
greater than two-tenths of one percent (.2%), then the general 575
experience rate shall be the computed general experience ratio and 576
adjusted on the basis of the trust fund adjustment factor and 577
reduced by fifty percent (50%); however, in no case shall the sum 578
of the general experience plus the individual experience 579
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unemployment insurance rate exceed five and four-tenths percent 580
(5.4%). For rate years subsequent to 2014, Mississippi Workforce 581
Enhancement Training contribution rate, and/or Mississippi Office 582
of Workforce Development contribution rate, and/or Mississippi 583
Works contribution rate, when in effect, shall be added to the 584
unemployment contribution rate, regardless of whether the addition 585
of this contribution rate causes the total contribution rate for 586
the employer to exceed five and four-tenths percent (5.4%). 587
6. The department shall include in its annual 588
rate notice to employers a brief explanation of the elements of 589
the general experience rate, and shall include in its regular 590
publications an annual analysis of benefits not charged to the 591
record of any employer, and of the benefit experience of employers 592
by industry group whose benefit ratio exceeds four percent (4%), 593
and of any other factors which may affect the size of the general 594
experience rate. 595
7. Notwithstanding any other provision 596
contained herein, the general experience rate for calendar year 597
2021 shall be zero percent (0%). Charges attributed to each 598
employer's individual experience rate for the period March 8, 599
2020, through June 30, 2020, will not impact the employer's 600
individual experience rate calculations for purposes of 601
calculating the total unemployment insurance rate for 2021 and the 602
two (2) subsequent tax rate years. Moreover, charges attributed 603
to each employer's individual experience rate for the period July 604
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1, 2020, through December 31, 2020, will not impact the employer's 605
individual experience rate calculations for purposes of 606
calculating the total unemployment insurance rate for 2022 and the 607
two (2) subsequent tax rate years. Furthermore, noncharges as 608
defined hereinabove caused by the COVID-19 pandemic will not be 609
used for the purpose of calculating the general experience rate. 610
(vi) When any employing unit in any manner 611
succeeds to or acquires the organization, trade, business or 612
substantially all the assets thereof of an employer, excepting any 613
assets retained by such employer incident to the liquidation of 614
his or her obligations, whether or not such acquiring employing 615
unit was an employer within the meaning of Section 71-5-11, 616
subsection H, prior to such acquisition, and continues such 617
organization, trade or business, the experience-rating and payroll 618
records of the predecessor employer shall be transferred as of the 619
date of acquisition to the successor employer for the purpose of 620
rate determination. 621
(vii) When any employing unit succeeds to or 622
acquires a distinct and severable portion of an organization, 623
trade or business, the experience-rating and payroll records of 624
such portion, if separately identifiable, shall be transferred to 625
the successor upon: 626
1. The mutual consent of the predecessor and 627
the successor; 628
2. Approval of the department; 629
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3. Continued operation of the transferred 630
portion by the successor after transfer; and 631
4. The execution and the filing with the 632
department by the predecessor employer of a waiver relinquishing 633
all rights to have the experience-rating and payroll records of 634
the transferred portion used for the purpose of determining 635
modified rates of contribution for such predecessor. 636
(viii) If the successor was an employer subject to 637
this chapter prior to the date of acquisition, it shall continue 638
to pay unemployment insurance contributions at the rate applicable 639
to it from the date the acquisition occurred until the end of the 640
then current tax year. If the successor was not an employer prior 641
to the date of acquisition, it shall pay unemployment insurance 642
contributions at the rate applicable to the predecessor or, if 643
more than one (1) predecessor and the same rate is applicable to 644
both, the rate applicable to the predecessor or predecessors, from 645
the date the acquisition occurred until the end of the then 646
current tax year. If the successor was not an employer prior to 647
the date the acquisition occurred and simultaneously acquires the 648
businesses of two (2) or more employers to whom different rates of 649
unemployment insurance contributions are applicable, it shall pay 650
unemployment insurance contributions from the date of the 651
acquisition until the end of the current tax year at a rate 652
computed on the basis of the combined experience-rating and 653
payroll records of the predecessors as of the computation date for 654
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such tax year. In all cases the rate of unemployment insurance 655
contributions applicable to such successor for each succeeding tax 656
year shall be computed on the basis of the combined 657
experience-rating and payroll records of the successor and the 658
predecessor or predecessors. 659
(ix) The department shall notify each employer 660
quarterly of the benefits paid and charged to his or her 661
experience-rating record; and such notification, in the absence of 662
an application for redetermination filed within thirty (30) days 663
after the date of such notice, shall be final, conclusive and 664
binding upon the employer for all purposes. A redetermination, 665
made after notice and opportunity for a fair hearing, by a hearing 666
officer designated by the department who shall consider and decide 667
these and related applications and protests; and the finding of 668
fact in connection therewith may be introduced into any subsequent 669
administrative or judicial proceedings involving the determination 670
of the rate of unemployment insurance contributions of any 671
employer for any tax year, and shall be entitled to the same 672
finality as is provided in this subsection with respect to the 673
findings of fact in proceedings to redetermine the contribution 674
rate of an employer. 675
(x) The department shall notify each employer of 676
his or her rate of contribution as determined for any tax year as 677
soon as reasonably possible after September 1 of the preceding 678
year. Such determination shall be final, conclusive and binding 679
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upon such employer unless, within thirty (30) days after the date 680
of such notice to his or her last-known address, the employer 681
files with the department an application for review and 682
redetermination of his or her contribution rate, setting forth his 683
or her reasons therefor. If the department grants such review, 684
the employer shall be promptly notified thereof and shall be 685
afforded an opportunity for a fair hearing by a hearing officer 686
designated by the department who shall consider and decide these 687
and related applications and protests; but no employer shall be 688
allowed, in any proceeding involving his or her rate of 689
unemployment insurance contributions or contribution liability, to 690
contest the chargeability to his or her account of any benefits 691
paid in accordance with a determination, redetermination or 692
decision pursuant to Sections 71-5-515 through 71-5-533 except 693
upon the ground that the services on the basis of which such 694
benefits were found to be chargeable did not constitute services 695
performed in employment for him or her, and then only in the event 696
that he or she was not a party to such determination, 697
redetermination, decision or to any other proceedings provided in 698
this chapter in which the character of such services was 699
determined. The employer shall be promptly notified of the denial 700
of this application or of the redetermination, both of which shall 701
become final unless, within ten (10) days after the date of notice 702
thereof, there shall be an appeal to the department itself. Any 703
such appeal shall be on the record before said designated hearing 704
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officer, and the decision of said department shall become final 705
unless, within thirty (30) days after the date of notice thereof 706
to the employer's last-known address, there shall be an appeal to 707
the Circuit Court of the First Judicial District of Hinds County, 708
Mississippi, in accordance with the provisions of law with respect 709
to review of civil causes by certiorari. 710
(xi) Pursuant to subparagraph (x) of this 711
paragraph, an employer may submit a written request for review and 712
redetermination of his or her contribution rate setting forth the 713
employer's good cause for failing to file any two (2) quarterly 714
reports within the qualifying period by September 30th following 715
the computation date. For purposes of this subparagraph "good 716
cause" means an event that prevents the employer or employer's 717
agent of record from timely responding, and includes a disaster, 718
emergency or similar event, or an illness on the part of the 719
employer, the employer's agent of record, or their staff charged 720
with responding to such inquiries when there is no other 721
individual who has the knowledge or ability to respond. Any 722
agency error that resulted in a delay in, or the failure to 723
deliver notice to, the employer or the employer's agent of record 724
shall also be considered good cause for purposes of this 725
subparagraph. 726
(3) Notwithstanding any other provision of law, the 727
following shall apply regarding assignment of rates and transfers 728
of experience: 729
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(a) (i) If an employer transfers its trade or 730
business, or a portion thereof, to another employer and, at the 731
time of the transfer, there is substantially common ownership, 732
management or control of the two (2) employers, then the 733
unemployment experience attributable to the transferred trade or 734
business shall be transferred to the employer to whom such 735
business is so transferred. The rates of both employers shall be 736
recalculated and made effective on January 1 of the year following 737
the year the transfer occurred. 738
(ii) If, following a transfer of experience under 739
subparagraph (i) of this paragraph (a), the department determines 740
that a substantial purpose of the transfer of trade or business 741
was to obtain a reduced liability of unemployment insurance 742
contributions, then the experience-rating accounts of the 743
employers involved shall be combined into a single account and a 744
single rate assigned to such account. 745
(b) Whenever a person who is not an employer or an 746
employing unit under this chapter at the time it acquires the 747
trade or business of an employer, the unemployment experience of 748
the acquired business shall not be transferred to such person if 749
the department finds that such person acquired the business solely 750
or primarily for the purpose of obtaining a lower rate of 751
unemployment insurance contributions. Instead, such person shall 752
be assigned the new employer rate under Section 71-5-353, unless 753
assignment of the new employer rate results in an increase of less 754
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than two percent (2%), in which case such person would be assigned 755
the new employer rate plus an additional two percent (2%) penalty 756
for the rate year. In determining whether the business was 757
acquired solely or primarily for the purpose of obtaining a lower 758
rate of unemployment insurance contributions, the department shall 759
use objective factors which may include the cost of acquiring the 760
business, whether the person continued the business enterprise of 761
the acquired business, how long such business enterprise was 762
continued, or whether a substantial number of new employees were 763
hired for performance of duties unrelated to the business activity 764
conducted prior to acquisition. 765
(c) (i) If a person knowingly violates or attempts to 766
violate paragraph (a) or (b) of this subsection or any other 767
provision of this chapter related to determining the assignment of 768
a contribution rate, or if a person knowingly advises another 769
person in a way that results in a violation of such provision, the 770
person shall be subject to the following penalties: 771
1. If the person is an employer, then such 772
employer shall be assigned the highest rate assignable under this 773
chapter for the rate year during which such violation or attempted 774
violation occurred and the three (3) rate years immediately 775
following this rate year. However, if the person's business is 776
already at such highest rate for any year, or if the amount of 777
increase in the person's rate would be less than two percent (2%) 778
for such year, then the person's tax rate shall be increased by 779
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two percent (2%) for such year. The penalty rate will apply to 780
the successor business as well as the related entity from which 781
the employees were transferred in an effort to obtain a lower rate 782
of unemployment insurance contributions. 783
2. If the person is not an employer, such 784
person shall be subject to a civil money penalty of not more than 785
Five Thousand Dollars ($5,000.00). Each such transaction for 786
which advice was given and each occurrence or reoccurrence after 787
notification being given by the department shall be a separate 788
offense and punishable by a separate penalty. Any such fine shall 789
be deposited in the penalty and interest account established under 790
Section 71-5-114. 791
(ii) For purposes of this paragraph (c), the term 792
"knowingly" means having actual knowledge of or acting with 793
deliberate ignorance or reckless disregard for the prohibition 794
involved. 795
(iii) For purposes of this paragraph (c), the term 796
"violates or attempts to violate" includes, but is not limited to, 797
intent to evade, misrepresentation or willful nondisclosure. 798
(iv) In addition to the penalty imposed by 799
subparagraph (i) of this paragraph (c), any violation of this 800
subsection may be punishable by a fine of not more than Ten 801
Thousand Dollars ($10,000.00) or by imprisonment for not more than 802
five (5) years, or by both such fine and imprisonment. This 803
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subsection shall prohibit prosecution under any other criminal 804
statute of this state. 805
(d) The department shall establish procedures to 806
identify the transfer or acquisition of a business for purposes of 807
this subsection. 808
(e) For purposes of this subsection: 809
(i) "Person" has the meaning given such term by 810
Section 7701(a)(1) of the Internal Revenue Code of 1986; and 811
(ii) "Employing unit" has the meaning as set forth 812
in Section 71-5-11. 813
(f) This subsection shall be interpreted and applied in 814
such a manner as to meet the minimum requirements contained in any 815
guidance or regulations issued by the United States Department of 816
Labor. 817
SECTION 6. Section 71-5-365, Mississippi Code of 1972, is 818
amended as follows: 819
71-5-365. If any employer fails to make and file any report 820
as and when required by the terms and provisions of this chapter 821
or by any rule or regulation of the commission for the purpose of 822
determining the amount of contributions due by him or her under 823
this chapter, or if any report which has been filed is deemed by 824
the executive director or his or her designee within the 825
department to be incorrect or insufficient, and such employer, 826
after having been given notice by the executive director or his or 827
her designee within the department to file such report, or a 828
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corrected or sufficient report, as the case may be, shall fail to 829
file such report within fifteen (15) days after the date of such 830
notice, the executive director or his or her designee within the 831
department may (a) determine the amount of contributions due from 832
such noncompliant employer on the basis of the best information 833
that may be readily available to the department, which 834
determination shall be prima facie correct, (b) assess such 835
noncompliant employer with the amount of contribution so 836
determined as due, to which amount may be added and assessed by 837
the executive director or his or her designee within the 838
department in his or her discretion, as damages, in an amount 839
equal to ten percent (10%) of the assessed amount, and (c) 840
immediately give notice to such noncompliant employer of such 841
determination, assessment, and penalties, if any, added and 842
assessed, demanding payment of same together with interest, as 843
herein provided, on the amount of contributions owed from the date 844
when same were due and payable. Such determination and assessment 845
by the executive director or his or her designee within the 846
department shall be final at the expiration of fifteen (15) days 847
from the date of such notice thereof demanding payment, unless: 848
(a) Such employer shall have filed with the department 849
a written protest and petition for a hearing, specifying his or 850
her objections thereto. Upon receipt of such petition within the 851
fifteen (15) days allowed, the department shall fix the time and 852
place for a hearing and shall notify the petitioner thereof. At 853
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any hearing held before the department as herein provided, 854
evidence may be offered to support such determination and 855
assessment or to prove that it is incorrect, and the commission 856
shall have all the power provided in Sections 71-5-137 and 857
71-5-139. Immediately after such hearing a final decision in the 858
matter shall be made by the commission, and any contributions or 859
deficiencies in contributions found and determined by the 860
commission to be due shall be assessed and paid, together with 861
interest, within fifteen (15) days after notice of such final 862
decision and assessment, and demand for payment thereof by the 863
department shall have been sent to such employer. 864
(b) The department, in its discretion, determines on 865
the basis of information submitted by the employer that such 866
assessment should be amended and adjusted to reflect the correct 867
amount of taxes. After a written request from the employer, the 868
department shall review the reasons for the failure to make 869
contributions, and upon a finding by the department of good cause 870
in compliance with any waiver requirements for employers or 871
employing units outlined in the department's regulations, the 872
Executive Director or his or her designated representative may 873
waive the unemployment and training taxes, penalties, interest and 874
process costs or any combination thereof. 875
Sixty (60) days after the due date of the contributions, 876
together with interest and damages, or upon issuance of a warrant, 877
whichever occurs first, the department, in its discretion, may 878
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assess an additional sum not exceeding one hundred percent (100%) 879
of the amount of the unpaid contributions due as penalties for 880
failure to pay. 881
SECTION 7. Section 71-5-543, Mississippi Code of 1972, is 882
amended as follows: 883
71-5-543. (1) Except as otherwise provided in this section, 884
the executive director of the department, or his or her designee, 885
may waive recovery of benefits paid under this chapter to a person 886
if the person is subsequently found to be: 887
(a) Ineligible for the benefit and the benefits were 888
paid as a direct result of unemployment caused by a * * * disaster 889
which is declared by the President of the United States in 890
accordance with Section 401 of the Robert T. Stafford Disaster 891
Relief and Emergency Assistance Act * * *, or pursuant to any 892
federally authorized benefits program related to unemployment 893
under any federal agency; or 894
(b) Ineligible for the benefit, and waiver of the 895
repayment of the benefits is determined by the department to be 896
based upon good cause. 897
(2) All waivers shall be granted based upon a consistent 898
methodology and shall include consideration of ability to repay, 899
good cause, equity and good conscience, the financial impact of 900
the waiver upon the Unemployment Compensation Trust Fund and other 901
similar considerations. 902
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ST: Department of Employment Security; amend
provisions concerning unemployment.
( * * *3) The waiver authorized in subsection (1) of this 903
section shall not be granted if * * * the individual receiving the 904
benefit is found to be guilty of fraud involving filing for, or 905
receipt of, the benefits * * *. 906
* * * 907
( * * *4) All waiver requests shall be considered on a case 908
by case basis. 909
SECTION 8. This act shall take effect and be in force from 910
and after July 1, 2026. 911