Interpretations Manual

The Employment Security Law of North Carolina, Chapter 96-1 et seq., became effective in 1936. It has been amended many times throughout the years, and has been the object of extensive judicial interpretation.

Considering the complex nature of the Employment Security Law, the extensive amendments and court decisions, the Division of Employment Security (then known as the Employment Security Commission) began issuing written interpretations in 1937. Interpretations are issued by the Chief Counsel as DES’s legal opinion and precedent on issues considered, and to ensure consistent application of the law.

 DES’s Interpretations serve two main purposes: First, it is a source of reference for DES employees and the public.  Second, the Interpretations Manual is used by DES employees as an investigative and training tool. Interpretations are not binding on the public.

INTERPRETATION NO.

SUBJECT

INTERPRETATION NO. 3

Interpretation of Section 19(f)(6) of the law.

INTERPRETATION NO. 17

Labor unions coverage under the North Carolina Law.

INTERPRETATION NO. 18

Commission Records shall show true status of employing unit.

INTERPRETATION NO. 27

Determination of suitable work when physical disability is in question.

INTERPRETATION NO. 33

Liability under mandatory provision of Law supersedes voluntary election – Termination of Coverage – Section 8(b) and (c) and Section 19(f) of the Unemployment Compensation Law.

INTERPRETATION NO. 46

Endorsement of checks intended for Unemployment Compensation Commission but sent to Commissioner of Revenue.

INTERPRETATION NO. 48

Unemployment Compensation Act; Interpretation of the phrase “Left work voluntarily without good cause attributable to employer,” as same appears in Section 5(a) of the Unemployment Compensation Laws of North Carolina.

INTERPRETATION NO. 49

Unemployment Compensation Law; Effect of docketing judgment for contributions; Refunds.

INTERPRETATION NO. 55

Unemployment Compensation Tax; Compromise of tax involving claims in litigation.

INTERPRETATION NO. 69

Unemployment Compensation Law; Section 96-14(a) of the General Statutes; Voluntary or involuntary separation from work; Married women who leave their work to follow their husbands to new residences.

INTERPRETATION NO. 79

Interpretation of Section 96-8(g)(1) of the Employment Security Law of North Carolina since January 1, 1949 – Definition of Employment.

INTERPRETATION NO. 87

Employment Security Commission; Collection of contributions; Taxation; Docketing of summary judgment; Authority of Commission to accept chattel mortgages covering amount of contribution or taxes due; Statutes, directory and mandatory.

INTERPRETATION NO. 88

Interpretation of Section 96-11(c)(2) of the Employment Security Law of North Carolina – Voluntary coverage.

INTERPRETATION NO. 92

Employment Security Commission; Proviso of Section 96-15(b); Double Affirmance Clause; Extent of payment of benefits under Double Affirmance Clause.

INTERPRETATION NO. 92-supp-1

INTERPRETATION NO. 98

Interpretation of General Statute of North Carolina 1-47 – 10-year statute of limitation on collection of judgments.

INTERPRETATION NO. 101

Earnings reportable and availability of claimant serving on jury, National Guard, United States Army Reserve Corps, or as election official.

INTERPRETATION NO. 108

Interpretation of Section 96-8(g)(1) of the Employment Security Law of North Carolina since January 1, 1949 – Definition of “employment” - Whether home workers are in employment.

INTERPRETATION NO. 113

Interpretation of Section 96-9(b)(4)(A) of the Employment Security Law of North Carolina – Use of Payrolls in Computing Contribution Rates on Re-established Liability after Computation Date.

INTERPRETATION NO. 114

Interpretation of Sections 96-8(g)(2), (3), (4) and (5) of the Employment Security Law of North Carolina – Employment – Services performed within and without this State – Interstate employment.

INTERPRETATION NO. 118

Interpretation of Section 96-8(g)(7)(G) of the Employment Security Law of North Carolina – Employment of mother and father by an administratrix of son’s estate or by a partnership composed of sons.

INTERPRETATION NO. 119

Interpretation of Section 96-9(c)(4) of the Employment Security Law of North Carolina – Total or partial transfer of experience rating account.

INTERPRETATION NO. 121

Employment Security Commission; Transfer of reserve accounts; Notice of Commission to successor employer; Refunds.

INTERPRETATION NO. 122

Priority of federal liens on personal property.

INTERPRETATION NO. 122-supp-1

Priority of federal liens.

INTERPRETATION NO. 124

Status of an individual who renders service as a preacher and in addition thereto works during the week days in covered employment and who becomes separated from his weekday employment.

INTERPRETATION NO. 131

Executors and administrators; Escheats; Disposition of unemployment compensation benefits where no administrator has qualified, and Section 28-68 does not apply.

INTERPRETATION NO. 139

Eligibility of individuals who are primarily self-employed and others who supplement regular earnings but are not engaged in self-employment.

INTERPRETATION NO. 144

Interpretation of Section 96-8(g)(7)(I) of the Employment Security Law of North Carolina – Status of insurance agents, solicitors, and securities salesmen under the Employment Security Law.

INTERPRETATION NO. 145

Officers of corporations – Employment – Employees.

INTERPRETATION NO. 145-supp-a

Officer’s salaries.

INTERPRETATION NO. 146

Interpretation of Section 96-8(g)(1) of the Employment Security Law of North Carolina – Status of bank directors required by statute to serve on committees.

INTERPRETATION NO. 153

Interpretation of the Employment Security Law of North Carolina, Section 96-8(6)(b) (formerly Section 96-9(c)(4)(B)) Rate of Successor – Section 96-11(a) (No change) Effective date of liability.

INTERPRETATION NO. 158

Interpretation of Section 96-8(g) 15 (formerly Section 96-8(g)(7)(0)) of the Employment Security Law of North Carolina, defining “casual labor.”

INTERPRETATION NO. 163

Interpretation of the Employment Security Law of North Carolina -Section 96-12(b), Wages used in computing weekly benefit amount; Section 96-8 (18), Base period. Section 96-8(10)(a), Total unemployment; Section 96-8(13), Wages – Effect of payment of wages retroactively for base period purposes and effect of such payments upon the eligibility of a claimant for benefits with respect to the week for which such retroactive wages were paid.

INTERPRETATION NO. 165

Interpretation of Section 96-10(d) of the Employment Security Law of North Carolina – Liability of purchaser of business for unpaid contributions of predecessor.

INTERPRETATION NO. 167

Supplemental unemployment benefits.

INTERPRETATION NO. 168

Interpretation of Section 96-8(6) of the Employment Security Law of North Carolina – Employment, Employer and Employee – On-the-job Training under the Division of Vocational Rehabilitation of the North Carolina Department of Education.

INTERPRETATION NO. 169

Interpretation of the Employment Security Law of North Carolina - Covered employment.

INTERPRETATION NO. 172

Interpretation – General Statutes Chapter 59 – Partnerships.

INTERPRETATION NO. 173

Interpretation – General Statutes Section 148-33.1 – Prisoners employed under work release plan – In employment.

INTERPRETATION NO. 174

Interpretation – Decision which has become final may be amended to correct clerical errors or to make the decision express the intent of the deputy.

INTERPRETATION NO. 177

Interpretation of Section 96-8(6) of the Employment Security Law of North Carolina – Services performed under contract by one employing unit for another employing unit.

INTERPRETATION NO. 184

Interpretation of Section 96-8(6) g7 of the Employment Security Law of North Carolina – Employment of stepson by stepfather.

INTERPRETATION NO. 187

Interpretation of Section 59-1 to 59-30 Inclusive – Limited partnerships.

INTERPRETATION NO. 190

Interpretation of the Employment Security Law of North Carolina Section 96-15(b)(1), Redetermination of an initial monetary determination.

INTERPRETATION NO. 205

Interpretation of Section 96-15(b)(2) of the Employment Security Law of North Carolina and Section 1-593 and 103-4 of the General Statutes – Effect of legal holidays upon appeal period.

INTERPRETATION NO. 207

Interpretation of the Employment Security Law of North Carolina (1) Section 96-13(3), Commission-approved training, and (2) Section 96-18(f), Larceny and embezzlement.

INTERPRETATION NO. 220

Interpretation of Section 96-9(5) k., and 96-8(6)g.17 of the Employment Security Law of North Carolina – Orphanages.

INTERPRETATION NO. 221

Interpretation of Sections 96-8(5)k, 96-8(5)a, and 96-8(6) g.17(iv) of the Employment Security Law of North Carolina – Vocational workshop – Rehabilitation facility.

INTERPRETATION NO. 231

Interpretation of the Employment Security Law of North Carolina - Nonprofit organizations: (1) Section 96-8(5)a, 96-8(5)k, and 96-11(c)(1) – Employer and (2) Section 96-9(d) – Method of financing.

INTERPRETATION NO. 231-partial-revocation

Partial Revocation of Interpretation No. 231

INTERPRETATION NO. 232

Interpretation of Section 96-8(5)k and 96-8(6)g.17 (v) of the Employment Security Law of North Carolina – Nonprofit organizations and exempt employment.

INTERPRETATION NO. 237

Interpretation of Section 96-11(c)(1) and 96-10(i) of the Employment Security Law of North Carolina – Request by Employer X held liable under the Federal Unemployment Tax Act for eight years that he be allowed to volunteer coverage under the Employment Security Law of North Carolina for all eight years in order to get tax credit beyond the five-year statute of limitations.

INTERPRETATION NO. 239

Interpretation of Section 96-10(b)(1) of the Employment Security Law of North Carolina – Collection of contributions where employer does not protest or request a hearing within apt time.

INTERPRETATION NO. 248

International Longshoremen Association (ILA), Guaranteed Annual Income Plan (GAI) – South Atlantic Labor Contract.

INTERPRETATION NO. 251

Interpretation of Section 96-8(13) b of the Employment Security Law of North Carolina – Annuity plan.

INTERPRETATION NO. 252

Interpretations.

INTERPRETATION NO. 253

Total and partial unemployment.

INTERPRETATION NO. 254

Disclosure of information.

INTERPRETATION NO. 255

Payments made to claimants.

INTERPRETATION NO. uipl-3582

monies paid to members of the State National Guard or Air National Guard

INTERPRETATION NO. 255-supp-1-v.1

Claims reporting of National Guard pay.

INTERPRETATION NO. 255-supp-1-v.2

National Guard and Reserve pay.

INTERPRETATION NO. 255-supp.-2

Vacation payments.

INTERPRETATION NO. 256

Unemployment of part-time claimants.

INTERPRETATION NO. 256, SUPPLEMENT 1

Unemployment of part-time claimants.

INTERPRETATION NO. 256-supp.-1-rev

Unemployment of part-time claimants, Revised.

INTERPRETATION NO. 257

Limited partnership agreements.

INTERPRETATION NO. 258

Separation payments.

INTERPRETATION NO. 259

Voluntary contributions.

INTERPRETATION NO. 260

Referrals to the State Bureau of Investigation.

INTERPRETATION NO. 261

Leaves of absence; Revision of UI Procedural Letter 33(81).

INTERPRETATION NO. 262-supp.-1-v.1

Bona fide permanent employment.

INTERPRETATION NO. 262-supp.-1-v.2

Bona fide permanent employment.

INTERPRETATION NO. 263

Between terms denial for educational personnel.

INTERPRETATION NO. 263-supp.-1

Between terms denial.

INTERPRETATION NO. 263-supp.-2

Public health nursing positions with schools.

INTERPRETATION NO. 263-supp.-3

Between terms denial - Reasonable assurances.

INTERPRETATION NO. 264

N.C. Gen. Stat. § 96-8(10) - Applications of this Section in cases where an employer’s incentive pay plan results in an employee being paid for more hours than he actually worked.

INTERPRETATION NO. 264-supp.-1

Attached unemployment, N.C. Gen. Stat. § 96-8(10).

INTERPRETATION NO. uib‑1187

Eligibility for attached unemployment.

INTERPRETATION NO. 265

Seasonal pursuits, N.C. Gen. Stat. § 96-16.

INTERPRETATION NO. 266

Authority to reconsider State UI claim.

INTERPRETATION NO. 267

Disability pension offset requirements.

INTERPRETATION NO. 268

Extended benefits – Charging of benefits.

INTERPRETATION NO. 269

Who may appeal and/or protest an unemployment tax rate assignment, an Unemployment Tax Assessment and Demand for Payment, or an employer’s status and/or liability.

INTERPRETATION NO. 270

Job listings & fee charging – Temporary employment agencies.

INTERPRETATION NO. 270-supp.-1

Temporary help/services agencies - Fee charging restriction.

INTERPRETATION NO. 271-v.1

Language proficiency requirement in job orders.

INTERPRETATION NO. 271-v.2

Raising separation from employment issues; Reduction in force plan – Separation determined by employer.

INTERPRETATION NO. 272

Application of the provision under N.C. Gen. Stat. § 96-14(1), Relating to separations due to disability or other health reasons.