# COMAR Title 09 — Maryland Department of Labor

## Subtitle 32 — Unemployment Insurance

### Chapter 04 — Interstate Reciprocal Coverage Arrangements for Employer Elections to Cover Multi-State Workers

**Authority:** Labor and Employment Article, §8-305, Annotated Code of Maryland

**Administrative History:** Effective date: February 1, 1973

**Administrative History:** (Transferred from Department of Human Services to Department of Employment and Training, effective October 1, 1983; recodified from COMAR 07.04.04 to 24.02.04)

**Administrative History:** Chapter recodified from COMAR 24.02.04 to COMAR 09.32.04, May 1996

#### Regulation .01 Relation to Subscribing States.

*COMAR 09.32.04.01*

This chapter shall regulate the Maryland Department of Labor in its cooperation with other states subscribing to the Interstate Reciprocal Coverage Arrangement hereinafter referred to as “the arrangements”.

#### Regulation .02 Definitions.

*COMAR 09.32.04.02*

A. In this chapter, unless the context clearly indicates otherwise, the following terms have the meanings indicated.

B. Terms Defined.

  (1) “Agency” means any officer, board, commission, or other authority charged with the administration of the unemployment insurance law of a participating jurisdiction.

  (2) “Interested jurisdiction” means any participating jurisdiction to which an election submitted under this regulation is sent for its approval. “Interested agency” means the agency of that jurisdiction.

  (3) “Jurisdiction” means any state of the United States, the District of Columbia, Puerto Rico, Virgin Islands, Guam, and Samoa, or, with respect to the Federal Government, the coverage of any Federal Unemployment Law.

  (4) “Participating jurisdiction” means a jurisdiction whose administrative agency has subscribed to the arrangement and whose adherence to it has not ended.

  (5) “Services customarily performed by an individual in more than one jurisdiction” means service performed in more than one jurisdiction during a reasonable period, if the nature of the services gives reasonable assurance that they will continue to be performed in more than one jurisdiction or if these services are required or expected to be performed in more than one jurisdiction under the elections.

#### Regulation .03 Submission and Approval of Coverage under the Interstate Reciprocal Coverage Arrangement.

*COMAR 09.32.04.03*

A. Any employing unit may file an election, on Form RC-1, to cover under the law of a single participating jurisdiction all the services performed for him by an individual who customarily works for him in more than one participating jurisdiction. An election as just described may be filed, with respect to an individual with any participating jurisdiction in which:

  (1) Any part of the individual's services are performed;

  (2) The individual has his residence; or

  (3) The employing unit maintains a place of business to which the individual's services bears a reasonable relation.

B. Approval of the Election.

  (1) The agency of the elected jurisdiction (thus selected and determined) shall approve or disapprove the election.

  (2) If the agency approves the election, it shall forward a copy of it to the agency of each other participating jurisdiction specified on the copy, under whose unemployment compensation law the individual or individuals in question might, in the absence of this election, be covered. Each interested agency shall approve or disapprove the election, as promptly as practicable, and shall notify the agency of the elected jurisdiction accordingly. If its law requires, any interested agency, before taking this action, may require from the electing employing unit satisfactory evidence that the affected employees have been notified of, and have acquiesced in, the election.

C. If the agency of the elected jurisdiction, or the agency of any interested jurisdiction, disapproves the election, the disapproving agency shall notify the elected jurisdiction and the electing employing unit of its action and of its reason for this action.

D. Such an election shall take effect as to the elected jurisdiction only if approved by its agency and by one or more interested agencies. An election thus approved shall take effect, as to any interested agency, only if it is approved by the agency.

E. In case any election is approved only in part, or is disapproved by some of the agencies, the electing employing unit may withdraw its election within 10 days after being notified of this action.

#### Regulation .04 Effective Period of Elections.

*COMAR 09.32.04.04*

A. Commencement.

  (1) An election duly approved under these regulations shall become effective at the beginning of the calendar quarter in which the election was submitted, unless the election as approved, specifies the beginning of a different calendar quarter.

  (2) If the electing unit requests an earlier effective date than that beginning of the calendar quarter in which the election was submitted, the earlier date may be approved solely as to those interested jurisdictions in which the employer had no liability to pay contributions for the earlier period in question.

B. Termination.

  (1) The application of an election to any individual under this regulation shall terminate, if the agency of the elected jurisdiction finds that the nature of the services customarily performed by the individual for the electing unit has changed, so that they are no longer customarily performed in more than one participating jurisdiction. This termination shall be effective as of the close of the calendar quarter in which notice of the finding is mailed to all parties affected.

  (2) Except as provided in §B(1) of this regulation, each election approved here shall remain in effect through the close of the calendar year in which it is submitted, and afterwards until the close of the calendar quarter in which the electing unit gives written notice of its termination to all affected agencies.

  (3) Whenever an election under this regulation ceases to apply to any individual, under §B(1) or (2) of this regulation, the electing unit shall notify the affected individual accordingly.

#### Regulation .05 Reports and Notices by the Electing Unit.

*COMAR 09.32.04.05*

A. The electing unit shall promptly notify each individual affected by its approved election, on the Form RC-2 supplied by the elected jurisdiction, and shall furnish the elected agency a copy of this notice.

B. Whenever an individual covered by an election under this regulation is separated from his employment, the electing unit shall again notify him, immediately, as to the jurisdiction under whose unemployment compensation law his services have been covered. If at the time of termination, the individual is not located in the elected jurisdiction, the electing unit shall notify him as to the procedure for filing interstate benefit claims.

C. The electing unit shall immediately report to the elected jurisdiction any change which occurs in the conditions of employment pertinent to its election, such as cases where an individual's services for the employer cease to be customarily performed in more than one participating jurisdiction or where a change in the work assigned to an individual requires him to perform services in a new participating jurisdiction.

#### Regulation .06 Approval of Reciprocal Coverage Elections.

*COMAR 09.32.04.06*

The Secretary or his designated representative shall approve or disapprove reciprocal coverage elections in accordance with these regulations.
