S 117

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No. 40. An act relating to wage and hour, unemployment compensation,
and workers’ compensation.
                                     (S.117)
It is hereby enacted by the General Assembly of the State of Vermont:
                     * * * Safety and Health Rulemaking * * *
Sec. 1. [Deleted.]
Sec. 2. [Deleted.]
Sec. 3. [Deleted.]
Sec. 4. [Deleted.]
                            * * * Wage and Hour * * *
Sec. 5. 21 V.S.A. § 342a is amended to read:
§ 342a. INVESTIGATION OF COMPLAINTS OF UNPAID WAGES
                                      ***
   (d) If the Commissioner determines that the unpaid wages were willfully
withheld by the employer, the order for collection may shall provide that the
employer is liable to pay an additional amount not to exceed twice the amount
of unpaid wages, one-half. One-half of which will the additional amount
recovered above the employee’s unpaid wages shall be remitted to the
employee and one-half of which shall be retained by the Commissioner to
offset administrative and collection costs.
                                      ***
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Sec. 6. 21 V.S.A. § 384 is amended to read:
§ 384. EMPLOYMENT; WAGES
   (a)(1) Beginning on January 1, 2022, an employer shall not employ any
employee at a rate of less than $12.55, and on each subsequent January 1, the
minimum wage rate shall be increased by five percent or the percentage
increase of the Consumer Price Index, CPI-U, U.S. city average, not seasonally
adjusted, or successor index, as calculated by the U.S. Department of Labor or
successor agency, rounded to one decimal point, for the 12 months preceding
the previous September 1, whichever is smaller, but in no event shall the
minimum wage be decreased. The minimum wage shall be rounded off to the
nearest $0.01.
                                      ***
Sec. 7. 21 V.S.A. § 385 is amended to read:
§ 385. ADMINISTRATION
   The Commissioner and the Commissioner’s authorized representatives have
full power and authority for all the following:
                                      ***
      (5) To recommend a suitable scale of rates for learners, apprentices, and
persons with disabilities, which may be less than the regular minimum wage
rate for experienced workers without disabilities.
                     * * * Notice of Potential Layoffs * * *
Sec. 8. [Deleted.]
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                   * * * Unemployment Compensation * * *
Sec. 9. 21 V.S.A. § 1308 is amended to read:
§ 1308. ORGANIZATION
   The Commissioner shall determine his or her the method of procedure in
accordance with the provisions of this chapter. Notwithstanding any
requirement in this chapter that the Commissioner mail notices and
determinations, the Commissioner may provide claimants and employers with
the option to authorize communications from the Commissioner to be
delivered electronically.
Sec. 10. 21 V.S.A. § 1314 is amended to read:
§ 1314. REPORTS AND RECORDS; SEPARATION INFORMATION;
         DETERMINATION OF ELIGIBILITY; FAILURE TO REPORT
         EMPLOYMENT INFORMATION; DISCLOSURE OF
         INFORMATION TO OTHER STATE AGENCIES TO
         INVESTIGATE MISCLASSIFICATION OR MISCODING
                                      ***
   (c) If an employing unit fails to comply adequately with the provisions of
subsection (b) of this section and section 1314a of this subchapter, the
Commissioner shall determine the benefit rights of a claimant upon the
available information. Prompt notice in writing of the determination shall be
given to the employing unit. The employing unit may request or authorize the
Commissioner to provide notice of the determination electronically. The
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determination shall be final with respect to a noncomplying employer as to any
charges against its experience-rating record for benefits paid to the claimant
before the week following the receipt of the employing unit’s reply. The
employing unit’s experience rating record shall not be relieved of these
charges, notwithstanding any other provision of this chapter, unless the
Commissioner determines that failure to comply was due to unavoidable
accident or mistake.
                                      ***
Sec. 11. 21 V.S.A. § 1314a is amended to read:
§ 1314a. QUARTERLY WAGE REPORTING; MISCLASSIFICATION;
          PENALTIES
                                      ***
   (d) Reports required by subsection (c) of this section shall be submitted to
the Commissioner not later than 10 calendar days after the date the
Commissioner’s request was sent electronically or mailed to the employing
unit.
   (e) On request of the Commissioner, any employing unit or employer shall
report, within 10 days after the mailing, electronic delivery, or personal
delivery of the request, separation information for a claimant, any
disqualifying income the claimant may have received, and any other
information that the Commissioner may require to determine the claimant’s
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eligibility for unemployment compensation. The Commissioner shall make a
request when:
                                      ***
Sec. 12. 21 V.S.A. § 1330 is amended to read:
§ 1330. ASSESSMENT PROVIDED
   When any employer fails to pay any contributions or payments required
under this chapter, the Commissioner shall make an assessment of
contributions against the employer together with applicable interest and
penalty. After making the assessment, the Commissioner shall give notice to
the employer electronically or by ordinary or certified mail, and the assessment
shall be final unless the employer petitions for a hearing on the assessment
pursuant to section 1331 of this subchapter.
Sec. 13. 21 V.S.A. § 1331 is amended to read:
§ 1331. NOTICE; HEARING
   (a) Any employer against whom an assessment is made may, within 30
days after the date of the assessment, file with the Commissioner a petition for
a hearing before a referee appointed for that purpose. The petition shall set
forth specifically and in detail the grounds upon which it is claimed the
assessment is erroneous.
   (b) Hearing or hearings on the assessment shall be held by the referee at
times and places provided by the rules of the Board and due notice of the time
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and place of the hearing or hearings shall be given electronically or by ordinary
or certified mail to the petitioner.
   (c) After the hearing the petitioner shall be promptly notified electronically
or by ordinary or certified mail of the findings of fact, conclusions, and
decision of the referee.
                                       ***
Sec. 14. 21 V.S.A. § 1332 is amended to read:
§ 1332. REVIEW BY BOARD; SUPREME COURT APPEAL
                                       ***
   (d) The parties shall be promptly notified electronically or by ordinary or
certified mail of the findings of fact, conclusions, and decision of the Board.
The decision of the Board shall be final unless it is appealed to the Supreme
Court.
Sec. 15. 21 V.S.A. § 1337a is amended to read:
§ 1337a. ADMINISTRATIVE DETERMINATION; HEARING ON
   (a) Any employing unit aggrieved by an administrative determination
affecting its rate of contributions, its rights to adjustment or refund on
contributions paid, its coverage as an employer, or its termination of coverage
may, within 30 days after the date of the determination, file with the
Commissioner a petition for a hearing on the determination. The petition shall
set forth specifically and in detail the grounds upon which it is claimed the
administrative determination is erroneous. Hearing or hearings on the petition
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shall be held by a referee appointed for that purpose, at times and places as
provided by rules of the Board. Notice of the time and place of the hearing or
hearings shall be given electronically or by ordinary or certified mail to the
petitioner.
   (b) After a hearing pursuant to subsection (a) of this section, the petitioner
shall be promptly notified electronically or by ordinary or certified mail of the
findings of fact, conclusions, and decision of the referee. The decision of the
referee shall be final unless the employing unit or Commissioner makes
application for review of the decision by the Board within 30 days after the
date of the decision or unless the Board, on its own motion within the same
period, initiates a review of the decision.
Sec. 16. 21 V.S.A. § 1357 is amended to read:
§ 1357. NOTICES; FORM AND SERVICE
   Notices required under the provisions of this chapter, unless otherwise
provided by the provisions of this chapter or by rules adopted by the Supreme
Court, shall be deemed sufficient if given in writing and delivered to the
person entitled to it by an agent of the Commissioner, or sent electronically or
by ordinary or certified mail to the last known address of the person appearing
in the records of the Commissioner. The manner of service shall be certified
by the agent of the Commissioner making the service. Regardless of the
manner of service and unless otherwise provided, appeal periods shall
commence to run from the date of the determination or decision rendered. If a
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person to whom a notice has been sent files with the Commissioner within 60
days after the date of the notice a sworn statement to the effect that the notice
was not received, or if the Commissioner is satisfied that the addressee did not
receive the notice, a new notice shall be sent to that person and the appeal
period shall commence to run from the date on which the new notice is sent.
Sec. 17. 21 V.S.A. § 1325 is amended to read:
§ 1325. EMPLOYERS’ EXPERIENCE-RATING RECORDS;
         DISCLOSURE TO SUCCESSOR ENTITY
                                       ***
   (b)(1) Disclosure of contribution rate to successor entity. Any individual or
employing unit who in any manner succeeds to or acquires the organization,
trade, or business or substantially all of the assets of any employer who has
been operating the business within two weeks prior to the acquisition, except
any assets retained by the employer incident to the liquidation of the
employer’s obligations, and who thereafter continues the acquired business
shall be considered to be a successor to the predecessor from whom the
business was acquired and, if not already an employer before the acquisition,
shall become an employer on the date of the acquisition. The Commissioner
shall transfer the experience-rating record of the predecessor employer to the
successor employer. If the successor was not an employer before the date of
acquisition, the successor’s rate of contribution for the remainder of the rate
year shall be the rate applicable to the predecessor employers with respect to
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the period immediately preceding the date of acquisition if there was only one
predecessor or there were only predecessors with identical rates. If the
predecessors’ rates were not identical, the Commissioner shall determine a rate
based on the combined experience of all the predecessor employers. If the
successor was an employer before the date of acquisition, the contribution rate
that was assigned to the successor for the rate year in which the acquisition
occurred will remain assigned to the successor for the remainder of the rate
year, after which the experience-rating record of the predecessor shall be
combined with the experience rating of the successor to form the single
employer experience-rating record of the successor. At any time prior to the
issuance of the certificate required by subsection 1322(b) of this chapter, an
employing unit shall, upon request of a potential successor, disclose to the
potential successor its current experience-rating record.
      (2) Notwithstanding the provisions of subdivision (1) of this subsection,
an individual or employing unit who in any manner succeeds to or acquires the
organization, trade, or business or substantially all of the assets of any
employing unit who was an employer before the date of acquisition and whose
currently assigned contribution rate is higher than that currently assigned to the
acquiring individual or employing unit shall not be treated as a successor.
      (3) If a successor, upon acquisition of an employer under subdivision (1)
of this subsection, divides operation of the successor business between two or
more corporate entities, the successor shall designate one of the corporate
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entities involved in successor’s business operations as the filing successor for
purposes of quarterly wage reporting and benefit rate assignment. The
designated filing successor shall include all employees involved in carrying on
the successor business in the designated filing successor’s quarterly wage
reporting and shall pay the full successor benefit tax on all business employees.
                                      ***
Sec. 18. 21 V.S.A. § 1326 is amended to read:
§ 1326. RATE BASED ON BENEFIT EXPERIENCE
                                      ***
   (d) The Commissioner shall compute a current fund ratio, and a highest
benefit cost rate, as follows:
      (1) The current fund ratio shall be determined by dividing the available
balance of the Unemployment Compensation Fund on December 31 of the
preceding calendar year by the total wages paid for employment during that
calendar year as reported by employers by the following March 31.
      (2)(A) The highest benefit cost rate shall be determined by dividing the
highest amount of benefit payments made during a consecutive 12-month
period that ended within the 10-year period ending on the preceding December
31, by the total wages paid during the four calendar quarter periods that ended
within that 12-month period is the highest annual ratio within the 10-year
period ending on the preceding December 31 of benefits paid, including the
State’s share of extended benefits, for taxpaying employers divided by total
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wages paid in covered employment for taxpaying employers for the same
period.
          (B) Notwithstanding any provision of subdivision (A) of this
subdivision (d)(2) to the contrary, when computing the tax rate schedule to
become effective on July 1, 2021 and on each subsequent July 1, the
Commissioner shall calculate the highest benefit cost rate without
consideration of benefit payments made in calendar year 2020.
                                      ***
Sec. 19. 21 V.S.A. § 1338a is amended to read:
§ 1338a. DISREGARDED EARNINGS
   (a) An individual shall be deemed “partially unemployed” in any week of
less than full-time work if the wages earned by the individual with respect to
such week are less than the weekly benefit amount the individual would be
entitled to receive if totally unemployed and eligible. As used in this section,
“wages” in any one week includes only that amount of remuneration rounded
down to the nearest dollar that is in excess of 50 percent of the individual’s
weekly wage.
                                      ***
Sec. 20. 21 V.S.A. § 1462 is amended to read:
§ 1462. PERIOD OF DORMANCY
   On July 1, 2020, the Short-Time Compensation Program established
pursuant to sections 1451–1461 of this subchapter shall cease ceased operation
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and shall not resume operation unless directed to do so by enactment of the
General Assembly or, if the General Assembly is not in session, by order of the
Joint Fiscal Committee. The Joint Fiscal Committee shall issue such order
only upon finding that, due to a change in circumstances, resumption of the
Short-Time Compensation Program would be the most effective way to assist
employers in avoiding layoffs. Upon the effective date of such an enactment
or order Effective upon completion of the project to implement a modernized
information technology system for the unemployment insurance program in
2026, the Short-Time Compensation Program shall resume operation pursuant
to the provisions of sections 1451–1461 of this subchapter.
Sec. 21. 2022 Acts and Resolves No. 183, Sec. 52f is amended to read:
   Sec. 52f. UNEMPLOYMENT INSURANCE; INFORMATION
               TECHNOLOGY MODERNIZATION; ANNUAL REPORT;
               INDEPENDENT VERIFICATION
   (a)(1) The Secretary of Digital Services and the Commissioner of Labor
shall, to the greatest extent possible, plan and carry out the development and
implementation of a modernized information technology system for the
unemployment insurance program so that the modernized system is ready and
able to implement on or before July 1, 2025 2026 the changes to the
unemployment insurance weekly benefit amount set forth in Secs. 52d and 52e
of this act.
                                      ***
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Sec. 21a. 2022 Acts and Resolves No. 183, Sec. 59 is amended to read:
   Sec. 59. EFFECTIVE DATES
                                          ***
   (b)(1) Notwithstanding 1 V.S.A. § 214, Sec. 52a (repeal of prior
unemployment insurance supplemental benefit) shall take effect retroactively
on October 7, 2021.
                                          ***
      (4)(A) Sec. 52d (amendment of temporary increase in unemployment
insurance maximum weekly benefit) shall take effect on July 1, 2025 2026 or
the date on which the Commissioner of Labor determines that the Department
of Labor is able to implement the provisions of that section as set forth in
Sec. 52f(b), whichever is earlier, and shall apply to benefit weeks beginning
after that date.
             (B) However, Sec. 52d shall not take effect at all if Sec. 52c takes
effect before the conditions of subdivision (A) of this subdivision (b)(4) are
satisfied.
      (5)(A) Sec. 52e (increase in unemployment insurance weekly benefit
amount) shall take effect on July 1, 2025 2026 and shall apply to benefit weeks
beginning after that date.
             (B) However, Sec. 52e shall not take effect at all if either
                (i) Sec. 52d takes effect before July 1, 2025 2026; or
                (ii) Sec. 52c has not taken effect before July 1, 2025 2026.
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                                     ***
                      * * * Workers’ Compensation * * *
Sec. 22. 21 V.S.A § 601 is amended to read:
§ 601. DEFINITIONS
   As used in this chapter:
                                     ***
      (31) “Medical case management” means the planning and coordination
of health care services appropriate to achieve the goal of medical
rehabilitation.
          (A) Medical case management may include medical case assessment,
including a personal interview with the injured employee; assistance in
developing, implementing, and coordinating a medical care plan with health
care providers in consultation with the injured employee and the employees’
family; and an evaluation of treatment results. The goal of medical case
management is to provide the injured employee with reasonable treatment
options to ensure that the injured employee can make an informed choice.
          (B) Medical case managers shall not provide medical care or adjust
claims.
          (C) An injured employee shall be entitled to medical case
management services if reasonably supported. Reasonable support includes a
recommendation made by a health care provider or evidence demonstrating the
injured employee’s medical recovery would benefit from the services, or both.
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Sec. 23. 21 V.S.A. § 602 is amended to read:
§ 602. PROCESS AND PROCEDURE
                                     ***
   (d) When an injured employee does not speak English fluently, the
employer shall pay for translation services to ensure the injured employee fully
understands the employee’s rights and can effectively participate in the
employee’s medical recovery and the workers’ compensation claims process.
Sec. 24. 21 V.S.A. § 640b is amended to read:
§ 640b. REQUEST FOR PREAUTHORIZATION TO DETERMINE IF
         PROPOSED BENEFITS OR SERVICES ARE NECESSARY
   (a) As used in this section,:
      (1) “benefits” “Benefits” means medical treatment and surgical,
medical, and nursing services and supplies, including prescription drugs and
durable medical equipment.
      (2) “Services” means medical case management services.
                                     ***
   (e) Within 14 days after receiving a request for preauthorization of
proposed medical case management services, the insurer shall do one of the
following, in writing:
      (1) Authorize the services and notify the injured employee, the
Department, and the treating provider recommending the services, if
applicable.
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      (2) Deny the services because the entire claim is disputed, and the
Commissioner has not issued an interim order to pay benefits. The insurer
shall notify the injured employee, the Department, and the treating provider
recommending the services, if applicable, of the decision to deny benefits.
      (3) Deny the request if there is not reasonable support for the requested
services. The insurer shall notify the injured employee, the Department, and
the treating provider recommending the services, if applicable, of the decision
to deny benefits.
      (4) Notify the injured employee, the Department, and the treating
provider recommending the services, if applicable, that the insurer has
scheduled an examination of the injured employee pursuant to section 655 of
this title or ordered a medical record review pursuant to section 655a of this
title. Based on the examination or review, the insurer shall notify the injured
employee and the Department of the decision within 45 days after a request for
preauthorization. The Commissioner may, in the Commissioner’s sole
discretion, grant a 10-day extension to the insurer to authorize or deny the
services, and such an extension shall not be subject to appeal.
   (f) If the insurer fails to authorize or deny the services pursuant to
subsection (e) of this section within 14 days after receiving a request, the
injured employee or the injured employee’s treating provider, if applicable,
may request that the Department issue an order authorizing services. After
receipt of the request, the Department shall issue an interim order within five
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days after notice to the insurer, and five days in which to respond, absent
evidence that the entire claim is disputed. Upon request of a party, the
Commissioner shall notify the parties that the services have been authorized by
operation of law.
   (g) If the insurer denies the preauthorization of the services pursuant to
subdivision (e)(2), (3), or (4) of this section, the Commissioner may, on the
Commissioner’s own initiative or upon a request by the injured worker, issue
an order authorizing the services if the Commissioner finds that the evidence
shows that the services are reasonably supported.
Sec. 25. 21 V.S.A. § 650 is amended to read:
§ 650. PAYMENT; AVERAGE WAGE; COMPUTATION
                                      ***
   (f)(1)(A) When benefits have been awarded or are not in dispute as
provided in subsection (e) of this section, the employer shall establish a
weekday on which payment shall be mailed or deposited and notify the
claimant and the Department of that day. The employer shall ensure that each
weekly payment is mailed or deposited on or before the day established.
         (B) Payment shall be made by direct deposit to a claimant who elects
that payment method. The employer shall notify the claimant of the claimant’s
right to payment by direct deposit.
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      (2) If the benefit payment is not mailed or deposited on the day
established, the employer shall pay to the claimant a late fee equal to the
greater of $10.00 or:
         (A) five percent of the benefit amount, whichever is greater, for each
weekly the first payment that is made after the established day;
         (B) 10 percent of the benefit amount for the second payment that is
made after the established day; and
         (C) 15 percent of the benefit amount for the third and any subsequent
payments that are made after the established day.
      (3) As used in this subsection, “paid” means the payment is mailed to
the claimant’s mailing address or, in the case of direct deposit, transferred into
the designated account. In the event of a dispute, proof of payment shall be
established by affidavit.
Sec. 26. LATE PAYMENT OF AVERAGE WEEKLY WAGES; PENALTY;
         REPORT
   (a) The payment of any late fee pursuant to 21 V.S.A. § 650(f)(2) shall be
reported to the Commissioner on a quarterly basis for one year, commencing
on October 1, 2025. The employer shall attest to the reasons for the late
payment and the steps being taken to avoid future late payments of benefit
amounts. The Commissioner shall compile the information in a format of the
Commissioner’s choosing.
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   (b) An employer who fails to submit the report required by subsection (a)
of this section may be assessed an administrative penalty of not more than
$500.00.
   (c) On or before January 15, 2027, the Commissioner shall submit a written
report to the General Assembly with the Commissioner’s findings on the
frequency of late payments at each penalty level, the reasons given for the late
payments, and the effectiveness of the late fee penalties in reducing the number
of late payments. The report shall include the Commissioner’s
recommendation on whether to continue the reporting requirement and whether
the penalties for late payments should be maintained, increased, or decreased
based upon the reported data.
                           * * * Effective Date * * *
Sec. 27. EFFECTIVE DATE
   This act shall take effect on July 1, 2025.
Date Governor signed bill: May 28, 2025
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