Section 421.184. Employer elections to cover multistate workers.

(1) The following rules shall govern the  Michigan  employment  security commission in its administrative cooperation with other states subscribing to the interstate reciprocal  coverage  arrangement,  hereinafter referred to as "the arrangement."

(2)     As used in this rule, unless  the   context  clearly   indicates otherwise:

(a)   "Agency" means any officer, board, commission, or other authority charged with the administration of the unemployment compensation law  of   a participating jurisdiction.

(b)    "Interested jurisdiction" means any participating jurisdiction to which an election submitted under this rule is sent for its approval; and "interested agency" means the agency of such jurisdiction.

(c)     "Jurisdiction" means any state of the United States or, with respect to the federal government,   the   coverage   of   any   federal  unemployment compensation law.

(d)      "Participating jurisdiction" means a jurisdiction whose administrative agency has subscribed  to  the   arrangement   and   whose adherence thereto has not terminated.

(e)   "Services customarily performed by an individual in more than 1 jurisdiction" means services performed in more than 1 jurisdiction during a reasonable period, if  the  nature  of the    services   gives    reasonable assurance that   they  will  continue   to  be  performed  in   more

than   1 jurisdiction, or if such services are required or expected to be performed in more than 1 jurisdiction under the election.

(3)     The submission and approval of coverage elections under the interstate reciprocal coverage arrangement shall comply with  all  of   the following:

(a)   Any employing unit may file an election to cover, under the law of a single participating jurisdiction, all of the services performed for it  by any individual who customarily works for it in more  than   1  participating jurisdiction.   Such  an  election   may  be  filed,  with   respect   to an individual, with any participating jurisdiction in which:

(i)   Any part of the individual's services are performed.

(ii)   The individual has his residence.

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

(b)     The agency of the elected jurisdiction, thus selected  and determined, shall initially approve or disapprove the election.   If  such agency approves the election, then it shall forward a copy thereof  to  the agency of each other participating jurisdiction  specified   thereon, under whose unemployment compensation law the individual  or  individuals   in question might, in the absence of such election, be  covered.  Each  such 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 so  requires,  any  such   interested   agency may, before taking such action, 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,  then  the   disapproving agency shall notify the elected jurisdiction and   the  electing  employing unit of its action and of its reasons therefor.

(d)   Such an election shall take effect as to the elected jurisdiction only if approved by its agency and by 1 or more  interested   agencies.   An election thus approved shall take effect, as to   any  interested  agency, only if it is approved by such agency.

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

(4)   The effective period of elections is as follows:

(a)   An election duly approved under this rule 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. If the electing unit requests an earlier effective date than the beginning of the calendar quarter  in   which  the  election  is submitted, such earlier date may be approved solely as to those interested jurisdictions in which the employer has no liability to pay  contributions for the earlier period in question.

(b)   The application of an election to any individual under this rule 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 1  participating   jurisdiction.   Such    termination   shall   be effective as of the close of the calendar quarter in which notice of such finding is mailed to all parties affected. Except as provided in this subdivision, each election approved  hereunder   shall remain in effect through the close of the calendar year in  which   it  is  submitted  and thereafter until the close of the calendar quarter in  which   the    electing unit gives written notice

of its termination to all affected  agencies. Whenever an election under this rule ceases to apply to any individual under this subdivision, the electing unit shall notify the affected individual accordingly.

(5)   The electing unit shall file reports and notices as follows:

(a)   The electing unit shall promptly notify each individual  affected  by its approved election on the form supplied by the elected jurisdiction and shall furnish the elected agency a copy of such notice.

(b)   Whenever an individual covered by an election under this rule is separated from his employment, the electing unit shall again notify him forthwith as to the jurisdiction under whose unemployment compensation law his services have been covered. If at the time of the termination the individual is not located in the elected jurisdiction,   then  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 1 participating jurisdiction, or where a change in the work assigned to an individual requires him to perform services in    a   new   participating jurisdiction.

(6)   The Michigan employment security commission hereby delegates  to   its director authority to approve or disapprove  reciprocal coverage   elections pursuant to this rule.

History: 1979 AC; 1980 AACS.