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CCH® UNEMPLOYMENT INSURANCE — 8/27/15

Idaho amends its UI law regarding exempt employment, penalties

Idaho has amended its Employment Security Law as follows:

Exempt employment. A specific exemption regarding owner-operators in the trucking industry now exists. Owner-operators are in the independent business of leasing trucks to a motor carrier and supplying drivers to operate the leased trucks. Recent court cases in Idaho have demonstrated the potential misapplication and/or misinterpretation of the general exemption under the Idaho Employment Security Law when applied to owner-operators. As a result of these recent court cases, many motor carriers have chosen not to engage owner-operators in Idaho. As amended, the legislation provides a clear and concise exemption that can be efficiently administered and enforced by the Department of Labor and reasonably relied on by the motor carriers.

Penalties. In 2013, the Legislature approved changes to Idaho Code Section 72-1369 that were required by the federal Trade Adjustment Assistance Extension Act of 2011 (P.L. 112-40). As a result, the U.S. Department of Labor informed the Department that a technical correction was necessary. Therefore, the law has been amended to clarify that of the civil penalty amounts collected, an amount equal to 15% of the total overpayment must be paid into the Employment Security Fund.