HD58 - The Unemployment Insurance Coverage of In-State Employment of Virginia Citizens by Out-of-State Employers


Executive Summary:
The 1996 Session of the General Assembly enacted House Joint Resolution No. 232, which requested the Virginia Employment Commission to examine the application of the unemployment compensation laws of the Commonwealth to the instate employment of Virginia citizens by out-of-state employers (Appendix A). The resolution also requested that the Commission make recommendations concerning whether modifications should be made to the Virginia Unemployment Compensation Act to ensure that these workers are not unreasonably denied unemployment insurance benefits.

The Commission examined the current statute and the requirements of federal law as they relate to such employment. It was determined that a federal standard has been followed by all states in determining the coverage of in-state services for out-of-state employers and that the particular case which prompted the General Assembly's request was unique due to extraordinary circumstances. The Commission recommends that no legislative changes be sought to address an individual situation.