Ariz. Admin. Code § R6-3-55460 - Type of Compensation
A. Separation Pay
1. A separation payment includes wages in
lieu of noticeand severance payments made under an employment contract or
policy of the employer under A.R.S. §
23-621.
2. A payment may be made:
a. As a lump sum at the time of termination
of services; or
b. The employer may
continue to include the worker on the employer's payroll for one or more pay
periods following the termination of the worker's services.
3.
Section
23-621 of
the Employment Security Law of Arizona provides that an employee is unemployed
with respect to any week in which he performs no services and with respect to
which no wages are payable to him. Therefore, dismissal or separation payments,
as shown above, are considered to be payments for past services and shall not
be allocated to any period after the separation from work.
B. Vacation,
holiday or sick pay
1. For the purpose of
Unemployment Insurance, payments received for vacation, sick or holiday leave
are considered earnings and shall result in denial of benefits if allocated to
periods during which claims are filed.
2. The appropriate period to which vacation,
holiday, or sick pay is allocable will be determined in one of the following
ways
a. If there is a contract, written or
verbal, in effect between the employer and the claimant at the time of
separation, allocate to the appropriate period in accordance with the contract,
continuing for the number of work days which the pay would cover at the regular
wage rate.
b. If there is no
contract, written or verbal, in effect, allocate to the appropriate period
following the last day of work through the number of work days that the pay
would cover at the regular wage rate.
3. If in a particular situation the agreement
was made for a purpose other than to establish a vacation period (e.g., to
prevent payment of UI benefits for an extended period which the pay would not
cover at the worker's pay rate) the appropriate period will be determined as in
subsection (B)(2)(b).
C.
Back pay awards
1. Unemployment Insurance
regulation R6-3-1703 requires employers to report wages of workers for the
quarter in which the wages were paid. For the purpose of determining a
claimant's eligibility for an unemployment insurance award, wages are allocated
to the quarter in which the wages were paid, in accordance with A.R.S. §
23-771(6).
2. For purposes of A.R.S. §§
23-621,
23-771(6) and
23-779(A) and (B), back pay awards are wages for the period
for which the payment is made, regardless of when paid. This shall not affect
the manner in which wages are reported for contribution purposes.
3. For the purpose of this rule, back pay
awards include, but are not limited to, awards
a. Under the Fair Labor Standards Act for
unpaid overtime or minimum wages, but not for liquidated damages thereunder;
and
b. Of the National Labor
Relations Board or by private agreement consent or arbitration for loss of pay
by reason of wrongful discharge.
Notes
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