N.Y. Labor Law § 566: Indian tribes

§ 566. Indian tribes. 1. Definitions. (a) Indian tribe shall mean any

Indian tribe, subdivision, subsidiary or business enterprise wholly

owned by such Indian tribe, as defined in section 3306(u) of the federal

unemployment tax act (FUTA).

(b) The term "employer" as defined under section five hundred twelve

of this article shall include any Indian tribe for which service in

employment as defined under this article is performed.

(c) The term "employment" as defined under section five hundred eleven

of this article shall include service performed in the employ of an

Indian tribe provided such service is excluded from "employment" as

defined in FUTA solely by reason of section 3306(c)(7), FUTA, and is not

otherwise excluded from "employment" under this article. For purposes of

this section, the exclusions from employment in subdivision two of

section five hundred sixty-five of this article shall be applicable to

services performed in the employ of an Indian tribe.

2. Benefits based on service in employment defined in this section

shall be payable in the same amount, on the same terms and subject to

the same conditions as benefits payable on the basis of other service

subject to this article.

3. Coverage. An Indian tribe shall be liable for contributions under

this article unless it becomes liable for payments in lieu of

contributions.

4. Election of payments in lieu of contributions. (a) Indian tribes

liable for contributions under this article may elect to become liable

for payments in lieu of contributions in the same manner and under the

same conditions as provided in section five hundred sixty-five of this

article except as otherwise provided in this section. Indian tribes may

make separate elections for itself and each subdivision, subsidiary, or

business enterprise wholly owned by such Indian tribe.

(b) An Indian tribe which has elected to become liable for payments in

lieu of contributions shall pay into the fund an amount equal to the

amount of benefits paid to claimants and charged to its employer's

account in accordance with the provisions of paragraph (e) of

subdivision one of section five hundred eighty-one of this article on

the basis of remuneration paid on or after the date on which such

liability became effective. The amount of payments so required shall be

determined by the commissioner as soon as practicable after the end of

each calendar quarter or any other period. Such amount shall be payable

quarterly or at such times and in such manner as the commissioner shall

prescribe and, when paid, the employer's account of the Indian tribes

shall be discharged accordingly.

(c) If an Indian tribe elects payments in lieu of contributions as a

group, the members of the group shall be severally and jointly liable

for payments of amounts equal to the amounts of benefits paid to

claimants and charged to the employer's accounts of all members of the

group. The commissioner may prescribe conditions and methods for such

group elections and for the discharge of the obligations and

responsibilities of the group and its members. Such request shall be

made in accordance with the provisions of paragraph (a) of this

subdivision.

(d) Any Indian tribe that elects to become liable for payments in lieu

of contributions shall, within ninety days of the approval date of its

election, execute and file with the commissioner a surety bond approved

by the commissioner as to amount and form. Such surety bond shall

continue in effect during periods covering such election, but may be

revised annually as to amount and form at the discretion of the

commissioner.

5. Termination of election. (a) An Indian tribe may terminate its

election to become liable for payments in lieu of contributions as of

the first day of any calendar year by filing a written notice to this

effect with the commissioner before the beginning of such year.

(b) If such election is terminated by an Indian tribe or cancelled by

the commissioner, the Indian tribe shall remain liable for payments in

lieu of contributions with respect to all benefits charged to its

account on the basis of remuneration paid before the date on which such

termination or cancellation took effect.

(c) Failure of an Indian tribe to make required payments, including

assessments of interest and penalty, within ninety days of receipt of

the notice of delinquency, will cause the Indian tribe to lose the

option to make payments in lieu of contributions, as described in

subdivision four of this section, for the following calendar year unless

payment in full is received before the computation date preceding the

following calendar year.

(d) Any Indian tribe that loses the option to make payments in lieu of

contributions due to late payment or nonpayment, as described in

paragraph (c) of this subdivision, may request such option be reinstated

prospectively by the commissioner, if all contributions have been made

timely, provided no contributions, payments in lieu of contributions for

benefits paid, penalties or interest are outstanding. Such request shall

be made in accordance with the provisions of paragraph (a) of

subdivision four of this section.

6. Termination of coverage. (a) If, within ninety days of receipt of a

notice of delinquency, an Indian tribe fails to make required

contributions, payments in lieu of contributions, payments of penalties

or interest under this article or fails to post a payment bond, and

after all collection activities deemed necessary by the commissioner

have been exhausted, the commissioner may cause services performed for

such tribe to not be treated as "employment" for purposes of subdivision

one of this section. Such termination of coverage shall be effective on

the first day of the quarter following the quarter in which notice of

termination was mailed.

(b) The commissioner may determine that an Indian tribe that loses

coverage under paragraph (a) of this subdivision, may have services

performed for such tribe again included as "employment" for purposes of

subdivision one of this section if all contributions, payments in lieu

of contributions, penalties and interest have been paid. Such coverage

shall begin as of the quarter following the calendar quarter in which

all contributions, payments in lieu of contributions and interest have

been paid.

7. Notices of payment and reporting delinquency to Indian tribes or

their tribal units shall include information that failure to make full

payment within the prescribed time frame:

(a) will cause the Indian tribe to be liable for taxes under FUTA;

(b) will cause the Indian tribe to lose the option to make payments in

lieu of contributions;

(c) could cause the Indian tribe to be exempted from the definition of

"employer", as provided in subdivision one of this section, and services

in the employ of the Indian tribe, as provided in subdivision two of

this section, to be exempted from "employment".

8. Joint accounts. Any two or more Indian tribes may form a joint

account by complying with rules and regulations prescribed by the

commissioner for the establishment, maintenance and dissolution of such

accounts.

9. Assessment and collection of payments in lieu of contributions. The

amount of payments in lieu of contributions due hereunder from Indian

tribes but not paid upon notice shall be assessed and collected by the

commissioner, together with interest and penalties, if any, in the same

manner and subject to the same conditions under which contributions due

from other employers may be assessed and collected under provisions of

this article.

10. Extended benefits paid that are attributable to service in the

employ of an Indian tribe and not reimbursed by the federal government

shall be financed in their entirety by such Indian tribe.

11. If an Indian tribe fails to make payments required under this

section (including assessments of interest and penalty) within ninety

days of a final notice of delinquency, the commissioner will immediately

notify the United States internal revenue service and the United States

department of labor.