§ 96-14. Disqualification for benefits. - North Carolina Statutes

§ 96‑14. Disqualification for benefits.

An individual shall bedisqualified for benefits:

(1)        For the duration ofhis unemployment beginning with the first day of the first week after thedisqualifying act occurs with respect to which week an individual files a claimfor benefits if it is determined by the Commission that such individual is, atthe time such claim is filed, unemployed because he left work without goodcause attributable to the employer.

Wherean individual is discharged or leaves work due solely to a disability incurredor other health condition, whether or not related to the work, he shall not bedisqualified for benefits if the individual shows:

a.         That, at the time ofleaving, an adequate disability or health condition of the employee, of a minorchild who is in the legally recognized custody of the individual, of an aged ordisabled parent of the individual, or of a disabled member of the individual'simmediate family, either medically diagnosed or otherwise shown by competentevidence, existed to justify the leaving; and

b.         That, at areasonable time prior to leaving, the individual gave the employer notice ofthe disability or health condition.

Wherean employee is notified by the employer that such employee will be separatedfrom employment on some future date and the employee leaves work prior to thisdate because of the impending separation, the employee shall be deemed to haveleft work voluntarily and the leaving shall be without good cause attributableto the employer. However, if the employee shows to the satisfaction of theCommission that it was impracticable or unduly burdensome for the employee towork until the announced separation date, the permanent disqualificationimposed for leaving work without good cause attributable to the employer may bereduced to the greater of four weeks or the period running from the beginningof the week during which the claim for benefits was made until the end of theweek of the announced separation date.

Anemployer's placing an individual on a bona fide disciplinary suspension of 10or fewer consecutive calendar days shall not constitute good cause for leavingwork.

(1a)      Where an individualleaves work, the burden of showing good cause attributable to the employerrests on said individual, and the burden shall not be shifted to the employer.

(1b)      Where an individualleaves work due solely to a unilateral and permanent reduction in work hours ofmore than twenty percent (20%) of the customary scheduled full‑time workhours in the establishment, plant, or industry in which he was employed, saidleaving shall constitute good cause attributable to the employer for leavingwork. Provided however that if said reduction is temporary or was occasioned bymalfeasance, misfeasance or nonfeasance on the part of the individual, suchreduction in work hours shall not constitute good cause attributable to theemployer for leaving work.

(1c)      Where an individualleaves work due solely to a unilateral and permanent reduction in his rate ofpay of more than fifteen percent (15%), said leaving shall constitute goodcause attributable to the employer for leaving work. Provided however that ifsaid reduction is temporary or was occasioned by malfeasance, misfeasance ornonfeasance on the part of the individual, such reduction in pay shall notconstitute good cause attributable to the employer for leaving work.

(1d)      For the purposes ofthis Chapter, any claimant leaving work to accompany the claimant's spouse to anew place of residence where that spouse has secured work in a location that istoo far removed for the claimant reasonably to continue his or her work shallconstitute good cause for leaving work. Notwithstanding the other provisions ofthis subdivision, any claimant leaving work to accompany the claimant's spouseto a new place of residence because the spouse has been reassigned from onemilitary assignment to another shall be deemed good cause for leaving work.Benefits paid on the basis of this subdivision shall not be charged to theaccount of the employer.

(1e)      For the duration ofan individual's unemployment, beginning with the first day of the first weekafter the disqualifying act occurs with respect to which week an individualfiles a claim for benefits, if it is determined by the Commission that such individualis, at the time such claim is filed, unemployed because the individual, withoutgood cause attributable to the employer and after receiving notice from theemployer, refused to return to work for a former employer when recalled withinfour weeks from a layoff, or when recalled in any week in which the work searchrequirements under G.S. 96‑13 have been waived. As used in thissubsection, the term "layoff" means a temporary separation from workdue to no work available for the individual at the time of separation from workand the individual is retained on the employer's payroll and is a continuingemployee subject to recall by the employer.

(1f)       For the purposes ofthis Chapter, any claimant's leaving work, or discharge, if the claimant hasbeen adjudged an aggrieved party as set forth by Chapter 50B of the GeneralStatutes or there is evidence of domestic violence, sexual offense, orstalking, or the claimant has been granted program participant status pursuantto G.S. 15C‑4 as the result of domestic violence committed upon theclaimant or upon a minor child with or in the custody of the claimant by aperson who has or has had a familial relationship with the claimant or minorchild, shall constitute good cause for leaving work. Benefits paid on the basisof this section shall be noncharged. Evidence of domestic violence, sexualoffense, or stalking may include: (i) law enforcement, court, or federal agencyrecords or files; (ii) documentation from a domestic violence or sexual assaultprogram if the claimant is alleged to be a victim of domestic violence orsexual assault; or (iii) documentation from a religious, medical, or otherprofessional from whom the claimant has sought assistance in dealing with thealleged domestic violence, sexual abuse, or stalking. This provision is onlyapplicable to the claimant and claimant's spouse, parents, and children under18 years of age, whether the relationship is a biological, step‑, half‑,or in‑law relationship.

(1g)      For purposes of thisChapter, separation or discharge solely due to an inability to accept workduring a particular shift as a result of an undue family hardship shallconstitute good cause for leaving work. Benefits paid on the basis of thissection shall not be charged to the account of the employer.

(2)        For the duration ofthe individual's unemployment beginning with the first day of the first weekafter the disqualifying act occurs with respect to which week an individualfiles a claim for benefits if it is determined by the Commission that suchindividual is, at the time such claim is filed, unemployed because he or shewas discharged for misconduct connected with the work. Misconduct connectedwith the work is defined as conduct evincing such willful or wanton disregardof an employer's interest as is found in deliberate violations or disregard ofstandards of behavior which the employer has the right to expect of anemployee, or in carelessness or negligence of such degree or recurrence as tomanifest equal culpability, wrongful intent or evil design, or to show anintentional and substantial disregard of the employer's interests or of theemployee's duties and obligations to the employer.

"Dischargefor misconduct with the work" as used in this section is defined toinclude but not be limited to separation initiated by an employer for reportingto work significantly impaired by alcohol or illegal drugs; consuming alcoholor illegal drugs on employer's premises; conviction by a court of competentjurisdiction for manufacturing, selling, or distribution of a controlledsubstance punishable under G.S. 90‑95(a)(1) or G.S. 90‑95(a)(2)while in the employ of said employer. This phrase does not include discharge oremployer‑initiated separation of a severely disabled veteran, as definedin G.S. 96‑8, for acts or omissions of the veteran that the Commissiondetermines are attributed to a disability incurred or aggravated in the line ofduty during active military service, or to the veteran's absence from work toobtain care and treatment of a disability incurred or aggravated in the line ofduty during active military service.

(2a)      For a period of notless than four nor more than 13 weeks beginning with the first day of the firstweek during which or after the disqualifying act occurs with respect to whichweek an individual files a claim for benefits if it is determined by theCommission that such individual is, at the time the claim is filed, unemployedbecause he was discharged for substantial fault on his part connected with hiswork not rising to the level of misconduct. Substantial fault is defined toinclude those acts or omissions of employees over which they exercisedreasonable control and which violate reasonable requirements of the job butshall not include (1) minor infractions of rules unless such infractions arerepeated after a warning was received by the employee, (2) inadvertent mistakesmade by the employee, nor (3) failures to perform work because of insufficientskill, ability, or equipment. Upon a finding of discharge under this subsection,the individual shall be disqualified for a period of nine weeks unless, basedon findings by the Commission of aggravating or mitigating circumstances, theperiod of disqualification is lengthened or shortened within the limits set outabove. The length of the disqualification so set by the Commission shall not bedisturbed by a reviewing court except upon a finding of plain error.

(2b)      For the duration ofthe individual's unemployment beginning with the first day of the first weekduring which or after the disqualifying act occurs with respect to which weekan individual files a claim for benefits if it is determined by the Commissionthat the individual is, at the time such claim is filed, unemployed because theindividual has been discharged from employment because a license, certificate,permit, bond, or surety that is necessary for the performance of theindividual's employment and that the individual is responsible to supply hasbeen revoked, suspended, or otherwise lost to the individual, or the individual'sability to successfully apply or the individual's application therefor has beenlost or denied for a cause that was within the individual's power to control,guard against, or prevent. No showing of misconduct connected with the work orsubstantial fault connected with the work not rising to the level of misconductshall be required in order for an individual to be disqualified for benefitsunder this subdivision.

(2c)      Discharge or employer‑initiatedseparation of a severely disabled veteran, as defined in G.S. 96‑8, foracts or omissions of the veteran that the Commission determines are attributedto a disability incurred or aggravated in the line of duty during activemilitary service, or to the veteran's absence from work to obtain care and treatmentof a disability incurred or aggravated in the line of duty during activemilitary service, shall not disqualify the veteran from receiving benefitsunder the substantial fault provisions of subdivision (2a) of this section forany period of time.

(3)        For the duration ofhis unemployment beginning with the first day of the first week in which thedisqualifying act occurs if it is determined by the Commission that suchindividual has failed without good cause (i) to apply for available suitablework when so directed by the employment office of the Commission; or (ii) toaccept suitable work when offered him; or (iii) to return to his customary self‑employment(if any) when so directed by the Commission. Provided further, an otherwiseeligible individual who is attending a vocational school or training programwhich has been approved by the Commission for such individual shall not bedenied benefits because he refuses to apply for or accept suitable work duringsuch period of training.

Indetermining whether or not any work is suitable for an individual, theCommission shall consider the degree of risk involved to his health, safety,and morals, his physical fitness and prior training, his experience and priorearnings, his length of unemployment and prospects for securing local work inhis customary occupation, and the distance of the available work from hisresidence.

Notwithstandingany other provisions of this Chapter, no work shall be deemed suitable andbenefits shall not be denied under this Chapter to any otherwise eligibleindividual for refusing to accept new work under any of the followingconditions:

a.         If the positionoffered is vacant due directly to a strike, lockout, or other labor dispute;

b.         If the remuneration,hours, or other conditions of the work offered are substantially less favorableto the individual than those prevailing for similar work in the locality;

c.         If as a condition ofbeing employed the individual would be required to join a company union or toresign from or refrain from joining any bona fide labor organization;

d.         If the positionoffered is full‑time work and the individual meets the part‑timeworker requirements of G.S. 96‑13(a)(6).

(4)        For the duration ofhis unemployment beginning with the first day of the first week after thedisqualifying act occurs with respect to which week an individual files a claimfor benefits if it is determined by the Commission that:

a.         Such individual hasfailed without good cause to attend a vocational school or training programwhen so directed by the Commission;

b.         Such individual hasdiscontinued his training course without good cause; or

c.         If the individual isseparated from his training course or vocational school due to misconduct.

(5)        For any week withrespect to which the Commission finds that his total or partial unemployment iscaused by a labor dispute in active progress on or after July 1, 1961, at thefactory, establishment, or other premises at which he is or was last employedor caused after such date by a labor dispute at another place within this Statewhich is owned or operated by the same employing unit which owns or operatesthe factory, establishment, or other premises at which he is or was lastemployed and which supplies materials or services necessary to the continued andusual operation of the premises at which he is or was last employed. Provided,that an individual disqualified under the provisions of this subdivision shallcontinue to be disqualified thereunder after the labor dispute has ceased to bein active progress for such period of time as is reasonably necessary andrequired to physically resume operations in the method of operating in use atthe plant, factory, or establishment of the employing unit.

(6)        If the Commissionfinds he is customarily self‑employed and can reasonably return to self‑employment.

(6a)      For the duration ofhis unemployment beginning with the first day of the first week during which orafter the disqualifying act occurs with respect to which week an individualfiles a claim for benefits if it is determined by the Commission that theindividual is, at the time the claim is filed, unemployed because theindividual's ownership share of the employing entity was voluntarily sold and,at the time of the sale:

a.         The employing entitywas a corporation and the individual held five percent (5%) or more of theoutstanding shares of the voting stock of the corporation;

b.         The employing entitywas a partnership, limited or general, and the individual was a limited orgeneral partner; or

c.         The employing entitywas a proprietorship, and the individual was a proprietor.

(7)        For any week afterJune 30, 1939, with respect to which he shall have and assert any right tounemployment benefits under an employment security law of either the federal ora state government, other than the State of North Carolina.

(8)        For any week withrespect to which he has received any sum from the employer pursuant to an orderof any court, the National Labor Relations Board, any other lawfullyconstituted adjudicative agency, or by private agreement, consent orarbitration for loss of pay by reason of discharge. When the amount so paid bythe employer is in a lump sum and covers a period of more than one week, suchamount shall be allocated to the weeks in the period on such a pro rata basisas the Commission may adopt and if the amount so prorated to a particular weekwould, if it had been earned by the claimant during that week of unemployment,have resulted in a reduced benefit payment as provided in G.S. 96‑12, theclaimant shall be entitled to receive such reduced payment if the claimant wasotherwise eligible.

Furtherprovided, any benefits previously paid for weeks of unemployment with respectto which back pay awards, or other such compensation, are made shall constitutean overpayment of benefits and such amounts shall be deducted from the award bythe employer prior to payment to the employee, and shall be transmittedpromptly (or within 5 days) to the Commission by the employer for applicationagainst the overpayment. Provided, however, the removal of any charges madeagainst the employer as a result of such previously paid benefits shall beapplied to the calendar year in which the overpayment is transmitted to theCommission, and no attempt shall be made to relate such a credit to the periodto which the award applies. Any amount of overpayment so deducted by theemployer and not transmitted to the Commission or the failure of an employer todeduct an overpayment shall be subject to the same procedures for collection asis provided for contributions by G.S. 96‑10. It is the purpose of thisparagraph to assure the prompt collection of overpayments of U. I. benefits,and it shall be construed accordingly.

(9)        The amount ofcompensation payable to an individual for any week which begins after July 2,1977, and which begins in a period with respect to which such individual isreceiving a governmental or other pension, retirement or retired pay, annuity,or any other similar periodic payment which is based on the previous work ofsuch individual shall be reduced (but not below zero) by an amount rounded tothe nearest dollar equal to the amount of such pension, retirement or retiredpay, annuity, or other payment which is reasonably attributable to such week.

Theamount of benefits payable to an individual for any week which begins afterJuly 1, 1981, and which begins in a period with respect to which suchindividual is receiving a governmental or other pension, retirement or retiredpay, annuity, or other similar periodic payment which is based on the previouswork of such individual shall be reduced (but not below zero) by the amounts ofany such pension, retirement or retired pay, annuity, or other paymentcontributed to in part or in total by the individual's base period employers;provided, however, that the amount of all payments received by an individualunder the Railroad Retirement Act shall be deducted from the individual'sbenefit amount. Provided further, that all such reduced weekly benefit amountsshall be rounded to the nearest lower full dollar amount (if not a full dollaramount).

(10)      Any employeedisqualified for the duration of his unemployment due to the provisions of (1),(2), (2B), (3), (4), or (6A) above may have that permanent disqualificationremoved if he meets the following three conditions:

a.         Returns to work forat least five weeks and is paid cumulative wages of at least 10 times hisweekly benefit amount;

b.         Subsequently becomesunemployed through no fault of his own; and

c.         Meets theavailability requirements of the law.

Anytime certain disqualification imposed by the provisions of subsections (1),(1D), and (2A) shall be removed by serving the disqualification imposed asprovided by this subsection.

Providedfor good cause shown the Commission in its discretion may as to any permanentdisqualification provided in this Chapter reduce the disqualification period toa time certain but not less than five weeks. The maximum amount of benefits dueany individual whose permanent disqualification is changed to a time certainshall be reduced by an amount determined by multiplying the number of weeks ofdisqualification by the weekly benefit amount.

Providedfurther, any permanent disqualification pursuant to the provisions of (1), (2),(3), (4), or (6A) shall terminate two years after the effective date of thebeginning of said disqualification.

(11)      a.         Notwithstandingany other provisions of this Chapter, no otherwise eligible individual shall bedenied benefits for any week because he or she is in training approved underSection 236(a)(1) of the Trade Act of 1974, nor shall such individual be deniedbenefits by reason of leaving work to enter such training, provided the workleft is not suitable employment, or because of the application to any such weekin training of provisions in this law (or any applicable Federal unemploymentcompensation law), relating to availability for work, active search for work,or refusal to accept work.

b.         For purposes of thissubsection, the term "suitable employment" means with respect to anindividual, work of a substantially equal or higher skill level than theindividual's past adversely affected employment (as defined for purposes of theTrade Act of 1974), and wages for such work at not less than eighty percent(80%) of the individual's average weekly wage as determined for the purposes ofthe Trade Act of 1974.

(12)      Notwithstanding anyother provision of this Chapter, no otherwise eligible individual shall bedenied benefits for any weeks if it is determined by the Commission that suchindividual is, at the time such claim is filed, unemployed because he left worksolely as a result of a lack of work caused by the bankruptcy of his employer.  (Ex. Sess. 1936, c. 1, s. 5;1937, c. 448, ss. 2, 3; 1939, c. 52, s. 1; 1941, c. 108, ss. 3, 4; 1943, c.377, ss. 7, 8; 1945, c. 522, s. 29; 1947, c. 598, s. 10; c. 881, ss. 1, 2;1949, c. 424, ss. 23‑25; 1951, c. 332, s. 14; 1955, c. 385, ss. 7, 8;1961, c. 454, s. 20; 1965, c. 795, s. 19; 1969, c. 575, s. 12; 1971, c. 673, s.29; 1977, c. 26; 1981, c. 160, s. 26; c. 593; 1981 (Reg. Sess., 1982), c. 1178,s. 15; 1983, c. 585, s. 18; c. 625, ss. 6, 8; 1985, c. 552, ss. 12, 14‑17;1987 (Reg. Sess., 1988), c. 999, ss. 4, 5; 1989, c. 583, ss. 7‑10, 15; c.666; c. 707, s. 5; 1991, c. 219, s. 1; 1993, c. 122, s. 3; c. 343, ss. 2, 3;1997‑456, s. 27; 1998‑212, s. 12.27A(p); 1999‑196, s. 4; 2001‑251,s. 2; 2003‑220, ss. 1, 3, 6; 2009‑101, ss. 2, 3; 2009‑301, s.3; 2009‑506, s. 3.)