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Department of Labor

Unemployment Insurance

Introduction & Background

Important Highlights

Contributions

Federal Unemployment Tax Act (FUTA)

Experience Rating

Reimbursing Employers

Records, Reports, and Audits

Independent Contractors

Localized and Non-Localized Employment

Reciprocal Coverage

Combined Wage Claims

Interstate Claims

Benefit Payment Program

Employment Service

Forms

Glossary

FAQ'S

Localized and Non-localized Employment


The definitions of "employment" are essentially uniform in state unemployment compensation laws. The objective is to cover under one state law all the service performed for one employer by an individual, wherever it is performed. The following guidelines for applying the coverage provisions are offered.

First, it is necessary to determine whether the service is entirely localized in any state. Only if the service is not localized in any state is any other test necessary. If the service is not localized, it is necessary to determine in what state the individual's base of operations is and whether he performs any service in that state. If he has no base of operations, or if he performs no service in the state in which his base of operations is located, then it is necessary to look to the state from which his service is directed or controlled. It is only when coverage is not determined by any of these tests that residence becomes a factor.