• State Anti-SUTA Dumping Legislation and Enforcement Proceedings on the Rise
  • October 12, 2005 | Authors: John Scalia; Craig A. Etter
  • Law Firm: Greenberg Traurig, LLP - McLean Office
  • Spurred by the passage of the August 2004, SUTA (State Unemployment Tax Act) Dumping Prevention Act (hereinafter "the Federal SUTA Dumping Law"), P.L. 108-295 (August 9, 2004), and subsequent funding from the United States Department of Labor ("DOL"), many States have begun introducing significantly more stringent legislation and enforcement procedures to combat employers' efforts to reduce State unemployment taxes. "SUTA dumping" is a term used to describe various techniques used by some employers to obtain reduced State unemployment tax rates by "hiding" high rates of unemployment claims.