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Unemployment Insurance Appeal Board Has Jurisdiction Over Employment Within Federal Enclaves (Here Navy Ships at Sea)

The Third Department determined that the Unemployment Insurance Appeal Board (Board) had jurisdiction over employment within so-called federal enclaves.  Here claimant was employed by a company which sold cars to Navy personnel stationed on ships at sea.  The company, Priority Assist, argued the Board did not have jurisdiction over the employment at issue.  The court relied on a US Supreme Court case which indicated the exclusive jurisdiction of the United States could be modified by statute, and the federal statute which state employment on federal propery was not exempt from state unemployment compensation law:

Priority Assist initially asserts that claimant and others similarly situated performed work in federal enclaves — i.e., lands purchased by the federal government, with state consent, “for the Erection of Forts, Magazines, Arsenals, dock-Yards, and other needful Buildings” — and that the Board accordingly lacked jurisdiction to hold it liable for unemployment insurance contributions (US Const, art I, § 8, cl 17). Even assuming that United States Navy vessels that have never been part of a state constitute federal enclaves, “exclusive jurisdiction over [such an] area . . . remains with the United States, except as modified by statute” (Howard v Commissioners of Sinking Fund of City of Louisville, 344 US 624, 627 [1953] [emphasis added]). Inasmuch as federal law provides that “[n]o person shall be relieved from compliance with a [s]tate unemployment compensation law on the ground that services were performed on land or premises owned, held, or possessed by the United States,” the Board retained jurisdiction here (26 USC § 3305 [d]). Matter of Pickton (Priority Assist Inc.–Commissioner of Labor), 2015 NY Slip Op 03437, 3rd Dept 4-23-15

 

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