fact that it is performed on or in connection with an American vessel

(1) owned by or bareboat chartered to the United States and

(2) whose business is conducted by a general agent of the Secretary of Commerce.

For purposes of this chapter, each such general agent shall be considered a legal entity in his capacity as such general agent, separate and distinct from his identity as a person employing individuals on his own account, and the officers and members of the crew of such an American vessel whose business is conducted by a general agent of the Secretary of Commerce shall be deemed to be performing services for such general agent rather than the United States. Each such general agent who is in his capacity as such is an employer within the meaning of subsection (a) shall be subject to all the requirements imposed upon an employer under this chapter with respect to service which constitutes employment by reason of this subsection. (0) Special rule in case of certain agricultural work

For purposes of this chapter, in the case of any individual who is furnished by a crew leader to perform agricultural labor for any other person and who is not treated as an employee of such crew leader under paragraph (1)—

(A) such other person and not the crew leader shall be treated as the employer of such individual; and

(B) such other person shall be treated as having paid cash remuneration to such individual in an amount equal to the amount of cash remuneration paid to such individual by the crew leader (either on his behalf or on behalf of such other person) for the agricultural labor performed for such other person.

(3) Crew leader

For purposes of this subsection, the term "crew leader" means an individual who

(A) furnishes individuals to perform agricultural labor for any other person,

(B) pays (either on his behalf or on behalf of such other person) the individuals so fur

nished by him for the agricultural labor performed by them, and

(C) has not entered into a written agreement with such other person under which such individual is designated as an employee of such other person.

(p) Concurrent employment by two or more employers

For purposes of sections 3301, 3302, and 3306(b)(1), if two or more related corporations concurrently employ the same individual and compensate such individual through a common paymaster which is one of such corporations, each such corporation shall be considered to have paid as remuneration to such individual only the amounts actually disbursed by it to such individual and shall not be considered to have paid as remuneration to such individual amounts actually disbursed to such individual by another of such corporations.

(q) Full time student

For purposes of subsection (c)(20), an individual shall be treated as a full time student for any period

(1) during which the individual is enrolled as a full time student at an educational institution, or

(2) which is between academic years or terms if

(A) the individual was enrolled as a full time student at an educational institution for the immediately preceding academic year or term, and

(B) there is a reasonable assurance that the individual will be so enrolled for the immediately succeeding academic year or term after the period described in subparagraph (A).

(Aug. 16, 1954, ch. 736, 68A Stat. 447; Sept. 1, 1954, ch. 1212, §§ 1, 4(c), 68 Stat. 1130, 1135; June 25, 1959, Pub. L. 86-70, § 22(a), 73 Stat. 146; July 12, 1960, Pub. L. 86-624, § 18(d), 74 Stat. 417; Sept. 13, 1960, Pub. L. 86-778, title V, §§ 531(c), 532-534, 543(a), 74 Stat. 983, 984, 986; Sept. 21, 1961, Pub. L. 87-256, § 110(f), 75 Stat. 537; Oct. 10, 1962, Pub. L. 87-792, § 7(k), 76 Stat. 830; Oct. 13, 1964, Pub. L. 88-650, § 4(c), 78 Stat. 1077; Jan. 2, 1968, Pub. L. 90-248, title V, § 504(b), 81 Stat. 935; Aug. 7, 1969, Pub. L. 91-53, § 1, 83 Stat. 91; Aug. 10, 1970, Pub. L. 91-373, title I, §§ 101(a), 102(a), 103(a), 105(a), (b), 106(a), title III, § 302, 84 Stat. 696, 697, 699, 700, 713; Oct. 4, 1976, Pub. L. 94-455, title XIX, §§ 1903(a)(16), 1906(b)(13)(C), 90 Stat. 1810, 1834; Oct. 20, 1976, Pub. L. 94-566, title I, §§ 111 (a), (b), 112(a), 113(a), 114(a), 116(b), title II, § 211(a), 90 Stat. 2667-2669, 2672, 2676; Dec. 20, 1977, Pub. L. 95-216, title III, § 314(b), 91 Stat. 1536; Oct. 17, 1978, Pub. L. 95-472, § 3(a), 92 Stat. 1333; Nov. 6, 1978, Pub. L. 95-600, title I, § 164(b)(2), 92 Stat. 2813; Oct. 10, 1979, Pub. L. 96-84, § 4(a), (b), 93 Stat. 654; Apr. 1, 1980, Pub. L. 96-222, title I, § 101(a)(10)(B)(ii), 94 Stat. 201; Dec. 5, 1980, Pub. L. 96-499, title XI, § 1141(b), 94 Stat. 2694; Aug. 13, 1981, Pub. L. 97-34, title I, § 124(e)(2)(A), title VIII, § 822(a), 95 Stat. 200, 351; Sept. 3, 1982, Pub. L. 97-248,

title II, §§ 271(a), 276(a)(1), (b)(1), (2), 277, 96 Stat. 554, 558, 559.)

REFERENCES IN TEXT

Subchapter C of chapter 9 of the Internal Revenue Code of 1939, referred to in subsec. (c), was comprised of sections 1600 to 1611 of former Title 26, Internal Revenue Code. Subchapter C of chapter 9 was repealed by section 7851(a)(3) of this title. For table of comparisons of the 1939 Code to the 1954 Code, see table I preceding section 1 of this title. See, also, section 7851(e) of this title for provision that references in the 1954 Code to a provision of the 1939 Code, not then applicable, shall be deemed a reference to the corresponding provision of the 1954 Code, which is then applicable.

Sections 214(c) and 101(a)(15)(H) of the Immigration and Nationality Act, referred to in subsec. (c)(1)(B), are classified to sections 1184(c) and 1101(a)(15)(H), respectively, of Title 8, Aliens and Nationality.

Section 903(c)(2) of the Social Security Act, referred to in subsec. (f)(2), is classified to section 1103(c)(2) of Title 42, The Public Health and Welfare.

The Farm Labor Contractor Registration Act of 1963, referred to in subsec. (o)(1)(A)(i), is Pub. L. 88-582, Sept. 7, 1964, 78 Stat. 920, as amended, which was classified generally to chapter 52 (§ 2041 et seq.) of Title 7, Agriculture, and was repealed by Pub. L. 97-470, title V, § 523, Jan. 14, 1983, 96 Stat. 2600. See section 1801 et seq. of Title 29, Labor.

AMENDMENTS

1982-Subsec. (b)(1). Pub. L. 97-248, § 271(a), substituted "$7,000" for "$6,000" wherever appearing.

Subsec. (c)(1)(B). Pub. L. 97-248, § 277, substituted "1984" for "1982".

Subsec. (c)(10)(C). Pub. L. 97-248, § 276(a)(1), struck out "under the age of 22" following "service performed by an individual”.

Subsec. (c)(20). Pub. L. 97-248, § 276(b)(1), added par. (20).

Subsec. (q). Pub. L. 97-248, § 276(b)(2), added subsec. (q).

1981-Subsec. (b)(13). Pub. L. 97-34, § 124(e)(2)(A), substituted “section 127 or 129" for "section 127”. Subsec. (c)(18), (19). Pub. L. 97-34, § 822(a), added par. (18), and redesignated former par. (18) as (19). 1980-Subsec.

subpar. (D).

(b)(5)(D). Pub. L. 96-222 added

Subsec. (b)(6). Pub. L. 96-499 deleted "(or the corresponding section of prior law)" following "section 3101" in subpar. (A) and inserted "with respect to remuneration paid to an employee for domestic service in a private home of the employer or for agricultural labor" following subpar. (B).

1979 Subsec. (c)(1)(A). Pub. L. 96-84, § 4(b), substituted "including labor performed by an alien" for "not taking into account labor performed before January 1, 1980, by an alien" in the parenthetical matter of cls. (i) and (ii).

Subsec. (c)(1)(B). Pub. L. 96-84, § 4(a), substituted "January 1, 1982” for “January 1, 1980”.

1978-Subsec. (b)(12). Pub. L. 95-472 added par. (12). Subsec. (b)(13). Pub. L. 95-600 added par. (13). 1977-Subsec. (p). Pub. L. 95-216 added subsec. (p). 1976-Subsec. (a). Pub. L. 94-566, § 114(a), redesignated existing provisions, consisting of an introductory phrase and pars. (1) and (2), as par. (1), consisting of an introductory phrase and subpars. (A) and (B), added provisions following subpar. (B) as so redesignated, and added pars. (2), (3), and (4).

Subsec. (b)(1). Pub. L. 94-566, § 211(a), substituted "$6,000" for "$4,200" wherever appearing.

Subsec. (b)(11). Pub. L. 94-566, § 111(a), added par. (11).

Subsec. (c). Pub. L. 94-566, § 116(b)(1), struck out "or in the Virgin Islands" following "agreement relating to unemployment compensation" in the parenthetical provisions of cl. (B) preceding par. (1).

added

Subsec. (c)(1). Pub. L. 94-566, § 111(b), "unless" following "subsection (k))" and added subpars. (A) and (B).

Subsec. (c)(2). Pub. L. 94-566, § 113(a), inserted "unless performed for a person who paid cash remuneration of $1,000 or more to individuals employed in such domestic service in any calendar quarter in the calendar year or the preceding calendar year" following "sorority".

Subsec. (c)(9). Pub. L. 94-455, § 1903(a)(16)(A), struck out "52 Stat. 1094, 1095;" before "45 U.S.C. 351".

Subsec. (c)(12)(B). Pub. L. 94-455, § 1906(b)(13)(C), substituted "to the Secretary of the Treasury" for "to the Secretary".

Subsec. (c)(18). Pub. L. 94-455, § 1903(a)(16)(B), inserted "(8 U.S.C. 1101(a)(15)(F) or (J))" following "Immigration and Nationality Act, as amended".

Subsec. (f). Pub. L. 94-455, § 1903(a)(16)(C), struck out "49 Stat. 640; 52 Stat. 1104, 1105;" before "42 U.S.C. 1104".

Subsec. (j). Pub. L. 94-566, § 116(b)(2), inserted references to the Virgin Islands in pars. (1) and (2) and in provisions following par. (3).

Subsec. (n). Pub. L. 94-455, § 1903(a)(16)(D), struck out "on or after July 1, 1953," following "service performed".

Subsec. (o). Pub. L. 94-566, § 112(a), added subsec. (0).

1970-Subsec. (a). Pub. L. 91-373, § 101(a), expanded the definition of “employer" by reducing from 4 to 1 the number of individuals which a person had to employ on each of some 20 days during the calendar year or the preceding calendar year in order to qualify as an employer and added provisions making a person an employer who paid wages of $1,500 or more during any calendar quarter in the calendar year or the preceding calendar year.

Subsec. (b)(1). Pub. L. 91-373, § 302, substituted "$4,200" for "$3,000".

Subsec. (c). Pub. L. 91-373, § 105(a), inserted in the material preceding par. (1) a reference to service performed after 1971 outside the United States by a citizen of the United States as an employee of an American employer.

Subsec. (c)(10). Pub. L. 91-373, § 106(a), designated existing provisions of subpar. (B) as cl. (i) thereof and added cl. (ii) of subpar. (B) and subpars. (C) and (D). Subsec. (i). Pub. L. 91-373, § 102(a), substituted the meaning assigned the term "employee" by section 3121(d) of this title, except that subpars. (B) and (C) of par. (3) were not applicable, as the meaning of "employee" for purposes of this chapter for a definition of "employee" as persons including officers of corporations but not including independent contractors under common law rules or persons not employees under such rules.

Subsec. (j)(3). Pub. L. 91-373, § 105(b), added definition of "American employer".

Subsec. (k). Pub. L. 91-373, § 103(a), substituted as the definition of the term "agricultural labor" a simple reference to that term as defined, with a minor exception, in section 3121 of this title for a full definition of the term, the result of which, in view of the substance of section 3121, excluded from the definition of agricultural labor services performed in connection with the production or harvesting of maple sirup, maple sugar, or mushrooms, or the hatching of poultry unless performed on a farm, and provided a new series of tests to determine whether the handling, planting, drying, packing, packaging, processing, freezing, grading, storing, or delivering agricultural or horticultural commodities constitute agricultural labor. 1969-Subsec. (a). Pub. L. 90-53 made status of employer depend also on employment during preceding taxable year.

1968-Subsec. (b)(10). Pub. L. 90-248 added par. (10). 1964-Subsec. (b)(9). Pub. L. 88-650 added par. (9).

1962-Subsec. (b)(5). Pub. L. 87-792 substituted "is a plan described in section 403(a)" for "meets the requirements of section 401(a)(3), (4), (5), and (6)" in subpar. (B), and added subpar. (C).

1961-Subsec. (c)(18). Pub. L. 87-256 added par. (18). 1960-Subsec. (c). Pub. L. 86-778, § 532(a), included employment on or in connection with an American aircraft within cl. (B) of the opening provisions.

Subsec. (c)(4). Pub. L. 86-778, § 532(b), excluded service performed on or in connection with an aircraft that is not an American aircraft.

Subsec. (c)(6). Pub. L. 86-778, § 531(c), substituted "wholly or partially owned" for "wholly owned" in cl. (A), and inserted words "which specifically refers to such section (or the corresponding section of prior law) in granting such exemption" in cl. (B).

Subsec. (c)(8). Pub. L. 86-778, § 533, substituted "service performed in the employ of a religious, charitable, educational, or other organization described in section 501(c)(3) which is exempt from income tax under section 501(a)" for "service performed in the employ of a corporation, community chest, fund, or foundation, organized and operated exclusively for religious, charitable, scientific, testing for public safety, literary, or educational purposes, or for the prevention of cruelty to children or animals, no part of the net earnings of which inures to the benefit of any private shareholder or individual, and no substantial part of the activities of which is carrying on propaganda, or otherwise attempting, to influence legislation."

Subsec. (c)(10). Pub. L. 86–778, § 534, eliminated provisions which excepted from the definition of the term "employment" service in connection with the collection of dues or premiums for a fraternal beneficiary society, order, or association which is preformed away from the home office or is ritualistic service in connection with any such society, order, or association, service performed in the employ of an agricultural or horticultural organization described in section 501(c)(5) of this title, service performed in the employ of a voluntary employees' beneficiary association providing for the payment of life, sick, accident, or other benefits to members or their dependents or designated beneficiaries, and service performed in the employ of a school, college, or university, not exempt from income tax under section 501(a) of this title if such service is performed by a student who is enrolled and regularly attending classes.

Subsec. (j). Pub. L. 86-778, § 543(a), included the Commonwealth of Puerto Rico and eliminated the word "Hawaii" from the definition of "State", defined the term "United States", and inserted provisions requiring an individual who is a citizen of the Commonwealth of Puerto Rico (but not otherwise a citizen of the United States) to be considered for purposes of this section, as a citizen of the United States.

Pub. L. 86-624 eliminated "Hawaii, and" preceding "the District of Columbia".

Subsec. (m). Pub. L. 86-778, § 532(c), included aircraft in the catchline and defined the term "American aircraft".

1959-Subsec. (j). Pub. L. 86-70 eliminated “Alaska," preceding "Hawaii".

1954-Subsec. (a). Act Sept. 1, 1954, changed "definition of employer from "eight or more" to "4 or more". Subsec. (1). Act Sept. 1, 1954, repealed subsec. (1) which related to certain employees of Bonneville Power Administrator.

EFFECTIVE DATE OF 1982 Amendments Amendment of subsec. (b)(1) by Pub. L. 97-248 applicable to remuneration paid after Dec. 31, 1982, see section 271(b)(1) of Pub. L. 97-248, set out as a note under section 3301 of this title.

Section 276(a)(2) of Pub. L. 97-248 provided that: "The amendment made by paragraph (1) [amending subsec. (c)(10)(C) of this section] shall apply with respect to services performed after the date of the enactment of this Act [Sept. 3, 1982]."

Section 276(b)(3) of Pub. L. 97-248 provided that: "The amendments made by this subsection [enacting

subsecs. (c)(20) and (q) of this section] shall apply to remuneration paid after December 31, 1982, and before January 1, 1984."

EFFECTIVE AND TERMINATION DATES OF 1981
AMENDMENT

Section 822(b) of Pub. L. 97-34, as amended by Pub. L. 97-362, title II, § 203, Oct. 25, 1982, 96 Stat. 1733, provided that: "The amendments made by subsection (a) [enacting subsec. (c)(18) of this section] shall be effective with respect to remuneration paid after December 31, 1980, and before January 1, 1983."

Amendment by section 124(e)(2)(A) of Pub. L. 97-34 applicable to remuneration paid after Dec. 31, 1981, see section 124(f) of Pub. L. 97-34, set out as an Effective Date of 1981 Amendment note under section 44A of this title.

EFFECTIVE DATE OF 1980 AmendmenTS

For effective date of amendment by Pub. L. 96-499, see section 1141(c) of Pub. L. 96-499, set out as a note under section 3121 of this title.

Amendment by Pub. L. 96-222 applicable to payments made on or after Jan. 1, 1979, see section 101(b)(1)(E) of Pub. L. 96-222, set out as a note under section 3121 of this title.

EFFECTIVE DATE OF 1979 AmendmENT

Section 4(c) of Pub. L. 96-84 provided that: "The amendments made by this section [amending subsec. (c)(1) of this section] shall apply to remuneration paid after December 31, 1979, for services performed after such date."

EFFECTIVE Date of 1978 AMENDMENTS

Amendment of subsec. (b)(11) to (13) of this section by section 164(b)(2) of Pub. L. 95-600 applicable with respect to taxable years beginning after Dec. 31, 1978, see section 164(d) of Pub. L. 95-600, set out as an Effective Date note under section 127 of this title.

Amendment of section by Pub. L. 95-472 applicable with respect to taxable years beginning after Dec. 31, 1976, see section 3(d) of Pub. L. 95-472, set out as a note under section 3121 of this title.

EFFECTIVE DATE OF 1977 AmendmENT Enactment of subsec. (p) of this section applicable with respect to wages paid after Dec. 31, 1978, see section 314(c) of Pub. L. 95-216, set out as a note under section 3121 of this title.

EFFECTIVE DATE OF 1976 AMENDMENT Section 111(c) of Pub. L. 95-566 provided that: "The amendments made by this section [adding subsecs. (b)(11) and (c)(1)(A) and (B) of this section] shall apply with respect to remuneration paid after December 31, 1977, for services performed after such date." Section 112(b) of Pub. L. 94-566 provided that: "The amendment made by subsection (a) [adding subsec. (o) of this section] shall apply with respect to remuneration paid after December 31, 1977, for services performed after such date."

Section 113(b) of Pub. L. 94-566 provided that: "The amendment made by subsection (a) [amending subsec. (c)(2) of this section] shall apply with respect to remuneration paid after December 31, 1977, for services performed after such date."

Section 114(c) of Pub. L. 94-566 provided that: "The amendments made by this section [amending subsec. (a) of this section and section 6157(a) of this title] shall apply with respect to remuneration paid after December 31, 1977, for services performed after such date."

Amendment of subsecs. (c) and (j) by Pub. L. 94-566 applicable with respect to remuneration paid after Dec. 31 of the year in which the Secretary of Labor approves for the first time an unemployment compen

sation law submitted to him by the Virgin Islands for approval, for services performed after such Dec. 31, see section 116(f)(2) of Pub. L. 94-566, set out as a note under section 3304 of this title.

Section 211(d)(1) of Pub. L. 94-566 provided that: "The amendment made by subsection (a) [amending subsec. (b)(1) of this section] shall apply to remuneration paid after December 31, 1977.”

EFFECTIVE DAte of 1970 AMENDMENT

Section 101(c)(1) of Pub. L. 91-373 provided that: "The amendments made by subsections (a) and (b)(1) [amending subsec. (a) of this section and section 6157(a)(1) of this title] shall apply with respect to calendar years beginning after December 31, 1971."

Section 102(c) of Pub. L. 91-373 provided that: “The amendment made by subsection (a) [amending subsec. (i) of this section] shall apply with respect to remuneration paid after December 31, 1971, for services performed after such date."

Section 103(b) of Pub. L. 91-373 provided that: "The amendment made by subsection (a) [amending subsec. (k) of this section] shall apply with respect to remuneration paid after December 31, 1971, for services performed after such date."

Section 105(c) of Pub. L. 91-373 provided that: "The amendments made by this section [amending the provisions of subsec. (c) of this section preceding par. (1) thereof and adding subsec. (j)(3) of this section] shall apply with respect to service performed after December 31, 1971."

Section 106(b) of Pub. L. 91-373 provided that: "Subsection (a) [adding subsec. (c)(10)(B)(ii), (C), (D) of this section] shall apply with respect to remuneration paid after December 31, 1969."

Section 302 of Pub. L. 91-373 provided in part that the amendment of subsec. (b)(1) by section 302 of Pub. L. 91-373 is effective with respect to remuneration paid after Dec. 31, 1971.

EFFECTIVE DATE OF 1969 AMENDMENT Amendment by Pub. L. 91-53 applicable with respect to calendar years beginning after Dec. 31, 1969, see section 4(a) of Pub. L. 91-53, set out as an Effective Date note under section 6157 of this title.

EFFECTIVE Date of 1968 AMENDMENT

Subsec. (b)(10) applicable with respect to renumeration paid after Jan. 2, 1968, see section 504(d) of Pub. L. 90-248, set out as a note under section 3121 of this title.

EFFECTIVE DATE OF 1964 AMENDMENT

Subsec. (b)(9) applicable with respect to remuneration paid on or after the first day of the first calendar month which begins more than ten days after Oct. 13, 1964, see section 4(d) of Pub. L. 88-650, set out as a note under section 3121 of this title.

EFFECTIVE DATE OF 1962 AMENDMENT Amendment by Pub. L. 87-792 applicable to taxable years beginning after Dec. 31, 1962, see section 8 of Pub. L. 87-792, set out as a note under section 37 of this title.

EFFECTIVE DATE OF 1961 AMENDMENT

Amendment by Pub. L. 87-256 applicable with respect to service performed after Dec. 31, 1961, see section 110(h)(3) of Pub. L. 87-256, set out as a note under section 3121 of this title.

EFFECTIVE Date of 1960 Amendments Amendment of subsecs. (c), (c)(4), (6), (8), (10), and (m) by Pub. L. 86-778 applicable with respect to remuneration paid after 1961 for services performed after 1961, see section 535 of Pub. L. 86-778, set out as a note under section 3305 of this title.

Section 543(a) of Pub. L. 86-778 provided in part that the amendment of subsec. (j) by Pub. L. 86-778

shall be effective with respect to remuneration paid after Dec. 31, 1960, for services performed after such date.

Amendment of subsec. (j) by Pub. L. 86-624 effective on August 21, 1959, see section 18(k) of Pub. L. 86-624, set out as a note under section 3121 of this title.

EFFECTIVE DATE OF 1959 AMENDMENT

Amendment by Pub. L. 86-70 effective Jan. 3, 1959, see section 22(i) of Pub. L. 86-70, set out as a note under section 3121 of this title.

Effective Date of 1954 AMENDMENT

Section 1 of act Sept. 1, 1954, provided in part that the amendment of subsec. (a) shall take effect with respect to services performed after Dec. 31, 1955.

Section 4(c) of act Sept. 1, 1954, provided in part that the repeal of subsec. (1) shall be effective with respect to services performed after Dec. 31, 1954.

APPLICABILITY TO FEDERAL LAND BANKS, FEDERAL INTERMEDIATE CREDIT BANKS, AND BANKS FOR COOPERATIVES

Applicability of subsec. (c)(6) of this section to Federal land banks, Federal intermediate credit banks, and banks for cooperatives, see section 531(g) of Pub. L. 86-778, set out as a note under section 3305 of this title.

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 51, 3301, 3305, 3309, 6157 of this title.

§ 3307. Deductions as constructive payments

Whenever under this chapter or any act of Congress, or under the law of any State, an employer is required or permitted to deduct any amount from the remuneration of an employee and to pay the amount deducted to the United States, a State, or any political subdivision thereof, then for purposes of this chapter the amount so deducted shall be considered to have been paid to the employee at the time of such deduction.

(Aug. 16, 1954, ch. 736, 68A Stat. 454.)

§ 3308. Instrumentalities of the United States

Notwithstanding any other provision of law (whether enacted before or after the enactment of this section) which grants to any instrumentality of the United States an exemption from taxation, such instrumentality shall not be exempt from the tax imposed by section 3301 unless such other provision of law grants a specific exemption, by reference to section 3301 (or the corresponding section of prior law), from the tax imposed by such section. (Added Pub. L. 86-778, title V, § 531(d)(1), Sept. 13, 1960, 74 Stat. 983.)

REFERENCES IN TEXT

Enacted before or after the enactment of this section, referred to in the text, means enacted before or after Sept. 13, 1960, the date of approval of Pub. L. 86-778.

PRIOR PROVISIONS

A prior section 3309 was renumbered section 3311.

EFFECTIVE DATE

Section applicable with respect to remuneration paid after 1961 for services performed after 1961, see sec

tion 535 of Pub. L. 86-778, set out as an Effective Date of 1960 Amendment note under section 3305 of this title.

APPLICABILITY TO FEDERAL LAND BANKS, FEDERAL INTERMEDIATE CREDIT BANKS, and Banks For COOPERATIVES

Applicability of this section to Federal land banks, Federal intermediate credit banks, and banks for cooperatives, see section 531(g) of Pub. L. 86-778, set out as a note under section 3305 of this title.

§ 3309. State law coverage of services performed for nonprofit organizations or governmental entities (a) State law requirements

For purposes of section 3304(a)(6)—

(1) except as otherwise provided in subsections (b) and (c), the services to which this paragraph applies are—

(A) service excluded from the term “employment" solely by reason of paragraph (8) of section 3306(c), and

(B) service excluded from the term “employment" solely by reason of paragraph (7) of section 3306(c); and

(2) the State law shall provide that a governmental entity or any other organization (or group of governmental entities or other organizations) which, but for the requirements of this paragraph, would be liable for contributions with respect to service to which paragraph (1) applies may elect, for such minimum period and at such time as may be provided by State law, to pay (in lieu of such contributions) into the State unemployment fund amounts equal to the amounts of compensation attributable under the State law to such service. The State law may provide safeguards to ensure that governmental entities or other organizations so electing will make the payments required under such elections. (b) Section not to apply to certain service

This section shall not apply to service performed

(1) in the employ of (A) a church or convention or association of churches, or (B) an organization which is operated primarily for religious purposes and which is operated, supervised, controlled, or principally supported by a church or convention or association of churches;

(2) by a duly ordained, commissioned, or licensed minister of a church in the exercise of his ministry or by a member of a religious order in the exercise of duties required by such order;

(3) in the employ of a governmental entity referred to in paragraph (7) of section 3306(c), if such service is performed by an individual in the exercise of his duties

(A) as an elected official;

(B) as a member of a legislative body, or a member of the judiciary, of a State or political subdivision thereof;

(C) as a member of the State National Guard or Air National Guard;

(D) as an employee serving on a temporary basis in case of fire, storm, snow, earthquake, flood, or similar emergency; or

(E) in a position which, under or pursuant to the State law, is designated as (i) a major

nontenured policymaking or advisory position, or (ii) a policymaking or advisory position the performance of the duties of which ordinarily does not require more than 8 hours per week;

(4) in a facility conducted for the purpose of carrying out a program of—

(A) rehabilitation for individuals whose earning capacity is impaired by age or physical or mental deficiency or injury, or

(B) providing remunerative work for individuals who because of their impaired physical or mental capacity cannot be readily absorbed in the competitive labor market,

by an individual receiving such rehabilitation or remunerative work;

(5) as part of an unemployment work-relief or work-training program assisted or financed in whole or in part by any Federal agency or an agency of a State or political subdivision thereof, by an individual receiving such work relief or work training; and

(6) by an inmate of a custodial or penal institution.

(c) Nonprofit organizations must employ 4 or more

This section shall not apply to service performed during any calendar year in the employ of any organization unless on each of some 20 days during such calendar year or the preceding calendar year, each day being in a different calendar week, the total number of individuals who were employed by such organization in employment (determined without regard to section 3306(c)(8) and by excluding service to which this section does not apply by reason of subsection (b)) for some portion of the day (whether or not at the same moment of time) was 4 or more.

(Added Pub. L. 91-373, title I, § 104(b)(1), Aug. 10, 1970, 84 Stat. 697, and amended Pub. L. 94-566, title I, § 115(a), (b), (c)(2), (3), title V, § 506(a), Oct. 20, 1976, 90 Stat. 2670, 2671, 2687; Pub. L. 95-19, title III, § 302(b), Apr. 12, 1977, 91 Stat. 44.)

PRIOR PROVISIONS

A prior section 3309 was renumbered section 3311.

AMENDMENTS

1977-Subsec. (a)(2). Pub. L. 95-19 substituted "(or group of governmental entities or other organizations)" for "(or group of organizations)".

1976-Pub. L. 94-566, § 115(c)(3), substituted "services performed for nonprofit organizations or governmental entities" for "certain services performed for nonprofit organizations and for state hospitals and institutions of higher education" in the section catchline.

Subsec. (a)(1)(B). Pub. L. 94-566, § 115(a), struck out "performed in the employ of the State, or any instrumentality of the State or of the State and one or more other States, for a hospital or institution of higher education located in the State, if such service is" following "service".

Subsec. (a)(2). Pub. L. 94-566, § 506(a), substituted "a governmental entity or any other organization” for "an organization", "paragraph (1)" for "paragraph (1)(A)", and "that governmental entities or other organizations" for "that organizations".

Subsec. (b)(3). Pub. L. 94-566, § 115(b)(1), substituted reference to services performed in the employ of a