§ 1329. Collection of unpaid contributions; suit

(a)(1) If any employer fails to make, when due, any contributions or payments required of him or her under this chapter, the obligation shall carry interest at the rate of:

(A) one percent per month from due date if the due date is prior to July 31, 1983;

(B) two and one-half percent per month from due date if the due date is subsequent to July 31, 1983 and on or prior to July 31, 1987;

(C) one and one-half percent per month from due date if the due date is subsequent to July 31, 1987.

(2) It shall be the duty of the Commissioner to collect the overdue obligations and interest. Interest so collected shall be paid into the Contingent Fund provided in section 1365 of this title. Provided, that if an employer has paid such contributions or payments timely to another state through error, the Commissioner may waive such interest. Provided further, that the Commissioner may waive all or a portion of such interest in any case in which, in the Commissioner's determination, the untimeliness of the payment was not caused by fault, neglect, or bad faith on the part of the employer.

(b) In addition to other remedies and proceedings authorized by this chapter, a civil action in the name of the Commissioner may be maintained and the remedies available in such action, including attachment and trustee process, shall be available to the Commissioner for the collection of contributions, interest, and penalties under this chapter.

(c) An employer failing, for any two calendar quarters during the preceding 20 calendar quarters, to make return or to pay contributions required under this chapter, and who has not ceased to be an employer as provided in section 1323 of this title, may be required by the Commissioner to furnish a good and sufficient bond conditioned upon the payment of such delinquent contributions, together with interest and penalty from the due date thereof, and containing such terms as may be determined by the Commissioner. An employer who fails to furnish such bond when required by the Commissioner may be enjoined from employing individuals in employment, as defined by this chapter, upon complaint of the Commissioner in the Superior Court of any county in which the employer is doing business, until the contributions due, together with interest and penalty, are paid to the Commissioner.

(d) In the event of an employer's dissolution, adjudicated insolvency, adjudicated bankruptcy, receivership, assignment for benefit of creditors, judicially confirmed extension proposals or composition, claims or contributions due under this chapter and for interest thereon then or thereafter due under this chapter shall be a lien upon such employer's assets and shall have priority over all other claims except expenses of administration, taxes, wage claims, and prior liens valid under the laws of this State.

(e) No action shall be commenced for the collection of contributions, interest and penalties under this chapter more than three years after the date on which the contributions became due and payable, unless prior to the expiration of the three-year period:

(1) an assessment proceeding has been instituted under the provisions of section 1330 of this title;

(2) a civil action has been instituted under subsection (b) of this section; or

(3) a lien has been created under section 1336 of this title.

(f) The provisions of subsection (e) of this section shall not apply where an employer by willful failure or refusal to file a report with the Commissioner or to include in any report all wages which he has paid, or otherwise has attempted to avoid or reduce liability for the payment of contributions. (Amended 1959, No. 329 (Adj. Sess.), § 22, eff. March 1, 1961; 1961, No. 210, § 15, eff. July 11, 1961; 1965, No. 27, eff. April 14, 1965; 1967, No. 61; 1969, No. 41; 1983, No. 16, § 6; 1985, No. 121 (Adj. Sess.), § 1, eff. April 16, 1986; 1987, No. 100, § 2; 2017, No. 74, § 50.)