A. The term "employment" shall include an individual's entire service, performed within or both within and without this Commonwealth if:

1. The service is localized in this Commonwealth; or

2. The service is not localized in any state but some of the service is performed in this Commonwealth and (i) the base of operations, or, if there is no base of operations, then the place from which such service is directed or controlled, is in this Commonwealth; or (ii) the base of operations or place from which such service is directed or controlled is not in any state in which some part of the service is performed, but the individual's residence is in this Commonwealth.

B. Services performed within this Commonwealth and not covered under subsection A of this section shall be deemed to be employment subject to this title if taxes are not required and paid with respect to such services under an unemployment compensation law of any other state or of the federal government.

C. 1. Services not covered under subsection A of this section, and performed entirely without this Commonwealth, with respect to no part of which taxes are required and paid under an unemployment compensation law of any other state or of the federal government, shall be deemed to be employment subject to this title if (i) the individual performing such services is a resident of this Commonwealth and (ii) the Commission approves the election of the employing unit, for whom such services are performed, that the entire service of such individual shall be deemed to be employment subject to this title.

2. Services covered by an arrangement between the Commission and the agency charged with the administration of any other state or federal unemployment compensation law, pursuant to which all services performed by an individual for an employing unit are deemed to be performed entirely within this Commonwealth, shall be deemed to be employment if the Commission has approved an election of the employing unit for whom such services are performed, pursuant to which the entire service of such individual during the period covered by such election is deemed to be insured work.

3. The Commission is hereby authorized to enter into reciprocal arrangements with appropriate and duly authorized agencies of other states or the federal government whereby services performed by an individual for a single employing unit for which services are customarily performed in more than one state shall be deemed to be services performed entirely within any one of the states (i) in which any part of such individual's service is performed, (ii) in which such individual has his residence, or (iii) in which the employing unit maintains a place of business. Any such arrangement shall be authorized if there is in effect, as to such services, an election, approved by the agency charged with the administration of such state's unemployment compensation law, pursuant to which all the services performed by such individual for such employing unit are deemed to be performed entirely within such state.

4. To the extent permissible under the laws and Constitution of this Commonwealth and the United States, the Commission is authorized to enter into or cooperate in arrangements whereby facilities and services provided under this title and facilities and services provided under the unemployment compensation law of any foreign government established on the continent of North America, may be utilized for the taking of claims and the payment of benefits under this title or under a similar law of such foreign government.

D. 1. Service shall be deemed to be localized within a state if:

a. The service is performed entirely within such state; or

b. The service is performed both within and without such state, but the service performed without such state is incidental to the individual's service within the state, for example is temporary or transitory in nature or consists of isolated transactions.

2. Services performed outside the state in which the base of operations is located shall be deemed to be incidental to the services performed within such state.

Code 1950, § 60-14; 1952, cc. 30, 184; 1956, c. 440; 1962, c. 71; 1968, c. 738, § 60.1-14; 1971, Ex. Sess., c. 235; 1972, c. 824; 1974, cc. 466, 660; 1976, c. 304; 1977, c. 330; 1979, c. 637; 1980, cc. 520, 522; 1981, cc. 28, 369, 374, 375; 1982, c. 25; 1983, c. 14; 1984, cc. 120, 139, 204; 1985, cc. 152, 254; 1986, c. 480.