Senate Bill S7690

                                 BILL NUMBER:  S7690

 TITLE OF BILL :

An act to amend the labor law, in relation to refunds of unemployment
insurance benefits

 PURPOSE :

To ensure that the New York State Department of Labor stops payments
and issues refunds of unemployment insurance to employers in a timely
manner when a claimant is ruled ineligible for unemployment insurance
benefits.

 SUMMARY OF PROVISIONS :

Section 1: Amends section 623 of the labor law by adding a new
subdivision 3 to establish a timeframe for the Department of Labor to
stop and refund payments

Section 2: Provides the effective date.

 JUSTIFICATION :

New York State claims to be "open for business," but at times,
businesses are hampered with excessive delays and overregulation.
              

Currently, businesses maintain unemployment insurance accounts with a
minimum balance specifically for benefit payments. When an employer
challenges an unemployment claim, a hearing is conducted by a New York
State Department of Labor (DOL) referee. If a referee rules that a
claimant is ineligible for benefits and no appeal is filed, an
employer's account can potentially continue to be charged for up to
four months and may wait over a year to be refunded. The timeline of
sixty and ninety days affords DOL eight and twelve payment cycles to
stop and refund benefit payments, respectively.

New York State should not withhold capital that could be used to
further a business's growth. By guaranteeing stopped payments and
refunds in a timely manner, business owners can have more certainty in
their budgeting practices.

 LEGISLATIVE HISTORY :

This is a new bill.

 FISCAL IMPLICATIONS :

None.

 EFFECTIVE DATE :
This act shall take effect immediately.