NY State Senate Bill 2017-S431

Archive: Last Bill Status - In Senate Committee Labor Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 03, 2018	referred to labor
Jan 04, 2017	referred to labor

2017-S431 (ACTIVE) - Details

Current Committee:: Senate Labor
Law Section:: Labor Law
Laws Affected:: Amd §§518 & 590, Lab L
Versions Introduced in Other Legislative Sessions:: 2009-2010: S2245
2011-2012: S673
2013-2014: S36
2015-2016: S1117

2017-S431 (ACTIVE) - Summary

Relates to increasing the maximum benefit rate for unemployment insurance.

2017-S431 (ACTIVE) - Sponsor Memo

                                 BILL NUMBER:  S431

 TITLE OF BILL :

An act to amend the labor law, in relation to the unemployment
insurance law, increasing the maximum benefit rate for unemployment
insurance

 PURPOSE :

The bill intends to increase the maximum weekly unemployment benefit
rate and restore fiscal health to the state's Unemployment Insurance
Trust Fund.

 SUMMARY OF PROVISIONS :

Section one of the bill amends section 518 of the Labor Law to
gradually increase the taxable wage base for employer contributions to
the Unemployment Insurance Trust fund until 2018, after which the
Department of Labor would calculate the wage base needed to fund
annual increases for the maximum weekly benefit.

Section two of the bill amends section 590 of the Labor Law to
increase in the maximum weekly unemployment benefit rate to $475 as of
July 2016, to $525 as of July 2014, to $600 as of July 2017, to $650
as of July 2019, after which the maximum weekly benefit would equal

one-half of the state average weekly wage as annually calculated by
the State Department of Labor.

Section three establishes the effective date.

 JUSTIFICATION :

New York State's unemployment rate reached 8.8% in January 2010 with
more than 851,970 New Yorkers out of work. In the New York City
metropolitan area, the rate is over 10%, and disproportionately higher
for Hispanics at 23% and 38.7% for African-Americans. The State's
long-term unemployment rate, which tracks those who are unemployed for
27 weeks or more, was 34% in 2009 exceeding the national average of
31.5%.

The State's unemployment benefit rate and taxable wage base have not
been raised since 1998. Due to the large number of persons filing for
unemployment benefits, the Unemployment Insurance Trust Fund has
become insolvent. The State has had to borrow from the federal
government to pay benefits and will owe more than $3.5 billion by the
end of the year. This deficit is expected to rise by an additional $1
billion during each of the next few years if nothing is done to
address the problem.

The limited amount of stimulus funds provided under the American
Recovery and Reinvestment Act of 2009 (ARRA) does not resolve this
long-term crisis to the Trust Fund. Both employers and the State will
face significant new costs if the Trust Fund is not restored to fiscal
health. The continued insolvency of the Fund will result in higher
federal unemployment taxes for employers. When the Fund is solvent,
employers may receive a federal credit reduction against the 6.2%
federal tax they pay under the Federal Unemployment Trust Act (FUTA),
which reduces their tax liability to .8%. When the Fund lacks
sufficient contributions to repay borrowed money by the federal
deadlines, the FUTA credit is reduced, which increases the net federal
tax rate for employers. without this legislation, the increased tax
cost to New York employers is projected to reach $6.4 billion during
the period of 2009-2018.


The failure to increase the taxable wage base will also cost the State
millions of dollars in interest on its federal loan. Under the bill,
however, the State's interest on the loan would continually decline
until 2016, when the Trust Fund's solvency would be restored. New
York's taxable wage base of $8500 is significantly lower than most
other states, including New Jersey ($29,700), Connecticut ($15,000)
and Massachusetts ($14,000).

The legislation would also increase the maximum weekly benefit rate of
$405 which was enacted more than a decade ago. Since then, the
spending power of $405 has declined by more than 20% to approximately
$322. The current benefit rate is based on one-half of the state's
average weekly wage in 1998. if this rate were adjusted to the current
average weekly wage, the benefit would be closer to $575. The
legislation proposes a more modest increase in the initial years
following enactment in an effort to strike a balance between the need
to increase benefits and raise employer contributions. New York's
current benefit level places many unemployed workers and their
families below the poverty threshold. The state's weekly benefit rate
is much lower than that of nearby states including New Jersey ($600),
Connecticut ($537), and Massachusetts ($628). In Oregon, which indexes
unemployment benefits to keep pace with inflation, the benefit was
increased to $493 two years ago.

The need to raise unemployment benefits and the taxable wage base
grows more urgent each year. Because benefits have not been increased,
workers who have recently received extended unemployment benefits from
the federal government have been deprived of additional income they
and their families need at this difficult time. The failure to act
also hurts local economies. Studies show that every dollar provided to
workers returns approximately $1.64 through local purchases for rent,
food and other basics, which in turn helps local businesses and
generates tax revenues.

The unemployment system was established to help New Yorkers support
themselves after they lose their jobs through no fault of their own
until they can find new work. This legislation will protect New York's
unemployment system by ensuring the fiscal health of the Trust Fund,
and in so doing, help avoid new costs for employers and the State if
solvency of the Fund is not restored.

 LEGISLATIVE HISTORY :

2015-2016-S1117A
2013-2014 S.36-A
2011-12: S.673-A
2010: S.2245-B Advanced to 3rd Reading
2009: S.2245 - Advanced to 3rd Reading A.4921 Advanced to Ways & Means
2008: S.8742 - Referred to Rules
A.11642 Advanced to Ways & Means

 EFFECTIVE DATE :
This bill will take effect immediately, provided that section one will
take effect 30 days after it becomes law.

2017-S431 (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                    431
 
                        2017-2018 Regular Sessions
 
                             I N  S E N A T E
 
                                (PREFILED)
 
                              January 4, 2017
                                ___________
 
 Introduced  by  Sen. PERALTA -- read twice and ordered printed, and when
   printed to be committed to the Committee on Labor
 
 AN ACT to amend the labor law, in relation to the unemployment insurance
   law, increasing the maximum benefit rate for unemployment insurance

   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1. Paragraph (a) of subdivision 1 of section 518 of the labor
 law, as amended by section 1 of part O of chapter  57  of  the  laws  of
 2013, is amended to read as follows:
   (a)  "Wages"  means  all remuneration paid, except that such term does
 not include remuneration paid to an employee by an employer after  eight
 thousand  five  hundred  dollars have been paid to such employee by such
 employer with respect to employment during  any  calendar  year,  except
 that  such  term does not include remuneration paid to an employee by an
 employer with respect to employment during any calendar  year  beginning
 with the first day of
                                         that exceeds
              January 2014                  $10,300
              January 2015                  $10,500
              January 2016                  $10,700
              January 2017                  $10,900
              January 2018                  [$11,100] $12,500
              January 2019                  [$11,400
              January 2020                  $11,600
              January 2021                  $11,800
              January 2022                  $12,000
              January 2023                  $12,300
              January 2024                  $12,500
              January 2025                  $12,800
              January 2026                  $13,000

  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets

                       [ ] is old law to be omitted.
                                                            LBD00059-01-7

 S. 431                              2

 and  each  year  thereafter  on  the  first  day of January that exceeds
 sixteen percent of the state's average annual wage as determined by  the
 commissioner  on  an annual basis pursuant to section five hundred twen-
 ty-nine of this article; provided, however,  that  in  calculating  such
 maximum amount of remuneration, the amount arrived at by multiplying the
 state's average annual wage times sixteen percent shall be rounded up to
 the  nearest hundred dollars. In no event shall the state's annual aver-
 age wage be reduced from the amount determined  in  the  previous  year]
 $13,500
   IN  EACH  SUCCEEDING CALENDAR YEAR, THE DEPARTMENT SHALL CALCULATE THE
 BASE AMOUNT OF REMUNERATION NECESSARY FROM WHICH TO  PRODUCE  SUFFICIENT
 PREMIUM  TO  PROVIDE  FOR THE ANNUAL INCREASES IN MAXIMUM WEEKLY BENEFIT
 PROVIDED FOR IN THIS ARTICLE, AND OTHER  FUNDING  FOR  THE  UNEMPLOYMENT
 INSURANCE  TRUST  FUND  PURSUANT  TO  SECTION FIVE HUNDRED FIFTY OF THIS
 ARTICLE, AS MAY BE NECESSARY.  The term "employment"  includes  for  the
 purposes  of this subdivision services constituting employment under any
 unemployment compensation law of another state or the United States.
   § 2. Paragraph (a) of subdivision 5 of section 590 of the  labor  law,
 as  amended by section 8 of part O of chapter 57 of the laws of 2013, is
 amended to read as follows:
   (a) A claimant's weekly benefit amount shall be  one  twenty-sixth  of
 the  remuneration  paid  during the highest calendar quarter of the base
 period by employers, liable for contributions or  payments  in  lieu  of
 contributions under this article, provided the claimant has remuneration
 paid  in  all  four  calendar  quarters during his or her base period or
 alternate base period. However, for any claimant  who  has  remuneration
 paid  in  all  four  calendar  quarters during his or her base period or
 alternate base period  and  whose  high  calendar  quarter  remuneration
 during  the  base  period  is  three  thousand five hundred seventy-five
 dollars or less, the benefit amount shall be  one  twenty-fifth  of  the
 remuneration paid during the highest calendar quarter of the base period
 by  employers  liable  for contributions or payments in lieu of contrib-
 utions under this article. A claimant's  weekly  benefit  shall  be  one
 twenty-sixth  of  the average remuneration paid in the two highest quar-
 ters paid during the base period or alternate base period  by  employers
 liable for contributions or payments in lieu of contributions under this
 article when the claimant has remuneration paid in two or three calendar
 quarters  provided  however, that a claimant whose high calendar quarter
 is four thousand dollars or less but greater than  three  thousand  five
 hundred  seventy-five  dollars shall have a weekly benefit amount of one
 twenty-sixth of such high calendar quarter. However,  for  any  claimant
 who  has  remuneration paid in two or three calendar quarters during his
 or her base period or alternate base  period  and  whose  high  calendar
 quarter  remuneration  during  the  base  period  is three thousand five
 hundred seventy-five dollars or less, the benefit amount  shall  be  one
 twenty-fifth  of the remuneration paid during the highest calendar quar-
 ter of the base period by employers liable for contributions or payments
 in lieu of contributions under this article.  Any  claimant  whose  high
 calendar  quarter remuneration during the base period is more than three
 thousand five hundred seventy-five dollars shall not have a weekly bene-
 fit amount less than one hundred forty-three dollars. The weekly benefit
 amount, so computed, that is not a  multiple  of  one  dollar  shall  be
 [lowered  to]  the  next  multiple of one dollar. On the first Monday of
 September, nineteen hundred ninety-eight the weekly benefit amount shall
 not exceed three hundred sixty-five  dollars  nor  be  less  than  forty
 dollars,  until  the  first  Monday of September, two thousand, at which

 S. 431                              3
 
 time the maximum benefit payable  pursuant  to  this  subdivision  shall
 equal  one-half  of the state average weekly wage for covered employment
 as calculated by the department no sooner than July first, two  thousand
 and  no  later  than  August  first, two thousand, rounded [down] to the
 [lowest] NEXT dollar. On and after the  first  Monday  of  October,  two
 thousand fourteen, the weekly benefit shall not be less than one hundred
 dollars, nor shall it exceed four hundred twenty dollars until the first
 Monday  of October, two thousand fifteen when the maximum benefit amount
 shall be four hundred twenty-five dollars, until  the  first  Monday  of
 October,  two  thousand sixteen when the maximum benefit amount shall be
 four hundred thirty dollars, until the first Monday of  [October]  JULY,
 two  thousand  seventeen  when  the maximum benefit amount shall be four
 hundred [thirty-five] SEVENTY-FIVE dollars, until the  first  Monday  of
 [October]  JULY,  two  thousand eighteen when the maximum benefit amount
 shall be [four] FIVE hundred  [fifty]  TWENTY-FIVE  dollars,  until  the
 first  Monday  of [October] JULY, two thousand nineteen when the maximum
 benefit amount shall be [thirty-six percent of the average weekly  wage]
 SIX HUNDRED DOLLARS, until the first Monday of [October] JULY, two thou-
 sand  twenty  when  the  maximum  benefit  amount shall be [thirty-eight
 percent of the average weekly wage, until the first  Monday  of  October
 two  thousand  twenty-one when the maximum benefit amount shall be forty
 percent of the average weekly wage, until the first Monday  of  October,
 two  thousand twenty-two when the maximum benefit amount shall be forty-
 two percent of the average weekly wage, until the first Monday of  Octo-
 ber,  two thousand twenty-three when the maximum benefit amount shall be
 forty-four percent of the average weekly wage, until the first Monday of
 October, two thousand twenty-four when the maximum benefit amount  shall
 be  forty-six percent of the average weekly wage, until the first Monday
 of October, two thousand twenty-five when  the  maximum  benefit  amount
 shall be forty-eight percent of the average weekly wage, until the first
 Monday  of  October, two thousand twenty-six and each year thereafter on
 the first Monday of October when the maximum  benefit  amount  shall  be
 fifty  percent  of the average weekly wage provided, however, that in no
 event shall the maximum benefit amount  be  reduced  from  the  previous
 year]  SIX  HUNDRED  FIFTY  DOLLARS, UNTIL THE FIRST MONDAY OF JULY, TWO
 THOUSAND TWENTY-ONE, WHEN THE MAXIMUM BENEFIT AMOUNT  SHALL  EQUAL  ONE-
 HALF OF THE STATE AVERAGE WEEKLY WAGE AS CALCULATED BY THE DEPARTMENT NO
 SOONER  THAN  JULY  FIRST,  TWO  THOUSAND  TWENTY-ONE AND NOT LATER THAN
 AUGUST FIRST, TWO THOUSAND TWENTY-ONE AND ON JULY FIRST OF EACH SUCCEED-
 ING YEAR THE MAXIMUM BENEFIT SHALL EQUAL ONE-HALF OF THE  STATE  AVERAGE
 WEEKLY  WAGE  AS  CALCULATED  BY THE DEPARTMENT ANNUALLY PURSUANT TO THE
 MANNER DESCRIBED IN THIS SUBDIVISION. FOR PURPOSES OF THIS  SUBDIVISION,
 THE  TERM "STATE AVERAGE WEEKLY WAGE" SHALL MEAN THE AVERAGE WEEKLY WAGE
 OF THE STATE FOR THE PREVIOUS CALENDAR YEAR AS REPORTED BY  THE  COMMIS-
 SIONER   TO   THE   SUPERINTENDENT   OF   FINANCIAL  SERVICES  ON  MARCH
 THIRTY-FIRST.
   § 3. This act shall take effect immediately and  shall  apply  to  all
 claims  filed  on  and  after  the effective date of this act; provided,
 however, that section one of this act shall take effect on the thirtieth
 day after it shall have become a law.

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Senate Bill S431

Sponsored By

Archive: Last Bill Status - In Senate Committee Labor Committee

2017-S431 (ACTIVE) - Details

2017-S431 (ACTIVE) - Summary

2017-S431 (ACTIVE) - Sponsor Memo

2017-S431 (ACTIVE) - Bill Text download pdf

Comments

Senate Bill S431

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Sponsored By

Jose Peralta

Archive: Last Bill Status - In Senate Committee Labor Committee

2017-S431 (ACTIVE) - Details

2017-S431 (ACTIVE) - Summary

2017-S431 (ACTIVE) - Sponsor Memo

2017-S431 (ACTIVE) - Bill Text download pdf

Comments