BILL NUMBER: S8249

SPONSOR: HELMING
 
TITLE OF BILL:

An act to amend the labor law, in relation to excluding claims for unem-
ployment insurance arising as a result of an employer closing his or her
business because of novel coronavirus COVID-19, from an employer's expe-
rience rating charges

 
PURPOSE:

The purpose of this legislation is to exclude unemployment payments, as
a result of COVID-19 or another government mandated closure, from being
used as part of the calculation of an employer's experience rating.

 
SUMMARY OF PROVISIONS:

Section 1 amends the labor law to exclude payments made for unemployment
insurance benefits that arise as a result of the closure of an employer
for any reason related to COVID-19 or as a result of a mandatory order
              

to close the employer's business, from the calculation of the employer's
contribution for their experience rating.

Section 2 provides for an effective date

 
JUSTIFICATION:

This bill provides that an employer's experience rating will not be
charged for benefits paid to employees as a result of the closure of an
employer's business for any reason related to COVID-19 or as a result of
a mandatory government order to close.  Under current law, an employer's
experience rating determines his/her unemployment insurance rates; the
higher the number of former employees collecting benefits, the higher
the contribution by the employer for unemployment insurance.

Due to COVID-19 and many small businesses being forced to close or let
employees go, that usually have a lower experience rating, will see an
uptick in their unemployment insurance rates. Many of these businesses
plan to reopen or return to full operating capacity and hire back their
employees and should have these unemployment calculations be excluded in
their rating for the following year.  As we continue to rightfully
assist our employees, we must also consider our small business employers
and do everything we can to help them restart so we may restart our
economy.

 
LEGISLATIVE HISTORY:

New Bill.

 
FISCAL IMPLICATIONS:

None.

 
EFFECTIVE DATE:
This act shall take effect immediately.