S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   8936
 
                        2025-2026 Regular Sessions
 
                           I N  A S S E M B L Y
 
                               July 16, 2025
                                ___________
 
 Introduced  by M. of A. BRONSON -- read once and referred to the Commit-
   tee on Labor
 
 AN ACT to amend the labor law, in  relation  to  unemployment  insurance
   financing  reform; and to repeal certain provisions of such law relat-
   ing thereto
 
   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  BEGINNING
 ON  OR  BEFORE  THE  FIRST DAY OF JANUARY, TWO THOUSAND THIRTEEN, 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
              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
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD13417-01-5
              

 A. 8936                             2
 
              [January 2026                 $13,000
 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.]
 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 1 of section 518 of the  labor  law,
 as amended by section 1 of part KK of chapter 56 of the laws of 2025, 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  BEGINNING
 ON  OR  BEFORE  THE  FIRST DAY OF JANUARY, TWO THOUSAND THIRTEEN, 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
              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
 [and each year thereafter on the first day of January that exceeds eigh-
 teen 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 title; provided, however, that in calculating such maxi-
 mum amount of remuneration, the amount arrived  at  by  multiplying  the
 state's  average  annual wage times eighteen percent shall be rounded up
 to the nearest hundred dollars. In no event  shall  the  state's  annual
 average  wage  be  reduced  from  the  amount determined in the previous
 year.] The term "employment" includes for the purposes of this  subdivi-
 sion  services  constituting  employment  under any unemployment compen-
 sation law of another state or the United States.
   § 3. The labor law is amended by adding a new section 517-a to read as
 follows:
   § 517-A. CALENDAR QUARTER.  FOR THE PURPOSES OF THIS ARTICLE, THE TERM
 "CALENDAR QUARTER" SHALL MEAN ANY THIRTEEN-WEEK PERIOD BEGINNING ON  THE
 FIRST DAY OF JANUARY, APRIL, JULY, OR OCTOBER OF ANY YEAR.
   § 4. The labor law is amended by adding a new section 517-b to read as
 follows:
   § 517-B. PAYROLL. FOR THE PURPOSES OF THIS ARTICLE, THE TERM "PAYROLL"
 SHALL MEAN ALL WAGES PAID BY AN EMPLOYER DURING ANY CALENDAR QUARTER.
 A. 8936                             3
 
   § 5. The labor law is amended by adding a new section 517-c to read as
 follows:
   §  517-C.  ANNUAL  PAYROLL. FOR THE PURPOSES OF THIS ARTICLE, THE TERM
 "ANNUAL PAYROLL" SHALL MEAN THAT PART OF AN EMPLOYER'S PAYROLL  FOR  THE
 FOUR CONSECUTIVE CALENDAR QUARTERS ENDING ON THE COMPUTATION DATE.
   § 6. The labor law is amended by adding a new section 517-d to read as
 follows:
   §  517-D. COMPUTATION DATE. FOR THE PURPOSES OF THIS ARTICLE, THE TERM
 "COMPUTATION DATE" SHALL MEAN DECEMBER THIRTY-FIRST OF  THE  YEAR  IMME-
 DIATELY PRECEDING THE CALENDAR YEAR FOR WHICH THE CONTRIBUTION RATES ARE
 EFFECTIVE.
   § 7. The labor law is amended by adding a new section 517-e to read as
 follows:
   § 517-E. QUALIFYING PERIOD. FOR THE PURPOSES OF THIS ARTICLE, THE TERM
 "QUALIFYING  PERIOD"  SHALL MEAN THE THREE-YEAR PERIOD OF TWELVE CONSEC-
 UTIVE CALENDAR QUARTERS ENDING ON THE COMPUTATION DATE; FOR AN  EMPLOYER
 WHO  HAS  NOT  BEEN  SUBJECT  TO  THIS ARTICLE DURING EACH OF THE TWELVE
 CALENDAR QUARTERS ENDING WITH THE COMPUTATION DATE, SUCH EMPLOYER  SHALL
 BE  SUBJECT  TO  THE APPLICABLE RATE FOR NEW EMPLOYERS UNDER SUBDIVISION
 SIX OF SECTION FIVE HUNDRED EIGHTY-ONE OF THIS ARTICLE; AN  EMPLOYER  IS
 SUBJECT TO THIS ARTICLE BEGINNING WITH THE START OF THE FIRST QUARTER IN
 WHICH  THE  EMPLOYER  PAYS WAGES UNDER THIS ARTICLE, AND ENDING WITH THE
 END OF THE CALENDAR QUARTER IN WHICH EITHER THE EMPLOYER  FILES  CLOSING
 CONTRIBUTION  AND  WAGE REPORTS UNDER REGULATIONS ADOPTED BY THE DEPART-
 MENT, OR THE ACCOUNT IS CLOSED BY THE INDEPENDENT ACTION OF THE  COMMIS-
 SIONER.
   § 8. The labor law is amended by adding a new section 529-a to read as
 follows:
   § 529-A. AVERAGE DECLINE QUOTIENT. 1. FOR THE PURPOSE OF THIS ARTICLE,
 THE  TERM "AVERAGE DECLINE QUOTIENT" SHALL MEAN THE DEPARTMENT SHALL PUT
 THE EMPLOYER'S QUARTERLY PAYROLLS IN CHRONOLOGICAL ORDER BEGINNING  WITH
 THE  FIRST CALENDAR QUARTER IN THE QUALIFYING PERIOD AND ENDING WITH THE
 LAST CALENDAR QUARTER IN THE QUALIFYING PERIOD. IF AN EMPLOYER'S PAYROLL
 IN A CALENDAR QUARTER IS LESS THAN THE PAYROLL IN THE PRECEDING  QUARTER
 IN  THE  QUALIFYING  PERIOD,  THE  QUARTERLY  DECLINE  QUOTIENT SHALL BE
 COMPUTED TO AT LEAST NINE DECIMAL PLACES BY DIVIDING THE AMOUNT  OF  THE
 DECLINE BY THE AMOUNT OF THE PAYROLL IN THE PRECEDING CALENDAR QUARTER.
   2.  FOR  THE  PURPOSE  OF  COMPUTING  QUARTERLY DECLINE QUOTIENTS, THE
 DEPARTMENT MAY, BY REGULATION, PRESCRIBE THE MANNER IN  WHICH  REMUNERA-
 TION  PAID  IN THE FORM OF ANNUAL BONUSES OR OTHER LUMP SUM PAYMENTS FOR
 SERVICE PERFORMED OVER A PERIOD OF MORE THAN  THREE  MONTHS  ARE  APPOR-
 TIONED  AMONG  THE  CALENDAR  QUARTERS OF THE CALENDAR YEAR IN WHICH THE
 SERVICE WAS PERFORMED.
   3. THE DEPARTMENT SHALL DETERMINE THE SUM OF EACH ELIGIBLE  EMPLOYER'S
 DECLINE  QUOTIENTS  AND SHALL WEIGHT THE SUM BY ADDING TO IT 1.000000000
 FOR EACH QUARTER IN  THE  EMPLOYER'S  QUALIFYING  PERIOD  IN  WHICH  THE
 EMPLOYER HAS NO PAYROLL, AND FOR EACH QUARTER THAT IMMEDIATELY FOLLOWS A
 QUARTER  IN  WHICH THE EMPLOYER HAS NO PAYROLL. EACH ELIGIBLE EMPLOYER'S
 AVERAGE DECLINE QUOTIENT SHALL BE COMPUTED TO THE NINTH DECIMAL PLACE BY
 DIVIDING THE SUM OF THE QUARTERLY DECLINE QUOTIENTS  FOR  THE  EMPLOYER,
 WEIGHTED WHEN REQUIRED BY THIS SECTION, BY THE NUMBER OF QUARTERS IN THE
 EMPLOYER'S QUALIFYING PERIOD LESS ONE.
   § 9. The labor law is amended by adding a new section 529-b to read as
 follows:
   §  529-B.  RESERVE  RATE.  FOR  THE PURPOSES OF THIS ARTICLE, THE TERM
 "RESERVE RATE" SHALL MEAN THE RESULT  OBTAINED  BY  DIVIDING  THE  TOTAL
 A. 8936                             4
 
 AMOUNT AVAILABLE FOR BENEFITS IN THE FUND ON THE COMPUTATION DATE BY THE
 TOTAL  ANNUAL  PAYROLL  OF EMPLOYERS REQUIRED TO PAY CONTRIBUTIONS UNDER
 THE PROVISIONS OF SECTION FIVE  HUNDRED  SEVENTY  OF  THIS  ARTICLE.  IN
 CALCULATING THE RESERVE RATE, THE TOTAL AMOUNT AVAILABLE FOR BENEFITS IN
 THE  FUND  ON  THE  COMPUTATION DATE SHALL BE PROPORTIONALLY ADJUSTED TO
 REFLECT ANY INCREASES IN THE BENEFIT UNDER THIS ARTICLE.
   § 10. Subdivision 1 of section 570 of the labor  law,  as  amended  by
 chapter 7 of the laws of 1985, is amended to read as follows:
   1.  Rate.  Each  employer liable under this article shall pay contrib-
 utions on all wages paid by [him] SUCH EMPLOYER at the rate of five  and
 four-tenths  per  centum  or, if applicable to the employer, at the rate
 provided by the provisions of [sections five hundred seventy-seven  and]
 SECTION  five  hundred  eighty-one OF THIS TITLE.   However, if contrib-
 utions so established exceed five and four-tenths per  centum  of  wages
 paid  by  [him] SUCH EMPLOYER which are subject to the federal unemploy-
 ment tax act, they shall be reduced by that part of such excess, if any,
 which is caused by the provisions of paragraph (b) of subdivision one of
 section five hundred eighteen OF THIS ARTICLE.
   § 11. Subdivision 2 of section 577 of the labor law is REPEALED.
   § 12. Section 581 of the labor law is REPEALED and a new  section  581
 is added to read as follows:
   §  581.  EXPERIENCE  RATING.  1.  THE  DEPARTMENT SHALL DETERMINE EACH
 ELIGIBLE EMPLOYER'S ANNUAL PAYROLL. THE DEPARTMENT SHALL  THEN  PUT  ALL
 ELIGIBLE  EMPLOYERS  IN  THE  ORDER  OF  THEIR AVERAGE QUARTERLY DECLINE
 QUOTIENTS BEGINNING WITH THE SMALLEST AVERAGE DECLINE QUOTIENT AND SHALL
 DETERMINE, WITH RESPECT TO EACH EMPLOYER, THE CUMULATIVE ANNUAL  PAYROLL
 DURING THE FOUR CONSECUTIVE QUARTERS ENDING WITH THE COMPUTATION DATE OF
 THE EMPLOYER TOGETHER WITH ALL EMPLOYERS WHO PRECEDE THE EMPLOYER ON THE
 LIST.
   2. THE DEPARTMENT SHALL SEGREGATE THE EMPLOYERS INTO GROUPS IN ACCORD-
 ANCE  WITH CUMULATIVE ANNUAL PAYROLL. THE LIMITS OF THE GROUPS ARE THOSE
 SET OUT IN COLUMN B OF THE TABLE IN SUBDIVISION THREE OF  THIS  SECTION.
 EACH  OF  THESE  GROUPS  SHALL BE IDENTIFIED BY THE RATE CLASS NUMBER IN
 COLUMN A WHICH IS OPPOSITE THE FIGURES IN COLUMN B WHICH  REPRESENT  THE
 PERCENTAGE LIMITS OF EACH GROUP. AN EMPLOYER SHALL BE ASSIGNED THE EXPE-
 RIENCE  FACTOR IN COLUMN C WHICH IS OPPOSITE THE RATE CLASS IN WHICH THE
 GREATER PART OF THE EMPLOYER'S ANNUAL PAYROLL FALLS. IF ONE-HALF OF  THE
 EMPLOYER'S  ANNUAL  PAYROLL FALLS IN ONE CLASS, AND ONE-HALF IN ANOTHER,
 THE EMPLOYER SHALL BE ASSIGNED TO THE  LOWER  NUMBERED  RATE  CLASS.  AN
 EMPLOYER  SHALL  NOT BE ASSIGNED TO A HIGHER NUMBERED RATE CLASS THAN IS
 ASSIGNED TO ANOTHER EMPLOYER WITH THE  SAME  AVERAGE  QUARTERLY  DECLINE
 QUOTIENT.
   3.  THE RATE OF CONTRIBUTIONS FOR EACH EMPLOYER IS A PERCENTAGE OF THE
 AVERAGE BENEFIT RATE COST MULTIPLIED BY THE EMPLOYER'S EXPERIENCE FACTOR
 SET OUT IN COLUMN C OF  THE  TABLE  IN  THIS  SUBDIVISION  OPPOSITE  THE
 EMPLOYER'S  APPLICABLE  RATE  CLASS  SET  OUT  IN COLUMN A PLUS THE FUND
 SOLVENCY ADJUSTMENT SURCHARGE REQUIRED UNDER SUBDIVISION  FIVE  OF  THIS
 SECTION,  PROVIDED  THAT THE RATE OF CONTRIBUTIONS FOR AN EMPLOYER SHALL
 NOT BE LESS THAN NINETY-FIVE HUNDREDTHS PER CENTUM OR MORE THAN FIVE AND
 FOUR-TENTHS PER CENTUM. THE RATE OF CONTRIBUTIONS  FOR  AN  EMPLOYER  IN
 RATE  CLASS  TWENTY-ONE, AS DEFINED BY SECTION FIVE HUNDRED EIGHTY-ONE-E
 OF THIS TITLE SHALL NOT BE LESS THAN FIVE AND  FOUR-TENTHS  PER  CENTUM.
 THE  RATE OF CONTRIBUTIONS FOR AN EMPLOYER SHALL BE ROUNDED TO THE NEAR-
 EST ONE-HUNDREDTH OF ONE PER CENTUM.
 
                     CUMULATIVE ANNUAL PAYROLL:
 A. 8936                             5
 
 COLUMN A                 COLUMN B                 COLUMN C
 RATE CLASS:    AT LEAST,   BUT NOT LESS THAN:     EXPERIENCE FACTOR:
 1              0           5                      0.40
 2              5           10                     0.45
 3              10          15                     0.50
 4              15          20                     0.55
 5              20          25                     0.60
 6              25          30                     0.65
 7              30          35                     0.70
 8              35          40                     0.80
 9              40          45                     0.90
 10             45          50                     1.00
 11             50          55                     1.00
 12             55          60                     1.10
 13             60          65                     1.20
 14             65          70                     1.30
 15             70          75                     1.35
 16             75          80                     1.40
 17             80          85                     1.45
 18             85          90                     1.50
 19             90          95                     1.55
 20             95          100                    1.60
 21             100         NO LIMIT               1.65
 
  4.  THE  DEPARTMENT  SHALL  DETERMINE  THE AVERAGE BENEFIT RATE COST AS
 FOLLOWS:
   (A) THE DEPARTMENT SHALL DETERMINE THE  AMOUNT  OF  BENEFITS  PAID  TO
 INSURED  WORKERS  DURING  THE LAST THREE COMPUTATION YEARS, WHICH AMOUNT
 SHALL BE PROPORTIONALLY ADJUSTED TO REFLECT ANY INCREASES IN THE BENEFIT
 UNDER THIS ARTICLE; AND
   (B) THE DEPARTMENT SHALL DIVIDE THE AMOUNT DETERMINED IN PARAGRAPH (A)
 OF THIS SUBDIVISION BY THE TOTAL WAGES PAID BY ALL EMPLOYERS REQUIRED TO
 PAY CONTRIBUTIONS UNDER THIS CHAPTER DURING THE FIRST THREE OF THE  LAST
 FOUR COMPUTATION YEARS.
   5.  AN  EMPLOYER SHALL PAY A FUND SOLVENCY ADJUSTMENT SURCHARGE IF THE
 RESERVE RATE IS LESS THAN ONE PERCENT. THE  SURCHARGE  IS  A  PERCENTAGE
 EQUAL TO THE DIFFERENCE BETWEEN ONE PERCENT AND THE RESERVE RATE, ROUND-
 ED  TO  THE  NEAREST  ONE-HUNDREDTH OF ONE PER CENTUM. AN EMPLOYER SHALL
 RECEIVE A FUND SOLVENCY ADJUSTMENT CREDIT IF THE RESERVE RATE IS GREATER
 THAN ONE AND TWO-TENTHS PER CENTUM. THE CREDIT IS A PERCENTAGE EQUAL  TO
 THE  DIFFERENCE  BETWEEN  ONE  AND TWO-TENTHS PER CENTUM AND THE RESERVE
 RATE ROUNDED TO THE NEAREST ONE-HUNDREDTH OF ONE PER CENTUM. THE SOLVEN-
 CY SURCHARGE SHALL NOT BE GREATER THAN ONE PER CENTUM, AND THE  SOLVENCY
 CREDIT SHALL NOT BE GREATER THAN FOUR-TENTHS PER CENTUM.
   6. THE RATE FOR ANY EMPLOYER WHO HAS NOT BEEN LIABLE FOR CONTRIBUTIONS
 DURING  AT  LEAST  THE  FIVE  COMPLETED  CALENDAR QUARTERS ENDING ON THE
 COMPUTATION DATE, OR BECAUSE THEY HAVE NOT PAID ANY REMUNERATION IN  THE
 PAYROLL  YEAR  PRECEDING THE COMPUTATION DATE, SHALL BE NINETY-FIVE-HUN-
 DREDTHS PER CENTUM.
   § 13. The labor law is amended by adding a new section 581-e  to  read
 as follows:
   §  581-E.  RATE  OF  CONTRIBUTION FOR DELINQUENT EMPLOYER ACCOUNTS. 1.
 EXCEPT AS PROVIDED IN SUBDIVISION THREE OF THIS SECTION, AN EMPLOYER  IS
 NOT  ELIGIBLE FOR A RATE DETERMINATION UNDER SECTION FIVE HUNDRED EIGHT-
 Y-ONE OF THIS TITLE IF, WITH RESPECT TO QUARTERS BEFORE  JULY  FIRST  OF
 THE PRECEDING CALENDAR YEAR:
 A. 8936                             6
 
   (A)  THE EMPLOYER IS DELINQUENT ONE THOUSAND DOLLARS OR MORE IN PAYING
 CONTRIBUTIONS, PENALTIES, OR INTEREST DUE  UNDER  SECTION  FIVE  HUNDRED
 SEVENTY OF THIS TITLE; OR
   (B) THE EMPLOYER FAILS TO FILE RECORDS TO THE DEPARTMENT AS DEFINED BY
 SECTIONS  FIVE  HUNDRED  SEVENTY-ONE  AND FIVE HUNDRED SEVENTY-FIVE-A OF
 THIS TITLE.
   2. AN EMPLOYER THAT IS  INELIGIBLE  FOR  A  RATE  DETERMINATION  UNDER
 SUBDIVISION  ONE  OF THIS SECTION SHALL PAY CONTRIBUTIONS AT THE HIGHEST
 RATE UNDER SECTION FIVE HUNDRED EIGHTY-ONE OF THIS TITLE.
   3. AN EMPLOYER THAT IS DELINQUENT UNDER PARAGRAPH (A)  OF  SUBDIVISION
 ONE OF THIS SECTION IS ELIGIBLE FOR A RATE DETERMINATION IF THE EMPLOYER
 IS  CURRENT  WITH  PAYMENT UNDER A DEFERRED PAYMENT CONTRACT APPROVED BY
 THE COMMISSIONER. THE COMMISSIONER SHALL ASSIGN THE HIGHEST  RATE  UNDER
 SECTION  FIVE  HUNDRED EIGHTY-ONE OF THIS TITLE IF THE EMPLOYER DEFAULTS
 ON THE DEFERRED PAYMENT CONTRACT.
   § 14. Section 581-b of the labor law, as amended by chapter 5  of  the
 laws of 2000, is amended to read as follows:
   §  581-b. Contributions to the re-employment service fund. Each eligi-
 ble employer that is liable for contributions under this  article  shall
 each  calendar quarter make an additional contribution to the re-employ-
 ment service fund in an amount equal to [seventy-five] TWELVE  AND  ONE-
 HALF  one-thousandths of a percent [(0.075%)] (0.0125%) of its quarterly
 taxable payroll. In any particular calendar year when contributions paid
 into the re-employment service fund by  all  eligible  employers  equals
 thirty-five million dollars, any further contributions for the remainder
 of  such  year  shall  be  credited  to  the general account pursuant to
 section five hundred seventy-seven of this title.
   § 15. This act shall take effect immediately; provided, however,  that
 if section 1 of part KK of chapter 56 of the laws of 2025 shall not have
 taken  effect  on or before such date then section two of this act shall
 take effect on the same date and in the same manner as such  chapter  of
 the laws of 2025 takes effect.