Statement From Senator Patrick M. Gallivan Regarding Federal Legislation To Waive the Unemployment Insurance Assessment Surcharge

Patrick M. Gallivan

August 18, 2011

Last month, employers across New York State began receiving notices from the New York State Department of Labor asking them to pay an extra twenty-one dollars per employee to cover the interest cost on what had been traditionally interest-free loans issued to the states by the federal government to pay for the Unemployment Insurance extensions called for in the American Recovery and Reinvestment Act.

New York State Senator Patrick M. Gallivan applauded United States Senator Charles Schumer today following his announcement in Tonawanda that he has introduced federal legislation waiving the Unemployment Insurance Assessment Surcharge.

“Because Congress has failed to pass the legislation required to again waive this interest, New York State employers have been forced to bear the burden. The last thing our country, our state, or Western New York needs is government taking more money from the businesses that provide jobs and vitality to our communities.

Initially I had sought to work with Governor Cuomo and the Department of Labor to seek a New York State solution for New York State businesses, however the most direct way to resolve this problem was always through federal action. Today, Senator Schumer has taken the lead and begun the process in Washington so that New York State can take corrective action to either refund employers for the cost of this assessment, or provide them with credits on next year’s standard Unemployment Insurance assessment.

I applaud Senator Schumer and look forward to working with Governor Cuomo and the New York State Department of Labor to refund businesses the moment this legislation is enacted in Washington.”