Tag: Unemployment Legislative Updates

Starting in October 2025, the maximum weekly benefit amount (WBA) for unemployment benefits will increase from $504 per week to $869 per week.  Scheduled increases to the maximum WBA have been delayed for years because the state had an outstanding advance from a Title XII loan which was initiated to keep the New York Department of Labor Division of Unemployment’s trust fund solvent. The loan and interest were both paid in full recently so the new, higher WBA can now go into effect. Employers will also see an increase in the taxable wage base (TWB) for 2026 and a decrease in the unemployment tax rate schedule to be used for the 2026 tax rates.  The taxable wage base for 2026 is $13,000 which represents an increase of $200 from 2025.  The tax rate table to be used for 2026 is not yet finalized because it is based on the Size of Fund Index (SOFI) at the end of the rate fiscal year, which is September 30. Effective Date October 1, 2025 for the increase in the maximum WBA January 1, 2026 for the taxable wage base increase January 1, 2026 for the decrease in the tax rate schedule Implication to Stakeholders The substantial increase in the maximum WBA could negatively impact employers doing business in the state.  This is a 72% increase in the weekly benefit amount.  Since benefits paid from an employer’s fund balance have an impact on future tax rates, this increase could signal increases in tax rates for years to come. The increase in TWB may also mean an increase in taxes for employers doing business in the state starting in 2026. The decrease in the tax rate schedule for 2026 should mean lower taxes for employers however, that, coupled with the increase in the TWB could mean a wash for tax liability year over year (2025/2026).  That remains to be seen. Recommended Action Employers should monitor their benefit charge statements and tax rates as soon as they are received to prevent unwarranted charges from hitting their account and increasing tax rates.

Oregon HB 3024 changes an individual's maximum benefit amount after the individual is disqualified from UI benefits for termination cause.

Louisiana HB 153 adjusts work search requirements to reflect the ease of virtual job interviews and electronic applications for employment.

Employers should be aware of a new surcharge with Ohio HB 96 that goes into effect with the state's 2026 unemployment tax rates.

Montana MAR Notice 2025-29.1 clarifies language in statute around when a due date falls on a holiday or weekend and addresses appeal methods.

Hawaii HB 477 allows benefits to claimants on issues that it previously did not, such as during labor disputes.

Rhode Island SB 622 could increase employer responsibility for UI benefits paid if they have part-time workers until 2026.

Oregon SB 916 provides that an individual's UI benefits eligibility is not disqualified for any week unemployment is due to a labor dispute.

Oregon SB 143 revises Oregon's UI tax system by increasing the portion of employer tax rates used each calendar quarter for funding.

Louisiana SB 248 requires electronic filing for a notice of separation on the state's portal and delivered within 10 days to the employee.

Rhode Island HB 5448 changes the sunset for an increase in earnings a partial-UI claimant receives before being disqualified for UI benefits.

Oregon HB 2271 provides a credit against an employer's unemployment insurance taxes for calendar years 2025, 2026 and 2027 with conditions.

Connecticut SB 1312 Change Notification This measure reduces the amount of time an employer is allotted to protest quarterly unemployment benefit statements it believes are inaccurate. The protest deadline is reduced from 60 days to 40 days. Effective Date October 1, 2025 Connecticut Senate Bill 1312 Implication to Stakeholders Employers must be prepared to more quickly audit benefit charge statements upon receipt so they can meet the 40-day deadline for protest, if a protest is in order. Depending on the size of the organization, this could be somewhat difficult to accomplish. Recommended Action Employers should immediately review quarterly benefit charge statements for accuracy and protest any they believe are inaccurate.

Vermont SB 117 amends various unemployment rules including notice requirements for potential layoffs, electronic unemployment insurance notices, and more.

West Virginia HB 2441 disqualifies an individual from unemployment compensation if they fail a random testing for alcohol or illegal controlled substances while holding safety sensitive positions.

Washington SB 5041 allows for striking or lockout workers to receive unemployment benefits.

Virginia HB 1766 changes unemployment compensation claims to be $100 higher than the currently weekly benefit amount starting in 2026.

Oklahoma SB 911 Change Notification This measure reduces applicable percentages for determining employer contributions under the tables in their schedule labeled "a," "b," "c," and "d". A new rate table is introduced for each conditional factor, adjusting how employer contributions are calculated based on the benefit wage ratio and state experience factor. The measure removes the formula that previously governed increases in employer contribution rates based on the benefit wage ratio and in some cases will reduce the tax rate in certain areas of the schedule. The minimum balance required in the unemployment compensation fund toavoid conditional contribution rates has been increased from $25,000,000 to $50,000,000. Effective Date November 1, 2025 Oklahoma Senate Bill 911 Implication to Stakeholders This could mean a lower tax rate for employers in Oklahoma in 2026. Recommended Action Nothing at this time. When annual tax rates are mailed to employers in November, close attention should be paid to the assigned rate.