Tag: Unemployment Legislative Updates

Virginia House Bill 1320 Virginia HB 1320 amends § 60.2-602 of the Code of Virginia to increase weekly unemployment insurance (UI) benefit amounts. While benefits will continue to be calculated using the Benefit Table based on wages in the two highest-paid quarters of a claimant’s base period, the measure updates the table to provide a flat increase of $48 to weekly benefit amounts. This change applies to claims effective on or after the earlier of six weeks following enactment or July 1, 2026. The bill is enacted as an emergency measure, accelerating implementation. Effective Date July 1, 2026 Virginia HB 1320 Implication to Stakeholders The increase in weekly benefit amounts is expected to raise overall unemployment insurance benefit payouts from the state trust fund. Although the direct impact on employer tax rates is not specifically defined in the law, higher benefit outflows may place downward pressure on trust fund solvency over time. This can increase the likelihood of future adjustments to employer contribution rates or taxable wage bases, particularly if claim volume rises or economic conditions weaken. Employers may ultimately experience higher unemployment insurance costs, especially those with greater claims activity affecting their experience rating. Recommended Action for Employers Employers should monitor updates from the Virginia Employment Commission regarding any future changes to unemployment tax rates or trust fund conditions. It is advisable to review and strengthen internal unemployment claims management processes to ensure that only valid claims are charged to the employer’s account. Employers may also want to factor potential increases in UI-related costs into financial planning and budgeting forecasts. Proactive workforce management and documentation practices will help mitigate exposure to higher experience-rated contributions as benefit levels increase.

Kentucky Senate Bill 129 Kentucky Senate Bill 129 updates KRS 341.243 by modifying the structure and funding mechanism of the existing Service Capacity Upgrade Fund, which supports modernization of the state’s unemployment insurance (UI) system. While the fund itself is not new, the bill revises how employer contributions are calculated and introduces a new rate adjustment methodology. Through December 31, 2026, employers will continue contributing based on the existing 0.075% rate reduction. Beginning January 1, 2027, the contribution structure changes, allowing the Secretary to set the rate annually, with a cap of 0.025%. The bill also establishes specific conditions under which contributions may be reduced or suspended, including when the fund reaches certain balance thresholds or if the UI trust fund balance declines below defined levels. Effective Date The bill maintains the current structure through December 31, 2026. The updated rate-setting methodology and ongoing provisions take effect January 1, 2027. Kentucky SB 129 Implication to Stakeholders Employers should expect continued contributions to the Service Capacity Upgrade Fund, but with a shift in how those contributions are determined beginning in 2027. While the updated structure introduces flexibility and may result in lower contribution rates due to the capped annual adjustment, it also creates variability, as the rate will be set annually at the Secretary’s discretion. Additionally, the presence of defined suspension thresholds may provide periods of relief depending on fund balances. Overall, employers may see changes in their UI tax calculations and should anticipate less predictability in year-over-year contribution amounts. Recommended Action for Employers Employers should closely monitor annual unemployment insurance tax rate notices, particularly beginning in 2027, to understand how the revised rate-setting process impacts their contributions. Coordination with payroll providers or tax advisors is recommended to ensure accurate budgeting and compliance. Employers should also stay informed on announcements from the Kentucky Office of Unemployment Insurance regarding rate adjustments or suspension of contributions, as these changes may affect cost planning and forecasting.

Nebraska Legislative Alert 847 Change Notification Nebraska LB 847 revises how the combined unemployment insurance (UI) tax rate is allocated between the employer contribution rate and the state unemployment insurance tax rate when the state UI tax rate is greater than zero. Under prior law, at least 80% of the combined rate was required to be assigned to the contribution rate and no more than 20% to the state UI tax rate. This measure changes that formula so that at least 50% of the combined rate must be attributed to the contribution rate and no more than 50% may be assigned to the state UI tax rate. The existing provision remains in place for employers with a combined tax rate of 5.4% or greater, where the state UI tax rate is zero and the full rate is assigned to the contribution rate. Effective Date April 7, 2026 Nebraska Legislative Alert 847 Implication to Stakeholders While the total combined UI tax rate may not necessarily increase, this change allows for a greater portion of the rate to be allocated to the state unemployment insurance tax component rather than the experience-rated contribution portion. As a result, employers may experience a shift in how their rates are structured, potentially reducing the direct impact of claims experience on a portion of their overall tax rate. However, it may also reduce predictability in how rates are distributed year-over-year, depending on how the state applies this flexibility. Recommended Action for Employers Employers should review their unemployment tax rate notices carefully to understand how their combined rate is being allocated under the revised formula. It is advisable to continue focusing on effective claims management practices, as the contribution rate component remains experience-based and subject to employer control. Employers may also want to consult with their unemployment insurance advisor to evaluate any shifts in tax rate composition and ensure they are prepared for potential changes in how their UI taxes are calculated going forward.

Maryland House Bill 242 Change Notification Maryland House Bill 242 updates the state’s unemployment insurance (UI) confidentiality provisions to align more closely with federal requirements. Specifically, the measure revises how the Maryland Department of Labor handles, safeguards, and discloses UI-related information so that it complies with governing federal statutes, including the Social Security Act, the Federal Unemployment Tax Act (FUTA), and implementing regulations such as 20 C.F.R. Part 603. These federal rules establish strict standards for the confidentiality, disclosure, and permissible use of UI data, and the bill ensures Maryland law is consistent with those standards. Effective Date Upon enactment Maryland HB 242 Implication to Stakeholders For employers, this change primarily affects how unemployment insurance information, such as wage data, contribution records, and claim details, may be shared or accessed. Employers may experience tighter controls around the release of UI information and potentially more formalized processes when requesting or responding to information from the state. While the change does not directly alter tax rates or benefit eligibility, it reinforces data privacy requirements and may limit informal or broad access to claim-related information, emphasizing compliance and proper authorization. Recommended Action Employers should review their internal processes for handling unemployment insurance information to ensure they align with stricter confidentiality standards. This includes confirming that only authorized personnel access UI data, maintaining secure recordkeeping practices, and responding appropriately to state requests for information. Employers may also want to coordinate with their third-party administrators or legal advisors to ensure continued compliance and to understand any procedural changes in how UI information is requested or disclosed under the updated law.

Washington Senate Bill 6134 Change Notification Washington Senate Bill 6134 updates the state’s unemployment insurance (UI) law by requiring the Employment Security Department (ESD) to provide clear notice to workers who apply for benefits due to a strike. Specifically, workers must be informed that if they later receive retroactive wages, such as back pay following a strike resolution, for weeks in which they also collected UI benefits, they may be subject to an overpayment determination. The law does not change the state’s authority to recover overpaid benefits but formalizes the requirement that workers be notified of this possibility in advance. It also outlines acceptable methods of delivering this notice, includes a federal conformity provision to ensure continued federal funding and tax credit eligibility, and establishes that this notice requirement will remain in effect through December 31, 2035. Effective Date Immediately Washington SB 6134 Implication to Stakeholders While the primary obligation under this law falls on the state, employers may see increased scrutiny and coordination around strike-related claims and any subsequent retroactive wage payments. If retroactive wages are issued following a strike, those payments could trigger overpayment determinations for impacted employees, potentially leading to administrative follow-up or inquiries involving the employer. This may also influence how claims are adjudicated and how employer accounts are impacted, particularly if benefit payments are later reversed or recovered. Recommended Employer Action Employers should ensure accurate and timely documentation of any strike activity and clearly track any retroactive wage payments made to employees following a labor dispute. It is advisable to coordinate closely with internal payroll and HR teams to ensure consistency in reporting and to respond promptly to any ESD inquiries. Employers may also benefit from reviewing their internal processes for handling strike-related claims to minimize administrative complications and ensure compliance with evolving UI requirements.

Pennsylvania House Bill 274 Change Notification Pennsylvania House Bill 274 expands eligibility for unemployment compensation by allowing individuals who are victims of domestic violence to qualify for benefits under certain circumstances. The measure permits claimants to confidentially submit “reasonable evidence” of recent domestic violence when applying for benefits. Importantly, the law removes the requirement that individuals provide formal documentation such as a police report or protective order, broadening the types of acceptable proof and lowering barriers to eligibility. Effective Date Immediately Pennsylvania HB 274 Implication to Stakeholders This change may result in an increase in unemployment claims that are approved under circumstances where an employee voluntarily leaves employment due to domestic violence. Because the evidentiary standard is more flexible and confidentiality is emphasized, employers may have limited visibility into the specifics of the claim and fewer opportunities to contest eligibility based on lack of traditional documentation. As a result, employers could see a potential impact on their unemployment tax rates if more claims are charged to their accounts. Recommended Employer Action Employers should review and update their internal policies and procedures related to employee separations and unemployment claims to account for this expanded eligibility category. It is advisable to ensure that HR and management teams are trained to handle sensitive situations involving domestic violence appropriately and to document separations carefully, while respecting employee privacy. Additionally, employers should monitor unemployment claims closely and work with their unemployment cost management partners to evaluate chargeability and respond appropriately within the bounds of the updated law.

Washington Senate Bill 5874 Change Notification Washington Senate Bill 5874 updates and clarifies employer reporting requirements under the state’s unemployment insurance (UI) program. Employers are now explicitly required to maintain accurate employment records and report detailed information, including employee wages, hours worked, and job titles or standard occupational classifications. The law allows employers to correct reporting errors in a timely manner without penalty, which provides some flexibility for compliance. Additionally, the measure refines reporting obligations for certain entities such as contractors and federally recognized tribes and establishes default methods for calculating hours worked when employers fail to report them. It also revises penalty provisions by introducing a graduated structure for late, incomplete, or inaccurate reports, along with clearer standards for waivers and stronger enforcement authority in cases of misrepresentation or unpaid contributions. Effective Date June 2026 Washington SB 5874 Implication to Stakeholders This change increases the level of detail and accuracy expected in employer wage and hour reporting, which may require adjustments to payroll systems and internal processes. Employers face greater exposure to penalties if reports are late or inaccurate, particularly under the enhanced enforcement provisions. However, the ability to make timely corrections without penalty offers some protection for employers who identify and fix errors quickly. Overall, employers should expect closer scrutiny of their reporting practices and a greater administrative emphasis on compliance, especially for organizations with complex workforces or contractor relationships. Recommended Employer Action Employers should review and, if necessary, update their payroll and reporting systems to ensure they can capture and report all required data elements accurately, including hours worked and job classifications. Internal processes should be evaluated to confirm that reporting deadlines are consistently met and that there are controls in place to identify and correct errors promptly. Employers may also benefit from training HR and payroll personnel on the updated requirements and documenting procedures for handling corrections. For organizations that utilize contractors or have unique reporting structures, consulting with a UI specialist or advisor is recommended to ensure full compliance and minimize the risk of penalties.

Main LD 2101 Change Notification Maine LD 2101 introduces a new financial penalty for employers whose unemployment insurance (UI) payments are returned unpaid under the state’s Employment Security Law. If a payment fails for any reason, such as insufficient funds, a closed or invalid account, or a stop-payment order, the Maine Department of Labor is required to assess a penalty. The penalty will be the greater of $25 or 1% of the unpaid contribution amount. This formalizes a consistent consequence for invalid or rejected UI payments. Effective Date Maine LD 2101 introduces a new financial penalty for employers whose unemployment insurance (UI) payments are returned unpaid under the state’s Employment Security Law. If a payment fails for any reason, such as insufficient funds, a closed or invalid account, or a stop-payment order, the Maine Department of Labor is required to assess a penalty. The penalty will be the greater of $25 or 1% of the unpaid contribution amount. This formalizes a consistent consequence for invalid or rejected UI payments. Main LD 2101 Implication to Stakeholders This change increases the financial and administrative risk associated with errors in UI payment processing. Even inadvertent issues, such as banking errors or timing mismatches, can now result in additional costs. Employers with high contribution volumes or frequent transactions may be particularly exposed, as even small percentage-based penalties can accumulate. Additionally, repeated payment failures could draw increased scrutiny from the state and potentially impact an employer’s compliance standing. Recommended Action Employers should review and strengthen their internal payroll and payment processes to ensure all UI contributions are accurate and successfully processed on the first attempt. This includes verifying bank account information, maintaining sufficient account balances, and coordinating closely with payroll providers or third-party administrators. Implementing internal controls or payment verification steps prior to submission can help prevent avoidable penalties. Regular reconciliation of UI payments and prompt resolution of any rejected transactions will also be critical under this new requirement.

Indiana Senate Bill 162 Change Notification This measure makes several changes to Indiana’s unemployment insurance law that may affect benefit eligibility, employer coverage, and claims processing: Vacation and sick pay excluded from deductible income Payments for accrued vacation or sick leave will no longer be treated as deductible income when determining unemployment benefits. As a result, individuals may be eligible to receive full unemployment benefits even if they receive these types of payments at separation. “Suitable work” definition limited to extended benefit claims The definition of suitable work has been narrowed to apply primarily to extended benefit claims. This change may impact how refusals of work are evaluated outside of extended benefit periods. Revised definition of employment for certain organizations The law removes the requirement that religious, charitable, and educational organizations must employ four or more individuals to be considered subject to unemployment insurance. This change may expand coverage to smaller organizations that were previously excluded. Limited direct deposit disbursements authorized The Department of Workforce Development is now permitted to issue certain unemployment benefit payments via direct deposit, allowing for more efficient distribution of benefits. Additional benefits for disaster unemployment assistance claims Individuals filing for Disaster Unemployment Assistance may qualify for expanded benefits under qualifying circumstances, increasing the potential duration or amount of assistance available. Effective Date July 1, 2026 Indiana SB 162 Implication to Stakeholders These changes may result in increased unemployment benefit payouts on certain claims, particularly due to the exclusion of vacation and sick pay from deductible income, which could impact employer chargeability and future unemployment tax rates. Employers, especially smaller religious, charitable, and educational organizations, should review their status to determine if they are now subject to unemployment insurance coverage and related reporting requirements. Additionally, adjustments to how “suitable work” is defined may influence claim determinations involving job refusals. Overall, employers should be prepared for potential changes in claims handling, benefit costs, and compliance obligations under Indiana law. Recommended Action Employers should review their separation and payroll practices to account for the exclusion of vacation and sick pay from deductible income, as this may increase potential claim costs. Organizations, particularly smaller religious, charitable, and educational employers, should evaluate whether they are now subject to unemployment insurance coverage and ensure proper registration and reporting compliance. Employers should also monitor unemployment claims more closely, including job refusal issues, and respond promptly to agency requests. Finally, consider consulting with your unemployment insurance representative or advisor to assess potential impacts on your tax rate and claims strategy.

Washington House Bill 2264 Change Notification Washington House Bill 2264 expands the definition of when an employee is considered unemployed “through no fault of their own” for unemployment insurance purposes. Individuals who voluntarily elect to be included in a layoff or workforce reduction, after the employer initiates the process, may still qualify for unemployment benefits. Specifically, if the employer announces a planned reduction in force and an employee volunteers to be part of that reduction, the separation will still be treated as employer-initiated. The law also clarifies that allowing an employee to rescind their offer to be included in the layoff does not impact eligibility, and it excludes situations involving voluntary early retirement incentives or benefit modifications. Effective Date 90 days after adjournment Washington HB 2264 Implication to Stakeholders This change broadens eligibility for unemployment benefits in workforce reduction scenarios, which may lead to an increase in chargeable claims against employer accounts. Even when employees proactively volunteer for separation, these separations will generally be treated as employer-driven if the layoff process was initiated by the employer. As a result, employers may see higher unemployment insurance costs and reduced ability to contest claims on the basis that the separation was voluntary. Recommended Action Employers should review and potentially revise their workforce reduction policies and communication strategies to ensure clarity around layoff processes. It is advisable to carefully document that the employer initiated the reduction and maintain detailed records of all employee communications and decisions. Additionally, employers should anticipate potential increases in unemployment claims tied to voluntary layoff participation and consider incorporating this into workforce planning and cost projections. Consulting with unemployment insurance advisors or legal counsel can also help ensure compliance and effective claim management under the new standard.

California Senate Bill 854 Change Notification This measure updates the California Unemployment Insurance Code to clarify how official notices can be delivered. Specifically, it expands the definition of “mail,” “mailed,” or “mailing” to include not only traditional paper documents sent through the U.S. Postal Service or other carriers, but also electronic communications such as emails or online notifications. Effective Date January 1, 2026 California SB 854 Implication to Stakeholders For employers, this means that important unemployment insurance notices—such as claim determinations, requests for information, or appeal deadlines—may be sent electronically rather than by paper mail. As a result, it is important to regularly monitor any designated email addresses or online accounts to ensure timely responses and avoid missing critical deadlines that could impact claims or your unemployment tax rate. Recommended Action Employers should review and update their internal processes for receiving unemployment insurance communications. This includes confirming that the correct email addresses are on file with the state, regularly monitoring designated inboxes and employer portals, and assigning responsibility to a specific individual or team for timely review and response to all notices. Employers may also want to implement backup monitoring procedures, such as shared inboxes or alerts, to reduce the risk of missed communications that could negatively impact claims outcomes or unemployment tax rates.

West Virginia Senate Bill 1053 Change Notification West Virginia Senate Bill 1053 authorizes the creation of a new Unemployment Automation and Administration Fund. This fund will be financed by assessing an annual fee of 7% of the employer’s taxable wages for the twelve-month period ending the preceding June 30. The assessment is subject to an annual cap of $18 million and only if the state’s unemployment trust fund balance remains above $300 million. Employers with a rate equal to zero are exempt from the payment of this assessment. Each liable employer will be notified of the amount due by March 31 of each year. The amount due will be considered delinquent if not paid within 30 days of the mailing date. The purpose of the fund is to modernize the state’s unemployment insurance systems, enhance job search and workforce development services, and support administrative operations. The Commissioner of WorkForce West Virginia is granted authority to implement and manage the fund through rulemaking. Effective Date July 1, 2026 West Virginia SB 1053 Implication for Stakeholders While this measure does not increase overall employer contribution rates, it creates an additional tax to be paid outside of the employers’ quarterly tax payment and is for administrative and system improvements rather than directly into the unemployment trust fund. Employers may indirectly benefit from more efficient claims processing, improved system functionality, and enhanced workforce services. However, there may be some concern around how long this assessment may be in place.  Once the fund reaches $60 million or July 1, 2031, whichever comes first, the assessment will be discontinued.  Recommended Action Employers should monitor communications from WorkForce West Virginia regarding any operational or procedural updates tied to system modernization efforts. It would also be prudent to stay informed on any future rulemaking that could affect reporting, claims handling, or employer responsibilities. Internally, employers may want to review their unemployment claims management processes to ensure they are prepared to take advantage of improved system capabilities as they are implemented.

Having spent decades working with unemployment programs across the country—from state agencies to employer groups to TPAs—I’ve seen many changes in how states administer unemployment claims. Some changes feel routine. Others signal a shift toward modernization. New Jersey’s recent passage of S.2357 falls into the second category. The law is designed to improve communication between employers and the New Jersey Department of Labor (NJDOL) by ensuring the state receives separation details sooner and more consistently. Recently, the Association of Unemployment Tax Organizations (AUTO) asked NJDOL to clarify several operational questions. The department’s written responses finally give employers a clearer picture of what to expect as the state moves forward with implementation. Below is a practical, easy-to-digest summary of what New Jersey employers should know. 1. The Heart of S.2357: Two Options for Employers NJDOL has confirmed that employers have two ways to meet the new requirement. Employers do not have to do both—just one. You must either: Option 1 — Respond to the UI claim notice within 7 days, or Option 2 — Provide the separation information in the employer portal within 7 days of separation. Either option satisfies the requirement on its own. Submitting the separation information at the time of separation is preferred because it gives the agency a head start and often leads to quicker, more accurate determinations. However, NJDOL emphasized that this is not mandatory.  If an employer simply responds to the initial claim notice within the 7-day timeframe, the requirement is considered met. This clarification should bring relief to many employers who feared the law imposed two separate, and potentially duplicative, steps. 2. About That $500 Penalty… You may have heard S.2357 includes a $500 penalty for failing to provide separation information. Here’s what NJDOL shared: The penalty remains part of the statute. NJDOL is not enforcing it at this time. The agency wants to give employers time to adjust to the new system. Enforcement could begin at a later date once the system is fully operational. In short, the penalty exists, but employers should focus on learning the process rather than worrying about fines right now. 3. Employer Access (EA) Portal Registration: The First Step To participate in the new reporting process, employers must activate their Employer Access (EA) account within the MyNewJersey system. NJDOL clarified the following: Employers need a unique authorization code to register. These codes were mailed to employers in July 2024. A follow-up statewide mailing is planned for January 2026 for employers who didn’t receive or misplaced their code. Employers must register before a TPA can link to their account. After the employer registers, the TPA can request access using the employer’s EIN and authorization code. The employer then approves (or denies) the request via email. Registration is truly the gateway to everything else. Without it, employers and TPAs cannot begin using the new separation reporting system. 4. Submitting Separation Details Early: How NJDOL Uses the Data Many employers asked how the state will handle separation information submitted before a former employee files a UI claim. NJDOL shared the following helpful process: Early separation details will be stored in the system but not acted upon immediately. The system will crossmatch this information daily against new UI claims. When a match occurs, the claimant will receive a fact-finding questionnaire that includes the employer’s earlier statement. If the employee never files for benefits, nothing is sent to the individual—and the information simply remains on record. This optional early submission can improve accuracy and reduce back-and-forth between employers, claimants, and the agency. 5. Practical Advice Moving Forward Based on NJDOL's responses, here’s what I would advise employers right now: Register your EA account as soon as you have your authorization code—this unlocks everything. Choose the approach that best fits your workflow: respond to the claim within 7 days OR post the separation at the time of separation. Don’t stress about penalties right now but do build good habits early. Stay in communication with your TPA so responsibilities are clear and aligned. Expect further refinement, as with any modernization effort, changes may continue as the system evolves. New Jersey’s intent is not to burden employers but to create a more consistent and efficient UI process. With clear expectations and the ability to choose the method that works best for your organization, compliance should feel manageable—not overwhelming. Experian Employer Services will continue to provide updates and best practices as available.

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.