Relates to the duration of rights of benefits

BILL NUMBER:S107

Title of bill

An act to amend the labor law, in relation to the duration of rights of benefits

Purpose

This bill would reduce the number of weeks that an individual in New York can collect State unemployment benefits from 26 weeks to as few as 16 weeks if unemployment falls below 5.5% in the claimants county of residence with an additional week added for each 0.3% increase in the county unemployment rate up to a maximum of 26 weeks.

Summary of provisions

§ 1- Amends Subdivision 4 of section 590 of the labor law to change the duration that benefits are limited to.

Justification

When unemployment is extraordinarily high, it is sometimes necessary for claimants be provided 6 months to have the opportunity to find employment in a challenging job market. As the unemployment rate decreases because the job market improves the amount of time needed to find suitable employment should be reduced as well. This will prevent claimants who become unemployed during a time of low unemployment from delaying their job search until the final weeks of their unemployment benefits.

Most importantly, this will reduce the unemployment taxes paid by employers. These taxes raise the cost of doing business and lead to higher consumer prices and reduced willingness of employers to hire. Similar reform of the duration of unemployment benefits was included in Florida's recent comprehensive unemployment compensation program reform measures estimated to reduce unemployment taxes for employers by over $600 million.

Legislative history

2011/2012: S.6992 Referred to Labor

Effective date

Immediately.