Expands retraining opportunities to unemployed residents of the state

Summary of provisions

Section 1 of the bill amends Labor Law section 599(1) to expand training opportunities for unemployed workers in the 599 extended benefits program. The Commissioner of Labor may approve training provided by the Workforce Investment Act; the State Departments of Labor, Education, Correctional Services, Health or Mental Health; the Empire State Development Corporation; or the SUNY Educational Opportunity Center. The Commissioner may consider whether the training enables the worker to obtain employment that pays a family sustaining wage. The training may include remedial education needed for the worker's career advancement or completion.

Section 2 of the bill amends Labor Law section 599 (2) to allow workers approved for training to access the full 26 weeks of extended benefits if they provide timely notice to the Commissioner. The cap on the use of funds from the Unemployment Insurance Trust Fund would be increased from $20 million to $50 million.

Existing law

Labor law section 599 allows workers to receive extended employment benefits while participating in a training program approved by the Commissioner of Labor. The Commissioner must consider whether the training will upgrade the worker's skills or lead to more regular long term employment. The duration of extended benefits may not exceed twice the number of regular benefits the worker is entitled to at the time he or she is approved for training. The current cap on the use of funds from the Unemployment Insurance Trust Fund is $20 million.

Justification

The unemployment insurance program was originally designed for an industrial economy where unemployment mainly resulted from temporary layoffs or furloughs when a factory shut down, due to the possibility that workers were likely to be reemployed in a job requiring the same skills, re-training was not a focus of the original unemployment insurance program.

A greater share of today's unemployed, however, require re-training in order to become gainfully employed. The current unemployment rate for New York State is 7.9%, and 9.1% for New York City. Additionally, the state unemployment rates remain disproportionately high for minorities--15.6% among blacks and 11.7% among Hispanics.

Many of these unemployed workers need new training and education to apply for new positions with employers that require a workforce with upgraded skills to perform in the new economy. The 599 extended benefits program additionally promotes access to training for lower wage workers to upgrade their place in the labor market and helps downsized workers regain their footing in the middle class.

While the state's UI system does not provide funds to pay for training courses, it can address a major problem related to retraining. Numerous jobless workers decide to drop out or do not pursue training or skills upgrading because they need to take a job -- even a substandard one -to support their families and make ends meet. This bill will enable them to continue or enroll in training programs until they obtain the skills needed to secure new jobs. In addition, should Congress decide not to continue granting extensions of unemployment benefits, the 599 program will provide a vital link to unemployed workers so that they secure new jobs more quickly and become re-employed. By continuing the payment of unemployment benefits to workers enrolled in training, the 599 program offers working families a meaningful opportunity to break the cycle of unemployment and under employment.

Legislative history

2013-2014 - S.127 2011-12: S.722 2009: S.2775 Reported to Finance; A.2131 Referred to Labor 2007-08: A.7993 Referred to Labor.

Fiscal implications

None to the State.

Effective date

This act shall take effect immediately.