Relates to refunds of unemployment insurance to employers

Title of bill

An act to amend the labor law, in relation to refunds of unemployment insurance benefits

Purpose

To ensure that the New York State Department of Labor stops payments and issues refunds of unemployment insurance to employers in a timely manner when a claimant is ruled ineligible for unemployment insurance benefits.

Summary of provisions

Section 1: Amends section 623 of the labor law by adding a new subdivision 3 to establish a timeframe for the Department of Labor to stop and refund payments

Section 2: Provides the effective date.

Justification

New York State claims to be "open for business," but at times, businesses are hampered with excessive delays and overregulation. Currently, businesses maintain unemployment insurance accounts with a minimum balance specifically for benefit payments. When an employer challenges an unemployment claim, a hearing is conducted by a New York State Department of Labor (DOL) referee. If a referee rules that a claimant is ineligible for benefits and no appeal is filed, an employer's account can potentially continue to be charged for up to four months and may wait over a year to be refunded. The timeline of sixty and ninety days affords DOL eight and twelve payment cycles to stop and refund benefit payments, respectively.

New York State should not withhold capital that could be used to further a business's growth. By guaranteeing stopped payments and refunds in a timely manner, business owners can have more certainty in their budgeting practices.

Legislative history

This is a new bill.

Fiscal implications

None.

Effective date

This act shall take effect immediately.