What's happening
This bill limits employer liability for unemployment insurance charges when employees voluntarily leave their jobs, shifting those charges to the general account.
Why it matters
Reduces financial risk for employers. when employees quit voluntarily, as employers’ unemployment insurance accounts will no longer be charged in these cases—potentially making hiring and retention less risky for businesses.
Shifts unemployment benefit costs. for voluntary separations from individual employers to the state’s general unemployment insurance account, which could spread costs across all employers and possibly impact overall fund solvency or employer tax rates in the long run.
May change employee and employer behavior. Employees might find it easier to claim unemployment benefits after quitting, while employers may be less likely to contest claims, knowing they won’t be directly financially liable.
Could affect the unemployment insurance trust fund. by increasing the number of claims paid from the general account rather than from employer-specific accounts, raising questions about the sustainability and funding of the system.
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Who cares
Employers whose workers voluntarily leave
The bill would shift benefit charges tied to those workers’ base-period employment from the employer’s account to the general account.
Workers who voluntarily leave employment
The bill would change which account bears charges for benefits paid to them, rather than establish their eligibility for benefits.
New York State unemployment insurance administrators
They would apply a separate charge-shifting rule for voluntary separations without the existing provision’s references to a disqualification period or lack of good cause.
Headline styles
No Unemployment Pay for Quitters
Plain English, a few words. Used as the page title.
Sponsors
1 Co-sponsor
History
- Reported and committed to finance
- Referred to labor
- Referred to labor
Companion bill
The same bill in the other chamber. A bill becomes law when one version passes both houses and the governor signs it, so either number can carry it.
Employers Not Liable for Quitters
In Assembly Committee · Labor · Sponsor Brian Kolb
Full text
1 pageUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
5091
2017-2018 Regular Sessions
IN SENATE
March 7, 2017
Introduced by Sen. AKSHAR -- read twice and ordered printed, and when printed to be committed to the Committee on Labor
AN ACT to amend the labor law, in relation to limiting the liability of certain employers for unemployment insurance coverage
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Paragraph (e) of subdivision 1 of section 581 of the labor law is amended by adding a new subparagraph 2-a to read as follows:
(2-a) An employer's account shall not be charged, and the charges shall instead be made to the general account, for benefits paid to an employee who voluntarily separated from employment and the charges are attributable to weeks of the claimant's base period of employment with such employer prior to the employee's voluntary separation of employment.
§ 2. Subparagraph 3 of paragraph (e) of subdivision 1 of section 581 of the labor law, as amended by section 6 of part O of chapter 57 of the laws of 2013, is amended to read as follows:
(3) An employer's account shall not be charged, and the charges shall instead be made to the general account, for benefits paid to a claimant after the expiration of a period of disqualification from benefits following a final determination that the claimant lost employment with the employer through misconduct [or voluntary separation of employment without good cause within the meaning of section five hundred ninetythree of this article] and the charges are attributable to remuneration paid during the claimant's base period of employment with such employer prior to the claimant's loss of employment with such employer through misconduct [or voluntary separation of employment without good cause], provided, however, that an employer shall not be relieved of charges pursuant to this subparagraph if an employer or its agent fails to submit information resulting in an overpayment pursuant to section five hundred ninety-seven of this article.
§ 3. This act shall take effect immediately.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD03196-01-7
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Sponsor's memo
Title of bill
An act to amend the labor law, in relation to limiting the liability of certain employers for unemployment insurance coverage
Purpose
To provide that a base period employer's account shall not be Charged when an employee quits without good cause, regardless of whether the former employee has filed and been disqualified and later files and qualifies for unemployment insurance based on subsequent employment.
Summary of provisions
Sections 1 and 2 amend paragraph (e) of subdivision 1 of section 581 of the Labor Law to eliminate charging a base period employer's account for benefits paid to an employee who voluntarily separated from employment insurance and has been disqualified from benefits.
Section 3 contains the effective date.
Justification
Chapter 165 of the Laws of 1994, which amended Section 581 of the Labor Law, intended to eliminate the associated unfairness of an unemployment insurance account charge to an employer when an employee voluntarily leaves employment without good cause and then later re-qualifies for benefits based upon subsequent employment. This bill proposes to clarify a technical oversight in Chapter 165 by stating that the base period employer's account will not be charged, regardless of whether the former employee has filed for unemployment benefits and has been disqualified prior to qualifying after subsequent employment. Instead, the charges will be made to the General Account.
Prior legislative history
2008: S2124- referred to Labor. 2006: S2395- referred to Labor. 2004: S1218- referred to Labor.
Fiscal implications
Minimal charges to the General Account.
Effective date
Immediately.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.