What's happening
This bill limits certain employers' liability for unemployment insurance by shifting charges for some voluntarily separated employees to the general account.
Why it matters
Shifts the financial responsibility. for unemployment benefits paid to employees who voluntarily leave their jobs from the specific employer’s account to the general unemployment insurance account, potentially lowering costs for certain employers.
May reduce the impact on an employer’s unemployment insurance tax rate. by preventing charges related to voluntary quits from being attributed to that employer, thereby making future layoffs less costly for employers in terms of their unemployment insurance contributions.
Could influence employer-employee relations and hiring decisions. employers may be less concerned about the unemployment insurance consequences of voluntary separations, while employees who quit voluntarily might still be eligible for benefits (subject to other requirements), with the cost spread across all contributing employers.
Removes previous language. that also shifted charges for “voluntary separation without good cause,” refining and clarifying the conditions under which employers are relieved of these charges and focusing only on voluntary separation, not including cases of misconduct.
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Who cares
Headline styles
No Jobless Pay for Quitters
Plain English, a few words. Used as the page title.
Sponsors
1 Co-sponsor
History
- 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.
No Employer Liability for Quits
In Assembly Committee · Labor · Sponsor Brian Kolb
Full text
1 pageUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
327
2019-2020 Regular Sessions
IN SENATE (Prefiled)
January 9, 2019
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.
LBD04091-01-9
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
2018: S5091 - Reported and Committed to Finance 2017: S5091 - Referred to Labor 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.