What's happening
This bill updates New York labor law to change how partial unemployment benefits are calculated, replacing daily calculations with weekly ones and revising definitions and benefit formulas.
Why it matters
Shifts partial unemployment calculations from a daily to a weekly basis,. potentially making it easier for part-time workers to qualify for benefits and reducing confusion over eligibility, as well as aligning with how most employers and workers track pay.
Introduces and defines a “partial benefit credit”. allowing workers to earn up to 50% of their weekly benefit rate or $100 (whichever is greater) from part-time work before their unemployment benefits are reduced, which could incentivize part-time work without immediate loss of benefits.
Aims to simplify and modernize the unemployment insurance system. by standardizing language (replacing “days” with “weeks”) and updating benefit formulas, which could make the process more predictable and transparent for both claimants and employers.
Alters employer liability for unemployment insurance charges,. notably shortening the period for which certain employers (like schools, the federal government, or out-of-state employers) are exempt from charges for new claims—potentially increasing financial responsibility for employers and shifting some costs to the state’s general account.
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Headline styles
Update Unemployment Benefit Rules
Plain English, a few words. Used as the page title.
Sponsors
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.
Update Unemployment Benefit Rules
In Senate Committee · Labor · Sponsor Albert A. Stirpe
Full text
9 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
5754
2019-2020 Regular Sessions
IN SENATE
May 14, 2019
Introduced by Sen. RAMOS -- 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 the calculation of weekly employment insurance benefits for workers who are partially unemployed; and repealing certain provisions of such law relating thereto
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Section 522 of the labor law, as amended by chapter 720 of the laws of 1953, is amended to read as follows:
§ 522. Total unemployment and partial unemployment. "Total unemployment" means the total lack of any employment [on any day] during any week. "Partial employment" means any employment during any week that is less than full-time employment so long as the compensation paid is less than the claimant's weekly benefit rate plus the claimant's partial benefit credit. The term "employment" as used in this section means any employment including that not defined in this title.
§ 2. Section 523 of the labor law is REPEALED and a new section 523 is added to read as follows:
§ 523. Effective week. "Effective week" means (a) a week during which a claimant performs no services for which the claimant is paid compensation, or (b) a week during which a claimant performs services on a part-time basis for which the claimant is paid compensation that is less than the claimant's weekly benefit rate plus his or her partial benefit credit.
§ 3. The labor law is amended by adding a new section 525 to read as follows:
§ 525. Partial benefit credit. "Partial benefit credit" means that part of the compensation, if any, paid to a claimant with respect to a week for which benefits are claimed under the provisions of this law which is not in excess of fifty per centum of the individual's weekly benefit rate, or one hundred dollars, whichever is the greater. Such
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD00546-01-9
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partial benefit credit, if not a multiple of one dollar, shall be computed to the next higher multiple of one dollar.
§ 4. Subdivision 4 of section 527 of the labor law, as amended by chapter 832 of the laws of 1968 and as renumbered by chapter 381 of the laws of 1984, is amended to read as follows:
4. General condition. A valid original claim may be filed only in a week [in which the claimant has at least one effective day of unemployment] that qualifies as an effective week of unemployment for the claimant.
§ 5. Subparagraph 2 of paragraph (e) of subdivision 1 of section 581 of the labor law, as amended by chapter 282 of the laws of 2002 and clause (v) as added by chapter 106 of the laws of 2007, is amended to read as follows:
(2) Benefits payable to any claimant with respect to the claimant's then current benefit year shall be charged, when paid, to the account of the last employer prior to the filing of a valid original claim in an amount equal to seven times the claimant's benefit rate. Thereafter, such charges shall be made to the account of each employer in the base period used to establish the valid original claim in the same proportion that the remuneration paid by each employer to the claimant during that base period bears to the remuneration paid by all employers to the claimant during that base period except as provided below:
(i) In those instances where the claimant may not utilize wages paid to establish entitlement based upon subdivision ten of section five hundred ninety of this article and an educational institution is the claimant's last employer prior to the filing of the claim for benefits, or the claimant performed services in such educational institution in such capacity while employed by an educational service agency which is the claimant's last employer prior to the filing of the claim for benefits, such employer shall not be liable for benefit charges for the first [twenty-eight effective days] seven effective weeks of benefits paid as otherwise provided by this section. Under such circumstances, benefits paid shall be charged to the general account. In addition, wages paid during the base period by such educational institutions, or for services in such educational institutions for claimants employed by an educational service agency shall not be considered base period wages during periods that such wages may not be used to gain entitlement to benefits pursuant to subdivision ten of section five hundred ninety of this article.
(ii) In those instances where the claimant may not utilize wages paid to establish entitlement based upon subdivision eleven of section five hundred ninety of this article and an educational institution is the claimant's last employer prior to the filing of the claim for benefits, or the claimant performed services in such educational institution in such capacity while employed by an educational service agency which is the claimant's last employer prior to the filing of the claim for benefits, such employer shall not be liable for benefit charges for the first [twenty-eight effective days] seven effective weeks of benefits paid as otherwise provided by this section. Under such circumstances, benefits paid will be charged to the general account. In addition, wages paid during the base period by such educational institutions, or for services in such educational institutions for claimants employed by an educational service agency shall not be considered base period wages during periods that such wages may not be used to gain entitlement to benefits pursuant to subdivision eleven of section five hundred ninety of this article. However, in those instances where a claimant was not
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afforded an opportunity to perform services for the educational institution for the next academic year or term after reasonable assurance was provided, such employer shall be liable for benefit charges as provided for in this paragraph for any retroactive payments made to the claimant.
(iii) In those instances where the federal government is the claimant's last employer prior to the filing of the claim for benefits and such employer is not a base-period employer, payments equaling the first [twenty-eight effective days] seven effective weeks of benefits as otherwise prescribed by this section shall be charged to the general account. In those instances where the federal government is the claimant's last employer prior to the filing of the claim for benefits and a base-period employer, such employer shall be liable for charges for all benefits paid on such claim in the same proportion that the remuneration paid by such employer during the base period bears to the remuneration paid by all employers during the base period. In addition, benefit payment charges for the first [twenty-eight effective days] seven effective weeks of benefits other than those chargeable to the federal government as prescribed above shall be made to the general account.
(iv) In those instances where a combined wage claim is filed pursuant to interstate reciprocal agreements and the claimant's last employer prior to the filing of the claim is an out-of-state employer and such employer is not a base-period employer, benefit payments equaling the first [twenty-eight effective days] seven effective weeks of benefits as otherwise prescribed by this section shall be charged to the general account. In those instances where the out-of-state employer is the last employer prior to the filing of the claim for benefits and a base-period employer such employer shall be liable for charges for all benefits paid on such claim in the same proportion that the remuneration paid by such employer during the base period bears to the remuneration paid by all employers during the base period. In addition, benefit payment charges for the [twenty-eight effective days] seven effective weeks of benefits other than those chargeable to the out-of-state employer as prescribed above shall be made to the general account.
(v) In those instances where the last employer prior to the filing of a valid original claim has paid total remuneration to the claimant during the period from the start of the base period used to establish the benefit claim until the date of the claimant's filing of the valid original claim in an amount less than or equal to six times the claimant's benefit rate and the last employer has substantiated such amount to the satisfaction of the commissioner within ten days of the commissioner's original notice of potential charges to such last employer's account, benefits shall be charged as follows: benefits payable to the claimant with respect to the claimant's then current benefit year shall be charged, when paid, to the account of such last employer prior to the filing of a valid original claim in an amount equal to the lowest whole number (one, two, three, four, five, or six) times the claimant's benefit rate where the product of such lowest whole number times the claimant's benefit rate is equal to or greater than such total remuneration paid by such last employer to the claimant. Thereafter, such charges shall be made to the account of each employer in the base period used to establish the valid original claim in the same proportion that the remuneration paid by each employer to the claimant during that base period bears to the remuneration paid by all employers to the claimant during that base period. Notice of such recalculation of potential charges shall be given to the last employer and each employer of the claimant in the base period used to establish the valid original claim.
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§ 6. Subdivision 1 of section 590 of the labor law, as amended by chapter 645 of the laws of 1951, is amended to read as follows:
1. Entitlement to benefits. A claimant shall be entitled to accumulate effective [days] weeks for the purpose of benefit rights only if he has complied with the provisions of this article regarding the filing of his claim, including the filing of a valid original claim, registered as totally or partially unemployed, reported his subsequent employment and unemployment, and reported for work or otherwise given notice of the continuance of his unemployment.
§ 7. Subdivision 3 of section 590 of the labor law, as amended by chapter 645 of the laws of 1951, is amended to read as follows:
3. Compensable periods. Benefits shall be paid for each [accumulation of] effective [days within a] week.
§ 8. Subdivision 4 of section 590 of the labor law, as amended by chapter 457 of the laws of 1987, is amended to read as follows:
4. Duration. Benefits shall not be paid [for more than one hundred and four effective days] in an amount greater than twenty-six times the claimant's weekly benefit rate in any benefit year, except as provided in section six hundred one and subdivision two of section five hundred ninety-nine of this chapter.
§ 9. Subdivision 5 of section 590 of the labor law is amended by adding two new paragraphs (c) and (d) to read as follows:
(c) Benefit for partial unemployment. Except as provided in paragraph (d) of this subdivision, any claimant who is partially unemployed with respect to any effective week shall be paid, with respect to such effective week, a benefit equal to his weekly benefit rate less the total of the remuneration, if any, paid or payable to him with respect to such week for services performed which is in excess of his partial benefit credit.
(d) Benefit for partial unemployment for certain claimants working one day in a week. Any claimant who is partially unemployed with respect to any effective week but whose employment is limited to one day during that effective week and whose remuneration paid or payable to him with respect to such week for services performed is less than his weekly benefit rate shall be paid, with respect to such effective week, a benefit equal to three-quarters of his weekly benefit rate, or if higher, the benefit calculated pursuant to paragraph (c) of this subdivision.
§ 10. Subdivision 6 of section 590 of the labor law, as added by chapter 720 of the laws of 1953 and as renumbered by chapter 675 of the laws of 1977, is amended to read as follows:
6. Notification requirement. No effective [day] week shall be counted for any purposes except effective [days] weeks as to which notification has been given in a manner prescribed by the commissioner.
§ 11. Subdivision 7 of section 590 of the labor law, as amended by chapter 415 of the laws of 1983, is amended to read as follows:
7. Waiting period. A claimant shall not be entitled to accumulate effective [days] weeks for the purpose of benefit payments until he has accumulated a waiting period of [four effective days either wholly within the week in which he established his valid original claim or partly within such week and partly within his benefit year initiated by such claim] one effective week.
§ 12. Subdivision 1 of section 591 of the labor law, as amended by chapter 413 of the laws of 2003, is amended to read as follows:
1. Unemployment. Benefits, except as provided in section five hundred ninety-one-a of this title, shall be paid only to a claimant who is totally unemployed or partially unemployed and who is unable to engage
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in his usual employment or in any other for which he is reasonably fitted by training and experience. A claimant who is receiving benefits under this article shall not be denied such benefits pursuant to this subdivision or to subdivision two of this section because of such claimant's service on a grand or petit jury of any state or of the United States.
§ 13. Subdivision 1 of section 591 of the labor law, as amended by chapter 446 of the laws of 1981, is amended to read as follows:
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 the calculation of weekly employment insurance benefits for workers who are partially unemployed; and repealing certain provisions of such law relating thereto
Purpose or general idea of bill
To ensure that partially unemployed workers have meaningful access to unemployment insurance benefits.
Summary of specific provisions
This bill amends various sections of Article 18 of the labor law in order to:
(1) replace the current system for determining eligibility for partial unemployment insurance benefits with a system that is based on the claimant's weekly earnings rather than the number of days the claimant worked during the week;
(2) establish a system of calculating partial unemployment insurance benefits that disregards a portion of part-time earnings before reducing benefits by one dollar for each dollar of earnings up to the full weekly benefit amount: and
(3) provide that any individual who earns significant part-time earnings an a single day during the week, up to the maximum allowable amount, will receive a partial benefit equal to three-quarters or his or her full weekly benefit amount.
Justification
By imposing a 25-percent reduction to a claimant's full benefit for any work performed on a single day, New York's unemployment insurance program fails to provide an adequate level of income security for work- ers experiencing reductions in their usual hours and earnings; at the same time, it creates perverse incentive that may discourage claimants from returning to part-time work, particularly for three days or more.
The adverse consequences of current law are two-fold: during a time when businesses are still suffering from lack of customers, New York's UI program is inadvertently suppressing local economic activity and job creation by denying benefits to the very people who aced and will quick- ly spend them. UI benefits are among the most effective forms of econom- ic stimulus, generating between $1.61 and $2.00 of additional activity for every dollar allocated. Furthermore, many of New York's current claimants are afraid they will end up financially worse off by accepting a part-time job. This can be risky as the worker's professional skills may languish and the fact of extended unemployment may itself became an obstacle to reemployment. This disincentive has significant cost impli- cations for the state's UI trust fund.
This legislation is modeled on partial unemployment insurance require- ments in Connecticut and Pennsylvania which permit claimants to earn more than the value of their full benefit for a week of part-time work;
similarly, these states disregard an amount of part-time earnings that is tied to the claimant's full benefit.
This bill represents a necessary step towards ensuring that New York's UI program provides partially unemployed workers with the support they need to meet their most basic needs. Not addressing the current system inequities in an economy with a persistently high number of part-time jobs may compromise the health of the UI trust fund by discouraging part-time reemployment and by suppressing the very consumer demand New York's economy requires in order to return to full employment.
Prior legislative history
A.11490 of 2009-2010 Reported to Ways and Means; A.6139 of 2011-2012: Reported to Ways and Means (Same as 5.4925: Referred to Labor); A.7278 of 2013-2014: Referred to Labor (Same as S.3393: Referred to Labor) A.4839 of 2015-2016: Passed Assembly, died in Senate A1857 of 2017-2018: Referred to Labor, Original Member left assembly
Fiscal implications
To Be Determined
Effective date
Immediately.
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