The bill amends the Division of Workforce Services Law to redefine "wages," adjust unemployment compensation benefits, and modify employer contribution rates. Starting January 1, 2024, "wages" will exclude any remuneration exceeding $7,000 if the unemployment insurance trust fund balance is above $600 million. Additionally, the maximum potential benefits for insured workers will decrease from sixteen times their weekly benefit amount to twelve times for claims filed after this date. The standard employer contribution rate will also be reduced from 2.9% to 1.9%, and a new administrative assessment will replace the previous stabilization tax, with rates determined by the conditions of the Unemployment Compensation Fund.

The bill further revises language related to employer experience ratings and contribution rate reductions, while allocating a portion of the administrative assessment proceeds to the Division of Workforce Services Unemployment Insurance Administration Fund for operational and technological improvements. An emergency clause is included, stating that current unemployment stabilization tax contributions are excessive and detrimental to employment opportunities in Arkansas, asserting that the Unemployment Trust Fund is sufficiently funded to meet benefit obligations. The bill will take effect immediately upon the Governor's approval or after the veto period if no action is taken.

Statutes affected:
Old version HB1430 V2 - 2-22-2023 09:57 AM: 11-10-215(a), 11-10-504(a), 11-10-704, 02-22-2023, 11-10-705, 11-10-705(b), 11-10-715, 11-10-701, 11-10-705(a), 11-10-706, 11-10-404, 11-10-713, 11-10-703, 11-10-708, 11-10-101, 11-10-801(b), 19-5-1131(b), 19-5-1232(b)
HB 1430: 11-10-215(a), 11-10-504(a), 11-10-704, 02-22-2023, 11-10-705, 11-10-705(b), 11-10-715, 11-10-701, 11-10-705(a), 11-10-706, 11-10-404, 11-10-713, 11-10-703, 11-10-708, 11-10-101, 11-10-801(b), 19-5-1131(b), 19-5-1232(b)
Act 196: 11-10-215(a), 11-10-504(a), 11-10-704, 02-22-2023, 11-10-705, 11-10-705(b), 11-10-715, 11-10-701, 11-10-705(a), 11-10-706, 11-10-404, 11-10-713, 11-10-703, 11-10-708, 11-10-101, 11-10-801(b), 19-5-1131(b), 19-5-1232(b)