House Bill No. 5271 aims to amend the unemployment compensation threshold for agricultural employers by increasing the amount of remuneration that triggers coverage under the state's unemployment law. The current threshold of $20,000 paid in any calendar quarter will be raised to $25,000, effective January 1, 2025. The bill includes a phased approach, where the new threshold will apply to remuneration paid from January 1, 2025, through December 31, 2025, and will remain at $25,000 thereafter. The bill also addresses the employment of aliens, crew leaders, and the definition of agricultural labor, with insertions and deletions adjusting the monetary thresholds and timeframes relevant to unemployment compensation for agricultural employers.

The fiscal impact of the bill includes a one-time cost to the Department of Labor for system updates and additional staff time, as well as a minor cost to the State Comptroller - Fringe Benefits account. The bill is expected to have a minimal net fiscal impact on the Unemployment Insurance Trust Fund due to an anticipated balance between the loss of taxes from exempted employers and savings in benefits to exempted employees. The bill received a Joint Favorable report from the Labor and Public Employees Committee with a unanimous vote and is set to be effective from July 1, 2024.

Statutes affected:
Raised Bill: 31-222
LAB Joint Favorable: 31-222
File No. 361: 31-222