The proposed legislation, General Assembly Raised Bill No. 5280, aims to amend section 31-225a of the general statutes to establish a noncharge to employers' experience accounts for benefits paid to employees through the voluntary shared work unemployment compensation program during periods of high unemployment or extended benefit periods. Specifically, the bill inserts new language stating that starting January 1, 2027, no base period employer's account shall be charged for benefits paid to claimants under this program if the claim is filed during a week when the state is experiencing high unemployment or is in an extended benefit period. This noncharge will remain in effect until the U.S. Secretary of Labor notifies the Labor Commissioner that the high unemployment or extended benefit period has ended.
Additionally, the bill repeals and replaces subsection (c) of section 31-225a, which outlines various conditions under which benefits are not charged to employers. The new language clarifies existing provisions and introduces the noncharge for shared work program benefits, while maintaining other noncharging provisions for employers under specific circumstances, such as natural disasters or employee disqualifications. The overall intent of the bill is to provide financial relief to employers during challenging economic times by preventing charges to their accounts for benefits paid to employees participating in the shared work program.