Senate Bill No. 354 mandates that the Labor Commissioner maintain the staffing levels of the Unemployment Insurance Benefits Division at no fewer than the number of employees present on September 30, 2025, for the fiscal year ending June 30, 2027. Additionally, the bill requires the hiring of 25 new employees by July 1, 2027, to assist in processing and administering unemployment benefit claims. The bill includes a clarification in the language from "not less than the" to "not fewer than the" for clarity.
The fiscal impact of this bill is significant, with estimated costs of at least $1,580,700 for FY 27 and at least $3,556,575 for FY 28 for the Department of Labor, along with fringe benefits costs of at least $585,480 in FY 27 and $1,317,330 in FY 28. The average entry-level salary for employees in the Unemployment Insurance Benefits Division is noted to be $70,000. The bill aims to address staffing shortages in the division, which currently has 348 employees, necessitating the hiring of at least 20 additional staff in FY 27 to meet the requirements.