BILL NUMBER: S210
SPONSOR: HELMING
 
TITLE OF BILL:
An act to amend the labor law and the state finance law, in relation to
employer contributions to the unemployment insurance fund and establish-
ing the unemployment insurance solvency reserve fund
 
PURPOSE:
This bill aims to provide predictability and surety to small businesses
in terms of their expected contributions to the unemployment insurance
fund and also to establish a reserve fund to bolster unemployment when
needed and ensure its solvency.
 
SUMMARY OF PROVISIONS:
Section 1. Establishes the employer contribution rate for the unemploy-
ment insurance fund in state beginning in 2024 and describes the formu-
lary
Section 2 Establishes an unemployment insurance solvency reserve fund
and identifies monies that may now be available or may be available in
the future for deposit in such fund.
Section 3. This act shall take effect immediately
 
JUSTIFICATION:
New York's unemployment system paid out more than $100 billion to quali-
fied New Yorkers during 2020 and 2021 in response to closures related to
the global pandemic. 4.7 million New Yorkers received benefits for all
or some portion of that period. Unfortunately, in the rush to help
struggling citizens our unemployment funds payments exceeded its assets.
As of October 2024, New York State still owes the Federal Government $6
billion, and employers are paying an additional $15 per employee just to
account for interest on this debt. Total unemployment insurance costs
per employee average between $400 and $450 per employee. These costs
place a significant burden on businesses, especially small businesses,
and Empire State Development has recently testified that the number of
small businesses in New York State decreased by at least 3% between 2019
and 2024.
Small Businesses did not create this deficit, and they should not be
asked to sacrifice any more money, simply because the state is unable to
track its own expenditures and balance its own books. This legislation
would establish in law a fixed contribution from employers to the unem-
ployment insurance fund. Further, it would create a solvency fund in
State Finance law, that could draw on other state revenues, settlement
dollars or unencumbered Federal funds. We cannot place any more burdens
on small employers. Instead, we must make their rates more predictable
and put our own fiscal house in order. This bill would assist on both
counts.
 
LEGISLATIVE HISTORY:
2023-2024: S.4551 referred to Labor/ A.4657 referred to Labor
2021-2022: S.7431 referred to Labor/A.8627 held for consideration in
Labor
 
FISCAL IMPLICATIONS:
To be determined.
 
EFFECTIVE DATE:
This act shall take effect immediately.

Statutes affected:
S210: 581-a labor law