The bill amends the Employment Security Act of 1980 by adjusting the conditional factors and percentages that determine unemployment contribution rates for employers. It reduces the applicable percentages for various conditions, changing rates from 42.5% to 41.25%, 45% to 42.5%, 47.5% to 43.75%, and 50% to 45%. Additionally, it introduces a new Conditional Factor Rate table that outlines specific contribution rates based on the balance of the unemployment compensation fund relative to net benefits paid over the last twenty quarters. The existing formula for benefit wage ratio increases is removed, streamlining the calculation process for unemployment contributions.

Moreover, the bill increases the minimum balance required for the Unemployment Compensation Fund and raises the threshold for triggering a surcharge from $25 million to $50 million. If the fund balance falls below this new threshold, the Oklahoma Employment Security Commission is mandated to assess and collect a surcharge to maintain the fund's balance. The bill also grants the Commission additional authority during declared states of emergency, allowing for the use of federal emergency relief funds to manage the fund effectively. These changes are set to take effect on November 1, 2025.