The bill amends the Code of West Virginia to establish the Unemployment Automation and Administration Fund, which will be used to modernize and enhance the automation initiatives of WorkForce West Virginia. Effective July 1, 2026, the bill mandates a temporary seven percent reduction in employer contributions to the Unemployment Compensation Fund and requires employers to pay an annual unemployment automation and administration fee equal to seven percent of their total taxable wages. This fee will be collected until the fund reaches a cap of $60 million or until July 1, 2031, at which point the standard contribution rates will be reinstated. Additionally, the bill outlines conditions under which collections may be halted and funds redirected to the Unemployment Compensation Fund if certain thresholds are met.

The Commissioner of WorkForce West Virginia is granted the authority to disburse funds from the newly created Unemployment Automation and Administration Fund for various purposes, including modernizing the unemployment compensation system, upgrading job search systems, covering essential administrative costs, and supporting workforce development initiatives. The bill also includes provisions for rulemaking and ensures compliance with federal laws regarding unemployment tax rates. The effective date for these changes is set for July 1, 2026.

Statutes affected:
Introduced Version: 21A-5-5, 21A-9-10
Committee Substitute: 21A-5-5, 21A-9-10
Committee Substitute for the Committee Substitute: 21A-5-5, 21A-9-10
Enrolled Version: 21A-5-5, 21A-9-10