Governor Introduces Bill to Significantly Reform New York’s Unemployment Insurance System

On June 25, Governor David Paterson introduced a bill that would significantly reform New York’s unemployment insurance system. Some of the key changes if the bill is passed include: (1) increasing the maximum benefit available to beneficiaries under the unemployment insurance program to $475 starting in January 2011; (2) establishing a minimum benefit to beneficiaries of $75 starting in January 2011; (3) increasing the taxable wage base on which unemployment insurance contributions are calculated from the current $8,500 to $14,000 effective January 1, 2018; (4) increasing and indexing the wage thresholds that trigger an employer’s obligation to pay unemployment insurance contributions; (5) eliminating the lowest tax brackets for employers with positive experience ratings; (6) increasing requalification requirements for individuals who are terminated for misconduct, refuse a job or leave a job without good cause; (7) establishing penalties for employers that fail to keep or furnish required employment-related records for unemployment insurance purposes; and (8) lowering the number of employees an employer must have to be eligible for the Shared Work Program from five to two.