Connecticut 2021 Regular Session Status: Enacted Bipartisan · 10 D · 1 R cosponsors

HB 6633 — AN ACT RESTRUCTURING UNEMPLOYMENT INSURANCE BENEFITS AND IMPROVING FUND SOLVENCY.

Last action — SIGNED BY GOVERNOR

  1. ✓
    Introduced
  2. ✓
    In Committee
  3. ✓
    Passed House
  4. ✓
    Passed Senate
  5. ✓
    To Executive
  6. 6
    Enacted

This bill has been enacted into law. Introduced March 11, 2021. Enacted.

Odds of enactment

High chance

Based on the sponsor, cosponsors, and committee posture, this bill has a high chance of becoming law.

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Prognosis

Likely to advance 78% · moderate confidence

  • Enacted

    Current position in the legislative process.

  • 15 sponsors

    15 primary, 0 co-sponsors signed on.

  • Bipartisan support

    Sponsored across 2 parties (10 D · 1 R) — cross-party backing.

Based on stage, sponsorship breadth, committee status, recorded votes, and cross-state momentum — a description of the observable signals, not a prediction.

Bill Text

What changed in the latest version

900 added · 1269 removed

900 line(s) added, 1269 removed.

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House of Representatives File No.
Substitute House Bill No.
695 General Assembly January Session, 2021(Reprint of File No.
6633 Public Act No.
653) Substitute House Bill No.
21-200 AN ACT RESTRUCTURING UNEMPLOYMENT INSURANCE BENEFITS AND IMPROVING FUND SOLVENCY.
6633 As Amended by House Amendment Schedule "A" Approved by the Legislative Commissioner May 14, 2021 AN ACT RESTRUCTURING UNEMPLOYMENT INSURANCE BENEFITS AND IMPROVING FUND SOLVENCY.
(A) That part of the remuneration (i) in excess of seven thousand one hundred dollars paid by an employer to an individual during any calendar year commencing on or after January 1, 1983, and prior to sHB6633 / File No.
(A) That part of the remuneration (i) in excess of seven thousand one hundred dollars paid by an employer to an individual during any calendar year commencing on or after January 1, 1983, and prior to January 1, 1994, (ii) in excess of nine thousand dollars paid by an employer to an individual during the calendar year commencing on January 1, 1994, (iii) in excess of an amount equal to the taxable wages for the prior year increased by one thousand dollars so paid during any calendar year commencing on or after January 1, 1995, but prior to Substitute House Bill No.
695 sHB6633 File No.
6633 January 1, 1999, [or] (iv) in excess of fifteen thousand dollars for any calendar year commencing on or after January 1, 1999, but prior to January 1, 2024, (v) in excess of twenty-five thousand dollars for the calendar year commencing on January 1, 2024, or (vi) for each calendar year commencing on or after January 1, 2025, in excess of an amount equal to the taxable wages for the prior year (I) adjusted by the percentage change in the employment cost index or its successor index, for wages and salaries for all civilian workers, as calculated by the United States Department of Labor, over the twelve-month period ending on June thirtieth of the preceding year, and (II) rounded to the nearest multiple of one hundred dollars.
695 January 1, 1994, (ii) in excess of nine thousand dollars paid by an employer to an individual during the calendar year commencing on January 1, 1994, (iii) in excess of an amount equal to the taxable wages for the prior year increased by one thousand dollars so paid during any calendar year commencing on or after January 1, 1995, but prior to January 1, 1999, [or] (iv) in excess of fifteen thousand dollars for any calendar year commencing on or after January 1, 1999, but prior to January 1, 2024, (v) in excess of twenty-five thousand dollars for the calendar year commencing on January 1, 2024, or (vi) for each calendar year commencing on or after January 1, 2025, in excess of an amount equal to the taxable wages for the prior year (I) adjusted by the percentage change in the employment cost index or its successor index, for wages and salaries for all civilian workers, as calculated by the United States Department of Labor, over the twelve-month period ending on June thirtieth of the preceding year, and (II) rounded to the nearest multiple of one hundred dollars.
sHB6633 / File No.
(E) The amount of any payment excluded from "wages", as defined in Section 3306(b) of the Federal Unemployment Tax Act, that is made Public Act No.
695 sHB6633 File No.
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695 (E) The amount of any payment excluded from "wages", as defined in Section 3306(b) of the Federal Unemployment Tax Act, that is made to, or on behalf of, an employee under a plan or system established by an employer [which] that makes provision for [his] such employer's employees generally or for a class or classes of [his] such employer's employees, including any amount paid by an employer for insurance or annuities, or into a fund, to provide for any such payment, on account of (i) retirement, or (ii) sickness or accident disability, or (iii) medical and hospitalization expenses in connection with sickness or accident disability, or (iv) death.
6633 to, or on behalf of, an employee under a plan or system established by an employer [which] that makes provision for [his] such employer's employees generally or for a class or classes of [his] such employer's employees, including any amount paid by an employer for insurance or annuities, or into a fund, to provide for any such payment, on account of (i) retirement, or (ii) sickness or accident disability, or (iii) medical and hospitalization expenses in connection with sickness or accident disability, or (iv) death.
(3) Notwithstanding any other provisions of this subsection, wages shall include all remuneration for services with respect to which a tax is required to be paid under any federal law imposing a tax against which credit may be taken for contributions required to be paid into a state sHB6633 / File No.
(3) Notwithstanding any other provisions of this subsection, wages shall include all remuneration for services with respect to which a tax is required to be paid under any federal law imposing a tax against which credit may be taken for contributions required to be paid into a state Public Act No.
695 sHB6633 File No.
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695 unemployment fund or [which] that as a condition for full tax credit against the tax imposed by the Federal Unemployment Tax Act are required to be included under this chapter.
6633 unemployment fund or [which] that as a condition for full tax credit against the tax imposed by the Federal Unemployment Tax Act are required to be included under this chapter.
Section 31-225a of the general statutes, as amended by section 26 of public act 19-25, section 235 of public act 19-117 and section 1 of public act 21-5, is repealed and the following is substituted in lieu thereof (Effective January 1, 2022):
Section 31-225a of the general statutes, as amended by section of public act 19-25, section 235 of public act 19-117 and section 1 of public act 21-5, is repealed and the following is substituted in lieu thereof (Effective January 1, 2022):
(8) "Experience period" means the three consecutive experience years ending on the computation date, except that (A) if the employer's sHB6633 / File No.
Public Act No.
695 sHB6633 File No.
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695 account has been chargeable with benefits for less than three years, the experience period shall consist of the greater of one or two consecutive experience years ending on the computation date, [and] (B) to the extent allowed by federal law and as necessary to respond to the spread of COVID-19, for any taxable year commencing on or after January 1, 2022, the experience period shall be calculated without regard to benefit chargesandtaxablewagesfortheexperienceyearsendingJune30,2020, and June 30, 2021, when applicable, and (C) for tax year 2026, "experience period" means one experience year ending on the computation date and for tax year 2027, "experience period" means two consecutive experience years ending on the computation date;
6633 (8) "Experience period" means the three consecutive experience years ending on the computation date, except that (A) if the employer's account has been chargeable with benefits for less than three years, the experience period shall consist of the greater of one or two consecutive experience years ending on the computation date, [and] (B) to the extent allowed by federal law and as necessary to respond to the spread of COVID-19, for any taxable year commencing on or after January 1, 2022, the experience period shall be calculated without regard to benefit chargesandtaxablewagesfortheexperienceyearsendingJune30,2020, and June 30, 2021, when applicable, and (C) for tax year 2026, "experience period" means one experience year ending on the computation date and for tax year 2027, "experience period" means two consecutive experience years ending on the computation date;
An employer's maximum total liability for such benefits with respect to a claimant's benefit year shall bear the same ratio to the maximum total benefits payable to the claimant as the total wages paid by the employer to the claimant within his or her base period bears to the total wages paid by all employers to the claimant within his or her base period.
An employer's maximum total liability for such benefits with respect to a claimant's benefit year shall bear the same ratio to the maximum total Public Act No.
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6633 benefits payable to the claimant as the total wages paid by the employer to the claimant within his or her base period bears to the total wages paid by all employers to the claimant within his or her base period.
The amount thus sHB6633 / File No.
The amount thus determined, rounded to the nearest dollar with fractions of a dollar of exactly fifty cents rounded upward, shall be charged to the employer's account.
695 sHB6633 File No.
695 determined, rounded to the nearest dollar with fractions of a dollar of exactly fifty cents rounded upward, shall be charged to the employer's account.
(E) If the administrator finds that (i) an individual's most recent separation from a base period employer occurred under conditions [which] that would result in disqualification by reason of subdivision (2), (6) or (9) of subsection (a) of section 31-236, as amended by this act, or (ii) an individual was discharged for violating an employer's drug testing policy, provided the policy has been adopted and applied consistent with sections 31-51t to 31-51aa, inclusive, section 14-261b and anyapplicablefederallaw,nobenefitspaidthereaftertosuchindividual with respect to any week of unemployment [which] that is based upon wages paid by such employer with respect to employment prior to such separation shall be charged to such employer's account, provided such employershallhavefiledanoticewiththeadministratorwithinthetime allowed for appeal in section 31-241.
(E) If the administrator finds that (i) an individual's most recent separation from a base period employer occurred under conditions [which] that would result in disqualification by reason of subdivision (2), (6) or (9) of subsection (a) of section 31-236, as amended by this act, or (ii) an individual was discharged for violating an employer's drug testing policy, provided the policy has been adopted and applied consistent with sections 31-51t to 31-51aa, inclusive, section 14-261b and anyapplicablefederallaw,nobenefitspaidthereaftertosuchindividual Public Act No.
(F) No base period employer's account shall be charged with respect sHB6633 / File No.
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695 sHB6633 File No.
6633 with respect to any week of unemployment [which] that is based upon wages paid by such employer with respect to employment prior to such separation shall be charged to such employer's account, provided such employershallhavefiledanoticewiththeadministratorwithinthetime allowed for appeal in section 31-241.
695 to benefits paid to a claimant if such employer continues to employ such claimant at the time the employer's account would otherwise have been charged to the same extent that he or she employed him or her during the individual's base period, provided the employer shall notify the administrator within the time allowed for appeal in section 31-241.
(F) No base period employer's account shall be charged with respect to benefits paid to a claimant if such employer continues to employ such claimant at the time the employer's account would otherwise have been charged to the same extent that he or she employed him or her during the individual's base period, provided the employer shall notify the administrator within the time allowed for appeal in section 31-241.
(I) No base period employer's account shall be charged with respect to benefits paid to a claimant who voluntarily left suitable work with such employer (i) to care for a seriously ill spouse, parent or child, or (ii) due to the discontinuance of the transportation used by the claimant to get to and from work, as provided in subparagraphs (A)(ii) and (A)(iii) of subdivision (2) of subsection (a) of section 31-236, as amended by this act.
(I) No base period employer's account shall be charged with respect Public Act No.
(J) No base period employer's account shall be charged with respect to benefits paid to a claimant who has been discharged or suspended sHB6633 / File No.
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695 sHB6633 File No.
6633 to benefits paid to a claimant who voluntarily left suitable work with such employer (i) to care for a seriously ill spouse, parent or child, or (ii) due to the discontinuance of the transportation used by the claimant to get to and from work, as provided in subparagraphs (A)(ii) and (A)(iii) of subdivision (2) of subsection (a) of section 31-236, as amended by this act.
695 because the claimant has been disqualified from performing the work for which he or she was hired due to the loss of such claimant's operator license as a result of a drug or alcohol test or testing program conducted in accordance with section 14-44k, 14-227a or 14-227b while the claimant was off duty.
(J) No base period employer's account shall be charged with respect to benefits paid to a claimant who has been discharged or suspended because the claimant has been disqualified from performing the work for which he or she was hired due to the loss of such claimant's operator license as a result of a drug or alcohol test or testing program conducted in accordance with section 14-44k, 14-227a or 14-227b while the claimant was off duty.
(L) On and after January 1, 2024, (i) no base period employer's account shall be charged with respect to benefits paid to a claimant through the voluntary shared work unemployment compensation program established pursuant to section 31-274j, if a claim for benefits is filed in a week in which the average rate of total unemployment in the state equals or exceeds six and one-half per cent based on the most recent three months of data published by the Labor Commissioner, and (ii) the Labor Commissioner may determine that no base period employer's account shall be charged with respect to benefits paid to a claimant through the voluntary shared work unemployment compensation program established pursuant to section 31-274j, if a claim for benefits is filed in a week in which the average rate of total unemployment in the state equals or exceeds eight per cent in the most recent one month of data published by the Labor Commissioner.
(L) On and after January 1, 2024, (i) no base period employer's account shall be charged with respect to benefits paid to a claimant through the voluntary shared work unemployment compensation program established pursuant to section 31-274j, if a claim for benefits is filed in a week in which the average rate of total unemployment in the state equals or exceeds six and one-half per cent based on the most recent three months of data published by the Labor Commissioner, and (ii) the Labor Commissioner may determine that no base period employer's account shall be charged with respect to benefits paid to a claimant through the voluntary shared work unemployment compensation program established pursuant to section 31-274j, if a claim for benefits is filed in a week in which the average rate of total unemployment in the state equals or exceeds eight per cent in the most Public Act No.
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6633 recent one month of data published by the Labor Commissioner.
Each employer who has not been chargeable with benefits, for a sufficient period of time to have his or her rate computed under this sHB6633 / File No.
Each employer who has not been chargeable with benefits, for a sufficient period of time to have his or her rate computed under this section shall pay contributions at a rate that is the higher of (1) one per cent, or (2) the state's five-year benefit cost rate.
695 sHB6633 File No.
695 section shall pay contributions at a rate that is the higher of (1) one per cent, or (2) the state's five-year benefit cost rate.
(i) For calendar years commencing prior to January 1, 2024, if the resulting quotient is not an exact multiple of one-tenth of one per cent, the charged rate shall be the next higher such multiple, except that if the resulting quotient is less than five-tenths of one per cent, the charged rate shall be five-tenths of one per cent and if the resulting quotient is greater than five and four-tenths per cent, the charged rate shall be five and four-tenths per cent.
Public Act No.
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6633 (i) For calendar years commencing prior to January 1, 2024, if the resulting quotient is not an exact multiple of one-tenth of one per cent, the charged rate shall be the next higher such multiple, except that if the resulting quotient is less than five-tenths of one per cent, the charged rate shall be five-tenths of one per cent and if the resulting quotient is greater than five and four-tenths per cent, the charged rate shall be five and four-tenths per cent.
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T1 T2 Employer's Charged Tax Rate Table T3 Employer's Charged T4 Employer's Benefit Ratio Tax Rate sHB6633 / File No.
Employer's Charged Tax Rate Table Employer's Charged Employer's Benefit Ratio Tax Rate .005 or less .5% minimum subject .006 .6% to fund .007 .7% solvency .008 .8% adjustment .009 .9% .010 1.0% .011 1.1% .012 1.2% .013 1.3% .014 1.4% .015 1.5% .016 1.6% .017 1.7% .018 1.8% .019 1.9% .020 2.0% .021 2.1% .022 2.2% .023 2.3% Public Act No.
695 sHB6633 File No.
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695 T5 T6 .005 or less .5% minimum subject T7 .006 .6% to fund T8 .007 .7% solvency T9 .008 .8% adjustment T10 .009 .9% T11 .010 1.0% T12 .011 1.1% T13 .012 1.2% T14 .013 1.3% T15 .014 1.4% T16 .015 1.5% T17 .016 1.6% T18 .017 1.7% T19 .018 1.8% T20 .019 1.9% T21 .020 2.0% T22 .021 2.1% T23 .022 2.2% T24 .023 2.3% T25 .024 2.4% T26 .025 2.5% T27 .026 2.6% T28 .027 2.7% T29 .028 2.8% T30 .029 2.9% T31 .030 3.0% T32 .031 3.1% T33 .032 3.2% T34 .033 3.3% T35 .034 3.4% T36 .035 3.5% T37 .036 3.6% T38 .037 3.7% T39 .038 3.8% sHB6633 / File No.
6633 .024 2.4% .025 2.5% .026 2.6% .027 2.7% .028 2.8% .029 2.9% .030 3.0% .031 3.1% .032 3.2% .033 3.3% .034 3.4% .035 3.5% .036 3.6% .037 3.7% .038 3.8% .039 3.9% .040 4.0% .041 4.1% .042 4.2% .043 4.3% .044 4.4% .045 4.5% .046 4.6% .047 4.7% .048 4.8% .049 4.9% .050 5.0% .051 5.1% .052 5.2% .053 5.3% .054 & higher 5.4% maximum subject to fund solvency Public Act No.
695 10 sHB6633 File No.
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695 T40 .039 3.9% T41 .040 4.0% T42 .041 4.1% T43 .042 4.2% T44 .043 4.3% T45 .044 4.4% T46 .045 4.5% T47 .046 4.6% T48 .047 4.7% T49 .048 4.8% T50 .049 4.9% T51 .050 5.0% T52 .051 5.1% T53 .052 5.2% T54 .053 5.3% T55 .054 & higher 5.4% maximum subject T56 to fund solvency T57 adjustment] (ii) For calendar years commencing on or after January 1, 2024, if the resulting quotient is less than one-tenth of oneper cent, the charged rate shall be one-tenth of one per cent and if the resulting quotient is greater than ten per cent, the charged rate shall be ten per cent.
6633 adjustment] (ii) For calendar years commencing on or after January 1, 2024, if the resulting quotient is less than one-tenth of oneper cent, the charged rate shall be one-tenth of one per cent and if the resulting quotient is greater than ten per cent, the charged rate shall be ten per cent.
(2) (A) Each contributing employer subject to this chapter shall pay an assessment to the administrator at a rate established by the sHB6633 / File No.
(2) (A) Each contributing employer subject to this chapter shall pay an assessment to the administrator at a rate established by the administratorsufficient topayinterestdueonadvancesfromthefederal unemploymentaccountunderTitleXIIoftheSocialSecurityAct(42U.S.
695 11 sHB6633 File No.
695 administratorsufficienttopayinterestdueonadvancesfromthefederal unemploymentaccountunderTitleXIIoftheSocialSecurityAct(42U.S.
Any amount remaining from such assessments, after all such federal interest chargeshave beenpaid, shallbetransferredtotheEmployment Security Administration Fund or to the Unemployment Compensation Advance Fund established under section 31-264a, (i) to the extent that any federal interest chargeshave beenpaidfromtheUnemployment Compensation Advance Fund, (ii) to the extent that the administrator determines that reimbursement is appropriate, or (iii) otherwise to the extent that reimbursement of the advance fund is the appropriate accounting principle governing the use of the assessments.
Any amount remaining from such assessments, after all such federal interest chargeshave beenpaid, shallbetransferredto theEmployment Security Administration Fund or to the Unemployment Compensation Advance Fund established under section 31-264a, (i) to the extent that any federal interest chargeshave beenpaidfromtheUnemployment Compensation Advance Fund, (ii) to the extent that the administrator determines that reimbursement is appropriate, or (iii) otherwise to the extent that reimbursement of the advance fund is the appropriate accounting Public Act No.
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6633 principle governing the use of the assessments.
(f) (1) (A) For each calendar year commencing with calendar year sHB6633 / File No.
(f) (1) (A) For each calendar year commencing with calendar year but prior to calendar year 2013, the administrator shall establish a fund balance tax rate sufficient to maintain a balance in the Unemployment Compensation Trust Fund equal to eight-tenths of one per cent of the total wages paid to workers covered under this chapter by contributing employers during the year ending the last preceding June thirtieth.
695 sHB6633 File No.
695 1994 but prior to calendar year 2013, the administrator shall establish a fund balance tax rate sufficient to maintain a balance in the Unemployment Compensation Trust Fund equal to eight-tenths of one per cent of the total wages paid to workers covered under this chapter by contributing employers during the year ending the last preceding June thirtieth.
(B) For each calendar year commencing with calendar year 2013, the administrator shall establish a fund balance tax rate sufficient to maintain a balance in the Unemployment Compensation Trust Fund that results in an average high cost multiple equal to 0.5.
(B) For each calendar year commencing with calendar year 2013, the Public Act No.
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6633 administrator shall establish a fund balance tax rate sufficient to maintain a balance in the Unemployment Compensation Trust Fund that results in an average high cost multiple equal to 0.5.
(E) The assessment levied by the administrator at any time [(A)] (i) duringacalendaryearcommencingonorafterJanuary1,1994,butprior to January 1, 1999, shall not exceed one and five-tenths per cent, [(B)] (ii) duringacalendaryearcommencingonorafterJanuary1,1999, butprior to January 1, 2013, shall not exceed one and four-tenths per cent, and sHB6633 / File No.
(E) The assessment levied by the administrator at any time [(A)] (i) duringacalendaryearcommencingonorafterJanuary1,1994,butprior to January 1, 1999, shall not exceed one and five-tenths per cent, [(B)] (ii) duringacalendaryearcommencingonorafterJanuary1,1999, butprior to January 1, 2013, shall not exceed one and four-tenths per cent, and shall not be calculated to result in a fund balance in excess of eight- tenths of one per cent of such total wages, [and (C)] (iii) during a calendar year commencing on or after January 1, 2013, but prior to January 1, 2024, shall not exceed one and four-tenths per cent and shall not be calculated to result in a fund balance in excess of the amounts prescribed in this subdivision, [.] and (iv) during a calendar year commencing on or after January 1, 2024, shall not exceed one per cent and shall not be calculated to result in a fund balance in excess of the amounts prescribed in this subdivision.
695 sHB6633 File No.
Public Act No.
695 shall not be calculated to result in a fund balance in excess of eight- tenths of one per cent of such total wages, [and (C)] (iii) during a calendar year commencing on or after January 1, 2013, but prior to January 1, 2024, shall not exceed one and four-tenths per cent and shall not be calculated to result in a fund balance in excess of the amounts prescribed in this subdivision, [.] and (iv) during a calendar year commencing on or after January 1, 2024, shall not exceed one per cent and shall not be calculated to result in a fund balance in excess of the amounts prescribed in this subdivision.
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(F) During a calendar year that begins during an economic recession declared by the National Bureau of Economic Research on or before November fifteenth of the prior calendar year, the assessment levied by the administrator shall not exceed one-half of one per cent unless such maximum rate jeopardizes the state's access to interest-free federal advances, including, but not limited to, those offered pursuant to 42 USC 1322 and subject to the funding goals established in 20 CFR 606.32, as amended from time to time.
6633 (F) During a calendar year that begins during an economic recession declared by the National Bureau of Economic Research on or before November fifteenth of the prior calendar year, the assessment levied by the administrator shall not exceed one-half of one per cent unless such maximum rate jeopardizes the state's access to interest-free federal advances, including, but not limited to, those offered pursuant to 42 USC 1322 and subject to the funding goals established in 20 CFR 606.32, as amended from time to time.
(g) Each qualified employer's contribution rate for each calendar year after 1973 shall be a percentage rate equal to the sum of his or her charged tax rate as of the June thirtieth preceding such calendar year sHB6633 / File No.
(g) Each qualified employer's contribution rate for each calendar year after 1973 shall be a percentage rate equal to the sum of his or her charged tax rate as of the June thirtieth preceding such calendar year and the fund balance tax rate as of December thirtieth preceding such calendar year.
695 sHB6633 File No.
(h) (1) With respect to each benefit year commencing on or after July 1, 1978, notice of determination of the claimant's benefit entitlement for such benefit year shall include notice of the allocation of benefit charges of the claimant's base period employers and each such employer shall be provided a copy of such notice of determination and shall be an Public Act No.
695 and the fund balance tax rate as of December thirtieth preceding such calendar year.
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(h) (1) With respect to each benefit year commencing on or after July 1, 1978, notice of determination of the claimant's benefit entitlement for such benefit year shall include notice of the allocation of benefit charges of the claimant's base period employers and each such employer shall be provided a copy of such notice of determination and shall be an interested party thereto.
6633 interested party thereto.
(4) The provisions of subdivisions (2) and (3) of this subsection shall sHB6633 / File No.
(4) The provisions of subdivisions (2) and (3) of this subsection shall not apply to combined wage claims paid under subsection (b) of section 31-255.
695 sHB6633 File No.
695 not apply to combined wage claims paid under subsection (b) of section 31-255.
Such statement shall show the name and Social Security number of the claimant who was paid the benefits and the total amount of the benefits charged in the quarter.
Such statement shall show the name and Social Security number of the Public Act No.
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6633 claimant who was paid the benefits and the total amount of the benefits charged in the quarter.
(2) Commencing with the first calendar quarter of 2014, each sHB6633 / File No.
(2) Commencing with the first calendar quarter of 2014, each employer subject to this chapter [who] that reports wages for employees receiving wages in employment subject to this chapter, and each person or organization that, as an agent, reports wages for employees receiving Public Act No.
695 sHB6633 File No.
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695 employer subject to this chapter [who] that reports wages for employees receiving wages in employment subject to this chapter, and each person or organization that, as an agent, reports wages for employees receiving wages in employment subject to this chapter on behalf of one or more employers subject to this chapter shall submit quarterly the information required by subdivision(1)ofthis subsectiononmagnetictape,diskette, or other similar electronic means [which] that the administrator may prescribe, in a format prescribed by the administrator, unless such employer or agent receives a waiver pursuant to subdivision (5) of this subsection.
6633 wages in employment subject to this chapter on behalf of one or more employers subject to this chapter shall submit quarterly the information required by subdivision(1)ofthissubsectiononmagnetictape,diskette, or other similar electronic means [which] that the administrator may prescribe, in a format prescribed by the administrator, unless such employer or agent receives a waiver pursuant to subdivision (5) of this subsection.
(3) Any employer that fails to submit the information required by subdivision (1) of this subsection in a timely manner, as determined by the administrator, shall be liable to the administrator for a late filing fee oftwenty-fivedollars.Anyemployer thatfailstosubmittheinformation required by subdivision (1) of this subsection under a proper state unemployment compensation registration number shall be liable to the administrator for a fee of twenty-five dollars.
(3) Any employer that fails to submit the information required by subdivision (1) of this subsection in a timely manner, as determined by the administrator, shall be liable to the administrator for a late filing fee oftwenty-fivedollars.Anyemployerthatfailstosubmittheinformation required by subdivision (1) of this subsection under a proper state unemployment compensation registration number shall be liable to the administrator for a fee of twenty-five dollars.
(5) Any employer or any person or organization that, as an agent, submits information pursuant to subdivision (2) of this subsection or makes contributions or payments in lieu of contributions pursuant to subdivision (4) of this subsection may request in writing, not later than thirty days prior to the date a submission of information or a sHB6633 / File No.
(5) Any employer or any person or organization that, as an agent, submits information pursuant to subdivision (2) of this subsection or makes contributions or payments in lieu of contributions pursuant to subdivision (4) of this subsection may request in writing, not later than thirty days prior to the date a submission of information or a contribution or payment in lieu of contribution is due, that the Public Act No.
695 sHB6633 File No.
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695 contribution or payment in lieu of contribution is due, that the administrator waive the requirement that such submission or contribution or payment in lieu of contribution be made electronically.
6633 administrator waive the requirement that such submission or contribution or payment in lieu of contribution be made electronically.
In determining whether or not any work is suitable for an individual, the administrator may consider the degree of risk involved to such individual's health, safety and morals, such individual's physical fitness and prior training and experience, such individual's skills, such sHB6633 / File No.
In determining whether or not any work is suitable for an individual, the administrator may consider the degree of risk involved to such individual's health, safety and morals, such individual's physical fitness Public Act No.
695 sHB6633 File No.
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695 individual's previous wage level and such individual's length of unemployment, but, notwithstanding any [other] provision of this chapter, no work shall be deemed suitable nor shall benefits be denied under this chapter to any otherwise eligible individual for refusing to accept work under any of the following conditions:
6633 and prior training and experience, such individual's skills, such individual's previous wage level and such individual's length of unemployment, but, notwithstanding any [other] provision of this chapter, no work shall be deemed suitable nor shall benefits be denied under this chapter to any otherwise eligible individual for refusing to accept work under any of the following conditions:
(2) (A) If, in the opinion of the administrator, the individual has left suitable work voluntarily and without good cause attributable to the employer, until such individual has earned at least ten times such individual's benefit rate, provided whenever an individual voluntarily leaves part-time employment under conditions that would render the individual ineligible for benefits, such individual's ineligibility shall be limited as provided in subsection (b) of this section, if applicable, and provided further, no individual shall be ineligible for benefits if the individual leaves suitable work (i) for good cause attributable to the employer, including leaving as a result of changes in conditions created by the individual's employer, (ii) to care for the individual's spouse, child, or parent with an illness or disability, as defined in subdivision (16) of this subsection, (iii) due to the discontinuance of transportation, other than the individual's personally owned vehicle, used to get to and sHB6633 / File No.
(2) (A) If, in the opinion of the administrator, the individual has left suitable work voluntarily and without good cause attributable to the employer, until such individual has earned at least ten times such individual's benefit rate, provided whenever an individual voluntarily leaves part-time employment under conditions that would render the individual ineligible for benefits, such individual's ineligibility shall be limited as provided in subsection (b) of this section, if applicable, and provided further, no individual shall be ineligible for benefits if the individual leaves suitable work (i) for good cause attributable to the employer, including leaving as a result of changes in conditions created by the individual's employer, (ii) to care for the individual's spouse, Public Act No.
695 sHB6633 File No.
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695 from work, provided no reasonable alternative transportation is available, (iv) to protect the individual, the individual's child, the individual's spouse or the individual's parent from becoming or remaining a victim of domestic violence, as defined in section 17b-112a, provided such individual has made reasonable efforts to preserve the employment, but the employer's account shall not at any time be charged with respect to any voluntary leaving that falls under subparagraph (A)(iv) of this subdivision, (v) for a separation from employment that occurs on or after July 1, 2007, to accompany a spouse who is on active duty with the armed forces of the United States and is required to relocate by the armed forces, but the employer's account shall not at any time be charged with respect to any voluntary leaving that falls under subparagraph (A)(v) of this subdivision, or (vi) to accompany such individual's spouse to a place from which it is impractical for such individual to commute due to a change in location of the spouse's employment, but the employer's account shall not be charged with respect to any voluntary leaving under subparagraph (A)(vi) of this subdivision;
6633 child, or parent with an illness or disability, as defined in subdivision (16) of this subsection, (iii) due to the discontinuance of transportation, other than the individual's personally owned vehicle, used to get to and from work, provided no reasonable alternative transportation is available, (iv) to protect the individual, the individual's child, the individual's spouse or the individual's parent from becoming or remaining a victim of domestic violence, as defined in section 17b-112a, provided such individual has made reasonable efforts to preserve the employment, but the employer's account shall not at any time be charged with respect to any voluntary leaving that falls under subparagraph (A)(iv) of this subdivision, (v) for a separation from employment that occurs on or after July 1, 2007, to accompany a spouse who is on active duty with the armed forces of the United States and is required to relocate by the armed forces, but the employer's account shall not at any time be charged with respect to any voluntary leaving that falls under subparagraph (A)(v) of this subdivision, or (vi) to accompany such individual's spouse to a place from which it is impractical for such individual to commute due to a change in location of the spouse's employment, but the employer's account shall not be charged with respect to any voluntary leaving under subparagraph (A)(vi) of this subdivision;
provided an individual who (i) while on layoff from regular work, accepts other employment and leaves such other employment when recalled by the individual's former employer, (ii) leaves work that is outside the individual's regular apprenticeable trade to return to work in the individual's regular apprenticeable trade, (iii) has left work solely by reason of governmental regulation or statute, or (iv) leaves part-time work to accept full-time work, shall not be ineligible on account of such leaving and the employer's account shall not at any time be charged with respect to such separation, unless such sHB6633 / File No.
provided an individual who (i) while on layoff from regular work, accepts other employment and leaves such other employment when recalled by the individual's former employer, (ii) leaves work that is outside the individual's regular apprenticeable trade Public Act No.
695 sHB6633 File No.
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695 employer has elected payments in lieu of contributions;
6633 to return to work in the individual's regular apprenticeable trade, (iii) has left work solely by reason of governmental regulation or statute, or (iv) leaves part-time work to accept full-time work, shall not be ineligible on account of such leaving and the employer's account shall not at any time be charged with respect to such separation, unless such employer has elected payments in lieu of contributions;
provided in either event the recognized or certified bargaining agent shall have advised the employerthat theemployeeswithwhomtheemployer isengagedinthe labor dispute are ready, able and willing to continue working pending thenegotiationofanewcontractunderthetermsandconditionscurrent immediately prior to such announcement;
provided in either event the recognized or certified bargaining agent shall have advised the employerthat theemployeeswithwhomtheemployer isengagedinthe labor dispute are ready, able and willing to continue working pending thenegotiationofanewcontractunderthetermsandconditionscurrent Public Act No.
(4) [During] (A) Prior to January 1, 2024, during any week with respect to which the individual has received or is about to receive remuneration in the form of [(A)] (i) (I) wages in lieu of notice or dismissal payments, including severance or separation payment by an employer to an employee beyond the employee's wages upon termination of the employment relationship, unless the employee was sHB6633 / File No.
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695 sHB6633 File No.
6633 immediately prior to such announcement;
695 required to waive or forfeit a right or claim independently established by statute or common law, against the employer as a condition of receiving the payment, or any payment by way of compensation for loss of wages, or (II) any other state or federal unemployment benefits, except mustering out pay, terminal leave pay or any allowance or compensation granted by the United States under an Act of Congress to an ex-serviceperson in recognition of the ex-serviceperson's former military service, or any service-connected pay or compensation earned by an ex-servicepersonpaid before or after separation or discharge from active military service, or [(B)] (ii) compensation for temporary disability under any workers' compensation law;
(4) [During] (A) Prior to January 1, 2024, during any week with respect to which the individual has received or is about to receive remuneration in the form of [(A)] (i) (I) wages in lieu of notice or dismissal payments, including severance or separation payment by an employer to an employee beyond the employee's wages upon termination of the employment relationship, unless the employee was required to waive or forfeit a right or claim independently established by statute or common law, against the employer as a condition of receiving the payment, or any payment by way of compensation for loss of wages, or (II) any other state or federal unemployment benefits, except mustering out pay, terminal leave pay or any allowance or compensation granted by the United States under an Act of Congress to an ex-serviceperson in recognition of the ex-serviceperson's former military service, or any service-connected pay or compensation earned by an ex-servicepersonpaid before or after separation or discharge from active military service, or [(B)] (ii) compensation for temporary disability under any workers' compensation law;
Mustering out pay, terminal leave pay or any allowance or compensation granted by the United States under an Act of Congress to an ex-serviceperson in recognition of the ex-serviceperson's former military service, or any service-connected pay or compensation earned by an ex-serviceperson paid before or after separation or discharge from active military service, or any payment of accrued vacation pay payable upon separation from employment, or (ii) compensation for temporary disability under any workers' compensation law;
Mustering out pay, terminal leave pay or any allowance or compensation granted by the Public Act No.
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6633 United States under an Act of Congress to an ex-serviceperson in recognition of the ex-serviceperson's former military service, or any service-connected pay or compensation earned by an ex-serviceperson paid before or after separation or discharge from active military service, or any payment of accrued vacation pay payable upon separation from employment, or (ii) compensation for temporary disability under any workers' compensation law;
(6) If the administrator finds that the individual has left employment sHB6633 / File No.
(6) If the administrator finds that the individual has left employment to attend a school, college or university as a regularly enrolled student, such ineligibility to continue during such attendance;
695 sHB6633 File No.
695 to attend a school, college or university as a regularly enrolled student, such ineligibility to continue during such attendance;
except that the individual is not ineligible on account of such retirement if the administrator finds (A) that the individual has retired because (i) such individual's work has become unsuitable considering such individual's physical condition and the degree of risk to such individual's health and safety, and (ii) such individual has requested of such individual's employer other work that is suitable, and (iii) such individual's employer did not offer such individual such work, or (B) that the individual has been involuntarily retired;
except that the individual is not ineligible on account of such retirement if the administrator finds (A) that the individual has retired because (i) such individual's work has become unsuitable considering such individual's physical condition and the degree of risk to such individual's health and safety, and (ii) such individual has requested of such individual's employer other work that is suitable, and (iii) such Public Act No.
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6633 individual's employer did not offer such individual such work, or (B) that the individual has been involuntarily retired;
sHB6633 / File No.
(14)If theadministrator findsthat theindividualhas beendischarged or suspended because the individual has been disqualified under state or federal law from performing the work for which such individual was hired as a result of a drug or alcohol testing program mandated by and conducted in accordance with such law, until such individual has earned at least ten times such individual's benefit rate;
695 sHB6633 File No.
695 (14)If theadministrator findsthat theindividualhas beendischarged or suspended because the individual has been disqualified under state or federal law from performing the work for which such individual was hired as a result of a drug or alcohol testing program mandated by and conducted in accordance with such law, until such individual has earned at least ten times such individual's benefit rate;
[(B)] (ii) a podiatrist, dentist, psychologist, optometrist or chiropractor authorized to practice by the state in which such person practices and performs within the scope of the authorized practice;
[(B)] (ii) Public Act No.
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6633 a podiatrist, dentist, psychologist, optometrist or chiropractor authorized to practice by the state in which such person practices and performs within the scope of the authorized practice;
or [(G)] (vii) such other health care provider as the Labor Commissioner sHB6633 / File No.
or [(G)] (vii) such other health care provider as the Labor Commissioner approves, performing within the scope of the authorized practice.
695 sHB6633 File No.
695 approves, performing within the scope of the authorized practice.
Except with respect to tardiness, for purposes of subparagraph (B) of subdivision (2) of this subsection, (i) prior to January 1, 2024, each instance in which an employee is absent for one day or two consecutive dayswithout either goodcause for theabsence or notice totheemployer which the employee could reasonably have provided under the circumstances constitutes a "separate instance", and (ii) on or after January 1, 2024, each instance in which an employee is absent for one day without either good cause for the absence or notice to the employer which the employee could reasonably have provided under the circumstances constitutes a "separate instance".
Except with respect to tardiness, for purposes of subparagraph (B) of subdivision (2) of this subsection, (i) prior to January 1, 2024, each instance in which an employee is absent for one day or two consecutive dayswithout either goodcause for theabsence or notice totheemployer which the employee could reasonably have provided under the Public Act No.
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6633 circumstances constitutes a "separate instance", and (ii) on or after January 1, 2024, each instance in which an employee is absent for one day without either good cause for the absence or notice to the employer which the employee could reasonably have provided under the circumstances constitutes a "separate instance".
(a) (1) For a construction worker identified pursuant to regulations adopted in accordance with subsection (c) of this section, the total unemployment benefit rate for the individual's benefit year commencing on or after April 1, 1996, shall be an amount equal to one sHB6633 / File No.
(a) (1) For a construction worker identified pursuant to regulations adopted in accordance with subsection (c) of this section, the total unemployment benefit rate for the individual's benefit year commencing on or after April 1, 1996, shall be an amount equal to one twenty-sixth, rounded to the next lower dollar, of [his] the individual's total wages paid during that quarter of [his] the individual's current benefit year's base period in which wages were the highest but not less than fifteen dollars.
695 sHB6633 File No.
695 twenty-sixth, rounded to the next lower dollar, of [his] the individual's total wages paid during that quarter of [his] the individual's current benefit year's base period in which wages were the highest but not less than fifteen dollars.
(3) The total unemployment benefit rate for the individual's benefit year commencing on or after January 1, 2025, shall be not less than the total unemployment benefit rate for the prior year (A) adjusted by the percentage change in the employment cost index or its successor index, for wages and salaries for all civilian workers, as calculated by the United States Department of Labor, over the twelve-month period ending on June thirtieth of the preceding year, and (B) rounded to the nearest dollar, except that whenthefederalgovernment providesafully federally-funded supplement to the individual's weekly benefit amount, the total unemployment benefit rate shall be not less than fifteen dollars.
(3) The total unemployment benefit rate for the individual's benefit year commencing on or after January 1, 2025, shall be not less than the total unemployment benefit rate for the prior year (A) adjusted by the percentage change in the employment cost index or its successor index, Public Act No.
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6633 for wages and salaries for all civilian workers, as calculated by the United States Department of Labor, over the twelve-month period ending on June thirtieth of the preceding year, and (B) rounded to the nearest dollar, except that whenthefederalgovernment providesafully federally-funded supplement to the individual's weekly benefit amount, the total unemployment benefit rate shall be not less than fifteen dollars.
[nor] sHB6633 / File No.
[nor] (2) The total unemployment benefit rate for the individual's benefit year commencing on January 1, 2024, shall be not less than forty dollars, except that when the federal government provides a fully federally- funded supplement to the individual's weekly benefit amount, the total unemployment benefit rate shall be not less than fifteen dollars.
695 sHB6633 File No.
(3) The total unemployment benefit rate for the individual's benefit year commencing on or after January 1, 2025, shall be not less than the total unemployment benefit rate for the prior year (A) adjusted by the percentage change in the employment cost index or its successor index, for wages and salaries for all civilian workers, as calculated by the United States Department of Labor, over the twelve-month period Public Act No.
695 (2) The total unemployment benefit rate for the individual's benefit year commencing on January 1, 2024, shall be not less than forty dollars, except that when the federal government provides a fully federally- funded supplement to the individual's weekly benefit amount, the total unemployment benefit rate shall be not less than fifteen dollars.
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(3) The total unemployment benefit rate for the individual's benefit year commencing on or after January 1, 2025, shall be not less than the total unemployment benefit rate for the prior year (A) adjusted by the percentage change in the employment cost index or its successor index, for wages and salaries for all civilian workers, as calculated by the United States Department of Labor, over the twelve-month period ending on June thirtieth of the preceding year, and (B) rounded to the nearest dollar, except that whenthefederalgovernment providesafully federally-funded supplement to the individual's weekly benefit amount, the total unemployment benefit rate shall be not less than fifteen dollars.
6633 ending on June thirtieth of the preceding year, and (B) rounded to the nearest dollar, except that whenthefederalgovernment providesafully federally-funded supplement to the individual's weekly benefit amount, the total unemployment benefit rate shall be not less than fifteen dollars.
(B) The average wage of all workers in the state shall be determined by [(A)] (i) the administrator, on or before August fifteenth annually, as sHB6633 / File No.
(B) The average wage of all workers in the state shall be determined by [(A)] (i) the administrator, on or before August fifteenth annually, as of the year ended the previous March thirty-first to be effective during thebenefityearcommencingonorafterthefirstSundayofthefollowing October, and [(B)] (ii) the Connecticut Quarterly Census of Employment and Wages or by such other method, as determined by the administrator, that accurately reflects the average wage of all workers in the state.
695 sHB6633 File No.
695 of the year ended the previous March thirty-first to be effective during thebenefityearcommencingonorafterthefirstSundayofthefollowing October, and [(B)] (ii) the Connecticut Quarterly Census of Employment and Wages or by such other method, as determined by the administrator, that accurately reflects the average wage of all workers in the state.
Such regulations shall specify the National Council on Compensation Insurance employee classification codes [which] that identify construction workers covered by subsection (a) of this section and specify the manner and format in which employers shall report the identification of such workers to the administrator.
Such regulations shall specify the National Council on Compensation Public Act No.
This act shall take effect as follows and shall amend the following sections:
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Section 1 January 1, 2022 31-222(b) Sec.
6633 Insurance employee classificationcodes [which] that identify construction workers covered by subsection (a) of this section and specify the manner and format in which employers shall report the identification of such workers to the administrator.
2 January 1, 2022 31-225a Sec.
Approved July 12, 2021 Public Act No.
2 January 1, 2022 31-225a Sec.
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3 January 1, 2022 31-236(a) Sec.
4 January 1, 2022 31-231a sHB6633 / File No.
695 sHB6633 File No.
695 The following Fiscal Impact Statement and Bill Analysis are prepared for the benefit of the members of the General Assembly, solely for purposes of information, summarization and explanation and do not represent the intent of the General Assembly or either chamber thereof for any purpose.
In general, fiscal impacts are based upon a variety of informational sources, including the analyst’s professional knowledge.
Whenever applicable, agency data is consulted as part of the analysis, however final products do not necessarily reflect an assessment from any specific department.
OFA Fiscal Note State Impact:
Agency Affected Fund-Effect FY 22 $ FY 23 $ Labor Dept.
GF - Cost None 565,048 State Comptroller - Fringe GF - Cost None 150,765 Benefits Labor Dept.
UCF - Savings See Below See Below Labor Dept.
UCF - Revenue See Below See Below Gain Note:
UCF=Unemployment Compensation Fund;
GF=General Fund Municipal Impact:
None Explanation The bill, which makes a number of changes to the unemployment insurance system beginning in FY 24, results in the following fiscal impacts to the Unemployment Compensation Trust Fund (UCF):
Expenditures • Freezing the maximum weekly benefit rate for four years results in a savings of approximately $33 million annually by 2027.
• Increasing, from $600 to $1,600, the minimum earnings claimants need to qualify for the minimum benefit and indexing it to inflation results in a savings of approximately The fringe benefit costs for most state employees are budgeted centrally in accounts administered by the Comptroller.
The estimated active employee fringe benefit cost associated with most personnel changes is 41.3% of payroll in FY 22 and FY 23.
sHB6633 / File No.
695 sHB6633 File No.
695 $1.25 million annually beginning in FY 24.
• Eliminating the exception that allows certain claimants to receive unemployment benefits during a week for which they received severance pay or vacation pay results in a savings of approximately $50 million per year beginning in FY 24.
• Shortening the length of certain absences from work for which an employee may be fired and disqualified for benefits results in a minimal savings beginning in FY 24.
Revenues • Increasing, from $15,000 to $25,000, the taxable wage base and indexing it to inflation, and adjusting the fund solvency and experience tax rates results in an estimated revenue gain of $130.9 million annually beginning in FY 24.
2 The bill also results in significant implementation costs within the General Fund to the Department of Labor beginning in FY 23 and ending in FY 24.
Specifically, third-party vendor costs for programming information technology upgrades related to the tax, benefit, and recession-recovery provisions of the bill are expected to cost approximately $400,000 in total (half in FY 23 and half in FY 24).
Additionally, it is estimated that in-house staff positions will be necessary to manage and implement the changes in the bill at a total cost of$515,813 inFY 23and$546,459in FY 24,inclusive ofsalary and fringe benefit costs.
House "A" makes technical and clarifying changes that do not result in a fiscal impact.
Solvency tax revenue would eventually drop in future years as the UCF becomes solvent.
3While the Labor Department will utilize existing personnel, these normally federally- funded positions will have to be supported with state resources as implementing these state-mandated changes is not an allowable use of federal funds.
sHB6633 / File No.
695 30 sHB6633 File No.
695 The Out Years The annualized ongoing fiscal impact identified above would continue into the future subject to inflation.
sHB6633 / File No.
695 31 sHB6633 File No.
695 OLR Bill Analysis sHB 6633 (as amended by House "A")* AN ACT RESTRUCTURING UNEMPLOYMENT INSURANCE BENEFITS AND IMPROVING FUND SOLVENCY.
SUMMARY This bill makes several changes in the unemployment system.
Among its changes, beginning in 2024, the bill does the following:
1.
generally increases the minimum weekly benefit from $15 to $40 and requires it to be annually adjusted for inflation, except when the federal government is providing additional payments to claimants;
2.
generally increases the minimum earnings claimants’ need to qualify for the minimum benefit from $600 to $1,600 (annually adjusted for inflation);
3.
freezes the maximum benefit rate for certain claims initially filed in 2024, 2025, 2026, and 2027;
4.
increases the taxable wage base from $15,000 to $25,000 and requires it to be annually adjusted for inflation;
5.
reduces employers’ experience tax rates for 2024 and 2025 and temporarily reduces the experience period used for calculating employers’ experience rates for 2026 and 2027;
6.
expands the range of experience tax rates from the current range of 0.5% to 5.4% to the bill’s range of 0.1% to 10%;
7.
creates a “non-charge” against an employer’s experience rate for benefits paid to a claimant through the Shared Work program for sHB6633 / File No.
695 32 sHB6633 File No.
695 claims filed when the state’s average rate of unemployment exceeds a specified threshold;
8.
generally reduces the maximum fund balance rate from 1.4% to 1.0%;
9.
eliminates an exception that allows certain claimants to receive unemployment benefits during a week for which they received severance pay;
10.
prohibits claimants from receiving benefits during any week for which they received specified vacation pay;
and 11.
shortens the length of certain absences from work for which an employee may be fired and disqualified for benefits.
Additionally, the bill requires the Department of Labor (DOL) to cap the fund balance rate at 0.5% during a recession unless doing so would jeopardize the state’s access to interest-free federal loans.
It also requires DOLtoadjust theexperienceratesforemployersinindustrysectorsthat are experiencing above-average employment losses in those sectors.
*House Amendment “A” (1) bases the benefit ratio adjustment for industry sectors experiencing above-average employment losses on the prior calendar year’s average, rather than the current average;
(2) extends the maximum benefit freeze to benefit years starting on or after the first Sunday in October 2024 and before the first Sunday in October 2028, rather than just the benefit years starting on the first Sunday of 2024, 2025, 2026, and 2027;
and (3) makes technical changes.
EFFECTIVE DATE:
January 1, 2022 MINIMUM BENEFITS AND EARNINGS For benefit years commencing during 2024, the bill increases the minimum weekly unemployment benefit from $15 to $40 for all workers.
However, it requires the minimum benefit to be $15 when the federal government provides a fully federally funded supplement to the sHB6633 / File No.
695 33 sHB6633 File No.
695 individual’s weekly benefit amount.
Forsubsequentbenefit years,thebillgenerallyrequirestheminimum benefit to be adjusted for inflation.
Under the bill, the minimum benefit must be (1) adjusted by the percentage change in the U.S.
DOL’s employment cost index (or its successor index) for wages and salaries for all civilian workers over the 12-month period ending on June 30 of the preceding year and (2) rounded to the nearest dollar.
This inflationary adjustment doesnot apply whentheminimumbenefit is set to $15 as described above.
Because the law generally requires claimants to have earned at least times their weekly benefit during their base period to qualify for benefits, increasing the minimum benefit also increases what these claimants must earn over the course of their base period to qualify for the minimum benefit (CGS § 31-235).
So, to qualify for the bill’s $40 minimum weekly benefit, claimants must have earned at least $1,600 ($40 x 40) over their base period, instead of the $600 required by current law.
The minimum base period earnings required to qualify for benefits changes in subsequent benefit years is based on the inflationary adjustments described above.
MAXIMUM BENEFIT FREEZE Existing law caps the maximum benefit allowed for any unemployment claimant at 50% of the average wage of all workers in thestate.Undercurrentlaw,thelaborcommissionermustadjustthe cap on the first Sunday of each October but cannot increase it more than $18 each year.
The bill prohibits the commissioner from increasing the cap in the benefit years starting on or after the first Sunday in October 2024 and before the first Sunday in October 2028.
TAXABLE WAGE BASE Beginning January 1, 2024, the bill increases the taxable wage base from the current $15,000 to $25,000.
In general, the taxable wage base is the amount of wages paid to each employee on which the employer must pay unemployment taxes.
The bill also requires the taxable wage sHB6633 / File No.
695 34 sHB6633 File No.
695 base to be (1) annually adjusted for inflation, beginning January 1, 2025, by the percentage change in the U.S.
DOL’s employment cost index (or its successor index) for wages and salaries for all civilian workers over the 12-month period ending on June 30 of the preceding year and (2) rounded to the nearest multiple of $100.
EXPERIENCE RATE Benefit Ratio for 2024-2027 Under current law, DOL annually determines each employer’s experience rate by calculating a benefit ratio for the employer over the previous three years (i.e., the experience period).
This is the ratio between the amount charged to the employer’s experience account for benefits paid to former employees and the amount of the employer’s taxable wages.
Under the bill, each employer’s charged rate for the 2024 and 2025 calendar years must be divided by 1.471 and 1.269, respectively.
This will reduce employers’ experience rates by roughly 32%in2024and21%in2025.Thebillalsoshortenstheexperienceperiod for 2026 and 2027 from the previous three years to the previous year for and previous two years for 2027.
Tax Rate Under current law, the experience tax rate ranges from a 0.5% minimum for employers with a benefit ratio of 0.005 or less to a 5.4% maximum for employers with a benefit ratio of 0.54 or greater.
Beginning with the 2024 calendar year,the bill lowers the minimum rate to 0.1% for employers with a benefit ratio of 0.1% or less and increases the maximum rate to 10% for employers with a benefit ratio of 10% or more.
Benefit Ratio Adjustment for Certain Industry Sectors Starting on January 1, 2022, if the average benefit ratio of all employers within an industry sector (based on the North American Industry Classification System) increases over the prior calendar year’s average by 0.01 or greater (which would increase experience rates by at least one percentage point), the bill requires the department to adjust sHB6633 / File No.
695 35 sHB6633 File No.
695 the benefit ratio for each employer in that sector downward by 50% of the average increase for the sector.
The mining and construction sectors are considered one sector for purposes of this adjustment.
Shared Work Program Non-Charge In general,a portionofanemployer’sunemployment insurance taxes are based on the employer’s “experience rate,” which reflects the amount of unemployment benefits paid to the employer’s former employees over a certain period.
The law, however, allows several non- charging separations in which an employee can collect benefits without affecting a former employer’s experience rate.
(In these instances, the benefits paid to the former employee are “pooled” and paid by all employers who pay unemployment taxes.) Beginning January 1, 2024, the bill allows a non-charge for employees who are paid benefits through the Shared Work program (see BACKGROUND) for claims filed in a week in which the state’s average unemployment rate is 6.5% or more based on the most recent three months of DOL-published data.
For more drastic spikes in the unemployment rate, it also authorizes the DOL commissioner to allow a non-charge for such employees for claims filed in a week in which the state’s average unemployment rate is 8% or more in the most recent month of DOL-published data.
MAXIMUM FUND BALANCE RATE In addition to its individual experience rate, each employer is also charged a flat fund balance rate that is set each year by the DOL commissioner.
This rate is, generally, calculated to ensure that the unemployment trust fund maintains a statutorily determined amount of funding in it.
Under current law, the maximum fund balance rate is 1.4%.
The bill reduces the maximum rate to 1% beginning with the 2024 calendar year, except as described below.
The bill requires the DOL commissioner to set the maximum fund balance rate at no greater than 0.5% during a recession unless doing so would jeopardize the state’s access to interest-free federal advances, sHB6633 / File No.
695 36 sHB6633 File No.
695 including those that are subject to certain funding goals established under federal law (see BACKGROUND).
Under the bill, this requirement applies during a calendar year that begins during an economic recession declared by the National Bureau of Economic Research on or before November 15 of the prior calendar year.
SEVERANCE AND VACATION PAY Current law generally prohibits claimants from receiving benefits during any week for which they received severance pay but makes an exception if, as a condition for receiving the severance pay, a claimant was required to forfeit a right or claim against an employer.
The bill eliminates this exception starting on January 1, 2024.
Beginning on that same date, the bill also prohibits claimants from receiving benefits during any week for which they received vacation pay related to an identifiable week or weeks (1) designated as a vacation period under an arrangement between the individual (or his or her representative) and the employer or (2) that is the customary vacation period in the employer’s industry.
Under the bill, this provision does not apply to payments of accrued vacation pay that the claimant receives upon separation from employment.
INELIGIBILITY FOR BENEFITS DUE TO ABSENCES By law, employees are ineligible for unemployment benefits if they were terminated after three separate instances of being absent from work without either good cause or notifying the employer.
Under current law, an “instance” of absence can be either one day or two consecutive days (thus, an employee who is absent for two consecutive days counts as one absence).
Beginning January 1, 2024, the bill instead requires each day of being absent without good cause or notice to be counted as an instance of absence.
BACKGROUND Shared Work Program The Shared Work Program is a voluntary program that allows employers to reduce their employees’ work hours in lieu of layoffs.
The sHB6633 / File No.
695 37 sHB6633 File No.
695 affected employees receive a proportionally reduced unemployment benefit, which still gives them a greater total income than if they had been laid off with a full unemployment benefit.
By remaining employees, they also maintain their fringe benefits (e.g., health insurance).
Federal UI Funding Goals Under federal regulations, state unemployment systems may access certain interest-free federal loans if (1) the state’s unemployment trust fund maintained an average high-cost multiple (AHCM) of at least 1.0 over the previous five consecutive years and (2) the state did not recentlyreduceitsunemploymenttaxratebeyondcertainthresholds(20 C.F.R.
§ 606.32).
In general, an AHCM of 1.0 indicates that a trust fund holds enough funds to cover one year of benefits in a recession that is the average magnitude of the last three recessions.
Related Bills sHB 6595 (File 463), reported favorably by the Labor and Public Employees Committee, contains provisions (§§ 26-27) that disregard an employer’s benefit charges and taxable wages between July 1, 2019, and June 30, 2021, when calculating the employer’s unemployment tax experience rate for taxable years starting on or after January 1, 2022.
SB 711 (File 183), reported favorably by the Commerce Committee, creates a “non-charge” against an employer’s experience rate for the unemployment benefits paid to former employees because of COVID- 19.
SB 1002 (File 464), reported favorably by the Labor and Public Employees Committee, contains provisions (§§ 26-27) that disregard an employer’s benefit charges and taxable wages between July 1, 2019, and June 30, 2021, when calculating the employer’s unemployment tax experience rate for taxable years starting on or after January 1, 2022.
COMMITTEE ACTION Finance, Revenue and Bonding Committee sHB6633 / File No.
695 38 sHB6633 File No.
695 Joint Favorable Substitute Yea 48 Nay 0 (04/22/2021) sHB6633 / File No.
695 39
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Action History

  1. SIGNED BY GOVERNOR

  2. TRANSMITTED BY SECRETARY OF THE STATE TO GOVERNOR

  3. TRANSMITTED TO SECRETARY OF THE STATE

  4. PUBLIC ACT 21-200

  5. ON CONSENT CALENDAR /IN CONCURRENCE

  6. SEN. PASSED, HO. AMEND. SCH. A

  7. SEN. ADOPTED HO. AMEND. SCH. A

  8. FILE NO. 695

  9. SENATE CALENDAR NUMBER 432

  10. FAV. RPT., TAB. FOR CAL., SEN.

  11. HOUSE PASSED, HOUSE AMEND. SCH. A

  12. HOUSE ADOPTED HOUSE AMEND. SCH. A

  13. RULES SUSPENDED

  14. FILE NO. 653

  15. HOUSE CALENDAR NUMBER 472

  16. FAV. RPT., TABLED FOR HOUSE CALENDAR

  17. RPTD. OUT OF LCO

  18. REFERRED TO Office of Legislative Research AND Office of Fiscal Analysis 05/10/21

  19. FILED WITH LCO

  20. Joint Favorable Substitute

  21. PUBLIC HEARING 0317

  22. REF. TO JOINT COMM. ON Finance, Revenue and Bonding

Sponsors

Sponsorship breakdown

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15 sponsors · 0 co-sponsors · 172 not signed on

Sponsors (15)

Co-sponsors (0)

None.

Not signed on (172)

172 members have not signed on to this bill.

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"Not signed on" means a member has not sponsored or co-sponsored this bill — it does not imply opposition. Members flagged Voted No have a recorded No vote on this bill.

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Frequently asked questions

Who sponsors HB 6633?
HB 6633 is sponsored by Larry B. Butler (Democratic), Eleni Kavros DeGraw (Democratic), Mary M. Mushinsky (Democratic), Jane M. Garibay (Democratic), Kara Rochelle (Democratic), Arora, Harry, Patrick S. Boyd (Democratic), Joseph P. Gresko (Democratic), Mitch Bolinsky (Republican), Jason Rojas (Democratic), Petit, William A., Cheeseman, Holly H., Hilda E. Santiago (Democratic), Kerry S. Wood (Democratic), and Sanchez, R..
What is the current status of HB 6633?
This bill has been enacted into law. Introduced March 11, 2021. Enacted.
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