AB 21 — Revises provisions relating to unemployment compensation. (BDR 53-308)

A.B.Assembly Bill No.

2121–Committee ASSEMBLYon BCommerce ILLNand O.Labor CHAPTER..........

21–COMMITTEE ON C OMMERCE AND L ABOR (ON BEHALF OF THE EMPLOYMENT SECURITY D IVISION OF THED EPARTMENT OF E MPLOYMENT , TRAINING AND REHABILITATION ) PREFILED NOVEMBER 7, 2024 ____________ Referred to Committee on Commerce and Labor SUMMARY—Revises provisions relating to unemployment compensation.

(BDR 53-308) FISCAL NOTE:

Effect on Local Government:

No.

Effect on the State:

No.

~ EXPLANATION – Matter in bolded italics is new;

matter between brackets [omitted material] is material to be omitted.

(1) requires employers to pay contributions into the Unemployment Compensation Fund at a certain rate of become unemployed and comply with certain requirements eligible for benefitse from the wagesUnemployment paidCompensation byFund in an amount based on the employerperson’s previous wages for employment;employment.

and(Chapter (2)612 makesof personsNRS) whoSection have1 becomeof unemployedthis bill eliminates provisions requiring the Administrator of the Employment Security Division of the Department of Employment, Training and complyRehabilitation, withon or certain requirementsinformation eligiblerelating forto benefitsthe previoussolvency wagesof forthe employment.Unemployment Compensatione Fund.

(Chapter(NRS 612612.550) ofExisting NRS)law Sectionrequires, 1with ofcertain thisexceptions, billeach eliminatesemployer provisionsto requiringmake thepayments, Administratorat of the Employmentrate Security Division of the.05 Departmentpercent of Employment,the Trainingwages andthe Rehabilitation,employer onpays, orinto before September 30 of each year, to perform certain calculations to determine certain information relating to the solvency of the Unemployment Compensation Administration Fund.

(NRS 612.550)612.606) - *AB21* – 2 – Existing law requires,requires with certain exceptions, each employer to make payments, at the ratemoney ofcollected .05from percentsuch ofpayments theto wagesbe theused employerfor pays,certain intopurposes theemployed Unemploymentin Compensationthis AdministrationState. Fund.

(NRS 612.606)612.606, Existing612.607) lawUnder relatingexisting law, at the end of each fiscal year, the State Controller is required to transfer into the employmentClearing andAccount trainingin the Unemployment Compensation Fund the amount by which the unencumbered balance of unemployedthe personsmoney andcollected personsrposesfrom employedsuch inpayments thisexceeds State.the amount of that money which the Legislature has authorized for expenditure during the first 90 days of the succeeding fiscal year.

(NRS 612.606, 612.607) UnderSection existing2 law, at the end of eachthis fiscalbill year,unencumbered thebalance Stateof Controller is required to transfer into the Clearingmoney Accountcollected infrom thesuch Unemploymentpayments Compensationexceeds Fund the amount byof whichthat themoney unencumberedwhich balance of the moneyLegislature collectedhas fromauthorized suchfor paymentsexpenditure exceedsduring the the first 90180 days of the succeeding fiscal year.

(NRS- 612.607)83rd SectionSession 2(2025) of– this2 bill– revisesEXPLANATION the– amountMatter ofin thebolded requireditalics transferis tonew; be the amount by which the unencumbered balance of the money collected from such payments exceeds the amount of that money which the Legislature has authorized for expenditure during the first 180 days of the succeeding fiscal year.

matter between brackets [omitted material] is material to be omitted.

The average annual payroll for employers first qualifying as eligible employers must be computed on the total amount of wages paid, subject to contributions, for not less than 10 consecutive quarters and not more than 12 consecutiveconsecutiveot quarters ending on December 31, immediately preceding the computation date.

- *AB21* – 3 – [(i)] (e) “Total contributions paid” means the total amount of contributions, due on wages paid on or before the computation date, paid by an employer not later than the last day of the second month immediately following the computation date.

[(j) “Unemployment risk ratio” means the ratio obtained by dividing the number of first payments issued in any consecutive 12- month period by the average monthly number of covered workers in employment as shown on the records of the Division for the samesamen 12-month period.] - 83rd Session (2025) – 3 – 2.

The Administrator shall, as of the computation date for each calendar year, classify employers in accordance with their actual payrolls, contributions and benefit experience, and shall determine for each employer the rate of contribution which applies to that employer for each calendar year in order to reflect his or her experience and classification.

(a) If one of the base period employers has paid 75 percent or more of the wages paid to the person during the person’s base period, and except as otherwise provided in NRS 612.551, the benefits, less a proportion equal to the proportion of wages paid during the base period by employers who make reimbursement in lieu of contributions, must be charged to the records for experience rating of that employer.

- *AB21* – 4 – (b) No benefits paid to a multistate claimant based upon entitlement to benefits in more than one state may be charged to the experience rating record of any employer when no benefits would have been payable except pursuant to NRS 612.295.

5.- 83rd Session (2025) – 4 – calendar year, compute the reserve ratio for each eligible employer and shall classify those employers on the basis of their individual reserve ratios.

The Administrator shall, as of the computation date for each calendar year, compute the reserve ratio for each eligible employer and shall classify those employers on the basis of their individual reserve ratios.

Each employer eligible for a contribution rate based upon experience and classified in accordance with this section must be assignedyear aaccording contributionto rate by the Administratorfollowing classes:nistrator for each calendar yearClass according1...................................................................0.25 topercent theClass following2...................................................................0.55 classes:percent Class 3...................................................................0.85 percent Class 4...................................................................1.15 percent Class 5...................................................................1.45 percent Class 6...................................................................1.75 percent Class 7...................................................................2.05 percent Class 8...................................................................2.35 percent Class 9...................................................................2.65 percent Class 10.................................................................2.95 percent Class 11.................................................................3.25 percent Class 12.................................................................3.55 percent Class 13.................................................................3.85 percent Class 15.................................................................4.45 percent Class 16.................................................................4.75 percent Class 17.................................................................5.05 percent Class 18.................................................................5.40 percent 7.

Class 1...................................................................0.25 percent Class 2...................................................................0.55 percent Class 3...................................................................0.85 percent Class 4...................................................................1.15 percent Class 5...................................................................1.45 percent Class 6...................................................................1.75 percent Class 7...................................................................2.05 percent Class 8...................................................................2.35 percent Class 9...................................................................2.65 percent Class 10.................................................................2.95 percent Class 11.................................................................3.25 percent Class 12.................................................................3.55 percent Class 13.................................................................3.85 percent Class 14.................................................................4.15 percent Class 15.................................................................4.45 percent Class 16.................................................................4.75 percent Class 17.................................................................5.05 percent - *AB21* – 5 – Class 18.................................................................5.40 percent 3 7.

- 83rd Session (2025) – 5 – (a) The highest of the unemployment risk ratios experienced in the 109 consecutive 12-month periods in the 10 years ending on March 31;

(b) The potential annual number of beneficiaries found by multiplying the highest unemployment risk ratio by the average monthly number of covered workers in employment as shown ononage the records of the Division for the 12 months ending on March 31;

(a) And there is substantially common ownership, management or control of the employers, the experience record attributable to the transferred trade or business must be transferred to the employer to whom the trade or business is transferred.

The rates of bothbothloyer to employers must be recalculated, and the recalculated rates become effective on the date of the transfer of the trade or business.

- *AB21*83rd –Session 6(2025) – (1)6 The– successor employer acquires the entire or a severable and distinct portion of the business, or substantially all of the assets, of the employer;

(d) Any liability to the Division for unpaid contributions, interest or forfeit attributable to the transferred trade or business must be transferred to the successor employer.

The percentage ofofiness liability transferred must be the same as the percentage of the experience record transferred.

To the extent allowed by federal law, the Administrator may, by regulation, suspend, modify, amend or waive any requirement of this section for the duration of a state of emergency or declaration of disaster proclaimed pursuant to NRS 414.070 and for any additional period of time during which thetheS emergency or disaster directly affects the requirement of this section if:

and - 83rd Session (2025) – 7 – (b) The action of the Administrator is approved by the Governor.

- *AB21* – 7 – Sec.

All payments collected pursuant to NRS 612.606 must be deposited in the Unemployment Compensation Administration Fund.

At the end of each fiscal year, thethepensation State Controller shall transfer to the Clearing Account in the Unemployment Compensation Fund the amount by which the unencumbered balance of the money deposited in the Unemployment Compensation Administration Fund pursuant to this subsection exceeds the amount of that money which the Legislature has authorized for expenditure during the first [90] 180 days of the succeeding fiscal year.