Bill S107-2013

Relates to the duration of rights of benefits

Relates to the duration of rights of benefits.

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  • Jan 8, 2014: REFERRED TO LABOR
  • Jan 9, 2013: REFERRED TO LABOR

Memo

BILL NUMBER:S107

TITLE OF BILL: An act to amend the labor law, in relation to the duration of rights of benefits

PURPOSE: This bill would reduce the number of weeks that an individual in New York can collect State unemployment benefits from 26 weeks to as few as 16 weeks if unemployment falls below 5.5% in the claimants county of residence with an additional week added for each 0.3% increase in the county unemployment rate up to a maximum of 26 weeks.

SUMMARY OF PROVISIONS: § 1- Amends Subdivision 4 of section 590 of the labor law to change the duration that benefits are limited to.

JUSTIFICATION: When unemployment is extraordinarily high, it is sometimes necessary for claimants be provided 6 months to have the opportunity to find employment in a challenging job market. As the unemployment rate decreases because the job market improves the amount of time needed to find suitable employment should be reduced as well. This will prevent claimants who become unemployed during a time of low unemployment from delaying their job search until the final weeks of their unemployment benefits.

Most importantly, this will reduce the unemployment taxes paid by employers. These taxes raise the cost of doing business and lead to higher consumer prices and reduced willingness of employers to hire. Similar reform of the duration of unemployment benefits was included in Florida's recent comprehensive unemployment compensation program reform measures estimated to reduce unemployment taxes for employers by over $600 million.

LEGISLATIVE HISTORY: 2011/2012: S.6992 Referred to Labor

EFFECTIVE DATE: Immediately.


Text

STATE OF NEW YORK ________________________________________________________________________ 107 2013-2014 Regular Sessions IN SENATE (PREFILED) January 9, 2013 ___________
Introduced by Sen. GALLIVAN -- read twice and ordered printed, and when printed to be committed to the Committee on Labor AN ACT to amend the labor law, in relation to the duration of rights of benefits THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. Subdivision 4 of section 590 of the labor law, as amended by chapter 457 of the laws of 1987, is amended to read as follows: 4. Duration. Benefits shall [not be paid for more than one hundred and four effective days in any benefit year, except as provided in section six hundred one and subdivision two of section five hundred ninety-nine of this chapter.] BE LIMITED TO: (A) SIXTY-FOUR EFFECTIVE DAYS IN A BENEFIT YEAR IF THE AVERAGE UNEM- PLOYMENT RATE OF THE CLAIMANT'S COUNTY OF RESIDENCE IS AT OR BELOW FIVE AND FIVE-TENTHS OF A PER CENT AT THE TIME OF THE FILING OF A VALID ORIGINAL CLAIM. (B) AN ADDITIONAL FOUR EFFECTIVE DAYS IN ADDITION TO THE SIXTY-FOUR EFFECTIVE DAYS IN A BENEFIT YEAR FOR EACH THREE-TENTHS OF A PER CENT INCREMENT IN THE AVERAGE UNEMPLOYMENT RATE OF THE CLAIMANT'S COUNTY OF RESIDENCE ABOVE FIVE AND FIVE-TENTHS OF A PER CENT AT THE TIME OF THE FILING OF A VALID ORIGINAL CLAIM. (C) UP TO A MAXIMUM OF ONE HUNDRED FOUR DAYS IN ANY BENEFIT YEAR, EXCEPT AS PROVIDED IN SECTION SIX HUNDRED ONE OF THIS TITLE AND SUBDIVI- SION TWO OF SECTION FIVE HUNDRED NINETY-NINE OF THIS TITLE. (D) FOR THE PURPOSES OF THIS SUBDIVISION THE TERM "AVERAGE UNEMPLOY- MENT RATE OF THE CLAIMANT'S COUNTY OF RESIDENCE" MEANS: (I) FOR CLAIMANTS RESIDING OUTSIDE THE CITY OF NEW YORK, THE AVERAGE UNEMPLOYMENT RATE OF THE COUNTY IN WHICH THE CLAIMANT CLAIMS PRIMARY RESIDENCE FOR THE MOST RECENT THREE MONTHS PRECEDING THE FILING OF A
VALID ORIGINAL CLAIM AS CALCULATED BY THE DEPARTMENT, DIVISION OF RESEARCH AND STATISTICS. (II) FOR CLAIMANTS RESIDING IN THE CITY OF NEW YORK, THE GREATER OF SUBPARAGRAPH (I) OF THIS PARAGRAPH AND THE AVERAGE UNEMPLOYMENT RATE OF THE CITY OF NEW YORK FOR THE MOST RECENT THREE MONTHS PRECEDING THE FILING OF A VALID ORIGINAL CLAIM AS CALCULATED BY THE DEPARTMENT, DIVI- SION OF RESEARCH AND STATISTICS. S 2. This act shall take effect immediately.

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