OLR Bill Analysis

sHB 5369

AN ACT CONCERNING AN ADJUSTMENT TO THE METHOD FOR DETERMINING THE MAXIMUM WEEKLY UNEMPLOYMENT BENEFIT RATE.

SUMMARY:

This bill changes how the maximum unemployment benefit cap is determined. Current law caps a claimant's unemployment benefits at 60% of the average wage paid to the state's production (i.e., manufacturing) workers, as determined under the U.S. Bureau of Labor Statistics' standards for determining average production wages. The bill instead requires the cap to be 50% of the average wage of all workers in the state, as calculated under the Connecticut Quarterly Census of Employment and Wages or another method prescribed by the commissioner that accurately reflects the average wage of workers in the state.

Under current law, the average wage is determined for each year ending June 30. The bill instead requires it to be determined for each year ending March 31. By law, unchanged by the bill, the commissioner must annually determine a new cap by August 15. It becomes effective on the first Sunday of October but cannot increase more than $18 each year.

EFFECTIVE DATE: July 1, 2016

BACKGROUND

Related Bill

sHB 5367, reported favorably by the Labor and Public Employees Committee, freezes the maximum benefit cap at its current value ($598) for anyone who files for unemployment through 2018.

COMMITTEE ACTION

Labor and Public Employees Committee

Joint Favorable Substitute

Yea

13

Nay

0

(03/10/2016)