OLR Bill Analysis
AN ACT CONCERNING THE CHARGING OF UNEMPLOYMENT COMPENSATION BENEFITS TO EMPLOYERS.
This bill creates a “non-charge” against an employer's unemployment tax experience rate for any unemployment benefits paid to a former employee who voluntarily left suitable work with the employer without good cause attributable to the employer. In effect, this will keep an employer's experience rate from increasing when an employee voluntarily leaves and begins working for another employer but is subsequently laid off by the second employer and becomes eligible for unemployment benefits.
In general, a portion of an employer's unemployment 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 of time. 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).
Current law allows a non-charge for employees who voluntarily leave work (1) to care for a seriously ill spouse, parent, or child or (2) due to a discontinuance of transportation to work. The bill expands this non-charge to include voluntarily leaving any work without good cause attributable to the employer.
EFFECTIVE DATE: October 1, 2017
Labor and Public Employees Committee