ALERT: It’s time to act on unemployment reform

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A bill that brings historic, business-friendly reforms to the state’s struggling unemployment system needs your help to overcome resistance in the Senate.

Despite the unanimous approval of the State House, HB 6633 is in limbo in the Senate – with time quickly running out as the Legislative Assembly’s June 9 deadline approaches.

The bill restores the solvency of the unemployment trust fund – insolvent for 48 of the past 50 years – saving $ 84.25 million per year while generating $ 130.9 million in new annual income for the fund.

The reforms bring benefits and eligibility requirements more in line with other states, lowering taxes for 73% of Connecticut businesses while demanding a more equitable contribution from heavy users of the system.

What does HB 6633 do?

  • Reduced maximum solvency tax rate from 1.4% to 1%
  • Reduced the minimum and widens the maximum employer experience tax rate, from 0.5-5.4% to 0.1-10%
  • Increase the taxable salary base from $ 15,000 to $ 25,000, then the index to inflation
  • Increases the minimum wage for the base period required to qualify for unemployment benefits from $ 600 to $ 1,600, then indexed to inflation, except when the federal government pays additional benefits to unemployment insurance claimants
  • Freezes the maximum weekly benefit amount for four years
  • Differs unemployment insurance benefits until the severance pay are exhausted

A solvent unemployment fund minimizes the need for federal loans – a $ 1 billion burden borne by employers after the 2008-2010 recession, with another billion dollars in loans expected after the pandemic.

The unemployment reforms in HB 6633 represent a deal between unions, employers, the Lamont administration and a bipartisan group of state lawmakers – if they were in place after the last recession we would have entered the pandemic with a fund solvent trustee.

TALK TO YOUR STATE SENATOR TO RESUME CONNECTICUT AND SUPPORT HB 6633.



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