CA AB1298

Increases the wage base for unemployment insurance contributions from $7,000 to $16,600 for calendar year 2009, and adjusts annually thereafter to the greater of $16,600 or one-third of the annualized state average weekly wage.

Raises employer contribution rates across all schedules by approximately 1.5 to 2.1 percentage points, with maximum rates increasing to 7.5% under the new rate table.

Increases the minimum contribution rate floor for employers and new employers from 3.4% to 4.5% for any rating period unless their reserve account has been subject to benefit charges.

Raises the wage disregard threshold for partial unemployment benefits from $25 to $200 per week, allowing workers to earn more in partial work without losing eligibility for unemployment compensation.

Makes an appropriation from the Unemployment Fund to cover increased benefit payments and declares the measure an urgency statute effective immediately.