HB2504 - Wage Insurance Act Summary

• Creates a wage insurance program administered by the Department of Employment Security to provide income support to workers who become unemployed and obtain reemployment at lower wages.

• Imposes a 0.4% payroll tax on employees beginning January 1, 2018, with benefits payable starting June 1, 2018, for a maximum duration of 2 years.

• Eligible individuals must be unemployment insurance claimants at the time of reemployment and not rehired by their previous employer; benefits equal the difference between prior and new wages.

• Establishes the Wage Insurance Fund as a special state treasury fund with continuing appropriation for benefit payments and administrative costs; collects penalties up to $5,000 from non-compliant employers.

• Provides for hearings, appeals, recovery of erroneous payments with interest, and personal liability of corporate officers and business partners for unpaid taxes.