HB0220 - Wage Insurance Act

• Creates a wage insurance program administered by the Department of Employment Security providing benefits to individuals who obtain reemployment at lower wages after unemployment.

• Imposes a 0.4% payroll tax on employees beginning January 1, 2020, with benefits payable starting June 1, 2020, for a maximum of 2 years.

• Benefits equal the difference between wages at the time of separation from prior employment and wages from new employment, paid twice monthly after initial payment within 2 weeks of claim filing.

• Establishes the Wage Insurance Fund as a special state treasury fund with continuing appropriation for benefit payments and Department administrative costs.

• Includes disqualification provisions for false statements (2-year penalty plus 15% benefit penalty), recovery procedures for erroneous payments, civil penalties up to $5,000 for employer non-compliance, and personal liability for corporate officers/members for unpaid taxes.