DE
Delaware House Bill HB433

Delaware 2023-2024 Regular Session

Delaware House Bill HB433

Introduced
6/6/24  
Introduced
6/6/24  
Engrossed
6/18/24  
Refer
6/6/24  
Engrossed
6/18/24  
Enrolled
6/30/24  
Refer
6/18/24  
Passed
8/15/24  
Enrolled
6/30/24  

Caption

An Act To Amend Title 19 Of The Delaware Code Relating To Unemployment Compensation.

Impact

The new methodology for calculating unemployment assessment rates is expected to provide significant immediate relief to employers with reduced new employer assessment rates during the initial years of implementation. By incorporating elements such as employer size and industry add-ons into the assessment calculations, the bill aims to make the system more equitable and better aligned with each employer's risk factors. Proponents argue that these modifications will help stabilize the Unemployment Trust Fund while also facilitating smoother recovery as the economy rebounds from downturns.

Summary

House Bill 433 aims to amend Title 19 of the Delaware Code to revise the experience rating methodology for assigning unemployment assessment rates to employers. This revision replaces the existing benefit wage ratio methodology with a benefit ratio methodology, aligning Delaware's practices with those of 19 other states. The proposed changes seek to create a more responsive system that better sustains the solvency of the Unemployment Trust Fund and simplifies administration for employers. Along with these changes, the bill introduces a phased implementation of permanent taxable wage bases for new employer assessments through 2027, starting at $12,500 in 2025.

Sentiment

Overall sentiment regarding HB 433 appears supportive among business stakeholders who believe these adjustments will enhance the operational framework of unemployment insurance in Delaware. They view the bill as a necessary reform aimed at improving financial predictability for businesses and fostering a more robust labor market. However, there are concerns about how the transitions in financial assessments might affect smaller businesses that may find it challenging to adapt to the new structures as they are phased in.

Contention

A notable point of contention surrounding HB 433 involves the structural shift from the current assessment model, which has been criticized for potentially benefitting larger employers over smaller ones. Critics argue that the new system might inadvertently shift financial burdens to those who are already struggling, particularly in sectors experiencing high volatility. Ensuring that the new assessment rates are fair and equitable across all employer sizes remains a critical issue that stakeholders will continue to monitor as the bill progresses through the legislative process.

Latest HB433 Activity

Companion Bills

No companion bills found.

Similar Bills

KS HB2570

Substitute for HB 2570 by Committee on Commerce, Labor and Economic Development - Defining benefit year, temporary unemployment, wages and other terms in the employment security law, requiring electronic filing for certain employers, establishing qualifications for employment security board of review candidates, extending the deadline for new accounts following business acquisitions, making certain changes to the employer rate schedules and lowering rates for new employers, enabling employers to report claimant work search issues, confirming legislative coordinating council oversight for the new unemployment insurance information technology system implementation, authorizing the secretary to grant additional temporary unemployment in certain circumstances, requiring the secretary to publish certain information, abolishing the employment security interest assessment fund and providing relief for negative account balance employers.

KS SB478

Defining benefit year, temporary unemployment and other terms in the employment security law, requiring electronic filing for certain employers, establishing qualifications for employment security board of review candidates, extending the deadline for new accounts following business acquisitions, making certain changes to the employer rate schedules, enabling employers to report claimant work search issues, confirming legislative coordinating council oversight for the new unemployment insurance information technology system implementation, authorizing the secretary to grant temporary unemployment, requiring the secretary to annually publish certain data and abolishing the employment security interest assessment fund.

HI SB716

Relating To Hawaii Employment Security Law.

NJ A4047

Revises unemployment compensation law.

LA HB891

Provides for technical revisions to the unemployment compensation statutes

KS HB2401

Defining "benefit year" and "temporary unemployment" in the employment security law, allowing the extension of temporary unemployment; requiring electronic report filing by certain employers, permitting discretion in appointments and terms for the temporary employment security board of review, delaying new account formation after certain business acquisitions, requiring the new unemployment insurance system to allow employer reports regarding claimant compliance and authorizing the legislative coordinating council to extend new system implementation deadlines.

HI HB477

Relating To The Hawaii Employment Security Law.

NJ S788

Exempts certain volunteer first responders from coverage under "unemployment compensation law"; excludes from gross income amounts received for certain volunteer emergency services.