Hawaii 2022 Regular Session

Hawaii House Bill HB2323

Introduced
1/26/22  

Caption

Relating To Employment Security.

Impact

A significant aspect of HB 2323 is its provision for a moratorium on contribution rate increases until January 1, 2025, effectively delaying the financial obligations of employers related to unemployment insurance during a time of potentially high unemployment rates. This measured approach seeks to allow businesses to allocate funds towards growth and retention of employees rather than encountering steep increases in unemployment insurance costs. The proposed contribution schedules would adjust annually and reflect the current economic conditions, thus providing some flexibility in a fluctuating market.

Summary

House Bill 2323 aims to amend the Hawaii Revised Statutes regarding employment security, specifically addressing the contribution rates for unemployment insurance. The bill introduces a temporary reduction in employer contribution rates based on the relationship between the current reserve fund and the adequate reserve fund, creating a schedule of rates that vary according to what these funds reflect. The intent behind this adjustment is to alleviate some financial pressure on employers in the context of economic challenges, thereby supporting employment stability within the state.

Contention

Despite the bill's intentions, there may be concerns regarding the long-term sustainability of the unemployment insurance reserve fund. Critics might argue that lowering contribution rates may lead to insufficient funding for the unemployment insurance program when economic downturns occur. Furthermore, there may be discussions on whether such a temporary reduction serves the best interests of the workers who rely on unemployment benefits during crises, balancing the needs of employers with those of employees facing job instability.

Companion Bills

No companion bills found.

Previously Filed As

HI HB1375

Relating To Tourism.

HI SB1522

Relating To Economic Development.

HI SB2675

Relating To Renewable Energy And Food Security.

HI SB2329

Relating To Aquaculture.

HI HB2631

Relating To Aquaculture.

HI HB1149

Relating To The Coconut Rhinoceros Beetle Program.

HI SB1553

Relating To The Coconut Rhinoceros Beetle Program.

HI HB1800

Relating To The State Budget.

HI HB2504

Relating To Cigarette Taxes.

HI HB1085

Relating To The Hawaii Employment Security Law.

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