Maryland 2023 Regular Session

Maryland House Bill HB724

Introduced
2/8/23  

Caption

Unemployment Insurance Modernization Act of 2023

Impact

This legislation significantly impacts Maryland's unemployment insurance program by altering key metrics that determine the financial obligations of employers. The bill's amendments include a new structure for calculating the maximum weekly benefit amount for claimants, which will be tied to the state average weekly wage. The new methodology is designed to ensure that unemployment benefits provide more adequate support for workers during times of unemployment, thus better aligning the benefits with current economic realities.

Summary

House Bill 724, titled the Unemployment Insurance Modernization Act of 2023, aims to amend provisions regarding employer contributions to the Unemployment Insurance Trust Fund in Maryland. The bill proposes an adjustment to the taxable wage base that determines how much employers contribute to the fund, reflecting an increasing percentage of the average annual wage for employees in the state. As a result, starting in the year 2027, this taxable wage base is set to represent 25% of the average annual wage, thereby making it more responsive to economic conditions and wage growth across the state.

Contention

Debate around HB 724 may arise from the implications it holds for employers, especially small business owners who may face increased contributions. Critics may argue that hiking the taxable wage base could burden employers further during economic downturns, thereby potentially leading to job losses. Supporters, however, will likely advocate for the bill on the grounds that it ensures fair compensation for the unemployed and enhances the state's ability to adequately fund unemployment benefits, reflecting a more equitable approach to worker protection.

Companion Bills

MD SB670

Crossfiled Unemployment Insurance Modernization Act of 2023

Similar Bills

MD SB670

Unemployment Insurance Modernization Act of 2023

MD HB205

Unemployment Insurance Modernization Act of 2024

MD SB104

Unemployment Insurance Modernization Act of 2024

MD HB554

Unemployment Insurance Modernization Act of 2025

MD SB752

Unemployment Insurance Modernization Act of 2025

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.

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.