NY State Senate Bill 2025-S210

Senate Bill S210

2025-2026 Legislative Session

Relates to employer contributions to the unemployment insurance fund and establishes the unemployment insurance solvency reserve fund

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Current Bill Status - In Senate Committee Labor Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 08, 2025	referred to labor

co-Sponsors

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2025-S210 (ACTIVE) - Details

Current Committee:: Senate Labor
Law Section:: Labor Law
Laws Affected:: Amd §581-a, Lab L; add §92-kk, St Fin L
Versions Introduced in Other Legislative Sessions:: 2021-2022: S7431
2023-2024: S4551

2025-S210 (ACTIVE) - Summary

Provides for the rate of employer contributions to the unemployment insurance fund in the 2026 fiscal year; establishes the unemployment insurance solvency reserve fund.

2025-S210 (ACTIVE) - Sponsor Memo

                                 
BILL NUMBER: S210

SPONSOR: HELMING
 
TITLE OF BILL:

An act to amend the labor law and the state finance law, in relation to
employer contributions to the unemployment insurance fund and establish-
ing the unemployment insurance solvency reserve fund

 
PURPOSE:

This bill aims to provide predictability and surety to small businesses
in terms of their expected contributions to the unemployment insurance
fund and also to establish a reserve fund to bolster unemployment when
needed and ensure its solvency.

 
SUMMARY OF PROVISIONS:

Section 1. Establishes the employer contribution rate for the unemploy-
ment insurance fund in state beginning in 2024 and describes the formu-
lary

Section 2 Establishes an unemployment insurance solvency reserve fund
and identifies monies that may now be available or may be available in
the future for deposit in such fund.

Section 3. This act shall take effect immediately

 
JUSTIFICATION:

New York's unemployment system paid out more than $100 billion to quali-
fied New Yorkers during 2020 and 2021 in response to closures related to
the global pandemic. 4.7 million New Yorkers received benefits for all
or some portion of that period. Unfortunately, in the rush to help
struggling citizens our unemployment funds payments exceeded its assets.
As of October 2024, New York State still owes the Federal Government $6
billion, and employers are paying an additional $15 per employee just to
account for interest on this debt. Total unemployment insurance costs
per employee average between $400 and $450 per employee. These costs
place a significant burden on businesses, especially small businesses,
and Empire State Development has recently testified that the number of
small businesses in New York State decreased by at least 3% between 2019
and 2024.

Small Businesses did not create this deficit, and they should not be
asked to sacrifice any more money, simply because the state is unable to
track its own expenditures and balance its own books. This legislation
would establish in law a fixed contribution from employers to the unem-
ployment insurance fund. Further, it would create a solvency fund in
State Finance law, that could draw on other state revenues, settlement
dollars or unencumbered Federal funds. We cannot place any more burdens
on small employers. Instead, we must make their rates more predictable
and put our own fiscal house in order. This bill would assist on both
counts.

 
LEGISLATIVE HISTORY:

2023-2024: S.4551 referred to Labor/ A.4657 referred to Labor

2021-2022: S.7431 referred to Labor/A.8627 held for consideration in
Labor

 
FISCAL IMPLICATIONS:

To be determined.

 
EFFECTIVE DATE:
This act shall take effect immediately.

2025-S210 (ACTIVE) - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                    210
 
                        2025-2026 Regular Sessions
 
                             I N  S E N A T E
 
                                (PREFILED)
 
                              January 8, 2025
                                ___________
 
 Introduced  by Sens. HELMING, BORRELLO, CANZONERI-FITZPATRICK, GALLIVAN,
   LANZA, OBERACKER, TEDISCO -- read twice and ordered printed, and  when
   printed to be committed to the Committee on Labor
 
 AN  ACT to amend the labor law and the state finance law, in relation to
   employer contributions to the unemployment insurance fund  and  estab-
   lishing the unemployment insurance solvency reserve fund
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Section 581-a of the labor law is amended by adding  a  new
 subdivision 3-a to read as follows:
   3-A. NOTWITHSTANDING THE PROVISIONS OF SECTION FIVE HUNDRED EIGHTY-ONE
 OF THIS TITLE TO THE CONTRARY AND NOTWITHSTANDING THE ACTUAL SIZE OF THE
 FUND INDEX, THE RATE OF CONTRIBUTION FOR A QUALIFIED EMPLOYER IN THE TWO
 THOUSAND  TWENTY-SIX  FISCAL  YEAR  SHALL BE THE PERCENTAGE SHOWN IN THE
 COLUMN HEADED BY THE SIZE OF THE FUND INDEX AT FIVE PERCENT OR MORE  AND
 ON  THE  SAME  LINE  WITH SUCH QUALIFIED EMPLOYER'S NEGATIVE OR POSITIVE
 EMPLOYER'S ACCOUNT PERCENTAGE PURSUANT TO  SUBDIVISION  TWO  OF  SECTION
 FIVE  HUNDRED  EIGHTY-ONE OF THIS TITLE, UNLESS USING THE ACTUAL SIZE OF
 THE FUND INDEX WOULD RESULT IN A  LOWER  RATE  OF  CONTRIBUTION  FOR  AN
 EMPLOYER,  IN  WHICH  CASE  SUCH EMPLOYER SHALL BE LIABLE FOR SUCH LOWER
 RATE OF CONTRIBUTION.
   § 2. The state finance law is amended by adding a new section 92-kk to
 read as follows:
   § 92-KK. UNEMPLOYMENT INSURANCE SOLVENCY RESERVE FUND.   1.  THERE  IS
 HEREBY  ESTABLISHED  IN  THE  STATE  TREASURY  A FUND TO BE KNOWN AS THE
 "UNEMPLOYMENT INSURANCE SOLVENCY RESERVE FUND". SUCH FUND SHALL  CONSIST
 OF  MONEYS  DEPOSITED THERE AND MONEYS SHALL BE WITHDRAWN FROM SUCH FUND
 ONLY FOR THE PURPOSES AS PROVIDED THEREIN.
   2. SUCH FUND MAY CONSIST OF  BUT  NOT  BE  LIMITED  TO,  DISCRETIONARY
 FEDERAL  FUNDS  DESIGNATED AS RECOVERY FUNDS DURING A PERIOD OF ECONOMIC
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.

                                                            LBD00704-01-5
 S. 210                              2
 
 DOWNTURN AND NON-RECURRING STATE FUNDS DERIVED FROM SETTLEMENT  PROCEEDS
 AND OTHER SOURCES.
   3.  SUCH  FUND MAY ALSO CONSIST OF AMOUNTS APPROPRIATED OR TRANSFERRED
 PURSUANT TO STATUTE.
   4. THE AMOUNTS AVAILABLE IN SUCH RESERVE MAY BE USED IF THE  FOLLOWING
 CONDITIONS ARE MET:
   (A) THE UNEMPLOYMENT INSURANCE FUND HAS BORROWED MONEY FROM THE FEDER-
 AL GOVERNMENT FOR THE PURPOSE OF PAYING BENEFITS TO CLAIMANTS;
   (B)   THE  FEDERAL  GOVERNMENT  HAS  IMPOSED  AN  INTEREST  ASSESSMENT
 SURCHARGE ON THE STATE OF NEW YORK FOR LOANS TO THE UNEMPLOYMENT  INSUR-
 ANCE FUND; AND
   (C) THE FEDERAL GOVERNMENT IS RECOVERING THE PRINCIPAL ON MONEY LOANED
 TO  THE UNEMPLOYMENT INSURANCE FUND FOR THE PAYMENT OF BENEFIT TO CLAIM-
 ANTS.
   § 3. This act shall take effect immediately.

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Senate Bill S210

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Sponsored By

Pamela Helming

Current Bill Status - In Senate Committee Labor Committee

co-Sponsors

George M. Borrello

Patricia Canzoneri-Fitzpatrick

Patrick M. Gallivan

Andrew J. Lanza

2025-S210 (ACTIVE) - Details

2025-S210 (ACTIVE) - Summary

2025-S210 (ACTIVE) - Sponsor Memo

2025-S210 (ACTIVE) - Bill Text download pdf

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