(LEX 18) — There’s a brand new Kentucky home invoice that adjustments unemployment insurance. Some suppose it will probably get folks again to work sooner, whereas others fear, that the U.S. could slip into a recession and suppose it would harm workers’ paychecks.
House Bill 4 was first launched in February 2022 and handed in April. The new laws that may go into effect in January 2023 has made adjustments to the commonwealth’s unemployment insurance. Kentucky Chamber of Commerce’s Kate Shanks explains the way it took place.
“The bill made changes to the weeks of unemployment available when you become unemployed through no fault of your own. And it ties those weeks to the state unemployment rate,” said Shanks.
The bill changes the amount of weeks unemployment insurance is available with times ranging from 12 weeks to 29 weeks, based on the unemployment rate. Now, 26 weeks are available. This was a key piece of legislation for the chamber. One of the biggest goals was to get people back to work and strengthen the local economy.
“We actually wished to take a look at how we might use, make adjustments in the system to encourage folks to return to work as shortly as doable,” stated Shanks.
Kentucky Center for Economic Policy’s Policy Director Dustin Pugel says laws in place now helps fight the harms of a recession permitting employees that get laid off to proceed to get by. He believes the brand new laws will change that.
“There’s a lot of research that shows that when you give people more time, they get jobs that fit them better, which is good for them and good for their employers and have higher wages. But when you’re explicitly saying you have to take a lower paying job after six weeks or else we cut off your employment unemployment benefits, what you’re saying is we want people to be working a lower wage job,” said Pugel.
Pugel explains that this bill could impact rural Kentuckians, African Americans, people who are disabled, and who have a criminal history – all of whom can have difficulty finding work.
“Pegging this invoice to the statewide unemployment price, you are leaving these teams of parents behind,” stated Pugel.
Pugel does say the invoice presents extra possibilities for workers to keep away from lay-offs if employers apply for the work-sharing applications.
“So essentially a program within unemployment insurance that allows employers to reduce working hours and have unemployment benefits make up some of the lost income.”
Leaders with the Kentucky chamber say they’re constantly reviewing new insurance policies to assist folks with employment.
Kate Shanks stated, “Those barriers you face today with work, we are working hard to remove those barriers for you through policy and through the program, we do programming we do through our foundation.”