Nonprofit Unemployment Insurance Update

As anticipated, this week, S. 159, An act relating to unemployment insurance coverage, was introduced and referred to the Senate Committee on Economic Development, Housing and General Affairs. This bill proposes to eliminate the Unemployment Insurance exemption for nonprofit employers with fewer than four employees in order to ensure all workers are covered by UI.

If you are a small nonprofit that would be impacted by this legislation, or would like more information, please reach out to [email protected]. We expect the committee to take testimony on this issue this session and it is important that they hear from stakeholders.

The Unemployment Insurance Study Committee also recently released their final recommendations on this issue, as well as in regards to limiting benefit claim liability for reimbursable employers. We encourage you to read the section of the report that starts on page 19.

Update 1/12/22: In the House Committee on Commerce and Economic Development on Wednesday 1/12, Rep. Kornheiser said in addition to addressing UI coverage for small nonprofits and their employees, “policy mechanisms to incent more nonprofits to become like regular employers.” You can watch the committee discussion here.