2011 Unemployment Tax Rate Reduction

IBA Weekly Update

2011 Unemployment Tax Rate Reduction The House Labor and Workforce Development Committee voted on HB 1091 on Friday. January 22^nd.  The result was not what we all wanted.  The Committee added additional unemployment benefits for dependents of unemployed workers and removed the Governor’s proposal to expand unemployment benefits for unemployed workers participating in approved training programs. 

The addition of the unemployment benefits for dependents of unemployed workers will cost employers an estimated $37 million per year.  The administration of this unemployment benefit for dependents will be a nightmare to administer.  How will the Employment Security Department determine who is and who is not a dependent of an unemployed worker. The opportunity for fraud is HUGE!

This legislation is the one that will reduce employer paid state unemployment taxes by $300 million in 2011 AND assures $320 million in federally paid extended unemployment benefits to unemployed workers for the remainder of 2011.

IBA has been pressing for the legislation as proposed by the Governor, without the additional unemployment benefits for dependents of unemployed workers

CALLS TO YOUR LEGISLATORS ARE NEEDED NOW. It is critical that you contact your legislators NOW and ask them to:

“Please support the Governor’s unemployment tax adjustment and federally paid extended benefits proposal and please oppose adding a permanent unemployment benefits for dependents of unemployed workers.” 

It is critical that you and as many people as possible (your family members, friends, employees) call your - their legislators and deliver this message.  The best way to get your message to your legislators is to call 1-800-562-6000 and tell the legislative attendant your address so they can get your message to your legislators. 

If small businesses are to enjoy this state unemployment tax reduction in 2011 – up to a 63% tax reduction - we will need to generate 1000’s of calls to the legislators NOW!!

Next Week

SB 5068 Safety and Health Violations And Appeals proposes to require employers cited for a safety violation to correct the violation as required by the Department of Labor and Industries even if they appeal the citation.

The WA Department of Labor and Industries has proposed this legislation and is also proposing a revision that would work as follows:

First Here Is How The Original Legislation Would Work When an employer appeals an L&I citation to the Board of Industrial Appeals, L&I has the right to reassume jurisdiction of the case for reconsideration of the citation. An employer may appeal the Department’s decision during the Department’s reassumption to the Board of Industrial Insurance Appeals.  As currently written SB 5068 would require an employer to request a stay of abatement directly from the Board at the same time the case was may be being reconsidered by L&I. This could result in the Board issuing decisions on abatement for violations in appeals that are resolved in the reassumption process, rendering the Board's hearing, deliberation and decision on the abatement issue moot.  It also creates unnecessary efforts and expenses for both employers and L&I to participate in both the reassumption process and in expedited hearings process at the Board. 

Labor and Industries Proposed Rewrite  Remedies this jurisdictional problem by keeping the stay of abatement request with the appeal when reassumed by L&I and permitting the employer to renew the request for a stay of abatement if appealing L&I's redetermination decision, to the Board. With this amendment many requests for stays will be resolved during the reassumption process, reducing the need for Board reviews that would have been required by the current language

IBA will be expressing concerns about this legislation.  IBA urges you to contact your Senator about this legislation and express your concerns also.

National Health Care Reform Implementation  Both the House Health Care and the Senate Health Care committees will be considering the implementation of the National Health Care Reform Law passed last summer by Congress. 

IBA will be keeping track of this issue for you.

State Budget  Last week the House Ways and Means Committee considered adjustments to the state’s current budget in an effort to balance the current budget and the state budget for the next 2 years.  The Committee finished its work on the current budget. 

Next week, it begins looking at the Governor’s proposed budget for the next two years.  The budget for the next two years  will be  the biggest challenge for the 2011 Legislature.  IBA will be keeping tabs on what is going on and we will keep you advised.

Small Business Time To Correct Violations  HB 1150 will  be considered in the House State Government Committee at 8am on Wednesday morning.  IBA will be there supporting this legislation that will allow a small business to correct a violation within 7 days (currently the law says 2 day) to avoid a citation.  IBA will also be asking for a revision of the current law that stops the application of this law in the case where the agency head determines that the effect of the violation or waiver presents a direct danger to the public health, results in a loss of income or benefits to an employee, poses a potentially significant threat to human health or the environment, or causes serious harm to the public interest.  IBA has seen too many agencies use this exception to ignore the intent of this law passed last year.  IBA wants to revise the exemption so that it is not automatically used by the agency to ignore the intent of this law.  IBA will keep you advised.

Paying Court Costs And Legal Fees In Consumer Protection Lawsuits  SB 5079 will allow the Attorney General to sue a business for violating the consumer protection act and then it allows the prevailing party (including the Attorney General) to recover their legal fees from the losing party if they win the lawsuit.  This is in direct contraction to existing state law that IBA helped get passed in 1995 that requires agencies to pay the legal costs of small businesses if the agency sues a small business and loses.  This 1995 law was adopted  because small businesses are usually not in a position to defend against a lawsuit brought against them by a government agency.  This Washington State law tries to level the playing field between government agencies and small businesses and is patterned after a similar law on the federal level.  IBA will be at this hearing arguing against SB 5079.

Call your Senator and urge them to oppose SB 5079.

Yes, there is a lot going on next week that affects you and your small business.  IBA will be there fighting for you.