UI Reform - 2010

After many, many hours of public and legislative committee discussions, a legislative study, research, and compromises from all involved, S.290 was signed into law on May 24, 2010. All involved agree it was a painful process and though there is much not to like in the bill, in the end it strengthens Vermont’s efforts to obtain a solvent unemployment trust fund. Additionally, it will likely preserve jobs for Vermonters and position Vermont to be more competitive in the future. Ultimately, the changes within S.290 will avoid increased costs to the state (repayment of interest) and employers (loss of FUTA credits).

H.647 and S.182 also contain UI Reform solutions. Specifically, H.647 increases penalties for late reports, increases the general penalty, as well as creates a penalty for up to $5,000 for misclassifying workers. S.182 requires a seller of a business to disclose their experience rating to a potential successor (buyer).

Lastly, H.792 made two changes related to New Hire reporting: 1) reports to be filed within 10 days of the first date of employment; and 2) employers must report the first date of employment, which is now defined to be “the first date services are performed for compensation”.

We offer the following resources to assist you in better understanding the changes enacted this year:

ü Employer Seminars

ü Frequently Asked Questions

ü Reform 2010 Benefit Impact details – includes information on:

§ Duration of benefits

§ Misconduct changes – definitions and examples

§ Severance pay - will be disqualifying

§ Waiting period - how it will work

§ Working part-time - changes and examples

ü Reform 2010 Effective Dates

ü Reform 2010 Employer Impact details – includes information on:

§ Misconduct changes – definitions and examples