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February 4, 2010                                                                                     

House Passes Unemployment Insurance Rate Freeze Legislation

Protects employers from large per-employee assessment increase

(BOSTON) – State Representative Timothy R. Madden of Nantucket joined his colleagues in the Massachusetts House of Representatives in passing legislation to halt a scheduled increase in the unemployment insurance assessment that all employers pay.

As a result of increased claims to the state’s Unemployment Insurance Trust Fund during the current economic slowdown, the contribution rate employers pay into the fund was scheduled to increase dramatically. The bill passed by the House of Representatives will freeze the rate at the 2009 level.

“While we remain concerned about those who rely on unemployment insurance to survive, we must also lessen the burden on our businesses, which fund our unemployment system,” House Speaker Robert A. DeLeo said. “This bill sends a clear message to businesses across the Commonwealth that we are serious about economic growth and job creation in Massachusetts.”

“Without this legislation, higher unemployment insurance rates would have resulted in increased business costs, forcing businesses to make difficult choices that could result in further job loss,” said Rep. Madden. “I applaud my colleagues for supporting this important legislation. In order to pull ourselves out of the current recession and unemployment rates, we need to be investing every dollar we can into businesses, as to encourage economic and employment growth.  This bill protects businesses from an excessive increase to their operating costs, which would be felt by both employees and consumers.”

In 2009, the average employer contribution into the Unemployment Insurance Trust Fund was $584 per employee. Without legislative action, this per-employee assessment would have jumped to approximately $852.

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