LITTLE ROCK, Ark — Unemployment insurance laws in Arkansas will be seeing various changes in 2024, in part with new legislation introduced by lawmakers.
The changes are outlined in House Bill 1430 (HB1430), which was introduced by Rep. Robin Lundstrum (R) and Sen. Kim Hammer (R).
HB1430 was described by lawmakers to be "priority legislation" that they said would create various changes to the state's unemployment laws, in ways such as decreasing "employer unemployment taxes by an estimated $31 million."
Additionally. the new legislation will reduce the maximum number of benefit weeks, as it will go from 16 weeks to 12 weeks.
Other key points that the legislation will impact are as follows:
- Reduces the maximum unemployment tax rate from 14% to 10%
- Lowers the new employer unemployment tax rate from 2.9% to 1.9%
- Repeals Stabilization tax
The Arkansas State Chamber said they worked with the sponsors of the bill to provide these changes that they feel will "[ease] the burden on employers" and improve the overall business climate in the state.