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The House Finance and Taxation Committee yesterday approved the rewriting of unemployment compensation laws by a 16-6 vote. 

This important legislation, which is a Proposed Committee Bill (PCB) that originated in the House Economic Development and Tourism Committee, will help Florida businesses and employers struggling to meet their ever-increasing unemployment tax rates by:
• Changing the rule of construction for the statute from being liberally construed in favor of the claimant to a neutral construction,
• Expanding the definition of misconduct, and
• Providing for consideration of hearsay evidence during the benefit appeal process.

The Florida Chamber of Commerce supports adopting an array calculation in determining the unemployment rate assessed against employers to fairly allocate costs between minimum and maximum experience rating employers.  HB 7005 not only ties benefits to the state’s unemployment rate, but is in line with Governor Scott’s proposal to reduce, from 26 to 20, the number of weeks unemployed workers may receive benefits.

Unemployment compensation reform is a priority issue contained within the Florida Chamber’s 2011 Business Agenda. Currently, unemployment comp tax rates are expected to increase from $25 per worker to $72.10 per worker this spring, and another $10 increase will be added in June to cover interest owed on the $1.8 billion that Florida has borrowed from the federal government in an attempt to maintain the trust fund for jobless benefits.

The Florida Chamber thanks Rep. Doug Holder (R-Sarasota,) Chair of the Economic Development and Tourism Committee, which proposed this PCB. The Senate version of the bill, SB 728, is expected to appear in the Senate Commerce and Tourism Committee Tuesday.

Visit www.floridachamber.com/grassroots to update your grassroots issues in time for the 2011 Legislative Session!