Protect Unemployment Insurance: Oppose H.B. 394
Ohio House Bill 394 is an attempt to address the shortfalls in the Unemployment Compensation Fund by reducing the benefits to workers worker by millions of dollars a year and, while at the same time, when fully implemented businesses will pay less in unemployment compensation. According to AFL-CIO president Tim Burga, this bill misdiagnoses the solvency problem by going after Ohio’s workers when independent experts have made it clear that the problem is inadequate employer contributions. Burga also has stated that this bill will hurt Ohio’s economy and will mean that unemployment compensation will not help stabilize the economy in the next recession like it did in the previous one. (1)
H.B. 394 would amend and revise sections of the Ohio Revised Code “to temporarily change the taxable wage base under Ohio's Unemployment Compensation Law, to remove dependency classes for unemployment compensation benefit eligibility, to temporarily freeze automatic increases for weekly unemployment compensation benefit amounts, to reduce the number of weeks for which an individual may receive unemployment compensation benefits, to abolish the Unemployment Compensation Advisory Council, and to make other changes to Ohio's Unemployment Compensation Law.” (2)
Ohio House of Representatives Insurance Committee is currently holding hearings. H.B. 394 is being opposed in these hearings by the Ohio Poverty Law Center (3), Ohio Association of Foodbanks (4), Advocates for Ohio’s Future (5), Policy Matters Ohio (6) and the AFL-CIO (7).
The Ohio Manufacturer’s Association, Ohio Chamber of Commerce, Ohio Retail Merchants Association and the Ohio Trucking Association have all publicly supported or testified on behalf of H.B. 394. (8)
According to Mike Smalz, attorney for the Ohio Poverty Law Center, HB 394 hurts low-wage earners and makes most workers vulnerable to being thrust into poverty if they become unemployed. It undermines the current unemployment program which is already one of the least favorable unemployment programs in the county. (3)
Major problems if HB 394 passes this year (3):
· The number of benefits weeks will be reduced from 26 to as few 12 and the maximum awards will be reduced for unemployed workers with dependents.
· Fewer people will be able to receive benefits.
· Additional weeks of waiting will be required. Under HB 394, there would be an extra waiting week each time a person has a week with earnings above the weekly benefit amount.
· Unemployment will be denied to many under the stricter Earnings Test. Ohio already has one the toughest earnings tests (qualifying amounts) in the country. For example, a minimum wage can work 52 weeks a year at 29 hours a week and still be ineligible for unemployment benefits. HB 394 requires laid-off workers to earn wages in at least three of the four quarters in the prior base year instead of two quarters, something that no other state requires.
· -Unemployed workers can be disqualified from the program due to insignificant, minor infractions of the handbook (instead of “Just Cause” for discharge).
· Older unemployed workers and workers with disabilities will be harmed. HB 394 would reduce a claimant’s unemployment benefits by the amount of any social security benefits they receive. Workers receiving SSDI would be disqualified for benefits even if they become unemployed after working during a SSDI trial work period.
Bottom Line: While harming employees, HB 394 gives employers a bonus, requiring lower contributions over time to fund the program! According to the Legislative Service Commission Fiscal Analysis, the bill will result in savings to employers of an average of $313 million annually through 2025, while reducing benefits to employees by an average of $475 million annually in the same period. (5)
What we can do:
From the AFL-CIO:
1) Enter your information to connect to your state representative now and ask them to oppose HB 394. Contact your State Representative here: https://actionnetwork.org/forms/stand-up-for-unemployment-insurance-and-oppose-hb-394
2) H.B. 394 was introduced to address the shortfalls in the Unemployment Compensation Trust Fund by proposing to dramatically cut laid off workers’ benefits. There does not appear to be a way to amend the bill. The AFL-CIO recommends that the legislature should scrap this bill and start over. Advocates for Ohio’s Future recommends forming a committee of stakeholders to include the state, counties, employers, and employees to make recommendations. (3) Click here to send a letter to your State Representative and urge them to oppose scrap HB 394 and start over or call them at 844-213-8172. You can sign up for updates on the AFL-CIO on this issue.
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From Advocates for Ohio’s Future: Call Now to Protect Ohio’s Working Families
Unemployment insurance gives workers and their families time to bounce back after an unexpected job loss by helping them pay their bills while they find a new job. It’s a smart poverty prevention program. AOF has our concerns about a bill in the Ohio House--HB 394--that would harm laid-off workers by severely cutting workers’ access to unemployment compensation. HB 394 goes farther than any other state to limit benefits available to the unemployed. Listen to or Read the story from WOSU Columbus
Call to Protect Ohio’s Workers
The Insurance Committee of the Ohio House needs to scrap this harmful bill and write a new one that makes Ohio’s unemployment system sustainable without cutting off help to families when mom or dad is laid off.
Please help us protect Ohio’s working families by calling the committee members below to tell them to drop this bill (HB 394) because Ohio’s unemployment system shouldn’t be fixed by taking support away from workers.
Representatives to Call (Start with #1)
1. Barbara Sears (Bill Sponsor) - 614-466-1731
2. Robert Hackett (Insurance Committee Chair) - 614-466-1470
3. Michael Henne (Vice-Chair) - 614-644-8051
4. Sarah LaTourette - 614-644-5088
5. Heather Bishoff - 614-644-6002
What to Say When you Call - “My name is _________ and I am from ___[town/county]___. I am calling to let the representative know that they should NOT support HB 394. I think that the unemployment system should repaired, but not on the backs of Ohio’s workers.”
Log your Call - Click here to log your call so we can track how many calls legislators received urging them to drop this harmful bill. Logging your call also helps us share your advocacy work with the media, lawmakers and other supporters.
1) Communication from Tim Burga, President, Ohio AFL-CIO, November 16, 2015.
2) House Bill 394. https://www.legislature.ohio.gov/legislation/legislation-summary?id=GA131-HB-394, accessed 1-16-16.
3) Testimony of Michael R. Smalz, Ohio Poverty Law Center on House Bill 394, House Insurance Committee, November 24, 2015. http://www.ohiopovertylawcenter.org/wp-content/uploads/2015/11/mrsHB394finaltestimonyattachment.pdf, accessed 1/16/16.
4) Ohio House of Representatives Insurance Committee House Bill 394. Testimony of Lisa Hamler-Fugitt, Executive Director, Ohio Association of Foodbanks, December 2, 2015. http://admin.ohiofoodbanks.org/uploads/news/Lisa_Hamler_Fugitt_HB_394_Dec_2_2015_final.pdf, accessed 1-17-16.
5) House Bill 394: Responses and Recommendations, Advocates for Ohio’s Future, http://advocatesforohio.org/perch/resources/AOF-HB-394-Unemployment-Position-Paper.pdf, accessed 1-16-15.
6) Unemployment compensation overhaul needs an overhaul. http://www.policymattersohio.org/wp-content/uploads/2015/11/Final-Statement.pdf
7) AFL-CIO Blog. http://ohioaflcio.com/state-rep-barbara-sears-seeks-to-strip-unemployment-benefits-from-workers-to-give-more-tax-breaks/, accessed 1-16-16.
8) Personal communication, Ohio Poverty Law Center, 1-18-16.