IOWA – UNEMPLOYMENT SYSTEM UPDATE
Beginning on June 3, 2025, Iowa will transition to a “once in a generation” system for managing unemployment claims. The state is making these changes to make the UI process easier, faster, and more secure. Currently Iowa utilizes two systems and multiple accounts to manage the UI process – one for unemployment claim processing and one for managing your job postings/recruitment. This change will consolidate all unemployment claims-related activities onto one site – https://iowaworks.gov.
There will be a window from Wednesday, May 28 – Monday, June 2 where the system will be down. This should only impact employers who use the site for job recruitment. Thomas & Company employers do not need to take any steps at this time as we communicate with the state through their SIDES exchanges and other methods.
KENTUCKY – DEADLINE EXTENDED FOR DUA BENEFITS FROM FEBRUARY’S STORMS
The deadline for filing for Disaster Unemployment Assistance (DUA) benefits for those impacted by the strong storms in February has been extended to May 27. The deadline for general FEMA assistance is now May 26th. The counties covered under this application are Breathitt, Clay, Floyd, Harlan, Knott, Lee, Letcher, Martin, Owsley, Perry, Pike, Estill, Johnson, Simpson, Leslie and Woodford.
The deadline for April storm victims to apply for unemployment assistance is June 23. Their deadline for general FEMA assistance is June 25.
DUA benefits for individuals impacted by the recent tornados that impacted Missouri and Kentucky have not been announced yet.
Those living in any county designated by FEMA can apply through the Kentucky Career Center, either online or by calling 502-564-2900.
MASSACHUSETTS – IMPORTANT CHANGES TO NOTE
On May 6th, the Massachusetts Department of Unemployment Assistance (DUA) transitioned to a new online system for unemployment correspondence and with this change, they ceased mailing any paper documents to employer or TPAs. All unemployment matters are now handled through the portal and as a third-party provider, Thomas & Company has access to these documents and can respond on your behalf. MA DUA also started sending out notifications of new documents to both the employer and TPA which is causing some confusion for our employers.
Please rest assured that Thomas & Company is receiving these documents and responding on your behalf unless you have been previously notified of additional actions that are necessary to grant us access to your account. If you have been notified, you need to take action to ensure that Thomas & Company is listed as your TPA on the MA website so we can act on your behalf. If you have questions or need assistance, please reach out to Jennifer Redden ([email protected]).
DID YOU KNOW? MERGERS & ACQUISITIONS: THE IMPORTANCE OF DOCUMENTATION
When two companies come together, you need a solid foundation of historical data from the predecessor employer. Think of it like piecing together a puzzle. Having all the right documents will not only help you stay compliant but will also ensure a seamless transition. That’s why today, we want to help you understand the importance of documentation – and what documentation is commonly needed – for mergers and acquisitions.
Visit our website to learn more and keep an eye out as we post weekly to help keep you informed!
We’ll be taking a break next week for Memorial Day as we honor those who made the ultimate sacrifice. We’ll be back with more informative M&A content on June 4.
IOWA – UNEMPLOYMENT REFORM BILL SIGNED INTO LAW
On March 12, 2025, we reported that a bill (SF607) was introduced that would reduce employer unemployment taxes by nearly $1 billion over 5 years. This bill was enacted into law on May 14th.
Under this bill, the taxable wage base that employers’ use will be cut nearly in half to an estimated $19,800. Before this law was passed, the taxable wage base was calculated on 66.7% of the statewide average weekly wage and the new law uses a calculation of 33.3%. Should the new calculation ever result in a wage base less than the federal definition ($7,000), then the federal definition will be used.
The bill also modifies the employer contribution rates, including changing the highest contribution rate from 9.0% to 5.4%. In addition, there will only be 4 contribution rate tables, and 9 benefit ratio ranks within each table going forward.
Iowa employers should expect to see some relief with these new calculations based on an assumption that their experience remains the same.
MARYLAND – DELAYS IMPLEMENTATION OF PAID FAMILY AND MEDICAL LEAVE PROGRAM UNTIL 2027
Governor Wes Moore has signed legislation that will delay the implementation of Maryland’s Paid Family and Medical Leave Insurance (FAMLI) program. Both payroll deductions and benefits have been delayed an additional six months. Payroll deductions are now scheduled to begin on January 1, 2027 with benefits becoming available on January 3, 2028.
To stay up-to-date with the latest news about Maryland’s FAMLI Division, you can sign up for their newsletter here.
WASHINGTON – NEW LAW ALLOWS FOR UNEMPLOYMENT FOR STRIKING WORKERS AND A CHANGE TO THE VOLUNTARY CONTRIBITION DEADLINE
Governor Bob Ferguson signed into law Senate Bill 5041 that allows striking workers in the State of Washington to collect unemployment benefits. Washington joins New York and New jersey as the only states with provisions allowing UI benefits for striking workers. This law goes into effect on January 1, 2026.
Under the new law, striking workers can qualify for unemployment benefits provided they:
• Serve out a disqualification period (the second Sunday following the first date of the strike or the strike ends)
• After this period, the individuals must serve a one-week waiting period and then can only collect 6 calendar weeks of benefits
• If the strike is found to be prohibited by state or federal law, any benefits paid are liable for repayment by the individual
Washington also has a provision for making voluntary contributions to reduce tax rates and as a part of this bill, they have changed the deadline from March 31 to March 1. If an employer is charged benefits due to a strike, the department will make an evaluation to determine if the employer is eligible to make the voluntary payment and will provide notice to those employers of their eligibility.
There are some concerns about policy and legal issues that may challenge this new law and there is a possibility of additional litigation. Thomas & Company will continue to monitor any challenges to the new laws.
WASHINGTON – MINI-WARN ACT GOES INTO EFFECT JULY 27,2025
The Washington Securing Timely Notification and Benefits for Laid-Off Employees Act, also known as Mini-WARN Act expands upon federal requirements for Washington employers.
The Act, which will go into effect on July 27, 2025, applies to employers with 50 or more employees and requires any employer who will be closing a business or issuing a mass layoff to provide 60-day notice. This legislation also broadens the scope of the requirements to include a business closing, the sale of a business, and short-term layoffs that were deemed three months or less but then are extended beyond three months.
Employers are also prohibited from laying off employees on paid family or medical leave, unless they qualify for an exception.
Employees who are entitled to notification but do not receive appropriate notification may sue for back pay and the value/cost of any lost benefits, up to 60 days. If an employer fails to appropriately pay all applicable amounts within three weeks from the date of termination, the employer may be liable for $500 per day of violation.
ENDING UNEMPLOYMENT PAYMENTS TO JOBLESS MILLIONAIRES ACT OF 2025
A bill has been introduced into the US Senate that would prohibit anyone who earns $1 million or more in a base period from any source to be ineligible for unemployment benefits. In 2021 alone, nearly 15,000 individuals earning $1 million or more collected $213.6 million in unemployment benefits. In 2022, an additional $57.6 million in benefits were collected.
While this bill would have limited impact on the general employee population in the US, it does help in preserving the trust fund balances in the states to ensure that those who are in need of the temporary unemployment assistance can still access the benefits they need. Thomas & Company will continue to monitor this legislation.
