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T&C Unemployment Insurance News and Updates – December 31, 2024

CONNECTICUT – UNEMPLOYMENT BENEFIT UPDATES

Effective January 1, 2025, the following updates will go into effect:

  • The minimum weekly benefit amount will increase to $42, up from $40.
  • The minimum base period earnings requirement will increase to $1,680, up from $1,600.

As a reminder, the maximum weekly benefit amount was frozen beginning October 2024 through October 2028. Therefore, the maximum weekly benefit will remain $721 in 2025.

LOUISIANA – UNEMPLOYMENT BENEFIT DURATION CHANGES

For new claims filed on or after January 5, 2025, unemployment benefit duration for claimants in Louisiana will be changing. Currently, claimants are eligible for up to 26 weeks of benefits. Under Act 412, the maximum number of eligible weeks for claimants will be reduced to a variable 12-20 weeks.

The maximum duration of benefits will be determined based on the average of the three most recently published state seasonally adjusted unemployment rates preceding the month in which the claimant files their initial claim for benefits. When the average unemployment rate is 5% or less, as is currently the case in Louisiana, the maximum duration of benefits will be limited to 12 weeks. Benefit weeks will increase incrementally based on any increase in the unemployment rate. The average unemployment rate will need to reach 8.5% or greater for the maximum number of benefit weeks to reach its cap, 20 weeks.

MARYLAND – PAID FAMILY AND MEDICAL LEAVE PREPARATIONS BEGIN JULY 1, 2025

Starting July 1, 2026, the Maryland Family and Medical Leave Insurance (FAMLI) system will support Maryland workers who need to take time away to care for themselves or a family member for up to 12 weeks. All employers with at least one worker in Maryland will be required to offer paid family and medical leave insurance.

To support FAMLI, payroll deductions will begin on July 1, 2025 with the first employer payments made to the state in October 2025. For employers with 15 or more employees, the rate will be 0.90% of covered wages to the Social Security cap, up to half of which (0.45%) may be withheld from the employees’ pay. For employers with fewer than 15 employees, the rate will be 0.45% of covered wages up to the SS cap, of which employers may withhold the full amount from employees’ pay.

MICHIGAN – BILL SIGNED, CHANGES TO WEEKLY BENEFIT AMOUNTS AND DURATIONS COMING BEGINNING TOMORROW

Michigan Governor officially signed six new bills into law on Monday, December 23. As a reminder, these bills included several laws impacting unemployment benefits. House Bill 40 will lengthen the duration that an individual can collect unemployment benefits from the current 20 weeks to 26 weeks. The weekly benefit amount will also increase from $362 (plus $6 for each dependent) to $614 per week (plus $26 per dependent) incrementally over the next 3 years.

Beginning on January 1, 2025, the maximum weekly benefit becomes $446 plus $12.66 for each dependent. Then, on January 1, 2026, the maximum weekly benefit becomes $530 plus $19.33 for each dependent. On January 1, 2027, the maximum weekly benefit becomes $614 plus $26 for each dependent. Beginning December 31, 2027, the State Treasurer will increase the maximum weekly benefit rate and the unemployment benefit rate for each dependent by the Consumer Price Index (CPI) annually.

Additionally, Senate Bill 975 amends the Michigan Employment Security Act to allow a victim of domestic violence who left their work voluntarily because of the domestic violence to still be eligible for unemployment benefits. The bill also makes employees who voluntarily reduce their work to below full-time levels considered to have left work without good cause.

Finally, Senate Bill 962 specifies that a claimant is actively seeking work by completing qualifying activities at least three times a week. It also changes the number of hardship waiver applications that the Unemployment Insurance Agency (UIA) can consider when waiving recovery of improperly paid benefits.

RHODE ISLAND – 2025 TAX RATES AND TAXABLE WAGE BASE ASSIGNED

Unemployment Tax Schedule G will remain in effect for Rhode Island employers in 2025, with rates ranging from 1.1% to 9.7%. These rates will be reduced by 0.21% to offset the Job Development Assessment.

The new employer rate will be 1.21% for calendar year 2025 and will also be reduced by 0.21% to offset the Job Development Assessment.

The taxable wage base for most employers will increase to $29,800 in 2025, up 2.1% from $29,200 in 2024. Employers at the highest tax rate will have a taxable wage base of $31,300.

Darby Gibson

Author Darby Gibson

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