Council Urges Assembly to Reject Disastrous Unemployment Insurance Expansion

California’s unemployment insurance system is currently saddled with $19 billion in debt from claims made during the pandemic, debt that is continuing to grow and costing businesses billions of additional dollars on top of their already staggering unemployment insurance costs. That would only get worse under disastrous legislation (SB 799, Portantino) that would extend unemployment payments to striking workers. And it raises serious fairness issues about who and what activities should qualify for unemployment benefits.

The Bay Area Council today joined with the Los Angeles County Business Federation other groups in calling (read our floor alert ) on the state Assembly to oppose this fiscally and economically irresponsible legislation. In New York, where unemployment benefits were extended to striking workers, businesses have seen a $10 billion increase in unemployment insurance taxes. Let’s not repeat New York’s mistake.