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SF 176

Unemployment compensation-employer contributions.

2025 Regular Session Introduced by John Kolb

Wyoming SF 176 would cap an employer's total unemployment insurance contributions per employee per year, limiting liability and shaping rate calculations for all employers.

S:Died in Committee Returned Bill Pursuant to SR 5-4
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Bill Summary · SF 176

Summary — SF 176 (2025): Unemployment compensation — employer contributions

Status: Introduced Feb 3, 2025. Sponsor: Sen. Kolb. Primary action: would amend W.S. 27-3-503(b), (d) and (f) and W.S. 27-3-505(d) to specify a statutory maximum contribution that may be charged to an employer for the state unemployment compensation fund. Effective date stated in bill: January 1, 2026. Fiscal note: LSO reports fiscal/personnel impact not determinable (insufficient time to complete).

Purpose / intent

The bill’s stated purpose is to place an explicit statutory cap on the total unemployment compensation contributions an employer may be required to pay (expressed as a maximum amount per employee), and to make related adjustments to the contribution-rate provisions of Wyoming statute. The aim appears to be limiting employer liability for combined base rates, experience-rating variations and adjustment factors.

Key provisions (as reflected in the bill text)

  • Amends W.S. 27-3-503(b), (d) and (f) and W.S. 27-3-505(d) to require that an employer’s total contribution in any calendar year not exceed a maximum amount “per employee” specified in subsection (a) of W.S. 27-3-503.
  • Confirms that:
    • Rate variations based on an employer’s experience (benefit ratio) are subject to the per-employee maximum.
    • New employers’ assigned rates (including the statutory minimum rate and any adjustment factors) are likewise subject to the per-employee maximum.
    • Adjustment factors computed under W.S. 27-3-505(d) are algebraically added to the employer’s contribution rate, but the total contribution per employee in any year cannot exceed the statutory maximum.
  • Sets effective date of the act as January 1, 2026.

Note: the provided draft text is partially garbled. A parenthetical “($1.00)” appears in the document but its placement and whether it is the intended cap are unclear.

Who would be affected

  • Primary: Wyoming employers subject to state unemployment insurance contributions (including new employers).
  • Secondary: The Wyoming unemployment compensation fund and potentially the state’s fund solvency/reserve planning; unemployed workers could be indirectly affected if fund financing or benefit policy changes result.
  • Administrative: Department of Workforce Services (or the agency administering UI) for implementation and rate computations.

Fiscal and policy implications

  • The fiscal note provided states the fiscal impact is “not determinable” due to insufficient time to complete analysis.
  • Potential impacts to consider (not resolved by the bill text):
    • A per-employee cap could reduce employer outlays in some scenarios but may constrain the fund’s receipts and affect solvency, requiring higher base rates for others or changes to benefits, state reimbursements, or general fund support.
    • Administrative changes would be required to ensure rate-setting and adjustment computations comply with a statutory cap.
    • Effect on new employers and experience-rating incentives depends on the cap level and interactions with existing rate-setting formulas.

Procedural / timeline notes

  • Introduced Feb 3, 2025; assigned to Senate Labor committee.
  • Bill text shows an effective date of Jan 1, 2026.
  • According to the header, the bill ultimately “Died in Committee — Returned Bill Pursuant to SR 5-4.” (The provided document also contains unrelated/garbled legislative text fragments; the available procedural record is limited.)

Uncertainties / recommended follow-up

  • The bill as provided does not clearly show the dollar amount of the proposed per-employee maximum (the draft contains a stray “($1.00)” that cannot be confidently interpreted as the cap). Obtain the clean bill text to confirm the exact cap language and the value (if any) inserted in subsection (a).
  • A complete fiscal analysis is necessary to assess impacts on the Unemployment Insurance trust fund, employer rates, and state budget exposures.
  • Review implementing rules and whether additional statutory or rule changes would be needed for rate schedules, notices, and employer communications.

Compiled from official sources — confirm details with the bill’s official record.

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