| Security Commission |
| Wednesday, 13 April 2011 09:52 |
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Legislature Overhauls Employment Security Commission This week, a conference committee chaired by Sen. Greg Ryberg (Aiken) resolved differences between the House and Senate versions of H.3442, legislation to reform the South Carolina Employment Security Commission (ESC). The House and Senate unanimously adopted the conference report, and the legislation now moves to Governor Mark Sanford’s desk for his signature. The final bill, which was one of the business community’s top priorities of 2010, creates the South Carolina Department of Employment and Workforce, terminates ESC commissioners and sets new elections for hearing officers, and restricts payouts for employees fired for gross misconduct. As of this week, a new tally for South Carolina’s loan from the federal government to pay unemployment benefits reached $832 million. The Senate Labor, Commerce and Industry (LCI) Committee also met this week to continue its work on legislation to restore the solvency of the Unemployment Insurance (UI) Trust Fund. Using updated recommendations from the Boston-‐based Lucas Group, the LCI Committee seemed receptive to the proposal, using an “array methodology,” which reduces rates for companies that use the system the least and increases rates for companies that use the system the most. The Lucas Group proposal separates employers into 20 classes and recommends raising the taxable employee wage base from $7,000 to $10,000 in 2010, to $12,000 in 2012 and to $14,000 in 2014. The last time the wage base was increased was 1983. As the wage base increases, the rate applied is expected to decrease. In the end, 13 classes of businesses should pay less, and seven should pay more. About 70,000 employees will be included in each rate class. In addition, the current maximum benefit for any employee will be frozen at the current rate of $326 per week. LCI Committee Chairman Ryberg expects legislation to be filed next week. |