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Utah House passes HB 43 to limit Social Security offsets on unemployment benefits
Summary
The Utah House passed House Bill 43 to change how Social Security retirement benefits affect unemployment insurance calculations, aiming to eliminate cases where retirees receive little or no UI. Sponsor Rep. Steven Mascaro cited a Supreme Court decision and constituent stories; the measure passed 60–15 and will go to the Senate.
The Utah House on Feb. 1 passed House Bill 43, an amendment to the state’s unemployment compensation law that changes how Social Security retirement benefits are counted when calculating unemployment insurance.
Sponsor Representative Steven Mascaro said the bill responds to what he called an unfair offset that reduces or eliminates unemployment benefits for older workers who also receive Social Security. Using a hypothetical example he presented to the chamber, Mascaro said a 66‑year‑old worker (“Mary”) earning $16,000 could receive $62 a week under current rules while a 44‑year‑old (“John”) in the same pay band would receive $154. Mascaro warned that, as written after a scheduled sunset, "Mary will now receive 0 unemployment insurance benefits." He framed the change as correcting an age‑based disparity.
Mascaro cited Utah Supreme Court precedent, referencing Merrill v. Utah Labor Commission, and told colleagues the court had faulted treatment that singles out similarly situated people because they receive Social Security. "Treating similarly treated people differently based on if they receive Social Security is a violation of Utah's uniform operation of law guarantee," he said in floor remarks.
Representative C. Watkins supported the bill on the floor, recounting calls from Price residents who were surprised and angered to learn their benefits were reduced after reemployment and retirement. "I really, really feel like we need to support this bill," Watkins said.
Mascaro told the House the measure recalculates the formula used to determine unemployment benefits so that Social Security offsets are applied in a way that treats claimants more equally. He said the change would be revenue‑neutral to the Unemployment Insurance Trust Fund because benefits are paid from employer contributions to the trust. The bill was described as having unanimous interim committee support and backing from the state Department of Workforce Services’ Employment Advisory Council.
After debate, the House voted to pass HB 43 with 60 yes votes and 15 no votes. The bill will be transmitted to the Utah Senate for further consideration.
Clarifying details from the floor: the sponsor used two illustrative profiles ("Mary," age 66, and "John," age 44), cited a historical statute sunset and a Supreme Court decision, and asserted the change would be revenue neutral because the Unemployment Insurance Trust Fund — funded by employer contributions — covers benefits.
Next steps: HB 43 moves to the Senate; no Senate action is recorded in today’s transcript.
