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Senate pauses employment-security penalty changes after small-business objections
Summary
Senate Bill 5, presented by the Department of Workforce Services, would change filing penalties and a fraud penalty structure for unemployment reporting to bring Utah into federal compliance. Senators representing small employers objected to graduated penalties; the bill was circled for further negotiation.
Senate Bill 5, a department bill from the Utah Department of Workforce Services, came before the Senate on Jan. 27. Senator Jenkins summarized the measure as a multi-part update to employment-security law: it modifies filing penalties for late quarterly reports, revises reporting mechanics to align with federal requirements and makes technical corrections to definitions and fraud penalties.
Jenkins told the Senate the department is trying to improve the timeliness of employer reports required by the Bureau of Labor Statistics and described the proposed graduated penalty structure: ‘‘It starts there, and what it does is changes the penalty…$50 for each 15 days that you’re late filing, but…it has a cap of not to exceed $250 on the penalty.’’ He said the department has not updated the penalty schedule in roughly 20 years.
Several senators representing small employers pushed back. Senator Blackhawk described the administrative burden on small farms and businesses and asked whether thresholds or compliance windows could be reconsidered. Senator Bramble said he supported most of the bill but opposed the new graduated penalty approach and signaled he would offer an amendment to restore the previous $50 penalty. ‘‘This is simply onerous to small businesses,’’ Bramble said, urging restoration of the original penalty language.
Given the expressed concerns and pending amendment proposals, the Senate voted to circle the bill—allowing sponsors and interested members to reconcile penalty language and technical issues before the bill proceeds.
What’s next: SB 5 was circled; sponsors indicated willingness to confer with members and return with an amendment or negotiated language.
