Unemployment Insurance in Alaska
Issue Overview: Alaska's unemployment benefit amounts are generally increased by the legislature every four to six years. The last increase took place approximately 10 years ago. Several attempts to pass legislation to increase unemployment benefit amounts over the past few years have failed.
The Senate Labor and Commerce introduced SB 120 on March 15, 2007. SB 120 proposes to increase the maximum weekly benefit from the current level of $248 for a single worker and $320 for a claimant with dependents, computed on base period wages of $26,750, to $370 for a single claimant and $442 for claimants with dependents, computed on base period wages of $42,000. This is a much higher proposed increase than the previous bills. The bill would also establish a process that would provide annual increases in the maximum base wage and benefit based on increases in the average weekly wage as determined by a methodology established in regulation.
Such benefit increases would require increased premiums from employers.
The Senate Labor and Commerce Committee changed the premium sharing from 80 percent employer and 20 percent employee to a 73/27 split and increases the qualifying wage from $1,000 in each of two quarters to $2,500. These changes relieve employers of about half the cost of the benefit increases.
NFIB Position: Support. The benefit has not been increased in over 10 years and there are structural changes with significant positive impact to employers.
Issue Status: SB 120 was passed by the Legislature. We expect that the governor will sign the bill as it was actively supported by her Department of Labor and Workforce Development.
