OREGON HOUSE PASSES COVID-19 UNEMPLOYMENT INSURANCE RELIEF

April 16, 2021 10:00 a.m.

In response to the ongoing economic fallout associated with the COVID-19 pandemic, Thursday night the Oregon House passed House Bill 3389, which will provide $2.4 billion in unemployment insurance relief to small businesses who have been impacted the most.

A release from the Oregon House Democrats said the bill recognizes that because of the impact of necessary public health responses to the pandemic, Oregon businesses faced unprecedented levels of layoffs. The release said that normally, such a jump in unemployment claims would trigger increases in unemployment insurance tax rates, at a time when small businesses are struggling to get back on their feet. Democrats said the legislation will remedy that by adjusting how UI rates are calculated and excluding 2020 and 2021 from businesses “experience ratings”.

HB3389 provides nearly $100 million in relief this year and has the long-term goal of reducing taxes collected by $2.4 billion while maintaining the solvency of the unemployment insurance trust fund.

The release said to limit spikes in unemployment insurance tax rates, HB3389 makes changes regarding the calculation and payment of unemployment insurance taxes to provide employers immediate and longer-term relief.