In case you missed it, this past October the state of New York increased the maximum unemployment benefits from $504 per week to $869 per week, making a nearly 73% increase. According to Department of Labor statistics, 27% of those receiving benefits will be paid the maximum, while an additional 28% will see an increase above the former threshold.
To fund this increase, the state is increasing employer contributions to the unemployment insurance fund. Whereas in the past employers contributed a fixed amount, beginning in 2026, employers will be required to contribute up to 18% of the state’s average annual wage, which the DOL is expected to determine before the end of 2025.
At the same time, the state has now paid off a former debt of approximately $7 billion to the federal government’s own unemployment trust fund. Thanks to this, interest surcharges formerly being paid by employers will be eliminated, which should have employers see an approximate $100 per employee reduction in payments.
And finally, more individuals overall will likely be eligible for benefits under the new framework, as full-time employees who work less than 30 hours per week could be eligible for partial benefits. Similarly, those who are receiving full benefits, but who find part-time work could likewise remain eligible for partial payments.
If employers have not already, they should coordinate with their legal counsel and payroll personnel to ensure compliance with these new changes.
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