A state law taking effect Sunday will eliminate unemployment-insurance charges for businesses that temporarily fill positions left vacant when military reservists are deployed.
The new law closes a loophole that had employers paying benefits for temporary employees who were laid off to accommodate returning reservists.
Now, employers can apply to the state Employment Security Department for an exemption and specify which layoffs are due to returning military members.
“Employers who welcome reservists back into the work place shouldn’t be penalized through higher unemployment taxes,” said Employment Security Commissioner Karen Lee. “This law allows our unemployment system to treat both the temporary workers and their employers with compassion.”
The law does not apply to government agencies and some tribal and non-profit organizations.
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