The Bucks (Don't) Stop Here

What Employers Need to Know About Changes to Kentucky’s Unemployment Benefits

CHANGES MADE TO THE STATE’S UNEMPLOYMENT insurance (UI) program by the Kentucky General Assembly went into effect on January 1, 2023. The changes to the state’s UI program are significant, one of the most important involving work search requirements being met to avoid negatively impacting benefit eligibility.

Under the new law, Kentuckians will only be eligible for 12 weeks of UI, a vast reduction from the 26 weeks of benefits available before the passage of HB 4. This will remain in effect at least until July regardless of any rise or decrease in unemployment rates. Likewise, according to KYPolicy.org, a change to the types of jobs UI claimants must take under HB 4 can reduce benefits to as few as just six weeks. (A complete list of details regarding the changes to work search requirements as well as rights and responsibilities when claiming UI benefits can be found online at kcc.ky.gov/career/Pages/2023-UIChanges.aspx.)

Kentucky’s new Work Share Program, however, seeks to help companies and their employees offset the difficulties often associated with loss of employment. The program seeks to avoid financial downturns and avoid layoffs through the temporary usage of UI benefits to supplement pay for employees whose hours have been reduced by 10 to 40%. This gives employees the opportunity to keep their jobs and employers can preserve their skilled workforce members.

Businesses must comply with a state-approved plan allowing employers to reduce hours of qualified workers who will then receive both wages and UI benefits via the Work Share Program. A Work Share Program can be in effect for a maximum of one year (12 months); employees can choose to not participate in the program, which also does not subsidize seasonal employers in their respective off-seasons.

To find out more about the Work Share Program, visit www.kcc.ky.gov. Questions can also be directed to Nancy Spivey, Vice President of Talent Strategies for the NKY Chamber at (859) 426-3654 or by emailing nspivey@ nkychamber.com. NKY