Alaska would set payroll charges for unemployment and job training

Alaska would collect worker payments for state programs and employer payments for unemployment benefits and job training. The charges would apply to wages covered by Alaska's contribution rules. Workers would pay 0.20% of covered wages for the state training and employment program and, with federal approval, 0.25% for another state program. The worker unemployment contribution rule would not apply under the approved package. Employers would owe a 0.4% training charge, offset by their unemployment payments. They would owe no training charge when the credit covers it. Lawmakers could set aside this revenue for employment assistance and training. Employer unemployment rates would use the full average benefit cost rate, adjusted for employer experience and fund solvency. Rates would range from zero to 6.5%, with minimums of 1% for employers with fewer than four quarters of experience and 5.4% for rate class 21. The employer rules, the 0.25% worker charge, and removal of the worker unemployment contribution rule would require federal approval on or before July 1, 2027. The 0.20% charge would apply to contracts entered into on or after January 1, 2027. Approval-dependent rules would start January 1, 2027, or the day after federal approval, whichever is later.

Eligible unemployed workers would receive weekly payments based on their earlier wages, capped initially at $470. Workers would have to meet unemployment benefit eligibility rules. The initial schedule reaches $470 weekly for earlier wages of at least $48,750. The United States Secretary of Labor would have to approve these rules on or before July 1, 2027. Each January 1, Alaska would adjust the highest wage level in the benefit table to match growth in the wage limit used for contributions, rounded to the nearest $250. The maximum weekly payment would rise by $2 for each $250 increase in that wage level. Neither amount could decrease. These rules would start January 1, 2027, or the day after federal approval, whichever is later.

Alaska Vocational Technical Center instructors would submit fingerprints and pay fees for state and national criminal history checks. The requirement would cover instructors at the Alaska Vocational Technical Center. The center would send fingerprints and fees to the Alaska Department of Public Safety to help decide whether an instructor is qualified. Instructors serving on December 31, 2026, could continue without the required check until July 1, 2027. The instructor check requirement would take effect January 1, 2027.

Certain independent sports officials would fall outside Alaska's unemployment insurance rules. The exemption would cover neutral officials, such as referees and scorekeepers, at events where competitors receive no wages or salary. Officials would need a written contract naming them as independent contractors and a set fee per game. They would have to be free to reject games and work for other organizations. The exemption would not apply to a benefit claim involving an event sponsored by an employer for whom the official normally performs other work, such as teaching or coaching. The United States Secretary of Labor would have to approve these rules on or before July 1, 2027. The exemption would start January 1, 2027, or the day after federal approval, whichever is later.

Certain owners and officers would be outside workers' compensation, which provides insurance coverage for workplace injuries, unless their organization chooses to cover them. This would cover corporate executive officers, cooperative members or leaders, and limited liability company members who own at least 10% of the business. Municipal and nonprofit executive officers would also be exempt. An organization could cover an exempt person by specifically including that person in its insurance contract. Coverage would last while that contract remains in effect. These coverage rules would take effect January 1, 2027.