Paid Parental Leave, Unemployment Insurance Reforms Advance in House

JUNEAU – The House Labor and Commerce committee unanimously advanced comprehensive legislation (HB 193) to expand unemployment insurance benefits and establish a paid parental leave program, while expanding state-funded training programs and implementing a 20% unemployment insurance tax cut for employers.

“Paid parental leave makes Alaska more competitive, will help reverse outmigration, and will assist businesses looking to recruit and retain employees,” said Labor and Commerce Co-Chair & bill sponsor Representative Carolyn Hall (D-Anchorage).

“Unemployment insurance benefits are long overdue for an increase and inflation-proofing after almost two decades of inflation and neglect,” said Representative Ted Eischeid (D-Anchorage), whose reforms are contained in the bill and who recently authored an ADN op-ed on the issue. “Unemployment insurance provides essential support to Alaska’s families during periods of transition and instability and helps Alaska’s employers by ensuring we are able to keep skilled and talented workers here in Alaska.”

“HB 193 is a step in the right direction toward making Alaska a more welcoming place to work and raise a family. I was glad to collaborate with my colleagues on the House Labor & Commerce Committee to advance this legislation, which will provide a new paid parental leave benefit for all Alaskan families, without raising taxes on Alaska’s workforce or businesses,” said committee member Representative Dan Saddler (R-Eagle River).

Provisions of House Bill 193 include:

• Establishing a paid parental leave program of up to 26 weeks, funded through employee and employer contributions
• Updating Maximum Weekly Benefits for workers and dependents in Unemployment Insurance, reversing 40 years of inflation-adjusted cuts
• Ensuring unemployment insurance and paid parental leave benefits keep pace with inflation in the future
• Increasing funding for the State Training and Employment Program (STEP), to address Alaska’s workforce shortages
• Twenty percent Unemployment Insurance tax cut for employers, to drive down costs and keep Alaska competitive.

“I appreciate the close collaboration of Department of Labor and Workforce Development leadership and staff to modernize benefits while protecting the solvency of the Unemployment Insurance trust fund,” said committee co-chair Representative Zack Fields (D-Anchorage).

HB 193 includes legislation provisions and funding mechanisms proposed and informed by Representatives Hall, Eischeid, Coulombe, Saddler, Burke, and Fields, and was developed based on modeling from the Alaska Department of Labor and Workforce Development, University of Alaska professor Kevin Berry, and the Alaska Children’s Trust.

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