Changes for Nonprofit Employers in the UI System

The House Commerce Committee heard testimony on H.29, which would require small nonprofit employers with fewer than four employees that do not participate in the Unemployment Insurance (UI) system to notify prospective employees that they will be ineligible for UI benefits. This bill attempts to correct a problem some employees faced during the pandemic when they filed for UI benefits, not realizing that their employer’s small size made them ineligible for benefits. An amendment to the bill would also require employers that elect to reimburse the UI Trust Fund rather than make regular payments to provide the Vermont Department of Labor with a security deposit.