HI lawmakers lower unemployment contribution rate, pass two privacy bills

In response to the COVID-19 pandemic, the Hawaii Legislature recently passed (and Governor David Ige signed) a measure lowering employers’ unemployment insurance (UI) contribution rate. Lawmakers also approved and sent two employment-related online privacy bills for the governor’s signature.

Temporary relief from pandemic’s economic fallout

After the pandemic caused record unemployment, Hawaii employers were expecting their UI contribution rate to increase significantly in 2021. They strongly supported House Bill (HB) 1278, which ultimately became law as 2021 Act 1. The measure was fast-tracked to provide them with relief from the higher rate.

The new law lowers the contribution rates employers would have been required to pay if the Hawaii Unemployment Insurance Division had followed its regular rate-setting process. For 2021 and 2022, the rate is now set at Schedule D, which will require employers to pay around $850 per employee per year, rather than the Schedule H rate, under which they would typically pay about $1,800 per worker.

Governor Ige signed the bill saying he wanted to enable employers to restart their businesses without a significant tax increase at a time when they couldn’t afford it. “Temporarily reducing unemployment insurance tax rates will help to contain the economic fallout from COVID-19 and expedite the state’s economic recovery,” he added.

Ige is expected to sign online privacy protections