Colorado Businesses May Receive Relief on Unemployment Insurance Premiums

By Cameron Baker

The pandemic created several new challenges for Colorado businesses. Labor shortages and a volatile workforce remain some of the biggest challenges. During the height of the pandemic, businesses laid workers off or close their doors in response to lockdowns and other COVID-19 measures, which led to an alarming increase in unemployment claims. On May 1, 2021, approximately 190,000 Coloradans were filing for continuous unemployment benefit coverage, and the state had already distributed over $9 billion in unemployment benefits since the beginning of the pandemic.[1] The surge in unemployment claims depleted Colorado’s unemployment insurance trust fund (UITF), leading to the need for Colorado to obtain a billion-dollar loan from the federal government to keep the UITF afloat. The deficit subjected Colorado employers to higher unemployment insurance premiums.

This week, a bill has been proposed to replenish the UITF with $600 million in funding, which, if passed will lower the premiums for Colorado businesses and provide some much-needed financial relief. Today, continuous unemployment benefit coverage claims are down to approximately 20,000 and, if passed, the bill will add a sense of security to Colorado businesses.  

The Colorado Chamber of Commerce and a group of 75 Colorado businesses worked alongside the bill sponsors Colorado Senator Chris Hansen, Senator Bob Rankin, Colorado Representative David Ortiz and Representative Marc Snyder to introduce the bill.[2]

Take Away

Campbell Litigation will track the bill and provide Colorado businesses an update as the legislative season progresses.

[1] Press Release: Update for the Week Ending May 1st: Continued Decline in Initial Claims and Work Search Updates | Department of Labor & Employment (colorado.gov).

[2] Statement by Colorado Chamber on $600 Million UITF Proposal, Business Coalition Led by Colorado Chamber Secures Bipartisan Compromise. April 27, 2022.