State Action and Legislation – Putting Americans Back to Work

In December 2011, the National Black Caucus of State Legislators convened for its 35^th Annual Legislative Conference. During the closing plenary session entitled, “Generating Jobs for Today and Tomorrow to Reignite the American Economy,” nationally renowned experts engaged in discussing why so many Americans are having a difficult time reentering the workforce. Click here to watch the closing plenary televised on C-SPAN2. One clear take-away from the discussion was that state lawmakers must work with federal, corporate, and non-profit stakeholders in order to enact sound policies.

The most recent Employment Situation Summary from the U.S. Department of Labor cites a national unemployment rate of 8.5%, representing over 13 million persons without a job. Below are some examples of legislation and state-led initiatives aimed to boost the economy and spur job growth, with a focus on increased access to small business loans, job training and apprenticeship programs benefits, and the targeting of unemployment discrimination.

 

Small Business Tax Credits and Hiring Incentives

FLORIDA - Back to Work Program (House Bill 207)
An Act Providing Hiring Incentives for Small Businesses

Sponsors Rep. Lori Berman; Co-Sponsored by *Rep. Alan Williams

Summary The program will provide assistance to thousands of out-of-work Floridians and assist small businesses by offsetting the cost of hiring new workers and encouraging employers to create long-term, private-sector jobs.

Background The Floridians Back to Work Program will provide up to $2,000 in wage subsidies to Florida employers that hire qualified individuals currently receiving or who have received unemployment compensation benefits within the last year. Employees must work 30 hours per week and be employed for four months for employers to receive the wage subsidy, and the law also allows for partial subsidies in qualified situations.

Goal The goal is to help place persons receiving unemployment benefits in secure jobs while providing small businesses the financial assistance to make these hires.

Concern The bill does not require a business to retain the employee longer than 120 days.

CONNECTICUT - Small Business Express Package , (House Bill 6801)
An Act Promoting Economic Growth and Job Creation in the State

Sponsors Rep. Christopher G. Donovan, Sen. Donald E. Williams, Sen. Martin M. Looney, Rep. Brendan Sharkey, Sen. John McKinney, Rep. Lawrence F. Cafero                                                  

Summary The bill creates a monthly credit of $500 for new jobs created in a two-year period beginning Jan. 1, 2012, with a $900 credit to companies that hire an honorably discharged veteran, a person with a disability or a job-seeker now collecting unemployment benefits. In addition, the bill provides $20 million to expand or establish manufacturing technology programs at community colleges and vocational-technical schools to ensure that worker skills meet business needs. Finally, the bill streamlines the process of doing business by reducing the timeframe for obtaining permits and creating a new online portal that will serve as a central point of access to business programs and services.

Background Connecticut Governor Daniel P. Malloy signed into law a bill intended to support small business growth, spur innovation and entrepreneurship, and increase the competitiveness of businesses in the state. The legislation creates a new Small Business Express Package that will provide small businesses with $180 million in incentives to create jobs, direct financial assistance including a loan program and matching grant program, and training assistance. The bill will also drive innovation and entrepreneurship by providing $25 in million loans for startup companies and matching grants, and providing incentives for “angel” investors to support high-tech and emerging technology startups.

Goal The primary focus of the legislation is to provide economic incentives to manufactures, major employers and small businesses that have often had difficult accessing the capital needed to grow its business and hire additional employees.

Concerns

• Health care coverage is not addressed, which can be a barrier to people starting businesses; and
• High costs of borrowing are associated with the bill, costing $1.1 billion over 20 years.

ILLINOIS - Small Business Job Creation Tax Credits, (Public Act 096-1498)
An Act Concerning Revenue and Small Business Hiring Incentives

Sponsors: Sen. Michael Noland, House Speaker Michael Madigan

Summary Public Act 096-1498, signed by Governor Pat Quinn on January 17, 2011, expands the Tax Credit to include businesses of any size that employ worker-trainees from the "Put Illinois to Work" program.

Background The law creates a tax credit to help reverse the trend of high unemployment in Illinois and help spur economic recovery by assisting and encouraging small businesses in the creation of local, sustainable new jobs. There are two categories of businesses eligible to receive this credit: small businesses with 50 or fewer total employees as of June 30, 2010; or any-sized business that hires a 2010 "Put Illinois to Work Program" worker-trainee.

Goal This legislation provides a strong incentive for employers to keep worker-trainees originally hired under the Put Illinois to Work program and move them into permanent positions.

Concern A business must have hired the worker-trainee before the end of 2011, limiting the number of businesses that could have received the tax credit.

MINNESOTA - Increased Funding for Small Businesses, (Non-Legislative, Governor Initiative)

Summary The Partnership provides up to $200 million to qualified Minnesota community banks for direct lending to small businesses. Funding for the expansion of the Partnership is provided by the Minnesota State Board of Investment, which manages the state’s pension funds. Qualifying banks are defined as well-capitalized banks with a “satisfactory” rating or above from the state Department of Commerce.

Background Through an initiative led by Governor Mark Dayton, Minnesota expanded its Small Business/Banking Partnership to provide additional funding to support small businesses in the state. The state hopes to increase the tax base and revenues while spurring job creation through increased lending to small businesses. The Partnership was expanded in response to small business concerns about difficulties accessing investment capital and credit.

Goal The goal of this initiative is to improve the flow of investment capital and provide credit to small businesses and to facilitate job retention in Minnesota. The direct lending from qualified banks will help businesses access more capital to expand and hire additional employees.

Concern Measuring the success of the partnership could take years to determine the return on investment and the number of jobs created.

 

Combating Unemployment Discrimination

NEW JERSEY - Employment Discrimination, (P.L.2011, Chapter 40)
An Act Concerning Employment Discrimination

Sponsors: Assemblyman Peter J. Barnes, *Assemblywoman Elease Evans, Assemblywoman Celeste M. Riley

Summary This bill prohibits an employer or employer’s agent, representative, or designee to publish, in print or on the Internet, an advertisement for any job vacancy that prohibits, announces or suggests that unemployed individuals need not apply for a job vacancy. The bill provides for the imposition of civil penalties, for a violation of the bill, in an amount not to exceed $5,000 for the first violation, or $10,000 for each subsequent violation, collectible by the Commissioner of Labor and Workforce Development.

Background New Jersey became the first state to pass a law prohibiting discrimination against the unemployed. The law, passed in March 2011, prohibits advertising job vacancies that include current employment as a job qualification, or indicate applications will be accepted only from currently employed people or that applications from the unemployed will not be accepted. Violators face a $1,000 fine the first time, $5,000 for a second offense, and $10,000 for each subsequent offense.

ILLINOIS - Employment Advertisement Fairness, (Senate Bill 2153)
An Act Concerning Employment Discrimination

Sponsors: *Sen. Annazette Collins, *Sen. Kimberly A. Lightford

Summary The bill provides that no employer, employment agency, labor organization, or an agent or representative of any such entity shall publish in print or on the Internet an advertisement for a job that contains a statement indicating that current employment is a job qualification or that an applicant who is not employed will not be considered. The bill provides that a violation is a civil penalty not to exceed $5,000 for the first violation and $10,000 for each subsequent violation, collectible by the Department of Labor in a proceeding under rules adopted by the Department. Lastly, the bill provides that unless otherwise authorized by law, it is a civil rights violation for any employer, employment agency, or labor organization to inquire into or to use a prospective employee's unemployment status or gap in employment history as a basis to refuse to hire or to act with respect to recruitment, hiring, or other employment decisions.

Background Recent cases depicted in the media, report many help-wanted ads have indicated employers will only accept applications from the currently employed or recently unemployed. Those who have been unemployed for a lengthy period are at a disadvantage in the job market, making it even more difficult for them to find work.

Goal The goal of these bills is to prevent discrimination based on unemployment status or on a gap in employment history.

Concerns

• Subjects the business community to significant fines, penalties, and unwarranted litigation without requiring a finding of knowing and purposeful conduct on the part of the employer; and
• Instructs businesses on hiring processes, placing them at risk of overly punitive repercussions from the state.

WISCONSIN - Align Unemployment Insurance with Job Training, (non-legislative, state-led initiative)  

Summary The Wisconsin Department of Workforce Development now requires new unemployment insurance (UI) claimants to register with the state's Job Service program. Notifying them immediately after they apply for UI assistance, the Department hopes to quickly connect the unemployed with tens of thousands of job listings posted on www.JobCenterofWisconsin.com and decrease the amount of time Wisconsinites spend out of work. The state began urging UI claimants to voluntary comply with the new requirement in addition to existing requirements that UI claimants search for work by contacting at least two employers each week.

Background The Wisconsin Job Center system is a Wisconsin-centered employment exchange, linking employers in all parts of the state and in communities that border Wisconsin with job seekers. 

Goals Having a streamlined system for unemployment insurance (UI) recipients will ease their ability to navigate an often difficult and time consuming process. Additionally, requiring UI recipients to register with the state will better connect those persons seeking employment with employers.

Concerns

• Although there is great promise for possible employment opportunities, there is no guaranty to the number of jobs created;
• Funding for state-run workforce development, employment training, and unemployment insurance benefits has seen a significant decrease over the years; and
• There is no guaranty that programs such as these will be continually funded in future years.

Apprenticeship Programs

Apprenticeship programs were touted by several panelists at our Annual Legislative Conference Closing Plenary as a way to enhance skills and careers, and ensure that American workers were ready for 21^st century jobs being created.

Under apprenticeship programs, individuals earn a salary while receiving training primarily through supervised, work‐based learning but also with related academic instruction. Sound investments in skills today are likely to yield high returns in the form of added earnings and improved productivity tomorrow and well into the future. The federal government currently allocates funding for apprenticeship programs. Many states have used these funds to implement state-led initiatives with the goal of training and educating the future workforce by enabling them to achieve the necessary skills to obtain high-wage jobs, yielding a high return on investment.

SOUTH CAROLINA  - Apprenticeship Initiative Yields Success

Summary Apprenticeship programs can be found in such industries as advanced manufacturing, information technology, energy, tourism, transportation and logistics as well as healthcare. One state initiative touted as a successful model is Apprenticeship Carolina™, a public-private partnership in South Carolina that engages the state’s technical college system with the business community.

Background Under the program, eligible businesses can receive a South Carolina tax credit of $1,000 for each registered apprentice employed for at least seven months during each year of an apprentice's program, for up to four years. As of October 2010, data shows that the program has stimulated the registration of an average of one new employer‐sponsored apprenticeship program per week and more than doubled the number of apprentices in the state.

Goal To provide an employer-sponsored flexible training program that cultivates highly skilled workers who meet the workforce demands of a competitive global economy, ultimately lowering the youth unemployment rate.

Concern Funding has been limited due to budget cuts at both the federal and state level.

 

Federal and State Resources for Apprenticeship Programs

• Apprenticeship Carolina works to ensure all employers in South Carolina have access to the information and technical assistance they need to create demand-driven registered apprenticeship programs.
•  US Department of Labor Office of Apprenticeship The National Registered Apprenticeship System operates in cooperation with State agencies, businesses, industry, employers, employer associations, labor and management organizations and educational institutions. It is the nationally recognized credentialing system for skilled and technical occupational training programs with almost 500,000 active apprentices in the nation.
• Urban Institute gathers data, conducts research, evaluates programs, offers technical assistance overseas, and educates Americans on social and economic issues — to foster sound public policy and effective government.
• National Urban League (NUL) is the nation’s oldest and largest community-based movement devoted to empowering African Americans to enter the economic and social mainstream. There are more than 100 local affiliates of the National Urban League located in 35 states and the District of Columbia providing direct services to more than 2 million people nationwide through programs, advocacy and research. Many of the Urban League’s local affiliates engage in apprenticeship programs. Click on these local chapters for more information: Chicago Urban League, Milwaukee Urban League, and Buffalo Urban League.

The * denotes National Black Caucus of State Legislators member