Bipartisan Bill to Save Businesses Money, Improve Unemployment Insurance for Colorado Workers Wins Committee Approval

SB22-234 will invest $600 million to improve and expand unemployment benefits, create a more resilient future economy

DENVER, CO – A bipartisan bill to save businesses money and improve unemployment insurance for Colorado workers cleared the Senate Finance Committee today on a unanimous vote.

Sponsored by Senator Chris Hansen, D-Denver, and Senator Bob Rankin, R-Carbondale, SB22-234 would infuse the state’s unemployment insurance trust fund (UITF) with pandemic relief funds while expanding eligibility and improving benefits to help support Colorado’s working families.

“When the pandemic hit and thousands of Coloradans lost their jobs, the state’s unemployment insurance program was there to help families pay rent and keep food on the table,” Hansen said. “Now we’re doubling down to protect this critical safety net for working families and our economy by investing hundreds of millions into unemployment insurance to protect future solvency while improving and expanding the benefits it offers. This bill will better prepare us to weather any future economic downturns, and help make sure unemployment insurance continues to benefit working Colorado families for years to come.”

SB22-234 invests $600 million to shore up the solvency of the UITF and protect against potential future economic downturns. This will save businesses money on premiums and provide certainty to workers who depend on unemployment benefits to continue paying for essentials like food, rent, and transportation while they search for new work.

The bill makes further improvements to ensure the unemployment system works better for Colorado families. It raises the benefit amount part-time workers can receive from 25 percent to 50 percent of the weekly benefit amount, in order to remove disincentives for workers who are laid off to find part-time employment while seeking a full-time job. It also creates a Benefit Recovery Fund to ensure that workers in Colorado who lack work authorization can access the benefits they contribute to and their employers pay premiums into.

The bill also eliminates the one-week waiting period to help workers access their benefits as quickly as possible once the Fund reaches a sustainable level, clarifies what constitutes an overpayment, and requires employers to inform their workers of their unemployment benefit eligibility upon separation.

SB22-234 will now move to consideration before the Appropriations Committee. Track the bill’s progress HERE.