California Governor Gavin Newsom vetoed a bill that would have made striking workers eligible for unemployment benefits. WGA and SAG-AFTRA backed the legislation amid their walkout, but Newsom said…
backed the legislation amid their walkout, but Newsom said in a statement that the state’s UI trust fund is “vulnerable to insolvency.”
“Any expansion of eligibility for UI benefits could increase California’s outstanding federal UI debt projected to be nearly $20 billion by the end of the year and could jeopardize California’s Benefit Cost Ratio add-on waiver application, significantly increasing taxed on employers,” Newsom said, adding that the state is responsible for the interest payments on the federal UI loan and has paid $362.7 million in interest with another $302 million due this month.
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