Paying Off Unemployment Insurance Debt: A Win for Businesses, Labor, and the Economy
There’s a long history of tension between business and labor groups, even though both depend on each other for success. Across all levels of government, these issues often become politicized, forcing leaders to identify as either “pro-labor” or “pro-business.” But why should anyone have to pick sides? Both are equally important to the ongoing success of our communities. Outside of government jobs, labor groups would have few members without the support of the business community. Whenever a business leaves New York State, our employment, tax base, and overall economic health take a hit.
Amidst the current political landscape, it’s my hope that we can find ways to work together on mutually beneficial issues. In that spirit, a budget proposal coming out of Albany has the Greater Rochester Chamber very encouraged.
The New York State Assembly has proposed in its draft budget to fully pay off New York’s $6.4 billion unemployment insurance debt. This would provide immediate relief to both businesses and workers through lower costs and increased benefits—a proposal with backing from both business and labor communities.
During the COVID-19 pandemic, when businesses were shut down and workers were out of jobs, unemployment insurance was a lifeline for many New Yorkers. Ensuring this benefit was the right thing to do, and now eliminating the debt will provide the relief New Yorkers also deserve. This debt owed to Washington has become a huge burden for businesses in our state.
As long as the debt remains, business owners will continue to pay a penalty for each employee, with rates potentially tripling in the near future. For a small business, this can be the difference between staying afloat or closing. For some of our region’s largest employers, this can mean hundreds of thousands of dollars annually, money that could otherwise be used to better serve customers and the community. Sadly, these looming charges and fees encourage businesses to look elsewhere, potentially moving out of New York. We can’t afford to lose any more businesses or workers.
It’s important to note that workers are also impacted by the debt. When unemployment insurance debt is owed to the federal government, benefits cannot be increased. Given rising inflation and prices, those collecting benefits have been negatively impacted, with the value of their payments greatly diminished in recent years.
I want to thank and praise Assemblymember Harry Bronson, Chair of the Assembly Committee on Labor and a key member of the Rochester delegation. Assemblymember Bronson, a former business owner himself, has strongly advocated to have this debt paid off, and he has the support of Speaker Carl Heastie. Both legislators understand that governing is about building consensus, and this proposal offers a chance for small businesses, large employers, labor unions, and workers to agree on an important issue.
Throughout my career, I’ve been a union member and an executive negotiating union contracts. Having sat on both sides of the table, I appreciate the importance of the interests of both sides. In any negotiation, a good deal involves compromise and an outcome both can accept. That’s what we have here. The current unemployment insurance debt issue has both business and labor very unhappy.
While these opportunities don’t happen often enough, I believe this is a profound moment in our region and state, with the potential for a lasting positive impact if this proposal makes it into the enacted FY26 budget. For years, the Greater Rochester Chamber of Commerce has passionately advocated alongside partners around the state to have this debt paid down and to remove the burden from our businesses. I applaud Assemblymember Bronson and Assembly Speaker Carl Heastie for their leadership.
This is a terrific opportunity for a mutual win. I encourage elected officials on both sides of the aisle to seek these opportunities far more often. We need to move away from an “us-versus-them” mentality that ignores our shared dependence. It’s time for business and labor to seek alliances and refuse to let any anti-business sentiment divide us. This should become an example of how collaborative outcomes can benefit elected leaders and their constituents.
The Greater Rochester Chamber of Commerce fully supports this potential breakthrough for business and labor. Let’s get this done.
Robert J. Duffy is president and CEO of Greater Rochester Chamber of Commerce. Contact him at [email protected].
