An Act To Increase the Amount of Time an Employer May Employ an Employee without Being Charged for Unemployment Benefits
Maine Legislature, Session 125, LD 1832
Amends: 26 MRSA §1221

Legislative Document 
No. 1832 
H.P. 1352 
House of Representatives, February 23, 2012 
An Act To Increase the Amount of Time an Employer May Employ 
an Employee without Being Charged for Unemployment Benefits 
Reported by Representative PRESCOTT of Topsham for the Joint Standing Committee on 
Labor, Commerce, Research and Economic Development pursuant to Resolve 2011, chapter 
85, section 1. 
HEATHER J.R. PRIEST 
Clerk 
Be it enacted by the People of the State of Maine as follows: 
Sec. 1.  26 MRSA §1221, sub-§3, ¶C, as amended by PL 1965, c. 381, §19, is 
further amended to read: 
C.  For the purposes of paragraph A, the experience rating record of the most recent 
subject employer shall may not be charged with benefits paid to a claimant whose 
work record with such employer totaled 5 6 consecutive weeks or less of total or 
partial employment, but in such case the most recent subject employer with whom 
claimant's work record exceeded 5 6 consecutive weeks of total or partial 
employment shall must be charged, if such employer would have otherwise been 
chargeable had not subsequent employment intervened. 
This paragraph is repealed March 14, 2014. 
Sec. 2.  26 MRSA §1221, sub-§3, ¶C-1 is enacted to read: 
C-1.  Beginning March 14, 2014, for the purposes of paragraph A, the experience 
rating record of the most recent subject employer may not be charged with benefits 
paid to a claimant whose work record with such employer totaled 5 consecutive 
weeks or less of total or partial employment, but in such case the most recent subject 
employer with whom the claimant's work record exceeded 5 consecutive weeks of 
total or partial employment must be charged, if such employer would have otherwise 
been chargeable had not subsequent employment intervened. 
Sec. 3.  Report.  The Commissioner of Labor shall submit a report by December 
15, 2013 to the joint standing committee of the Legislature having jurisdiction over labor 
matters on the effect of the change made pursuant to this Act, specifically with regard to 
increasing the number of weeks to 6 for which an individual can work for an employer 
before the employer becomes potentially chargeable for unemployment benefits paid 
upon separation of that work.  In addition to reporting the total impact of the change to 
the Unemployment Insurance Trust Fund, the report must include the impact on the 
number of employers affected and on prior employers who are charged for any ensuing 
benefits as a result of this change, as well as the impact on all employers if the costs are 
spread out among all employers.  The commissioner shall include any employer 
comments received pertaining to this change. 
The joint standing committee is authorized to introduce a bill related to the 
commissioner's report to the Second Regular Session of the 126th Legislature. 
Sec. 4.  Effective date.  That section of this Act that enacts the Maine Revised 
Statutes, Title 26, section 1221, subsection 3, paragraph C-1 takes effect March 14, 2014.  
SUMMARY 
This bill is submitted by the Joint Standing Committee on Labor, Commerce, 
Research and Economic Development pursuant to Resolve 2011, chapter 85.  The bill 
changes from 5 weeks to 6 weeks the amount of time an employer may employ an 
employee without being charged for unemployment benefits; it also establishes a repeal 
date of March 14, 2014 for that change. 
The bill enacts, beginning March 14, 2014, a reversion back to 5 weeks of the amount 
of time an employer may employ an employee without being charged for unemployment 
benefits. 
The bill requires a report from the Commissioner of Labor to the joint standing 
committee of the Legislature having jurisdiction over labor matters, which is authorized 
to introduce a bill. 
Approved: 02/17/12
LD 1832
LR 2753(01)
Fiscal Detail and Notes
Although the actual impact to non-separating employers can not be determined, the Center for Workforce Research 
and Information within the Department of Labor indicates that, had this provision been in place in 2010, 250 more 
claims and $0.8 million more in benefits paid would have been charged to prior non-separating employers instead of 
being charged to the separating employer.
Extending the amount of time an employer may employ an employee without being charged for unemployment 
benefits from 5 weeks to 6 weeks may impact the unemployment contribution rate for some non-separating employers 
due to additional benefits being charged to their account.  This provision is repealed March 14, 2014 and will not have 
a fiscal impact on the state as a direct reimbursement employer.
Additional costs to the Department of Labor to  prepare the required report can be absorbed within existing budgeted 
resources.
An Act To Increase the Amount of Time an Employer May Employ an Employee without Being 
Charged for Unemployment Benefits
Fiscal Note for Original Bill
Committee: Labor, Commerce, Research and Economic Development
Fiscal Note Required: Yes
Preliminary Fiscal Impact Statement
Minor cost increase - General Fund
LR2753(01) - Fiscal Note - Page 1 of 1