Legislation aims to attract new business to the state
Legislation which is designed to help attract new businesses to the state met approval in the Senate Commerce Committee this week. Senate Bill 1763 allows new companies coming to Tennessee to base their unemployment insurance premiums on the past history of the state from which they are relocating.
Under present law, workers who lose their jobs through no fault of their own are provided weekly unemployment insurance payments. These payments are funded by employers who pay taxes on the wages paid to employees. The tax rate that employers must pay is based on whether they are a new employer or an experience-rated employer. New companies locating to the state must currently pay a higher rate because they have no prior experience in Tennessee.
The legislation calls on companies participating in this new program to provide the department with all necessary employment data dating back three years. Proponents of the legislation believe this change in the unemployment insurance law will help recruit an additional five manufacturers to the state each year.