Nevada unemployment premiums unlikely to change

Mathis Winkler

Tuesday, Oct. 23, 2001 | 9:32 a.m.

Despite thousands of layoffs from resorts since Sept. 11, state officials are unlikely to increase the average unemployment insurance premium paid by employers next year.

Employers pay varied premium rates, depending on their history of layoffs, but the average rate is expected to remain 1.29 percent of an employee's wages after a decision by the state's employment security council last week.

The council, at its annual meeting last week, recommended keeping the current rates in place, although it would decrease the state's unemployment insurance trust fund by about $25 million.

The vote will shrink the trust fund from $520.4 million to $495.8 million over the next year, Employment Security Division Administrator Birgit Baker said. The fund will still have $106.7 million more than required by the state.

Baker will set the 2002 rate after a public hearing Nov. 26.

Council members, who represent employers, employees and labor interests and are appointed by the governor, said they worried about the state's economic future since the Sept. 11 attacks and the possibility of a recession.

They agreed an increase in rates would put an additional burden on employers and could lead to further layoffs.

"The cost (of a rate) increase gets passed on by laying people off or putting on hiring freezes," said Carol Stewart, who represents employers on the nine-member board. "That cost will also force smaller businesses out of business. I'm in favor of leaving it alone."

While a majority of council members favored reviewing the rate in six months, state officials said the law allows rates to be set only once a year.

Business representatives said keeping the current rate could only help companies during the current economic downturn.

"The less burden we put on businesses is the best thing we can do," said Kami Dempsey, the director of government affairs for the Las Vegas Chamber of Commerce.