Santa Maria Valley Chamber Opposes SB 1434 (DURAZO)

The California Chamber of Commerce OPPOSE your SB 1434 (Durazo)

The California Chamber of Commerce and the undersigned respectfully OPPOSE your SB 1434 (Durazo), as introduced February 16, 2024, as a JOB KILLER because it would be a massive increase in
unemployment insurance taxes for every single employer in California.

In brief, SB 1434 is a vast re-working of California’s unemployment insurance (UI) system, including the
following elements:
- Historic increase of traditional UI taxes for employers via an increase to the taxable wage base.
- A 55% benefit increase for claims beginning in 2025, with ongoing adjustments thereafter.
- Creation of a new tax on all wages to fund a new benefits program for federally-ineligible “excluded”
workers.

Taken together, we conservatively estimate SB 1434’s changes to result in more than a 200% increase in
UI-related taxes for all California employers. A complete estimate is impossible because presently SB 1434 does not include the specified amount of its anticipated tax increases and does not identify which
employees would qualify for its new program.

Read full letter of opposition Here.