Bay State News

The National Federation of Independent Business (NFIB) has initiated an advertising campaign, calling on lawmakers and Governor Healey to address issues with Massachusetts's unemployment insurance (UI) system. The campaign, which will be broadcasted across radio and online platforms, highlights the financial strain that the current system places on small businesses. It includes a dedicated website, ProtectMassachusettsSmallBusiness.org, offering information about the issue, related news articles, and resources for contacting local legislators.

Massachusetts holds a reputation for imposing some of the highest state unemployment insurance taxes on small businesses in the United States, ranking 47th nationally despite previous efforts to improve its standing. The NFIB claims that even before the COVID pandemic, the state's approach to unemployment insurance was problematic, characterized by what they describe as overly generous benefits and loose eligibility criteria. This was further exacerbated by the pandemic-induced state shutdowns and restrictions.

Christopher Carlozzi, NFIB Massachusetts State Director, emphasized the need for reform, stating, “Now is the time to secure the long-term security of our UI system while providing desperately needed relief for Massachusetts employers. The state's COVID shutdowns and restrictions caused the layoffs and resultant debt, which were beyond the control of Massachusetts employers.” He noted that despite ample federal relief, Massachusetts did not address the multi-billion-dollar shortfall in the UI trust fund. Carlozzi also mentioned the significant $2.1 billion error discovered last year, indicating it will increase the financial burden on small businesses further.

The annual report from the Department of Unemployment Assistance cautioned about potential insolvency of the UI trust fund by 2028, urging immediate action from state lawmakers. Carlozzi reiterated the importance of addressing these structural flaws to protect small businesses and future beneficiaries from financial burdens.

The radio advertisement supporting the campaign mentions, “Massachusetts made a 2.1-billion-dollar mistake. That’s, right…2.1 BILLION dollars. Now Beacon Hill wants small businesses to pick up the tab through higher unemployment insurance taxes.” The ad urges citizens to visit the campaign website and advocate for reform.

For further details about NFIB's campaign, interested parties can visit ProtectMassachusettsSmallBusiness.org. NFIB, a nonprofit, nonpartisan organization advocating for small businesses across the United States since 1943, continues to support the interests of independent business owners in Massachusetts and nationwide.