ArkansasSB5602025 Regular SessionSenate

TO DECREASE THE BASE CONTRIBUTION RATE; TO INCREASE THE ADMINISTRATIVE ASSESSMENT RATE; TO INCREASE FUNDING FOR THE SKILLED WORKFORCE IN THIS STATE; AND TO AMEND THE DIVISION OF WORKFORCE SERVICES TRAINING TRUST FUND.

Sponsored By: Jane English (Republican), Dwight Tosh (Republican)

Enacted

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Bill Overview

Analyzed Economic Effects

3 provisions identified: 2 benefits, 1 costs, 0 mixed.

More funding options for worker training

Each fiscal year, up to $6 million in assessment proceeds goes to Arkansas’s unemployment-insurance administration fund. The rest goes to the Training Trust Fund instead of the Unemployment Compensation Fund, removing the former $2.5 million cap. The training fund can pay for staff, operating costs, construction, grants, and worker training. The Division of Workforce Services director sets rules for these uses. The law does not set individual grant amounts, eligibility, or automatic household payments.

Lower unemployment tax rates for employers

Arkansas sets the general employer unemployment tax rate at 1.9% for 2024 and 2025. Beginning January 1, 2026, it falls to 1.8%, and listed reserve-based rates fall by 0.1 percentage point. The minimum is 1.8% until employers have three consecutive years when an eligible employee could have received benefits. Eligible out-of-state employers can choose the lower starting or schedule rate, but cannot pay below 1%. They must meet operating-history and same-business requirements, provide authenticated account history, and choose in writing within 30 days of Arkansas liability notice. Without a timely choice, their starting rate is 1.8% beginning in 2026. Annual rate calculations use the employer’s record through June 30 of the prior year. Employers with no covered employment keep their last rate until they have one full year of benefit-risk experience. Employers switching from reimbursing benefit costs to paying contributions remain subject to new-employer and experience-rating rules.

Higher unemployment administration charges for employers

Beginning January 1, 2026, Arkansas employers pay a 0.2% unemployment administrative assessment on covered wages, up from 0.1%. This separate charge raises employer costs. The increase does not provide households with a direct payment.

Sponsors & Cosponsors

Sponsors

  • Jane English

    Republican • Senate

  • Dwight Tosh

    Republican • House

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

All Roll Calls

Yes: 127 • No: 1

House vote • 4/14/2025

House Vote - Monday, April 14, 2025 7:39:47 PM

Yes: 94 • No: 1 • Other: 1

Senate vote • 4/3/2025

Senate Vote - Thursday, April 3, 2025 4:03:34 PM

Yes: 33 • No: 0

Actions Timeline

  1. Notification that SB560 is now Act 740

    4/18/2025Senate
  2. DELIVERED TO GOVERNOR.

    4/15/2025Senate
  3. Reported correctly enrolled and ordered delivered to the Governor.

    4/15/2025Senate
  4. ORDERED ENROLLED

    4/14/2025Senate
  5. Returned from the House as passed.

    4/14/2025Senate
  6. Returned to the Senate as passed.

    4/14/2025House
  7. Read the third time and passed and ordered transmitted to the Senate.

    4/14/2025House
  8. Returned by the Committee Do Pass

    4/10/2025House
  9. Read the first time, rules suspended, read the second time and referred to the Committee on PUBLIC HEALTH, WELFARE AND LABOR COMMITTEE- HOUSE

    4/3/2025House
  10. RECEIVED FROM THE SENATE

    4/3/2025House
  11. Ordered immediately transmitted to the House.

    4/3/2025Senate
  12. Read the third time and passed.

    4/3/2025Senate
  13. Returned by the Committee, with the recommendation that it Do Pass

    4/2/2025Senate
  14. Re-referred to PUBLIC HEALTH, WELFARE AND LABOR COMMITTEE - SENATE

    4/1/2025Senate
  15. REPORTED CORRECTLY ENGROSSED

    4/1/2025Senate
  16. Amendment # 1 read the first time, rules suspended, read the second time and adopted, ordered engrossed.

    4/1/2025Senate
  17. Withdrawn from Committee and placed on 2nd reading for purpose of amendment # 1

    4/1/2025Senate
  18. Read first time, rules suspended, read second time, referred to PUBLIC HEALTH, WELFARE AND LABOR COMMITTEE - SENATE

    3/31/2025Senate
  19. Filed

    3/24/2025Senate

Bill Text

  • SB560 - Introduced

    3/24/2025

  • Act Version

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