KentuckySB 1362026 Regular SessionSenateWALLET

AN ACT relating to unemployment insurance and declaring an emergency.

Sponsored By: Shelley Funke Frommeyer (Republican)

Signed by Governor

InsuranceLabor And IndustryState AgenciesUnemployment CompensationWorkforce

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Bill Overview

Analyzed Economic Effects

6 provisions identified: 2 benefits, 2 costs, 2 mixed.

Keep benefits while awaiting recall

If you have a verified return-to-work or recall within 16 weeks of filing, you are not denied benefits. You can also keep benefits for a longer recall, up to one year, if the secretary confirms in writing that your return prospect is bona fide. Your employer must send a letter with reasons, your name and expected return date, and allow the state to charge its unemployment reserve account. The employer must report changes, and the secretary can refuse or rescind confirmation if it conflicts with federal rules.

UI protected during Trade Act training

If you are in training approved under the Trade Act, you are not denied unemployment for weeks in that training. You also are not denied if you leave work to enter that training when the job was not suitable. For these training rules, suitable work must pay at least 80% of your Trade Act average weekly wage.

Higher wage history to qualify

To qualify, your highest base-period quarter must be at least $1,500. Your total base-period wages must be at least 1.5 times that high quarter. In the last six months of the base period, you must have wages of at least eight times your weekly benefit rate, and at least $1,500 must be outside the high quarter. Starting Jan 1, 2020 and every Jan 1 in even-numbered years, the state adjusts these minimums using the average CPI-U change over the prior two years. These rules raise the wage history needed to get benefits.

Stricter weekly job search for benefits

To get unemployment for a week, you must do at least five verifiable job-search activities. At least three must be job applications or interviews. You must also register for work each week you claim. If the state profiles you as likely to run out of benefits, you must take referred reemployment services unless you already finished them or have a justifiable reason. Valid activities include applying or interviewing, job shadowing, job fairs, workshops, and Kentucky Career Center programs. The secretary sets how you verify and submit proof, and the cabinet runs random weekly audits and publishes a yearly report on compliance.

Changes take effect immediately

The Act declares an emergency and takes effect as soon as it becomes law. All changes apply immediately.

Quicker fraud referrals; conviction required to fire

The cabinet must refer suspected unemployment fraud to local prosecutors and the U.S. Department of Labor within 30 days of deciding fraud likely occurred. The law updates the named agencies for referrals. An employer can end employment under the fraud termination rule only if there is a legal disposition finding the worker guilty under KRS 500.070.

Sponsors & Cosponsors

Sponsor

Shelley Funke Frommeyer
Republican • Senate

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

All Roll Calls

Yes: 171 • No: 0

Senate vote • 4/1/2026

passed

Yes: 37 • No: 0

House vote • 3/31/2026

3rd reading, passed

Yes: 96 • No: 0

Senate vote • 2/10/2026