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, 3 costs, 1 mixed.

Keep benefits with one-year recall date

You do not lose benefits if you have a definite return-to-work or recall within one year. The secretary must confirm the prospect in writing as bona fide. Your employer must send a letter with reasons, names, expected return dates, and agree that its reserve account can be charged. The employer must report changes. The secretary may refuse or rescind if it conflicts with federal law.

More job-search steps to get benefits

You must register for work as the rules require. Each week you claim benefits, do at least five verifiable job-search activities. At least three must be formal job applications or interviews. Allowed activities include applications (in person or online), interviews, job shadowing, job fairs, workshops, and Kentucky Career Center programs. If the agency profiles you as likely to exhaust benefits, you must take reemployment services unless you complete them or have good cause. You must keep proof and submit it as the regulations say. The cabinet runs random weekly audits and reports yearly on compliance.

Tougher wage tests to qualify for unemployment

To qualify, your highest base-period quarter wages must be at least $1,500. Your total base-period wages must be at least 1.5 times that high quarter. Your wages in the last six months of the base period must be at least eight times your weekly benefit rate, and you must earn at least $1,500 outside the high quarter. Starting January 1, 2020 and every even-numbered January 1, the minimum wage tests adjust with the CPI-U.

Keep benefits during Trade Act training

If you are in training approved under the federal Trade Act, you do not lose unemployment benefits for taking that training. You also are not denied for availability, search, or refusal-of-work rules if the job is not suitable employment. Suitable employment means equal or higher skill and pay of at least 80% of your average weekly wage.

One-week wait before first payment

For new claims filed on or after January 1, 2012, you serve a one-week waiting period. Only one waiting week applies per benefit year. That week is paid later when your remaining claim balance is equal to or less than the compensable amount for the waiting week.

Faster fraud referrals, guilt needed to fire

When the cabinet suspects unemployment fraud, it must refer the case within 30 days to the county or Commonwealth’s attorney and the U.S. Department of Labor, and share names, contacts, and related records. It may also notify the U.S. Department of Justice when applicable. Under this section, an employee or contractor cannot be terminated unless a court enters a guilty finding under KRS 500.070.

Sponsors & Cosponsors

Sponsor

Shelley Funke Frommeyer
Republican • Senate

Cosponsors

Josh Branscum
Republican • House

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