Businesses that layoff more workers than other employers would face higher unemployment tax rates under legislation that has passed through the Senate Labor Committee.

"The idea is to put more balance between the contributions that businesses make to the Unemployment Insurance Trust Fund," said State Senator and sponsor of the bill Fred Madden. "Currently, more than 100,000 businesses contribute to the fund and a small portion of them, about five to nine percent, take much more out of the fund than they put in."

"Some companies use the UI fund as part of their business plan and some companies, because of the nature of the work they do, have employees work a certain amount of time and then they get laid off and collect from the fund. This forces other businesses that don't use the fund as often to make higher contributions to offset those additional withdrawals," said Madden.

"Under my bill, the more you use the fund, the more you contribute per employee to help offset those additional withdrawals that your employees are making," he said.

The measure now heads to the full Senate.