Louisiana Suspends Unemployment Fund's Tax Hike

Louisiana is again suspending the state's solvency tax, levied when the state's unemployment fund drops to a certain level, under a resolution signed Wednesday in the Senate following the governor's suspension of the tax last month.

The House passed S.C.R. 9 unanimously on Tuesday to suspend the state law that places a solvency tax on employers when the state's unemployment trust fund falls below $100 million. The Senate passed the resolution unanimously on Oct. 13.

The suspension takes immediate effect and will continue until 60 days after final adjournment of the 2021 regular session of the Legislature.

Gov. John Bel Edwards issued an executive order in September that temporarily suspended the tax due to the pandemic.

--Editing by Robert Rudinger.

For a reprint of this article, please contact reprints@law360.com.