Perdue says parts of employment law set aside

October 12, 2011 12:48:58 PM PDT
Governor Perdue's showdown with the Republican controlled General Assembly took a new tack Wednesday when she announced she's directed the chairwoman of the Employment Security Commission to set aside parts of a new law the legislature passed over her veto.

In a news release, the governor's office said Employment Security Commission Chairwoman Lynn Holmes officially notified leaders of the General Assembly on Wednesday that she was suspending certain provisions of Senate Bill 532 because they do not comply with federal law.

Senate Bill 532 moves the Employment Security Commission under the Department of Commerce and makes changes to state laws on unemployment benefits.

When Perdue vetoed the bill, she said North Carolina employers would see their Federal Unemployment Tax (FUTA) tax rate rise from 0.8 percent to 6.2 percent.

"The law that the General Assembly passed over my veto was going to cause taxes to skyrocket for North Carolina employers," Gov. Perdue said in a statement Wednesday. "I refuse to sit by and allow an unnecessary tax increase on North Carolina businesses."

Perdue's office said the U.S. Department of Labor informed her and Holmes in late September that S.B. 532 included provisions that would threaten the eligibility of North Carolina employers to qualify for credit under FUTA.

After Perdue vetoed the bill this summer, Republican leaders in the General Assembly said the bill is intended to prevent unemployment benefits from being paid to employees who steal money from their employers.

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