Legislation to provide an incentive for small businesses that hire those on the unemployment list won bi-partisan support in its first public debate. Authored by Senator Sharon Runner, this measure would provide $6,000 to qualifying small businesses.
“With the high cost of doing business in California, small businesses are hesitant to take on the additional financial risk of hiring new employees,” said Runner. “It is imperative that employers be given incentives to hire.”
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The state’s unemployment rate continues to stagnate at the unacceptable rate of 11.7 percent. This means that two million Californians are still out of work.
Fulfilling her pledge to help create jobs, Runner authored this legislation after talking to employers.
Senate Bill 640 provides a hiring tax credit for businesses of 50 people or less who hire new workers straight off California’s unemployment rolls. Qualifying businesses could receive up to $6,000 per employee.
Dubbed as the California Employment Recovery Act of 2011, Senate Bill 640 passed the Senate Governance and Finance Committee with six aye and two no votes.
SB 640 now moves to the Senate Appropriations Committee for its consideration.
“Not having a job is not just about not paying the bills, it is about pride and self-worth,” Runner said in her presentation to fellow lawmakers.
“Encouraging employers to hire those who are unemployed will help lift their spirits as they rebuild their lives and contribute to the community."