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From the Office of North Carolina Gov. Bev Perdue, shared June 30:
RALEIGH—Gov. Perdue vetoed today Senate Bill 532 to defend the workers and businesses of North Carolina.
“This bill will raise unemployment taxes on various businesses of all shapes and sizes across the state. It will also greatly increase the amount of time a company has to respond to an unemployment claim, which violates federal policy and could delay benefits for people who are entitled to receive them,” Gov. Perdue said. “Finally, this bill will likely cost North Carolina millions of federal dollars that unemployed people and their families need so desperately.”
Gov. Perdue received information from the U.S. Department of Labor, which indicated passage of this bill would have significant consequences for workers and business owners. In communications with the N.C. Employment Security Commission, the department stated that if Senate Bill 532 were to become law, all employers in the state required to pay the Federal Unemployment Tax (FUTA) would see their FUTA tax rate rise from 0.8 percent to 6.2 percent.
Following the veto, Gov. Perdue issued Executive Order # 95 in order to correct many issues and to maintain the integrity of the Employment Security Commission’s process for administering unemployment benefits.