TOPEKA, Kansas – Kansas lawmakers are considering a comprehensive overhaul of the state’s unemployment insurance system, aiming to modernize the program and ensure its long-term stability. The proposed legislation, , received support from a key business advocacy group, the National Federation of Independent Business (NFIB), during testimony before the Joint Committee on Commerce.
HB 2764, officially titled the Kansas Unemployment Insurance Modernization and Conformity Act of 2026, seeks to update the state’s unemployment insurance laws without expanding benefits. Phil Hayes, a member of the NFIB Kansas Leadership Council and representing The Arnold Group, testified in favor of the bill, emphasizing the need for a “compliant, well-administered and solvent” system.
“From a practical standpoint, the goal is workforce stability,” Hayes stated during his testimony. He argued that the bill would support reemployment efforts, responsibly manage the state’s unemployment trust fund, and provide employers with the tools necessary to navigate temporary workforce disruptions while remaining compliant with federal regulations.
The move comes as states across the country grapple with the ongoing evolution of the labor market and the need to balance support for unemployed workers with the concerns of businesses. Unemployment insurance systems have faced increased scrutiny in recent years, particularly in the wake of the economic volatility caused by the COVID-19 pandemic. Many states are now focused on modernizing their systems to improve efficiency, reduce fraud, and ensure long-term financial sustainability.
Kansas’s existing unemployment insurance system, like those in many states, has faced challenges related to outdated technology and administrative complexities. The modernization effort aims to address these issues by streamlining processes, improving data management, and enhancing the overall user experience for both employers and claimants. The NFIB’s support suggests that the proposed legislation strikes a balance between these competing priorities.
The emphasis on maintaining a solvent trust fund is particularly important for employers, who are ultimately responsible for funding the unemployment insurance system through payroll taxes. A well-managed trust fund helps to mitigate the risk of future tax increases and ensures that benefits can be paid to eligible workers when needed. The bill’s focus on federal compliance is also crucial, as it helps to avoid potential penalties and ensures that Kansas’s system aligns with national standards.
The NFIB, a prominent advocate for small and independent businesses, has been actively involved in shaping unemployment insurance policy in Kansas and other states. The organization’s support for HB 2764 underscores the importance of addressing the concerns of employers in any modernization effort. The group hosted a webinar in to educate members about the new system, featuring representatives from the Kansas Department of Labor.
Beyond the specifics of the unemployment insurance system, the Kansas legislature is also considering other measures related to workforce development and economic policy. On , the House adjourned until , and the Senate adjourned until the same date. Several bills are currently under consideration, including HB 2101, which would prohibit municipalities from adopting guaranteed income programs, and HB 2003, which would establish a new tax on electricity used to charge electric vehicles.
The broader legislative agenda reflects a focus on economic stability and responsible fiscal management. The debate over unemployment insurance reform is just one piece of a larger puzzle, as lawmakers seek to create a business-friendly environment that supports job creation and economic growth. The passage of HB 2764 would represent a significant step towards modernizing Kansas’s unemployment insurance system and ensuring its long-term viability.
The Kansas Department of Labor oversees the Unemployment Insurance Division, which provides temporary financial assistance to eligible workers who lose their jobs through no fault of their own. The program is designed to replace a portion of lost wages and help individuals transition back into the workforce. Eligibility requirements and benefit levels vary depending on individual circumstances and state law.
While the details of the bill are still being debated, the NFIB’s endorsement signals a positive outlook for its passage. The organization’s leadership council member, Phil Hayes, has been a vocal advocate for unemployment insurance reform, and his testimony is likely to carry significant weight with lawmakers. The focus on workforce stability and responsible trust fund management aligns with the priorities of many businesses in the state.
