Controversial unemployment insurance bill gets its first hearing in the Legislature
State Rep. Christine Sinicki (D-Milwaukee) questions a witness at Thursday's hearing of the Assembly labor committee about the unemployment insurance bill produced by the Unemployment Insurance Advisory Council. (Photo by Erik Gunn/Wisconsin Examiner)
A business lobbyist Thursday sought to salvage a new unemployment insurance bill that has sparked opposition from some Democrats and advocates for people with disabilities.
The bill came from the joint labor-management Unemployment Insurance Advisory Council. The council is historically a source of consensus legislation to update Wisconsin’s laws on jobless pay, but its 2025 proposal includes provisions Democrats have strongly opposed.
The senior Democrat on the Assembly’s labor committee has disavowed the bill because it includes a financial penalty for people who receive federal disability pay if they apply for unemployment insurance when they’re laid off from a job.
The council bill also contains several other changes that Democratic lawmakers have unanimously opposed and Gov. Tony Evers has vetoed in the past.

At a public hearing Thursday on the legislation, AB 652, Scott Manley of Wisconsin Manufacturers & Commerce emphasized that the measure had the unanimous support of both the management and labor members of the advisory council.
Manley chairs the council’s management caucus. Representatives from the council’s labor caucus did not take part in the hearing.
“There’s a reason we have a council,” Manley told the Assembly Committee on Workforce Development, Labor and Integrated Employment. “It’s a process we believe in. We think it’s a process that works. And we would ask everybody in the community to respect that process.”
WMC and other business groups have repeatedly backed Republican legislators’ bills to change the state’s unemployment laws when they bypassed the joint advisory council. Evers has regularly vetoed such bills.
Manley said that it would be unprecedented for an advisory council bill to split the Legislature on party lines, however.
“My fear is that if the Legislature decides to turn this into a partisan issue, despite the fact that it was unanimously supported by labor and management, that Gov. Evers would consider vetoing the bill,” Manley said.
If that happens, he said, the bill’s $25 bump in the state’s maximum weekly jobless pay — the first increase in more than a decade — would likely be put off until 2027.
Victor Forberger, a lawyer who specializes in unemployment law, said even that increase, bringing the maximum benefit to $395 a week, was inadequate compared with surrounding states.
Minnesota tops out at $914 a week, Forberger testified. Iowa’s maximum is $602 and Michigan’s is $446, with an increase to $530 in 2026.
“We’re not keeping pace with the states around us,” Forberger told the committee. “We’re not even coming close to that
The disability-jobless pay conflict
The advisory council bill’s highest-profile point of contention applies to people who receive Social Security Disability Income.
Since 2013, Wisconsin law has automatically disqualified SSDI recipients from collecting jobless pay, even if they get laid off from a job and otherwise meet the requirements for unemployment compensation.
A federal judge ruled in 2024 that the SSDI jobless pay ban violated federal law. After an additional court order this summer, the Wisconsin Department of Workforce Development is now reviewing the cases of people denied unemployment compensation in the last 10 years due to the SSDI ban, and is issuing payments to those who qualify.
The joint advisory council unemployment bill repeals the ban on unemployment insurance for SSDI recipients. But it would also cut their jobless pay by 50% of their SSDI pay.
That provision led Rep. Christine Sinicki (D-Milwaukee), the ranking Democrat on the labor committee, to keep her name off the list of sponsors for the advisory council bill.
“I simply cannot support taking benefits from those who are disabled,” Sinicki said when she, along with the committee’s other two Democrats, voted against the bill’s formal introduction Thursday. “They receive very little money to begin with. And now to reduce their benefits to me is unconscionable.”
Manley defended the 2013 law that excluded SSDI recipients from the unemployment insurance program.
“SSDI is intended to compensate somebody for their loss of earning capacity based on a disability,” he said. “And unemployment is supposed to compensate somebody through the loss of their earnings because they were laid off or their job was eliminated or some other reason that’s no fault of their own. So, that’s why the policy decision was made in the first place that we wouldn’t allow people to have both benefits.”
While the court ruled against a blanket exclusion from unemployment compensation for people getting SSDI, Manley argued that offsetting their jobless pay by a portion of their disability income is comparable to existing provisions that offset unemployment benefits based on other wage income.

But SSDI is not like a wage, said Forberger, whose lawsuit overturned Wisconsin’s SSDI jobless pay ban.
“SSDI is essentially getting your Social Security benefits early,” Forberger testified. While Social Security payments are based on lifetime earnings at retirement age, he said, unemployment is based on a recent job loss, and unemployment benefits are based on earnings in the last year and a half.
The average SSDI benefit in Wisconsin as of December 2023 was about $1,400 per month, he said. SSDI recipients take part-time jobs because their disability income “is not enough to support themselves,” Forberger said. “They need additional money to make ends meet.”
The federal Social Security Administration, which administers the disability program, encourages recipients to work so they might make a transition back to the workforce and no longer need benefits. “Essentially, what Wisconsin is saying to disabled folks here is . . . ‘We don’t want you working anymore,’” Forberger said.
Other provisions
Several other items in the advisory council bill previously were part of Republican bills that Evers vetoed in the past when they reached his desk.
One would require DWD to establish a website where employers could report unemployment compensation recipients who “ghosted” job interviews or didn’t show up for the first day on the job after an offer.
Another would require audits of 50% of all work searches by people collecting jobless pay. In 41% of work search audits that DWD conducted, “claimants failed to fulfill weekly work search requirements,” said Brian Dake of Wisconsin Independent Businesses. “We believe this data justifies the need for more audits.”
A third provision stipulates specific checks that DWD should make to ensure that a person who makes an unemployment claim isn’t stealing another person’s identity or engaged in some other fraudulent activity.
The bill also would mandate electronic filing of payroll information for business owners with fewer than 25 employees.
Forberger, in his testimony, rejected all those provisions as ineffectual or unnecessary.
“Ghosting interviews is already illegal in this state,” he said, with stiffer penalties than outlined in the bill. Employers, he added, are unlikely to go to the trouble of filing a report and take the time for the hearings that would follow.
Forberger observed that the department already consults a wide range of databases in checking out claims. And he said small employers have sought his help after making mistakes and getting in trouble with the department in filing required payroll documentation.
“To mandate online-only filing is just going to make it that much harder for these employers,” Forberger said.
(According to DWD communications director Haley McCoy, in 2024 about 97% of taxable employers with fewer than 25 employees submitted their wage reports electronically. “Fewer and fewer employers file on paper every quarter with current figures showing less than 3% filing by paper,” McCoy told the Wisconsin Examiner.)
Forberger said the bill’s work search audit requirement was redundant, because DWD already conducts work search audits of every person who is approved for benefits. He said he’s heard from many people who don’t understand what constitutes a work search and how to report it.
“When they’re getting audited, they’re getting disqualified,” Forberger said. “If you really want to improve the system, DWD needs to start doing some training and helping people how to navigate the system.”
This report has been updated to clarify that work search audits are conducted for people who are approved for unemployment benefits.
GET THE MORNING HEADLINES.