Controversial jobless pay changes pass divided Assembly committee

Job centers help people who are looking for work, including people who must conduct work searches each week to receive unemployment benefits. A bill to change the unemployment insurance rules has divided lawmakers despite being offered by the joint labor-management Unemployment Insurance Advisory Council. (Wisconsin Examiner photo)
This report has been updated
A bill that would boost Wisconsin’s top weekly jobless pay while penalizing people who receive federal disability pay is heading to the Assembly floor — so far with only GOP support.
On Wednesday, Gov. Tony Evers’ communications director said the governor will veto the measure if it reaches his desk.
The legislation, AB 652, would also impose several previously vetoed changes to the state’s unemployment insurance (UI) law. It passed the Assembly’s labor committee Tuesday on a 6-3 vote, with all committee Democrats voting no.
The bill came from the Unemployment Insurance Advisory Council. With equal participation of labor and management, the council negotiates changes to the state’s unemployment insurance law every two years.
The council historically has been credited with giving neither side a lopsided advantage in revisions to the unemployment insurance system. The bill that the body offered for the current legislative session, however, has become problematic for some of the council’s staunchest advocates.

“I simply cannot vote for this particular bill as written,” said Rep. Christine Sinicki (D-Milwaukee) at Tuesday’s vote by the Assembly Committee on Workforce Development, Labor and Integrated Employment.
The measure would increase the maximum jobless pay for the first time in 12 years — to $395 a week from $370.
It would also formally repeal a 12-year-old ban on unemployment benefits for people who receive federal Social Security Disability Income. At the same time, however, it would cut an SSDI recipient’s jobless payments by the equivalent of half their weekly disability income.
A federal judge ruled in July 2024 that Wisconsin’s ban violated federal laws protecting people with disabilities.
In 2025 the judge ordered the Wisconsin Department of Workforce Development to stop denying jobless pay for SSDI recipients. The department was also ordered to review the cases going back to 2015 of people denied unemployment insurance due to the ban and make payments to those who were otherwise eligible.
Sinicki has long championed the role of the UI advisory council in revising the state’s UI laws, criticizing changes Republicans have proposed that didn’t go through the joint labor-management body.
Despite that, she’s been an outspoken critic of the UI advisory council’s current bill since it was introduced in November, and reiterated her opposition Tuesday because of the SSDI penalty.
Sinicki described an autistic constituent who works “a few hours a day” at a library. “She counts on that money. If she loses that job, she’s out that money,” Sinicki said. “We’re talking about a very small amount of money. It’s not saving the state millions and millions of dollars” to claw it back.
She predicted the bill would run afoul of the court order blocking the SSDI ban.
Sinicki also criticized “the paltry $25 increase” in the maximum weekly benefit.
“When you look around at the states around us, most of them are paying out twice as much as we do here,” she said. “And I just think it’s a slap in the face.”

State Rep. Paul Melotik (R-Grafton), the committee chair, defended the legislation.
“This is increasing what people are getting when they claim [unemployment],” Melotik said. “And it also is legal based on what the agreed-upon deal has been.”
In addition to its SSDI penalty, AB 652 would write into the state’s UI law changes that were in previous bills Evers has vetoed — two of them in the current legislative session.
Those provisions would penalize unemployment insurance recipients accused of “ghosting” job interviews or failing to show up for an offered job; increase the scrutiny of recipients’ work searches; impose new requirements for applicants to prove their identities; and require DWD to follow specific steps, including checking databases that track death records, employment records, citizenship and immigration records, to confirm the identity of a UI applicant.
In vetoing previous UI-related bills, Evers has cited in part the failure to put them through the advisory council process. Asked via email Tuesday whether Evers would veto the bill if it passes both houses, Evers’ communications director, Britt Cudaback, replied Wednesday morning: “Yes.”
DWD “has a number of concerns with the UIAC agreed upon bill package,” according to written testimony the department filed with the committee at a November public hearing on the bill.
Rachel Harvey, DWD’s legislative director, wrote that the bill’s $25 increase in the top weekly benefit from the maximum set in 2013 amounts to less than 7%. The increase “remains far below the maximum weekly benefit rate in neighboring states,” she wrote.
Harvey wrote that the testimony was provided “for information only,” but showed no enthusiasm for the legislation.
“The bill package includes reductions of Ul benefits for recipients of SSDI, multiple provisions previously vetoed by Gov. Evers, costly work search audit requirements, redundant measures already in effect at DWD to ensure program integrity, and new barriers for individuals receiving benefits,” she wrote
It makes those changes, she added, “all while failing to provide adequate resources for the department to implement these provisions in their entirety.”
Worker’s compensation changes get unanimous support
By contrast Tuesday, the Assembly committee unanimously endorsed legislation that would update Wisconsin’s worker’s compensation laws. That bill was also the product of a separate joint labor-management body, the The Worker’s Compensation Advisory Council.
AB 651 increases the maximum weekly compensation for a permanent, partial disability, currently $446, to $454 for workplace injuries before Jan. 1, 2027 and to $462 for injuries on or after that date.
It also increases supplemental benefits for permanent total disability. Those benefits had applied to people injured at work before Jan. 1, 2003, but the new bill extends them to cover workplace injuries before Jan. 1, 2020.
The legislation gives volunteer firefighters, emergency medical responders and emergency medical practitioners coverage for post-traumatic stress disorders that is in line with the coverage already available to law enforcement officers and non-volunteer firefighters.
The bill also makes numerous other procedural and administrative changes.
This report has been updated at 1/7/2026, 9:38 a.m.
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