Legislation was introduced in the U.S. Senate on February 11 to extend the COBRA subsidy for workers who are involuntarily terminated up to May 31; and to extend current federal extended unemployment benefits.

The proposed “Hiring Incentives to Restore Employment Act” also contains an exemption from FICA payments for workers hired in 2010 who were unemployed for at least 60 days, and an income tax credit of $1000 for every newly hired employee in 2010 retained for at least 52 weeks. The bill would extend the COBRA subsidy for involuntary terminations occurring up to May 31, 2010, and extend the current federal extended unemployment payments (beyond 26 weeks) which are due to sunset on Feb. 28, 2010.