Establishes the "Unemployment Administration Adjustment Fund"

HB 2877 creates the "Unemployment Administration Adjustment Fund" to cover state costs for administering unemployment programs. It requires most employers (excluding those with zero contribution rates) to pay an annual fee equal to 0.05% of their taxable payroll (ending June 30th) into this fund. The fund cannot replace federal unemployment grants or reduce federal funding, and employers are exempt from paying if the fund balance reaches $40 million or the unemployment trust fund balance falls below $450 million. All collected fees must be deposited into the fund, which can only be used for unemployment administration costs, with interest earned also credited to the fund.