Text: SSB00089 Text: SSB00091 Text: SSB00000 - SSB00099 Text: SSB Index Bills and Amendments: General Index Bill History: General Index
PAG LIN 1 1 Section 1. Section 96.3, subsection 7, unnumbered 1 2 paragraph 2, Code 1995, is amended to read as follows: 1 3 If the division determines that an overpayment has been 1 4 made, the charge for the overpayment against the employer's 1 5 account shall be removed and the account shall be credited 1 6 with an amount equal to the overpayment from the unemployment 1 7 compensation trust fund and this credit shall include both 1 8 contributory and reimbursable employers, notwithstanding 1 9 section 96.8, subsection 5. 1 10 Sec. 2. Section 96.5, subsection 1, paragraph a, Code 1 11 1995, is amended to read as follows: 1 12 a. The individual left employment in good faith for the 1 13 sole purpose of accepting other or better employment, which 1 14 the individual did accept,and that the individual remained1 15continuously in said new employment for not less than six1 16weeksand the individual performed services in the new 1 17 employment.Wages earned with the employer that the1 18individual has left shall, for the purpose of computing and1 19charging benefits, be deemed wages earned from the employer1 20with whom the individual accepted other employment and1 21benefits shall be charged to the employer with whom the1 22individual accepted other employment. The division shall1 23advise the chargeable employer of the name and address of the1 24former employer, the period covered, and the extent of1 25benefits which may be charged to the account of the chargeable1 26employer. In those cases where the new employment is in1 27another state, no employer's account shall be charged with1 28benefits so paid except that employers who are required by law1 29or by their election to reimburse the fund for benefits paid1 30shall be charged with benefits under this paragraph. In those1 31cases where the individual left employment in good faith for1 32the sole purpose of accepting better employment, which the1 33individual did accept and such employment is terminated by the1 34employer, or the individual is laid off after one week but1 35prior to the expiration of six weeks, the individual, provided2 1the individual is otherwise eligible under this chapter, shall2 2be eligible for benefits and such benefits shall not be2 3charged to any employer's account.Benefits relating to wage 2 4 credits earned with the employer that the individual has left 2 5 shall be charged to the unemployment compensation fund. This 2 6 paragraph applies to both contributory and reimbursable 2 7 employers, notwithstanding section 96.8, subsection 5. 2 8 Sec. 3. Section 96.6, subsection 2, Code 1995, is amended 2 9 to read as follows: 2 10 2. INITIAL DETERMINATION. A representative designated by 2 11 the commissioner shall promptly notify all interested parties 2 12 to the claim of its filing, and the parties have ten days from 2 13 the date of mailing the notice of the filing of the claim by 2 14 ordinary mail to the last known address to protest payment of 2 15 benefits to the claimant. The representative shall promptly 2 16 examine the claim and any protest, take the initiative to 2 17 ascertain relevant information concerning the claim, and, on 2 18 the basis of the facts found by the representative, shall 2 19 determine whether or not the claim is valid, the week with 2 20 respect to which benefits shall commence, the weekly benefit 2 21 amount payable and its maximum duration, and whether any 2 22 disqualification shall be imposed. The claimant has the 2 23 burden of proving that the claimant meets the basic 2 24 eligibility conditions of section 96.4. The employer has the 2 25 burden of proving that the claimant is disqualified for 2 26 benefits pursuant to section 96.5. However, the claimant has 2 27 the initial burden to produce evidence showing that the 2 28 claimant is not disqualified for benefits in cases involving 2 29 section 96.5, subsection 1, paragraphs "a" through "h", and 2 30 subsection 10. Unless the claimant or other interested party, 2 31 after notification or within ten calendar days after 2 32 notification was mailed to the claimant's last known address, 2 33 files an appeal from the decision, the decision is final and 2 34 benefits shall be paid or denied in accordance withitthe 2 35 decision. If an administrative law judge affirms a decision 3 1 of the representative, or the appeal board affirms a decision 3 2 of the administrative law judge allowing benefits, the 3 3 benefits shall be paid regardless of any appeal which is 3 4 thereafter taken, but if the decision is finally reversed, no 3 5 employer's account shall be charged with benefits so paid and 3 6 this relief from charges shall apply to both contributory and 3 7 reimbursable employers, notwithstanding section 96.8, 3 8 subsection 5. 3 9 Sec. 4. Section 96.7, subsection 2, paragraph a, 3 10 subparagraph (2), unnumbered paragraph 3, Code 1995, is 3 11 amended to read as follows: 3 12 An employer's account shall not be charged with benefits 3 13 paid to an individual who left the work of the employer 3 14 voluntarily without good cause attributable to the employer or 3 15 to an individual who was discharged for misconduct in 3 16 connection with the individual's employment, or to an 3 17 individual who failed without good cause, either to apply for 3 18 available, suitable work or to accept suitable work with that 3 19 employer, but shall be charged to theaccount of the next3 20succeeding employer with whom the individual requalified for3 21benefits as determined respectively under section 96.5,3 22subsection 1, paragraph "g" and section 96.5, subsection 2,3 23paragraph "a"unemployment compensation fund.However, the3 24succeeding employer's account shall first be charged with3 25benefits paid to the individual due to wage credits earned by3 26the individual while employed by the succeeding employer.3 27After exhausting those wage credits, the succeeding employer's3 28account shall not be charged with ten weeks of benefits paid3 29to the individual due to wage credits earned by the individual3 30from a previous employer, but rather the unemployment3 31compensation fund shall be charged. After exhausting the ten3 32weeks of noncharging, the succeeding employer's account shall3 33again be charged with the benefits paid.This paragraph 3 34 applies to both contributory and reimbursable employers, 3 35 notwithstanding section 96.8, subsection 5. 4 1 Sec. 5. Section 96.7, subsection 2, paragraph a, 4 2 subparagraph (2), unnumbered paragraph 4, Code 1995, is 4 3 amended by striking the unnumbered paragraph. 4 4 Sec. 6. APPLICABILITY DATE. This Act applies to all 4 5 decisions concerning claims for benefits issued on or after 4 6 July 2, 1995. 4 7 EXPLANATION 4 8 Section 1 allows both contributory and reimbursable 4 9 employers to a credit on the appropriate employer's account 4 10 when unemployment compensation benefit overpayments are made. 4 11 Section 2 allows benefits for wage credits to be 4 12 transferred to the unemployment compensation fund in cases 4 13 where an individual quit employment for another or better job 4 14 and actually worked for the new employer. 4 15 Section 3 allows both contributory and reimbursable 4 16 employers to a relief from charges when unemployment 4 17 compensation benefit overpayments are made. 4 18 Section 4 requires the unemployment compensation fund, 4 19 rather than a specific employer's account, to be charged for 4 20 benefits when a person quits a job voluntarily without good 4 21 cause attributable to the employer, refuses suitable work, or 4 22 when a person was discharged for misconduct. 4 23 Section 5 deletes language related to which employer's 4 24 account will be charged for benefits paid. 4 25 Section 6 provides that this Act applies to all decisions 4 26 concerning claims for benefits made on or after July 2, 1995. 4 27 BACKGROUND STATEMENT 4 28 SUBMITTED BY THE AGENCY 4 29 This bill eliminates the wage credit liability transfer 4 30 provisions of the unemployment compensation law. Currently, 4 31 when an employer hires a worker who quits another job, the 4 32 employer inherits the wage credits the worker earned at the 4 33 employee's previous job. Then if a person files an unemploy- 4 34 ment compensation claim, the employer is charged for the 4 35 benefits earned with the previous employer. This bill changes 5 1 that situation so an employer is charged only for the benefits 5 2 earned in their employ. 5 3 This proposal simplifies the unemployment insurance tax law 5 4 and eliminates inequities in benefit charges to employer 5 5 accounts. It reduces employer time and cost in dealing with 5 6 unemployment insurance taxes and fact-finding interviews and 5 7 enables employers to accurately project unemployment insurance 5 8 costs. 5 9 There will be no impact on people who file claims for unem- 5 10 ployment compensation, no direct cost to the unemployment 5 11 compensation fund, and no effect on the unemployment insurance 5 12 tax tables. Approximately $6.5 million will be charged to the 5 13 unemployment compensation fund rather than specific employer 5 14 accounts. Reimbursable employers, as a group, will pay 5 15 $210,000 less. 5 16 The transfer provisions were instituted in the 1970s to en- 5 17 sure the burden of unemployment insurance taxes were charged 5 18 to the employer who caused the layoff or loss of employment. 5 19 Elimination of the transfer provisions will only reduce the 5 20 experience rating by 4 percent. Only two states currently 5 21 have transfer provisions&endash;Iowa and Michigan. 5 22 Sections 1 and 3 clarify the Code language in view of 5 23 several district court cases. Previously reimbursable 5 24 employers could not receive credit or relief from charges 5 25 until the overpayments were recovered. This will ensure 5 26 overpayments which are charged to reimbursable employers are 5 27 credited before the funds are recovered so they are treated 5 28 like all other employers. 5 29 Section 6 establishes an applicability date of July 2, 5 30 1995, for decisions issued on or after that date in order to 5 31 prevent double crediting of outstanding overpayments to 5 32 reimbursable employer accounts. This also ensures that 5 33 overpayments created on or after July 2, 1995, will not be 5 34 charged and the employers will not be forced to pay the amount 5 35 of the overpayment on or after that date. 6 1 LSB 1174DP 76 6 2 ec/jw/5.1
Text: SSB00089 Text: SSB00091 Text: SSB00000 - SSB00099 Text: SSB Index Bills and Amendments: General Index Bill History: General Index
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