House File 818 - Introduced
HOUSE FILE
BY T. TAYLOR
Passed House, Date Passed Senate, Date
Vote: Ayes Nays Vote: Ayes Nays
Approved
A BILL FOR
1 An Act relating to eligibility requirements for qualification for
2 unemployment compensation benefits.
3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
4 TLSB 2990YH 81
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PAG LIN
1 1 Section 1. Section 96.3, subsection 3, Code 2005, is
1 2 amended to read as follows:
1 3 3. PARTIAL UNEMPLOYMENT. An individual who is partially
1 4 or temporarily unemployed in any week as defined in section
1 5 96.19, subsection 38, paragraph "b" or "c", and who meets the
1 6 conditions of eligibility for benefits shall be paid with
1 7 respect to that week an amount equal to the individual's
1 8 weekly benefit amount less fifty percent of that part of wages
1 9 payable to the individual with respect to that week in excess
1 10 of one=fourth of the individual's weekly benefit amount. The
1 11 benefits shall be rounded to the lower multiple of one dollar.
1 12 Benefits for an individual who is partially employed shall not
1 13 exceed an amount equal to the individual's average weekly wage
1 14 for insured work paid to the individual during that quarter of
1 15 the individual's base period in which the individual's wages
1 16 were highest.
1 17 Sec. 2. Section 96.3, subsection 4, Code 2005, is amended
1 18 to read as follows:
1 19 4. DETERMINATION OF BENEFITS. With respect to benefit
1 20 years beginning on or after July 1, 1983, an An eligible
1 21 individual's weekly benefit amount for a week of total
1 22 unemployment shall be an amount equal to the following
1 23 fractions one=twentieth of the individual's total wages in
1 24 insured work paid during that quarter of the individual's base
1 25 period in which such total wages were highest; the director
1 26 shall determine annually a maximum weekly benefit amount equal
1 27 to the following percentages, to vary with the number of
1 28 dependents, sixty=six and two=thirds percent of the statewide
1 29 average weekly wage paid to employees in insured work which
1 30 shall be effective the first day of the first full week in
1 31 July:.
1 32 If the The weekly Subject to
1 33 number of benefit amount the following
1 34 dependents shall equal maximum
1 35 is: the following percentage of
2 1 fraction of high the statewide
2 2 quarter wages: average
2 3 weekly wage:
2 4 0 1/23 53%
2 5 1 1/22 55%
2 6 2 1/21 57%
2 7 3 1/20 60%
2 8 4 or more 1/19 65%
2 9 The maximum weekly benefit amount, if not a multiple of one
2 10 dollar shall be rounded to the lower multiple of one dollar.
2 11 However, until such time as sixty=five percent of the
2 12 statewide average weekly wage exceeds one hundred ninety
2 13 dollars, the maximum weekly benefit amounts shall be
2 14 determined using the statewide average weekly wage computed on
2 15 the basis of wages reported for calendar year 1981. As used
2 16 in this section "dependent" means dependent as defined in
2 17 section 422.12, subsection 1, paragraph "c", as if the
2 18 individual claimant was a taxpayer, except that an individual
2 19 claimant's nonworking spouse shall be deemed to be a dependent
2 20 under this section. "Nonworking spouse" means a spouse who
2 21 does not earn more than one hundred twenty dollars in gross
2 22 wages in one week.
2 23 Sec. 3. Section 96.4, subsection 4, Code 2005, is amended
2 24 to read as follows:
2 25 4. The individual has been paid wages for insured work
2 26 during the individual's base period in an amount at least one
2 27 and one=quarter times the wages paid to the individual during
2 28 that quarter of the individual's base period in which the
2 29 individual's wages were highest; provided that the individual
2 30 has been paid wages for insured work totaling at least three
2 31 and five=tenths percent of the statewide average annual wage
2 32 for insured work, computed for the preceding calendar year if
2 33 the individual's benefit year begins on or after the first
2 34 full week in July and computed for the second preceding
2 35 calendar year if the individual's benefit year begins before
3 1 the first full week in July, in that calendar quarter in the
3 2 individual's base period in which the individual's wages were
3 3 highest, and the individual has been paid wages for insured
3 4 work totaling at least one=half of the amount of wages
3 5 required under this subsection in the calendar quarter of the
3 6 base period in which the individual's wages were highest, in a
3 7 calendar quarter in the individual's base period other than
3 8 the calendar quarter in which the individual's wages were
3 9 highest. The calendar quarter wage requirements shall be
3 10 rounded to the nearest multiple of ten dollars.
3 11 If the individual does not have sufficient wages in the
3 12 base period to qualify for benefits pursuant to this section,
3 13 then the extended base period shall be applied if such
3 14 extended base period qualifies the individual for benefits
3 15 under this section.
3 16 If the individual has drawn benefits in any benefit year,
3 17 the individual must during or subsequent to that year, work in
3 18 and be paid wages for insured work totaling at least two
3 19 hundred fifty dollars the statewide average weekly wage, as a
3 20 condition to receive benefits in the next benefit year.
3 21 Sec. 4. Section 96.5, subsection 1, Code 2005, is amended
3 22 by adding the following new paragraph:
3 23 NEW PARAGRAPH. b. The individual left employment during
3 24 the first thirty calendar days of employment.
3 25 Sec. 5. Section 96.5, subsection 1, paragraph j,
3 26 unnumbered paragraph 1, Code 2005, is amended to read as
3 27 follows:
3 28 The individual is a temporary employee of a temporary
3 29 employment firm who notifies the temporary employment firm of
3 30 completion of an employment assignment and who seeks
3 31 reassignment. Failure of the individual to notify the
3 32 temporary employment firm of completion of an employment
3 33 assignment within three working days of the completion of each
3 34 employment assignment under a contract of hire shall be deemed
3 35 a voluntary quit deem the individual not able and available
4 1 for work unless the individual was not advised in writing of
4 2 the duty to notify the temporary employment firm upon
4 3 completion of an employment assignment or the individual had
4 4 good cause for not contacting the temporary employment firm
4 5 within three working days and notified the firm at the first
4 6 reasonable opportunity thereafter.
4 7 Sec. 6. Section 96.5, subsection 3, paragraph b, Code
4 8 2005, is amended by adding the following new subparagraph:
4 9 NEW SUBPARAGRAPH. (4) If the individual devotes time and
4 10 effort to becoming self=employed or to establish a business
4 11 and is approved by the department for entrepreneur status
4 12 pursuant to rules adopted by the department.
4 13 Sec. 7. Section 96.5, subsection 5, paragraph a, Code
4 14 2005, is amended to read as follows:
4 15 a. Wages in lieu of notice, separation allowance,
4 16 severance pay, or dismissal pay.
4 17 Sec. 8. Section 96.5, subsection 7, Code 2005, is amended
4 18 to read as follows:
4 19 7. SEVERANCE PAY OR VACATION PAY.
4 20 a. When an employer makes a payment or becomes obligated
4 21 to make a payment to an individual for severance pay, vacation
4 22 pay, or for vacation pay allowance, or as pay in lieu of
4 23 vacation, such payment or amount shall be deemed "wages" as
4 24 defined in section 96.19, subsection 41, and shall be applied
4 25 as provided in paragraph "c" hereof.
4 26 b. When, in connection with a separation or layoff of an
4 27 individual, the individual's employer makes a payment or
4 28 payments to the individual, or becomes obligated to make a
4 29 payment to the individual as, or in the nature of, severance
4 30 pay, vacation pay, or vacation pay allowance, or as pay in
4 31 lieu of vacation, and within ten fourteen calendar days after
4 32 notification of the filing of the individual's claim,
4 33 designates by notice in writing to the department the period
4 34 to which the payment shall be allocated; provided, that if
4 35 such designated period is extended by the employer, the
5 1 individual may again similarly designate an extended period,
5 2 by giving notice in writing to the department not later than
5 3 the beginning of the extension of the period, with the same
5 4 effect as if the period of extension were included in the
5 5 original designation. The amount of a payment or obligation
5 6 to make payment, is deemed "wages" as defined in section
5 7 96.19, subsection 41, and shall be applied as provided in
5 8 paragraph "c" of this subsection 7.
5 9 c. Of the wages described in paragraph "a" (whether or not
5 10 the employer has designated the period therein described), or
5 11 of the wages described in paragraph "b", if the period therein
5 12 described has been designated by the employer as therein
5 13 provided, a sum equal to the wages of such individual for a
5 14 normal workday shall be attributed to, or deemed to be payable
5 15 to the individual with respect to, the first and each
5 16 subsequent workday in such period until such amount so paid or
5 17 owing is exhausted. Any individual receiving or entitled to
5 18 receive wages as provided herein shall be ineligible for
5 19 benefits for any week in which the sums, so designated or
5 20 attributed to such normal workdays, equal or exceed the
5 21 individual's weekly benefit amount. If the amount so
5 22 designated or attributed as wages is less than the weekly
5 23 benefit amount of such individual, the individual's benefits
5 24 shall be reduced by such amount.
5 25 d. Notwithstanding contrary provisions in paragraphs "a",
5 26 "b", and "c", if an individual is separated from employment
5 27 and is scheduled to receive severance or vacation payments
5 28 during the period of unemployment attributable to the employer
5 29 and if the employer does not designate the severance or
5 30 vacation period pursuant to paragraph "b", then payments made
5 31 by the employer to the individual or an obligation to make a
5 32 payment by the employer to the individual for severance pay,
5 33 vacation pay, vacation pay allowance or pay in lieu of
5 34 vacation shall not be deemed wages as defined in section
5 35 96.19, subsection 41, for any period in excess of one week for
6 1 severance pay and one week for vacation pay and such payments
6 2 or the value of such obligations shall not be deducted for any
6 3 period in excess of one week for severance pay and one week
6 4 for vacation pay from the unemployment benefits the individual
6 5 is otherwise entitled to receive under this chapter. However,
6 6 if the employer designates more than one week as the severance
6 7 period or more than one week as the vacation period pursuant
6 8 to paragraph "b", the severance pay, the vacation pay,
6 9 vacation pay allowance, or pay in lieu of vacation shall be
6 10 considered wages and shall be deducted from benefits.
6 11 e. If an employer pays or is obligated to pay a bonus to
6 12 an individual at the same time the employer pays or is
6 13 obligated to pay vacation pay, a vacation pay allowance, or
6 14 pay in lieu of vacation, the bonus shall not be deemed wages
6 15 for purposes of determining benefit eligibility and amount,
6 16 and the bonus shall not be deducted from unemployment benefits
6 17 the individual is otherwise entitled to receive under this
6 18 chapter.
6 19 Sec. 9. Section 96.5, Code 2005, is amended by adding the
6 20 following new subsection:
6 21 NEW SUBSECTION. 11. SELF=EMPLOYMENT. If the individual
6 22 devotes an amount of time and effort to becoming self=employed
6 23 or to establish a business preventing the individual from
6 24 being available for work unless the individual is approved by
6 25 the department for entrepreneur status pursuant to rules
6 26 adopted by the department. Benefits paid to a self=employed
6 27 individual with entrepreneur status shall be charged to the
6 28 unemployment compensation fund.
6 29 Sec. 10. Section 96.6, subsection 2, Code 2005, is amended
6 30 to read as follows:
6 31 2. INITIAL DETERMINATION. A representative designated by
6 32 the director shall promptly notify all interested parties to
6 33 the claim of its filing, and the parties have ten days from
6 34 the date of mailing the notice of the filing of the claim by
6 35 ordinary mail to the last known address to protest payment of
7 1 benefits to the claimant. The representative shall promptly
7 2 examine the claim and any protest, take the initiative to
7 3 ascertain relevant information concerning the claim, and, on
7 4 the basis of the facts found by the representative, shall
7 5 determine whether or not the claim is valid, the week with
7 6 respect to which benefits shall commence, the weekly benefit
7 7 amount payable and its maximum duration, and whether any
7 8 disqualification shall be imposed. The claimant has the
7 9 burden of proving that the claimant meets the basic
7 10 eligibility conditions of section 96.4. The employer has the
7 11 burden of proving that the claimant is disqualified for
7 12 benefits pursuant to section 96.5, except as provided by this
7 13 subsection. The claimant has the initial burden to produce
7 14 evidence showing that the claimant is not disqualified for
7 15 benefits in cases involving section 96.5, subsection 10, and
7 16 has the burden of proving that a voluntary quit pursuant to
7 17 section 96.5, subsection 1, was for good cause attributable to
7 18 the employer and that the claimant is not disqualified for
7 19 benefits in cases involving section 96.5, subsection 1,
7 20 paragraphs "a" through "h". Unless the claimant or other
7 21 interested party, after notification or within ten fourteen
7 22 calendar days after notification was mailed to the claimant's
7 23 last known address, files an appeal from the decision, the
7 24 decision is final and benefits shall be paid or denied in
7 25 accordance with the decision. However, if a denial causes a
7 26 benefit overpayment as determined in a separate decision, and
7 27 a claimant files an appeal from the overpayment decision
7 28 within fourteen calendar days after notification was mailed to
7 29 the claimant's last known address, the appeal of the
7 30 overpayment decision shall also be considered an appeal of the
7 31 denial decision causing the benefit overpayment. If an
7 32 administrative law judge affirms a decision of the
7 33 representative, or the appeal board affirms a decision of the
7 34 administrative law judge allowing benefits, the benefits shall
7 35 be paid regardless of any appeal which is thereafter taken,
8 1 but if the decision is finally reversed, no employer's account
8 2 shall be charged with benefits so paid and this relief from
8 3 charges shall apply to both contributory and reimbursable
8 4 employers, notwithstanding section 96.8, subsection 5.
8 5 Sec. 11. Section 96.6, subsection 3, unnumbered paragraph
8 6 1, Code 2005, is amended to read as follows:
8 7 Unless the appeal is withdrawn, an administrative law
8 8 judge, after affording the parties reasonable opportunity for
8 9 fair hearing, shall affirm or modify the findings of fact and
8 10 decision of the representative. The hearing shall be
8 11 conducted pursuant to the provisions of chapter 17A relating
8 12 to hearings for contested cases. Before the hearing is
8 13 scheduled, the parties shall be afforded the opportunity to
8 14 choose either a telephone hearing or an in=person hearing. A
8 15 request for an in=person hearing shall be approved unless the
8 16 in=person hearing would be impractical because of the distance
8 17 between the parties to the hearing. A telephone or in=person
8 18 hearing shall not be scheduled before the seventh calendar day
8 19 after the parties receive notice of the hearing. Reasonable
8 20 requests for the postponement of a hearing shall be granted.
8 21 The parties shall be duly notified of the administrative law
8 22 judge's decision, together with the administrative law judge's
8 23 reasons for the decision, which is the final decision of the
8 24 department, unless within fifteen fourteen days after the date
8 25 of notification or mailing of the decision, further appeal is
8 26 initiated pursuant to this section.
8 27 Sec. 12. Section 96.7, subsection 2, paragraph a,
8 28 subparagraph (2), unnumbered paragraph 3, Code 2005, is
8 29 amended to read as follows:
8 30 An employer's account shall not be charged with benefits
8 31 paid to an individual who left the work of the employer
8 32 voluntarily without good cause attributable to the employer,
8 33 or to an individual who was discharged for misconduct in
8 34 connection with the individual's employment, or to an
8 35 individual who was discharged for unsatisfactory work or work
9 1 attitude during the first thirty calendar days of employment,
9 2 or to an individual who failed without good cause, either to
9 3 apply for available, suitable work or to accept suitable work
9 4 with that employer, but shall be charged to the unemployment
9 5 compensation fund. This paragraph applies to both
9 6 contributory and reimbursable employers, notwithstanding
9 7 section 96.8, subsection 5.
9 8 Sec. 13. Section 96.19, Code 2005, is amended by adding
9 9 the following new subsection:
9 10 NEW SUBSECTION. 20A. "Extended base period" means the
9 11 period beginning with the first day of the six completed
9 12 calendar quarters immediately preceding the first day of an
9 13 individual's benefit year and ending with the last day of the
9 14 next to last completed calendar quarter immediately preceding
9 15 the date on which the individual filed a claim provided that
9 16 the first completed calendar quarter has not been previously
9 17 used for a claim in which benefits were paid unless the
9 18 benefits were overpaid and refunded prior to the date the
9 19 individual filed the claim for benefits under the extended
9 20 base period.
9 21 Sec. 14. Section 96.19, subsection 38, paragraph b, Code
9 22 2005, is amended to read as follows:
9 23 b. An individual shall be deemed partially unemployed in
9 24 any week in which, while employed at the individual's then
9 25 regular job, the individual works less than the regular full=
9 26 time week and in which the individual earns less than the
9 27 individual's average weekly benefit amount plus fifteen
9 28 dollars wage for insured work paid to the individual during
9 29 that quarter of the individual's base period in which the
9 30 individual's wages were highest.
9 31 An individual shall be deemed partially unemployed in any
9 32 week in which the individual, having been separated from the
9 33 individual's regular job, works less than forty hours and
9 34 earns at odd jobs less than the individual's average weekly
9 35 benefit amount plus fifteen dollars wage for insured work paid
10 1 to the individual during that quarter of the individual's base
10 2 period in which the individual's wages were highest.
10 3 EXPLANATION
10 4 This bill relates to the eligibility requirements for
10 5 qualification for receipt of unemployment compensation
10 6 benefits. The bill provides that individuals who are
10 7 partially or temporarily employed because of a reduction of
10 8 hours at the individual's regular job or because the
10 9 individual is working odd jobs may still qualify for
10 10 unemployment benefits in an amount reduced by one=half of the
10 11 wages earned from partial employment which exceed one=fourth
10 12 of the individual's weekly benefit amount. However, the
10 13 partially or temporarily employed individual's weekly benefit
10 14 amount shall not exceed the amount of the individual's average
10 15 weekly wage paid during the highest quarter of the
10 16 individual's base period.
10 17 The bill provides that the amount of an individual's weekly
10 18 benefit amount shall equal one=twentieth of the individual's
10 19 total wages in the highest quarter of the individual's base
10 20 period. The bill provides that the maximum weekly benefit
10 21 amount shall equal 66 and two=thirds percent of the statewide
10 22 average weekly wage paid to employees in insured work and
10 23 eliminates the calculation of the maximum weekly benefit
10 24 amount according to the number of dependents of an individual
10 25 and as a percentage of the statewide average weekly wage.
10 26 The bill eliminates the requirement that to qualify for
10 27 unemployment benefits an individual must have been paid wages
10 28 during the individual's base period in an amount at least one
10 29 and one=quarter times the wages paid to the individual during
10 30 the highest quarter of the individual's base period. The bill
10 31 provides that if an individual's base period wages are
10 32 insufficient to be eligible for benefits, an extended base
10 33 period may be applied if it qualifies the individual for
10 34 benefits. "Extended base period" is defined as beginning the
10 35 first day of the six completed quarters immediately preceding
11 1 the first day of the individual's benefit year and ending the
11 2 last day of the next to last completed quarter immediately
11 3 preceding the date when the individual filed a claim for
11 4 benefits.
11 5 The bill provides that if an individual has received
11 6 benefits in any benefit year, the individual must be paid
11 7 wages in an amount at least equaling the statewide average
11 8 weekly wage before becoming eligible for benefits in the next
11 9 benefit year.
11 10 The bill provides that an individual shall not be
11 11 disqualified from benefits if the individual left employment
11 12 during the first 30 days of employment. The bill provides
11 13 that temporary employees who fail to notify the temporary
11 14 employment firm of completion of each employment assignment
11 15 shall be considered not able and available for work to qualify
11 16 for benefits.
11 17 The bill specifically provides law that self=employed
11 18 persons are disqualified for benefits if the amount of time
11 19 devoted to self=employment or to establishing a business
11 20 prevents the individual from being available for work.
11 21 However, a self=employed individual may not be disqualified
11 22 for being unavailable if the department of workforce
11 23 development approves the individual for entrepreneur status
11 24 pursuant to rules adopted by the department. Benefits paid to
11 25 a self=employed individual who has entrepreneur status shall
11 26 be charged to the unemployment compensation fund and not to
11 27 the employer's account. A self=employed individual who has
11 28 entrepreneur status shall not be denied benefits for failing
11 29 to search for or refusing to accept new work.
11 30 The bill eliminates disqualification for benefits for any
11 31 week in which the individual receives severance pay and
11 32 provides for the treatment of receipt of severance pay in the
11 33 same manner as vacation pay.
11 34 The bill provides that an individual may file an appeal of
11 35 a denial of benefits within 14 days after receiving
12 1 notification of the denial decision. Under current law, the
12 2 individual must file an appeal within 10 days. If the
12 3 individual appeals a decision which causes benefit
12 4 overpayment, the appeal shall also be considered an appeal of
12 5 the decision denying benefits which caused the overpayment.
12 6 The bill provides that an employer's contribution account
12 7 shall not be charged with benefits paid to an individual who
12 8 was discharged for unsatisfactory work or work attitude during
12 9 the first 30 days of the individual's employment.
12 10 LSB 2990YH 81
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