H.F. 2401 Section 1. Section 96.3, subsection 5, paragraph a, Code 1 Supplement 2009, is amended to read as follows: 2 a. Duration of benefits. The maximum total amount of 3 benefits payable to an eligible individual during a benefit 4 year shall not exceed the total of the wage credits accrued 5 to the individual’s account during the individual’s base 6 period, or twenty-six times the individual’s weekly benefit 7 amount, whichever is the lesser. The maximum total amount of 8 benefits if not a multiple of one dollar shall be rounded to 9 the lower multiple of one dollar. The director shall maintain 10 a separate account for each individual who earns wages in 11 insured work. The director shall compute wage credits for each 12 individual by crediting the individual’s account with one-third 13 of the wages for insured work paid to the individual during 14 the individual’s base period. However, the director shall 15 recompute wage credits for an individual who is laid off due to 16 the individual’s employer going out of business at the factory, 17 establishment, or other premises at which the individual was 18 last employed, by crediting the individual’s account with 19 one-half, instead of one-third, of the wages for insured work 20 paid to the individual during the individual’s base period. 21 Benefits paid to an eligible individual shall be charged 22 against the base period wage credits in the individual’s 23 account which have not been previously charged, in the inverse 24 chronological order as the wages on which the wage credits 25 are based were paid. However if the state “off indicator” 26 is in effect and if the individual is laid off due to the 27 individual’s employer going out of business at the factory, 28 establishment, or other premises at which the individual was 29 last employed, the maximum benefits payable shall be extended 30 to thirty-nine times the individual’s weekly benefit amount, 31 but not to exceed the total of the wage credits accrued to the 32 individual’s account. 33 Sec. 2. Section 96.4, subsection 4, paragraph a, Code 34 Supplement 2009, is amended to read as follows: 35 -1- LSB 5815HH (3) 83 ak/rj 1/ 10

H.F. 2401 a. The individual has been paid wages for insured work 1 during the individual’s base period in an amount at least one 2 and one-quarter times the wages paid to the individual during 3 that quarter of the individual’s base period in which the 4 individual’s wages were highest; provided that the individual 5 has been paid wages for insured work totaling at least three 6 and five-tenths percent of the statewide average annual wage 7 for insured work, computed for the preceding calendar year if 8 the individual’s benefit year begins on or after the first full 9 week in July and computed for the second preceding calendar 10 year if the individual’s benefit year begins before the first 11 full week in July, in that calendar quarter in the individual’s 12 base period in which the individual’s wages were highest, and 13 the individual has been paid wages for insured work totaling 14 at least one-half of the amount of wages required under this 15 paragraph in the calendar quarter of the base period in which 16 the individual’s wages were highest, in a calendar quarter in 17 the individual’s base period other than the calendar quarter 18 in which the individual’s wages were highest. The calendar 19 quarter wage requirements shall be rounded to the nearest 20 multiple of ten dollars. 21 Sec. 3. Section 96.4, subsection 4, paragraph c, Code 22 Supplement 2009, is amended to read as follows: 23 c. If the individual has drawn benefits in any benefit year, 24 the individual must during or subsequent to that year, work 25 in and be paid wages for insured work totaling at least two 26 hundred fifty dollars the statewide average weekly wage , as a 27 condition to receive benefits in the next benefit year. 28 Sec. 4. Section 96.5, subsection 1, unnumbered paragraph 1, 29 Code 2009, is amended to read as follows: 30 If the department finds that the individual has left work 31 voluntarily without good cause attributable to the individual’s 32 employer, if so found by and the department shall cancel the 33 individual’s wage credits earned from the employer . But the 34 individual shall not be disqualified if the department finds 35 -2- LSB 5815HH (3) 83 ak/rj 2/ 10

H.F. 2401 that: 1 Sec. 5. Section 96.5, subsection 1, paragraph g, Code 2009, 2 is amended by striking the paragraph. 3 Sec. 6. Section 96.5, subsection 1, paragraph j, 4 subparagraph (1), Code 2009, is amended to read as follows: 5 (1) The individual is a temporary employee of a temporary 6 employment firm who notifies the temporary employment firm 7 of completion of an employment assignment and who seeks 8 reassignment. Failure of If the individual fails to notify 9 the temporary employment firm of completion of an employment 10 assignment within three working days of the completion of 11 each employment assignment under a contract of hire , the 12 individual shall be deemed a voluntary quit unavailable 13 for work until the employer is notified or other work has 14 been obtained for the individual unless the individual was 15 not advised in writing of the duty to notify the temporary 16 employment firm upon completion of an employment assignment or 17 the individual had good cause for not contacting the temporary 18 employment firm within three working days and notified the firm 19 at the first reasonable opportunity thereafter. 20 Sec. 7. Section 96.5, subsection 2, Code 2009, is amended 21 to read as follows: 22 2. Discharge for misconduct. If the department finds that 23 the individual has been discharged for misconduct in connection 24 with the individual’s employment: 25 a. The individual shall be disqualified for benefits until 26 the individual has worked in and has been paid wages for 27 insured work equal to ten times the individual’s weekly benefit 28 amount, provided the individual is otherwise eligible. 29 b. Provided further, if For either gross misconduct 30 is established or misconduct , the department shall cancel 31 the individual’s wage credits earned , prior to the date of 32 discharge, from all employers from the employer from which 33 the individual was discharged . If the discharge for gross 34 misconduct or misconduct was from the individual’s last 35 -3- LSB 5815HH (3) 83 ak/rj 3/ 10

H.F. 2401 employer subsequent to the claim filing, the department 1 shall reduce the individual’s wage credits earned from the 2 last employer to the amount, if any, used for payment of 3 any benefits for weeks prior to the week the individual was 4 discharged. 5 c. Gross misconduct is deemed to have occurred after a 6 claimant loses employment as a result of an act constituting 7 an indictable offense in connection with the claimant’s 8 employment, provided the claimant is duly convicted thereof or 9 has signed a statement admitting the commission of such an act. 10 Determinations regarding a benefit claim may be redetermined 11 within five years from the effective date of the claim. Any 12 benefits payable due to wage credits earned from the employer 13 from which the claimant was discharged for gross misconduct 14 and paid to a the claimant prior to a the determination that 15 the claimant has lost employment as a result of such act shall 16 not be considered to have been accepted by the claimant in good 17 faith. 18 d. For suspensions without pay for just cause the department 19 shall determine a disqualification for one, two, or three weeks 20 for the suspension period based on the severity of the work 21 rule violation and consideration of progressive discipline. 22 After the disqualification period the individual is no longer 23 disqualified for benefits, provided the individual is otherwise 24 eligible. 25 Sec. 8. Section 96.5, subsection 5, paragraph a, 26 subparagraph (1), Code 2009, is amended to read as follows: 27 (1) Wages in lieu of notice , separation allowance, or 28 severance pay , or dismissal pay . 29 (a) When the individual’s employer, within ten calendar 30 days after notification of the filing of the individual’s 31 claim, provides notice in writing to the department the 32 period to which the payment shall be allocated, a sum equal 33 to the wages of such individual for a normal workday shall 34 be attributed to, or deemed to be payable to the individual 35 -4- LSB 5815HH (3) 83 ak/rj 4/ 10

H.F. 2401 with respect to, the first and each subsequent workday in such 1 period until such amount so paid or owing is exhausted. Any 2 individual receiving or entitled to receive wages provided 3 herein shall be ineligible for benefits for any week in which 4 the sums, so designated or attributed to such normal workdays, 5 equal or exceed the individual’s weekly benefit amount. If 6 the amount so designated or attributed as wages is less than 7 the weekly benefit amount of such individual, the individual’s 8 benefits shall be reduced by such amount. 9 (b) Payment for wages in lieu of notice or severance pay 10 shall not be deducted for any period in excess of one week from 11 the unemployment benefits the individual is otherwise entitled 12 to receive when any of the following apply: 13 (i) The individual’s employer fails to notify the 14 department in writing within ten calendar days after 15 notification of the filing of the individual’s claim. 16 (ii) The individual’s employer fails to designate the 17 period to which the payments shall be allocated. 18 (iii) The individual’s employer requires the individual to 19 sign a conditional release, waiver, or settlement agreement 20 before the payment for wages in lieu of notice or severance pay 21 will be paid to the individual. 22 Sec. 9. Section 96.6, subsection 2, Code 2009, is amended 23 to read as follows: 24 2. Initial determination. A representative designated by 25 the director shall promptly notify all interested parties to 26 the claim of its filing, and the parties have ten days from 27 the date of mailing the notice of the filing of the claim by 28 ordinary mail to the last known address to protest payment of 29 benefits to the claimant. The representative shall promptly 30 examine the claim and any protest, take the initiative to 31 ascertain relevant information concerning the claim, and, on 32 the basis of the facts found by the representative, shall 33 determine whether or not the claim is valid, the week with 34 respect to which benefits shall commence, the weekly benefit 35 -5- LSB 5815HH (3) 83 ak/rj 5/ 10

H.F. 2401 amount payable and its maximum duration, and whether any 1 disqualification shall be imposed. The claimant has the burden 2 of proving that the claimant meets the basic eligibility 3 conditions of section 96.4. The employer has the burden of 4 proving that the claimant is disqualified for benefits pursuant 5 to section 96.5, except as provided by this subsection. The 6 claimant has the initial burden to produce evidence showing 7 that the claimant is not disqualified for benefits in cases 8 involving section 96.5, subsection 10, and has the burden 9 of proving that a voluntary quit pursuant to section 96.5, 10 subsection 1, was for good cause attributable to the employer 11 and that the claimant is not disqualified for benefits in cases 12 involving section 96.5, subsection 1, paragraphs “a” through 13 “h” . Unless the claimant or other interested party, after 14 notification or within ten calendar days after notification 15 was mailed to the claimant’s last known address, files an 16 appeal from the decision, the decision is final and benefits 17 shall be paid or denied in accordance with the decision. 18 However, if a disqualification for benefits results in an 19 overpayment decision, the disqualification decision is not 20 final unless the claimant or other interested party, after 21 notification of the overpayment decision or within ten calendar 22 days after notification of the overpayment decision was 23 mailed to the claimant’s last known address, fails to file 24 an appeal from the overpayment decision. An appeal of the 25 overpayment decision shall also be considered an appeal of the 26 disqualification decision causing the benefit overpayment, 27 unless an appeal for the disqualification of benefits has 28 already been heard, in which case the overpayment appeal is 29 unaffected. If an administrative law judge affirms a decision 30 of the representative, or the appeal board affirms a decision 31 of the administrative law judge allowing benefits, the benefits 32 shall be paid regardless of any appeal which is thereafter 33 taken, but if the decision is finally reversed, no employer’s 34 account shall be charged with benefits so paid and this relief 35 -6- LSB 5815HH (3) 83 ak/rj 6/ 10

H.F. 2401 from charges shall apply to both contributory and reimbursable 1 employers, notwithstanding section 96.8, subsection 5. 2 Sec. 10. Section 96.19, subsection 38, paragraph b, Code 3 Supplement 2009, is amended to read as follows: 4 b. An individual shall be deemed partially unemployed in any 5 week in which either of the following apply: 6 (1) While employed at the individual’s then regular job, the 7 individual works less than the regular full-time week and in 8 which the individual earns less than the individual’s weekly 9 benefit amount plus fifteen dollars . 10 (2) The individual , having has been separated from the 11 individual’s regular job , earns at odd jobs less than the 12 individual’s weekly benefit amount plus fifteen dollars and 13 works less than the regular full-time week in other employment . 14 Sec. 11. EFFECTIVE DATE AND APPLICABILITY. The following 15 provision or provisions of this Act take effect July 4, 2010, 16 and apply to any week of unemployment benefits beginning on or 17 after that date: 18 1. The section of this Act amending section 96.5, subsection 19 5. 20 2. The section of this Act amending section 96.6. 21 3. The section of this Act amending section 96.19. 22 Sec. 12. EFFECTIVE DATE AND APPLICABILITY. The following 23 provision or provisions of this Act take effect July 4, 2010, 24 and apply to any new claim of unemployment benefits filed on 25 or after that date: 26 1. The section of this Act amending section 96.3. 27 2. The sections of this Act amending section 96.4. 28 3. The sections of this Act amending section 96.5, 29 subsection 1. 30 4. The section of this Act amending section 96.5, subsection 31 2. 32 EXPLANATION 33 This bill relates to the eligibility requirements for and 34 payment of unemployment compensation benefits. 35 -7- LSB 5815HH (3) 83 ak/rj 7/ 10

H.F. 2401 In Code section 96.3(5), the bill requires the maximum total 1 amount of benefits in a benefit year, if not a multiple of $1, 2 to be rounded to the lower multiple of $1. 3 In Code section 96.4(4), the bill eliminates the requirement 4 that to qualify for unemployment benefits an individual must 5 have been paid wages during the individual’s base period in an 6 amount at least one and one-quarter times the wages paid to the 7 individual during the highest wage quarter of the individual’s 8 base period. 9 The bill provides that if an individual has received 10 benefits in any benefit year, the individual must be paid wages 11 in an amount at least equaling the statewide weekly wage, 12 rather than $250, before becoming eligible for benefits in the 13 next benefit year. 14 In Code section 96.5(1), the bill provides that if the 15 department finds that an individual has left work voluntarily 16 without good cause attributable to the individual’s employer, 17 then the department shall cancel the individual’s wage credits 18 earned from that employer. 19 Code section 96.5(1)(g) is eliminated. The Code section 20 currently requires an individual to work in and be paid wages 21 for insured work equal to 10 times the individual’s weekly 22 benefit amount, after the individual left work voluntarily 23 without good cause attributable to the employer under 24 circumstances which would disqualify the individual for 25 benefits. 26 In Code section 96.5(1)(j), the bill provides that 27 temporary employees who fail to notify the temporary employment 28 firm of the completion of each employment assignment shall be 29 considered unavailable for work and not qualified for benefits 30 until the employer is contacted or new employment is obtained. 31 In Code section 96.5(2), the bill eliminates the requirement 32 for an individual to work in and be paid wages for insured work 33 equal to 10 times the individual’s weekly benefit to requalify 34 for benefits after the individual has been discharged for 35 -8- LSB 5815HH (3) 83 ak/rj 8/ 10

H.F. 2401 misconduct with the individual’s employer. For a discharge 1 for misconduct or gross misconduct the department shall cancel 2 the individual’s wage credits earned from the employer. For a 3 discharge for misconduct or gross misconduct in connection with 4 the individual’s employment subsequent to the claim filing, the 5 department shall reduce the individual’s wage credits earned 6 from this employer to the amount, if any, used for payment of 7 any benefits for weeks prior to the week the individual was 8 discharged. With a gross misconduct discharge the department 9 will no longer cancel wage credits earned from other employers 10 prior to the date of discharge. New Code section 96.5(2)(d) 11 provides for disqualifications for one, two, or three weeks 12 when an individual has been suspended without pay for just 13 cause. 14 In Code section 96.5(5)(a) and (b), the bill provides that if 15 notification of wages in lieu of notice or severance pay by the 16 employer is made after 10 days of notification of claim filing, 17 if the employer fails to designate a period for wages in lieu 18 of notice or severance pay to be allocated, or if the employer 19 requires the individual to sign a conditional release, waiver 20 or settlement agreement before the payment for wages in lieu of 21 notice or severance pay will be paid to the individual, then 22 wages in lieu of notice or severance pay amount is limited to 23 an amount of one week of wages and one week of deduction from 24 benefits. 25 In Code section 96.6(2), the bill provides that a denial 26 of benefits which causes a benefit overpayment does not 27 become final unless an appeal is not filed within 10 calendar 28 days of the notification of the overpayment decision. The 29 bill provides that an appeal of the overpayment decision 30 shall also be considered an appeal of the decision denying 31 benefits which caused the overpayment, unless an appeal for 32 disqualification of benefits has already been held, in which 33 case, the overpayment appeal is unaffected. 34 In Code section 96.19(38)(b), the bill amends the definition 35 -9- LSB 5815HH (3) 83 ak/rj 9/ 10

H.F. 2401 of partial employment. An individual is deemed partially 1 unemployed in any week when the individual while employed at 2 the individual’s regular job works less than the full-time 3 week or when the individual is separated from the individual’s 4 regular job and works less than the regular full-time week in 5 other employment. 6 The sections of this Act amending Code sections 96.5(5), 7 96.6, and 96.19 apply to any week of unemployment benefits 8 beginning on or after July 4, 2010. The sections of this Act 9 amending Code sections 96.3, 96.4, 96.5(1), and 96.5(2) apply 10 to any new claim of unemployment benefits with an effective 11 date on or after July 4, 2010. 12 -10- LSB 5815HH (3) 83 ak/rj 10/ 10