HF 2401 (LSB 5815HH (3) 83)

HOUSE FILE 2401

BY  TAYLOR

A BILL FOR

An Act relating to qualifications for and payment of unemployment compensation benefits, and including effective date and applicability provisions.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  Section 96.3, subsection 5, paragraph a, Code Supplement 2009, is amended to read as follows:
   a.  Duration of benefits.  The maximum total amount of benefits payable to an eligible individual during a benefit year shall not exceed the total of the wage credits accrued to the individual’s account during the individual’s base period, or twenty-six times the individual’s weekly benefit amount, whichever is the lesser.  The maximum total amount of benefits if not a multiple of one dollar shall be rounded to the lower multiple of one dollar. The director shall maintain a separate account for each individual who earns wages in insured work. The director shall compute wage credits for each individual by crediting the individual’s account with one-third of the wages for insured work paid to the individual during the individual’s base period. However, the director shall recompute wage credits for an individual who is laid off due to the individual’s employer going out of business at the factory, establishment, or other premises at which the individual was last employed, by crediting the individual’s account with one-half, instead of one-third, of the wages for insured work paid to the individual during the individual’s base period. Benefits paid to an eligible individual shall be charged against the base period wage credits in the individual’s account which have not been previously charged, in the inverse chronological order as the wages on which the wage credits are based were paid. However if the state “off indicator” is in effect and if the individual is laid off due to the individual’s employer going out of business at the factory, establishment, or other premises at which the individual was last employed, the maximum benefits payable shall be extended to thirty-nine times the individual’s weekly benefit amount, but not to exceed the total of the wage credits accrued to the individual’s account.
    Sec. 2.  Section 96.4, subsection 4, paragraph a, Code Supplement 2009, is amended to read as follows:
   a.  The individual has been paid wages for insured work during the individual’s base period in an amount at least one and one-quarter times the wages paid to the individual during that quarter of the individual’s base period in which the individual’s wages were highest; provided that the individual has been paid wages for insured work totaling at least three and five-tenths percent of the statewide average annual wage for insured work, computed for the preceding calendar year if the individual’s benefit year begins on or after the first full week in July and computed for the second preceding calendar year if the individual’s benefit year begins before the first full week in July, in that calendar quarter in the individual’s base period in which the individual’s wages were highest, and the individual has been paid wages for insured work totaling at least one-half of the amount of wages required under this paragraph in the calendar quarter of the base period in which the individual’s wages were highest, in a calendar quarter in the individual’s base period other than the calendar quarter in which the individual’s wages were highest. The calendar quarter wage requirements shall be rounded to the nearest multiple of ten dollars.
    Sec. 3.  Section 96.4, subsection 4, paragraph c, Code Supplement 2009, is amended to read as follows:
   c.  If the individual has drawn benefits in any benefit year, the individual must during or subsequent to that year, work in and be paid wages for insured work totaling at least two hundred fifty dollars the statewide average weekly wage, as a condition to receive benefits in the next benefit year.
    Sec. 4.  Section 96.5, subsection 1, unnumbered paragraph 1, Code 2009, is amended to read as follows:
   If the department finds that the individual has left work voluntarily without good cause attributable to the individual’s employer, if so found by and the department shall cancel the individual’s wage credits earned from the employer. But the individual shall not be disqualified if the department finds that:
    Sec. 5.  Section 96.5, subsection 1, paragraph g, Code 2009, is amended by striking the paragraph.
    Sec. 6.  Section 96.5, subsection 1, paragraph j, subparagraph (1), Code 2009, is amended to read as follows:
   (1)  The individual is a temporary employee of a temporary employment firm who notifies the temporary employment firm of completion of an employment assignment and who seeks reassignment. Failure of If the individual fails to notify the temporary employment firm of completion of an employment assignment within three working days of the completion of each employment assignment under a contract of hire, the individual shall be deemed a voluntary quit unavailable for work until the employer is notified or other work has been obtained for the individual unless the individual was not advised in writing of the duty to notify the temporary employment firm upon completion of an employment assignment or the individual had good cause for not contacting the temporary employment firm within three working days and notified the firm at the first reasonable opportunity thereafter.
    Sec. 7.  Section 96.5, subsection 2, Code 2009, is amended to read as follows:
   2.  Discharge for misconduct.  If the department finds that the individual has been discharged for misconduct in connection with the individual’s employment:
   a.  The individual shall be disqualified for benefits until the individual has worked in and has been paid wages for insured work equal to ten times the individual’s weekly benefit amount, provided the individual is otherwise eligible.
   b.  Provided further, if For either gross misconduct is established or misconduct, the department shall cancel the individual’s wage credits earned, prior to the date of discharge, from all employers from the employer from which the individual was discharged.  If the discharge for gross misconduct or misconduct was from the individual’s last employer subsequent to the claim filing, the department shall reduce the individual’s wage credits earned from the last employer to the amount, if any, used for payment of any benefits for weeks prior to the week the individual was discharged.
   c.  Gross misconduct is deemed to have occurred after a claimant loses employment as a result of an act constituting an indictable offense in connection with the claimant’s employment, provided the claimant is duly convicted thereof or has signed a statement admitting the commission of such an act. Determinations regarding a benefit claim may be redetermined within five years from the effective date of the claim. Any benefits payable due to wage credits earned from the employer from which the claimant was discharged for gross misconduct and paid to a the claimant prior to a the determination that the claimant has lost employment as a result of such act shall not be considered to have been accepted by the claimant in good faith.
   d.  For suspensions without pay for just cause the department shall determine a disqualification for one, two, or three weeks for the suspension period based on the severity of the work rule violation and consideration of progressive discipline. After the disqualification period the individual is no longer disqualified for benefits, provided the individual is otherwise eligible.
    Sec. 8.  Section 96.5, subsection 5, paragraph a, subparagraph (1), Code 2009, is amended to read as follows:
   (1)  Wages in lieu of notice, separation allowance, or

severance pay, or dismissal pay.
   (a)  When the individual’s employer, within ten calendar days after notification of the filing of the individual’s claim, provides notice in writing to the department the period to which the payment shall be allocated, a sum equal to the wages of such individual for a normal workday shall be attributed to, or deemed to be payable to the individual with respect to, the first and each subsequent workday in such period until such amount so paid or owing is exhausted. Any individual receiving or entitled to receive wages provided herein shall be ineligible for benefits for any week in which the sums, so designated or attributed to such normal workdays, equal or exceed the individual’s weekly benefit amount. If the amount so designated or attributed as wages is less than the weekly benefit amount of such individual, the individual’s benefits shall be reduced by such amount.
   (b)  Payment for wages in lieu of notice or severance pay shall not be deducted for any period in excess of one week from the unemployment benefits the individual is otherwise entitled to receive when any of the following apply:
   (i)  The individual’s employer fails to notify the department in writing within ten calendar days after notification of the filing of the individual’s claim.
   (ii)  The individual’s employer fails to designate the period to which the payments shall be allocated.
   (iii)  The individual’s employer requires the individual to sign a conditional release, waiver, or settlement agreement before the payment for wages in lieu of notice or severance pay will be paid to the individual.
    Sec. 9.  Section 96.6, subsection 2, Code 2009, is amended to read as follows:
   2.  Initial determination.  A representative designated by the director shall promptly notify all interested parties to the claim of its filing, and the parties have ten days from the date of mailing the notice of the filing of the claim by ordinary mail to the last known address to protest payment of benefits to the claimant. The representative shall promptly examine the claim and any protest, take the initiative to ascertain relevant information concerning the claim, and, on the basis of the facts found by the representative, shall determine whether or not the claim is valid, the week with respect to which benefits shall commence, the weekly benefit amount payable and its maximum duration, and whether any disqualification shall be imposed. The claimant has the burden of proving that the claimant meets the basic eligibility conditions of section 96.4. The employer has the burden of proving that the claimant is disqualified for benefits pursuant to section 96.5, except as provided by this subsection. The claimant has the initial burden to produce evidence showing that the claimant is not disqualified for benefits in cases involving section 96.5, subsection 10, and has the burden of proving that a voluntary quit pursuant to section 96.5, subsection 1, was for good cause attributable to the employer and that the claimant is not disqualified for benefits in cases involving section 96.5, subsection 1, paragraphs “a” through “h”. Unless the claimant or other interested party, after notification or within ten calendar days after notification was mailed to the claimant’s last known address, files an appeal from the decision, the decision is final and benefits shall be paid or denied in accordance with the decision.  However, if a disqualification for benefits results in an overpayment decision, the disqualification decision is not final unless the claimant or other interested party, after notification of the overpayment decision or within ten calendar days after notification of the overpayment decision was mailed to the claimant’s last known address, fails to file an appeal from the overpayment decision. An appeal of the overpayment decision shall also be considered an appeal of the disqualification decision causing the benefit overpayment, unless an appeal for the disqualification of benefits has already been heard, in which case the overpayment appeal is unaffected. If an administrative law judge affirms a decision of the representative, or the appeal board affirms a decision of the administrative law judge allowing benefits, the benefits shall be paid regardless of any appeal which is thereafter taken, but if the decision is finally reversed, no employer’s account shall be charged with benefits so paid and this relief from charges shall apply to both contributory and reimbursable employers, notwithstanding section 96.8, subsection 5.
    Sec. 10.  Section 96.19, subsection 38, paragraph b, Code Supplement 2009, is amended to read as follows:
   b.  An individual shall be deemed partially unemployed in any week in which either of the following apply:
   (1)  While employed at the individual’s then regular job, the individual works less than the regular full-time week and in which the individual earns less than the individual’s weekly benefit amount plus fifteen dollars.
   (2)  The individual, having has been separated from the individual’s regular job, earns at odd jobs less than the individual’s weekly benefit amount plus fifteen dollars and works less than the regular full-time week in other employment.
    Sec. 11.  EFFECTIVE DATE AND APPLICABILITY.  The following provision or provisions of this Act take effect July 4, 2010, and apply to any week of unemployment benefits beginning on or after that date:
   1.  The section of this Act amending section 96.5, subsection 5.
   2.  The section of this Act amending section 96.6.
   3.  The section of this Act amending section 96.19.
    Sec. 12.  EFFECTIVE DATE AND APPLICABILITY.  The following provision or provisions of this Act take effect July 4, 2010, and apply to any new claim of unemployment benefits filed on or after that date:
   1.  The section of this Act amending section 96.3.
   2.  The sections of this Act amending section 96.4.
   3.  The sections of this Act amending section 96.5, subsection 1.
   4.  The section of this Act amending section 96.5, subsection 2.
EXPLANATION
   This bill relates to the eligibility requirements for and payment of unemployment compensation benefits.
   In Code section 96.3(5), the bill requires the maximum total amount of benefits in a benefit year, if not a multiple of $1, to be rounded to the lower multiple of $1.
   In Code section 96.4(4), the bill eliminates the requirement that to qualify for unemployment benefits an individual must have been paid wages during the individual’s base period in an amount at least one and one-quarter times the wages paid to the individual during the highest wage quarter of the individual’s base period.
   The bill provides that if an individual has received benefits in any benefit year, the individual must be paid wages in an amount at least equaling the statewide weekly wage, rather than $250, before becoming eligible for benefits in the next benefit year.
   In Code section 96.5(1), the bill provides that if the department finds that an individual has left work voluntarily without good cause attributable to the individual’s employer, then the department shall cancel the individual’s wage credits earned from that employer.
   Code section 96.5(1)(g) is eliminated. The Code section currently requires an individual to work in and be paid wages for insured work equal to 10 times the individual’s weekly benefit amount, after the individual left work voluntarily without good cause attributable to the employer under circumstances which would disqualify the individual for benefits.
   In Code section 96.5(1)(j), the bill provides that temporary employees who fail to notify the temporary employment firm of the completion of each employment assignment shall be considered unavailable for work and not qualified for benefits until the employer is contacted or new employment is obtained.
   In Code section 96.5(2), the bill eliminates the requirement for an individual to work in and be paid wages for insured work equal to 10 times the individual’s weekly benefit to requalify for benefits after the individual has been discharged for misconduct with the individual’s employer. For a discharge for misconduct or gross misconduct the department shall cancel the individual’s wage credits earned from the employer. For a discharge for misconduct or gross misconduct in connection with the individual’s employment subsequent to the claim filing, the department shall reduce the individual’s wage credits earned from this employer to the amount, if any, used for payment of any benefits for weeks prior to the week the individual was discharged. With a gross misconduct discharge the department will no longer cancel wage credits earned from other employers prior to the date of discharge. New Code section 96.5(2)(d) provides for disqualifications for one, two, or three weeks when an individual has been suspended without pay for just cause.
   In Code section 96.5(5)(a) and (b), the bill provides that if notification of wages in lieu of notice or severance pay by the employer is made after 10 days of notification of claim filing, if the employer fails to designate a period for wages in lieu of notice or severance pay to be allocated, or if the employer requires the individual to sign a conditional release, waiver or settlement agreement before the payment for wages in lieu of notice or severance pay will be paid to the individual, then wages in lieu of notice or severance pay amount is limited to an amount of one week of wages and one week of deduction from benefits.
   In Code section 96.6(2), the bill provides that a denial of benefits which causes a benefit overpayment does not become final unless an appeal is not filed within 10 calendar days of the notification of the overpayment decision. The bill provides that an appeal of the overpayment decision shall also be considered an appeal of the decision denying benefits which caused the overpayment, unless an appeal for disqualification of benefits has already been held, in which case, the overpayment appeal is unaffected.
   In Code section 96.19(38)(b), the bill amends the definition of partial employment. An individual is deemed partially unemployed in any week when the individual while employed at the individual’s regular job works less than the full-time week or when the individual is separated from the individual’s regular job and works less than the regular full-time week in other employment.
   The sections of this Act amending Code sections 96.5(5), 96.6, and 96.19 apply to any week of unemployment benefits beginning on or after July 4, 2010. The sections of this Act amending Code sections 96.3, 96.4, 96.5(1), and 96.5(2) apply to any new claim of unemployment benefits with an effective date on or after July 4, 2010.