S.F. 2354 Section 1. Section 96.5, subsection 2, Code 2018, is amended 1 by adding the following new paragraph: 2 NEW PARAGRAPH . 0b. Misconduct is deemed to have occurred 3 in circumstances including but not limited to any of the 4 following: 5 (1) Falsification by the individual of an employment 6 application or any other documentation provided to the employer 7 in order to obtain employment through subterfuge. 8 (2) Failure by the individual to maintain any license, 9 registration, or certification that is reasonably required 10 by the employer, or that is required by law, to perform the 11 individual’s regular job duties, unless the failure is not 12 within the control of the individual. 13 (3) Disregard by the individual of the employer’s 14 interests, of the individual’s duties or obligations to the 15 employer, or of the individual’s duties or obligations under 16 the employer’s employment policies. 17 (4) Damage by the individual of the employer’s property 18 through conduct that is grossly negligent. 19 (5) Refusal by the individual to obey an employer’s 20 reasonable and lawful instruction, unless the refusal is due to 21 the lack of ability, skills, or training of the individual or 22 the instruction would require an unsafe act. 23 (6) Consumption by the individual of alcohol or illegal 24 or nonprescribed prescription drugs, or use by the individual 25 of an impairing substance in an off-label manner, on the 26 employer’s premises during working hours in violation of the 27 employer’s employment policies. 28 (7) Reporting to work under the influence of alcohol, 29 illegal or nonprescribed prescription drugs, or an impairing 30 substance used in an off-label manner, in violation of 31 the employer’s employment policies, unless the individual 32 is compelled to report to work by the employer outside of 33 scheduled or on-call working hours and informs the employer 34 prior to or upon arrival at the workplace that the individual 35 -1- LSB 5018SV (3) 87 je/rj 1/ 4

S.F. 2354 is under the influence of alcohol, illegal or nonprescribed 1 prescription drugs, or an impairing substance used in an 2 off-label manner in violation of the employer’s employment 3 policies. 4 (8) Grossly negligent conduct by the individual that 5 endangers the safety of the individual, coworkers, or the 6 general public. 7 (9) Conduct by the individual that is defamatory toward the 8 employer or an employee of the employer if such conduct is not 9 protected under federal or state law. 10 Sec. 2. Section 96.6, subsection 2, Code 2018, is amended 11 to read as follows: 12 2. Initial determination. A representative designated by 13 the director shall promptly notify all interested parties to 14 the claim of its filing, and the parties have ten days from 15 the date of mailing the notice of the filing of the claim by 16 ordinary mail to the last known address to protest payment of 17 benefits to the claimant. The representative shall promptly 18 examine the claim and any protest, take the initiative to 19 ascertain relevant information concerning the claim, and, on 20 the basis of the facts found by the representative, shall 21 determine whether or not the claim is valid, the week with 22 respect to which benefits shall commence, the weekly benefit 23 amount payable and its maximum duration, and whether any 24 disqualification shall be imposed. The claimant has the burden 25 of proving that the claimant meets the basic eligibility 26 conditions of section 96.4 . The employer has the burden of 27 proving that the claimant is disqualified for benefits pursuant 28 to section 96.5 , except as provided by this subsection . The 29 claimant has the initial burden to produce evidence showing 30 that the claimant is not disqualified for benefits in cases 31 involving section 96.5, subsections 10 and 11 , and has the 32 burden of proving that a voluntary quit pursuant to section 33 96.5, subsection 1 , was for good cause attributable to the 34 employer and that the claimant is not disqualified for benefits 35 -2- LSB 5018SV (3) 87 je/rj 2/ 4

S.F. 2354 in cases involving section 96.5, subsection 1 , paragraphs 1 “a” through “h” . When making a determination as to whether 2 a claimant is disqualified for benefits pursuant to section 3 96.5, subsection 2, the representative shall not consider 4 whether, to what extent, or in what manner an employer imposed 5 disciplinary action upon the claimant for any past misconduct 6 by the claimant. Unless the claimant or other interested 7 party, after notification or within ten calendar days after 8 notification was mailed to the claimant’s last known address, 9 files an appeal from the decision, the decision is final 10 and benefits shall be paid or denied in accordance with the 11 decision. If an administrative law judge affirms a decision of 12 the representative, or the appeal board affirms a decision of 13 the administrative law judge allowing benefits, the benefits 14 shall be paid regardless of any appeal which is thereafter 15 taken, but if the decision is finally reversed, no employer’s 16 account shall be charged with benefits so paid and this relief 17 from charges shall apply to both contributory and reimbursable 18 employers, notwithstanding section 96.8, subsection 5 . 19 Sec. 3. CONFLICTING DECISIONS VOID. A decision or ruling 20 by the department of workforce development or a court, or any 21 portion thereof, pertaining to misconduct pursuant to section 22 96.5, subsection 2, occurring on or after the effective date 23 of this Act, is void to the extent such decision or ruling 24 conflicts with section 96.5, subsection 2, paragraph “0b”, as 25 enacted in this Act. 26 EXPLANATION 27 The inclusion of this explanation does not constitute agreement with 28 the explanation’s substance by the members of the general assembly. 29 Under current law, an individual is disqualified from 30 eligibility for unemployment benefits if the department of 31 workforce development finds that the individual has been 32 discharged for misconduct in connection with the individual’s 33 employment. “Misconduct” is defined by the department by rule. 34 This bill provides that misconduct is deemed to have 35 -3- LSB 5018SV (3) 87 je/rj 3/ 4

S.F. 2354 occurred in circumstances including but not limited to certain 1 circumstances specified in the bill, some of which include 2 falsification of an employment application or any other 3 documentation provided to the employer in order to obtain 4 employment through subterfuge; failure to maintain any required 5 license, registration, or certification; and damage by the 6 individual of the employer’s property through conduct that is 7 grossly negligent. 8 The bill also prohibits the department from considering 9 whether, to what extent, or in what manner an employer imposed 10 disciplinary action upon an individual for any past misconduct 11 by the individual when making a determination as to whether the 12 individual is disqualified for benefits due to being discharged 13 for misconduct. 14 -4- LSB 5018SV (3) 87 je/rj 4/ 4