House File 2462 - Introduced HOUSE FILE 2462 BY COMMITTEE ON LABOR (SUCCESSOR TO HSB 602) A BILL FOR An Act relating to the maximum duration of unemployment 1 benefits for certain individuals and including applicability 2 provisions. 3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 4 TLSB 5400HV (1) 88 je/rn

H.F. 2462 Section 1. Section 96.3, subsection 5, paragraph a, Code 1 2020, 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 director shall maintain 8 a separate account for each individual who earns wages in 9 insured work. The director shall compute wage credits for 10 each individual by crediting the individual’s account with 11 one-third of the wages for insured work paid to the individual 12 during the individual’s base period. However, the director 13 shall recompute wage credits for an individual who is laid 14 off due to the individual’s employer going out of business at 15 the factory, establishment, or other premises at which the 16 individual was last employed, by crediting the individual’s 17 account with one-half, instead of one-third, of the wages for 18 insured work paid to the individual during the individual’s 19 base period. Benefits paid to an eligible individual shall 20 be charged against the base period wage credits in the 21 individual’s account which have not been previously charged, 22 in the inverse chronological order as the wages on which the 23 wage credits are based were paid. However if the state “off” 24 indicator is in effect and if the individual is laid off due to 25 the individual’s employer going out of business at the factory, 26 establishment, or other premises at which the individual was 27 last employed, the maximum benefits payable shall be extended 28 to thirty-nine times the individual’s weekly benefit amount, 29 but not to exceed the total of the wage credits accrued to the 30 individual’s account. 31 Sec. 2. APPLICABILITY. This Act applies to any week of 32 unemployment benefits beginning on or after the first Sunday 33 after the effective date of this Act. 34 EXPLANATION 35 -1- LSB 5400HV (1) 88 je/rn 1/ 2

H.F. 2462 The inclusion of this explanation does not constitute agreement with 1 the explanation’s substance by the members of the general assembly. 2 This bill strikes language requiring the director of the 3 department of workforce development to recompute wage credits 4 for purposes of calculating an individual’s maximum total 5 amount of unemployment benefits payable during a benefit year. 6 The stricken language applied to an individual who is laid 7 off due to the individual’s employer going out of business at 8 the factory, establishment, or other premises at which the 9 individual was last employed by crediting the individual’s 10 account with one-half, instead of one-third, of the wages for 11 insured work paid to the individual during the individual’s 12 base period. The bill also strikes language providing an 13 additional 13 weeks of benefits to such individuals if the 14 state “off” indicator, which relates to the rate of insured 15 unemployment in the state, is in effect. The bill applies to 16 any week of unemployment benefits beginning on or after the 17 first Sunday after the effective date of the bill. 18 -2- LSB 5400HV (1) 88 je/rn 2/ 2