Senate File 561 - Introduced SENATE FILE 561 BY COMMITTEE ON COMMERCE (SUCCESSOR TO SSB 1088) A BILL FOR An Act concerning disqualification from eligibility for 1 unemployment benefits due to discharge for misconduct. 2 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 3 TLSB 1565SV (2) 88 je/rn

S.F. 561 Section 1. Section 96.5, subsection 2, Code 2019, is amended 1 by adding the following new paragraph: 2 NEW PARAGRAPH . d. For purposes of this subsection, 3 “misconduct” means a deliberate act or omission by an 4 employee that constitutes a material breach of the duties 5 and obligations arising out of the employee’s contract of 6 employment. “Misconduct” is limited to conduct evincing such 7 willful or wanton disregard of an employer’s interest as 8 is found in deliberate violation or disregard of standards 9 of behavior which the employer has the right to expect of 10 employees, or in carelessness or negligence of such degree of 11 recurrence as to manifest equal culpability, wrongful intent 12 or evil design, or to show an intentional and substantial 13 disregard of the employer’s interests or of the employee’s 14 duties and obligations to the employer. “Misconduct” includes 15 but is not limited to all of the following: 16 (1) Falsification by the individual of an employment 17 application to obtain employment. 18 (2) Knowing violation by the individual of a reasonable and 19 uniformly enforced rule of an employer. 20 (3) Damage of the employer’s property through intentional 21 conduct by the individual. 22 (4) Dishonesty with the employer by the individual. 23 (5) Consumption by the individual of alcohol, illegal or 24 nonprescribed prescription drugs, or an impairing substance 25 in an off-label manner, or a combination of such substances, 26 on the employer’s premises in violation of the employer’s 27 employment policies. 28 (6) 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, or a combination of such 31 substances, in violation of the employer’s employment policies, 32 unless the individual is compelled to report to work by the 33 employer outside of scheduled or on-call working hours. 34 (7) Conduct by the individual that endangers the personal 35 -1- LSB 1565SV (2) 88 je/rn 1/ 3

S.F. 561 safety of the individual or coworkers. 1 (8) Incarceration of the individual that results in missing 2 work for an act for which one could reasonably expect to be 3 incarcerated. 4 (9) Incarceration of the individual following conviction of 5 a misdemeanor or felony by a court of competent jurisdiction. 6 (10) Excessive unexcused tardiness or absenteeism. 7 (11) Falsification by the individual of any work-related 8 report, task, or job that could expose the employer or 9 coworkers to legal liability or sanction for violation of 10 health or safety laws. 11 (12) Failure by the individual to maintain any license, 12 registration, or certification that is reasonably required by 13 the employer, that is required by law, or that is a functional 14 requirement to perform the individual’s regular job duties, 15 unless the failure is not within the control of the individual. 16 (13) Conduct by the individual that is libelous or 17 slanderous toward the employer or an employee of the employer 18 if such conduct is not protected under state or federal law. 19 (14) Conduct by the individual creating or attempting to 20 create dissention or animus against the employer or a coworker 21 if such conduct is not protected under state or federal law. 22 (15) Theft of funds or property of the employer or a 23 coworker by the individual. 24 (16) Misrepresentation by the individual of time worked 25 or work carried out that results in the individual receiving 26 unearned wages or unearned benefits. 27 EXPLANATION 28 The inclusion of this explanation does not constitute agreement with 29 the explanation’s substance by the members of the general assembly. 30 Under current law, an individual is disqualified from 31 eligibility for unemployment benefits if the department of 32 workforce development finds that the individual has been 33 discharged for misconduct in connection with the individual’s 34 employment. “Misconduct” is defined by the department by rule. 35 -2- LSB 1565SV (2) 88 je/rn 2/ 3

S.F. 561 This bill provides that “misconduct” means a deliberate act 1 or omission by an employee that constitutes a material breach 2 of the duties and obligations arising out of the employee’s 3 contract of employment. “Misconduct” is limited to conduct 4 evincing such willful or wanton disregard of an employer’s 5 interest as is found in deliberate violation or disregard 6 of standards of behavior which the employer has the right 7 to expect of employees, or in carelessness or negligence of 8 such degree of recurrence as to manifest equal culpability, 9 wrongful intent or evil design, or to show an intentional and 10 substantial disregard of the employer’s interests or of the 11 employee’s duties and obligations to the employer. The bill 12 includes a nonexclusive list of behaviors that constitute 13 misconduct. 14 -3- LSB 1565SV (2) 88 je/rn 3/ 3