Senate Study Bill 1088 - Introduced SENATE FILE _____ BY (PROPOSED COMMITTEE ON COMMERCE BILL BY CHAIRPERSON CHAPMAN) 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 1565XC (4) 88 je/rn

S.F. _____ 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 willful 21 negligence by the individual. 22 (4) Refusal by the individual to obey reasonable 23 instructions of the employer. 24 (5) Disobedience, or manifestation of an intent to disobey, 25 reasonable instructions of the employer by the individual. 26 (6) Lack of truthfulness or candor with the employer by the 27 individual. 28 (7) Conduct not in the best interest of the employer by the 29 individual. 30 (8) Consumption by the individual of alcohol, illegal or 31 nonprescribed prescription drugs, or an impairing substance 32 in an off-label manner, or a combination of such substances, 33 on the employer’s premises in violation of the employer’s 34 employment policies. 35 -1- LSB 1565XC (4) 88 je/rn 1/ 5

S.F. _____ (9) Reporting to work under the influence of alcohol, 1 illegal or nonprescribed prescription drugs, or an impairing 2 substance used in an off-label manner, or a combination of such 3 substances, in violation of the employer’s employment policies, 4 unless the individual is compelled to report to work by the 5 employer outside of scheduled or on-call working hours. 6 (10) Conduct by the individual that endangers the personal 7 safety of the individual or coworkers. 8 (11) Incarceration of the individual that results in 9 missing work for an act for which one could reasonably expect 10 to be incarcerated. 11 (12) Incarceration of the individual following 12 conviction of a misdemeanor or felony by a court of competent 13 jurisdiction. 14 (13) Any breach of duty in connection with work which is 15 reasonably owed the employer by the individual. 16 (14) Excessive unexcused tardiness or absenteeism. 17 (15) Falsification by the individual of any work-related 18 report, task, or job that could expose the employer or 19 coworkers to legal liability or sanction for violation of 20 health or safety laws. 21 (16) Failure by the individual to maintain any license, 22 registration, or certification that is reasonably required by 23 the employer, that is required by law, or that is a functional 24 requirement to perform the individual’s regular job duties, 25 unless the failure is not within the control of the individual. 26 (17) Conduct by the individual that is defamatory toward the 27 employer or an employee of the employer if such conduct is not 28 protected under state or federal law. 29 (18) Conduct by the individual creating or attempting to 30 create dissention or animus against the employer or a coworker 31 if such conduct is not protected under state or federal law. 32 (19) Theft of funds or property of the employer or a 33 coworker by the individual. 34 (20) Misrepresentation by the individual of time worked 35 -2- LSB 1565XC (4) 88 je/rn 2/ 5

S.F. _____ or work carried out that results in the individual receiving 1 unearned wages or unearned benefits. 2 Sec. 2. Section 96.6, subsection 2, Code 2019, is amended 3 to read as follows: 4 2. Initial determination. A representative designated by 5 the director shall promptly notify all interested parties to 6 the claim of its filing, and the parties have ten days from 7 the date of mailing the notice of the filing of the claim by 8 ordinary mail to the last known address to protest payment of 9 benefits to the claimant. The representative shall promptly 10 examine the claim and any protest, take the initiative to 11 ascertain relevant information concerning the claim, and, on 12 the basis of the facts found by the representative, shall 13 determine whether or not the claim is valid, the week with 14 respect to which benefits shall commence, the weekly benefit 15 amount payable and its maximum duration, and whether any 16 disqualification shall be imposed. The claimant has the burden 17 of proving that the claimant meets the basic eligibility 18 conditions of section 96.4 . The employer has the burden of 19 proving that the claimant is disqualified for benefits pursuant 20 to section 96.5 , except as provided by this subsection . The 21 claimant has the initial burden to produce evidence showing 22 that the claimant is not disqualified for benefits in cases 23 involving section 96.5, subsections 10 and 11 , and has the 24 burden of proving that a voluntary quit pursuant to section 25 96.5, subsection 1 , was for good cause attributable to the 26 employer and that the claimant is not disqualified for benefits 27 in cases involving section 96.5, subsection 1 , paragraphs 28 “a” through “h” . When making a determination as to whether 29 a claimant is disqualified for benefits pursuant to section 30 96.5, subsection 2, the representative shall not consider 31 whether, to what extent, or in what manner an employer imposed 32 disciplinary action upon the claimant for any past misconduct 33 by the claimant. Unless the claimant or other interested 34 party, after notification or within ten calendar days after 35 -3- LSB 1565XC (4) 88 je/rn 3/ 5

S.F. _____ notification was mailed to the claimant’s last known address, 1 files an appeal from the decision, the decision is final 2 and benefits shall be paid or denied in accordance with the 3 decision. If an administrative law judge affirms a decision of 4 the representative, or the appeal board affirms a decision of 5 the administrative law judge allowing benefits, the benefits 6 shall be paid regardless of any appeal which is thereafter 7 taken, but if the decision is finally reversed, no employer’s 8 account shall be charged with benefits so paid and this relief 9 from charges shall apply to both contributory and reimbursable 10 employers, notwithstanding section 96.8, subsection 5 . 11 EXPLANATION 12 The inclusion of this explanation does not constitute agreement with 13 the explanation’s substance by the members of the general assembly. 14 Under current law, an individual is disqualified from 15 eligibility for unemployment benefits if the department of 16 workforce development finds that the individual has been 17 discharged for misconduct in connection with the individual’s 18 employment. “Misconduct” is defined by the department by rule. 19 This bill provides that “misconduct” means a deliberate act 20 or omission by an employee that constitutes a material breach 21 of the duties and obligations arising out of the employee’s 22 contract of employment. “Misconduct” is limited to conduct 23 evincing such willful or wanton disregard of an employer’s 24 interest as is found in deliberate violation or disregard 25 of standards of behavior which the employer has the right 26 to expect of employees, or in carelessness or negligence of 27 such degree of recurrence as to manifest equal culpability, 28 wrongful intent or evil design, or to show an intentional and 29 substantial disregard of the employer’s interests or of the 30 employee’s duties and obligations to the employer. The bill 31 includes a nonexclusive list of behaviors that constitute 32 misconduct. 33 The bill also prohibits the department from considering 34 whether, to what extent, or in what manner an employer imposed 35 -4- LSB 1565XC (4) 88 je/rn 4/ 5

S.F. _____ disciplinary action upon an individual for any past misconduct 1 by the individual when making a determination as to whether the 2 individual is disqualified for benefits due to being discharged 3 for misconduct. 4 -5- LSB 1565XC (4) 88 je/rn 5/ 5