S.F. _____ DIVISION I 1 UNEMPLOYMENT INSURANCE TAX AND BENEFITS —— 2019 2 Section 1. Section 96.3, subsection 5, paragraph a, Code 3 2019, is amended to read as follows: 4 a. Duration of benefits. The maximum total amount of 5 benefits payable to an eligible individual during a benefit 6 year shall not exceed the total of the wage credits accrued 7 to the individual’s account during the individual’s base 8 period, or twenty-six times the individual’s weekly benefit 9 amount, whichever is the lesser. The director shall maintain 10 a separate account for each individual who earns wages in 11 insured work. The director shall compute wage credits for 12 each individual by crediting the individual’s account with 13 one-third of the wages for insured work paid to the individual 14 during the individual’s base period. However, the director 15 shall recompute wage credits for an individual who is laid 16 off due to the individual’s employer going out of business at 17 the factory, establishment, or other premises at which the 18 individual was last employed, by crediting the individual’s 19 account with one-half, instead of one-third, of the wages for 20 insured work paid to the individual during the individual’s 21 base period. Benefits paid to an eligible individual shall 22 be charged against the base period wage credits in the 23 individual’s account which have not been previously charged, 24 in the inverse chronological order as the wages on which the 25 wage credits are based were paid. However if the state “off” 26 indicator is in effect and if the individual is laid off due to 27 the individual’s employer going out of business at the factory, 28 establishment, or other premises at which the individual was 29 last employed, the maximum benefits payable shall be extended 30 to thirty-nine times the individual’s weekly benefit amount, 31 but not to exceed the total of the wage credits accrued to the 32 individual’s account. 33 Sec. 2. Section 96.5, subsection 2, Code 2019, is amended by 34 adding the following new paragraph: 35 -1- LSB 2350XC (3) 88 je/rn 1/ 12

S.F. _____ NEW PARAGRAPH . d. For purposes of this subsection, 1 “misconduct” means a deliberate act or omission by an 2 employee that constitutes a material breach of the duties 3 and obligations arising out of the employee’s contract of 4 employment. “Misconduct” is limited to conduct evincing such 5 willful or wanton disregard of an employer’s interest as 6 is found in deliberate violation or disregard of standards 7 of behavior which the employer has the right to expect of 8 employees, or in carelessness or negligence of such degree of 9 recurrence as to manifest equal culpability, wrongful intent 10 or evil design, or to show an intentional and substantial 11 disregard of the employer’s interests or of the employee’s 12 duties and obligations to the employer. “Misconduct” includes 13 but is not limited to all of the following: 14 (1) Falsification by the individual of an employment 15 application to obtain employment. 16 (2) Knowing violation by the individual of a reasonable and 17 uniformly enforced rule of an employer. 18 (3) Damage of the employer’s property through willful 19 negligence by the individual. 20 (4) Refusal by the individual to obey reasonable 21 instructions of the employer. 22 (5) Disobedience, or manifestation of an intent to disobey, 23 reasonable instructions of the employer by the individual. 24 (6) Lack of truthfulness or candor with the employer by the 25 individual. 26 (7) Conduct not in the best interest of the employer by the 27 individual. 28 (8) Consumption by the individual of alcohol, illegal or 29 nonprescribed prescription drugs, or an impairing substance 30 in an off-label manner, or a combination of such substances, 31 on the employer’s premises in violation of the employer’s 32 employment policies. 33 (9) Reporting to work under the influence of alcohol, 34 illegal or nonprescribed prescription drugs, or an impairing 35 -2- LSB 2350XC (3) 88 je/rn 2/ 12

S.F. _____ substance used in an off-label manner, or a combination of such 1 substances, in violation of the employer’s employment policies, 2 unless the individual is compelled to report to work by the 3 employer outside of scheduled or on-call working hours. 4 (10) Conduct by the individual that endangers the personal 5 safety of the individual or coworkers. 6 (11) Incarceration of the individual that results in 7 missing work for an act for which one could reasonably expect 8 to be incarcerated. 9 (12) Incarceration of the individual following 10 conviction of a misdemeanor or felony by a court of competent 11 jurisdiction. 12 (13) Any breach of duty in connection with work which is 13 reasonably owed the employer by the individual. 14 (14) Excessive unexcused tardiness or absenteeism. 15 (15) Falsification by the individual of any work-related 16 report, task, or job that could expose the employer or 17 coworkers to legal liability or sanction for violation of 18 health or safety laws. 19 (16) Failure by the individual to maintain any license, 20 registration, or certification that is reasonably required by 21 the employer, that is required by law, or that is a functional 22 requirement to perform the individual’s regular job duties, 23 unless the failure is not within the control of the individual. 24 (17) Conduct by the individual that is defamatory toward the 25 employer or an employee of the employer if such conduct is not 26 protected under state or federal law. 27 (18) Conduct by the individual creating or attempting to 28 create dissention or animus against the employer or a coworker 29 if such conduct is not protected under state or federal law. 30 (19) Theft of funds or property of the employer or a 31 coworker by the individual. 32 (20) Misrepresentation by the individual of time worked 33 or work carried out that results in the individual receiving 34 unearned wages or unearned benefits. 35 -3- LSB 2350XC (3) 88 je/rn 3/ 12

S.F. _____ Sec. 3. Section 96.6, subsection 2, Code 2019, is amended 1 to read as follows: 2 2. Initial determination. A representative designated by 3 the director shall promptly notify all interested parties to 4 the claim of its filing, and the parties have ten days from 5 the date of mailing issuing the notice of the filing of the 6 claim by ordinary mail to the last known address to protest 7 payment of benefits to the claimant. All interested parties 8 shall select a format as specified by the department to receive 9 such notifications. The representative shall promptly examine 10 the claim and any protest, take the initiative to ascertain 11 relevant information concerning the claim, and, on the basis of 12 the facts found by the representative, shall determine whether 13 or not the claim is valid, the week with respect to which 14 benefits shall commence, the weekly benefit amount payable 15 and its maximum duration, and whether any disqualification 16 shall be imposed. The claimant has the burden of proving 17 that the claimant meets the basic eligibility conditions of 18 section 96.4 . The employer has the burden of proving that the 19 claimant is disqualified for benefits pursuant to section 96.5 , 20 except as provided by this subsection . The claimant has the 21 initial burden to produce evidence showing that the claimant 22 is not disqualified for benefits in cases involving section 23 96.5, subsections 10 and 11 , and has the burden of proving 24 that a voluntary quit pursuant to section 96.5, subsection 1 , 25 was for good cause attributable to the employer and that the 26 claimant is not disqualified for benefits in cases involving 27 section 96.5, subsection 1 , paragraphs “a” through “h” . Unless 28 the claimant or other interested party, after notification or 29 within ten calendar days after notification was mailed issued 30 to the claimant’s last known address, files an appeal from the 31 decision, the decision is final and benefits shall be paid or 32 denied in accordance with the decision. If an administrative 33 law judge affirms a decision of the representative, or the 34 appeal board affirms a decision of the administrative law judge 35 -4- LSB 2350XC (3) 88 je/rn 4/ 12

S.F. _____ allowing benefits, the benefits shall be paid regardless of 1 any appeal which is thereafter taken, but if the decision is 2 finally reversed, no employer’s account shall be charged with 3 benefits so paid and this relief from charges shall apply to 4 both contributory and reimbursable employers, notwithstanding 5 section 96.8, subsection 5 . 6 Sec. 4. Section 96.14, subsection 16, Code 2019, is amended 7 to read as follows: 8 16. Injunction upon nonpayment. Any employer or employing 9 unit refusing or failing to make and file required reports , 10 records, or to pay any contributions, interest, or penalty 11 under the provisions of this chapter , after ten days’ written 12 notice sent by the department to the employer’s or employing 13 unit’s last known address by certified mail, may be enjoined 14 from operating any business in the state while in violation 15 of this chapter upon the complaint of the department in the 16 district court of a county in which the employer or employing 17 unit has or had a place of business within the state, and 18 any temporary injunction enjoining the continuance of such 19 business may be granted without notice and without a bond being 20 required from the department. Such injunction may enjoin any 21 employer or employing unit from operating a business unit 22 until the delinquent contributions, interest, or penalties 23 shall have been made and filed or paid; or the employer shall 24 have furnished a good and sufficient bond conditioned upon the 25 payment of such delinquencies in such an amount and containing 26 such terms as may be determined by the court; or the employer 27 has entered into a plan for the liquidation of the business to 28 pay for such delinquencies as the court may approve, provided 29 that such injunction may be reinstated upon the employer’s 30 failure to comply with the terms of said plan. 31 Sec. 5. Section 96.40, subsection 2, paragraphs e and i, 32 Code 2019, are amended to read as follows: 33 e. The reduction in hours and corresponding reduction in 34 wages must be applied equally to all employees in the affected 35 -5- LSB 2350XC (3) 88 je/rn 5/ 12

S.F. _____ unit for each week reported . 1 i. The duration of the shared work plan will not exceed 2 fifty-two weeks. The employer shall only be authorized one 3 plan during a twenty-four-month period. 4 Sec. 6. Section 96.40, subsection 2, Code 2019, is amended 5 by adding the following new paragraph: 6 NEW PARAGRAPH . l. The employer shall notify all affected 7 employees and receive consent from each participating employee 8 before the plan is authorized. 9 Sec. 7. Section 96.40, Code 2019, is amended by adding the 10 following new subsection: 11 NEW SUBSECTION . 4A. An employer may file an appeal in 12 writing of a denial or approval of a plan or revocation of an 13 approved plan by the department within thirty days from the 14 date of the decision. 15 Sec. 8. Section 96.40, subsection 9, paragraph b, Code 2019, 16 is amended to read as follows: 17 b. An employer may provide as part of the plan a training 18 program the employees may attend during the hours that have 19 been reduced. Such a training program may include a training 20 program funded under the Workforce Investment Innovation and 21 Opportunity Act , of 1998 , Pub. L. No. 105-220 113-128 . If the 22 employer is able to show that the training program will provide 23 a substantive increase in the workplace and employability 24 skills of the employee so as to reduce the potential for 25 future periods of unemployment, the department shall relieve 26 the employer of charges for benefits paid to the individual 27 attending training under the plan. The employee may attend 28 the training at the work site utilizing internal resources, 29 provided the training is outside of the normal course of 30 employment, or in conjunction with an educational institution. 31 Sec. 9. EFFECTIVE DATE. This division of this Act, being 32 deemed of immediate importance, takes effect upon enactment. 33 Sec. 10. APPLICABILITY. 34 1. The following applies to any week of unemployment 35 -6- LSB 2350XC (3) 88 je/rn 6/ 12

S.F. _____ benefits beginning on or after the first Sunday after the 1 effective date of this division of this Act: 2 The section of this Act amending section 96.3. 3 2. The following apply to all voluntary shared work plans 4 approved by the department of workforce development on or after 5 the effective date of this division of this Act: 6 a. The section of this division of this Act amending section 7 96.40, subsection 2, paragraphs “e” and “i”. 8 b. The section of this division of this Act enacting section 9 96.40, subsection 2, paragraph “l”. 10 c. The section of this division of this Act enacting section 11 96.40, subsection 4A. 12 d. The section of this division of this Act amending section 13 96.40, subsection 9, paragraph “b”. 14 DIVISION II 15 UNEMPLOYMENT INSURANCE TAX AND BENEFITS —— 2020 16 Sec. 11. Section 96.3, subsection 4, Code 2019, is amended 17 to read as follows: 18 4. Determination of benefits. With respect to benefit years 19 beginning on or after July 1, 1983, an An eligible individual’s 20 weekly benefit amount for a week of total unemployment shall be 21 an amount equal to the following fractions of the individual’s 22 total wages in insured work paid during that quarter of 23 the individual’s base period in which such total wages were 24 highest; the director shall determine annually a maximum weekly 25 benefit amount equal to the following percentages, to vary with 26 the number of based on whether the individual has dependents, 27 of the statewide average weekly wage paid to employees in 28 insured work which shall be effective the first day of the 29 first full week in July: July. 30 If the The weekly Subject to 31 number of benefit amount the following 32 dependents shall equal maximum 33 is: the following percentage of 34 fraction of high the statewide 35 -7- LSB 2350XC (3) 88 je/rn 7/ 12

S.F. _____ quarter wages: average 1 weekly wage: 2 0 1/23 53% 3 1 or more 1/22 55% 57% 4 2 1/21 57% 5 3 1/20 60% 6 4 or more 1/19 65% 7 The maximum weekly benefit amount, if not a multiple of one 8 dollar, shall be rounded to the lower multiple of one dollar. 9 However, until such time as sixty-five percent of the statewide 10 average weekly wage exceeds one hundred ninety dollars, the 11 The maximum weekly benefit amounts shall be determined using 12 the statewide average weekly wage computed on the basis of 13 wages reported for the current calendar year 1981 . As used in 14 this section “dependent” means dependent as defined in section 15 422.12, subsection 1 , paragraph “a” , as if the individual 16 claimant was a taxpayer, except that an individual claimant’s 17 nonworking spouse shall be deemed to be a dependent under this 18 section . “Nonworking spouse” means a spouse who does not earn 19 more than one hundred twenty dollars in gross wages in one 20 week. 21 Sec. 12. Section 96.4, Code 2019, is amended by adding the 22 following new subsection: 23 NEW SUBSECTION . 8. The individual has satisfied a single 24 one-week waiting period during the individual’s benefit year. 25 To satisfy the one-week waiting period, the individual, with 26 respect to the week in question, must be eligible for benefits 27 from this state, but must not have received benefits from this 28 state, and must not be eligible for benefits from another 29 state. 30 Sec. 13. Section 96.7, subsection 2, paragraph c, 31 subparagraph (2), Code 2019, is amended to read as follows: 32 (2) A construction or landscaping contributory employer, 33 as defined under rules adopted by the department pursuant to 34 chapter 17A , which is newly subject to this chapter shall pay 35 -8- LSB 2350XC (3) 88 je/rn 8/ 12

S.F. _____ contributions at the rate specified in the twenty-first benefit 1 ratio rank until the end of the calendar year in which the 2 employer’s account has been chargeable with benefits for twelve 3 consecutive calendar quarters. 4 Sec. 14. Section 96.19, subsection 20, unnumbered paragraph 5 1, Code 2019, is amended to read as follows: 6 “Exhaustee” means an individual who, with respect to any 7 week of unemployment in the individual’s eligibility period 8 has received, prior to such week, all of the regular benefits 9 that were available to the individual under this chapter or any 10 other state law, including dependents’ allowances and benefits 11 payable to federal civilian employees and former armed forces 12 personnel under 5 U.S.C. ch. 85, in the individual’s current 13 benefit year that includes such weeks. Provided that for the 14 purposes of this subsection an individual shall be deemed to 15 have received all of the regular benefits that were available 16 to the individual, although as a result of a pending appeal 17 with respect to wages that were not considered in the original 18 monetary determination in the individual’s benefit year the 19 individual may subsequently be determined to be entitled to add 20 regular benefits, or: 21 Sec. 15. EFFECTIVE DATE. This division of this Act takes 22 effect July 1, 2020. 23 Sec. 16. APPLICABILITY. 24 1. The following apply to any week of unemployment benefits 25 beginning on or after July 5, 2020: 26 a. The section of this division of this Act amending section 27 96.3, subsection 4. 28 b. The section of this division of this Act amending section 29 96.19, subsection 20. 30 2. The following applies to any new claim of unemployment 31 benefits with an effective date on or after July 5, 2020: 32 The section of this division of this Act enacting section 33 96.4, subsection 8. 34 EXPLANATION 35 -9- LSB 2350XC (3) 88 je/rn 9/ 12

S.F. _____ 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 relates to unemployment insurance under Code 3 chapter 96. 4 DIVISION I. This division strikes language requiring 5 the director of the department of workforce development 6 to recompute wage credits for purposes of calculating an 7 individual’s maximum total amount of unemployment benefits 8 payable during a benefit year. The stricken language applied 9 to an individual who is laid off due to the individual’s 10 employer going out of business at the factory, establishment, 11 or other premises at which the individual was last employed by 12 crediting the individual’s account with one-half, instead of 13 one-third, of the wages for insured work paid to the individual 14 during the individual’s base period. The division also strikes 15 language providing an additional 13 weeks of benefits to such 16 individuals if the state “off” indicator, which relates to 17 the rate of insured unemployment in the state, is in effect. 18 This provision applies to any week of unemployment benefits 19 beginning on or after the first Sunday after the effective date 20 of the division. 21 Under current law, an individual is disqualified from 22 eligibility for unemployment benefits if the department of 23 workforce development finds that the individual has been 24 discharged for misconduct in connection with the individual’s 25 employment. “Misconduct” is defined by the department by rule. 26 The division provides that “misconduct” means a deliberate 27 act or omission by an employee that constitutes a material 28 breach of the duties and obligations arising out of the 29 employee’s contract of employment. “Misconduct” is limited 30 to conduct evincing such willful or wanton disregard of an 31 employer’s interest as is found in deliberate violation or 32 disregard of standards of behavior which the employer has the 33 right to expect of employees, or in carelessness or negligence 34 of such degree of recurrence as to manifest equal culpability, 35 -10- LSB 2350XC (3) 88 je/rn 10/ 12

S.F. _____ wrongful intent or evil design, or to show an intentional 1 and substantial disregard of the employer’s interests or 2 of the employee’s duties and obligations to the employer. 3 The division includes a nonexclusive list of behaviors that 4 constitute misconduct. 5 The division strikes language providing that notifications 6 of interested parties that a claim for unemployment benefits 7 has been made be sent by ordinary mail. The division instead 8 provides that such notifications shall be in a format as 9 specified by the department selected by the parties. 10 The division provides that an employer or employing unit 11 refusing or failing to make and file required records is 12 subject to a possible injunction by the department for the 13 violation. 14 The division modifies a reference to plans for liquidation 15 of deficiencies under Code chapter 96 by an employer or 16 employing unit to specify that such a plan is for the 17 liquidation of a business to pay for such deficiencies. 18 The division modifies conditions for approval of a voluntary 19 shared work program by the department. The division provides 20 that a reduction in hours and corresponding reduction in wages 21 that must be applied equally to all employees in the affected 22 unit must be applied equally for each week reported. The 23 division provides that an employer shall only be authorized 24 one plan during a 24-month period. The division requires 25 an employer to notify all affected employees and receive 26 consent from each participating employee before the plan is 27 authorized. The division also permits an employer to file 28 an appeal in writing of a denial or approval of a plan or 29 revocation of an approved plan by the department within 30 days 30 from the date of the decision and replaces a reference to the 31 federal Workforce Investment Act of 1998 with a reference to 32 the federal Workforce Innovation and Opportunity Act. These 33 provisions apply to all voluntary shared work plans approved 34 by the department of workforce development on or after the 35 -11- LSB 2350XC (3) 88 je/rn 11/ 12

S.F. _____ effective date of the division. 1 The division takes effect upon enactment. 2 DIVISION II. This division strikes language providing that 3 an eligible individual’s maximum weekly benefit amount varies 4 with the number of dependents the individual has. The division 5 instead provides that an individual with dependents is subject 6 to a maximum of 57 percent of the statewide average weekly 7 wage. The division strikes language defining “dependent”. 8 The division strikes additional obsolete language. These 9 provisions apply to any week of unemployment benefits beginning 10 on or after July 5, 2020. 11 The division provides that in order to be eligible for 12 unemployment benefits, an individual must satisfy a single 13 one-week waiting period during the individual’s benefit year. 14 To satisfy the one-week waiting period, the individual, with 15 respect to the week in question, must be eligible for benefits 16 from this state, but must not have received benefits from this 17 state, and must not be eligible for benefits from another 18 state. This provision applies to any new claim of unemployment 19 benefits with an effective date on or after July 5, 2020. 20 The division provides that a landscaping contributory 21 employer, as defined by the department by rule, which is newly 22 subject to Code chapter 96 shall pay contributions at the rate 23 specified in the twenty-first benefit ratio rank until the end 24 of the calendar year in which the employer’s account has been 25 chargeable with benefits for 12 consecutive calendar quarters. 26 The division takes effect July 1, 2020. 27 -12- LSB 2350XC (3) 88 je/rn 12/ 12