House File 2238 - Introduced HOUSE FILE 2238 BY LOHSE A BILL FOR An Act relating to unemployment benefit maximum duration 1 amounts and establishing a diminished salary offset. 2 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 3 TLSB 5769YH (2) 89 dg/rn

H.F. 2238 Section 1. Section 96.3, subsection 5, paragraph a, Code 1 2022, 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 to 5 the individual’s account during the individual’s base period, 6 or twenty-six sixteen 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 twenty-six times the individual’s weekly benefit 29 amount, but not to exceed the total of the wage credits accrued 30 to the individual’s account. 31 Sec. 2. Section 96.3, Code 2022, is amended by adding the 32 following new subsection: 33 NEW SUBSECTION . 5A. Diminished salary offset. If an 34 individual receiving benefits accepts an offer of employment 35 -1- LSB 5769YH (2) 89 dg/rn 1/ 3

H.F. 2238 prior to the exhausting of all benefits for the individual’s 1 benefit year and the gross weekly salary is less than the 2 individual’s weekly benefit amount, the individual shall be 3 eligible to receive an amount equal to the difference between 4 the individual’s gross weekly salary and the individual’s 5 weekly benefit amount. Benefits shall be exhausted when the 6 individual’s gross weekly salary paid plus benefits received 7 equal or are greater than the maximum total amount of benefits 8 payable to the individual during the benefit year. 9 EXPLANATION 10 The inclusion of this explanation does not constitute agreement with 11 the explanation’s substance by the members of the general assembly. 12 This bill relates to unemployment benefit maximum durations 13 and establishes a diminished salary offset. 14 Under current law, the maximum total amount of unemployment 15 benefits payable to an eligible individual is the lesser of the 16 wage credits accrued in an individual’s account during a base 17 period, 26 times the individual’s weekly benefit amount, or 39 18 times the individual’s weekly benefit amount if the state “off” 19 indicator is in effect and the individual is laid off due to 20 the individual’s employer going out of business at the factory, 21 establishment, or other premises at which the individual was 22 last employed. The bill changes the maximum to the lesser of 23 wage credits accrued in an individual’s account during a base 24 period, 16 times the individual’s weekly benefit amount, or 26 25 times the individual’s weekly benefit amount if the state “off” 26 indicator is in effect and 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. 30 The bill establishes a diminished salary offset whereby an 31 individual who accepts employment with a gross weekly salary 32 less than the individual’s weekly unemployment benefit amount 33 may receive an amount equal to the difference between the 34 individual’s gross weekly salary and the individual’s weekly 35 -2- LSB 5769YH (2) 89 dg/rn 2/ 3

H.F. 2238 benefit amount if the individual accepts such employment prior 1 to exhausting the individual’s benefits for the individual’s 2 benefit year. The individual’s benefits shall be exhausted 3 when the individual’s gross weekly salary paid plus benefits 4 received are equal to or greater than the maximum total amount 5 of benefits payable to the individual during the benefit year. 6 -3- LSB 5769YH (2) 89 dg/rn 3/ 3