HF 2238 (LSB 5769YH (2) 89)

HOUSE FILE 2238

BY  LOHSE

A BILL FOR

An Act relating to unemployment benefit maximum duration amounts and establishing a diminished salary offset.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  Section 96.3, subsection 5, paragraph a, Code 2022, is amended to read as follows:
   a.  Duration of benefits.  The maximum total amount of benefits payable to an eligible individual during a benefit year shall not exceed the total of the wage credits accrued to the individual’s account during the individual’s base period, or twenty-six sixteen times the individual’s weekly benefit amount, whichever is the lesser. The director shall maintain a separate account for each individual who earns wages in insured work. The director shall compute wage credits for each individual by crediting the individual’s account with one-third of the wages for insured work paid to the individual during the individual’s base period. However, the director shall recompute wage credits for an individual who is laid off due to the individual’s employer going out of business at the factory, establishment, or other premises at which the individual was last employed, by crediting the individual’s account with one-half, instead of one-third, of the wages for insured work paid to the individual during the individual’s base period. Benefits paid to an eligible individual shall be charged against the base period wage credits in the individual’s account which have not been previously charged, in the inverse chronological order as the wages on which the wage credits are based were paid. However if the state “off” indicator is in effect and if the individual is laid off due to the individual’s employer going out of business at the factory, establishment, or other premises at which the individual was last employed, the maximum benefits payable shall be extended to thirty-nine twenty-six times the individual’s weekly benefit amount, but not to exceed the total of the wage credits accrued to the individual’s account.
    Sec. 2.  Section 96.3, Code 2022, is amended by adding the following new subsection:
   NEW SUBSECTION.  5A.  Diminished salary offset.  If an individual receiving benefits accepts an offer of employment prior to the exhausting of all benefits for the individual’s benefit year and the gross weekly salary is less than the individual’s weekly benefit amount, the individual shall be eligible to receive an amount equal to the difference between the individual’s gross weekly salary and the individual’s weekly benefit amount. Benefits shall be exhausted when the individual’s gross weekly salary paid plus benefits received equal or are greater than the maximum total amount of benefits payable to the individual during the benefit year.
EXPLANATION
The inclusion of this explanation does not constitute agreement with
the explanation’s substance by the members of the general assembly.
   This bill relates to unemployment benefit maximum durations and establishes a diminished salary offset.
   Under current law, the maximum total amount of unemployment benefits payable to an eligible individual is the lesser of the wage credits accrued in an individual’s account during a base period, 26 times the individual’s weekly benefit amount, or 39 times the individual’s weekly benefit amount if the state “off” indicator is in effect and the individual is laid off due to the individual’s employer going out of business at the factory, establishment, or other premises at which the individual was last employed. The bill changes the maximum to the lesser of wage credits accrued in an individual’s account during a base period, 16 times the individual’s weekly benefit amount, or 26 times the individual’s weekly benefit amount if the state “off” indicator is in effect and the individual is laid off due to the individual’s employer going out of business at the factory, establishment, or other premises at which the individual was last employed.
   The bill establishes a diminished salary offset whereby an individual who accepts employment with a gross weekly salary less than the individual’s weekly unemployment benefit amount may receive an amount equal to the difference between the individual’s gross weekly salary and the individual’s weekly benefit amount if the individual accepts such employment prior to exhausting the individual’s benefits for the individual’s benefit year. The individual’s benefits shall be exhausted when the individual’s gross weekly salary paid plus benefits received are equal to or greater than the maximum total amount of benefits payable to the individual during the benefit year.