S.F. 492 Section 1. Section 96.1A, Code 2021, is amended by adding 1 the following new subsections: 2 NEW SUBSECTION . 01. “Able to work” means the individual is 3 physically and mentally able to perform work. 4 NEW SUBSECTION . 1A. “Available for work” means the 5 individual is ready and willing to accept suitable work. 6 NEW SUBSECTION . 32A. “Severance pay” means any payment 7 in connection with separation from employment that is not 8 conditioned on the individual giving up any legal right or the 9 release of any rights. 10 Sec. 2. Section 96.1A, subsection 18, unnumbered paragraph 11 1, Code 2021, is amended to read as follows: 12 “Exhaustee” means an individual who, with respect to any 13 week of unemployment in the individual’s eligibility period 14 has received, prior to such week, all of the regular benefits 15 that were available to the individual under this chapter or any 16 other state law, including dependents’ allowances and benefits 17 payable to federal civilian employees and former armed forces 18 personnel under 5 U.S.C. ch. 85, in the individual’s current 19 benefit year that includes such weeks. Provided that for the 20 purposes of this subsection an individual shall be deemed to 21 have received all of the regular benefits that were available 22 to the individual, although as a result of a pending appeal 23 with respect to wages that were not considered in the original 24 monetary determination in the individual’s benefit year the 25 individual may subsequently be determined to be entitled to add 26 regular benefits, or: 27 Sec. 3. Section 96.3, subsection 4, Code 2021, is amended 28 to read as follows: 29 4. Determination of benefits. 30 a. With respect to benefit years beginning on or after July 31 1, 1983, an An eligible individual’s weekly benefit amount for 32 a week of total unemployment shall be an amount equal to the 33 following fractions of the individual’s total wages in insured 34 work paid during that quarter of the individual’s base period 35 -1- LSB 1843SV (3) 89 je/rn 1/ 8

S.F. 492 in which such total wages were highest. The director shall 1 determine annually a maximum weekly benefit amount equal to 2 the following percentages, to vary with the number of based on 3 whether the individual has dependents, of the statewide average 4 weekly wage paid to employees in insured work which shall be 5 effective the first day of the first full week in July: July. 6 If the The weekly Subject to 7 number of benefit amount the following 8 dependents shall equal maximum 9 is: the following percentage of 10 fraction of high the statewide 11 quarter wages: average 12 weekly wage: 13 0 1/23 53% 14 1 or more 1/22 55% 57% 15 2 1/21 57% 16 3 1/20 60% 17 4 or more 1/19 65% 18 b. The maximum weekly benefit amount, if not a multiple 19 of one dollar, shall be rounded to the lower multiple of one 20 dollar. However, until such time as sixty-five percent of 21 the statewide average weekly wage exceeds one hundred ninety 22 dollars, the The maximum weekly benefit amounts shall be 23 determined using the statewide average weekly wage computed on 24 the basis of wages reported for the current calendar year 1981 . 25 As used in this section , “dependent” means dependent as defined 26 in section 422.12, subsection 1 , paragraph “a” , as if the 27 individual claimant was a taxpayer, except that an individual 28 claimant’s nonworking spouse shall be deemed to be a dependent 29 under this section . “Nonworking spouse” means a spouse who does 30 not earn more than one hundred twenty dollars in gross wages 31 in one week. 32 Sec. 4. Section 96.3, subsection 5, paragraph a, Code 2021, 33 is amended to read as follows: 34 a. Duration of benefits. The maximum total amount of 35 -2- LSB 1843SV (3) 89 je/rn 2/ 8

S.F. 492 benefits payable to an eligible individual during a benefit 1 year shall not exceed the total of the wage credits accrued 2 to the individual’s account during the individual’s base 3 period, or twenty-six times the individual’s weekly benefit 4 amount, whichever is the lesser. The director shall maintain 5 a separate account for each individual who earns wages in 6 insured work. The director shall compute wage credits for 7 each individual by crediting the individual’s account with 8 one-third of the wages for insured work paid to the individual 9 during the individual’s base period. However, the director 10 shall recompute wage credits for an individual who is laid 11 off due to the individual’s employer going out of business at 12 the factory, establishment, or other premises at which the 13 individual was last employed, by crediting the individual’s 14 account with one-half, instead of one-third, of the wages for 15 insured work paid to the individual during the individual’s 16 base period. Benefits paid to an eligible individual shall 17 be charged against the base period wage credits in the 18 individual’s account which have not been previously charged, 19 in the inverse chronological order as the wages on which the 20 wage credits are based were paid. However if the state “off” 21 indicator is in effect and if the individual is laid off due to 22 the individual’s employer going out of business at the factory, 23 establishment, or other premises at which the individual was 24 last employed, the maximum benefits payable shall be extended 25 to thirty-nine times the individual’s weekly benefit amount, 26 but not to exceed the total of the wage credits accrued to the 27 individual’s account. 28 Sec. 5. Section 96.4, Code 2021, is amended by adding the 29 following new subsection: 30 NEW SUBSECTION . 8. The individual has satisfied a single 31 one-week waiting period during the individual’s benefit year. 32 To satisfy the one-week waiting period, the individual, with 33 respect to the week in question, must be eligible for benefits 34 from this state, but must not have received benefits from this 35 -3- LSB 1843SV (3) 89 je/rn 3/ 8

S.F. 492 state, and must not be eligible for benefits from another 1 state. 2 Sec. 6. Section 96.5, subsection 3, paragraph a, 3 subparagraph (1), subparagraph divisions (a), (b), and (c), 4 Code 2021, are amended to read as follows: 5 (a) One hundred Eighty percent, if the work is offered 6 during the first five four weeks of unemployment. 7 (b) Seventy-five Seventy percent, if the work is offered 8 during the sixth fifth through the twelfth eighth week of 9 unemployment. 10 (c) Seventy Sixty percent, if the work is offered during 11 the thirteenth through the eighteenth after the ninth week of 12 unemployment. 13 Sec. 7. Section 96.5, subsection 3, paragraph a, 14 subparagraph (1), subparagraph division (d), Code 2021, is 15 amended by striking the subparagraph division. 16 Sec. 8. Section 96.6, subsection 2, Code 2021, is amended 17 to read as follows: 18 2. Initial determination. 19 a. A representative designated by the director shall 20 promptly notify all interested parties to the claim of its 21 filing, and the parties have ten days from the date of issuing 22 the notice of the filing of the claim to protest payment 23 of benefits to the claimant. All interested parties shall 24 select a format as specified by the department to receive such 25 notifications. The representative shall promptly examine 26 the claim and any protest, take the initiative to ascertain 27 relevant information concerning the claim, and, on the basis of 28 the facts found by the representative, shall determine whether 29 or not the claim is valid, the week with respect to which 30 benefits shall commence, the weekly benefit amount payable and 31 its maximum duration, and whether any disqualification shall 32 be imposed. 33 b. The claimant has the burden of proving that the claimant 34 meets the basic eligibility conditions of section 96.4 . The 35 -4- LSB 1843SV (3) 89 je/rn 4/ 8

S.F. 492 employer has the burden of proving that the claimant is 1 disqualified for benefits pursuant to section 96.5 , except as 2 provided by this subsection . The claimant has the initial 3 burden to produce evidence showing that the claimant is not 4 disqualified for benefits in cases involving section 96.5, 5 subsections 10 and 11 , and has the burden of proving that a 6 voluntary quit pursuant to section 96.5, subsection 1 , was 7 for good cause attributable to the employer and that the 8 claimant is not disqualified for benefits in cases involving 9 section 96.5, subsection 1 , paragraphs “a” through “h” . Unless 10 the claimant or other interested party, after notification 11 or within ten calendar days after notification was issued, 12 files an appeal from the decision, the decision is final 13 and benefits shall be paid or denied in accordance with the 14 decision. If an administrative law judge affirms a decision of 15 the representative, or the appeal board affirms a decision of 16 the administrative law judge allowing benefits, the benefits 17 shall be paid regardless of any appeal which is thereafter 18 taken, but if the decision is finally reversed, no employer’s 19 account shall be charged with benefits so paid and this relief 20 from charges shall apply to both contributory and reimbursable 21 employers, notwithstanding section 96.8, subsection 5 . 22 Sec. 9. Section 96.6, subsection 4, Code 2021, is amended 23 by striking the subsection and inserting in lieu thereof the 24 following: 25 4. Effect of decision —— payment of benefits. Unless the 26 claimant or other interested party, after notification or 27 within ten calendar days after notification was issued, files 28 an appeal from the decision of the representative of the 29 department, the decision is final and benefits shall be paid or 30 denied in accordance with the decision. If an administrative 31 law judge affirms a decision of the representative, or the 32 appeal board affirms a decision of the administrative law judge 33 allowing benefits, the benefits shall be paid regardless of 34 any appeal which is thereafter taken, but if the decision is 35 -5- LSB 1843SV (3) 89 je/rn 5/ 8

S.F. 492 finally reversed, no employer’s account shall be charged with 1 benefits so paid and this relief from charges shall apply to 2 both contributory and reimbursable employers, notwithstanding 3 section 96.8, subsection 5. 4 Sec. 10. EFFECTIVE DATE. This Act takes effect July 1, 5 2022. 6 Sec. 11. APPLICABILITY. 7 1. Except as otherwise provided in this section, this Act 8 applies to any week of unemployment benefits beginning on or 9 after July 3, 2022. 10 2. The sections of this Act enacting section 96.4, 11 subsection 8, and amending section 96.6, subsection 4, apply to 12 any new claim of unemployment benefits beginning on or after 13 July 3, 2022. 14 EXPLANATION 15 The inclusion of this explanation does not constitute agreement with 16 the explanation’s substance by the members of the general assembly. 17 This bill relates to unemployment insurance under Code 18 chapter 96. 19 The bill defines “able to work”, for purposes of 20 unemployment benefits, to mean the individual is physically and 21 mentally able to perform work. The bill defines “available 22 for work”, for purposes of unemployment benefits, to mean the 23 individual is ready and willing to accept suitable work. 24 The bill defines “severance pay”, for purposes of Code 25 chapter 96, as any payment in connection with separation from 26 employment that is not conditioned on the individual giving up 27 any legal right or the release of any rights. 28 The bill strikes language providing that an eligible 29 individual’s maximum weekly benefit amount varies with the 30 number of dependents the individual has. The bill instead 31 provides that an individual with dependents is subject to a 32 maximum of 57 percent of the statewide average weekly wage. 33 The division strikes language defining “dependent”. The bill 34 strikes additional obsolete language. 35 -6- LSB 1843SV (3) 89 je/rn 6/ 8

S.F. 492 The bill strikes language requiring the director of the 1 department of workforce development to recompute wage credits 2 for purposes of calculating an individual’s maximum total 3 amount of unemployment benefits payable during a benefit year. 4 The stricken language applied to an individual who is laid 5 off due to the individual’s employer going out of business at 6 the factory, establishment, or other premises at which the 7 individual was last employed by crediting the individual’s 8 account with one-half, instead of one-third, of the wages for 9 insured work paid to the individual during the individual’s 10 base period. The bill also strikes language providing an 11 additional 13 weeks of benefits to such individuals if the 12 state “off” indicator, which relates to the rate of insured 13 unemployment in the state, is in effect. 14 The bill provides that in order to be eligible for 15 unemployment benefits, an individual must satisfy a single 16 one-week waiting period during the individual’s benefit year. 17 To satisfy the one-week waiting period, the individual, with 18 respect to the week in question, must be eligible for benefits 19 from this state, but must not have received benefits from this 20 state, and must not be eligible for benefits from another 21 state. 22 The bill modifies the percentages of the individual’s 23 average weekly wage for insured work paid to the individual 24 during the quarter of the individual’s base period in which 25 the individual’s wages were highest, which the gross weekly 26 wages for new work by the individual must equal or exceed for 27 the new work to be considered suitable. Under current law, if 28 an individual fails without good cause to apply for or accept 29 suitable work, the individual is disqualified from eligibility 30 for unemployment benefits. Under current law, the percentages 31 are 100 percent, if the work is offered during the first five 32 weeks of unemployment; 75 percent, if the work is offered 33 during the sixth through the twelfth week of unemployment; 70 34 percent, if the work is offered during the thirteenth through 35 -7- LSB 1843SV (3) 89 je/rn 7/ 8

S.F. 492 the eighteenth week of unemployment; and 65 percent, if the 1 work is offered after the eighteenth week of unemployment. 2 Under the bill, the percentages are 80 percent, if the work 3 is offered during the first four weeks of unemployment; 70 4 percent, if the work is offered during the fifth through eighth 5 week of unemployment; and 60 percent, if the work is offered 6 after the ninth week of unemployment. 7 The bill strikes language providing that a finding of 8 fact or law, judgment, conclusion, or final order regarding 9 a determination of eligibility for unemployment benefits is 10 binding only upon the parties to proceedings and is not binding 11 upon any other proceedings or action involving the same facts 12 brought by the same or related parties before the division of 13 labor services, division of workers’ compensation, other state 14 agency, arbitrator, court, or judge of this state or the United 15 States. 16 The bill takes effect July 1, 2022. The provisions of 17 the bill providing for a one-week waiting period in order to 18 be eligible for unemployment benefits and striking language 19 providing that a finding of fact or law, judgment, conclusion, 20 or final order regarding a determination of eligibility for 21 unemployment benefits is binding only upon the parties to 22 proceedings apply to any new claim of unemployment benefits 23 beginning on or after July 3, 2022. The remainder of the bill 24 applies to any week of unemployment benefits beginning on or 25 after July 3, 2022. 26 -8- LSB 1843SV (3) 89 je/rn 8/ 8