Senate Study Bill 1140 - Introduced SENATE FILE _____ BY (PROPOSED COMMITTEE ON WORKFORCE BILL BY CHAIRPERSON DICKEY) A BILL FOR An Act relating to unemployment benefits and including 1 effective date provisions. 2 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 3 TLSB 1283XC (12) 90 je/rn
S.F. _____ Section 1. Section 96.1A, subsection 18, unnumbered 1 paragraph 1, Code 2023, is amended to read as follows: 2 “Exhaustee” means an individual who, with respect to any 3 week of unemployment in the individual’s eligibility period 4 has received, prior to such week, all of the regular benefits 5 that were available to the individual under this chapter or any 6 other state law, including dependents’ allowances and benefits 7 payable to federal civilian employees and former armed forces 8 personnel under 5 U.S.C. ch. 85, in the individual’s current 9 benefit year that includes such weeks. Provided that for the 10 purposes of this subsection an individual shall be deemed to 11 have received all of the regular benefits that were available 12 to the individual, although as a result of a pending appeal 13 with respect to wages that were not considered in the original 14 monetary determination in the individual’s benefit year the 15 individual may subsequently be determined to be entitled to add 16 regular benefits, or: 17 Sec. 2. Section 96.1A, Code 2023, is amended by adding the 18 following new subsection: 19 NEW SUBSECTION . 43. “Work search” means any of the 20 following: 21 a. Applying for a job by submitting a resume or application 22 to a potential employer in person, through the mail, by 23 electronic means, or by fax transmission. 24 b. Interviewing for a job virtually or in person. 25 c. Taking a civil service exam. 26 d. Taking a military aptitude exam. 27 Sec. 3. Section 96.3, subsection 4, Code 2023, 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 1283XC (12) 90 je/rn 1/ 9
S.F. _____ 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: 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 of 19 one dollar, shall be rounded to the lower upper multiple of 20 one 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 96.4, subsection 3, Code 2023, is amended 33 to read as follows: 34 3. a. The individual is able to work, is available for 35 -2- LSB 1283XC (12) 90 je/rn 2/ 9
S.F. _____ work, and is earnestly and actively seeking work. 1 b. (1) A person shall be required, at a minimum, to meet 2 the following requirements to be deemed earnestly and actively 3 seeking work: 4 (a) If the number of available jobs is at or above sixty 5 thousand, the person must complete a minimum of six work 6 searches for each week the person applies for benefits. 7 (b) If the number of available jobs is at or above fifty 8 thousand but below sixty thousand, the person must complete a 9 minimum of five work searches for each week the person applies 10 for benefits. 11 (c) If the number of available jobs is below fifty thousand, 12 the person must complete a minimum of four work searches for 13 each week the person applies for benefits. 14 (2) A work search shall not satisfy the requirements of this 15 paragraph if the individual previously applied for the same 16 position within the most recent four weeks. 17 (3) The department shall provide on a weekly basis to an 18 individual applying for benefits a list of known available 19 jobs within a fifty-mile radius of the applicant’s residence 20 in fields related to the employment the applicant had within 21 the most recent ten years, in fields which the applicant 22 has identified an interest, or that require skills that the 23 applicant claimed to have when applying for benefits. 24 (4) At least half of the individual’s work searches shall 25 be from the list of known available jobs provided by the 26 department pursuant to subparagraph (3). 27 (5) For the purposes of this paragraph, “the number of 28 available jobs” means the number of jobs listed as available as 29 published by the department on the first day of the previous 30 month. 31 c. This subsection is waived if the individual is deemed 32 partially unemployed, while employed at the individual’s 33 regular job, as defined in section 96.1A, subsection 37 , 34 paragraph “b” , subparagraph (1), or temporarily unemployed 35 -3- LSB 1283XC (12) 90 je/rn 3/ 9
S.F. _____ as defined in section 96.1A, subsection 37 , paragraph “c” . 1 The work search requirements of this subsection and the 2 disqualification requirement for failure to apply for, or 3 to accept suitable work of section 96.5, subsection 3 , are 4 waived if the individual is not disqualified for benefits under 5 section 96.5, subsection 1 , paragraph “h” . 6 b. Notwithstanding any provision of this chapter to the 7 contrary, the department may establish by rule a process to 8 waive or alter the work search requirements of this subsection 9 for a claim for benefits if an individual has a reasonable 10 expectation that the individual will be returning to employment 11 and is attached to a regular job or industry or a member in 12 good standing of a union therein eligible for referral for 13 employment. To be considered attached to a regular job or 14 industry, an individual must be on a short-term temporary 15 layoff. If work is not available at the conclusion of the 16 layoff period due to short-term circumstances beyond the 17 employer’s control, the employer may request an extension 18 of the waiver or alteration for up to two weeks from the 19 department. For purposes of this paragraph, “short-term 20 temporary layoff” means a layoff period of sixteen weeks or 21 less due to seasonal weather conditions that impact the ability 22 to perform work related to highway construction, repair, or 23 maintenance with a specific return-to-work date verified by the 24 employer. 25 Sec. 5. Section 96.4, Code 2023, is amended by adding the 26 following new subsection: 27 NEW SUBSECTION . 8. The individual has completed one search 28 activity each week from a list of permissible search activities 29 as designated by the department. This shall be in addition 30 to the requirements under subsection 3. A search activity 31 shall only meet the requirements of this subsection if the 32 individual has not previously performed that type of search 33 activity during the individual’s benefit year in order to 34 remain eligible under this subsection. The department shall 35 -4- LSB 1283XC (12) 90 je/rn 4/ 9
S.F. _____ adopt rules to implement this subsection. The department shall 1 establish by rule sixteen different types of search activities 2 acceptable to meet the requirements of this subsection. 3 Sec. 6. Section 96.6, subsection 2, Code 2023, is amended 4 to read as follows: 5 2. Initial determination. A representative designated by 6 the director shall promptly notify all interested parties to 7 the claim of its filing, and the parties have ten fourteen 8 calendar days from the date of issuance of the notice of the 9 filing of the claim to protest payment of benefits to the 10 claimant. All interested parties shall select a format as 11 specified by the department to receive such notifications. 12 The representative shall promptly examine the claim and any 13 protest, take the initiative to ascertain relevant information 14 concerning the claim, and, on the basis of the facts found 15 by the representative, shall determine whether or not the 16 claim is valid, the week with respect to which benefits shall 17 commence, the weekly benefit amount payable and its maximum 18 duration, and whether any disqualification shall be imposed. 19 The claimant has the burden of proving that the claimant meets 20 the basic eligibility conditions of section 96.4 . The employer 21 has the burden of proving that the claimant is disqualified 22 for benefits pursuant to section 96.5 , except as provided 23 by this subsection . The claimant has the initial burden to 24 produce evidence showing that the claimant is not disqualified 25 for benefits in cases involving section 96.5, subsections 10 26 and 11 , and has the burden of proving that a voluntary quit 27 pursuant to section 96.5, subsection 1 , was for good cause 28 attributable to the employer and that the claimant is not 29 disqualified for benefits in cases involving section 96.5, 30 subsection 1 , paragraphs “a” through “h” . Unless the claimant 31 or other interested party, after notification or within ten 32 fourteen calendar days after notification was issued, files an 33 appeal from the decision, the decision is final and benefits 34 shall be paid or denied in accordance with the decision. 35 -5- LSB 1283XC (12) 90 je/rn 5/ 9
S.F. _____ If an administrative law judge affirms a decision of the 1 representative, or the appeal board affirms a decision of the 2 administrative law judge allowing benefits, the benefits shall 3 be paid regardless of any appeal which is thereafter taken, 4 but if the decision is finally reversed, no employer’s account 5 shall be charged with benefits so paid and this relief from 6 charges shall apply to both contributory and reimbursable 7 employers, notwithstanding section 96.8, subsection 5 . The 8 department shall by rule allow an employer to protest a payment 9 of unemployment benefits and to protest and sign a notice of 10 claim electronically using a form created by the department. 11 Sec. 7. NEW SECTION . 96A.1 Definitions. 12 For the purposes of this chapter: 13 1. “Nonparticipating workforce rate” means the portion of 14 the population that is not employed or earnestly and actively 15 seeking work as described in section 96.4, subsection 3. 16 2. “Workforce term” means the nonparticipating workforce 17 rate, the state unemployment rate, or the number of known, 18 available jobs in Iowa as published by the department of 19 workforce development. 20 Sec. 8. NEW SECTION . 96A.2 State publications —— 21 unemployment rates. 22 1. When a state agency makes a reference to the state 23 unemployment rate in an official written statement from the 24 agency or in a report or other document that is published and 25 available to the public, the agency shall include a reference 26 to the nonparticipating workforce rate. 27 2. When the department of workforce development makes 28 a reference to a workforce term in an official written 29 statement or in a report or other document that is published 30 and available to the public, the department of workforce 31 development shall also reference each other workforce term. 32 Sec. 9. EFFECTIVE DATE. This Act takes effect January 1, 33 2024. 34 EXPLANATION 35 -6- LSB 1283XC (12) 90 je/rn 6/ 9
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 benefits. 3 The bill strikes language providing that an eligible 4 individual’s maximum weekly benefit amount varies with the 5 number of the individual’s dependents. The bill instead 6 provides that an individual with dependents will have a weekly 7 benefit amount of 1/22 the individual’s highest gross quarterly 8 salary during the individual’s base period, subject to a 9 maximum of 57 percent of the statewide average weekly wage. 10 The bill provides that the maximum weekly benefit amount for 11 unemployment benefits shall be rounded to the upper multiple of 12 $1, rather than the lower multiple as provided under current 13 law. 14 The bill requires a person applying for unemployment 15 benefits to complete a specified number of work searches, based 16 on the number of jobs listed as available as published by the 17 department of workforce development (IWD) on the first day of 18 the previous month, for each week the person is applying for 19 benefits in order to be eligible for benefits. A work search 20 shall not satisfy an individual’s eligibility requirements if 21 the individual previously applied to the same position within 22 the most recent four weeks. 23 The bill defines “work search” as applying for a job by 24 submitting a resume or application to a potential employer 25 in person, through the mail, by electronic means, or by fax 26 transmission; interviewing for a job virtually or in person; 27 taking a civil service exam; or taking a military aptitude 28 exam. 29 The bill requires that at least half of the work searches 30 an individual uses to meet eligibility requirements must be 31 from a list of known available jobs within a 50-mile radius 32 of the individual’s residence in fields related to employment 33 the applicant held within the most recent 10 years, in fields 34 which the applicant has identified an interest, or that require 35 -7- LSB 1283XC (12) 90 je/rn 7/ 9
S.F. _____ skills that the individual claimed to have when applying for 1 benefits. The bill requires IWD to provide the individual a 2 list of these jobs on a weekly basis. 3 The bill requires a person applying for unemployment 4 benefits to complete one search activity each week as 5 designated by IWD in order to be eligible for unemployment 6 benefits. The search activities are in addition to other 7 work search requirements to receive unemployment benefits. A 8 search activity shall only meet eligibility requirements if the 9 individual has not previously performed that type of search 10 activity during the individual’s benefit year in order to 11 remain eligible. The bill requires IWD to establish by rule 16 12 different types of search activities acceptable to meet these 13 requirements. 14 The bill strikes language allowing IWD to establish by 15 rule a process to waive or alter the work search requirements 16 for a claim for unemployment benefits if an individual has a 17 reasonable expectation that the individual will be returning 18 to employment and is attached to a regular job or industry on a 19 short-term temporary layoff or a member in good standing of a 20 union therein eligible for referral for employment. 21 The bill requires IWD to allow an employer to protest a 22 payment of unemployment benefits and to protest and sign a 23 notice of claim electronically using a form created by IWD. 24 The bill increases the periods for parties to protest 25 payment of unemployment benefits to a claimant, and to file 26 an appeal from a decision regarding the eligibility for, or 27 amount or duration of, a claim for unemployment benefits to 14 28 calendar days. 29 The bill requires that, when a state agency makes a reference 30 to the state unemployment rate in an official written statement 31 from the agency or in a report or other document that is 32 published and available to the public, the agency shall include 33 a reference to the nonparticipating workforce rate. The bill 34 also requires that when IWD makes a reference to a workforce 35 -8- LSB 1283XC (12) 90 je/rn 8/ 9
S.F. _____ term in an official written statement or in a report or other 1 document that is published and available to the public, the 2 IWD must also reference each other workforce term. The bill 3 defines “nonparticipating workforce rate” as the portion of 4 the population that is not employed or earnestly and actively 5 seeking work. The bill defines “workforce term” as the 6 nonparticipating workforce rate, the state unemployment rate, 7 or the number of known, available jobs in Iowa as published by 8 IWD. 9 The bill takes effect January 1, 2024. 10 -9- LSB 1283XC (12) 90 je/rn 9/ 9