HF 2607 (LSB 6165HV (1) 91)

HOUSE FILE 2607

BY  COMMITTEE ON LABOR AND WORKFORCE

(SUCCESSOR TO HF 2319)

A BILL FOR

An Act exempting service performed for certain employers from eligibility for unemployment insurance, and including applicability provisions.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  NEW SECTION.  96.37  Service exempt for certain employers.
   1.  Service performed for an employer shall not be considered employment, as defined in section 96.1A, if all of the following conditions are met:
   a.  The employer certifies to the department in a manner prescribed by the department that all owners of the employing unit are members of the old order Amish church or another recognized Amish congregation, and that the employing unit and its owners hold sincere religious objections to participation in governmental insurance or social insurance programs, including unemployment insurance.
   b.  The employer does not permit any employee to claim or receive benefits under this chapter for any period of employment covered by this section.
   c.  The employer obtains from each employee employed on or hired on or after the effective date of this Act a written acknowledgment stating the employee understands that service performed for the employer for wages is not considered employment for purposes of unemployment insurance and that the employee will not be eligible to receive benefits under this chapter based on such employment.
   d.  The employer annually submits an election to the department as required by subsection 2 and the election remains in effect.
   2.  a.  This section shall only apply to an employer as of the date the employer files an election with the department in a manner prescribed by the department and the department accepts the election.
   b.  An election under this section shall remain in effect until revoked by the employer or terminated by the department for failure to comply with the requirements of this section.
   c.  Upon revocation or termination of the election, service performed for the employer shall be considered employment, as defined in section 96.1A, on and after the effective date of the revocation or termination.
   3.  This section shall not be construed to exempt an employer from any requirement of federal unemployment insurance law or any other tax or employment obligation imposed under state or federal law.
   4.  The department may adopt rules pursuant to chapter 17A to administer this section.
    Sec. 2.  APPLICABILITY.  This Act applies to service performed for an employer on or after the effective date of this Act.
EXPLANATION
The inclusion of this explanation does not constitute agreement with
the explanation’s substance by the members of the general assembly.
   This bill provides that service performed for employers is not considered employment for purposes of eligibility for unemployment benefits (benefits) if specified conditions are met.
   The employer must certify to the department of workforce development (department) that all owners of the employing unit are members of the old order Amish church or another recognized Amish congregation. The employer must further certify to the department that the employing unit and its owners hold sincere religious objections to participation in governmental insurance or social insurance programs, including unemployment insurance. The employer must not permit any employee to claim or receive benefits for any period of employment covered by the bill. The employer must obtain from each employee a written acknowledgment stating the employee understands that service performed for the employer for wages is not considered employment for purposes of unemployment insurance and that the employee will not be eligible to receive benefits based on such employment. Finally, the employer must annually submit an election to the department and the election must remain in effect.
   The bill shall not be construed to exempt an employer from any requirement of federal unemployment insurance law or any other tax or employment obligation imposed under state or federal law.
   The bill applies to service performed for an employer on or after the effective date of the bill.