SF 372 (LSB 1699XS (4) 91)

SENATE FILE 372

BY  TOWNSEND, DOTZLER, DONAHUE, TRONE GARRIOTT, STAED, PETERSEN, QUIRMBACH, WEINER, and WAHLS

A BILL FOR

An Act concerning eligibility for unemployment benefits.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  Section 96.4, subsection 3, paragraph b, Code 2025, is amended to read as follows:
   b.  Notwithstanding any provision of this chapter to the contrary, the department may establish by rule a process to waive or alter the work search requirements of this subsection for a claim for benefits if an individual has a reasonable expectation that the individual will be returning to employment and is attached to a regular job or industry or a member in good standing of a union therein eligible for referral for employment. To be considered attached to a regular job or industry, an individual must be on a short-term seasonal or temporary layoff. If work is not available at the conclusion of the layoff period due to short-term circumstances beyond the employer’s control, the employer may request an extension of the waiver or alteration for up to two weeks from the department. For purposes of this paragraph, “short-term seasonal or temporary layoff” means a layoff period of sixteen weeks or less due to seasonal weather conditions or other conditions that impact the ability to perform work related to highway construction, repair, or maintenance with a specific return-to-work date verified by the employer.
    Sec. 2.  Section 96.5, subsection 3, paragraph b, Code 2025, is amended by adding the following new subparagraphs:
   NEW SUBPARAGRAPH.  (4)  (a)  If the individual has a reasonable expectation that the individual will be returning to employment, as defined by the department by rule, and is attached to a regular job or industry or is a member in good standing of a union therein eligible for referral for employment.
   (b)  To be considered attached to a regular job or industry, an individual must be on a short-term seasonal or temporary layoff as defined in section 96.4, subsection 3.
   NEW SUBPARAGRAPH.  (5)  If all of the following circumstances apply:
   (a)  The individual is unemployed due to the individual’s employer temporarily ceasing operations or going out of business at the factory, establishment, or other premises at which the individual was last employed.
   (b)  The reason for the employer going out of business was a result of unforeseen circumstances, including but not limited to cybersecurity attacks.
   (c)  The individual has a reasonable expectation that the individual will be returning to employment with the employer that temporarily ceased operations or went out of business.
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 benefits.
   Under current law, the department of workforce development may establish by rule a process to waive or alter the work search requirements for a claim for benefits if an individual has a reasonable expectation that the individual will be returning to employment and is attached to a regular job or industry or a member in good standing of a union therein eligible for referral for employment. To be considered attached to a regular job or industry, an individual must be on a “short-term temporary layoff”, which is defined as a layoff period of 16 weeks or less due to seasonal weather conditions that impact the ability to perform work related to highway construction, repair, or maintenance with a specific return-to-work date verified by the employer. The bill changes the defined term to “short-term seasonal or temporary layoff”, provides that conditions other than weather conditions are included in the definition, and strikes the language that the work to be performed must be related to highway construction, repair, or maintenance and must have a specific return-to-work date verified by the employer.
   The bill provides that benefits shall not be denied to an eligible individual for refusing to accept work if the individual has a reasonable expectation that the individual will be returning to employment, as defined by the department by rule, and is attached to a regular job or industry or is a member in good standing of a union therein eligible for referral for employment. To be considered attached to a regular job or industry, an individual must be on a short-term seasonal or temporary layoff.
   The bill provides that benefits shall not be denied to an eligible individual for refusing to accept work if the individual is unemployed due to the individual’s employer temporarily ceasing operations or going out of business at the factory, establishment, or other premises at which the individual was last employed; the reason for the employer going out of business was a result of unforeseen circumstances; and the individual has a reasonable expectation that the individual will be returning to employment with the employer that temporarily ceased operations or went out of business.