H.F. 2355 Section 1. Section 96.2, Code 2022, is amended to read as 1 follows: 2 96.2 Guide for interpretation. 3 As a guide to the interpretation and application of this 4 chapter , the public policy of this state is declared to be as 5 follows: Economic insecurity due to unemployment is a serious 6 menace to negatively impacts the health, morals, and welfare 7 of the people of this state Iowa . Involuntary unemployment 8 is therefore a subject of general interest and concern which 9 requires appropriate action by the legislature to prevent 10 its spread and to lighten its burden which now so often 11 falls with crushing force upon the unemployed worker and the 12 worker’s family. The achievement of social security requires 13 protection against this greatest hazard of our economic 14 life. This can be provided These undesirable consequences can 15 be reduced by encouraging employers to provide more stable 16 employment and by the systematic accumulation of funds during 17 periods of employment to provide benefits for periods of 18 unemployment , thus maintaining purchasing power and limiting 19 the serious social consequences of poor relief assistance. 20 The legislature, therefore, declares that in its considered 21 judgment the public good and the general welfare of the 22 citizens of this state require the enactment of this measure, 23 under the police powers of the state, for the compulsory 24 setting aside of unemployment reserves to be used for the 25 benefit of persons . This chapter provides for payment of 26 benefits to workers unemployed through no fault of their own. 27 The policy herein is intended to encourage stabilization in 28 employment, to provide for integrated employment and training 29 services in support of state economic development programs, and 30 to provide meaningful job training and employment opportunities 31 for the unemployed, underemployed, economically disadvantaged, 32 dislocated workers, and others with substantial barriers to 33 employment. To further this public policy, the state, through 34 its department of workforce development, will maintain close 35 -1- HF 2355 (2) 89 dg/rn/md 1/ 6

H.F. 2355 coordination among all federal, state, and local agencies 1 whose missions affect the employment or employability of the 2 unemployed and underemployed. 3 Sec. 2. Section 96.3, subsection 5, paragraph a, Code 2022, 4 is amended to read as follows: 5 a. Duration of benefits. The maximum total amount of 6 benefits payable to an eligible individual during a benefit 7 year shall not exceed the total of the wage credits accrued to 8 the individual’s account during the individual’s base period, 9 or twenty-six sixteen times the individual’s weekly benefit 10 amount, whichever is the lesser. The director shall maintain 11 a separate account for each individual who earns wages in 12 insured work. The director shall compute wage credits for 13 each individual by crediting the individual’s account with 14 one-third of the wages for insured work paid to the individual 15 during the individual’s base period. However, the director 16 shall recompute wage credits for an individual who is laid 17 off due to the individual’s employer going out of business at 18 the factory, establishment, or other premises at which the 19 individual was last employed, by crediting the individual’s 20 account with one-half, instead of one-third, of the wages for 21 insured work paid to the individual during the individual’s 22 base period. Benefits paid to an eligible individual shall 23 be charged against the base period wage credits in the 24 individual’s account which have not been previously charged, 25 in the inverse chronological order as the wages on which the 26 wage credits are based were paid. However if the state “off” 27 indicator is in effect and if the individual is laid off due to 28 the individual’s employer going out of business at the factory, 29 establishment, or other premises at which the individual was 30 last employed, the maximum benefits payable shall be extended 31 to thirty-nine twenty-six times the individual’s weekly benefit 32 amount, but not to exceed the total of the wage credits accrued 33 to the individual’s account. 34 Sec. 3. Section 96.3, subsection 7, paragraph b, 35 -2- HF 2355 (2) 89 dg/rn/md 2/ 6

H.F. 2355 subparagraph (1), subparagraph division (a), Code 2022, is 1 amended to read as follows: 2 (a) If the department determines that an overpayment 3 has been made, the charge for the overpayment against the 4 employer’s account shall be removed and the account shall 5 be credited with an amount equal to the overpayment from 6 the unemployment compensation trust fund and this credit 7 shall include both contributory and reimbursable employers, 8 notwithstanding section 96.8, subsection 5 . The employer shall 9 not be relieved of charges if benefits are paid because the 10 employer or an agent of the employer failed to respond timely 11 or adequately to the department’s request for information 12 relating to the payment of benefits. This prohibition 13 against relief of charges shall apply to both contributory and 14 reimbursable employers. If the department determines that an 15 employer’s failure to respond timely or adequately was due to 16 insufficient notification from the department, the employer’s 17 account shall not be charged for the overpayment. 18 Sec. 4. Section 96.5, subsection 2, Code 2022, is amended by 19 adding the following new paragraph: 20 NEW PARAGRAPH . d. For the purposes of this subsection, 21 “misconduct” means a deliberate act or omission by an 22 employee that constitutes a material breach of the duties 23 and obligations arising out of the employee’s contract of 24 employment. Misconduct is limited to conduct evincing such 25 willful or wanton disregard of an employer’s interest as 26 is found in deliberate violation or disregard of standards 27 of behavior which the employer has the right to expect of 28 employees, or in carelessness or negligence of such degree of 29 recurrence as to manifest equal culpability, wrongful intent 30 or evil design, or to show an intentional and substantial 31 disregard of the employer’s interests or of the employee’s 32 duties and obligations to the employer. Misconduct by an 33 individual includes but is not limited to all of the following: 34 (1) Material falsification of the individual’s employment 35 -3- HF 2355 (2) 89 dg/rn/md 3/ 6

H.F. 2355 application. 1 (2) Knowing violation of a reasonable and uniformly 2 enforced rule of an employer. 3 (3) Intentional damage of an employer’s property. 4 (4) Consumption of alcohol, illegal or nonprescribed 5 prescription drugs, or an impairing substance in a manner 6 not directed by the manufacturer, or a combination of such 7 substances, on the employer’s premises in violation of the 8 employer’s employment policies. 9 (5) Reporting to work under the influence of alcohol, 10 illegal or nonprescribed prescription drugs, or an impairing 11 substance in an off-label manner, or a combination of such 12 substances, on the employer’s premises in violation of the 13 employer’s employment policies, unless the individual is 14 compelled to work by the employer outside of scheduled or 15 on-call working hours. 16 (6) Conduct that substantially and unjustifiably endangers 17 the personal safety of coworkers or the general public. 18 (7) Incarceration for an act for which one could reasonably 19 expect to be incarcerated that results in missing work. 20 (8) Incarceration as a result of a misdemeanor or felony 21 conviction by a court of competent jurisdiction. 22 (9) Excessive unexcused tardiness or absenteeism. 23 (10) Falsification of any work-related report, task, or job 24 that could expose the employer or coworkers to legal liability 25 or sanction for violation of health or safety laws. 26 (11) Failure to maintain any license, registration, or 27 certification that is reasonably required by the employer or 28 by law, or that is a functional requirement to perform the 29 individual’s regular job duties, unless the failure is not 30 within the control of the individual. 31 (12) Conduct that is libelous or slanderous toward an 32 employer or an employee of the employer if such conduct is not 33 protected under state or federal law. 34 (13) Theft of an employer or coworker’s funds or property. 35 -4- HF 2355 (2) 89 dg/rn/md 4/ 6

H.F. 2355 (14) Intentional misrepresentation of time worked or work 1 carried out that results in the individual receiving unearned 2 wages or unearned benefits. 3 Sec. 5. Section 96.5, subsection 3, paragraph a, 4 subparagraph (1), subparagraph divisions (a), (b), (c), and 5 (d), Code 2022, are amended to read as follows: 6 (a) One hundred percent, if the work is offered during the 7 first five weeks week of unemployment. 8 (b) Seventy-five Ninety percent, if the work is offered 9 during the sixth second through the twelfth third week of 10 unemployment. 11 (c) Seventy Eighty percent, if the work is offered during 12 the thirteenth fourth through the eighteenth fifth week of 13 unemployment. 14 (d) Sixty-five Seventy percent, if the work is offered 15 after during the eighteenth sixth through the eighth week of 16 unemployment. 17 Sec. 6. Section 96.5, subsection 3, paragraph a, 18 subparagraph (1), Code 2022, is amended by adding the following 19 new subparagraph division: 20 NEW SUBPARAGRAPH DIVISION . (e) Sixty percent, if the work 21 is offered after the eighth week of unemployment. 22 Sec. 7. Section 96.6, subsection 3, paragraph b, Code 2022, 23 is amended to read as follows: 24 b. Appeals from the initial determination shall be heard 25 by an administrative law judge employed by the department. 26 An administrative law judge’s decision may be appealed by 27 any party to the employment appeal board created in section 28 10A.601 . The decision of the appeal board is final agency 29 action and an appeal of the decision shall be made or directly 30 to the district court. 31 Sec. 8. Section 96.40, subsection 2, Code 2022, is amended 32 by adding the following new paragraph: 33 NEW PARAGRAPH . l. The reduction in work hours for employees 34 was not based on a work week exceeding forty hours. 35 -5- HF 2355 (2) 89 dg/rn/md 5/ 6

H.F. 2355 Sec. 9. Section 96.40, Code 2022, is amended by adding the 1 following new subsections: 2 NEW SUBSECTION . 4A. Approval of a shared work plan shall 3 be revoked if the employer lays off any employee, whether the 4 employee is employed within an affected unit or not, while 5 participating in the shared work unemployment compensation 6 program. 7 NEW SUBSECTION . 12. A part-time employee shall be eligible 8 for shared work unemployment compensation program benefits, 9 provided that the employee meets all other requirements in this 10 section. 11 -6- HF 2355 (2) 89 dg/rn/md 6/ 6