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Senate Study Bill 1149 - IntroducedA Bill ForAn Act 1concerning unemployment insurance and including
2effective date and applicability provisions.
3BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1DIVISION I
2Unemployment insurance tax and benefits — 2019
3 Section 1. Section 96.3, subsection 5, paragraph a, Code
42019, is amended to read as follows:
5a. Duration of benefits. The maximum total amount of
6benefits payable to an eligible individual during a benefit
7year shall not exceed the total of the wage credits accrued
8to the individual’s account during the individual’s base
9period, or twenty-six times the individual’s weekly benefit
10amount, whichever is the lesser. The director shall maintain
11a separate account for each individual who earns wages in
12insured work. The director shall compute wage credits for
13each individual by crediting the individual’s account with
14one-third of the wages for insured work paid to the individual
15during the individual’s base period. However, the director
16shall recompute wage credits for an individual who is laid
17off due to the individual’s employer going out of business at
18the factory, establishment, or other premises at which the
19individual was last employed, by crediting the individual’s
20account with one-half, instead of one-third, of the wages for
21insured work paid to the individual during the individual’s
22base period. Benefits paid to an eligible individual shall
23be charged against the base period wage credits in the
24individual’s account which have not been previously charged,
25in the inverse chronological order as the wages on which the
26wage credits are based were paid. However if the state “off”
27indicator is in effect and if the individual is laid off due to
28the individual’s employer going out of business at the factory,
29establishment, or other premises at which the individual was
30last employed, the maximum benefits payable shall be extended
31to thirty-nine times the individual’s weekly benefit amount,
32but not to exceed the total of the wage credits accrued to the
33individual’s account.
34 Sec. 2. Section 96.5, subsection 2, Code 2019, is amended by
35adding the following new paragraph:
-1-1 NEW PARAGRAPH. d. For purposes of this subsection,
2“misconduct” means a deliberate act or omission by an
3employee that constitutes a material breach of the duties
4and obligations arising out of the employee’s contract of
5employment. “Misconduct” is limited to conduct evincing such
6willful or wanton disregard of an employer’s interest as
7is found in deliberate violation or disregard of standards
8of behavior which the employer has the right to expect of
9employees, or in carelessness or negligence of such degree of
10recurrence as to manifest equal culpability, wrongful intent
11or evil design, or to show an intentional and substantial
12disregard of the employer’s interests or of the employee’s
13duties and obligations to the employer. “Misconduct” includes
14but is not limited to all of the following:
15(1) Falsification by the individual of an employment
16application to obtain employment.
17(2) Knowing violation by the individual of a reasonable and
18uniformly enforced rule of an employer.
19(3) Damage of the employer’s property through willful
20negligence by the individual.
21(4) Refusal by the individual to obey reasonable
22instructions of the employer.
23(5) Disobedience, or manifestation of an intent to disobey,
24reasonable instructions of the employer by the individual.
25(6) Lack of truthfulness or candor with the employer by the
26individual.
27(7) Conduct not in the best interest of the employer by the
28individual.
29(8) Consumption by the individual of alcohol, illegal or
30nonprescribed prescription drugs, or an impairing substance
31in an off-label manner, or a combination of such substances,
32on the employer’s premises in violation of the employer’s
33employment policies.
34(9) Reporting to work under the influence of alcohol,
35illegal or nonprescribed prescription drugs, or an impairing
-2-1substance used in an off-label manner, or a combination of such
2substances, in violation of the employer’s employment policies,
3unless the individual is compelled to report to work by the
4employer outside of scheduled or on-call working hours.
5(10) Conduct by the individual that endangers the personal
6safety of the individual or coworkers.
7(11) Incarceration of the individual that results in
8missing work for an act for which one could reasonably expect
9to be incarcerated.
10(12) Incarceration of the individual following
11conviction of a misdemeanor or felony by a court of competent
12jurisdiction.
13(13) Any breach of duty in connection with work which is
14reasonably owed the employer by the individual.
15(14) Excessive unexcused tardiness or absenteeism.
16(15) Falsification by the individual of any work-related
17report, task, or job that could expose the employer or
18coworkers to legal liability or sanction for violation of
19health or safety laws.
20(16) Failure by the individual to maintain any license,
21registration, or certification that is reasonably required by
22the employer, that is required by law, or that is a functional
23requirement to perform the individual’s regular job duties,
24unless the failure is not within the control of the individual.
25(17) Conduct by the individual that is defamatory toward the
26employer or an employee of the employer if such conduct is not
27protected under state or federal law.
28(18) Conduct by the individual creating or attempting to
29create dissention or animus against the employer or a coworker
30if such conduct is not protected under state or federal law.
31(19) Theft of funds or property of the employer or a
32coworker by the individual.
33(20) Misrepresentation by the individual of time worked
34or work carried out that results in the individual receiving
35unearned wages or unearned benefits.
-3-1 Sec. 3. Section 96.6, subsection 2, Code 2019, is amended
2to read as follows:
32. Initial determination. A representative designated by
4the director shall promptly notify all interested parties to
5the claim of its filing, and the parties have ten days from
6the date of mailing issuing the notice of the filing of the
7claim by ordinary mail to the last known address to protest
8payment of benefits to the claimant. All interested parties
9shall select a format as specified by the department to receive
10such notifications. The representative shall promptly examine
11the claim and any protest, take the initiative to ascertain
12relevant information concerning the claim, and, on the basis of
13the facts found by the representative, shall determine whether
14or not the claim is valid, the week with respect to which
15benefits shall commence, the weekly benefit amount payable
16and its maximum duration, and whether any disqualification
17shall be imposed. The claimant has the burden of proving
18that the claimant meets the basic eligibility conditions of
19section 96.4. The employer has the burden of proving that the
20claimant is disqualified for benefits pursuant to section 96.5,
21except as provided by this subsection. The claimant has the
22initial burden to produce evidence showing that the claimant
23is not disqualified for benefits in cases involving section
2496.5, subsections 10 and 11, and has the burden of proving
25that a voluntary quit pursuant to section 96.5, subsection 1,
26was for good cause attributable to the employer and that the
27claimant is not disqualified for benefits in cases involving
28section 96.5, subsection 1, paragraphs “a” through “h”. Unless
29the claimant or other interested party, after notification or
30within ten calendar days after notification was mailed issued
31 to the claimant’s last known address, files an appeal from the
32decision, the decision is final and benefits shall be paid or
33denied in accordance with the decision. If an administrative
34law judge affirms a decision of the representative, or the
35appeal board affirms a decision of the administrative law judge
-4-1allowing benefits, the benefits shall be paid regardless of
2any appeal which is thereafter taken, but if the decision is
3finally reversed, no employer’s account shall be charged with
4benefits so paid and this relief from charges shall apply to
5both contributory and reimbursable employers, notwithstanding
6section 96.8, subsection 5.
7 Sec. 4. Section 96.14, subsection 16, Code 2019, is amended
8to read as follows:
916. Injunction upon nonpayment. Any employer or employing
10unit refusing or failing to make and file required reports,
11records, or to pay any contributions, interest, or penalty
12under the provisions of this chapter, after ten days’ written
13notice sent by the department to the employer’s or employing
14unit’s last known address by certified mail, may be enjoined
15from operating any business in the state while in violation
16of this chapter upon the complaint of the department in the
17district court of a county in which the employer or employing
18unit has or had a place of business within the state, and
19any temporary injunction enjoining the continuance of such
20business may be granted without notice and without a bond being
21required from the department. Such injunction may enjoin any
22employer or employing unit from operating a business unit
23until the delinquent contributions, interest, or penalties
24shall have been made and filed or paid; or the employer shall
25have furnished a good and sufficient bond conditioned upon the
26payment of such delinquencies in such an amount and containing
27such terms as may be determined by the court; or the employer
28has entered into a plan for the liquidation of the business to
29pay for such delinquencies as the court may approve, provided
30that such injunction may be reinstated upon the employer’s
31failure to comply with the terms of said plan.
32 Sec. 5. Section 96.40, subsection 2, paragraphs e and i,
33Code 2019, are amended to read as follows:
34e. The reduction in hours and corresponding reduction in
35wages must be applied equally to all employees in the affected
-5-1unit for each week reported.
2i. The duration of the shared work plan will not exceed
3fifty-two weeks. The employer shall only be authorized one
4plan during a twenty-four-month period.
5 Sec. 6. Section 96.40, subsection 2, Code 2019, is amended
6by adding the following new paragraph:
7 NEW PARAGRAPH. l. The employer shall notify all affected
8employees and receive consent from each participating employee
9before the plan is authorized.
10 Sec. 7. Section 96.40, Code 2019, is amended by adding the
11following new subsection:
12 NEW SUBSECTION. 4A. An employer may file an appeal in
13writing of a denial or approval of a plan or revocation of an
14approved plan by the department within thirty days from the
15date of the decision.
16 Sec. 8. Section 96.40, subsection 9, paragraph b, Code 2019,
17is amended to read as follows:
18b. An employer may provide as part of the plan a training
19program the employees may attend during the hours that have
20been reduced. Such a training program may include a training
21program funded under the Workforce Investment Innovation and
22Opportunity Act, of 1998, Pub.L. No.105-220 113-128. If the
23employer is able to show that the training program will provide
24a substantive increase in the workplace and employability
25skills of the employee so as to reduce the potential for
26future periods of unemployment, the department shall relieve
27the employer of charges for benefits paid to the individual
28attending training under the plan. The employee may attend
29the training at the work site utilizing internal resources,
30provided the training is outside of the normal course of
31employment, or in conjunction with an educational institution.
32 Sec. 9. EFFECTIVE DATE. This division of this Act, being
33deemed of immediate importance, takes effect upon enactment.
34 Sec. 10. APPLICABILITY.
351. The following applies to any week of unemployment
-6-1benefits beginning on or after the first Sunday after the
2effective date of this division of this Act:
3The section of this Act amending section 96.3.
42. The following apply to all voluntary shared work plans
5approved by the department of workforce development on or after
6the effective date of this division of this Act:
7a. The section of this division of this Act amending section
896.40, subsection 2, paragraphs “e” and “i”.
9b. The section of this division of this Act enacting section
1096.40, subsection 2, paragraph “l”.
11c. The section of this division of this Act enacting section
1296.40, subsection 4A.
13d. The section of this division of this Act amending section
1496.40, subsection 9, paragraph “b”.
15DIVISION II
16Unemployment insurance tax and benefits — 2020
17 Sec. 11. Section 96.3, subsection 4, Code 2019, is amended
18to read as follows:
194. Determination of benefits. With respect to benefit years
20beginning on or after July 1, 1983, an An eligible individual’s
21weekly benefit amount for a week of total unemployment shall be
22an amount equal to the following fractions of the individual’s
23total wages in insured work paid during that quarter of
24the individual’s base period in which such total wages were
25highest; the director shall determine annually a maximum weekly
26benefit amount equal to the following percentages, to vary with
27the number of based on whether the individual has dependents,
28of the statewide average weekly wage paid to employees in
29insured work which shall be effective the first day of the
30first full week in July: July.
31If theThe weeklySubject to
32 number ofbenefit amountthe following
33 dependents shall equalmaximum
34 is:the followingpercentage of
35fraction of highthe statewide
-7-1quarter wages:average
2weekly wage:
3 01/2353%
4 1 or more1/2255% 57%
5 21/2157%
6 31/2060%
7 4 or more1/1965%
8The maximum weekly benefit amount, if not a multiple of one
9dollar, shall be rounded to the lower multiple of one dollar.
10However, until such time as sixty-five percent of the statewide
11average weekly wage exceeds one hundred ninety dollars, the
12 The maximum weekly benefit amounts shall be determined using
13the statewide average weekly wage computed on the basis of
14wages reported for the current calendar year 1981. As used in
15this section “dependent” means dependent as defined in section
16422.12, subsection 1, paragraph “a”, as if the individual
17claimant was a taxpayer, except that an individual claimant’s
18nonworking spouse shall be deemed to be a dependent under this
19section. “Nonworking spouse” means a spouse who does not earn
20more than one hundred twenty dollars in gross wages in one
21week.
22 Sec. 12. Section 96.4, Code 2019, is amended by adding the
23following new subsection:
24 NEW SUBSECTION. 8. The individual has satisfied a single
25one-week waiting period during the individual’s benefit year.
26To satisfy the one-week waiting period, the individual, with
27respect to the week in question, must be eligible for benefits
28from this state, but must not have received benefits from this
29state, and must not be eligible for benefits from another
30state.
31 Sec. 13. Section 96.7, subsection 2, paragraph c,
32subparagraph (2), Code 2019, is amended to read as follows:
33(2) A construction or landscaping contributory employer,
34as defined under rules adopted by the department pursuant to
35chapter 17A, which is newly subject to this chapter shall pay
-8-1contributions at the rate specified in the twenty-first benefit
2ratio rank until the end of the calendar year in which the
3employer’s account has been chargeable with benefits for twelve
4consecutive calendar quarters.
5 Sec. 14. Section 96.19, subsection 20, unnumbered paragraph
61, Code 2019, is amended to read as follows:
7“Exhaustee” means an individual who, with respect to any
8week of unemployment in the individual’s eligibility period
9has received, prior to such week, all of the regular benefits
10that were available to the individual under this chapter or any
11other state law, including dependents’ allowances and benefits
12payable to federal civilian employees and former armed forces
13personnel under 5 U.S.C. ch.85, in the individual’s current
14benefit year that includes such weeks. Provided that for the
15purposes of this subsection an individual shall be deemed to
16have received all of the regular benefits that were available
17to the individual, although as a result of a pending appeal
18with respect to wages that were not considered in the original
19monetary determination in the individual’s benefit year the
20individual may subsequently be determined to be entitled to add
21regular benefits, or:
22 Sec. 15. EFFECTIVE DATE. This division of this Act takes
23effect July 1, 2020.
24 Sec. 16. APPLICABILITY.
251. The following apply to any week of unemployment benefits
26beginning on or after July 5, 2020:
27a. The section of this division of this Act amending section
2896.3, subsection 4.
29b. The section of this division of this Act amending section
3096.19, subsection 20.
312. The following applies to any new claim of unemployment
32benefits with an effective date on or after July 5, 2020:
33The section of this division of this Act enacting section
3496.4, subsection 8.
35EXPLANATION
-9-1The inclusion of this explanation does not constitute agreement with
2the explanation’s substance by the members of the general assembly.
3This bill relates to unemployment insurance under Code
4chapter 96.
5DIVISION I. This division strikes language requiring
6the director of the department of workforce development
7to recompute wage credits for purposes of calculating an
8individual’s maximum total amount of unemployment benefits
9payable during a benefit year. The stricken language applied
10to an individual who is laid off due to the individual’s
11employer going out of business at the factory, establishment,
12or other premises at which the individual was last employed by
13crediting the individual’s account with one-half, instead of
14one-third, of the wages for insured work paid to the individual
15during the individual’s base period. The division also strikes
16language providing an additional 13 weeks of benefits to such
17individuals if the state “off” indicator, which relates to
18the rate of insured unemployment in the state, is in effect.
19This provision applies to any week of unemployment benefits
20beginning on or after the first Sunday after the effective date
21of the division.
22Under current law, an individual is disqualified from
23eligibility for unemployment benefits if the department of
24workforce development finds that the individual has been
25discharged for misconduct in connection with the individual’s
26employment. “Misconduct” is defined by the department by rule.
27The division provides that “misconduct” means a deliberate
28act or omission by an employee that constitutes a material
29breach of the duties and obligations arising out of the
30employee’s contract of employment. “Misconduct” is limited
31to conduct evincing such willful or wanton disregard of an
32employer’s interest as is found in deliberate violation or
33disregard of standards of behavior which the employer has the
34right to expect of employees, or in carelessness or negligence
35of such degree of recurrence as to manifest equal culpability,
-10-1wrongful intent or evil design, or to show an intentional
2and substantial disregard of the employer’s interests or
3of the employee’s duties and obligations to the employer.
4The division includes a nonexclusive list of behaviors that
5constitute misconduct.
6The division strikes language providing that notifications
7of interested parties that a claim for unemployment benefits
8has been made be sent by ordinary mail. The division instead
9provides that such notifications shall be in a format as
10specified by the department selected by the parties.
11The division provides that an employer or employing unit
12refusing or failing to make and file required records is
13subject to a possible injunction by the department for the
14violation.
15The division modifies a reference to plans for liquidation
16of deficiencies under Code chapter 96 by an employer or
17employing unit to specify that such a plan is for the
18liquidation of a business to pay for such deficiencies.
19The division modifies conditions for approval of a voluntary
20shared work program by the department. The division provides
21that a reduction in hours and corresponding reduction in wages
22that must be applied equally to all employees in the affected
23unit must be applied equally for each week reported. The
24division provides that an employer shall only be authorized
25one plan during a 24-month period. The division requires
26an employer to notify all affected employees and receive
27consent from each participating employee before the plan is
28authorized. The division also permits an employer to file
29an appeal in writing of a denial or approval of a plan or
30revocation of an approved plan by the department within 30 days
31from the date of the decision and replaces a reference to the
32federal Workforce Investment Act of 1998 with a reference to
33the federal Workforce Innovation and Opportunity Act. These
34provisions apply to all voluntary shared work plans approved
35by the department of workforce development on or after the
-11-1effective date of the division.
2The division takes effect upon enactment.
3DIVISION II. This division strikes language providing that
4an eligible individual’s maximum weekly benefit amount varies
5with the number of dependents the individual has. The division
6instead provides that an individual with dependents is subject
7to a maximum of 57 percent of the statewide average weekly
8wage. The division strikes language defining “dependent”.
9The division strikes additional obsolete language. These
10provisions apply to any week of unemployment benefits beginning
11on or after July 5, 2020.
12The division provides that in order to be eligible for
13unemployment benefits, an individual must satisfy a single
14one-week waiting period during the individual’s benefit year.
15To satisfy the one-week waiting period, the individual, with
16respect to the week in question, must be eligible for benefits
17from this state, but must not have received benefits from this
18state, and must not be eligible for benefits from another
19state. This provision applies to any new claim of unemployment
20benefits with an effective date on or after July 5, 2020.
21The division provides that a landscaping contributory
22employer, as defined by the department by rule, which is newly
23subject to Code chapter 96 shall pay contributions at the rate
24specified in the twenty-first benefit ratio rank until the end
25of the calendar year in which the employer’s account has been
26chargeable with benefits for 12 consecutive calendar quarters.
27The division takes effect July 1, 2020.
-12-je/rn
2effective date and applicability provisions.
3BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1DIVISION I
2Unemployment insurance tax and benefits — 2019
3 Section 1. Section 96.3, subsection 5, paragraph a, Code
42019, is amended to read as follows:
5a. Duration of benefits. The maximum total amount of
6benefits payable to an eligible individual during a benefit
7year shall not exceed the total of the wage credits accrued
8to the individual’s account during the individual’s base
9period, or twenty-six times the individual’s weekly benefit
10amount, whichever is the lesser. The director shall maintain
11a separate account for each individual who earns wages in
12insured work. The director shall compute wage credits for
13each individual by crediting the individual’s account with
14one-third of the wages for insured work paid to the individual
15during the individual’s base period. However, the director
16shall recompute wage credits for an individual who is laid
17off due to the individual’s employer going out of business at
18the factory, establishment, or other premises at which the
19individual was last employed, by crediting the individual’s
20account with one-half, instead of one-third, of the wages for
21insured work paid to the individual during the individual’s
22base period. Benefits paid to an eligible individual shall
23be charged against the base period wage credits in the
24individual’s account which have not been previously charged,
25in the inverse chronological order as the wages on which the
26wage credits are based were paid. However if the state “off”
27indicator is in effect and if the individual is laid off due to
28the individual’s employer going out of business at the factory,
29establishment, or other premises at which the individual was
30last employed, the maximum benefits payable shall be extended
31to thirty-nine times the individual’s weekly benefit amount,
32but not to exceed the total of the wage credits accrued to the
33individual’s account.
34 Sec. 2. Section 96.5, subsection 2, Code 2019, is amended by
35adding the following new paragraph:
-1-1 NEW PARAGRAPH. d. For purposes of this subsection,
2“misconduct” means a deliberate act or omission by an
3employee that constitutes a material breach of the duties
4and obligations arising out of the employee’s contract of
5employment. “Misconduct” is limited to conduct evincing such
6willful or wanton disregard of an employer’s interest as
7is found in deliberate violation or disregard of standards
8of behavior which the employer has the right to expect of
9employees, or in carelessness or negligence of such degree of
10recurrence as to manifest equal culpability, wrongful intent
11or evil design, or to show an intentional and substantial
12disregard of the employer’s interests or of the employee’s
13duties and obligations to the employer. “Misconduct” includes
14but is not limited to all of the following:
15(1) Falsification by the individual of an employment
16application to obtain employment.
17(2) Knowing violation by the individual of a reasonable and
18uniformly enforced rule of an employer.
19(3) Damage of the employer’s property through willful
20negligence by the individual.
21(4) Refusal by the individual to obey reasonable
22instructions of the employer.
23(5) Disobedience, or manifestation of an intent to disobey,
24reasonable instructions of the employer by the individual.
25(6) Lack of truthfulness or candor with the employer by the
26individual.
27(7) Conduct not in the best interest of the employer by the
28individual.
29(8) Consumption by the individual of alcohol, illegal or
30nonprescribed prescription drugs, or an impairing substance
31in an off-label manner, or a combination of such substances,
32on the employer’s premises in violation of the employer’s
33employment policies.
34(9) Reporting to work under the influence of alcohol,
35illegal or nonprescribed prescription drugs, or an impairing
-2-1substance used in an off-label manner, or a combination of such
2substances, in violation of the employer’s employment policies,
3unless the individual is compelled to report to work by the
4employer outside of scheduled or on-call working hours.
5(10) Conduct by the individual that endangers the personal
6safety of the individual or coworkers.
7(11) Incarceration of the individual that results in
8missing work for an act for which one could reasonably expect
9to be incarcerated.
10(12) Incarceration of the individual following
11conviction of a misdemeanor or felony by a court of competent
12jurisdiction.
13(13) Any breach of duty in connection with work which is
14reasonably owed the employer by the individual.
15(14) Excessive unexcused tardiness or absenteeism.
16(15) Falsification by the individual of any work-related
17report, task, or job that could expose the employer or
18coworkers to legal liability or sanction for violation of
19health or safety laws.
20(16) Failure by the individual to maintain any license,
21registration, or certification that is reasonably required by
22the employer, that is required by law, or that is a functional
23requirement to perform the individual’s regular job duties,
24unless the failure is not within the control of the individual.
25(17) Conduct by the individual that is defamatory toward the
26employer or an employee of the employer if such conduct is not
27protected under state or federal law.
28(18) Conduct by the individual creating or attempting to
29create dissention or animus against the employer or a coworker
30if such conduct is not protected under state or federal law.
31(19) Theft of funds or property of the employer or a
32coworker by the individual.
33(20) Misrepresentation by the individual of time worked
34or work carried out that results in the individual receiving
35unearned wages or unearned benefits.
-3-1 Sec. 3. Section 96.6, subsection 2, Code 2019, is amended
2to read as follows:
32. Initial determination. A representative designated by
4the director shall promptly notify all interested parties to
5the claim of its filing, and the parties have ten days from
6the date of mailing issuing the notice of the filing of the
7claim by ordinary mail to the last known address to protest
8payment of benefits to the claimant. All interested parties
9shall select a format as specified by the department to receive
10such notifications. The representative shall promptly examine
11the claim and any protest, take the initiative to ascertain
12relevant information concerning the claim, and, on the basis of
13the facts found by the representative, shall determine whether
14or not the claim is valid, the week with respect to which
15benefits shall commence, the weekly benefit amount payable
16and its maximum duration, and whether any disqualification
17shall be imposed. The claimant has the burden of proving
18that the claimant meets the basic eligibility conditions of
19section 96.4. The employer has the burden of proving that the
20claimant is disqualified for benefits pursuant to section 96.5,
21except as provided by this subsection. The claimant has the
22initial burden to produce evidence showing that the claimant
23is not disqualified for benefits in cases involving section
2496.5, subsections 10 and 11, and has the burden of proving
25that a voluntary quit pursuant to section 96.5, subsection 1,
26was for good cause attributable to the employer and that the
27claimant is not disqualified for benefits in cases involving
28section 96.5, subsection 1, paragraphs “a” through “h”. Unless
29the claimant or other interested party, after notification or
30within ten calendar days after notification was mailed issued
31 to the claimant’s last known address, files an appeal from the
32decision, the decision is final and benefits shall be paid or
33denied in accordance with the decision. If an administrative
34law judge affirms a decision of the representative, or the
35appeal board affirms a decision of the administrative law judge
-4-1allowing benefits, the benefits shall be paid regardless of
2any appeal which is thereafter taken, but if the decision is
3finally reversed, no employer’s account shall be charged with
4benefits so paid and this relief from charges shall apply to
5both contributory and reimbursable employers, notwithstanding
6section 96.8, subsection 5.
7 Sec. 4. Section 96.14, subsection 16, Code 2019, is amended
8to read as follows:
916. Injunction upon nonpayment. Any employer or employing
10unit refusing or failing to make and file required reports,
11records, or to pay any contributions, interest, or penalty
12under the provisions of this chapter, after ten days’ written
13notice sent by the department to the employer’s or employing
14unit’s last known address by certified mail, may be enjoined
15from operating any business in the state while in violation
16of this chapter upon the complaint of the department in the
17district court of a county in which the employer or employing
18unit has or had a place of business within the state, and
19any temporary injunction enjoining the continuance of such
20business may be granted without notice and without a bond being
21required from the department. Such injunction may enjoin any
22employer or employing unit from operating a business unit
23until the delinquent contributions, interest, or penalties
24shall have been made and filed or paid; or the employer shall
25have furnished a good and sufficient bond conditioned upon the
26payment of such delinquencies in such an amount and containing
27such terms as may be determined by the court; or the employer
28has entered into a plan for the liquidation of the business to
29pay for such delinquencies as the court may approve, provided
30that such injunction may be reinstated upon the employer’s
31failure to comply with the terms of said plan.
32 Sec. 5. Section 96.40, subsection 2, paragraphs e and i,
33Code 2019, are amended to read as follows:
34e. The reduction in hours and corresponding reduction in
35wages must be applied equally to all employees in the affected
-5-1unit for each week reported.
2i. The duration of the shared work plan will not exceed
3fifty-two weeks. The employer shall only be authorized one
4plan during a twenty-four-month period.
5 Sec. 6. Section 96.40, subsection 2, Code 2019, is amended
6by adding the following new paragraph:
7 NEW PARAGRAPH. l. The employer shall notify all affected
8employees and receive consent from each participating employee
9before the plan is authorized.
10 Sec. 7. Section 96.40, Code 2019, is amended by adding the
11following new subsection:
12 NEW SUBSECTION. 4A. An employer may file an appeal in
13writing of a denial or approval of a plan or revocation of an
14approved plan by the department within thirty days from the
15date of the decision.
16 Sec. 8. Section 96.40, subsection 9, paragraph b, Code 2019,
17is amended to read as follows:
18b. An employer may provide as part of the plan a training
19program the employees may attend during the hours that have
20been reduced. Such a training program may include a training
21program funded under the Workforce Investment Innovation and
22Opportunity Act, of 1998, Pub.L. No.105-220 113-128. If the
23employer is able to show that the training program will provide
24a substantive increase in the workplace and employability
25skills of the employee so as to reduce the potential for
26future periods of unemployment, the department shall relieve
27the employer of charges for benefits paid to the individual
28attending training under the plan. The employee may attend
29the training at the work site utilizing internal resources,
30provided the training is outside of the normal course of
31employment, or in conjunction with an educational institution.
32 Sec. 9. EFFECTIVE DATE. This division of this Act, being
33deemed of immediate importance, takes effect upon enactment.
34 Sec. 10. APPLICABILITY.
351. The following applies to any week of unemployment
-6-1benefits beginning on or after the first Sunday after the
2effective date of this division of this Act:
3The section of this Act amending section 96.3.
42. The following apply to all voluntary shared work plans
5approved by the department of workforce development on or after
6the effective date of this division of this Act:
7a. The section of this division of this Act amending section
896.40, subsection 2, paragraphs “e” and “i”.
9b. The section of this division of this Act enacting section
1096.40, subsection 2, paragraph “l”.
11c. The section of this division of this Act enacting section
1296.40, subsection 4A.
13d. The section of this division of this Act amending section
1496.40, subsection 9, paragraph “b”.
15DIVISION II
16Unemployment insurance tax and benefits — 2020
17 Sec. 11. Section 96.3, subsection 4, Code 2019, is amended
18to read as follows:
194. Determination of benefits. With respect to benefit years
20beginning on or after July 1, 1983, an An eligible individual’s
21weekly benefit amount for a week of total unemployment shall be
22an amount equal to the following fractions of the individual’s
23total wages in insured work paid during that quarter of
24the individual’s base period in which such total wages were
25highest; the director shall determine annually a maximum weekly
26benefit amount equal to the following percentages, to vary with
27the number of based on whether the individual has dependents,
28of the statewide average weekly wage paid to employees in
29insured work which shall be effective the first day of the
30first full week in July: July.
31If theThe weeklySubject to
32 number ofbenefit amountthe following
33 dependents shall equalmaximum
34 is:the followingpercentage of
35fraction of highthe statewide
-7-1quarter wages:average
2weekly wage:
3 01/2353%
4 1 or more1/2255% 57%
5 21/2157%
6 31/2060%
7 4 or more1/1965%
8The maximum weekly benefit amount, if not a multiple of one
9dollar, shall be rounded to the lower multiple of one dollar.
10However, until such time as sixty-five percent of the statewide
11average weekly wage exceeds one hundred ninety dollars, the
12 The maximum weekly benefit amounts shall be determined using
13the statewide average weekly wage computed on the basis of
14wages reported for the current calendar year 1981. As used in
15this section “dependent” means dependent as defined in section
16422.12, subsection 1, paragraph “a”, as if the individual
17claimant was a taxpayer, except that an individual claimant’s
18nonworking spouse shall be deemed to be a dependent under this
19section. “Nonworking spouse” means a spouse who does not earn
20more than one hundred twenty dollars in gross wages in one
21week.
22 Sec. 12. Section 96.4, Code 2019, is amended by adding the
23following new subsection:
24 NEW SUBSECTION. 8. The individual has satisfied a single
25one-week waiting period during the individual’s benefit year.
26To satisfy the one-week waiting period, the individual, with
27respect to the week in question, must be eligible for benefits
28from this state, but must not have received benefits from this
29state, and must not be eligible for benefits from another
30state.
31 Sec. 13. Section 96.7, subsection 2, paragraph c,
32subparagraph (2), Code 2019, is amended to read as follows:
33(2) A construction or landscaping contributory employer,
34as defined under rules adopted by the department pursuant to
35chapter 17A, which is newly subject to this chapter shall pay
-8-1contributions at the rate specified in the twenty-first benefit
2ratio rank until the end of the calendar year in which the
3employer’s account has been chargeable with benefits for twelve
4consecutive calendar quarters.
5 Sec. 14. Section 96.19, subsection 20, unnumbered paragraph
61, Code 2019, is amended to read as follows:
7“Exhaustee” means an individual who, with respect to any
8week of unemployment in the individual’s eligibility period
9has received, prior to such week, all of the regular benefits
10that were available to the individual under this chapter or any
11other state law, including dependents’ allowances and benefits
12payable to federal civilian employees and former armed forces
13personnel under 5 U.S.C. ch.85, in the individual’s current
14benefit year that includes such weeks. Provided that for the
15purposes of this subsection an individual shall be deemed to
16have received all of the regular benefits that were available
17to the individual, although as a result of a pending appeal
18with respect to wages that were not considered in the original
19monetary determination in the individual’s benefit year the
20individual may subsequently be determined to be entitled to add
21regular benefits, or:
22 Sec. 15. EFFECTIVE DATE. This division of this Act takes
23effect July 1, 2020.
24 Sec. 16. APPLICABILITY.
251. The following apply to any week of unemployment benefits
26beginning on or after July 5, 2020:
27a. The section of this division of this Act amending section
2896.3, subsection 4.
29b. The section of this division of this Act amending section
3096.19, subsection 20.
312. The following applies to any new claim of unemployment
32benefits with an effective date on or after July 5, 2020:
33The section of this division of this Act enacting section
3496.4, subsection 8.
35EXPLANATION
-9-1The inclusion of this explanation does not constitute agreement with
2the explanation’s substance by the members of the general assembly.
3This bill relates to unemployment insurance under Code
4chapter 96.
5DIVISION I. This division strikes language requiring
6the director of the department of workforce development
7to recompute wage credits for purposes of calculating an
8individual’s maximum total amount of unemployment benefits
9payable during a benefit year. The stricken language applied
10to an individual who is laid off due to the individual’s
11employer going out of business at the factory, establishment,
12or other premises at which the individual was last employed by
13crediting the individual’s account with one-half, instead of
14one-third, of the wages for insured work paid to the individual
15during the individual’s base period. The division also strikes
16language providing an additional 13 weeks of benefits to such
17individuals if the state “off” indicator, which relates to
18the rate of insured unemployment in the state, is in effect.
19This provision applies to any week of unemployment benefits
20beginning on or after the first Sunday after the effective date
21of the division.
22Under current law, an individual is disqualified from
23eligibility for unemployment benefits if the department of
24workforce development finds that the individual has been
25discharged for misconduct in connection with the individual’s
26employment. “Misconduct” is defined by the department by rule.
27The division provides that “misconduct” means a deliberate
28act or omission by an employee that constitutes a material
29breach of the duties and obligations arising out of the
30employee’s contract of employment. “Misconduct” is limited
31to conduct evincing such willful or wanton disregard of an
32employer’s interest as is found in deliberate violation or
33disregard of standards of behavior which the employer has the
34right to expect of employees, or in carelessness or negligence
35of such degree of recurrence as to manifest equal culpability,
-10-1wrongful intent or evil design, or to show an intentional
2and substantial disregard of the employer’s interests or
3of the employee’s duties and obligations to the employer.
4The division includes a nonexclusive list of behaviors that
5constitute misconduct.
6The division strikes language providing that notifications
7of interested parties that a claim for unemployment benefits
8has been made be sent by ordinary mail. The division instead
9provides that such notifications shall be in a format as
10specified by the department selected by the parties.
11The division provides that an employer or employing unit
12refusing or failing to make and file required records is
13subject to a possible injunction by the department for the
14violation.
15The division modifies a reference to plans for liquidation
16of deficiencies under Code chapter 96 by an employer or
17employing unit to specify that such a plan is for the
18liquidation of a business to pay for such deficiencies.
19The division modifies conditions for approval of a voluntary
20shared work program by the department. The division provides
21that a reduction in hours and corresponding reduction in wages
22that must be applied equally to all employees in the affected
23unit must be applied equally for each week reported. The
24division provides that an employer shall only be authorized
25one plan during a 24-month period. The division requires
26an employer to notify all affected employees and receive
27consent from each participating employee before the plan is
28authorized. The division also permits an employer to file
29an appeal in writing of a denial or approval of a plan or
30revocation of an approved plan by the department within 30 days
31from the date of the decision and replaces a reference to the
32federal Workforce Investment Act of 1998 with a reference to
33the federal Workforce Innovation and Opportunity Act. These
34provisions apply to all voluntary shared work plans approved
35by the department of workforce development on or after the
-11-1effective date of the division.
2The division takes effect upon enactment.
3DIVISION II. This division strikes language providing that
4an eligible individual’s maximum weekly benefit amount varies
5with the number of dependents the individual has. The division
6instead provides that an individual with dependents is subject
7to a maximum of 57 percent of the statewide average weekly
8wage. The division strikes language defining “dependent”.
9The division strikes additional obsolete language. These
10provisions apply to any week of unemployment benefits beginning
11on or after July 5, 2020.
12The division provides that in order to be eligible for
13unemployment benefits, an individual must satisfy a single
14one-week waiting period during the individual’s benefit year.
15To satisfy the one-week waiting period, the individual, with
16respect to the week in question, must be eligible for benefits
17from this state, but must not have received benefits from this
18state, and must not be eligible for benefits from another
19state. This provision applies to any new claim of unemployment
20benefits with an effective date on or after July 5, 2020.
21The division provides that a landscaping contributory
22employer, as defined by the department by rule, which is newly
23subject to Code chapter 96 shall pay contributions at the rate
24specified in the twenty-first benefit ratio rank until the end
25of the calendar year in which the employer’s account has been
26chargeable with benefits for 12 consecutive calendar quarters.
27The division takes effect July 1, 2020.
-12-je/rn