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Senate Study Bill 3093 - IntroducedA Bill ForAn Act 1relating to matters under the purview of the state,
2including unemployment benefits and civil torts.
3BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1DIVISION I
2UNEMPLOYMENT INSURANCE
3 Section 1. Section 96.2, Code 2022, is amended to read as
4follows:
596.2 Guide for interpretation.
6As a guide to the interpretation and application of this
7chapter, the public policy of this state is declared to be as
8follows: Economic insecurity due to unemployment is a serious
9menace to negatively impacts the health, morals, and welfare
10of the people of this state Iowa. Involuntary unemployment
11is therefore a subject of general interest and concern which
12requires appropriate action by the legislature to prevent
13its spread and to lighten its burden which now so often
14falls with crushing force upon the unemployed worker and the
15worker’s family. The achievement of social security requires
16protection against this greatest hazard of our economic
17life. This can be provided These undesirable consequences can
18be reduced by encouraging employers to provide more stable
19employment and by the systematic accumulation of funds during
20periods of employment to provide benefits for periods of
21unemployment, thus maintaining purchasing power and limiting
22the serious social consequences of poor relief assistance.
23The legislature, therefore, declares that in its considered
24judgment the public good and the general welfare of the
25citizens of this state require the enactment of this measure,
26under the police powers of the state, for the compulsory
27setting aside of unemployment reserves to be used for the
28benefit of persons. This chapter provides for payment of
29benefits to workers unemployed through no fault of their own.
30The policy herein is intended to encourage stabilization in
31employment, to provide for integrated employment and training
32services in support of state economic development programs, and
33to provide meaningful job training and employment opportunities
34for the unemployed, underemployed, economically disadvantaged,
35dislocated workers, and others with substantial barriers to
-1-1employment. To further this public policy, the state, through
2its department of workforce development, will maintain close
3coordination among all federal, state, and local agencies
4whose missions affect the employment or employability of the
5unemployed and underemployed.
6 Sec. 2. Section 96.3, subsection 5, paragraph a, Code 2022,
7is amended to read as follows:
8a. Duration of benefits. The maximum total amount of
9benefits payable to an eligible individual during a benefit
10year shall not exceed the total of the wage credits accrued to
11the individual’s account during the individual’s base period,
12or twenty-six sixteen times the individual’s weekly benefit
13amount, whichever is the lesser. The director shall maintain
14a separate account for each individual who earns wages in
15insured work. The director shall compute wage credits for
16each individual by crediting the individual’s account with
17one-third of the wages for insured work paid to the individual
18during the individual’s base period. However, the director
19shall recompute wage credits for an individual who is laid
20off due to the individual’s employer going out of business at
21the factory, establishment, or other premises at which the
22individual was last employed, by crediting the individual’s
23account with one-half, instead of one-third, of the wages for
24insured work paid to the individual during the individual’s
25base period. Benefits paid to an eligible individual shall
26be charged against the base period wage credits in the
27individual’s account which have not been previously charged,
28in the inverse chronological order as the wages on which the
29wage credits are based were paid. However if the state “off”
30indicator is in effect and if the individual is laid off due to
31the individual’s employer going out of business at the factory,
32establishment, or other premises at which the individual was
33last employed, the maximum benefits payable shall be extended
34to thirty-nine twenty-six times the individual’s weekly benefit
35amount, but not to exceed the total of the wage credits accrued
-2-1to the individual’s account.
2 Sec. 3. Section 96.4, Code 2022, is amended by adding the
3following new subsection:
4 NEW SUBSECTION. 8. The individual has satisfied a single
5one-week waiting period during the individual’s benefit year.
6To satisfy the one-week waiting period, the individual, with
7respect to the week in question, must otherwise be eligible
8for benefits from this state, must not have received or have
9payable benefits from this state, and must not be eligible for
10benefits from another state.
11 Sec. 4. Section 96.5, subsection 2, Code 2022, is amended by
12adding the following new paragraph:
13 NEW PARAGRAPH. d. For the purposes of this subsection,
14“misconduct” means a deliberate act or omission by an
15employee that constitutes a material breach of the duties
16and obligations arising out of the employee’s contract of
17employment. Misconduct is limited to conduct evincing such
18willful or wanton disregard of an employer’s interest as
19is found in deliberate violation or disregard of standards
20of behavior which the employer has the right to expect of
21employees, or in carelessness or negligence of such degree of
22recurrence as to manifest equal culpability, wrongful intent
23or evil design, or to show an intentional and substantial
24disregard of the employer’s interests or of the employee’s
25duties and obligations to the employer. Misconduct by an
26individual includes but is not limited to all of the following:
27(1) Falsification of the individual’s employment
28application.
29(2) Knowing violation of a reasonable and uniformly
30enforced rule of an employer.
31(3) Intentional damage of an employer’s property.
32(4) Dishonesty to an employer with regard to the
33individual’s employment.
34(5) Consumption of alcohol, illegal or nonprescribed
35prescription drugs, or an impairing substance in a manner
-3-1not directed by the manufacturer, or a combination of such
2substances, on the employer’s premises in violation of the
3employer’s employment policies.
4(6) Reporting to work under the influence of alcohol,
5illegal or nonprescribed prescription drugs, or an impairing
6substance in an off-label manner, or a combination of such
7substances, on the employer’s premises in violation of the
8employer’s employment policies, unless the individual is
9compelled to work by the employer outside of scheduled or
10on-call working hours.
11(7) Conduct that endangers the personal safety of the
12individual, coworkers, or the general public.
13(8) Incarceration for an act for which one could reasonably
14expect to be incarcerated that results in missing work.
15(9) Incarceration as a result of a misdemeanor or felony
16conviction by a court of competent jurisdiction.
17(10) Excessive unexcused tardiness or absenteeism.
18(11) Falsification of any work-related report, task, or job
19that could expose the employer or coworkers to legal liability
20or sanction for violation of health or safety laws.
21(12) Failure to maintain any license, registration, or
22certification that is reasonably required by the employer or
23by law, or that is a functional requirement to perform the
24individual’s regular job duties, unless the failure is not
25within the control of the individual.
26(13) Conduct that is libelous or slanderous toward an
27employer or an employee of the employer if such conduct is not
28protected under state or federal law.
29(14) Conduct creating or attempting to create dissention or
30animus against the employer or a coworker if such conduct is
31not protected under state or federal law.
32(15) Theft of an employer or coworker’s funds or property.
33(16) Misrepresentation of time worked or work carried out
34that results in the individual receiving unearned wages or
35unearned benefits.
-4-1 Sec. 5. Section 96.5, subsection 3, paragraph a,
2subparagraph (1), subparagraph divisions (a), (b), (c), and
3(d), Code 2022, are amended to read as follows:
4(a) One hundred percent, if the work is offered during the
5first five weeks week of unemployment.
6(b) Seventy-five Ninety percent, if the work is offered
7during the sixth second through the twelfth third week of
8unemployment.
9(c) Seventy Eighty percent, if the work is offered during
10the thirteenth fourth through the eighteenth fifth week of
11unemployment.
12(d) Sixty-five Seventy percent, if the work is offered
13after during the eighteenth sixth through the eighth week of
14unemployment.
15 Sec. 6. Section 96.5, subsection 3, paragraph a,
16subparagraph (1), Code 2022, is amended by adding the following
17new subparagraph division:
18 NEW SUBPARAGRAPH DIVISION. (e) Sixty percent, if the work
19is offered after the eighth week of unemployment.
20 Sec. 7. Section 96.6, subsection 3, paragraph b, Code 2022,
21is amended to read as follows:
22b. Appeals from the initial determination shall be heard
23by an administrative law judge employed by the department.
24An administrative law judge’s decision may be appealed by
25any party to the employment appeal board created in section
2610A.601. The decision of the appeal board is final agency
27action and an appeal of the decision shall be made or directly
28to the district court.
29DIVISION II
30TORT liability
31 Sec. 8. Section 147.136A, subsection 1, paragraph b, Code
322022, is amended to read as follows:
33b. (1) “Noneconomic damages” means damages arising from
34pain, suffering, inconvenience, physical impairment, mental
35anguish, emotional pain and suffering, loss of chance, loss of
-5-1consortium, or any other nonpecuniary damages.
2(2) “Noneconomic damages” does not include the loss of
3dependent care, including the loss of child care, due to the
4death of or severe injury to a spouse or parent who is the
5primary caregiver of a child under the age of eighteen or a
6disabled adult. Such damages shall be considered economic
7damages.
8 Sec. 9. Section 147.136A, subsection 2, Code 2022, is
9amended to read as follows:
102. The total amount recoverable in any civil action for
11noneconomic damages for personal injury or death, whether in
12tort, contract, or otherwise, against a health care provider
13shall be limited to two hundred fifty thousand dollars for any
14occurrence resulting in injury or death of a patient regardless
15of the number of plaintiffs, derivative claims, theories of
16liability, or defendants in the civil action, shall not exceed
17two hundred fifty thousand dollars unless the jury determines
18that there is a substantial or permanent loss or impairment of
19a bodily function, substantial disfigurement, or death, which
20warrants a finding that imposition of such a limitation would
21deprive the plaintiff of just compensation for the injuries
22sustained, in which case the amount recoverable shall not
23exceed one million dollars.
24 Sec. 10. NEW SECTION. 668.12A Liability for employee
25negligence in actions involving commercial motor vehicles.
261. In a civil action involving a commercial motor vehicle
27as defined in section 321.1, if an employer who is a defendant
28in the action complies with subsection 2, the employer’s
29liability for damages caused by the negligence of an employee
30acting within the course and scope of employment shall be based
31solely on respondeat superior and not on the employer’s direct
32negligence in hiring, training, supervising, or trusting the
33employee, or other similar claim that the employer’s negligence
34enabled the employee’s harmful conduct.
352. On motion of an employer who is the defendant in
-6-1a civil action involving a commercial motor vehicle, and
2notwithstanding section 671A.2, a trial court shall dismiss
3from the civil action any claim of the employer’s direct
4negligence in hiring, training, supervising, or trusting an
5employee, or other claim of direct negligence on the part of
6the employer for the employee’s harmful conduct, or other
7similar claims, if the employer stipulates that at the time
8of the event that caused the damages that are the subject of
9the action that the person whose negligence is alleged to have
10caused the damages was the employer’s employee and was acting
11within the course and scope of employment with the employer.
123. If an employer makes the stipulations in subsection 2
13with respect to an employee, and the employee’s negligence is
14found to have caused or contributed to causing the damages, the
15employer shall be adjudged vicariously liable for the resulting
16damages.
17 Sec. 11. NEW SECTION. 668.15A Noneconomic damages —
18commercial motor vehicle owners or operators.
191. As used in this section:
20a. “Commercial motor vehicle” means the same as defined in
21section 321.1.
22b. “Noneconomic damages” means damages arising from
23pain, suffering, inconvenience, physical impairment, mental
24anguish, emotional pain and suffering, loss of chance, loss of
25consortium, or any other nonpecuniary damages.
26c. “Occurrence” means the event, incident, or happening,
27and the acts or omissions incident thereto, which proximately
28caused injuries or damages for which recovery is claimed.
292. The total amount recoverable in any civil action for
30noneconomic damages for personal injury or death, whether in
31tort, contract, or otherwise, against the owner or operator
32of a commercial motor vehicle shall be limited to one million
33dollars, regardless of the number of derivative claims,
34theories of liability, or defendants in the civil action.
35 Sec. 12. Section 668A.1, Code 2022, is amended by adding the
-7-1following new subsection:
2 NEW SUBSECTION. 2A. A claim for punitive or exemplary
3damages shall not be included in any initial claim for relief.
4A claim for punitive or exemplary damages may be allowed by
5amendment to the pleadings only after the exchange of initial
6disclosures pursuant to the Iowa rules of civil procedure and
7after the plaintiff establishes prima facie proof of a triable
8issue. After the plaintiff establishes the existence of a
9triable issue, the court may, in its discretion and subject
10to subsection 3, allow discovery on the issue of punitive or
11exemplary damages as the court deems appropriate.
12EXPLANATION
13The inclusion of this explanation does not constitute agreement with
14the explanation’s substance by the members of the general assembly.
15This bill relates to matters under the purview of the state,
16including unemployment benefits and civil torts.
17DIVISION I — UNEMPLOYMENT INSURANCE. This division of the
18bill amends the Iowa employment security law concerning state
19unemployment insurance benefits.
20The bill revises the language of Code section 96.2
21concerning guidance for interpreting Code chapter 96. The bill
22changes the default maximum benefits payable to an individual
23eligible to receive unemployment compensation to the lesser of
24total wage credits accrued to the individual’s account during
25the individual’s base period or 16 times the individual’s
26weekly benefit amount. Under current law, the default maximum
27is the lesser of total wage credits accrued to the individual’s
28account during the individual’s base period or 26 times the
29individual’s weekly benefit amount.
30The bill changes the maximum benefits payable to an
31individual eligible to receive unemployment compensation, when
32the state “off” indicator is in effect and the individual
33was laid off due to the individual’s employer going out of
34business at the factory, establishment, or other premises at
35which the individual was last employed, to the lesser of total
-8-1wage credits accrued to the individual’s account or 26 times
2the individual’s weekly benefit amount. Under current law,
3the maximum is the lesser of total wage credits accrued to
4the individual’s account or 39 times the individual’s weekly
5benefit amount.
6The bill requires an individual to first satisfy a single
7one-week waiting period during the individual’s benefit year
8prior to receiving unemployment compensation. To satisfy the
9waiting period, the individual, with respect to the week in
10question, must otherwise be eligible for unemployment benefits
11from this state, must not have received or have payable
12unemployment benefits from this state, and must not be eligible
13for unemployment benefits from another state.
14The bill defines “misconduct” for the purposes of
15unemployment benefit determinations as a deliberate act or
16omission by an employee that constitutes a material breach
17of the duties and obligations arising out of the employee’s
18contract of employment. “Misconduct” is limited to conduct
19evincing such willful or wanton disregard of an employer’s
20interest as is found in deliberate violation or disregard
21of standards of behavior which the employer has the right
22to expect of employees, or in carelessness or negligence of
23such degree of recurrence as to manifest equal culpability,
24wrongful intent or evil design, or to show an intentional and
25substantial disregard of the employer’s interests or of the
26employee’s duties and obligations to the employer. The bill
27also provides several examples of what constitutes “misconduct”
28by an individual.
29The bill modifies the percentages of an individual’s
30average weekly wage for insured work paid to the individual
31during the quarter of the individual’s base period in which
32the individual’s wages were highest, which the gross weekly
33wages for new work by the individual must equal or exceed
34for the new work to be considered suitable. Under current
35law, if an individual fails without good cause to apply for
-9-1or accept suitable work, the individual is disqualified from
2eligibility for unemployment benefits. The percentages under
3current law are 100 percent for work offered during the first
4five weeks of unemployment; 75 percent for work offered during
5the sixth through the twelfth week of unemployment; 70 percent
6for work offered during the thirteenth through the eighteenth
7week of unemployment; and 65 percent for work offered after
8the eighteenth week of unemployment. Under the bill, the
9percentages are 100 percent for work offered during the first
10week of unemployment; 90 percent for work offered during the
11second through the third week of unemployment; 80 percent
12for work offered during the fourth through the fifth week of
13unemployment; 70 percent for work offered during the sixth
14through the eighth week of unemployment; and 60 percent for
15work offered after the eighth week of unemployment.
16The bill provides that a decision of an administrative law
17judge may be appealed by any party to the unemployment appeal
18board or directly to the district court. Under current law,
19such appeals may only be made to the employment appeal board
20and then to the district court.
21The bill strikes language providing that a finding of
22fact or law, judgment, conclusion, or final order regarding
23a determination of eligibility for unemployment benefits is
24binding only upon the parties to proceedings and is not binding
25upon any other proceedings or action involving the same facts
26brought by the same or related parties before the division of
27labor services, division of workers’ compensation, other state
28agency, arbitrator, court, or judge of this state or the United
29States.
30DIVISION II — TORT LIABILITY. This division of the bill
31relates to tort liability, including noneconomic damage
32awards against health care providers, employer liability for
33an employee’s torts involving a commercial motor vehicle,
34noneconomic damages available against an owner or operator
35of a commercial motor vehicle, and pleading and discovery
-10-1requirements related to punitive damages.
2Current law provides that in a civil action brought by a
3patient against a health care provider, the maximum amount of
4noneconomic damages that the patient may recover is $250,000,
5unless the jury determines that there is a substantial or
6permanent loss or impairment of a bodily function, substantial
7disfigurement, or death, which warrants a finding that
8imposition of such a limitation would deprive the plaintiff
9of just compensation for the injuries sustained. In such a
10case, there is no cap on the amount of noneconomic damages
11that a patient may recover. The bill makes two changes to
12current law. First, the bill establishes that the definition
13of nonecomonic damages does not include the loss of dependent
14care due to the death of or severe injury to a spouse or parent
15who is the primary caregiver of a child or disabled adult.
16Instead, such damages are economic damages. Second, the bill
17provides a $1 million cap on noneconomic damages when the jury
18finds that there is substantial or permanent loss or impairment
19of a bodily function, substantial disfigurement, or death which
20warrants exceeding the $250,000 cap.
21The bill provides that an employer’s liability who is a
22defendant in a civil action involving a commercial motor for
23damages caused by negligence of an employee acting within the
24scope and course of employment shall be based on respondeat
25superior. Upon motion of an employer, and notwithstanding
26Code section 671A.2 (limitations on liability protection for
27negligent hiring), a trial court shall dismiss from the action
28any claim of the employer’s direct negligence in hiring,
29training, supervising, or trusting an employee, or other claim
30of direct negligence on the part of the employer for the
31employee’s harmful conduct, or other similar claims, if the
32employer stipulates that at the time of the event that caused
33the damages that the person whose negligence is the basis of
34the action is the employer’s employee and the employee was
35acting within the course and scope of employment with the
-11-1employer. If an employer makes the stipulation with respect
2to an employee, and the employee’s negligence is found to have
3caused or contributed to causing the damages, the employer
4shall be adjudged vicariously liable for the resulting damages.
5Under current law, an employer is liable for an employee’s
6negligence and may be held responsible for direct negligence
7relating to hiring, training, supervising, trusting an
8employee, or other claims of direct negligence on part of the
9employee’s harmful conduct, subject to certain limitations
10contained in Code chapter 671 (negligent hiring — limitations
11on liability).
12The bill limits the amount of noneconomic damages available
13against the owner or operator of a commercial motor vehicle.
14The division defines “noneconomic damages” to mean damages
15arising from pain, suffering, inconvenience, physical
16impairment, mental anguish, emotional pain and suffering,
17loss of chance, loss of consortium, or any other nonpecuniary
18damages and “occurrence” to mean the event, incident, or
19happening, and the acts or omissions incident thereto, which
20proximately caused injuries or damages for which recovery is
21claimed. The bill provides that the total amount recoverable
22in any civil action for noneconomic damages for personal injury
23or death against the owner or operator of a commercial motor
24vehicle shall be limited to $1 million for any occurrence
25regardless of the number of plaintiffs, derivative claims,
26theories of liability, or defendants in the civil action.
27Under current law, noneconomic damages are unlimited except
28for suits under Code sections 123.92 (dramshop liability) and
29147.136A (medical malpractice).
30The bill provides that a claim for punitive or exemplary
31damages in an action governed by Code section 668A.1 shall
32not be included in any initial claim for relief. A claim for
33punitive or exemplary damages may be allowed by amendment to
34the pleadings only after the exchange of initial disclosures
35and after the plaintiff establishes prima facie proof of a
-12-1triable issue. After the plaintiff establishes the existence
2of a triable issue of punitive or exemplary damages, the court
3may allow additional discovery on the issue of punitive or
4exemplary damages. Under current law and under the bill, the
5mere allegation or assertion of a claim for punitive damages
6cannot form the basis for discovery of the wealth or ability to
7respond in damages on behalf of the party from whom punitive
8damages are claimed until the claimant has established that
9sufficient admissable evidence exists to support a prima facie
10case establishing, by a preponderance of clear, convincing, and
11satisfactory evidence, that the conduct of the defendant from
12which the claim arose constituted willful and wanton disregard
13for the rights or safety of another.
-13-dg/rn
2including unemployment benefits and civil torts.
3BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1DIVISION I
2UNEMPLOYMENT INSURANCE
3 Section 1. Section 96.2, Code 2022, is amended to read as
4follows:
596.2 Guide for interpretation.
6As a guide to the interpretation and application of this
7chapter, the public policy of this state is declared to be as
8follows: Economic insecurity due to unemployment is a serious
9menace to negatively impacts the health, morals, and welfare
10of the people of this state Iowa. Involuntary unemployment
11is therefore a subject of general interest and concern which
12requires appropriate action by the legislature to prevent
13its spread and to lighten its burden which now so often
14falls with crushing force upon the unemployed worker and the
15worker’s family. The achievement of social security requires
16protection against this greatest hazard of our economic
17life. This can be provided These undesirable consequences can
18be reduced by encouraging employers to provide more stable
19employment and by the systematic accumulation of funds during
20periods of employment to provide benefits for periods of
21unemployment, thus maintaining purchasing power and limiting
22the serious social consequences of poor relief assistance.
23The legislature, therefore, declares that in its considered
24judgment the public good and the general welfare of the
25citizens of this state require the enactment of this measure,
26under the police powers of the state, for the compulsory
27setting aside of unemployment reserves to be used for the
28benefit of persons. This chapter provides for payment of
29benefits to workers unemployed through no fault of their own.
30The policy herein is intended to encourage stabilization in
31employment, to provide for integrated employment and training
32services in support of state economic development programs, and
33to provide meaningful job training and employment opportunities
34for the unemployed, underemployed, economically disadvantaged,
35dislocated workers, and others with substantial barriers to
-1-1employment. To further this public policy, the state, through
2its department of workforce development, will maintain close
3coordination among all federal, state, and local agencies
4whose missions affect the employment or employability of the
5unemployed and underemployed.
6 Sec. 2. Section 96.3, subsection 5, paragraph a, Code 2022,
7is amended to read as follows:
8a. Duration of benefits. The maximum total amount of
9benefits payable to an eligible individual during a benefit
10year shall not exceed the total of the wage credits accrued to
11the individual’s account during the individual’s base period,
12or twenty-six sixteen times the individual’s weekly benefit
13amount, whichever is the lesser. The director shall maintain
14a separate account for each individual who earns wages in
15insured work. The director shall compute wage credits for
16each individual by crediting the individual’s account with
17one-third of the wages for insured work paid to the individual
18during the individual’s base period. However, the director
19shall recompute wage credits for an individual who is laid
20off due to the individual’s employer going out of business at
21the factory, establishment, or other premises at which the
22individual was last employed, by crediting the individual’s
23account with one-half, instead of one-third, of the wages for
24insured work paid to the individual during the individual’s
25base period. Benefits paid to an eligible individual shall
26be charged against the base period wage credits in the
27individual’s account which have not been previously charged,
28in the inverse chronological order as the wages on which the
29wage credits are based were paid. However if the state “off”
30indicator is in effect and if the individual is laid off due to
31the individual’s employer going out of business at the factory,
32establishment, or other premises at which the individual was
33last employed, the maximum benefits payable shall be extended
34to thirty-nine twenty-six times the individual’s weekly benefit
35amount, but not to exceed the total of the wage credits accrued
-2-1to the individual’s account.
2 Sec. 3. Section 96.4, Code 2022, is amended by adding the
3following new subsection:
4 NEW SUBSECTION. 8. The individual has satisfied a single
5one-week waiting period during the individual’s benefit year.
6To satisfy the one-week waiting period, the individual, with
7respect to the week in question, must otherwise be eligible
8for benefits from this state, must not have received or have
9payable benefits from this state, and must not be eligible for
10benefits from another state.
11 Sec. 4. Section 96.5, subsection 2, Code 2022, is amended by
12adding the following new paragraph:
13 NEW PARAGRAPH. d. For the purposes of this subsection,
14“misconduct” means a deliberate act or omission by an
15employee that constitutes a material breach of the duties
16and obligations arising out of the employee’s contract of
17employment. Misconduct is limited to conduct evincing such
18willful or wanton disregard of an employer’s interest as
19is found in deliberate violation or disregard of standards
20of behavior which the employer has the right to expect of
21employees, or in carelessness or negligence of such degree of
22recurrence as to manifest equal culpability, wrongful intent
23or evil design, or to show an intentional and substantial
24disregard of the employer’s interests or of the employee’s
25duties and obligations to the employer. Misconduct by an
26individual includes but is not limited to all of the following:
27(1) Falsification of the individual’s employment
28application.
29(2) Knowing violation of a reasonable and uniformly
30enforced rule of an employer.
31(3) Intentional damage of an employer’s property.
32(4) Dishonesty to an employer with regard to the
33individual’s employment.
34(5) Consumption of alcohol, illegal or nonprescribed
35prescription drugs, or an impairing substance in a manner
-3-1not directed by the manufacturer, or a combination of such
2substances, on the employer’s premises in violation of the
3employer’s employment policies.
4(6) Reporting to work under the influence of alcohol,
5illegal or nonprescribed prescription drugs, or an impairing
6substance in an off-label manner, or a combination of such
7substances, on the employer’s premises in violation of the
8employer’s employment policies, unless the individual is
9compelled to work by the employer outside of scheduled or
10on-call working hours.
11(7) Conduct that endangers the personal safety of the
12individual, coworkers, or the general public.
13(8) Incarceration for an act for which one could reasonably
14expect to be incarcerated that results in missing work.
15(9) Incarceration as a result of a misdemeanor or felony
16conviction by a court of competent jurisdiction.
17(10) Excessive unexcused tardiness or absenteeism.
18(11) Falsification of any work-related report, task, or job
19that could expose the employer or coworkers to legal liability
20or sanction for violation of health or safety laws.
21(12) Failure to maintain any license, registration, or
22certification that is reasonably required by the employer or
23by law, or that is a functional requirement to perform the
24individual’s regular job duties, unless the failure is not
25within the control of the individual.
26(13) Conduct that is libelous or slanderous toward an
27employer or an employee of the employer if such conduct is not
28protected under state or federal law.
29(14) Conduct creating or attempting to create dissention or
30animus against the employer or a coworker if such conduct is
31not protected under state or federal law.
32(15) Theft of an employer or coworker’s funds or property.
33(16) Misrepresentation of time worked or work carried out
34that results in the individual receiving unearned wages or
35unearned benefits.
-4-1 Sec. 5. Section 96.5, subsection 3, paragraph a,
2subparagraph (1), subparagraph divisions (a), (b), (c), and
3(d), Code 2022, are amended to read as follows:
4(a) One hundred percent, if the work is offered during the
5first five weeks week of unemployment.
6(b) Seventy-five Ninety percent, if the work is offered
7during the sixth second through the twelfth third week of
8unemployment.
9(c) Seventy Eighty percent, if the work is offered during
10the thirteenth fourth through the eighteenth fifth week of
11unemployment.
12(d) Sixty-five Seventy percent, if the work is offered
13after during the eighteenth sixth through the eighth week of
14unemployment.
15 Sec. 6. Section 96.5, subsection 3, paragraph a,
16subparagraph (1), Code 2022, is amended by adding the following
17new subparagraph division:
18 NEW SUBPARAGRAPH DIVISION. (e) Sixty percent, if the work
19is offered after the eighth week of unemployment.
20 Sec. 7. Section 96.6, subsection 3, paragraph b, Code 2022,
21is amended to read as follows:
22b. Appeals from the initial determination shall be heard
23by an administrative law judge employed by the department.
24An administrative law judge’s decision may be appealed by
25any party to the employment appeal board created in section
2610A.601. The decision of the appeal board is final agency
27action and an appeal of the decision shall be made or directly
28to the district court.
29DIVISION II
30TORT liability
31 Sec. 8. Section 147.136A, subsection 1, paragraph b, Code
322022, is amended to read as follows:
33b. (1) “Noneconomic damages” means damages arising from
34pain, suffering, inconvenience, physical impairment, mental
35anguish, emotional pain and suffering, loss of chance, loss of
-5-1consortium, or any other nonpecuniary damages.
2(2) “Noneconomic damages” does not include the loss of
3dependent care, including the loss of child care, due to the
4death of or severe injury to a spouse or parent who is the
5primary caregiver of a child under the age of eighteen or a
6disabled adult. Such damages shall be considered economic
7damages.
8 Sec. 9. Section 147.136A, subsection 2, Code 2022, is
9amended to read as follows:
102. The total amount recoverable in any civil action for
11noneconomic damages for personal injury or death, whether in
12tort, contract, or otherwise, against a health care provider
13shall be limited to two hundred fifty thousand dollars for any
14occurrence resulting in injury or death of a patient regardless
15of the number of plaintiffs, derivative claims, theories of
16liability, or defendants in the civil action, shall not exceed
17two hundred fifty thousand dollars unless the jury determines
18that there is a substantial or permanent loss or impairment of
19a bodily function, substantial disfigurement, or death, which
20warrants a finding that imposition of such a limitation would
21deprive the plaintiff of just compensation for the injuries
22sustained, in which case the amount recoverable shall not
23exceed one million dollars.
24 Sec. 10. NEW SECTION. 668.12A Liability for employee
25negligence in actions involving commercial motor vehicles.
261. In a civil action involving a commercial motor vehicle
27as defined in section 321.1, if an employer who is a defendant
28in the action complies with subsection 2, the employer’s
29liability for damages caused by the negligence of an employee
30acting within the course and scope of employment shall be based
31solely on respondeat superior and not on the employer’s direct
32negligence in hiring, training, supervising, or trusting the
33employee, or other similar claim that the employer’s negligence
34enabled the employee’s harmful conduct.
352. On motion of an employer who is the defendant in
-6-1a civil action involving a commercial motor vehicle, and
2notwithstanding section 671A.2, a trial court shall dismiss
3from the civil action any claim of the employer’s direct
4negligence in hiring, training, supervising, or trusting an
5employee, or other claim of direct negligence on the part of
6the employer for the employee’s harmful conduct, or other
7similar claims, if the employer stipulates that at the time
8of the event that caused the damages that are the subject of
9the action that the person whose negligence is alleged to have
10caused the damages was the employer’s employee and was acting
11within the course and scope of employment with the employer.
123. If an employer makes the stipulations in subsection 2
13with respect to an employee, and the employee’s negligence is
14found to have caused or contributed to causing the damages, the
15employer shall be adjudged vicariously liable for the resulting
16damages.
17 Sec. 11. NEW SECTION. 668.15A Noneconomic damages —
18commercial motor vehicle owners or operators.
191. As used in this section:
20a. “Commercial motor vehicle” means the same as defined in
21section 321.1.
22b. “Noneconomic damages” means damages arising from
23pain, suffering, inconvenience, physical impairment, mental
24anguish, emotional pain and suffering, loss of chance, loss of
25consortium, or any other nonpecuniary damages.
26c. “Occurrence” means the event, incident, or happening,
27and the acts or omissions incident thereto, which proximately
28caused injuries or damages for which recovery is claimed.
292. The total amount recoverable in any civil action for
30noneconomic damages for personal injury or death, whether in
31tort, contract, or otherwise, against the owner or operator
32of a commercial motor vehicle shall be limited to one million
33dollars, regardless of the number of derivative claims,
34theories of liability, or defendants in the civil action.
35 Sec. 12. Section 668A.1, Code 2022, is amended by adding the
-7-1following new subsection:
2 NEW SUBSECTION. 2A. A claim for punitive or exemplary
3damages shall not be included in any initial claim for relief.
4A claim for punitive or exemplary damages may be allowed by
5amendment to the pleadings only after the exchange of initial
6disclosures pursuant to the Iowa rules of civil procedure and
7after the plaintiff establishes prima facie proof of a triable
8issue. After the plaintiff establishes the existence of a
9triable issue, the court may, in its discretion and subject
10to subsection 3, allow discovery on the issue of punitive or
11exemplary damages as the court deems appropriate.
12EXPLANATION
13The inclusion of this explanation does not constitute agreement with
14the explanation’s substance by the members of the general assembly.
15This bill relates to matters under the purview of the state,
16including unemployment benefits and civil torts.
17DIVISION I — UNEMPLOYMENT INSURANCE. This division of the
18bill amends the Iowa employment security law concerning state
19unemployment insurance benefits.
20The bill revises the language of Code section 96.2
21concerning guidance for interpreting Code chapter 96. The bill
22changes the default maximum benefits payable to an individual
23eligible to receive unemployment compensation to the lesser of
24total wage credits accrued to the individual’s account during
25the individual’s base period or 16 times the individual’s
26weekly benefit amount. Under current law, the default maximum
27is the lesser of total wage credits accrued to the individual’s
28account during the individual’s base period or 26 times the
29individual’s weekly benefit amount.
30The bill changes the maximum benefits payable to an
31individual eligible to receive unemployment compensation, when
32the state “off” indicator is in effect and the individual
33was laid off due to the individual’s employer going out of
34business at the factory, establishment, or other premises at
35which the individual was last employed, to the lesser of total
-8-1wage credits accrued to the individual’s account or 26 times
2the individual’s weekly benefit amount. Under current law,
3the maximum is the lesser of total wage credits accrued to
4the individual’s account or 39 times the individual’s weekly
5benefit amount.
6The bill requires an individual to first satisfy a single
7one-week waiting period during the individual’s benefit year
8prior to receiving unemployment compensation. To satisfy the
9waiting period, the individual, with respect to the week in
10question, must otherwise be eligible for unemployment benefits
11from this state, must not have received or have payable
12unemployment benefits from this state, and must not be eligible
13for unemployment benefits from another state.
14The bill defines “misconduct” for the purposes of
15unemployment benefit determinations as a deliberate act or
16omission by an employee that constitutes a material breach
17of the duties and obligations arising out of the employee’s
18contract of employment. “Misconduct” is limited to conduct
19evincing such willful or wanton disregard of an employer’s
20interest as is found in deliberate violation or disregard
21of standards of behavior which the employer has the right
22to expect of employees, or in carelessness or negligence of
23such degree of recurrence as to manifest equal culpability,
24wrongful intent or evil design, or to show an intentional and
25substantial disregard of the employer’s interests or of the
26employee’s duties and obligations to the employer. The bill
27also provides several examples of what constitutes “misconduct”
28by an individual.
29The bill modifies the percentages of an individual’s
30average weekly wage for insured work paid to the individual
31during the quarter of the individual’s base period in which
32the individual’s wages were highest, which the gross weekly
33wages for new work by the individual must equal or exceed
34for the new work to be considered suitable. Under current
35law, if an individual fails without good cause to apply for
-9-1or accept suitable work, the individual is disqualified from
2eligibility for unemployment benefits. The percentages under
3current law are 100 percent for work offered during the first
4five weeks of unemployment; 75 percent for work offered during
5the sixth through the twelfth week of unemployment; 70 percent
6for work offered during the thirteenth through the eighteenth
7week of unemployment; and 65 percent for work offered after
8the eighteenth week of unemployment. Under the bill, the
9percentages are 100 percent for work offered during the first
10week of unemployment; 90 percent for work offered during the
11second through the third week of unemployment; 80 percent
12for work offered during the fourth through the fifth week of
13unemployment; 70 percent for work offered during the sixth
14through the eighth week of unemployment; and 60 percent for
15work offered after the eighth week of unemployment.
16The bill provides that a decision of an administrative law
17judge may be appealed by any party to the unemployment appeal
18board or directly to the district court. Under current law,
19such appeals may only be made to the employment appeal board
20and then to the district court.
21The bill strikes language providing that a finding of
22fact or law, judgment, conclusion, or final order regarding
23a determination of eligibility for unemployment benefits is
24binding only upon the parties to proceedings and is not binding
25upon any other proceedings or action involving the same facts
26brought by the same or related parties before the division of
27labor services, division of workers’ compensation, other state
28agency, arbitrator, court, or judge of this state or the United
29States.
30DIVISION II — TORT LIABILITY. This division of the bill
31relates to tort liability, including noneconomic damage
32awards against health care providers, employer liability for
33an employee’s torts involving a commercial motor vehicle,
34noneconomic damages available against an owner or operator
35of a commercial motor vehicle, and pleading and discovery
-10-1requirements related to punitive damages.
2Current law provides that in a civil action brought by a
3patient against a health care provider, the maximum amount of
4noneconomic damages that the patient may recover is $250,000,
5unless the jury determines that there is a substantial or
6permanent loss or impairment of a bodily function, substantial
7disfigurement, or death, which warrants a finding that
8imposition of such a limitation would deprive the plaintiff
9of just compensation for the injuries sustained. In such a
10case, there is no cap on the amount of noneconomic damages
11that a patient may recover. The bill makes two changes to
12current law. First, the bill establishes that the definition
13of nonecomonic damages does not include the loss of dependent
14care due to the death of or severe injury to a spouse or parent
15who is the primary caregiver of a child or disabled adult.
16Instead, such damages are economic damages. Second, the bill
17provides a $1 million cap on noneconomic damages when the jury
18finds that there is substantial or permanent loss or impairment
19of a bodily function, substantial disfigurement, or death which
20warrants exceeding the $250,000 cap.
21The bill provides that an employer’s liability who is a
22defendant in a civil action involving a commercial motor for
23damages caused by negligence of an employee acting within the
24scope and course of employment shall be based on respondeat
25superior. Upon motion of an employer, and notwithstanding
26Code section 671A.2 (limitations on liability protection for
27negligent hiring), a trial court shall dismiss from the action
28any claim of the employer’s direct negligence in hiring,
29training, supervising, or trusting an employee, or other claim
30of direct negligence on the part of the employer for the
31employee’s harmful conduct, or other similar claims, if the
32employer stipulates that at the time of the event that caused
33the damages that the person whose negligence is the basis of
34the action is the employer’s employee and the employee was
35acting within the course and scope of employment with the
-11-1employer. If an employer makes the stipulation with respect
2to an employee, and the employee’s negligence is found to have
3caused or contributed to causing the damages, the employer
4shall be adjudged vicariously liable for the resulting damages.
5Under current law, an employer is liable for an employee’s
6negligence and may be held responsible for direct negligence
7relating to hiring, training, supervising, trusting an
8employee, or other claims of direct negligence on part of the
9employee’s harmful conduct, subject to certain limitations
10contained in Code chapter 671 (negligent hiring — limitations
11on liability).
12The bill limits the amount of noneconomic damages available
13against the owner or operator of a commercial motor vehicle.
14The division defines “noneconomic damages” to mean damages
15arising from pain, suffering, inconvenience, physical
16impairment, mental anguish, emotional pain and suffering,
17loss of chance, loss of consortium, or any other nonpecuniary
18damages and “occurrence” to mean the event, incident, or
19happening, and the acts or omissions incident thereto, which
20proximately caused injuries or damages for which recovery is
21claimed. The bill provides that the total amount recoverable
22in any civil action for noneconomic damages for personal injury
23or death against the owner or operator of a commercial motor
24vehicle shall be limited to $1 million for any occurrence
25regardless of the number of plaintiffs, derivative claims,
26theories of liability, or defendants in the civil action.
27Under current law, noneconomic damages are unlimited except
28for suits under Code sections 123.92 (dramshop liability) and
29147.136A (medical malpractice).
30The bill provides that a claim for punitive or exemplary
31damages in an action governed by Code section 668A.1 shall
32not be included in any initial claim for relief. A claim for
33punitive or exemplary damages may be allowed by amendment to
34the pleadings only after the exchange of initial disclosures
35and after the plaintiff establishes prima facie proof of a
-12-1triable issue. After the plaintiff establishes the existence
2of a triable issue of punitive or exemplary damages, the court
3may allow additional discovery on the issue of punitive or
4exemplary damages. Under current law and under the bill, the
5mere allegation or assertion of a claim for punitive damages
6cannot form the basis for discovery of the wealth or ability to
7respond in damages on behalf of the party from whom punitive
8damages are claimed until the claimant has established that
9sufficient admissable evidence exists to support a prima facie
10case establishing, by a preponderance of clear, convincing, and
11satisfactory evidence, that the conduct of the defendant from
12which the claim arose constituted willful and wanton disregard
13for the rights or safety of another.
-13-dg/rn