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House File 2238 - IntroducedA Bill ForAn Act 1relating to unemployment benefit maximum duration
2amounts and establishing a diminished salary offset.
3BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1 Section 1. Section 96.3, subsection 5, paragraph a, Code
22022, is amended to read as follows:
3a. Duration of benefits. The maximum total amount of
4benefits payable to an eligible individual during a benefit
5year shall not exceed the total of the wage credits accrued to
6the individual’s account during the individual’s base period,
7or twenty-six sixteen times the individual’s weekly benefit
8amount, whichever is the lesser. The director shall maintain
9a separate account for each individual who earns wages in
10insured work. The director shall compute wage credits for
11each individual by crediting the individual’s account with
12one-third of the wages for insured work paid to the individual
13during the individual’s base period. However, the director
14shall recompute wage credits for an individual who is laid
15off due to the individual’s employer going out of business at
16the factory, establishment, or other premises at which the
17individual was last employed, by crediting the individual’s
18account with one-half, instead of one-third, of the wages for
19insured work paid to the individual during the individual’s
20base period. Benefits paid to an eligible individual shall
21be charged against the base period wage credits in the
22individual’s account which have not been previously charged,
23in the inverse chronological order as the wages on which the
24wage credits are based were paid. However if the state “off”
25indicator is in effect and if the individual is laid off due to
26the individual’s employer going out of business at the factory,
27establishment, or other premises at which the individual was
28last employed, the maximum benefits payable shall be extended
29to thirty-nine twenty-six times the individual’s weekly benefit
30amount, but not to exceed the total of the wage credits accrued
31to the individual’s account.
32 Sec. 2. Section 96.3, Code 2022, is amended by adding the
33following new subsection:
34 NEW SUBSECTION. 5A. Diminished salary offset. If an
35individual receiving benefits accepts an offer of employment
-1-1prior to the exhausting of all benefits for the individual’s
2benefit year and the gross weekly salary is less than the
3individual’s weekly benefit amount, the individual shall be
4eligible to receive an amount equal to the difference between
5the individual’s gross weekly salary and the individual’s
6weekly benefit amount. Benefits shall be exhausted when the
7individual’s gross weekly salary paid plus benefits received
8equal or are greater than the maximum total amount of benefits
9payable to the individual during the benefit year.
10EXPLANATION
11The inclusion of this explanation does not constitute agreement with
12the explanation’s substance by the members of the general assembly.
13This bill relates to unemployment benefit maximum durations
14and establishes a diminished salary offset.
15Under current law, the maximum total amount of unemployment
16benefits payable to an eligible individual is the lesser of the
17wage credits accrued in an individual’s account during a base
18period, 26 times the individual’s weekly benefit amount, or 39
19times the individual’s weekly benefit amount if the state “off”
20indicator is in effect and the individual is laid off due to
21the individual’s employer going out of business at the factory,
22establishment, or other premises at which the individual was
23last employed. The bill changes the maximum to the lesser of
24wage credits accrued in an individual’s account during a base
25period, 16 times the individual’s weekly benefit amount, or 26
26times the individual’s weekly benefit amount if the state “off”
27indicator is in effect and 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.
31The bill establishes a diminished salary offset whereby an
32individual who accepts employment with a gross weekly salary
33less than the individual’s weekly unemployment benefit amount
34may receive an amount equal to the difference between the
35individual’s gross weekly salary and the individual’s weekly
-2-1benefit amount if the individual accepts such employment prior
2to exhausting the individual’s benefits for the individual’s
3benefit year. The individual’s benefits shall be exhausted
4when the individual’s gross weekly salary paid plus benefits
5received are equal to or greater than the maximum total amount
6of benefits payable to the individual during the benefit year.
-3-dg/rn
2amounts and establishing a diminished salary offset.
3BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1 Section 1. Section 96.3, subsection 5, paragraph a, Code
22022, is amended to read as follows:
3a. Duration of benefits. The maximum total amount of
4benefits payable to an eligible individual during a benefit
5year shall not exceed the total of the wage credits accrued to
6the individual’s account during the individual’s base period,
7or twenty-six sixteen times the individual’s weekly benefit
8amount, whichever is the lesser. The director shall maintain
9a separate account for each individual who earns wages in
10insured work. The director shall compute wage credits for
11each individual by crediting the individual’s account with
12one-third of the wages for insured work paid to the individual
13during the individual’s base period. However, the director
14shall recompute wage credits for an individual who is laid
15off due to the individual’s employer going out of business at
16the factory, establishment, or other premises at which the
17individual was last employed, by crediting the individual’s
18account with one-half, instead of one-third, of the wages for
19insured work paid to the individual during the individual’s
20base period. Benefits paid to an eligible individual shall
21be charged against the base period wage credits in the
22individual’s account which have not been previously charged,
23in the inverse chronological order as the wages on which the
24wage credits are based were paid. However if the state “off”
25indicator is in effect and if the individual is laid off due to
26the individual’s employer going out of business at the factory,
27establishment, or other premises at which the individual was
28last employed, the maximum benefits payable shall be extended
29to thirty-nine twenty-six times the individual’s weekly benefit
30amount, but not to exceed the total of the wage credits accrued
31to the individual’s account.
32 Sec. 2. Section 96.3, Code 2022, is amended by adding the
33following new subsection:
34 NEW SUBSECTION. 5A. Diminished salary offset. If an
35individual receiving benefits accepts an offer of employment
-1-1prior to the exhausting of all benefits for the individual’s
2benefit year and the gross weekly salary is less than the
3individual’s weekly benefit amount, the individual shall be
4eligible to receive an amount equal to the difference between
5the individual’s gross weekly salary and the individual’s
6weekly benefit amount. Benefits shall be exhausted when the
7individual’s gross weekly salary paid plus benefits received
8equal or are greater than the maximum total amount of benefits
9payable to the individual during the benefit year.
10EXPLANATION
11The inclusion of this explanation does not constitute agreement with
12the explanation’s substance by the members of the general assembly.
13This bill relates to unemployment benefit maximum durations
14and establishes a diminished salary offset.
15Under current law, the maximum total amount of unemployment
16benefits payable to an eligible individual is the lesser of the
17wage credits accrued in an individual’s account during a base
18period, 26 times the individual’s weekly benefit amount, or 39
19times the individual’s weekly benefit amount if the state “off”
20indicator is in effect and the individual is laid off due to
21the individual’s employer going out of business at the factory,
22establishment, or other premises at which the individual was
23last employed. The bill changes the maximum to the lesser of
24wage credits accrued in an individual’s account during a base
25period, 16 times the individual’s weekly benefit amount, or 26
26times the individual’s weekly benefit amount if the state “off”
27indicator is in effect and 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.
31The bill establishes a diminished salary offset whereby an
32individual who accepts employment with a gross weekly salary
33less than the individual’s weekly unemployment benefit amount
34may receive an amount equal to the difference between the
35individual’s gross weekly salary and the individual’s weekly
-2-1benefit amount if the individual accepts such employment prior
2to exhausting the individual’s benefits for the individual’s
3benefit year. The individual’s benefits shall be exhausted
4when the individual’s gross weekly salary paid plus benefits
5received are equal to or greater than the maximum total amount
6of benefits payable to the individual during the benefit year.
-3-dg/rn