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House File 2355 - IntroducedA Bill ForAn Act 1relating to employment security benefits.
2BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1 Section 1. Section 96.3, subsection 7, paragraph b,
2subparagraph (1), subparagraph division (a), Code 2022, is
3amended to read as follows:
4(a) If the department determines that an overpayment
5has been made, the charge for the overpayment against the
6employer’s account shall be removed and the account shall
7be credited with an amount equal to the overpayment from
8the unemployment compensation trust fund and this credit
9shall include both contributory and reimbursable employers,
10notwithstanding section 96.8, subsection 5. The employer shall
11not be relieved of charges if benefits are paid because the
12employer or an agent of the employer failed to respond timely
13or adequately to the department’s request for information
14relating to the payment of benefits. This prohibition
15against relief of charges shall apply to both contributory and
16reimbursable employers. If the department determines that an
17employer’s failure to respond timely or adequately was through
18no fault of the employer, the employer’s account shall not be
19charged for the overpayment.
20 Sec. 2. Section 96.40, subsection 2, Code 2022, is amended
21by adding the following new paragraph:
22 NEW PARAGRAPH. l. The reduction in work hours for employees
23was not based on a work week exceeding forty hours.
24 Sec. 3. Section 96.40, Code 2022, is amended by adding the
25following new subsections:
26 NEW SUBSECTION. 4A. Approval of a shared work plan shall
27be revoked if the employer lays off any employee, whether the
28employee is employed within an affected unit or not, while
29participating in the shared work unemployment compensation
30program.
31 NEW SUBSECTION. 12. A part-time employee shall be eligible
32for shared work unemployment compensation program benefits,
33provided that the employee meets all other requirements in this
34section.
35EXPLANATION
-1-1The inclusion of this explanation does not constitute agreement with
2the explanation’s substance by the members of the general assembly.
3This bill relates to employment security benefits.
4The bill allows an employer to obtain relief for an
5overpayment of unemployment benefits even though the employer
6or an agent of the employer failed to respond timely or
7adequately to a request by the department of workforce
8development for information relating to the payment of benefits
9provided that the department determines that the failure was
10through no fault of the employer. Under current law, a failure
11to respond timely or adequately is a bar to an employer’s
12relief for an overpayment regardless of whether the failure was
13the employer’s fault.
14The shared work unemployment compensation program, or
15voluntary shared work program (VSW), is a program intended
16for use as an alternative to employee layoffs for businesses
17experiencing a decline in regular business activities. Under
18the VSW program, an employer creates a shared work plan to
19reduce the work hours of employees and unemployment insurance
20replaces lost earnings due to the reduced hours. The bill
21prevents a shared work plan from claiming a reduction of an
22employee’s work hours based on a work week exceeding 40 hours.
23The bill automatically revokes approval of a shared work
24plan if the employer who entered into the plan lays off an
25employee, whether the employee is covered by the shared work
26plan or not, while participating in the VSW program.
27The bill makes part-time employees eligible for VSW
28program benefits, provided that the employees meet all other
29requirements for the VSW program.
-2-dg/rn
2BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1 Section 1. Section 96.3, subsection 7, paragraph b,
2subparagraph (1), subparagraph division (a), Code 2022, is
3amended to read as follows:
4(a) If the department determines that an overpayment
5has been made, the charge for the overpayment against the
6employer’s account shall be removed and the account shall
7be credited with an amount equal to the overpayment from
8the unemployment compensation trust fund and this credit
9shall include both contributory and reimbursable employers,
10notwithstanding section 96.8, subsection 5. The employer shall
11not be relieved of charges if benefits are paid because the
12employer or an agent of the employer failed to respond timely
13or adequately to the department’s request for information
14relating to the payment of benefits. This prohibition
15against relief of charges shall apply to both contributory and
16reimbursable employers. If the department determines that an
17employer’s failure to respond timely or adequately was through
18no fault of the employer, the employer’s account shall not be
19charged for the overpayment.
20 Sec. 2. Section 96.40, subsection 2, Code 2022, is amended
21by adding the following new paragraph:
22 NEW PARAGRAPH. l. The reduction in work hours for employees
23was not based on a work week exceeding forty hours.
24 Sec. 3. Section 96.40, Code 2022, is amended by adding the
25following new subsections:
26 NEW SUBSECTION. 4A. Approval of a shared work plan shall
27be revoked if the employer lays off any employee, whether the
28employee is employed within an affected unit or not, while
29participating in the shared work unemployment compensation
30program.
31 NEW SUBSECTION. 12. A part-time employee shall be eligible
32for shared work unemployment compensation program benefits,
33provided that the employee meets all other requirements in this
34section.
35EXPLANATION
-1-1The inclusion of this explanation does not constitute agreement with
2the explanation’s substance by the members of the general assembly.
3This bill relates to employment security benefits.
4The bill allows an employer to obtain relief for an
5overpayment of unemployment benefits even though the employer
6or an agent of the employer failed to respond timely or
7adequately to a request by the department of workforce
8development for information relating to the payment of benefits
9provided that the department determines that the failure was
10through no fault of the employer. Under current law, a failure
11to respond timely or adequately is a bar to an employer’s
12relief for an overpayment regardless of whether the failure was
13the employer’s fault.
14The shared work unemployment compensation program, or
15voluntary shared work program (VSW), is a program intended
16for use as an alternative to employee layoffs for businesses
17experiencing a decline in regular business activities. Under
18the VSW program, an employer creates a shared work plan to
19reduce the work hours of employees and unemployment insurance
20replaces lost earnings due to the reduced hours. The bill
21prevents a shared work plan from claiming a reduction of an
22employee’s work hours based on a work week exceeding 40 hours.
23The bill automatically revokes approval of a shared work
24plan if the employer who entered into the plan lays off an
25employee, whether the employee is covered by the shared work
26plan or not, while participating in the VSW program.
27The bill makes part-time employees eligible for VSW
28program benefits, provided that the employees meet all other
29requirements for the VSW program.
-2-dg/rn