Bill Text: IA SF492 | 2021-2022 | 89th General Assembly | Introduced

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Bill Title: A bill for an act relating to unemployment insurance and including effective date and applicability provisions.(Formerly SSB 1172.)

Spectrum: Committee Bill

Status: (Introduced - Dead) 2021-06-22 - Referred to Labor and Business Relations. S.J. 1148. [SF492 Detail]

Download: Iowa-2021-SF492-Introduced.html

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Senate File 492 - Introduced
SENATE FILE 492
BY COMMITTEE ON LABOR AND
BUSINESS RELATIONS
(SUCCESSOR TO SSB 1172)
(COMPANION TO 1843HV BY
COMMITTEE ON LABOR)
A BILL FOR
An Act relating to unemployment insurance and including
effective date and applicability provisions.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
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Section 1. Section 96.1A, Code 2021, is amended by adding
the following new subsections:
NEW SUBSECTION . 01. “Able to work” means the individual is
physically and mentally able to perform work.
NEW SUBSECTION . 1A. “Available for work” means the
individual is ready and willing to accept suitable work.
NEW SUBSECTION . 32A. “Severance pay” means any payment
in connection with separation from employment that is not
conditioned on the individual giving up any legal right or the
release of any rights.
Sec. 2. Section 96.1A, subsection 18, unnumbered paragraph
1, Code 2021, is amended to read as follows:
“Exhaustee” means an individual who, with respect to any
week of unemployment in the individual’s eligibility period
has received, prior to such week, all of the regular benefits
that were available to the individual under this chapter or any
other state law, including dependents’ allowances and benefits
payable to federal civilian employees and former armed forces
personnel under 5 U.S.C. ch. 85, in the individual’s current
benefit year that includes such weeks. Provided that for the
purposes of this subsection an individual shall be deemed to
have received all of the regular benefits that were available
to the individual, although as a result of a pending appeal
with respect to wages that were not considered in the original
monetary determination in the individual’s benefit year the
individual may subsequently be determined to be entitled to add
regular benefits, or:
Sec. 3. Section 96.3, subsection 4, Code 2021, is amended
to read as follows:
4. Determination of benefits.
a. With respect to benefit years beginning on or after July
1, 1983, an An eligible individual’s weekly benefit amount for
a week of total unemployment shall be an amount equal to the
following fractions of the individual’s total wages in insured
work paid during that quarter of the individual’s base period
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in which such total wages were highest. The director shall
determine annually a maximum weekly benefit amount equal to
the following percentages, to vary with the number of based on
whether the individual has dependents, of the statewide average
weekly wage paid to employees in insured work which shall be
effective the first day of the first full week in July: July.
If the The weekly Subject to
number of benefit amount the following
dependents shall equal maximum
is: the following percentage of
fraction of high the statewide
quarter wages: average
weekly wage:
0 1/23 53%
1 or more 1/22 55% 57%
2 1/21 57%
3 1/20 60%
4 or more 1/19 65%
b. The maximum weekly benefit amount, if not a multiple
of one dollar, shall be rounded to the lower multiple of one
dollar. However, until such time as sixty-five percent of
the statewide average weekly wage exceeds one hundred ninety
dollars, the The maximum weekly benefit amounts shall be
determined using the statewide average weekly wage computed on
the basis of wages reported for the current calendar year 1981 .
As used in this section , “dependent” means dependent as defined
in section 422.12, subsection 1 , paragraph “a” , as if the
individual claimant was a taxpayer, except that an individual
claimant’s nonworking spouse shall be deemed to be a dependent
under this section . “Nonworking spouse” means a spouse who does
not earn more than one hundred twenty dollars in gross wages
in one week.
Sec. 4. Section 96.3, subsection 5, paragraph a, Code 2021,
is amended to read as follows:
a. Duration of benefits. The maximum total amount of
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benefits payable to an eligible individual during a benefit
year shall not exceed the total of the wage credits accrued
to the individual’s account during the individual’s base
period, or twenty-six times the individual’s weekly benefit
amount, whichever is the lesser. The director shall maintain
a separate account for each individual who earns wages in
insured work. The director shall compute wage credits for
each individual by crediting the individual’s account with
one-third of the wages for insured work paid to the individual
during the individual’s base period. However, the director
shall recompute wage credits for an individual who is laid
off due to the individual’s employer going out of business at
the factory, establishment, or other premises at which the
individual was last employed, by crediting the individual’s
account with one-half, instead of one-third, of the wages for
insured work paid to the individual during the individual’s
base period. Benefits paid to an eligible individual shall
be charged against the base period wage credits in the
individual’s account which have not been previously charged,
in the inverse chronological order as the wages on which the
wage credits are based were paid. However if the state “off”
indicator is in effect and if the individual is laid off due to
the individual’s employer going out of business at the factory,
establishment, or other premises at which the individual was
last employed, the maximum benefits payable shall be extended
to thirty-nine times the individual’s weekly benefit amount,
but not to exceed the total of the wage credits accrued to the
individual’s account.
Sec. 5. Section 96.4, Code 2021, is amended by adding the
following new subsection:
NEW SUBSECTION . 8. The individual has satisfied a single
one-week waiting period during the individual’s benefit year.
To satisfy the one-week waiting period, the individual, with
respect to the week in question, must be eligible for benefits
from this state, but must not have received benefits from this
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state, and must not be eligible for benefits from another
state.
Sec. 6. Section 96.5, subsection 3, paragraph a,
subparagraph (1), subparagraph divisions (a), (b), and (c),
Code 2021, are amended to read as follows:
(a) One hundred Eighty percent, if the work is offered
during the first five four weeks of unemployment.
(b) Seventy-five Seventy percent, if the work is offered
during the sixth fifth through the twelfth eighth week of
unemployment.
(c) Seventy Sixty percent, if the work is offered during
the thirteenth through the eighteenth after the ninth week of
unemployment.
Sec. 7. Section 96.5, subsection 3, paragraph a,
subparagraph (1), subparagraph division (d), Code 2021, is
amended by striking the subparagraph division.
Sec. 8. Section 96.6, subsection 2, Code 2021, is amended
to read as follows:
2. Initial determination.
a. A representative designated by the director shall
promptly notify all interested parties to the claim of its
filing, and the parties have ten days from the date of issuing
the notice of the filing of the claim to protest payment
of benefits to the claimant. All interested parties shall
select a format as specified by the department to receive such
notifications. The representative shall promptly examine
the claim and any protest, take the initiative to ascertain
relevant information concerning the claim, and, on the basis of
the facts found by the representative, shall determine whether
or not the claim is valid, the week with respect to which
benefits shall commence, the weekly benefit amount payable and
its maximum duration, and whether any disqualification shall
be imposed.
b. The claimant has the burden of proving that the claimant
meets the basic eligibility conditions of section 96.4 . The
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employer has the burden of proving that the claimant is
disqualified for benefits pursuant to section 96.5 , except as
provided by this subsection . The claimant has the initial
burden to produce evidence showing that the claimant is not
disqualified for benefits in cases involving section 96.5,
subsections 10 and 11 , and has the burden of proving that a
voluntary quit pursuant to section 96.5, subsection 1 , was
for good cause attributable to the employer and that the
claimant is not disqualified for benefits in cases involving
section 96.5, subsection 1 , paragraphs “a” through “h” . Unless
the claimant or other interested party, after notification
or within ten calendar days after notification was issued,
files an appeal from the decision, the decision is final
and benefits shall be paid or denied in accordance with the
decision. If an administrative law judge affirms a decision of
the representative, or the appeal board affirms a decision of
the administrative law judge allowing benefits, the benefits
shall be paid regardless of any appeal which is thereafter
taken, but if the decision is finally reversed, no employer’s
account shall be charged with benefits so paid and this relief
from charges shall apply to both contributory and reimbursable
employers, notwithstanding section 96.8, subsection 5 .
Sec. 9. Section 96.6, subsection 4, Code 2021, is amended
by striking the subsection and inserting in lieu thereof the
following:
4. Effect of decision —— payment of benefits. Unless the
claimant or other interested party, after notification or
within ten calendar days after notification was issued, files
an appeal from the decision of the representative of the
department, the decision is final and benefits shall be paid or
denied in accordance with the decision. If an administrative
law judge affirms a decision of the representative, or the
appeal board affirms a decision of the administrative law judge
allowing benefits, the benefits shall be paid regardless of
any appeal which is thereafter taken, but if the decision is
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finally reversed, no employer’s account shall be charged with
benefits so paid and this relief from charges shall apply to
both contributory and reimbursable employers, notwithstanding
section 96.8, subsection 5.
Sec. 10. EFFECTIVE DATE. This Act takes effect July 1,
2022.
Sec. 11. APPLICABILITY.
1. Except as otherwise provided in this section, this Act
applies to any week of unemployment benefits beginning on or
after July 3, 2022.
2. The sections of this Act enacting section 96.4,
subsection 8, and amending section 96.6, subsection 4, apply to
any new claim of unemployment benefits beginning on or after
July 3, 2022.
EXPLANATION
The inclusion of this explanation does not constitute agreement with
the explanation’s substance by the members of the general assembly.
This bill relates to unemployment insurance under Code
chapter 96.
The bill defines “able to work”, for purposes of
unemployment benefits, to mean the individual is physically and
mentally able to perform work. The bill defines “available
for work”, for purposes of unemployment benefits, to mean the
individual is ready and willing to accept suitable work.
The bill defines “severance pay”, for purposes of Code
chapter 96, as any payment in connection with separation from
employment that is not conditioned on the individual giving up
any legal right or the release of any rights.
The bill strikes language providing that an eligible
individual’s maximum weekly benefit amount varies with the
number of dependents the individual has. The bill instead
provides that an individual with dependents is subject to a
maximum of 57 percent of the statewide average weekly wage.
The division strikes language defining “dependent”. The bill
strikes additional obsolete language.
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The bill strikes language requiring the director of the
department of workforce development to recompute wage credits
for purposes of calculating an individual’s maximum total
amount of unemployment benefits payable during a benefit year.
The stricken language applied to an individual who is laid
off due to the individual’s employer going out of business at
the factory, establishment, or other premises at which the
individual was last employed by crediting the individual’s
account with one-half, instead of one-third, of the wages for
insured work paid to the individual during the individual’s
base period. The bill also strikes language providing an
additional 13 weeks of benefits to such individuals if the
state “off” indicator, which relates to the rate of insured
unemployment in the state, is in effect.
The bill provides that in order to be eligible for
unemployment benefits, an individual must satisfy a single
one-week waiting period during the individual’s benefit year.
To satisfy the one-week waiting period, the individual, with
respect to the week in question, must be eligible for benefits
from this state, but must not have received benefits from this
state, and must not be eligible for benefits from another
state.
The bill modifies the percentages of the individual’s
average weekly wage for insured work paid to the individual
during the quarter of the individual’s base period in which
the individual’s wages were highest, which the gross weekly
wages for new work by the individual must equal or exceed for
the new work to be considered suitable. Under current law, if
an individual fails without good cause to apply for or accept
suitable work, the individual is disqualified from eligibility
for unemployment benefits. Under current law, the percentages
are 100 percent, if the work is offered during the first five
weeks of unemployment; 75 percent, if the work is offered
during the sixth through the twelfth week of unemployment; 70
percent, if the work is offered during the thirteenth through
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the eighteenth week of unemployment; and 65 percent, if the
work is offered after the eighteenth week of unemployment.
Under the bill, the percentages are 80 percent, if the work
is offered during the first four weeks of unemployment; 70
percent, if the work is offered during the fifth through eighth
week of unemployment; and 60 percent, if the work is offered
after the ninth week of unemployment.
The bill strikes language providing that a finding of
fact or law, judgment, conclusion, or final order regarding
a determination of eligibility for unemployment benefits is
binding only upon the parties to proceedings and is not binding
upon any other proceedings or action involving the same facts
brought by the same or related parties before the division of
labor services, division of workers’ compensation, other state
agency, arbitrator, court, or judge of this state or the United
States.
The bill takes effect July 1, 2022. The provisions of
the bill providing for a one-week waiting period in order to
be eligible for unemployment benefits and striking language
providing that a finding of fact or law, judgment, conclusion,
or final order regarding a determination of eligibility for
unemployment benefits is binding only upon the parties to
proceedings apply to any new claim of unemployment benefits
beginning on or after July 3, 2022. The remainder of the bill
applies to any week of unemployment benefits beginning on or
after July 3, 2022.
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