Labor & Business Committee – Week 22, 2020

FLOOR ACTION:

HF 2362—Unemployment Insurance Nonprofit Appeals

HF 2362 treats reimbursable nonprofit employers the same as contributory employers for contesting their unemployment insurance reimbursement (unemployment insurance tax rate for contributory employers). Currently, the Code states when a nonprofit gets notice of the decision and how they have to pay. To contest it, they must go to district court. The bill changes that to an unemployment insurance administrative law judge.
[6/10: 50-0]

HF 2365—Notice of Unemployment Insurance Claim

HF 2365 strikes language that notifications to interested parties for an unemployment benefits claims be made by ordinary mail. The interested parties will now select a format specified by the department (which could be electronic or ordinary mail).

The Senate adopted an amendment relating to Voluntary Shared Work Program, language that was passed by the Senate unanimously earlier in session. The amendment makes changes to the Voluntary Shared Work Program for unemployment insurance. The program is designed for businesses that experience downturns and anticipate a layoff of at least 10% of their workforce. This program allows a business to keep its employees by lowering the hours of the employees, instead of eliminating jobs. The amendment provides that a reduction in hours and corresponding reduction in wages must be applied equally to all employees in the affected unit for each week reported (italicize = new code language). An employer may appeal in writing within 30 days from the date of the decision. These provisions apply to all voluntary shared work plans approved by Iowa Workforce Development on or after the effective date of the bill.
[6/10: 50-0]

HF 2363—Landscaping Industry Unemployment Tax Rate

HF 2363 adds landscaping employers to the construction unemployment tax rate. This is the highest rate in the tax table. This change will increase contributions to the Unemployment Trust Fund by approximately $683,000 annually.
[6/10: 49-1 (No: Zumbach)]

HF 2364—Injunction Upon Nonpayment

HF 2364 adds clarifying language to the injunctions regarding unemployment insurance. When businesses fail to provide reports and records to Iowa Workforce Development, they can cause workers to be ineligible for unemployment due to the lack of wages. Also, the bill modifies a reference to plans for liquidation of deficiencies.
[6/10: 50-0]