Bills › 88th General Assembly
Relating to the maximum duration of unemployment benefits for certain individuals and including applicability provisions
Sponsored by the House Labor Committee
Topics:Jobs & workers
Where it is now
- Done: IntroducedFebruary 19, 2020
- Stopped: SubcommitteeDied when the General Assembly ended
- Next: House committee
- Next: Passes the House
- Next: Senate committee
- Next: Passes the Senate
- Next: To the Governor
- Next: Signed into law
Died when the session ended The 2020 session adjourned on June 14, 2020, the General Assembly’s last regular session. Bills that didn’t pass both chambers died. What’s a funnel?
What’s in it
AI summary People who lose their jobs because their employer goes out of business will no longer receive extra wage credits or additional weeks of unemployment benefits. This change affects workers who were laid off due to a factory or business closing down. These individuals will now have their maximum benefit amounts calculated using different rules.1
Read the official explanation
This 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 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 applies to any week of unemployment benefits beginning on or after the first Sunday after the effective date of the bill.
Fiscal note
AI summary This bill reduces the unemployment benefits available to people whose employers go out of business. It is estimated to reduce payments from the Unemployment Insurance Trust Fund by approximately $744,000 during fiscal year 2020 and by $4.3 million annually thereafter.3
Read the fiscal note
Description
House File 2462 relates to unemployment insurance under Iowa Code chapter 96. The Bill reduces the benefits that are available to a claimant when the individual’s employer goes out of business. This change is effective upon enactment and applies to any week of unemployment benefits beginning on or after the first Sunday after enactment.
Background
For calendar year 2016 through calendar year 2018, the number of unemployment insurance benefits recipients related to an employer going out of business averaged approximately 2,500 annually. Approximately 1,200 recipients would have had their benefits impacted by this Bill, averaging an annual reduced benefit of approximately $3,600 per impacted recipient.
Assumptions
- Business closings related to unemployment extended benefits do not fluctuate during the year.
- Approximately 1,200 unemployment insurance benefits recipients will be impacted annually by this Bill.
- The average annual impact per recipient will be a decrease in benefits of $3,600.
- The Bill will be effective May 1, 2020.
Fiscal Impact
With the enactment of HF 2462, the changes related to an employer going out of business will reduce payments from the Unemployment Insurance Trust Fund by approximately $744,000 during FY 2020 and by $4.3 million annually thereafter.
Source
- Iowa Department of Workforce Development
- Unemployment Insurance Program, Benefits · February 25, 2020
- Unemployment Insurance Program, Benefits · February 21, 2020
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88th General Assembly