Senate File 372 - Introduced SENATE FILE 372 BY TOWNSEND , DOTZLER , DONAHUE , TRONE GARRIOTT , STAED , PETERSEN , QUIRMBACH , WEINER , and WAHLS A BILL FOR An Act concerning eligibility for unemployment benefits. 1 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 2 TLSB 1699XS (4) 91 je/js
S.F. 372 Section 1. Section 96.4, subsection 3, paragraph b, Code 1 2025, is amended to read as follows: 2 b. Notwithstanding any provision of this chapter to the 3 contrary, the department may establish by rule a process to 4 waive or alter the work search requirements of this subsection 5 for a claim for benefits if an individual has a reasonable 6 expectation that the individual will be returning to employment 7 and is attached to a regular job or industry or a member in 8 good standing of a union therein eligible for referral for 9 employment. To be considered attached to a regular job or 10 industry, an individual must be on a short-term seasonal or 11 temporary layoff. If work is not available at the conclusion 12 of the layoff period due to short-term circumstances beyond 13 the employers control, the employer may request an extension 14 of the waiver or alteration for up to two weeks from the 15 department. For purposes of this paragraph, short-term 16 seasonal or temporary layoff means a layoff period of sixteen 17 weeks or less due to seasonal weather conditions or other 18 conditions that impact the ability to perform work related to 19 highway construction, repair, or maintenance with a specific 20 return-to-work date verified by the employer . 21 Sec. 2. Section 96.5, subsection 3, paragraph b, Code 2025, 22 is amended by adding the following new subparagraphs: 23 NEW SUBPARAGRAPH . (4) (a) If the individual has a 24 reasonable expectation that the individual will be returning 25 to employment, as defined by the department by rule, and 26 is attached to a regular job or industry or is a member in 27 good standing of a union therein eligible for referral for 28 employment. 29 (b) To be considered attached to a regular job or industry, 30 an individual must be on a short-term seasonal or temporary 31 layoff as defined in section 96.4, subsection 3. 32 NEW SUBPARAGRAPH . (5) If all of the following circumstances 33 apply: 34 (a) The individual is unemployed due to the individuals 35 -1- LSB 1699XS (4) 91 je/js 1/ 3
S.F. 372 employer temporarily ceasing operations or going out of 1 business at the factory, establishment, or other premises at 2 which the individual was last employed. 3 (b) The reason for the employer going out of business was a 4 result of unforeseen circumstances, including but not limited 5 to cybersecurity attacks. 6 (c) The individual has a reasonable expectation that the 7 individual will be returning to employment with the employer 8 that temporarily ceased operations or went out of business. 9 EXPLANATION 10 The inclusion of this explanation does not constitute agreement with 11 the explanations substance by the members of the general assembly. 12 This bill relates to unemployment benefits. 13 Under current law, the department of workforce development 14 may establish by rule a process to waive or alter the work 15 search requirements for a claim for benefits if an individual 16 has a reasonable expectation that the individual will be 17 returning to employment and is attached to a regular job or 18 industry or a member in good standing of a union therein 19 eligible for referral for employment. To be considered 20 attached to a regular job or industry, an individual must 21 be on a short-term temporary layoff, which is defined as 22 a layoff period of 16 weeks or less due to seasonal weather 23 conditions that impact the ability to perform work related to 24 highway construction, repair, or maintenance with a specific 25 return-to-work date verified by the employer. The bill changes 26 the defined term to short-term seasonal or temporary layoff, 27 provides that conditions other than weather conditions are 28 included in the definition, and strikes the language that the 29 work to be performed must be related to highway construction, 30 repair, or maintenance and must have a specific return-to-work 31 date verified by the employer. 32 The bill provides that benefits shall not be denied to 33 an eligible individual for refusing to accept work if the 34 individual has a reasonable expectation that the individual 35 -2- LSB 1699XS (4) 91 je/js 2/ 3
S.F. 372 will be returning to employment, as defined by the department 1 by rule, and is attached to a regular job or industry or is 2 a member in good standing of a union therein eligible for 3 referral for employment. To be considered attached to a 4 regular job or industry, an individual must be on a short-term 5 seasonal or temporary layoff. 6 The bill provides that benefits shall not be denied to 7 an eligible individual for refusing to accept work if the 8 individual is unemployed due to the individuals employer 9 temporarily ceasing operations or going out of business at 10 the factory, establishment, or other premises at which the 11 individual was last employed; the reason for the employer going 12 out of business was a result of unforeseen circumstances; 13 and the individual has a reasonable expectation that the 14 individual will be returning to employment with the employer 15 that temporarily ceased operations or went out of business. 16 -3- LSB 1699XS (4) 91 je/js 3/ 3