Bill Text: IA HSB601 | 2013-2014 | 85th General Assembly | Introduced
Bill Title: A study bill relating to conformity with federal law concerning the voluntary shared work program under the state unemployment insurance law and including applicability provisions.
Spectrum: Unknown
Status: (N/A - Dead) 0000-00-00 - In Labor [HSB601 Detail]
Download: Iowa-2013-HSB601-Introduced.html
House
Study
Bill
601
-
Introduced
HOUSE
FILE
_____
BY
(PROPOSED
COMMITTEE
ON
LABOR
BILL
BY
CHAIRPERSON
FORRISTALL)
A
BILL
FOR
An
Act
relating
to
conformity
with
federal
law
concerning
the
1
voluntary
shared
work
program
under
the
state
unemployment
2
insurance
law
and
including
applicability
provisions.
3
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
4
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Section
1.
Section
96.40,
subsection
2,
paragraphs
b,
d,
e,
1
f,
and
j,
Code
2014,
are
amended
to
read
as
follows:
2
b.
The
plan
certifies
that
the
aggregate
reduction
in
work
3
hours
is
in
lieu
of
temporary
layoffs
which
would
have
affected
4
at
least
ten
percent
of
the
employees
in
the
affected
unit
or
5
units
to
which
the
plan
applies
and
which
would
have
resulted
6
in
an
equivalent
reduction
in
work
hours.
The
employer
7
provides
an
estimate
of
the
number
of
layoffs
that
would
occur
8
absent
participation
in
the
program.
“Affected
unit”
means
a
9
specified
plant,
department,
shift,
or
other
definable
unit.
10
d.
The
shared
work
plan
reduces
the
normal
weekly
hours
11
of
work
for
an
employee
in
the
affected
unit
by
not
less
12
than
twenty
percent
and
not
more
than
fifty
percent
with
a
13
corresponding
reduction
in
wages.
Only
full-time
employees
who
14
normally
work
between
thirty-five
and
forty
hours
per
week
are
15
eligible
to
participate.
16
e.
The
reduction
in
hours
and
corresponding
reduction
in
17
wages
must
be
applied
equally
to
all
of
the
full-time
employees
18
in
the
affected
unit.
19
f.
The
plan
provides
that
fringe
benefits
will
continue
20
to
be
provided
to
employees
in
affected
units
as
though
their
21
workweeks
had
not
been
reduced
or
to
the
same
extent
as
other
22
employees
not
participating
in
the
program
.
“Fringe
benefits”
23
means
employer-provided
health
benefits
and
retirement
benefits
24
under
a
defined
benefit
plan
or
a
defined
contribution
plan
25
pursuant
to
the
Internal
Revenue
Code.
26
j.
The
plan
is
approved
in
writing
by
the
collective
27
bargaining
representative
for
each
employee
organization
28
or
union
which
has
members
in
the
affected
unit
,
and
the
29
plan
provides
for
notification
to
employees
in
advance
of
30
participation
.
31
Sec.
2.
Section
96.40,
subsection
2,
Code
2014,
is
amended
32
by
adding
the
following
new
paragraph:
33
NEW
PARAGRAPH
.
k.
Participation
by
the
employer
shall
be
34
consistent
with
applicable
federal
and
state
laws.
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Sec.
3.
Section
96.40,
subsections
7
and
9,
Code
2014,
are
1
amended
to
read
as
follows:
2
7.
The
department
shall
pay
an
individual
who
is
eligible
3
for
shared
work
benefits
under
this
section
a
weekly
shared
4
work
benefit
amount
equal
to
the
individual’s
regular
weekly
5
benefit
amount
for
a
period
of
total
unemployment,
less
any
6
deductible
amounts
under
this
chapter
except
wages
received
7
from
any
employer,
multiplied
by
the
full
percentage
of
8
reduction
in
the
individual’s
hours
as
set
forth
in
the
9
employer’s
shared
work
plan.
If
the
shared
work
benefit
amount
10
calculated
under
this
subsection
is
not
a
multiple
of
one
11
dollar,
the
department
shall
round
the
amount
so
calculated
to
12
the
next
lowest
multiple
of
one
dollar.
An
individual
shall
be
13
ineligible
eligible
for
shared
work
benefits
for
any
week
in
14
which
the
individual
performs
paid
work
for
the
participating
15
employer
in
excess
of
the
reduced
hours
established
under
the
16
shared
work
plan
for
a
number
of
hours
equal
to
not
less
than
17
twenty
percent
and
not
more
than
fifty
percent
of
the
normal
18
weekly
hours
of
work
for
the
employee
.
19
9.
a.
Notwithstanding
any
other
provisions
of
this
chapter
,
20
all
All
benefits
paid
under
a
shared
work
plan
,
which
are
21
chargeable
to
the
participating
employer
or
any
other
base
22
period
employer
of
a
participating
employee,
shall
be
charged
23
to
the
account
of
the
participating
employer
under
the
plan
in
24
the
manner
provided
in
this
chapter
for
the
charging
of
regular
25
benefits
.
26
b.
An
employer
may
provide
as
part
of
the
plan
a
training
27
program
the
employees
may
attend
during
the
hours
that
have
28
been
reduced.
Such
a
training
program
may
include
a
training
29
program
funded
under
the
Workforce
Investment
Act
of
1998,
30
Pub.
L.
No.
105-220.
If
the
employer
is
able
to
show
that
31
the
training
program
will
provide
a
substantive
increase
in
32
the
workplace
and
employability
skills
of
the
employee
so
as
33
to
reduce
the
potential
for
future
periods
of
unemployment,
34
the
department
shall
relieve
the
employer
of
charges
for
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benefits
paid
to
the
individual
attending
training
under
the
1
plan.
The
employee
may
attend
the
training
at
the
work
site
2
utilizing
internal
resources,
provided
the
training
is
outside
3
of
the
normal
course
of
employment,
or
in
conjunction
with
an
4
educational
institution.
5
Sec.
4.
APPLICABILITY.
This
Act
applies
to
all
voluntary
6
shared
work
plans
approved
by
the
department
of
workforce
7
development
on
or
after
July
1,
2014.
8
EXPLANATION
9
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
10
the
explanation’s
substance
by
the
members
of
the
general
assembly.
11
This
bill
conforms
the
voluntary
shared
work
program
under
12
the
state
unemployment
insurance
law
to
the
requirements
of
13
sections
2161,
2162,
and
2165
of
the
federal
Middle
Class
Tax
14
Relief
and
Job
Creation
Act
of
2012,
Pub.
L.
No.
112-96.
15
Under
current
law,
the
program
applies
only
to
temporary
16
layoffs
and
full-time
employees.
The
bill
strikes
these
17
limitations.
The
bill
requires
participating
employers
to
18
provide
the
department
of
workforce
development
an
estimate
of
19
the
number
of
layoffs
that
would
occur
absent
participation
in
20
the
program.
The
bill
defines
“fringe
benefits”
for
purposes
21
of
the
program
as
employer-provided
health
benefits
and
22
retirement
benefits
under
a
defined
benefit
plan
or
a
defined
23
contribution
plan
pursuant
to
the
Internal
Revenue
Code.
The
24
bill
requires
employers
to
notify
their
employees
in
advance
25
of
participation
in
the
program.
The
bill
specifies
that
26
participation
in
the
program
by
an
employer
must
be
consistent
27
with
applicable
federal
and
state
laws.
The
bill
provides
that
28
voluntary
shared
work
benefits
are
available
if
an
employee’s
29
normal
weekly
hours
of
work
are
reduced
by
not
less
than
20
30
percent
and
not
more
than
50
percent.
The
bill
provides
that
31
voluntary
shared
work
benefits
are
to
be
charged
to
employers
32
in
the
same
manner
as
regular
unemployment
insurance
benefits.
33
The
bill
provides
that
job
training
funded
under
the
federal
34
Workforce
Investment
Act
of
1998,
Pub.
L.
No.
105-220,
is
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