Bill Text: IA SSB1110 | 2025-2026 | 91st General Assembly | Introduced


Bill Title: A bill for an act relating to disqualification for unemployment benefits for other compensation received and including applicability provisions.

Spectrum: Committee Bill

Status: (Introduced) 2025-02-18 - Subcommittee recommends amendment and passage. [SSB1110 Detail]

Download: Iowa-2025-SSB1110-Introduced.html
Senate Study Bill 1110 - Introduced SENATE FILE _____ BY (PROPOSED COMMITTEE ON WORKFORCE BILL BY CHAIRPERSON DICKEY) A BILL FOR An Act relating to disqualification for unemployment benefits 1 for other compensation received and including applicability 2 provisions. 3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 4 TLSB 1733XC (4) 91 je/js
S.F. _____ Section 1. Section 96.5, subsection 5, paragraph a, 1 subparagraph (1), Code 2025, is amended to read as follows: 2 (1) Wages in lieu of notice, separation allowance, 3 severance pay, or dismissal pay , or any other remuneration in 4 connection with separation from employment . 5 Sec. 2. Section 96.5, subsection 5, paragraph b, Code 2025, 6 is amended to read as follows: 7 b. (1) Provided, that if the remuneration is less than 8 the benefits which that would otherwise be due under this 9 chapter , the individual is entitled to receive for the week, 10 if otherwise eligible, benefits reduced by the amount of 11 the remuneration. Provided further, if benefits were paid 12 for any week under this chapter for a period when benefits, 13 remuneration, or compensation under paragraph “a” , subparagraph 14 (1), (2), or (3), were paid on a retroactive basis for the 15 same period, or any part thereof, the department shall recover 16 the excess amount of benefits paid by the department for 17 the period, and no employer’s account shall be charged with 18 benefits so paid. However, compensation Provided further, if 19 the payment under paragraph “a” , subparagraph (1), received in 20 a week exceeds the benefits the individual would otherwise be 21 entitled to receive for the week, the amount of benefits in 22 subsequent weeks the individual would otherwise be entitled 23 to receive shall also be reduced by the amount of the payment 24 until the total amount of the benefits reduced in this manner 25 equals the total amount of the payment received. 26 (2) Compensation for service-connected disabilities or 27 compensation for accrued leave based on military service by 28 the beneficiary with the armed forces of the United States, 29 irrespective of the amount of the benefit, does not disqualify 30 any individual otherwise qualified from any of the benefits 31 contemplated herein. A deduction shall not be made from the 32 amount of benefits payable for a week for individuals receiving 33 federal social security pensions to take into account the 34 individuals’ contributions to the pension program. 35 -1- LSB 1733XC (4) 91 je/js 1/ 2
S.F. _____ Sec. 3. APPLICABILITY. This Act applies to payments under 1 section 96.5, subsection 5, paragraph “a”, subsection (1), as 2 amended by this Act, received by an individual on or after the 3 effective date of this Act. 4 EXPLANATION 5 The inclusion of this explanation does not constitute agreement with 6 the explanation’s substance by the members of the general assembly. 7 Under current law, an individual is disqualified for 8 unemployment benefits for any week in which the individual 9 receives payment of wages in lieu of notice, a separation 10 allowance, severance pay, or dismissal pay. This bill adds 11 payment of any other remuneration in connection with separation 12 from employment to the grounds for such disqualification. 13 The bill provides that if the amount of the payment for 14 wages in lieu of notice, separation allowance, severance pay, 15 dismissal pay, or any other remuneration in connection with 16 separation from employment received in a week exceeds the 17 benefits the individual would otherwise be entitled to receive 18 for the week, the amount of benefits in subsequent weeks the 19 individual would otherwise be entitled to receive shall also 20 be reduced by the amount of the payment. Such reduction shall 21 continue until the total amount of the benefits reduced in this 22 manner equals the total amount of the payment received. 23 The bill applies to such payments received by an individual 24 on or after the effective date of the bill. 25 -2- LSB 1733XC (4) 91 je/js 2/ 2
feedback