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Labor & Business Committee – Week 3, 2022

January 27, 2022 Senate Staff Blog, Labor & Business Relations Committee, Votes 0

SF 493 – Contractor registration and labor brokers

SF 493 expands the definition of contractor to include a labor broker or recruiter who brings one of more workers to a construction job site in Iowa under the Contractor Registration in Iowa Code 91C.1.

[1/26: short form]

SSB 3039—Unemployment employer charges and Voluntary Shared Work

SSB 3039 is an Iowa Workforce Development (IWD) proposal regarding changes to unemployment benefits. Specifically, the bill amends charges on an employer’s accounts for overpayments and changes to Voluntary Shared Work Program.

Charges to employer’s account: Under current law, IWD removes charges against an employer’s account if a claimant’s eligibility has been reversed and is found ineligible for benefits. Under current law, this waiver of charges does not apply if the employer or an agent of the employer failed to respond timely or adequately to IWD’s request for information on payment of benefits. The bill allows a waiver of charges if IWD determines that the employer’s failure to respond timely or adequality was through no fault of the employer. According to IWD, this is an existing agency procedure that they are codifying.

Voluntary Shared Work: The Voluntary Shared Work Program (VSW) is meant to be an alternative to employee layoffs during declines in regular business activity. Under VSW, the employer can reduce employees’ work hours and unemployment insurance will replace those lost earnings due to the reduction of hours.

The bill prevents an employer on VSW from claiming a reduction of an employee’s work hours based on a work week exceeding 40 hours. Under the changes of the bill, VSW plan approval will be revoked if the employer lays off an employee, whether the employee is part of the work unit covered by the VSW or not. The bill makes part-time employees eligible for VSW. [1/26: short form]