SF 110 – Unemployment insurance federal conformity legislation
FLOOR ACTION:
SF 110 makes two changes to Iowa’s unemployment insurance (UI) law to conform to existing federal regulations. The first change establishes a 15 percent penalty for employees who fraudulently obtain unemployment benefits. Second, the bill requires employers who cause an overpayment of benefits by not participating in a fact-finding hearing to be charged for the benefits that are awarded as a result of their failure to participate. Currently, if an employer does not participate in the fact-finding hearing where benefits are awarded to the employer, but those benefits are later denied on an appeal by the employer, the employer will not be charged. The change is intended to compel more employer participation in fact-finding hearings to improve the process. These changes are required to be enacted by October 15, 2013, to maintain Iowa’s compliance with federal UI regulations. Failure to conform would result in a $500 million increase in UI taxes on Iowa employers and the possible loss of federal funding for the administration of Iowa’s UI program. [2/6: 48-0 (Black and Ernst absent)]