Signed by Governor Kim Reynolds

Vote Smart's Synopsis:

Vote to pass a bill that reduces the percentage of Iowa's average weekly wage used to calculate unemployment benefits.

Highlights:

• Specifies that taxable wages are to be based upon wages paid in Iowa (Sec. 1).

• Reduces the percentage of the average weekly wage used to calculate unemployment benefits from 66.67% to 33.34% (Sec. 1).

• Reduces the contribution rate a new nonconstruction contributory employer must pay from the twelfth to the fourth benefit ratio rank (Sec. 2).

• Reduces the contribution rate a new construction or landscaping contributory employer must pay from the twenty-first to the ninth benefit ratio rank (Sec. 2).

• Specifies the period in which benefits are calculated and establishes a new contribution table (Sec. 3-6).

• Specifies how the contribution table must be used to calculate contributions (Sec. 6).

• Requires that employers who incur savings due to the aforementioned provisions allocate the savings towards employee salaries and benefits and/or alternative unemployment benefits for use during periods of seasonal unemployment (Sec. 7).

Full Bill Text

Vote Smart's Synopsis:

Vote to pass a bill that reduces the percentage of Iowa's average weekly wage used to calculate unemployment benefits.

Highlights:

• Specifies that taxable wages are to be based upon wages paid in Iowa (Sec. 1).

• Reduces the percentage of the average weekly wage used to calculate unemployment benefits from 66.67% to 33.34% (Sec. 1).

• Reduces the contribution rate a new nonconstruction contributory employer must pay from the twelfth to the fourth benefit ratio rank (Sec. 2).

• Reduces the contribution rate a new construction or landscaping contributory employer must pay from the twenty-first to the ninth benefit ratio rank (Sec. 2).

• Specifies the period in which benefits are calculated and establishes a new contribution table (Sec. 3-6).

• Specifies how the contribution table must be used to calculate contributions (Sec. 6).

• Requires that employers who incur savings due to the aforementioned provisions allocate the savings towards employee salaries and benefits and/or alternative unemployment benefits for use during periods of seasonal unemployment (Sec. 7).

Full Bill Text