Iowa Admin. Code r. 871-24.22
Current through Register Vol. 47, No.14, January 8, 2025
Rule 871-24.22 - [Effective 2/12/2025] Business closing(1) Whenever an employer at which the individual was last employed and is laid off goes out of business, the individual's account is credited with one-half, instead of one-third, of the wages for insured work paid to the individual during the individual's base period, which may increase the maximum benefit amount up to 26 times the weekly benefit amount or one-half of the total base period wages, whichever is less. This rule also applies retroactively for monetary redetermination purposes during the current benefit year of the individual who is temporarily laid off with the expectation of returning to work once the temporary or seasonal factors have been eliminated and is prevented from returning to work because the employer goes out of business within the same benefit year. This rule also applies to an individual who works in temporary employment between the layoff from the business closing employer and the claim for benefits. For the purposes of this rule, temporary employment means employment of a duration not to exceed four weeks.(2) Going out of business is when an employer closes its door and ceases to function as a business. An employer is not considered to have gone out of business if it sells or otherwise transfers the business to another employer that continues to operate the business.(3) When the unemployment insurance representative is informed by the individual or has knowledge of an employer going out of business, the representative completes a verification of business closing form and refers it to the field audit section for verification. Upon return of the form from the field audit section, a representative will issue the appropriate decisions to all claimants who requested that their unemployment insurance claim be redetermined as a business closing. This rule is intended to implement Iowa Code section 96.3(5).
Iowa Admin. Code r. 871-24.22
ARC 8711B, IAB 5/5/10, effective 6/9/10Amended by IAB May 23, 2018/Volume XL, Number 24, effective 6/27/2018Amended by IAB September 7, 2022/Volume XLV, Number 5, effective 10/12/2022Adopted by IAB January 8, 2025/Volume XLVII, Number 14, effective 2/12/2025