HOUSE REPUBLICAN STAFF ANALYSIS Bill: House File 2199 (formerly HSB 601) Committee: Labor Floor Manager: Rep. Forristall Date: February 17, 2014 Staff: Colin Tadlock (1-3440) House Committee: House Floor: Senate Floor: Governor: PASSED on Feb. 10 (16-0-1) Federal Conformity – Voluntary Shared Work  Conforms Iowa Code to the requirements of federal law in regards to the Voluntary Shared Work program ___________________________________________________________________________________ Section by Section Analysis Section 1 – Affected Employees & Benefits VSW would apply to all layoffs, including temporary and permanent layoffs, and would apply to part-time and full-time employees. This section also states that the employer must provide an estimate for the number of employees that would be laid off. The employer must also provide notification of participation in the VSW plan to employees. This section also defines “fringe benefits” as employer-provided health benefits and pension plans per IRS Code. Section 2 – Consistent with State & Federal Law Participation must be consistent with state and federal law. Section 3 – Shared Work Programs A VSW program is available for an employer with an approved plan if an employee’s work schedule is reduced between 20-50% (reducing a 40 hour workweek into a 20-32 hour workweek). This section also states that VSW benefits are to be paid the same way as regular unemployment insurance benefits. Workforce Investment Act training is included as an approved training program that an employer may provide. Section 4 – Applicability This law applies to all Voluntary Shared Work programs approved by IWD on or after July 1, 2014. ___________________________________________________________________________________ 1