Labor & Employment

HF 980 changes Iowa's unemployment insurance tax system for employers. It reduces the percentage used to calculate taxable wages from 66.66% to 33.33% of the statewide average weekly wage (previously used for maximum benefit calculations), and adjusts the contribution rate tables to lower tax rates for most employers. The bill also requires employers to use any tax savings from these changes to pay employee salaries/benefits or cover seasonal unemployment, rather than keeping the savings. This directly affects all Iowa employers paying unemployment insurance taxes, particularly those with out-of-state workers, by lowering their tax burden under the new structure.

This bill requires Iowa's tuition grant program to allocate at least 50% of annual funds to students enrolled in majors linked to high-wage, high-demand jobs. It mandates the workforce development board (with input from private colleges) to create and update a list of qualifying jobs using specific criteria: $40,000+ entry-level salaries, bachelor's degrees or teaching licenses, and either 250+ annual job openings or 1% annual growth. Students pursuing degrees in fields matching this list would receive priority for grant funds. The list must be updated every two years, and the requirement for the list creation takes immediate effect upon enactment.