A bill for an act concerning eligibility for unemployment benefits.

Iowa Senate File 372 (SF372) is a bill introduced in February 2025 that aims to modify the eligibility criteria for unemployment benefits. The bill proposes to broaden the definition of 'short-term temporary layoff' to include layoffs due to unforeseen circumstances beyond seasonal weather, such as cybersecurity attacks. This change would allow workers affected by such events to qualify for unemployment benefits without the standard work search requirements, provided they have a reasonable expectation of returning to their previous employment.

Supporters of SF372 argue that the bill provides necessary support to workers facing unexpected layoffs due to unforeseen events like cybersecurity attacks. By expanding unemployment benefit eligibility, the legislation aims to offer financial stability to affected individuals during temporary business closures, ensuring they can meet their needs while awaiting reemployment.

Critics of SF372 express concerns that the bill could lead to increased unemployment insurance costs and potential misuse of benefits. They argue that broadening the definition of 'short-term temporary layoff' may incentivize businesses to close operations more readily, knowing employees can access unemployment benefits, potentially leading to higher premiums for employers and strain on the unemployment insurance system.