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SSB 1111

A bill for an act providing for disqualification for unemployment benefits due to separation from short-term employment with a fixed end date and including applicability provisions.

2025-2026 Regular Session

The bill disqualifies unemployment benefits for those ending fixed-term, 180 days or less, if they signed a written contract waiving benefits and other conditions apply.

Committee report approving bill, renumbered as SF 466.
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Bill Summary · SSB 1111

Summary of SSB 1111 (renumbered as SF 466)

Overview

SSB 1111 proposes to disqualify certain individuals from unemployment benefits when they separate from short-term employment that has a fixed end date of 180 days or less. The bill adds a new provision to Code section 96.5 and makes the measure applicable to employment beginning on or after the act’s effective date. The bill was introduced on February 11, 2025, moved through a subcommittee, and was approved by the committee, later renumbered as SF 466.

Purpose and intent

  • The main purpose is to restrict unemployment benefits for individuals whose separation arises from the completion of a short-term, fixed-end employment arrangement, under a set of specific conditions intended to demonstrate that the arrangement was pre-planned and not intended to create ongoing unemployment eligibility.
  • The bill targets fix-end-date contracts that could be used to minimize unemployment insurance liability, by requiring several contractual and factual requirements to be met before a disqualification applies.

Key provisions

  • New subsection added to Section 96.5 (NEW Subsection 15) defining “Short-term employment with fixed end date.”
    • Disqualification trigger: The department (Department of Workforce Development) must find that the individual separated due to the conclusion of a fixed-term employment of 180 days or less, and also finds all of the following:
    • a) The individual entered into a written employment contract with the employer before the start of employment.
    • b) The contract specified an end date no more than 180 days after the start.
    • c) The contract acknowledged the individual would not be eligible for unemployment benefits at the conclusion.
    • d) The employment actually concluded no more than 180 days after the start.
    • e) The employer is not entering into such contracts with the individual on an ongoing basis to avoid or reduce unemployment liability under this chapter.
    • f) The employment was not during federal active duty, state active duty, or National Guard duty (per a defined reference to §29A.1).
  • Sec. 2 (Applicability): The act applies to employment beginning on or after the act’s effective date.

Who is affected

  • Individuals engaged in short-term, fixed-end-date employment (≤180 days) who signed written contracts meeting the above conditions.
  • Employers who issue such fixed-term contracts with the intent (or potential) to avoid unemployment insurance liability, and who do not otherwise meet the specified exclusions.
  • The Department of Workforce Development (DWD) would determine eligibility based on the enumerated findings.

Procedural timeline and status

  • Introduced: February 11, 2025
  • Subcommittee: February 12, 2025 (Sires, Dotzler, Pike)
  • Subcommittee action: February 19–20, 2025 (meeting notice dated February 20)
  • Subcommittee recommendation: February 20, 2025 (passage)
  • Committee action: February 25, 2025 (Committee report approving bill; renumbered as SF 466)

Practical impact and considerations

  • If the bill becomes law, individuals exiting fixed-term employment of 180 days or less under the specified conditions could be disqualified from unemployment benefits.
  • Employers would need to ensure that such contracts are not used to circumvent unemployment protections and comply with the precise criteria outlined (written contract, explicit end date, waiver of benefits, etc.).
  • The applicability is prospective, covering positions and contracts beginning after the act’s effective date.

Notes: The bill includes an explanatory section typical of legislative proposals, clarifying intent, but the explanation itself does not bind the law.

Compiled from official sources — confirm details with the bill’s official record.

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