Bill Text: IA HF2223 | 2019-2020 | 88th General Assembly | Introduced


Bill Title: A bill for an act providing for paid sick leave and scheduling procedures for employees, establishing a family leave and medical leave insurance program, providing penalties and remedies, and including applicability provisions.

Spectrum: Partisan Bill (Democrat 5-0)

Status: (Introduced - Dead) 2020-02-06 - Sponsor added, Gaskill. H.J. 205. [HF2223 Detail]

Download: Iowa-2019-HF2223-Introduced.html
House File 2223 - Introduced HOUSE FILE 2223 BY WESSEL-KROESCHELL , ISENHART , STAED , B. MEYER , and KURTH A BILL FOR An Act providing for paid sick leave and scheduling procedures 1 for employees, establishing a family leave and medical leave 2 insurance program, providing penalties and remedies, and 3 including applicability provisions. 4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 5 TLSB 5413YH (5) 88 je/rn
H.F. 2223 Section 1. Section 84A.1, subsection 1, Code 2020, is 1 amended to read as follows: 2 1. The department of workforce development is created to 3 administer the laws of this state relating to unemployment 4 compensation insurance, job placement and training, employment 5 safety, labor standards, and workers’ compensation , family 6 leave and medical leave insurance, and related matters . 7 Sec. 2. Section 84A.5, subsections 3 and 4, Code 2020, are 8 amended to read as follows: 9 3. The department of workforce development is responsible 10 for administration of unemployment compensation benefits 11 and collection of employer contributions under chapter 96 , 12 providing for the delivery of free public employment services 13 established pursuant to chapter 96 , administration of family 14 leave and medical leave insurance under chapter 96A, other job 15 placement and training programs established pursuant to section 16 84A.6 , and the delivery of services located throughout the 17 state. 18 4. The division of labor services is responsible for the 19 administration of the laws of this state under chapters 88 , 20 88A , 88B , 89 , 89A , 89B , 90A , 91 , 91A , 91C , 91D , 91E , 92 , and 94, 21 94A , and 95, and sections 73A.21 and 85.68 . The executive head 22 of the division is the labor commissioner, appointed pursuant 23 to section 91.2 . 24 Sec. 3. Section 91.4, subsection 2, Code 2020, is amended 25 to read as follows: 26 2. The director of the department of workforce development, 27 in consultation with the labor commissioner, shall, at the 28 time provided by law, make an annual report to the governor 29 setting forth in appropriate form the business and expense of 30 the division of labor services for the preceding year, the 31 number of remedial actions taken under chapter 89A , the number 32 of disputes or violations processed by the division and the 33 disposition of the disputes or violations, and other matters 34 pertaining to the division which are of public interest, 35 -1- LSB 5413YH (5) 88 je/rn 1/ 47
H.F. 2223 together with recommendations for change or amendment of the 1 laws in this chapter and chapters 88 , 88A , 88B , 89 , 89A , 89B , 2 90A , 91A , 91C , 91D , 91E , 92 , and 94, 94A , and 95, and section 3 85.68 , and the recommendations, if any, shall be transmitted 4 by the governor to the first general assembly in session after 5 the report is filed. 6 Sec. 4. Section 91A.2, subsection 7, Code 2020, is amended 7 by adding the following new paragraph: 8 NEW PARAGRAPH . e. Predictability pay pursuant to section 9 93.4. 10 Sec. 5. NEW SECTION . 94.1 Definitions. 11 For the purposes of this chapter, unless the context 12 otherwise requires: 13 1. “Child” means a biological, adopted, or foster child, 14 stepchild, legal ward, or a child to whom the employee stands 15 in loco parentis, who is either under eighteen years of age 16 or eighteen years of age or older and incapable of self-care 17 because of a mental or physical disability. 18 2. “Commissioner” means the labor commissioner appointed 19 pursuant to section 91.2, or the labor commissioner’s designee. 20 3. “Domestic abuse” means the same as defined in section 21 236.2. 22 4. “Employee” means an individual who is employed in this 23 state for compensation by an employer. 24 5. “Employer” means any person that employs employees in 25 this state. 26 6. “Retaliation” means any termination of employment, 27 suspension, constructive discharge, demotion, unfavorable 28 reassignment, refusal to promote, disciplinary action, or other 29 adverse employment action taken by an employer. 30 7. “Sexual assault” means the same as defined in section 31 915.40. 32 Sec. 6. NEW SECTION . 94.2 Paid sick leave —— requirements 33 —— exceptions. 34 1. An employer shall provide paid sick leave annually to 35 -2- LSB 5413YH (5) 88 je/rn 2/ 47
H.F. 2223 each employee employed by the employer. An employee shall 1 accrue paid sick leave at a rate of one hour of leave for each 2 thirty hours worked by the employee, in one-hour increments 3 up to a maximum of fifty-six hours of leave per calendar 4 year. An employee shall not be entitled to use more than 5 fifty-six accrued hours of paid sick leave per year. An 6 employee shall be entitled to carry over up to fifty-six unused 7 accrued hours of paid sick leave from one calendar year to the 8 following calendar year. An employee shall begin to accrue 9 paid sick leave on the first day of the employee’s employment 10 by an employer. An employee may use accrued paid sick leave 11 beginning sixty calendar days after the first day of the 12 employee’s employment by an employer. 13 2. An employer shall pay an employee for accrued paid sick 14 leave at a pay rate equal to the normal hourly wage for that 15 employee. For any employee whose hourly wage varies depending 16 on the work performed by the employee, the employee’s pay rate 17 shall be the average hourly wage of the employee in the pay 18 period prior to the one in which the employee used accrued 19 paid sick leave. However, an employer who employs fifteen or 20 less employees in this state may instead provide an employee 21 with unpaid leave or leave paid at a rate less than the normal 22 hourly wage for that employee. 23 3. An employer shall be deemed to be in compliance with 24 this section if the employer offers any other paid leave or 25 combination of other paid leave that may be used for the 26 purposes of section 94.3 and is accrued at a rate equal to or 27 greater than the rate described in subsection 1. Other paid 28 leave may include but is not limited to vacation, personal 29 days, or time off. 30 4. By mutual consent of an employee and employer, the 31 employee may work additional hours or shifts during the same 32 pay period the leave is taken or during the following pay 33 period, instead of using accrued paid sick leave. 34 Sec. 7. NEW SECTION . 94.3 Permitted uses of leave. 35 -3- LSB 5413YH (5) 88 je/rn 3/ 47
H.F. 2223 1. An employer shall permit an employee to use paid sick 1 leave accrued by the employee for the reasons specified in 2 subsections 2 and 3. 3 2. For an employee, the employee’s spouse, or the employee’s 4 child, accrued paid sick leave may be used for any of the 5 following reasons: 6 a. Mental or physical illness, injury, or a health 7 condition. 8 b. Medical diagnosis, care, or treatment of mental illness 9 or physical illness, injury, or a health condition. 10 c. Preventative medical care. 11 3. For an employee who is a victim of domestic abuse or 12 sexual assault, accrued paid sick leave may be used for any of 13 the following reasons: 14 a. Medical care or psychological or other counseling for 15 physical or psychological injury or disability. 16 b. To obtain services from a victim services organization. 17 c. Relocation due to such domestic abuse or sexual assault. 18 d. Participation in any civil or criminal proceedings 19 relating to or resulting from such domestic abuse or sexual 20 assault. 21 Sec. 8. NEW SECTION . 94.4 Advance notice —— documentation. 22 1. If an employee’s need to use paid sick leave is 23 foreseeable, an employer may require advance notice, not to 24 exceed seven days prior to the date such leave is to begin, of 25 the employee’s intent to use such leave. If an employee’s need 26 for such leave is not foreseeable, an employer may require an 27 employee to give notice of such intent as soon as practicable. 28 2. For paid sick leave of three or more consecutive 29 days, an employer may require reasonable documentation that 30 such leave is being taken for the purposes permitted under 31 section 94.3. If such leave is permitted under section 94.3, 32 subsection 2, documentation signed by a health care provider 33 who is treating the employee or the employee’s child or spouse 34 indicating the need for the number of days of such leave shall 35 -4- LSB 5413YH (5) 88 je/rn 4/ 47
H.F. 2223 be considered reasonable documentation. If such leave is 1 permitted under section 94.3, subsection 3, a court record or 2 documentation signed by an employee or volunteer working for a 3 victim services organization, an attorney, a police officer, or 4 other counselor involved with the employee shall be considered 5 reasonable documentation. 6 Sec. 9. NEW SECTION . 94.5 Notice by employers. 7 1. An employer shall, at the time of an employee’s hiring, 8 provide notice to the employee of all of the following: 9 a. The right to sick leave established by this chapter, the 10 amount of sick leave provided, and the terms under which sick 11 leave may be used. 12 b. That retaliation or discrimination by the employer 13 against the employee for requesting or using sick leave for 14 which the employee is eligible is prohibited. 15 c. The employee’s right to file a complaint with the 16 commissioner for any violation of this chapter. 17 2. An employer may comply with the provisions of this 18 section by displaying a poster in a conspicuous place, 19 accessible to employees, at the employer’s place of business 20 that contains the information required by this section in both 21 English and Spanish. 22 3. The commissioner may adopt rules pursuant to chapter 17A 23 to establish additional requirements concerning the means by 24 which employers shall provide notice required by this section. 25 Sec. 10. NEW SECTION . 94.6 Termination of employment —— 26 limitations. 27 1. Unless an employee policy or collective bargaining 28 agreement provides for the payment of accrued benefits upon 29 termination, an employee shall not be entitled to payment for 30 the employee’s unused hours of accrued sick leave under this 31 chapter upon termination of employment. 32 2. An employee whose employment is terminated by an 33 employer, and who is subsequently rehired within one calendar 34 year of the date of termination of employment shall be entitled 35 -5- LSB 5413YH (5) 88 je/rn 5/ 47
H.F. 2223 to any unused hours of paid sick leave that had been accrued 1 by the employee prior to the termination of the employee’s 2 employment. An employee whose employment is terminated by 3 an employer, and who is subsequently rehired longer than one 4 calendar year after the date of termination of employment shall 5 not be entitled to any unused hours of paid sick leave that had 6 been accrued by the employee prior to the termination of the 7 employee’s employment unless agreed to by the employer. 8 Sec. 11. NEW SECTION . 94.7 Retaliation and discrimination 9 prohibited. 10 An employer shall not retaliate or in any other manner 11 discriminate against an employee because the employee has 12 requested or used accrued paid sick leave in accordance with 13 this chapter or the employer’s own paid sick leave policy, or 14 because the employee filed a complaint with the commissioner 15 alleging the employer’s violation of this chapter or has 16 cooperated in filing such a complaint. 17 Sec. 12. NEW SECTION . 94.8 Complaints —— remedies. 18 An employee may file a complaint with the commissioner 19 alleging a violation of this chapter. Upon receipt of the 20 complaint, the commissioner shall cause an investigation to be 21 made to the extent deemed appropriate. If the commissioner 22 determines from the investigation that the provisions of this 23 chapter have been violated, the commissioner shall bring an 24 action in the appropriate district court against such person. 25 The district court shall have jurisdiction, for cause shown, to 26 restrain violations of this chapter and order all appropriate 27 relief, including payment for accrued paid sick leave used by 28 the employee or rehiring or reinstatement of the employee to 29 the former position with back pay. 30 Sec. 13. NEW SECTION . 94.9 Civil penalties. 31 1. An employer who violates section 94.7 is subject to a 32 civil penalty of not more than five hundred dollars for each 33 violation. An employer who violates any other provision of 34 this chapter is subject to a civil penalty of not more than one 35 -6- LSB 5413YH (5) 88 je/rn 6/ 47
H.F. 2223 hundred dollars for each violation. 1 2. The commissioner may propose that an employer be assessed 2 a civil money penalty by serving the employer with notice of 3 such proposal in the same manner as an original notice is 4 served under the rules of civil procedure. Upon service of 5 such notice, the proposed assessment shall be treated as a 6 contested case under chapter 17A. 7 3. If an employer does not request a hearing pursuant 8 to subsection 2 or if the commissioner determines, after an 9 appropriate hearing, that an employer is in violation of this 10 chapter, the commissioner shall assess a civil money penalty, 11 consistent with the provisions of subsection 1. 12 4. An employer may seek judicial review of any assessment 13 rendered under subsection 3 by instituting proceedings for 14 judicial review pursuant to chapter 17A. 15 5. After the time for seeking judicial review has expired 16 or after all judicial review has been exhausted and the 17 commissioner’s assessment has been upheld, the commissioner 18 shall request the attorney general to recover the assessed 19 penalties in a civil action. Any civil money penalty recovered 20 shall be deposited in the general fund of the state. 21 Sec. 14. NEW SECTION . 94.10 Construction. 22 This chapter shall not be construed to prohibit an employer 23 from doing any of the following: 24 1. Providing more paid sick leave than is required under 25 this chapter or placing limitations on the amount and purposes 26 for which an employee may use such additional leave. 27 2. Establishing a policy whereby an employee may donate 28 unused accrued paid sick leave to another employee. 29 3. Taking disciplinary action against an employee who uses 30 accrued paid sick leave under this chapter for purposes other 31 than those provided in this chapter. 32 Sec. 15. NEW SECTION . 94.11 Rules. 33 The commissioner shall adopt rules pursuant to chapter 17A 34 to administer this chapter. 35 -7- LSB 5413YH (5) 88 je/rn 7/ 47
H.F. 2223 Sec. 16. NEW SECTION . 95.1 Definitions. 1 As used in this chapter, unless the context otherwise 2 requires: 3 1. “Commissioner” means the labor commissioner, appointed 4 pursuant to section 91.2, or the labor commissioner’s designee. 5 2. “Employee” means a natural person who is employed in this 6 state for wages by an employer. 7 3. “Employer” means a person, as defined in section 4.1, who 8 in this state employs for wages a natural person. 9 4. “Flexible working arrangement” means a change in an 10 employee’s terms and conditions of employment with respect to 11 work schedule, including but not limited to a modified work 12 schedule; changes in start or end times in a work schedule or 13 work shift; a predictable, stable work schedule; part-time 14 employment; job sharing arrangements; working from home; 15 telecommuting; limitations on the employee’s availability to 16 work; changes in the location of the employee’s worksite; 17 reduction or change in work duties; or part-year employment. 18 5. “On call” means time that an employer requires an 19 employee to be available to work, and to contact the employer 20 or the employer’s designee or wait to be contacted by the 21 employer or the employer’s designee to determine whether the 22 employee is required to report to work at that time. 23 6. “Shift” means the consecutive hours an employer requires 24 an employee to work or to be on call to work. Breaks totaling 25 two hours or less shall not be considered an interruption of 26 consecutive hours. 27 7. “Wages” means the same as defined in section 91A.2. 28 8. “Work schedule” means all of an employee’s regular and 29 on-call shifts during a work week. 30 9. “Work week” means a fixed, consecutive seven-day period. 31 Sec. 17. NEW SECTION . 95.2 Advance notice of work 32 schedules. 33 1. An employer shall provide each employee an initial 34 written work schedule at least twenty-one days before the first 35 -8- LSB 5413YH (5) 88 je/rn 8/ 47
H.F. 2223 day of the period covered by the work schedule. An employer 1 shall notify an employee of any change in the employee’s work 2 schedule before the change takes effect and shall provide the 3 employee with a revised written work schedule reflecting any 4 such change within twenty-four hours of making the change. 5 2. An employer shall not require an employee to work hours 6 not included in the employee’s initial written work schedule 7 without written consent in advance from the employee. 8 3. On or before the first day of an employee’s employment, 9 the employer shall provide the employee with a written 10 work schedule for the employee’s first twenty-one days of 11 employment. 12 4. An employer shall post a written work schedule that 13 includes the shifts of each current employee at a worksite 14 at least twenty-one days before the start of each work week, 15 whether or not the employee is scheduled to work or be on call 16 that week. The employer shall update the posted work schedule 17 within twenty-four hours of any change to the schedule. The 18 employer shall post the written work schedule in a place 19 that is readily accessible and visible to all employees at a 20 worksite. 21 5. An employer shall begin an employee’s work week on 22 the same day of each week, unless the employer provides the 23 employee written notice of a change in the start day of the 24 work week twenty-one days in advance of the change. 25 6. An employer shall not require an employee to seek or find 26 a replacement employee for any shifts or hours an employee is 27 unable to work. 28 7. An employee may request a change in work schedule, 29 request to limit the employee’s availability to work particular 30 hours, or otherwise provide input into the employee’s work 31 schedule. 32 Sec. 18. NEW SECTION . 95.3 Flexible working arrangements. 33 1. An employee may submit a written request to an employer 34 for a flexible working arrangement at any time. 35 -9- LSB 5413YH (5) 88 je/rn 9/ 47
H.F. 2223 2. An employer shall consider an employee’s request for a 1 flexible working arrangement in good faith and engage in an 2 interactive process with the employee to determine whether 3 the request can be granted in a manner consistent with the 4 employer’s business operations and legal or contractual 5 obligations. The employer shall initiate the interactive 6 process within two days of receiving the request. If the 7 employer requires additional information from the employee in 8 order to make a determination, the employer shall explain to 9 the employee what further information is needed and shall give 10 the employee a reasonable time to respond. 11 3. Upon the conclusion of the interactive process, an 12 employer shall notify the employee in writing of the employer’s 13 decision regarding a flexible working arrangement within two 14 days of the employer’s last communication with the employee 15 during the interactive process. 16 4. An employer is required to grant an employee a flexible 17 working arrangement if the employee requests a flexible working 18 arrangement for one of the following reasons and provides 19 documentation of the reason to the employer: 20 a. A serious medical condition of the employee. 21 b. The employee’s responsibilities as a caregiver. 22 c. The employee’s participation in a career-related 23 educational or training program. 24 d. For a part-time employee, a reason relating to another 25 job of the employee. 26 Sec. 19. NEW SECTION . 95.4 Predictability pay required. 27 1. An employer may make any of the following changes to an 28 employee’s shift within twenty-one days of, but not less than 29 twenty-four hours from, the start of the shift if the employer 30 pays the affected employee one hour of predictability pay: 31 a. Subtract hours from a shift. 32 b. Add hours to a shift or add a shift. 33 c. Cancel a shift. 34 d. Change the start or end time of a shift. 35 -10- LSB 5413YH (5) 88 je/rn 10/ 47
H.F. 2223 2. An employer may make any of the following changes to the 1 employee’s shift within twenty-four hours of the start of the 2 shift if the employer pays the affected employee one hour of 3 predictability pay: 4 a. Change the start or end time of a shift without changing 5 the total number of hours in the shift. 6 b. Add hours to a shift. 7 3. If an employer cancels an employee’s shift or reduces the 8 hours in an employee’s shift without notifying the employee at 9 least twenty-four hours before the shift would otherwise begin, 10 the employer shall pay the employee the lesser of four hours of 11 predictability pay or predictability pay equal to the number of 12 hours originally scheduled for the shift minus the number of 13 hours, if any, the employee actually worked for the shift. 14 4. Predictability pay shall be calculated on an hourly 15 basis and shall be equal to the employee’s regular wage rate. 16 Predictability pay shall be in addition to any wages earned for 17 work performed by the employee during a shift. An employer 18 shall pay predictability pay to an employee in the same pay 19 period in which it is accrued by the employee. 20 5. An employer is not required to pay an employee 21 predictability pay under this section when a work schedule 22 change is the result of any of the following: 23 a. The employee’s request, including but not limited to a 24 request to trade shifts with another employee, or to use sick 25 leave, vacation time, or any other type of leave. 26 b. A mutually agreed upon shift trade among employees. 27 Sec. 20. NEW SECTION . 95.5 Exception for suspended 28 operations. 29 The requirements of sections 95.2, 95.3, and 95.4 do not 30 apply to an employer when that employer’s operations are 31 suspended for one of the following reasons: 32 1. A threat to the employer’s employees or property. 33 2. A recommendation from a local, state, or federal agency 34 that work not begin or continue. 35 -11- LSB 5413YH (5) 88 je/rn 11/ 47
H.F. 2223 3. A failure of a public utility or sewer system. 1 4. A natural disaster or other weather-related event. 2 Sec. 21. NEW SECTION . 95.6 Right to rest. 3 An employee may decline to work any hours that begin sooner 4 than eleven hours after the end of the employee’s previous 5 shift. 6 Sec. 22. NEW SECTION . 95.7 Access to hours. 7 If an employer has additional hours of work available in 8 positions held by current employees, the employer shall offer 9 such hours to current qualified employees before hiring new 10 employees or contractors, including the use of temporary 11 services or staffing agencies. 12 Sec. 23. NEW SECTION . 95.8 Discrimination based on hours 13 of work prohibited. 14 1. An employer shall not pay a different regular rate of 15 pay to employees whose jobs require similar skill, effort, and 16 duties and are performed under similar working conditions, 17 based on the number of hours an employee is scheduled to work. 18 An employer may pay different hourly wages based on other 19 permissible factors, including but not limited to seniority 20 systems, merit, employee responsibilities, or systems that 21 measure earnings by quantity or quality of production. 22 2. An employer shall not condition eligibility for leave or 23 time off differently for employees whose jobs require similar 24 skill, effort, and duties and are performed under similar 25 working conditions, based on the number of hours an employee is 26 scheduled to work. An employer may prorate employee leave or 27 time off based on the number of hours the employee works. 28 3. An employer shall not condition eligibility for raises or 29 promotions differently for employees whose jobs require similar 30 skill, effort, and duties and are performed under similar 31 working conditions, based on the number of hours an employee 32 is scheduled to work. An employer may condition eligibility 33 for raises or promotions on other permissible factors, 34 including but not limited to seniority systems, merit, employee 35 -12- LSB 5413YH (5) 88 je/rn 12/ 47
H.F. 2223 responsibilities, or the nature and amount of an employee’s 1 work experience. 2 Sec. 24. NEW SECTION . 95.9 Retaliation prohibited. 3 1. An employer shall not discharge or take any other 4 adverse action against an employee in retaliation for asserting 5 any claim or right under this chapter, for assisting another 6 employee in doing so, or for informing another employee about 7 their rights under this chapter. An employer taking any 8 adverse action against an employee within one year of the 9 employee’s engaging in such activities raises a rebuttable 10 presumption that such action was retaliatory in nature. Such 11 presumption may be rebutted by clear and convincing evidence 12 that such action was taken for other permissible reasons. 13 2. Any employee may file a complaint with the commissioner 14 alleging retaliation within one year after such action occurs. 15 Upon receipt of the complaint, the commissioner shall cause an 16 investigation to be made to the extent deemed appropriate. If 17 the commissioner determines from the investigation that the 18 provisions of this section have been violated, the commissioner 19 shall bring an action in the appropriate district court against 20 such person. The district court shall have jurisdiction, for 21 cause shown, to restrain violations of this section and order 22 all appropriate relief including rehiring or reinstatement of 23 the employee to the former position with back pay. 24 Sec. 25. NEW SECTION . 95.10 Damages recoverable by an 25 employee. 26 In addition to any other remedy provided by law, an employee 27 may bring a civil action against an employer for a violation 28 of this chapter in any court of competent jurisdiction for 29 an amount equal to three times any damages incurred by the 30 employee. The employee may also recover court costs and 31 attorney fees and receive injunctive and other appropriate 32 relief as the court may order. 33 Sec. 26. NEW SECTION . 95.11 General powers and duties of 34 the commissioner. 35 -13- LSB 5413YH (5) 88 je/rn 13/ 47
H.F. 2223 1. The commissioner shall administer and enforce the 1 provisions of this chapter. The commissioner may hold hearings 2 and investigate charges of violations of this chapter. 3 2. The commissioner, consistent with due process of law, 4 may enter any place of employment to inspect records relevant 5 to the enforcement of this chapter, to question the employer 6 and employees, and to investigate such facts, conditions, or 7 matters as are deemed appropriate in determining whether any 8 person has violated the provisions of this chapter. However, 9 such entry by the commissioner shall only be in response to a 10 written complaint. 11 3. The commissioner may employ such qualified personnel 12 as are necessary for the enforcement of this chapter. Such 13 personnel shall be employed pursuant to chapter 8A, subchapter 14 IV. 15 4. The commissioner shall adopt rules pursuant to chapter 16 17A to administer this chapter. 17 Sec. 27. NEW SECTION . 95.12 Settlement of claims and suits 18 for wages. 19 1. Upon the written complaint by an employee of a 20 violation of this chapter, the commissioner may determine 21 whether the complaint may constitute an enforceable claim. 22 If for any reason the commissioner decides not to make such 23 determination, the commissioner shall so notify the complaining 24 employee within fourteen days of receipt of the complaint. 25 The commissioner shall otherwise notify the employee of 26 such determination within a reasonable time and if it is 27 determined that the complaint contains an enforceable claim, 28 the commissioner shall, with the consent of the complaining 29 employee, take an assignment in trust for the wages and for 30 any claim for liquidated damages without being bound by any of 31 the technical rules respecting the validity of the assignment. 32 However, the commissioner shall not accept a complaint after 33 one year from the date a violation occurred. 34 2. The commissioner, with the assistance of the office 35 -14- LSB 5413YH (5) 88 je/rn 14/ 47
H.F. 2223 of the attorney general if the commissioner requests such 1 assistance, shall, unless a settlement is reached under this 2 subsection, commence a civil action in any court of competent 3 jurisdiction to recover for the benefit of any employee 4 any claims that have been assigned to the commissioner for 5 recovery. The commissioner may also request reasonable and 6 necessary attorney fees. With the consent of the assigning 7 employee, the commissioner may also settle a claim on behalf 8 of the assigning employee. Proceedings under this subsection 9 and subsection 1 that precede commencement of a civil action 10 shall be conducted informally without any party having a right 11 to be heard before the commissioner. The commissioner may join 12 various assignments in one claim for the purpose of settling or 13 litigating claims. 14 3. The provisions of subsections 1 and 2 shall not be 15 construed to prevent an employee from settling or bringing a 16 civil action for damages under section 95.10 if the employee 17 has not assigned the claim under subsection 1. 18 4. A recovery of attorney fees, in the case of civil 19 actions brought under this section by the commissioner, shall 20 be remitted by the commissioner to the treasurer of state for 21 deposit in the general fund of the state. The commissioner 22 shall not be required to pay any filing fee or other court 23 costs. 24 Sec. 28. NEW SECTION . 95.13 Civil penalties. 25 1. An employer who violates the provisions of this chapter 26 or the rules adopted under it shall be subject to a civil 27 penalty of not more than five hundred dollars per pay period 28 for each violation. The commissioner may recover a civil 29 penalty according to the provisions of subsections 2 through 30 5. A civil penalty recovered shall be deposited in the general 31 fund of the state. 32 2. The commissioner may propose that an employer be assessed 33 a civil penalty by serving the employer with notice of such 34 proposal in the same manner as an original notice is served 35 -15- LSB 5413YH (5) 88 je/rn 15/ 47
H.F. 2223 under the rules of civil procedure. Upon service of such 1 notice, the proposed assessment shall be treated as a contested 2 case under chapter 17A, if the employer requests a hearing 3 within thirty days of being served. 4 3. If an employer does not request a hearing pursuant 5 to subsection 2 or if the commissioner determines, after an 6 appropriate hearing, that an employer is in violation of this 7 chapter, the commissioner shall assess a civil penalty under 8 subsection 1 which is rendered with due consideration for the 9 penalty amount in terms of the size of the employer’s business, 10 the gravity of the violation, the good faith of the employer, 11 and the history of previous violations. 12 4. An employer may seek judicial review of any assessment 13 made under subsection 3 by instituting proceedings for judicial 14 review pursuant to chapter 17A. However, such proceedings must 15 be instituted in the district court of the county in which the 16 violation or one of the violations occurred and within thirty 17 days of the day on which the employer was notified that an 18 assessment was made. Also, an employer may be required, at 19 the discretion of the district court and upon instituting such 20 proceedings, to deposit the amount assessed with the clerk of 21 the district court. Any moneys so deposited shall either be 22 returned to the employer or be forwarded to the commissioner 23 for deposit in the general fund of the state, depending on the 24 outcome of the judicial review, including any appeal to the 25 supreme court. 26 5. After the time for seeking judicial review has expired 27 or after all judicial review has been exhausted and the 28 commissioner’s assessment has been upheld, the commissioner 29 shall request the attorney general to recover the assessed 30 civil penalty in a civil action. 31 Sec. 29. NEW SECTION . 95.14 More generous policies 32 encouraged. 33 This chapter shall not be construed to discourage or 34 prohibit an employer from the adoption or retention of a policy 35 -16- LSB 5413YH (5) 88 je/rn 16/ 47
H.F. 2223 that meets or exceeds but does not otherwise conflict with the 1 minimum standards and requirements provided in this chapter. 2 Sec. 30. NEW SECTION . 95.15 Collective bargaining 3 agreements. 4 If any provision of this chapter conflicts with a provision 5 of an applicable collective bargaining agreement, the provision 6 of the collective bargaining agreement shall govern. 7 Sec. 31. NEW SECTION . 96A.1 Short title. 8 This chapter may be cited as the “Iowa Family and Medical 9 Leave Act” . 10 Sec. 32. NEW SECTION . 96A.2 Definitions. 11 As used in this chapter, unless the context otherwise 12 requires: 13 1. “Child” means a biological, adopted, or foster child, 14 a stepchild, a legal ward, or a child of a person standing in 15 loco parentis, regardless of the child’s age or dependency 16 status. 17 2. “Covered employer” means a private sector employer who 18 has ten or more employees for each working day during each of 19 twenty or more calendar workweeks in the current or previous 20 calendar year and a public employer without regard to the 21 number of employees employed. 22 3. “Department” means the department of workforce 23 development. 24 4. “Director” means the director of the department of 25 workforce development. 26 5. “Employee” means the same as defined in section 91A.2. 27 “Employee” does not include an independent contractor, a self- 28 employed person, or a patient or inmate employed by a state 29 or local institution to which the patient or inmate has been 30 sentenced or committed. 31 6. “Employer” means the same as defined in 91A.2. 32 “Employer” includes a temporary staffing agency or employment 33 agency. 34 7. “Employment benefits” means all benefits provided or 35 -17- LSB 5413YH (5) 88 je/rn 17/ 47
H.F. 2223 made available to an employee by an employer, including group 1 life insurance, health insurance, disability insurance, sick 2 leave, annual leave, educational benefits, and pensions except 3 benefits that are provided by a practice or written policy of 4 an employer or through an employee benefit plan as defined in 5 29 U.S.C. §1002(3). 6 8. “Family leave” means a leave taken from work by an 7 employee for any of the following reasons: 8 a. To participate in providing care, including physical or 9 psychological care, for a family member of the employee made 10 necessary by a serious health condition of the family member. 11 b. To bond with the employee’s child after the child’s 12 birth or with a child under the age of eighteen placed with the 13 employee for adoption or foster care. 14 c. Because of a qualifying exigency for a family member as 15 permitted under the federal Family and Medical Leave Act of 16 1993, as amended, and federal regulations as provided in 29 17 C.F.R. §825.126. 18 9. “Family member” means a child, parent, or spouse of an 19 employee. 20 10. “Gross earnings” means the same as defined in section 21 85.61. 22 11. “Health care provider” means a physician or other 23 health care practitioner licensed, accredited, registered, or 24 certified to perform specified health care services consistent 25 with state law. 26 12. “In loco parentis” means an individual who has 27 day-to-day responsibilities to care for or financially support 28 a child. 29 13. “Inpatient care” means an overnight stay in a hospital, 30 hospice, or residential medical care facility, including any 31 period of incapacity, or any subsequent treatment in connection 32 with such inpatient care. 33 14. “Medical leave” means a leave from work taken by an 34 employee made necessary by the employee’s own serious health 35 -18- LSB 5413YH (5) 88 je/rn 18/ 47
H.F. 2223 condition. 1 15. “Parent” means a biological, adoptive, step, or foster 2 father or mother, or any other individual who stands in 3 loco parentis to an employee or who stood in loco parentis 4 when the employee was a child. “Parent” does not include a 5 parent-in-law. 6 16. “Period of incapacity” means an inability to work, 7 attend school, or perform other regular daily activities due 8 to a serious health condition, treatment of a serious health 9 condition, or recovery from a serious health condition. 10 17. “Premium” or “premiums” means the payments required by 11 section 96A.12 and paid to the department for deposit in the 12 family and medical leave insurance account pursuant to section 13 96A.22. 14 18. “Public employer” means the state of Iowa, its 15 boards, commissions, agencies, departments, and its political 16 subdivisions including school districts and other special 17 purpose districts. 18 19. “Serious health condition” means an illness, injury, 19 impairment, physical condition, or mental condition that 20 involves inpatient care in a hospital, hospice, medical care 21 facility, or continued treatment or continuing supervision by 22 a health care provider. 23 20. “Spendable weekly earnings” means the amount remaining 24 after payroll taxes are deducted from an employee’s gross 25 weekly earnings. 26 21. “Spouse” means the person with whom an individual has 27 entered into marriage as defined or recognized under state law 28 for purposes of marriage in the state in which the marriage 29 was entered into or, in the case of a marriage entered into 30 outside of any state, if the marriage is valid in the place 31 where the marriage was entered into and the marriage could have 32 been entered into in at least one state, including a same sex 33 or common law marriage. 34 22. “Wages” means the same as defined in section 91A.2. 35 -19- LSB 5413YH (5) 88 je/rn 19/ 47
H.F. 2223 Sec. 33. NEW SECTION . 96A.3 Benefit eligibility. 1 An employee is eligible for family leave and medical leave 2 as provided in this chapter after working for a covered 3 employer for both a minimum of twelve consecutive months 4 immediately preceding the employee’s request for leave and a 5 minimum of one thousand two hundred fifty hours during that 6 twelve-consecutive-month period. 7 Sec. 34. NEW SECTION . 96A.4 Leave entitlement for a defined 8 twelve-month period. 9 1. An employee is entitled to a maximum of twelve weeks 10 of family leave during a defined period of twelve consecutive 11 months. 12 2. An employee is entitled to a maximum of twelve weeks of 13 medical leave during a defined period of twelve consecutive 14 months unless the employee experiences a serious health 15 condition, which is pregnancy-related, that results in a longer 16 period of incapacity in which case any extended medical leave 17 beyond twelve weeks shall conform with section 216.6. 18 3. An employee is entitled to a maximum combined total of 19 paid family leave and medical leave of sixteen weeks during a 20 defined period of twelve consecutive months. 21 4. An employee is not entitled to family leave or medical 22 leave of less than eight consecutive hours. 23 Sec. 35. NEW SECTION . 96A.5 Calculating the defined 24 twelve-month period. 25 The defined period of twelve consecutive months for 26 calculation of an eligible employee’s family leave or medical 27 leave entitlement begins on any of the following: 28 1. The date of birth of an employee’s child or the date 29 of placement of a child for adoption or foster care with the 30 employee. 31 2. The first day of family leave that an employee takes for 32 a family member’s serious health condition or a family member’s 33 qualifying exigency. 34 3. The first day of medical leave. 35 -20- LSB 5413YH (5) 88 je/rn 20/ 47
H.F. 2223 Sec. 36. NEW SECTION . 96A.6 Disqualification from leave 1 entitlement. 2 An eligible employee is disqualified for family leave or 3 medical leave benefits under this chapter for any of the 4 following: 5 1. An absence due to the employee’s willful intention to 6 injure or cause a sickness to the employee or to the employee’s 7 family member. 8 2. An injury or sickness caused by the employee engaging in 9 an illegal act. 10 3. The employee’s absence due to an employer taking any 11 disciplinary action against the employee. 12 Sec. 37. NEW SECTION . 96A.7 Employee notice to employer 13 of intent to take leave. 14 1. If leave for the birth of a child or placement of a child 15 for adoption or foster care with an employee is foreseeable, 16 the employee shall provide written notice not less than thirty 17 calendar days before the date the leave is to begin. 18 2. If the birth of a child or placement of a child for 19 adoption or foster care with an employee requires leave to 20 begin in less than thirty calendar days, the employee shall 21 provide written notice as far in advance as is practicable. 22 3. If leave for a family member’s serious health condition 23 or an employee’s serious health condition is foreseeable based 24 on planned medical treatment, the employee shall do all of the 25 following: 26 a. Make a reasonable effort to schedule such medical 27 treatment, subject to the recommendation of the employee’s or 28 family member’s health care provider as appropriate, to not 29 unduly disrupt the operations of the employer. 30 b. Provide the employer with not less than thirty calendar 31 days prior written notice of the employee’s intention to take 32 leave for a family member’s serious health condition or the 33 employee’s serious health condition. 34 4. If leave for a family member’s serious health condition 35 -21- LSB 5413YH (5) 88 je/rn 21/ 47
H.F. 2223 or an employee’s serious health condition is not foreseeable, 1 the employee shall provide written notice as far in advance as 2 is practicable. 3 Sec. 38. NEW SECTION . 96A.8 Weekly claim, certification, 4 and verification. 5 Beginning January 1, 2025, family leave or medical leave 6 insurance benefits are payable to an employee during a period 7 in which the employee is unable to perform the employee’s 8 regular or customary work because the employee is on family 9 leave or medical leave if the employee meets all of the 10 following requirements: 11 1. The employee files a weekly claim for benefits with the 12 department as required per rules adopted by the director. 13 2. The employee meets the eligibility requirements pursuant 14 to section 96A.3 or the elective coverage requirements pursuant 15 to section 96A.14. 16 3. The employee consents to the disclosure of information or 17 records that may be deemed private or confidential under state 18 or federal law. Disclosure of such information and records by 19 another state agency or an employer to the department shall 20 be solely for purposes related to the administration of this 21 chapter. Information and records disclosed by an employee 22 under this chapter shall not be public records as defined in 23 section 22.1. 24 4. The employee authorizes the health care provider of the 25 employee’s family member or of the employee, as applicable, to 26 complete a certification of a serious health condition in a 27 form as required by the director. 28 5. The employee attests that written notice has been 29 provided to the employee’s employer per section 96A.7. 30 6. The employee provides documentation of a family member’s 31 qualifying exigency if requested by the employee’s employer. 32 Sec. 39. NEW SECTION . 96A.9 Waiting period for leave 33 benefits. 34 Family leave or medical leave insurance benefits shall be 35 -22- LSB 5413YH (5) 88 je/rn 22/ 47
H.F. 2223 payable to an eligible employee following a waiting period 1 consisting of the first seven calendar days of leave. However, 2 no such waiting period applies to a leave for the birth or 3 placement of a child with an eligible employee. 4 Sec. 40. NEW SECTION . 96A.10 Weekly leave benefit amount. 5 1. The basis for the calculation of a leave benefit amount 6 shall be the weekly earnings of an eligible employee on the 7 day the leave is granted. “Weekly earnings” means the gross 8 earnings of an employee to which such employee would have been 9 entitled had the employee worked the employee’s customary hours 10 for the full pay period in which the employee is on family 11 leave or medical leave. Weekly earnings shall be computed as 12 follows, rounded to the nearest dollar, for an employee who is 13 paid on the following basis: 14 a. On a weekly pay period basis, the weekly earnings are the 15 weekly gross earnings. 16 b. On a biweekly pay period basis, the weekly earnings are 17 one-half of the biweekly gross earnings. 18 c. On a semimonthly pay period basis, the weekly earnings 19 are the semimonthly gross earnings multiplied by twenty-four 20 and then divided by fifty-two. 21 d. On a monthly pay period basis, the weekly earnings 22 are the monthly gross earnings multiplied by twelve and then 23 divided by fifty-two. 24 e. On a yearly pay period basis, the weekly earnings shall 25 be the yearly earnings divided by fifty-two. 26 f. On a daily or hourly basis, or by the output of an 27 employee, the weekly earnings shall be computed by dividing by 28 thirteen the earnings, including shift differential pay but 29 not including overtime or premium pay, of the employee earned 30 in the last completed period of thirteen consecutive calendar 31 weeks immediately preceding the start day of the leave. If 32 the employee was absent from employment for personal reasons 33 during part of the thirteen calendar weeks preceding the 34 leave, the employee’s weekly earnings shall be the amount the 35 -23- LSB 5413YH (5) 88 je/rn 23/ 47
H.F. 2223 employee would have earned had the employee worked when work 1 was available to other employees of the employer in a similar 2 occupation. A week that does not fairly reflect the employee’s 3 customary earnings shall be replaced by the closest previous 4 week with earnings that fairly represent the employee’s 5 customary earnings. 6 2. If on the date that leave begins an employee’s hourly 7 earnings cannot be ascertained, the earnings for the purpose 8 of calculating the benefit amount shall be the usual earnings 9 for similar services where such services are rendered by paid 10 employees. 11 3. If an employee earns either no wages or less than the 12 usual weekly earnings of a regular full-time adult laborer 13 in the line of work in which the employee is working in 14 that locality, the weekly earnings shall be one-fiftieth of 15 the total earnings which the employee has earned from all 16 employment during the twelve consecutive calendar months 17 immediately preceding the date that the employee’s leave 18 begins. 19 4. The weekly leave benefit amount payable to an employee 20 for any one week shall be eighty percent of the employee’s 21 spendable weekly earnings, but shall not exceed an amount equal 22 to two hundred percent of the statewide average weekly wage 23 paid to employees as determined by the department pursuant to 24 section 96.19 and in effect on the date that the employee’s 25 leave commences. However, the weekly leave benefit amount 26 shall be a minimum equal to the lesser of the weekly leave 27 benefit amount of a person whose gross weekly earnings are 28 thirty-five percent of the statewide average weekly wage, or to 29 the spendable weekly earnings of the employee. 30 Sec. 41. NEW SECTION . 96A.11 Payment of benefits to an 31 eligible employee. 32 1. The department shall send the first benefit payment to 33 an employee within ten calendar days after the first properly 34 completed weekly claim from the employee is received by 35 -24- LSB 5413YH (5) 88 je/rn 24/ 47
H.F. 2223 the department. Subsequent payments shall be sent at least 1 biweekly to an eligible employee if a properly completed weekly 2 claim from the employee is received by the department. 3 2. If an employer contests an employee’s initial claim 4 for family leave or medical leave benefits, the employer must 5 notify the employee and the department in the manner prescribed 6 by the director within ten calendar days of the employer’s 7 receipt of notice from the department of the employee’s filing 8 of a claim for benefits pursuant to section 96A.21, subsection 9 3. Failure to timely contest an initial application shall 10 constitute a waiver of objection to the family leave or medical 11 leave claim. 12 3. If the department or the employer contests an employee’s 13 eligibility for benefits after the employee begins receiving 14 benefits the employee shall continue to be paid benefits 15 conditionally for any weeks for which the employee files a 16 claim for benefits. The employee’s right to retain such 17 benefit payments shall be conditioned upon the department’s 18 finding that the employee is eligible for such benefit 19 payments. 20 a. At an employee’s request, the department shall hold 21 conditional benefit payments until the department resolves the 22 employee’s eligibility status. 23 b. Payment shall be issued promptly for any withheld benefit 24 payments if the department determines that an employee is 25 eligible for benefits. 26 c. If the department determines that an employee is 27 ineligible for the conditionally paid benefits, the employee 28 shall repay the overpayment per rules as adopted by the 29 director. 30 Sec. 42. NEW SECTION . 96A.12 Funding the family leave and 31 medical leave insurance program. 32 1. Beginning on January 1, 2023, and ending December 33 31, 2024, the department shall assess for each employee 34 in employment with a covered employer a premium rate of 35 -25- LSB 5413YH (5) 88 je/rn 25/ 47
H.F. 2223 four-tenths of one percent of an employee’s wages based on the 1 amount of the individual’s wages, subject to subsection 6. 2 a. The premium rate for family leave benefits shall be equal 3 to one-third of the total premium rate. 4 b. The premium rate for medical leave benefits shall be 5 equal to two-thirds of the total premium rate. 6 2. For calendar year 2025 and subsequent calendar years the 7 director shall determine the percentage of paid claims related 8 to family leave benefits and the percentage of paid claims 9 related to medical leave benefits and adjust the premium rates 10 set in subsection 1 by the proportional share of claims paid 11 for both types of leave. 12 3. For family leave premiums a covered employer may deduct 13 up to forty-five percent of the full amount of the required 14 premiums from the wages of each employee. The remaining 15 fifty-five percent of the required premiums shall be paid by 16 the covered employer. 17 4. For medical leave premiums a covered employer may deduct 18 up to forty-five percent of the full amount of the required 19 premiums from the wages of each employee. The remaining 20 fifty-five percent of the required premiums shall be paid by 21 the covered employer. 22 5. A covered employer may elect to pay all or any portion of 23 the employee’s share of the premiums for family leave benefits 24 or medical leave benefits or both. 25 6. The director shall annually set a maximum limit on the 26 amount of an employee’s wages that are subject to a premium 27 assessment under this section that is equal to the contribution 28 and benefit base for the calendar year as determined by the 29 United States social security administration for purposes of 30 26 U.S.C. §3121(a). 31 7. For calendar year 2025 and subsequent calendar years, 32 the total premium rate shall be based on the family leave and 33 medical leave insurance account balance ratio as of September 34 30 of the previous year. The director shall calculate the 35 -26- LSB 5413YH (5) 88 je/rn 26/ 47
H.F. 2223 account balance ratio by dividing the balance of the family 1 leave and medical leave insurance account by the total wages 2 paid by covered employers. The division shall be carried 3 to the fourth decimal place with the remaining fraction 4 disregarded unless it amounts to five hundred thousandths or 5 more in which case the fourth decimal place shall be rounded 6 to the next higher digit. If the family leave and medical 7 leave insurance account balance ratio is any of the following 8 percentages, the premium shall be the following percentage of 9 an employee’s wages subject to a premium assessment: 10 a. If the ratio is zero to nine hundredths of one percent, 11 the premium shall be six-tenths of one percent. 12 b. If the ratio is one-tenth of one percent to nineteen 13 hundredths of one percent, the premium shall be five-tenths of 14 one percent. 15 c. If the ratio is two-tenths of one percent to twenty-nine 16 hundredths of one percent, the premium shall be four-tenths of 17 one percent. 18 d. If the ratio is three-tenths of one percent to 19 thirty-nine hundredths of one percent, the premium shall be 20 three-tenths of one percent. 21 e. If the ratio is four-tenths of one percent to forty-nine 22 hundredths of one percent, the premium shall be two-tenths of 23 one percent. 24 f. If the ratio is five-tenths of one percent or greater, 25 the premium shall be one-tenth of one percent. 26 8. Beginning January 1, 2025, if the account balance ratio 27 calculated in subsection 7 is below five hundredths of one 28 percent, the director shall assess a solvency surcharge at 29 the lowest rate necessary to provide revenue to pay for the 30 administrative and benefit costs of family leave and medical 31 leave insurance for the calendar year. The solvency surcharge 32 shall be at least one-tenth of one percent and no more than 33 six-tenths of one percent and shall be added to the total 34 premium rate assessed to each employee of a covered employer 35 -27- LSB 5413YH (5) 88 je/rn 27/ 47
H.F. 2223 for family leave and medical leave benefits. 1 9. A covered employer shall collect all required premiums 2 and surcharges from the employer’s employees through payroll 3 deductions and shall remit the amount collected and the amount 4 to be paid by the employer to the department as required by 5 rules adopted by the director. 6 10. On September 30 of each year the department shall 7 average the number of employees reported by an employer over 8 the last four completed calendar quarters to determine the 9 number of employees employed by the employer for the purpose 10 of determining if an employer shall be considered a covered 11 employer for the next calendar year. 12 Sec. 43. NEW SECTION . 96A.13 Waiver of premium for 13 out-of-state employee. 14 1. An employer may file an application with the department 15 for a conditional waiver of the payment of family leave and 16 medical leave premiums assessed under section 96A.12 for an 17 employee who meets all of the following requirements: 18 a. The employee is physically based outside of the state. 19 b. The employee is physically working in the state on a 20 limited or temporary work schedule. 21 c. The employee is not expected to be physically working 22 in the state for one thousand two hundred fifty hours or more 23 during any consecutive twelve-month period. 24 2. The department shall approve an application that is 25 signed by both the employee and the employee’s employer 26 attesting to compliance with the requirements of subsection 1. 27 3. If the employee physically works in the state for one 28 thousand two hundred fifty hours or more in any consecutive 29 twelve-month period, the conditional waiver shall expire and 30 the employer and employee shall be responsible for all premiums 31 pursuant to section 96A.12 for the consecutive twelve-month 32 period in which the employee worked one thousand two hundred 33 fifty hours or more. Upon submission of the premiums by the 34 employer to the department, the employee shall be credited for 35 -28- LSB 5413YH (5) 88 je/rn 28/ 47
H.F. 2223 the hours worked during that consecutive twelve-month period 1 and shall be eligible for benefits under this chapter. 2 Sec. 44. NEW SECTION . 96A.14 Self-employed persons elective 3 participation in the family leave and medical leave insurance 4 program. 5 1. A self-employed person electing to participate in the 6 family leave and medical leave insurance program shall be 7 considered either an employer or employee under this chapter as 8 the context so dictates. 9 2. For benefits payable beginning January 1, 2025, a 10 self-employed person may elect to participate in the family 11 leave and medical leave insurance program under this chapter 12 if the self-employed person meets all of the following 13 requirements: 14 a. The initial participation period for the self-employed 15 person must be a minimum of three years. 16 b. Any subsequent period of participation by the 17 self-employed person must be for a minimum of one year. 18 c. The self-employed person must participate in both family 19 leave and medical leave. 20 d. One hundred percent of all premiums assessed under 21 section 96A.12 shall be paid by the self-employed person. 22 3. A self-employed person shall file a written notice of 23 election of elective coverage with the department in the manner 24 required by the director. 25 4. A self-employed person shall be eligible for 26 family leave and medical leave benefits after working one 27 thousand two hundred fifty hours in the state during the 28 twelve-consecutive-month period immediately following the date 29 of the written notice the self-employed person filed pursuant 30 to subsection 3. 31 5. A self-employed person who has elected coverage may 32 withdraw from coverage within thirty calendar days after the 33 end of each participation period pursuant to subsection 2, 34 paragraph “a” or “b” , by filing a written notice of withdrawal 35 -29- LSB 5413YH (5) 88 je/rn 29/ 47
H.F. 2223 as required by the director. The withdrawal shall take effect 1 no sooner than thirty calendar days after the self-employed 2 person files the notice of withdrawal. 3 6. If a self-employed person fails to submit the required 4 premium payments, the department may cancel the person’s 5 elective coverage. The cancellation shall be effective no 6 sooner than thirty days from the date of a written notice 7 from the department to the self-employed person advising the 8 self-employed person of the impending cancellation of the 9 self-employed person’s elective coverage. The department shall 10 collect all due and unpaid premiums from the self-employed 11 person for the remainder of the participation period pursuant 12 to subsection 2, paragraph “a” or “b” . 13 Sec. 45. NEW SECTION . 96A.15 Employment protection. 14 1. An eligible employee who takes family leave or medical 15 leave under this chapter is entitled to any of the following on 16 the employee’s return from leave: 17 a. To be restored to the same position held by the employee 18 when the employee’s leave commenced. 19 b. To be restored to an equivalent position with equivalent 20 employment benefits, pay, and other terms and conditions of 21 employment. 22 2. As a condition of restoration under subsection 1 for an 23 employee who has taken medical leave, the employer may apply 24 a uniform policy to the employee that requires an employee to 25 provide certification from the employee’s health care provider 26 that the employee is able to resume work. 27 3. Taking leave under this chapter shall not result in the 28 loss of any employment benefits accrued by an employee prior to 29 the date on which the employee’s leave commenced. 30 4. This section shall not be construed to entitle a restored 31 employee to any of the following: 32 a. The accrual of any seniority or employment benefits 33 during any period of leave. 34 b. Any right, benefit, or position of employment other than 35 -30- LSB 5413YH (5) 88 je/rn 30/ 47
H.F. 2223 any right, benefit, or position of employment to which the 1 employee would have been entitled had the employee not taken 2 leave. 3 5. This section shall not be construed to prohibit an 4 employer from requiring an employee on leave to report 5 periodically to the employer on the status and intention of the 6 employee to return to work. 7 6. An employer may deny restoration under this section to 8 a salaried employee who is among the ten percent highest-paid 9 employees employed by the employer within seventy-five miles 10 of the facility at which the employee is employed if all of the 11 following apply: 12 a. Denial of restoration is necessary to prevent substantial 13 and grievous economic injury to the operations of the employer. 14 b. The employer notifies the employee of the intent of the 15 employer to deny restoration on such basis at the time the 16 employer determines such basis exists. 17 c. The employee is on leave and elects not to return 18 to employment after receiving the employer’s notice of the 19 employer’s intent not to restore the employee. 20 7. This section shall not be construed as providing an 21 employee greater restoration rights than those required under 22 the federal Family and Medical Leave Act of 1993, as amended. 23 Sec. 46. NEW SECTION . 96A.16 Maintenance of existing health 24 benefits. 25 If required by the federal Family and Medical Leave 26 Act of 1993, as amended, an employer shall maintain any 27 existing health benefits of an employee for the duration of 28 an employee’s leave under this chapter. If the employer and 29 the employee normally share the cost of such existing health 30 benefits, the employee shall remain responsible for the 31 employee’s share of the cost of such. 32 Sec. 47. NEW SECTION . 96A.17 Employer submission of reports 33 and maintenance of records. 34 1. As specified by the director and in the form and at the 35 -31- LSB 5413YH (5) 88 je/rn 31/ 47
H.F. 2223 time as required by the director, an employer shall submit 1 reports and furnish information related to the family leave and 2 medical leave insurance program to the director. 3 2. An employer shall maintain at the employer’s primary 4 place of business a record of employment for each employee from 5 which any information needed by the department for purposes of 6 this chapter may be obtained. Such record shall be maintained 7 for ten years from the date on which an eligible employee 8 applies for family leave or medical leave under this chapter. 9 The record shall be open for inspection by the director at all 10 times. All personnel and employee medical records shall be 11 maintained by the employer in compliance with all applicable 12 federal and state laws. 13 Sec. 48. NEW SECTION . 96A.18 Coordination of family leave 14 and medical leave with other laws and with employer policies. 15 1. Family leave or medical leave taken by an employee under 16 this chapter shall be in addition to any leave available to 17 an employee as required by applicable state or federal law 18 for sickness or temporary disability because of pregnancy or 19 childbirth. 20 2. Family leave or medical leave taken by an employee under 21 this chapter shall be taken concurrently with any leave taken 22 under the federal Family and Medical Leave Act of 1993, as 23 amended. 24 3. An employer may allow an employee who has accrued 25 vacation, sick, or other paid time off to choose to use either 26 such accrued time or to receive paid family leave or medical 27 leave insurance benefits under this chapter. 28 Sec. 49. NEW SECTION . 96A.19 Relationship to other state 29 and federal benefits. 30 In any week an employee is eligible to receive benefits under 31 chapter 85, 85A, 85B, or 96, or any other applicable state or 32 federal unemployment compensation, workers’ compensation, or 33 disability insurance laws, the employee is disqualified from 34 receiving family leave or medical leave insurance benefits 35 -32- LSB 5413YH (5) 88 je/rn 32/ 47
H.F. 2223 under this chapter. 1 Sec. 50. NEW SECTION . 96A.20 Discrimination prohibited. 2 This chapter shall not be construed to modify or affect any 3 federal, state, or local law prohibiting discrimination on the 4 basis of age, race, creed, color, sex, sexual orientation, 5 gender identity, national origin, religion, disability, or 6 other protected category. 7 Sec. 51. NEW SECTION . 96A.21 Department to administer 8 family leave and medical leave insurance program and conduct 9 outreach. 10 1. The director shall establish and administer the family 11 leave and medical leave insurance program and disburse family 12 leave and medical leave benefits to an eligible employee as 13 specified in this chapter. 14 2. The director shall establish procedures and forms for 15 an employee to file an application for benefits under this 16 chapter. 17 3. The department shall notify an employer within five 18 business days of an employee filing a claim for family leave or 19 medical leave insurance benefits. 20 4. Information and records pertaining to an employee under 21 this chapter that are maintained by the department shall 22 be confidential and shall only be available to department 23 personnel in the performance of official duties. 24 5. The director shall develop and implement an outreach 25 program to ensure that employers and employees are aware of 26 the family leave and medical leave insurance program and are 27 aware of the leave benefits available to eligible employees. 28 Outreach information shall explain in an easy-to-understand 29 format all of the following: 30 a. Eligibility requirements. 31 b. The application process. 32 c. How weekly benefits are calculated and the minimum and 33 maximum weekly benefit amount. 34 d. Restoration rights. 35 -33- LSB 5413YH (5) 88 je/rn 33/ 47
H.F. 2223 e. Nondiscrimination rights. 1 f. Confidentiality. 2 g. The relationship between employment protection, leave 3 from employment, wage replacement benefits under this chapter 4 and other laws, and employer policies. 5 6. The department shall be authorized to inspect and audit 6 an employer’s files and records relating to the family leave 7 and medical leave insurance program under this chapter. 8 Sec. 52. NEW SECTION . 96A.22 Family leave and medical leave 9 insurance account. 10 1. The family leave and medical leave insurance account 11 is created as a separate account in the state treasury in the 12 custody of the treasurer of state. 13 2. The director shall deposit all receipts from premiums 14 imposed under this chapter into such account. Expenditures 15 from the account shall be used only for the purposes of the 16 family leave and medical leave insurance program and only as 17 authorized by the director. 18 3. All premiums deposited in the account shall remain in 19 the account until expended pursuant to the requirements of this 20 chapter. 21 Sec. 53. NEW SECTION . 96A.23 Rules. 22 The director shall adopt rules pursuant to chapter 17A to 23 administer this chapter. 24 Sec. 54. NEW SECTION . 96A.24 Enforcement. 25 The director may take any action under the director’s 26 authority to enforce compliance with this chapter. 27 Sec. 55. DIRECTOR ANALYSIS OF FUNDING THE FAMILY LEAVE 28 AND MEDICAL LEAVE INSURANCE PROGRAM AND REPORT TO THE GENERAL 29 ASSEMBLY. The director of the department of workforce 30 development shall conduct an analysis of the family leave 31 and medical leave insurance program as funded pursuant to 32 section 96A.12, as enacted in this Act, and of the benefits 33 paid pursuant to section 96A.10, as enacted in this Act. The 34 director shall determine if the premium rates and benefit 35 -34- LSB 5413YH (5) 88 je/rn 34/ 47
H.F. 2223 levels are appropriate to fully fund and maintain the solvency 1 of the family leave and medical leave insurance account. The 2 director shall submit the director’s findings in a report to 3 the general assembly and the governor no later than January 11, 4 2021. 5 Sec. 56. APPLICABILITY. 6 1. This Act applies to collective bargaining agreements 7 entered into on or after the effective date of this Act. 8 2. For an employee hired prior to the effective date of 9 this Act, paid sick leave required pursuant to chapter 94, as 10 enacted by this Act, shall begin to accrue on the effective 11 date of this Act. For an employee hired on or after the 12 effective date of this Act, paid sick leave required pursuant 13 to this Act shall begin to accrue on the service employee’s 14 date of hire. 15 EXPLANATION 16 The inclusion of this explanation does not constitute agreement with 17 the explanation’s substance by the members of the general assembly. 18 This bill provides for paid sick leave and scheduling 19 procedures for employees and establishes a family leave and 20 medical leave insurance program. 21 PAID SICK LEAVE. The bill requires an employer to provide 22 paid sick leave annually to each employee employed by the 23 employer. The leave shall accrue at a rate of one hour of leave 24 for each 56 hours worked by an employee, up to a maximum of 56 25 hours per calendar year. An employee shall not be entitled to 26 use more than 56 accrued hours of paid sick leave per year. 27 Fifty-six unused accrued hours of paid sick leave can be 28 carried over from one calendar year to the following calendar 29 year. An employee shall begin to accrue paid sick leave on 30 the first day of the employee’s employment by an employer. An 31 employee may use accrued paid sick leave beginning 60 calendar 32 days after the first day of the employee’s employment by an 33 employer. An employer shall pay an employee for accrued paid 34 sick leave at a pay rate equal to the normal hourly wage for 35 -35- LSB 5413YH (5) 88 je/rn 35/ 47
H.F. 2223 that employee. However, an employer who employs 15 or less 1 employees in Iowa may instead provide an employee with unpaid 2 leave or leave paid at a rate less than the normal hourly wage 3 for that employee. 4 The bill defines “employee” as an individual who is employed 5 in Iowa for compensation by an employer. The bill defines 6 “employer” as any person that employs employees in Iowa. 7 The bill provides permitted uses of accrued paid sick leave, 8 including medical diagnosis, care, or treatment of mental 9 illness or physical illness, injury, or a health condition 10 of an employee or the employee’s spouse or child, as well as 11 additional uses for an employee who is a victim of domestic 12 abuse or sexual assault. 13 The bill permits an employer to require advance notice of an 14 employee’s intent to use accrued paid sick leave and, for leave 15 of three or more consecutive days, reasonable documentation 16 that such leave is being taken for the purposes permitted by 17 the bill. 18 The bill requires an employer to provide notice to an 19 employee at the time of hiring of the rights provided by the 20 bill. An employer may satisfy the requirement by displaying a 21 poster at the employer’s place of business that contains the 22 required information. 23 The bill provides for the reinstatement of unused accrued 24 paid sick leave if an employee whose employment is terminated 25 is rehired by the employer within one calendar year. 26 The bill prohibits an employer from retaliating or in any 27 other manner discriminating against an employee because the 28 employee has requested or used paid sick leave or filed a 29 complaint with the labor commissioner alleging the employer’s 30 violation of the bill or has cooperated in filing such a 31 complaint. 32 The bill permits an employee to file a complaint with the 33 commissioner alleging a violation of the bill. Upon receipt 34 of the complaint, the commissioner shall investigate to the 35 -36- LSB 5413YH (5) 88 je/rn 36/ 47
H.F. 2223 extent deemed appropriate. If the commissioner determines 1 that the provisions of the bill have been violated, the 2 commissioner shall bring an action in district court. The 3 district court shall have jurisdiction, for cause shown, to 4 restrain violations of the bill and order appropriate relief, 5 including payment for accrued paid sick leave used by the 6 employee or rehiring or reinstatement of the employee to the 7 former position with back pay. 8 An employer who violates the prohibition against retaliation 9 or other discrimination in the bill is subject to a civil 10 penalty of not more than $500 per violation. An employer who 11 violates any other provision of the bill is subject to a civil 12 penalty of not more than $100 per violation. The bill provides 13 procedures for the imposition, contestation, and collection of 14 such penalties. 15 The bill does not prohibit an employer from providing more 16 paid sick leave than required by the bill, allowing donation of 17 unused accrued paid sick leave from one employee to another, or 18 taking disciplinary action against an employee who uses accrued 19 paid sick leave under the bill for purposes other than those 20 provided in the bill. 21 For an employee hired prior to the effective date of the 22 bill, paid sick leave shall begin to accrue on the effective 23 date of the bill. For an employee hired on or after the 24 effective date of the bill, paid sick leave shall begin to 25 accrue on the employee’s date of hire. 26 EMPLOYEE SCHEDULING. The bill requires an employer to 27 provide each employee an initial written work schedule at least 28 21 days before the first day of the period covered by the work 29 schedule. The bill requires an employer to notify an employee 30 of any change in the employee’s work schedule before the change 31 takes effect and provide the employee with a revised written 32 work schedule reflecting any change within 24 hours of making 33 the change. The bill prohibits an employer from requiring an 34 employee to work hours not included in the employee’s initial 35 -37- LSB 5413YH (5) 88 je/rn 37/ 47
H.F. 2223 written work schedule without written consent in advance 1 from the employee. The bill requires an employer to provide 2 an employee with a written work schedule for the employee’s 3 first 21 days of employment on or before the first day of the 4 employee’s employment. 5 The bill requires an employer to post a written schedule 6 that includes the shifts of each current employee at a worksite 7 at least 21 days before the start of each work week and to 8 update the posted schedule within 24 hours of any change to the 9 schedule. The bill requires an employer to begin an employee’s 10 work week on the same day of each week, unless the employer 11 provides written notice of a change in the start day of the 12 work week 21 days in advance. 13 The bill prohibits an employer from requiring an employee to 14 seek or find a replacement employee for any shifts or hours an 15 employee is unable to work. 16 The bill permits an employee to request a change in work 17 schedule, request to limit the employee’s availability to 18 work particular hours, or otherwise provide input into the 19 employee’s work schedule. 20 The bill permits an employee to submit a written request 21 to an employer for a flexible working arrangement at any 22 time. The bill defines “flexible working arrangement” as a 23 change in an employee’s terms and conditions of employment 24 with respect to work schedule, including but not limited to a 25 modified work schedule; changes in start or end times in a work 26 schedule or work shift; a predictable, stable work schedule; 27 part-time employment; job sharing arrangements; working from 28 home; telecommuting; limitations on the employee’s availability 29 to work; changes in the location of the employee’s worksite; 30 reduction or change in work duties; or part-year employment. 31 The bill requires an employer to consider an employee’s 32 request for a flexible working arrangement in good faith and 33 engage in an interactive process with the employee to determine 34 whether the request can be granted in a manner consistent with 35 -38- LSB 5413YH (5) 88 je/rn 38/ 47
H.F. 2223 the employer’s business operations and legal or contractual 1 obligations. The bill requires the employer to initiate the 2 interactive process within two days of receiving the request. 3 The bill permits an employer to request additional information 4 from the employee regarding the request. 5 The bill requires the employer to notify the employee 6 in writing of the employer’s decision regarding a flexible 7 working arrangement within two days of the employer’s last 8 communication with the employee during the interactive process. 9 The bill requires an employer to grant an employee a flexible 10 working arrangement if the employee requests a flexible working 11 arrangement for one of several reasons set out in the bill 12 relating to medical conditions, caregiver responsibilities, 13 training, and part-time employment and provides documentation 14 of the reason to the employer. 15 The bill permits an employer to make certain changes set out 16 in the bill to an employee’s shift if the employer pays the 17 affected employee one hour of predictability pay in addition 18 to wages earned for each affected shift. The bill requires 19 an employer to pay the employee the lesser of four hours of 20 predictability pay or predictability pay equal to the number 21 of hours originally scheduled for a shift minus the number of 22 hours, if any, the employee actually worked for the shift, if 23 the employer cancels an employee’s shift or reduces the hours 24 in an employee’s shift without notifying the employee at least 25 24 hours before the shift would otherwise begin. 26 The bill specifies that predictability pay shall be 27 calculated on an hourly basis, shall be equal to an employee’s 28 regular wage rate, shall be in addition to any wages earned 29 for work performed by the employee during a shift, and shall 30 be paid in the same pay period in which it is accrued by the 31 employee. Predictability pay is not required for a schedule 32 change resulting from an employee’s request or a mutually 33 agreed upon shift trade among employees. The bill defines 34 predictability pay as part of an employee’s wages for purposes 35 -39- LSB 5413YH (5) 88 je/rn 39/ 47
H.F. 2223 of Code chapter 91A, the Iowa wage payment collection law. 1 The requirements of the bill relating to advance notice 2 of work schedules, flexible working arrangements, and 3 predictability pay do not apply to an employer when that 4 employer’s operations are suspended for one of certain reasons 5 set out in the bill. 6 The bill permits an employee to decline to work any hours 7 that begin sooner than 11 hours after the end of the employee’s 8 previous shift. 9 The bill requires an employer who has additional hours 10 of work available in positions held by current employees to 11 offer such hours to current qualified employees before hiring 12 new employees or contractors, including the use of temporary 13 services or staffing agencies. 14 The bill prohibits an employer from engaging in various 15 discriminatory actions based on the number of hours an employee 16 is scheduled to work. The bill prohibits an employer from 17 paying a different regular rate of pay, condition eligibility 18 for leave or time off differently, or condition eligibility for 19 raises or promotions differently for similar employees based on 20 the number of hours they are scheduled to work. 21 The bill prohibits an employer from discharging or taking 22 any other adverse action against an employee in retaliation 23 for asserting any claim or right under the bill, for assisting 24 another employee in doing so, or for informing another employee 25 about their rights under the bill. The bill specifies that an 26 employer taking any adverse action against an employee within 27 one year of the employee’s engaging in such activities raises 28 a rebuttable presumption that such action was retaliatory 29 in nature. Such presumption may be rebutted by clear and 30 convincing evidence that such action was taken for other 31 permissible reasons. 32 In addition to any other remedy provided by law, an employee 33 may bring a civil action against an employer for a violation of 34 the bill in any court of competent jurisdiction for an amount 35 -40- LSB 5413YH (5) 88 je/rn 40/ 47
H.F. 2223 equal to three times any damages incurred by the employee. The 1 employee may also recover court costs and attorney fees and 2 receive injunctive and other appropriate relief as the court 3 may order. 4 The bill provides powers and duties for the labor 5 commissioner relating to the administration and enforcement 6 of the bill, including holding hearings, conducting 7 investigations, settling complaints, employing qualified 8 personnel, and adopting rules. 9 The bill provides complaint, investigation, enforcement, and 10 settlement processes for violations of the bill. An employer 11 who violates the bill is subject to a civil penalty of not 12 more than $500 per pay period for each violation. The bill 13 provides administrative and judicial processes for imposing and 14 recovering such penalties. 15 The bill shall not be construed to discourage or prohibit 16 an employer from the adoption or retention of a policy that 17 meets or exceeds but does not otherwise conflict with the 18 minimum standards and requirements provided in the bill. If 19 any provision of the bill conflicts with a provision of an 20 applicable collective bargaining agreement, the provision of 21 the collective bargaining agreement shall govern. 22 FAMILY LEAVE AND MEDICAL LEAVE INSURANCE. The bill 23 establishes a family leave and medical leave insurance program 24 (program), administered by the director of the department of 25 workforce development, that provides for paid, job-protected 26 leave for certain family leave and medical leave reasons for 27 eligible employees of specified employers. 28 An employee is eligible for family leave and medical leave 29 after working for a covered employer, as defined in the bill, 30 for a minimum of 12 consecutive months and a minimum of 1,250 31 hours during the 12 consecutive-month period immediately 32 preceding the employee’s request for leave. Family leave and 33 medical leave are defined in the bill. Family leave includes 34 leave to care for an immediate family member with a serious 35 -41- LSB 5413YH (5) 88 je/rn 41/ 47
H.F. 2223 health condition, to bond with a newborn child or adopted or 1 foster child, or for a qualifying exigency for a family member 2 as permitted under the federal Family and Medical Leave Act of 3 1993, as amended (FMLA). Medical leave includes leave due to 4 the employee’s own serious health condition. Serious health 5 condition is defined in the bill. 6 The bill provides that an eligible employee may not receive 7 more than 12 weeks of family leave, 12 weeks of medical leave, 8 or 16 weeks of combined family and medical leave in a defined 9 consecutive 12-month period. The defined consecutive 12-month 10 period begins on the date of the birth of a child or placement 11 of a child for adoption or foster care with an eligible 12 employee, or on the first date that an eligible employee takes 13 either family leave or medical leave. The minimum duration of 14 leave an eligible employee may take is eight consecutive hours. 15 An employee is disqualified for family leave and medical 16 leave benefits for an absence due to the employee purposefully 17 causing injury or sickness to the employee or a family member, 18 for an absence caused by an illness or injury due to the 19 employee engaging in an illegal act, or an absence due to an 20 employer taking disciplinary action against the employee. 21 An employee must provide a minimum of 30 days notice to an 22 employer of the employee’s intent to take leave for the birth 23 of a child or placement of a child for adoption or foster care, 24 or of the employee’s intent to take family leave or medical 25 leave. If circumstances require an employee’s leave to begin 26 in less than 30 days, the employee must give as much notice as 27 is practicable. If an eligible employee requests medical leave 28 or family leave, the employee must make a reasonable effort to 29 schedule their own, or their family member’s medical treatment, 30 to not unduly disrupt the employer’s operations. 31 The bill requires an eligible employee to file a claim 32 for benefits as required by the director. The employee 33 must consent to the disclosure of potentially private or 34 confidential information to and from the department, and the 35 -42- LSB 5413YH (5) 88 je/rn 42/ 47
H.F. 2223 employee’s employer, for administration of the family leave 1 or medical leave. The bill specifies that such information 2 is not a public record pursuant to Code section 22.1. The 3 employee must attest that the employee has provided notice of 4 the employee’s intent to take leave to the employee’s employer. 5 The employee must also authorize the employee’s, or the 6 employee’s family member’s health care provider, to complete 7 a certification of a serious health condition as required by 8 the director. 9 The bill provides for a seven-day waiting period before 10 benefits are payable. There is no waiting period for benefits 11 for leave for the birth of a child or placement of a child for 12 adoption or foster care. 13 The basis for the calculation of the amount of a family 14 leave or medical leave benefit is an eligible employee’s weekly 15 earnings as defined in the bill. The weekly leave benefit 16 amount payable to an employee for any one week is 80 percent 17 of the employee’s weekly spendable earnings, but must not 18 exceed an amount equal to 200 percent of the statewide average 19 weekly wage paid to employees as determined by the department 20 of workforce development. The minimum weekly leave benefit 21 amount is equal to the weekly leave benefit amount of a person 22 whose gross weekly earnings are 35 percent of the statewide 23 average weekly wage, or to the spendable weekly earnings of the 24 employee, whichever is less. “Spendable weekly earnings” is 25 defined in the bill as the amount remaining after payroll taxes 26 are deducted from an employee’s gross weekly earnings. 27 The department must send the first benefit payment to an 28 eligible employee within 10 days after a properly completed 29 weekly claim for benefits is received by the department. If 30 the employee continues to submit a properly completed weekly 31 claim, subsequent payments are to be made to the employee at 32 least biweekly. If an employer, or the department, contests 33 an employee’s eligibility, benefit payments may be made on 34 a conditional basis. The employee is required to pay the 35 -43- LSB 5413YH (5) 88 je/rn 43/ 47
H.F. 2223 benefits back if the department later rules that the employee 1 is ineligible to receive such benefits. 2 The bill provides that the program shall be funded via 3 employee and employer contributions. Beginning on January 1, 4 2023, and ending on December 31, 2024, the department must 5 assess a covered employer a premium rate of four-tenths of one 6 percent of an employee’s weekly wages, subject to a maximum 7 limit of wages subject to the assessment, as determined by 8 the director based on the maximum wages subject to taxation 9 for social security. One-third of the premium is to be used 10 to fund family leave insurance benefits and two-thirds of the 11 premium is to be used to fund medical leave benefits. The 12 covered employer may deduct the full amount of the family leave 13 premium from an employee’s wage. A covered employer may deduct 14 up to 45 percent of the medical leave premium and 45 percent of 15 the family leave premium from an employee’s wage. The employer 16 must pay the remaining 55 percent of both the medical leave and 17 family leave premiums, and may elect to pay all or any portion 18 of an employee’s share of such premiums. Beginning January 19 1, 2025, the premium rate shall be calculated by the director 20 based on the family leave and medical leave insurance account 21 balance ratio as of September 30 of the previous calendar year. 22 The premium rate is adjusted based on the balance ratio as 23 detailed in the bill. If the balance ratio falls below five 24 hundredths of one percent, the bill requires the director to 25 assess a solvency surcharge that is added to the total premium 26 rate assessed to a covered employer. The minimum solvency 27 surcharge is one-tenth of one percent and the maximum is 28 six-tenths of one percent. 29 On September 30 of each year, the bill requires the 30 department to average the number of employees reported by an 31 employer over the last four completed calendar quarters to 32 determine if the employer is a covered employer for the next 33 calendar year. 34 The bill requires a covered employer to collect all assessed 35 -44- LSB 5413YH (5) 88 je/rn 44/ 47
H.F. 2223 premiums and surcharges from the employer’s employees through 1 payroll deduction and to remit all premiums to the department 2 as required by the director. 3 An employer may apply for, and the director must grant, a 4 waiver of premiums for an employee who is located physically 5 outside of the state and not expected to work in the state for 6 1,250 or more hours in any consecutive 12-month period. If 7 the employee subsequently works 1,250 or more hours within 8 the state, the employer and employee are responsible for all 9 premiums that should have been collected. 10 Self-employed persons may elect to participate in the 11 program for a minimum initial participation period of three 12 years. Any subsequent period of participation must be for 13 a minimum of one year. A self-employed person must pay 14 the employee and employer’s portion of the premium assessed 15 by the director. A self-employed person who elects to 16 participate in the program is eligible for family leave and 17 medical leave benefits after working a minimum of 1,250 hours 18 in the consecutive 12-month period immediately following 19 the person’s election to participate in the program. The 20 self-employed person may withdraw from the program by providing 21 written notice to the director. The director may cancel the 22 self-employed person’s elective coverage for failure to submit 23 the required premiums. 24 An eligible employee who takes family leave or medical leave 25 is entitled to restoration of employment equal to but not 26 greater than that provided by FMLA. The bill provides that if 27 required under FMLA, an employer must maintain any existing 28 health benefits during an employee’s leave. If the employer 29 and employee normally share the cost of such, the employee is 30 responsible for paying the employee’s share of the costs. 31 A covered employer must submit reports as required by the 32 director and maintain employment records for each employee 33 from which the director may obtain information related to an 34 employee’s family leave or medical leave. Such records must 35 -45- LSB 5413YH (5) 88 je/rn 45/ 47
H.F. 2223 be maintained for 10 years from the date on which an employee 1 first takes a family leave or medical leave. 2 The bill provides that family leave or medical leave shall 3 be in addition to leave required under state or federal law 4 for sickness or temporary disability due to pregnancy or 5 childbirth. The bill requires family leave or medical leave 6 taken under this program to be taken concurrently with leave 7 taken under FMLA. A covered employer may allow an employee 8 to choose to use either accrued sick or vacation benefits, or 9 family leave and medical leave benefits. An employee cannot 10 receive family or medical leave benefits at the same time the 11 employee is receiving state or federal unemployment, workers’ 12 compensation, or disability benefits. The bill prohibits 13 discrimination on the basis of any state or federally protected 14 category. 15 The bill requires the director to administer the program and 16 to provide outreach to ensure that employers and employees are 17 aware of the program and the benefits available under such. 18 The bill provides that a family leave and medical leave 19 insurance account shall be created in the custody of the 20 treasurer of state. The director shall deposit all premiums 21 collected from employers into such account and the account can 22 only be used for the program as authorized by the director. 23 The bill requires the director to adopt rules to administer 24 the provisions of the bill. The director may take any action 25 under the director’s authority to enforce compliance with the 26 bill. 27 The director is required to analyze the funding of the 28 program and the benefits payable from the program’s account. 29 The director shall determine if the premium rates and the 30 benefit levels are appropriate to fully fund and maintain the 31 solvency of the program. The director must submit the findings 32 to the general assembly and the governor no later than January 33 11, 2021. 34 APPLICABILITY PROVISIONS. The bill applies to collective 35 -46- LSB 5413YH (5) 88 je/rn 46/ 47
H.F. 2223 bargaining agreements entered into on or after the effective 1 date of the bill. For an employee hired prior to the effective 2 date of the bill, paid sick leave required pursuant to the bill 3 shall begin to accrue on the effective date of the bill. For an 4 employee hired on or after the effective date of the bill, paid 5 sick leave required pursuant to the bill shall begin to accrue 6 on the service employee’s date of hire. 7 -47- LSB 5413YH (5) 88 je/rn 47/ 47
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