Senate File 579 S-3230 Amend Senate File 579 as follows: 1 1. By striking everything after the enacting clause and 2 inserting: 3 < DIVISION I 4 FAMILY PLANNING 5 Section 1. IOWA FAMILY PLANNING NETWORK —— MEDICAID STATE 6 PLAN AMENDMENT. The department of health and human services 7 shall submit a Medicaid state plan amendment to the centers for 8 Medicare and Medicaid services of the United States department 9 of health and human services for approval to establish the Iowa 10 family planning network with the same benefits, eligibility 11 requirements, and other provisions included in the Medicaid 12 Iowa family planning network waiver as approved by the centers 13 for Medicare and Medicaid services of the United States 14 department of health and human services in effect on June 30, 15 2017. 16 Sec. 2. REPEAL. Section 217.41B, Code 2023, is repealed. 17 Sec. 3. CONTINGENT EFFECTIVE DATE. The following takes 18 effect upon receipt of approval by the department of health 19 and human services from the centers for Medicare and Medicaid 20 services of the United States department of health and human 21 services of the Medicaid state plan amendment submitted 22 pursuant to this division of this Act to establish the Iowa 23 family planning network: 24 The section of this division of this Act repealing section 25 217.41B, Code 2023. 26 Sec. 4. EFFECTIVE DATE. This division of this Act, being 27 deemed of immediate importance, takes effect upon enactment. 28 DIVISION II 29 MEDICAID —— EXTENDED POSTPARTUM COVERAGE 30 Sec. 5. MEDICAID EXTENDED POSTPARTUM COVERAGE OPTION. The 31 department of health and human services shall submit a Medicaid 32 state plan amendment to the centers for Medicare and Medicaid 33 services of the United States department of health and human 34 services for approval of the option to provide twelve months of 35 -1- SF 579.2325 (2) 90 pf/rh 1/ 24 #1.

continuous postpartum coverage under the Medicaid program to 1 pregnant women enrolled in the Medicaid program in accordance 2 with sections 9812 and 9822 of the federal American Rescue Plan 3 Act of 2021, Pub. L. No. 117-2, as amended by section 5113 of 4 the federal Consolidated Appropriations Act of 2023. 5 Sec. 6. MEDICAID EXTENDED POSTPARTUM COVERAGE —— 6 APPROPRIATION. For the fiscal years beginning on or after 7 July 1, 2023, there is appropriated from the general fund 8 of the state to the department of health and human services 9 a sufficient amount to fund extended postpartum coverage to 10 pregnant women enrolled in the Medicaid program in accordance 11 with this division of this Act. 12 Sec. 7. EFFECTIVE DATE. This division of this Act, being 13 deemed of immediate importance, takes effect upon enactment. 14 DIVISION III 15 IOWA FAMILY AND MEDICAL LEAVE ACT 16 Sec. 8. Section 7E.5, subsection 1, paragraph h, Code 2023, 17 is amended to read as follows: 18 h. The department of workforce development, created 19 in section 84A.1 , which has primary responsibility for 20 administering the laws relating to unemployment compensation 21 insurance, job placement and training, the family leave and 22 medical insurance program, and related matters. 23 Sec. 9. Section 84A.1, subsection 1, Code 2023, is amended 24 to read as follows: 25 1. The department of workforce development is created to 26 administer the laws of this state relating to unemployment 27 compensation insurance, job placement and training, employment 28 safety, labor standards, and workers’ compensation , and the 29 family leave and medical leave insurance program . 30 Sec. 10. NEW SECTION . 96A.1 Short title. 31 This chapter may be cited as the “Iowa Family and Medical 32 Leave Act” . 33 Sec. 11. NEW SECTION . 96A.2 Definitions. 34 As used in this chapter, unless the context otherwise 35 -2- SF 579.2325 (2) 90 pf/rh 2/ 24

requires: 1 1. “Child” means a biological, adopted, or foster child, 2 a stepchild, a legal ward, or a child of a person standing in 3 loco parentis, regardless of the child’s age or dependency 4 status. 5 2. “Covered employer” means a private sector employer who 6 has ten or more employees for each working day during each of 7 twenty or more calendar workweeks in the current or previous 8 calendar year, and a public employer without regard to the 9 number of employees employed. 10 3. “Department” means the department of workforce 11 development. 12 4. “Director” means the director of the department of 13 workforce development. 14 5. “Employee” means a natural person who is employed in 15 this state for wages by an employer. “Employee” also includes 16 a commission salesperson who takes orders or performs services 17 on behalf of a principal and who is paid on the basis of 18 commissions but does not include persons who purchase for 19 their own account for resale. “Employee” shall not include an 20 independent contractor, a self-employed person, or a patient or 21 inmate employed by a state or local institution to which the 22 patient or inmate has been sentenced or committed, or any of 23 the following persons engaged in agriculture: 24 a. The spouse of the employer and a relative of either the 25 employer or the employer’s spouse who resides on the premises 26 of the employer. 27 b. A person engaged in agriculture as an owner-operator 28 or tenant-operator, and the spouse or a relative of either 29 an owner-operator or a tenant-operator who resides on the 30 premises while exchanging labor with the owner-operator or the 31 tenant-operator for mutual benefit. 32 c. A neighboring person engaged in agriculture who is 33 exchanging labor or other services. 34 6. “Employer” means the same as defined in section 91A.2. 35 -3- SF 579.2325 (2) 90 pf/rh 3/ 24

“Employer” includes a temporary staffing agency or employment 1 agency. 2 7. “Employment benefits” means all benefits provided or 3 made available to an employee by an employer, including group 4 life insurance, health insurance, disability insurance, sick 5 leave, annual leave, educational benefits, and pensions except 6 benefits that are provided by a practice or written policy of 7 an employer or through an employee benefit plan as defined in 8 29 U.S.C. §1002(3). 9 8. “Family leave” means a leave taken from work by an 10 employee for any of the following reasons: 11 a. To participate in providing care, including physical or 12 psychological care, for a family member of the employee made 13 necessary by a serious health condition of the family member. 14 b. To bond with the employee’s child after the child’s 15 birth, or with a child under the age of eighteen placed with 16 the employee for adoption or foster care. 17 c. Because of a qualifying exigency for a family member as 18 permitted under the federal Family and Medical Leave Act of 19 1993, as amended, and federal regulations as provided in 29 20 C.F.R. §825.126. 21 9. “Family member” means a child, parent, or spouse of an 22 employee. 23 10. “Gross earnings” means the same as defined in section 24 85.61. 25 11. “Health care provider” means a physician or other 26 health care practitioner licensed, accredited, registered, or 27 certified to perform specified health care services consistent 28 with state law. 29 12. “In loco parentis” means an individual who has 30 day-to-day responsibilities to care for or financially support 31 a child. 32 13. “Inpatient care” means an overnight stay in a hospital, 33 hospice, or residential medical care facility, including any 34 period of incapacity, or any subsequent treatment in connection 35 -4- SF 579.2325 (2) 90 pf/rh 4/ 24

with such inpatient care. 1 14. “Medical leave” means a leave from work taken by an 2 employee made necessary by the employee’s own serious health 3 condition. 4 15. “Parent” means a biological, adoptive, step, or foster 5 father or mother, or any other individual who stands in 6 loco parentis to an employee or who stood in loco parentis 7 when the employee was a child. “Parent” does not include a 8 parent-in-law. 9 16. “Period of incapacity” means an inability to work, 10 attend school, or perform other regular daily activities due 11 to a serious health condition, treatment of a serious health 12 condition, or recovery from a serious health condition. 13 17. “Premium” or “premiums” means the payments required by 14 section 96A.12 and paid to the department for deposit in the 15 family and medical leave insurance account pursuant to section 16 96A.22. 17 18. “Public employer” means the state of Iowa, its 18 boards, commissions, agencies, departments, and its political 19 subdivisions including school districts and other special 20 purpose districts. 21 19. “Serious health condition” means an illness, injury, 22 impairment, physical condition, or mental condition that 23 involves inpatient care in a hospital, hospice, medical care 24 facility, or continued treatment or continuing supervision by 25 a health care provider. 26 20. “Spendable weekly earnings” means the amount remaining 27 after payroll taxes are deducted from an employee’s gross 28 weekly earnings. 29 21. “Spouse” means the person with whom an individual has 30 entered into marriage as defined or recognized under state law 31 for purposes of marriage in the state in which the marriage 32 was entered into or, in the case of a marriage entered into 33 outside of any state, if the marriage is valid in the place 34 where the marriage was entered into and the marriage could have 35 -5- SF 579.2325 (2) 90 pf/rh 5/ 24

been entered into in at least one state, including a common law 1 marriage. 2 22. “Wages” means the same as defined in section 91A.2. 3 Sec. 12. NEW SECTION . 96A.3 Benefit eligibility. 4 An employee is eligible for family leave and medical leave 5 as provided in this chapter after working for a covered 6 employer for both a minimum of twelve consecutive months 7 immediately preceding the employee’s request for leave and a 8 minimum of one thousand two hundred fifty hours during that 9 twelve-consecutive-month period. 10 Sec. 13. NEW SECTION . 96A.4 Leave entitlement for a defined 11 twelve-month period. 12 1. An employee is entitled to a maximum of twelve weeks 13 of family leave during a defined period of twelve consecutive 14 months. 15 2. An employee is entitled to a maximum of twelve weeks of 16 medical leave during a defined period of twelve consecutive 17 months unless the employee experiences a serious health 18 condition, which is pregnancy-related, that results in a longer 19 period of incapacity in which case any extended medical leave 20 beyond twelve weeks shall conform with section 216.6. 21 3. An employee is entitled to a maximum combined total of 22 paid family leave and medical leave of sixteen weeks during a 23 defined period of twelve consecutive months. 24 4. An employee is not entitled to family leave or medical 25 leave of less than eight consecutive hours. 26 Sec. 14. NEW SECTION . 96A.5 Calculating the defined 27 twelve-month period. 28 The defined period of twelve consecutive months for 29 calculation of an eligible employee’s family leave or medical 30 leave entitlement begins on any of the following: 31 1. The date of birth of the employee’s child, or the date 32 of placement of a child for adoption or foster care with the 33 employee. 34 2. The first day of family leave that the employee takes for 35 -6- SF 579.2325 (2) 90 pf/rh 6/ 24

a family member’s serious health condition or a family member’s 1 qualifying exigency. 2 3. The first day of the employee’s medical leave. 3 Sec. 15. NEW SECTION . 96A.6 Disqualification from leave 4 entitlement. 5 An eligible employee is disqualified for family leave or 6 medical leave benefits under this chapter for any of the 7 following reasons: 8 1. An absence due to the employee’s willful intention to 9 injure or cause a sickness to the employee or to the employee’s 10 family member. 11 2. An injury or sickness caused by the employee engaging in 12 an illegal act. 13 3. The employee’s absence due to an employer taking any 14 disciplinary action against the employee. 15 Sec. 16. NEW SECTION . 96A.7 Employee notice to employer 16 of intent to take leave. 17 1. If leave for the birth of a child or placement of a child 18 for adoption or foster care with an employee is foreseeable, 19 the employee shall provide written notice to the employer not 20 less than thirty calendar days before the date the leave is to 21 begin. 22 2. If the birth of a child or placement of a child for 23 adoption or foster care with an employee requires leave to 24 begin in less than thirty calendar days, the employee shall 25 provide written notice to the employer as far in advance as is 26 practicable. 27 3. If leave for a family member’s serious health condition 28 or an employee’s serious health condition is foreseeable based 29 on planned medical treatment, the employee shall do all of the 30 following: 31 a. Make a reasonable effort to schedule such medical 32 treatment, subject to the recommendation of the employee’s or 33 family member’s health care provider as appropriate, to not 34 unduly disrupt the operations of the employer. 35 -7- SF 579.2325 (2) 90 pf/rh 7/ 24

b. Provide the employer with not less than thirty calendar 1 days prior written notice of the employee’s intention to take 2 leave for a family member’s serious health condition or the 3 employee’s serious health condition. 4 4. If leave for a family member’s serious health condition 5 or an employee’s serious health condition is not foreseeable, 6 the employee shall provide written notice to the employer as 7 far in advance as is practicable. 8 Sec. 17. NEW SECTION . 96A.8 Weekly claim, certification, 9 and verification. 10 Beginning January 1, 2028, family leave or medical leave 11 insurance benefits are payable to an employee during a period 12 in which the employee is unable to perform the employee’s 13 regular or customary work because the employee is on family 14 leave or medical leave if the employee meets all of the 15 following requirements: 16 1. The employee files a weekly claim for benefits with the 17 department as required per rules adopted by the director. 18 2. The employee meets the eligibility requirements pursuant 19 to section 96A.3 or the elective coverage requirements pursuant 20 to section 96A.14. 21 3. The employee consents to the disclosure of information or 22 records that may be deemed private or confidential under state 23 or federal law. Disclosure of such information and records by 24 another state agency or an employer to the department shall 25 be solely for purposes related to the administration of this 26 chapter. Information and records disclosed by an employee 27 under this chapter shall not be public records as defined in 28 section 22.1. 29 4. The employee authorizes the health care provider of the 30 employee’s family member or of the employee, as applicable, to 31 complete a certification of a serious health condition in a 32 form as required by the director. 33 5. The employee attests that written notice has been 34 provided to the employee’s employer per section 96A.7. 35 -8- SF 579.2325 (2) 90 pf/rh 8/ 24

6. The employee provides documentation of a family member’s 1 qualifying exigency if requested by the employee’s employer. 2 Sec. 18. NEW SECTION . 96A.9 Waiting period for leave 3 benefits. 4 Family leave or medical leave insurance benefits shall be 5 payable to an eligible employee following a waiting period 6 consisting of the first seven calendar days of the employee’s 7 leave. However, no such waiting period applies to a leave for 8 the birth or placement of a child with an eligible employee. 9 Sec. 19. NEW SECTION . 96A.10 Weekly leave benefit amount. 10 1. The basis for the calculation of a leave benefit amount 11 shall be the weekly earnings of an eligible employee on the 12 day the leave is granted. “Weekly earnings” means the gross 13 earnings of an employee to which the employee would have been 14 entitled had the employee worked the employee’s customary hours 15 for the full pay period in which the employee is on family 16 leave or medical leave. Weekly earnings shall be computed as 17 follows, rounded to the nearest dollar, for an employee who is 18 paid on the following basis: 19 a. On a weekly pay period basis, the weekly earnings are the 20 weekly gross earnings. 21 b. On a biweekly pay period basis, the weekly earnings are 22 one-half of the biweekly gross earnings. 23 c. On a semimonthly pay period basis, the weekly earnings 24 are the semimonthly gross earnings multiplied by twenty-four 25 and then divided by fifty-two. 26 d. On a monthly pay period basis, the weekly earnings 27 are the monthly gross earnings multiplied by twelve and then 28 divided by fifty-two. 29 e. On a yearly pay period basis, the weekly earnings shall 30 be the yearly earnings divided by fifty-two. 31 f. On a daily or hourly basis, or by the output of an 32 employee, the weekly earnings shall be computed by dividing by 33 thirteen the earnings, including shift differential pay but 34 not including overtime or premium pay, of the employee earned 35 -9- SF 579.2325 (2) 90 pf/rh 9/ 24

in the last completed period of thirteen consecutive calendar 1 weeks immediately preceding the start day of the leave. If 2 the employee was absent from employment for personal reasons 3 during part of the thirteen calendar weeks preceding the 4 leave, the employee’s weekly earnings shall be the amount the 5 employee would have earned had the employee worked when work 6 was available to other employees of the employer in a similar 7 occupation. A week that does not fairly reflect the employee’s 8 customary earnings shall be replaced by the closest previous 9 week with earnings that fairly represent the employee’s 10 customary earnings. 11 2. If on the date that an employee’s leave begins the 12 employee’s hourly earnings cannot be ascertained, the earnings 13 for the purpose of calculating the benefit amount shall be the 14 usual earnings for similar services where such services are 15 rendered by paid employees. 16 3. If an employee earns either no wages, or less than the 17 usual weekly earnings of a regular full-time adult laborer 18 in the line of work in which the employee is working in 19 that locality, the weekly earnings shall be one-fiftieth of 20 the total earnings which the employee has earned from all 21 employment during the twelve consecutive calendar months 22 immediately preceding the date that the employee’s leave 23 begins. 24 4. The weekly leave benefit amount payable to an employee 25 for any one week shall be eighty percent of the employee’s 26 spendable weekly earnings, but shall not exceed an amount equal 27 to two hundred percent of the statewide average weekly wage 28 as calculated by the department pursuant to section 96.1A and 29 in effect on the date that the employee’s leave commences. 30 However, the weekly leave benefit amount shall be a minimum 31 equal to the lesser of the weekly leave benefit amount of a 32 person whose gross weekly earnings are thirty-five percent of 33 the statewide average weekly wage, or to the spendable weekly 34 earnings of the employee. 35 -10- SF 579.2325 (2) 90 pf/rh 10/ 24

Sec. 20. NEW SECTION . 96A.11 Payment of benefits to an 1 eligible employee. 2 1. The department shall send the first benefit payment to 3 an employee within ten calendar days after the first properly 4 completed weekly claim from the employee is received by 5 the department. Subsequent payments shall be sent at least 6 biweekly to an eligible employee if a properly completed weekly 7 claim from the employee is received by the department. 8 2. If an employer contests an employee’s initial claim 9 for family leave or medical leave benefits, the employer must 10 notify the employee and the department in the manner prescribed 11 by the director within ten calendar days of the employer’s 12 receipt of notice from the department of the employee’s filing 13 of a claim for benefits pursuant to section 96A.21, subsection 14 3. Failure to timely contest an initial application shall 15 constitute a waiver of objection to the family leave or medical 16 leave claim. 17 3. If the department or the employee’s employer contests 18 an employee’s eligibility for benefits after the employee 19 begins receiving benefits, the employee shall continue to 20 be paid benefits conditionally for any weeks for which the 21 employee files a claim for benefits. The employee’s right to 22 retain such benefit payments shall be conditioned upon the 23 department’s finding that the employee is eligible for such 24 benefit payments. 25 a. At an employee’s request, the department shall hold 26 conditional benefit payments until the department resolves the 27 employee’s eligibility status. 28 b. Payment shall be issued promptly for any withheld benefit 29 payments if the department determines that an employee is 30 eligible for benefits. 31 c. If the department determines that an employee is 32 ineligible for the conditionally paid benefits, the employee 33 shall repay the overpayment per rules adopted by the director. 34 Sec. 21. NEW SECTION . 96A.12 Funding the family leave and 35 -11- SF 579.2325 (2) 90 pf/rh 11/ 24

medical leave insurance program. 1 1. Beginning on January 1, 2027, and ending December 2 31, 2028, the department shall assess for each employee 3 in employment with a covered employer a premium rate of 4 four-tenths of one percent of the employee’s wages based on the 5 amount of the wages, subject to subsection 6. 6 a. The premium rate for family leave benefits shall be equal 7 to one-third of the total premium rate. 8 b. The premium rate for medical leave benefits shall be 9 equal to two-thirds of the total premium rate. 10 2. For calendar year 2029 and subsequent calendar years the 11 director shall determine the percentage of paid claims related 12 to family leave benefits and the percentage of paid claims 13 related to medical leave benefits and adjust the premium rates 14 set in subsection 1 by the proportional share of claims paid 15 for both types of leave. 16 3. For family leave premiums a covered employer may deduct 17 up to forty-five percent of the full amount of the required 18 premiums from the wages of each employee. The remaining 19 fifty-five percent of the required premiums shall be paid by 20 the covered employer. 21 4. For medical leave premiums a covered employer may deduct 22 up to forty-five percent of the full amount of the required 23 premiums from the wages of each employee. The remaining 24 fifty-five percent of the required premiums shall be paid by 25 the covered employer. 26 5. A covered employer may elect to pay all or any portion of 27 its employees’ share of the premiums for family leave benefits 28 or medical leave benefits or both. 29 6. The director shall annually set a maximum limit on the 30 amount of an employee’s wages that are subject to a premium 31 assessment under this section that is equal to the contribution 32 and benefit base for the calendar year as determined by the 33 United States social security administration for purposes of 34 26 U.S.C. §3121(a). 35 -12- SF 579.2325 (2) 90 pf/rh 12/ 24

7. For calendar year 2029 and subsequent calendar years, 1 the total premium rate shall be based on the family leave and 2 medical leave insurance account balance ratio as of September 3 30 of the previous year. The director shall calculate the 4 account balance ratio by dividing the balance of the family 5 leave and medical leave insurance account by the total wages 6 paid by covered employers. The division shall be carried 7 to the fourth decimal place with the remaining fraction 8 disregarded unless it amounts to five hundred thousandths or 9 more in which case the fourth decimal place shall be rounded 10 to the next higher digit. If the family leave and medical 11 leave insurance account balance ratio is any of the following 12 percentages, the premium shall be the following percentage of 13 an employee’s wages subject to a premium assessment: 14 a. If the ratio is zero to nine hundredths of one percent, 15 the premium shall be six-tenths of one percent. 16 b. If the ratio is one-tenth of one percent to nineteen 17 hundredths of one percent, the premium shall be five-tenths of 18 one percent. 19 c. If the ratio is two-tenths of one percent to twenty-nine 20 hundredths of one percent, the premium shall be four-tenths of 21 one percent. 22 d. If the ratio is three-tenths of one percent to 23 thirty-nine hundredths of one percent, the premium shall be 24 three-tenths of one percent. 25 e. If the ratio is four-tenths of one percent to forty-nine 26 hundredths of one percent, the premium shall be two-tenths of 27 one percent. 28 f. If the ratio is five-tenths of one percent or greater, 29 the premium shall be one-tenth of one percent. 30 8. Beginning January 1, 2029, if the account balance ratio 31 calculated in subsection 7 is below five hundredths of one 32 percent, the director shall assess a solvency surcharge at 33 the lowest rate necessary to provide revenue to pay for the 34 administrative and benefit costs of family leave and medical 35 -13- SF 579.2325 (2) 90 pf/rh 13/ 24

leave insurance for the calendar year. The solvency surcharge 1 shall be at least one-tenth of one percent and no more than 2 six-tenths of one percent and shall be added to the total 3 premium rate assessed to each employee of a covered employer 4 for family leave and medical leave benefits. 5 9. A covered employer shall collect all required premiums 6 and surcharges from the employer’s employees through payroll 7 deductions and shall remit the amount collected and the amount 8 to be paid by the employer to the department as required by 9 rules adopted by the director. 10 10. On September 30 of each year the department shall 11 average the number of employees reported by an employer over 12 the last four completed calendar quarters to determine the 13 number of employees employed by the employer for the purpose 14 of determining if an employer shall be considered a covered 15 employer for the next calendar year. 16 Sec. 22. NEW SECTION . 96A.13 Conditional waiver of premium 17 for out-of-state employee. 18 1. An employer may file an application with the department 19 for a conditional waiver of the payment of family leave and 20 medical leave premiums assessed under section 96A.12 for an 21 employee who meets all of the following requirements: 22 a. The employee is physically based outside of the state. 23 b. The employee physically works in the state on a limited 24 or temporary work schedule. 25 c. The employee is not expected to physically work in the 26 state for one thousand two hundred fifty hours or more during 27 any consecutive twelve-month period. 28 2. The department shall approve an application that is 29 signed by both the employee and the employee’s employer 30 attesting to compliance with the requirements of subsection 1. 31 3. If the employee physically works in the state for one 32 thousand two hundred fifty hours or more in any consecutive 33 twelve-month period, the conditional waiver shall expire and 34 the employer and employee shall be responsible for all premiums 35 -14- SF 579.2325 (2) 90 pf/rh 14/ 24

pursuant to section 96A.12 for the consecutive twelve-month 1 period in which the employee worked one thousand two hundred 2 fifty hours or more. Upon submission of the premiums by the 3 employer to the department, the employee shall be credited for 4 the hours worked during that consecutive twelve-month period 5 and shall be eligible for benefits under this chapter. 6 Sec. 23. NEW SECTION . 96A.14 Self-employed persons elective 7 participation in the family leave and medical leave insurance 8 program. 9 1. A self-employed person electing to participate in the 10 family leave and medical leave insurance program shall be 11 considered either an employer or employee under this chapter 12 as the context dictates. 13 2. For benefits payable beginning January 1, 2029, a 14 self-employed person may elect to participate in the family 15 leave and medical leave insurance program under this chapter 16 if the self-employed person meets all of the following 17 requirements: 18 a. The initial participation period for the self-employed 19 person must be a minimum of three years. 20 b. Any subsequent participation period by the self-employed 21 person must be for a minimum of one year. 22 c. The self-employed person must participate in both family 23 leave and medical leave. 24 d. One hundred percent of all premiums assessed by 25 the department under section 96A.12 shall be paid by the 26 self-employed person. 27 3. A self-employed person shall file a written notice of 28 election of elective coverage with the department in the manner 29 required by the director. 30 4. A self-employed person shall be eligible for 31 family leave and medical leave benefits after working one 32 thousand two hundred fifty hours in the state during the 33 twelve-consecutive-month period immediately following the date 34 of the written notice the self-employed person filed pursuant 35 -15- SF 579.2325 (2) 90 pf/rh 15/ 24

to subsection 3. 1 5. A self-employed person who has elected coverage may 2 withdraw from coverage within thirty calendar days after the 3 end of each participation period pursuant to subsection 2, 4 paragraph “a” or “b” , by filing a written notice of withdrawal 5 as required pursuant to the rules adopted by the director. The 6 withdrawal shall take effect no sooner than thirty calendar 7 days after the self-employed person files the notice of 8 withdrawal. 9 6. If a self-employed person fails to submit the required 10 premium payments, the department may cancel the person’s 11 elective coverage. The cancellation shall be effective no 12 sooner than thirty days from the date of a written notice 13 from the department to the self-employed person advising the 14 self-employed person of the impending cancellation of the 15 self-employed person’s elective coverage. The department shall 16 collect all due and unpaid premiums from the self-employed 17 person for the remainder of the applicable participation period 18 pursuant to subsection 2, paragraph “a” or “b” . 19 Sec. 24. NEW SECTION . 96A.15 Employment protection. 20 1. An eligible employee who takes family leave or medical 21 leave under this chapter is entitled to either of the following 22 on the employee’s return from leave: 23 a. To be restored to the same position held by the employee 24 when the employee’s leave commenced. 25 b. To be restored to an equivalent position with equivalent 26 employment benefits, pay, and other terms and conditions of 27 employment. 28 2. As a condition of restoration under subsection 1 for an 29 employee who has taken medical leave, the employer may apply 30 a uniform policy to the employee that requires an employee to 31 provide certification from the employee’s health care provider 32 that the employee is able to resume work. 33 3. Taking leave under this chapter shall not result in the 34 loss of any employment benefits accrued by an employee prior to 35 -16- SF 579.2325 (2) 90 pf/rh 16/ 24

the date on which the employee’s leave commenced. 1 4. This section shall not be construed to entitle a restored 2 employee to any of the following: 3 a. The accrual of any seniority or employment benefits 4 during any period of leave. 5 b. Any right, benefit, or position of employment other than 6 any right, benefit, or position of employment to which the 7 employee would have been entitled had the employee not taken 8 leave. 9 5. This section shall not be construed to prohibit an 10 employer from requiring an employee on leave to report 11 periodically to the employer on the status and intention of the 12 employee to return to work. 13 6. An employer may deny restoration under this section to 14 a salaried employee who is among the ten percent highest-paid 15 employees employed by the employer within seventy-five miles 16 of the facility at which the employee is employed if all of the 17 following apply: 18 a. Denial of restoration is necessary to prevent substantial 19 and grievous economic injury to the operations of the employer. 20 b. The employer notifies the employee of the intent of the 21 employer to deny restoration on such basis at the time the 22 employer determines such basis exists. 23 c. The employee is on leave and elects not to return 24 to employment after receiving the employer’s notice of the 25 employer’s intent not to restore the employee. 26 7. This section shall not be construed as providing an 27 employee greater restoration rights than those required under 28 the federal Family and Medical Leave Act of 1993, as amended. 29 Sec. 25. NEW SECTION . 96A.16 Maintenance of existing health 30 benefits. 31 If required by the federal Family and Medical Leave 32 Act of 1993, as amended, an employer shall maintain any 33 existing health benefits of an employee for the duration of 34 an employee’s leave under this chapter. If the employer and 35 -17- SF 579.2325 (2) 90 pf/rh 17/ 24

the employee normally share the cost of such existing health 1 benefits, the employee shall remain responsible for the 2 employee’s share of the cost of such. 3 Sec. 26. NEW SECTION . 96A.17 Employer submission of reports 4 and maintenance of records. 5 1. Pursuant to rules adopted by the director, an employer 6 shall submit reports and furnish information related to 7 the family leave and medical leave insurance program to the 8 director. 9 2. An employer shall maintain at the employer’s primary 10 place of business a record of employment for each employee from 11 which any information needed by the department for purposes of 12 this chapter may be obtained. Such record shall be maintained 13 for ten years from the date on which an eligible employee 14 applies for family leave or medical leave under this chapter. 15 The record shall be open for inspection by the director at all 16 times. All personnel records and employee medical records 17 shall be maintained by the employer in compliance with all 18 applicable federal and state laws. 19 Sec. 27. NEW SECTION . 96A.18 Coordination of family leave 20 and medical leave with other laws and with employer policies. 21 1. Family leave or medical leave taken by an employee under 22 this chapter shall be in addition to any leave available to 23 an employee as required by applicable state or federal law 24 for sickness or temporary disability because of pregnancy or 25 childbirth. 26 2. Family leave or medical leave taken by an employee under 27 this chapter shall be taken concurrently with any leave taken 28 under the federal Family and Medical Leave Act of 1993, as 29 amended. 30 3. An employer may allow an employee who has accrued 31 vacation, sick, or other paid time off to choose to use either 32 such accrued time or to receive paid family leave or medical 33 leave insurance benefits under this chapter. 34 Sec. 28. NEW SECTION . 96A.19 Relationship to other state 35 -18- SF 579.2325 (2) 90 pf/rh 18/ 24

and federal benefits. 1 In any week an employee is eligible to receive benefits under 2 chapter 85, 85A, 85B, or 96, or any other applicable state or 3 federal unemployment compensation, workers’ compensation, or 4 disability insurance laws, the employee is disqualified from 5 receiving family leave or medical leave insurance benefits 6 under this chapter. 7 Sec. 29. NEW SECTION . 96A.20 Discrimination prohibited. 8 This chapter shall not be construed to modify or affect any 9 federal, state, or local law prohibiting discrimination on the 10 basis of age, race, creed, color, sex, sexual orientation, 11 gender identity, national origin, religion, disability, or 12 other protected category. 13 Sec. 30. NEW SECTION . 96A.21 Department to administer 14 family leave and medical leave insurance program and conduct 15 outreach. 16 1. The director shall establish and administer the family 17 leave and medical leave insurance program and disburse family 18 leave and medical leave benefits to an eligible employee as 19 specified in this chapter. 20 2. The director shall establish procedures and forms for 21 an employee to file an application for benefits under this 22 chapter. 23 3. The department shall notify an employer within five 24 business days of an employee filing a claim for family leave or 25 medical leave insurance benefits. 26 4. Information and records pertaining to an employee under 27 this chapter that are maintained by the department shall 28 be confidential and shall only be available to department 29 personnel in the performance of official duties. 30 5. The director shall develop and implement an outreach 31 program to ensure that employers and employees are aware of 32 the family leave and medical leave insurance program and are 33 aware of the leave benefits available to eligible employees. 34 Outreach information shall explain in an easy-to-understand 35 -19- SF 579.2325 (2) 90 pf/rh 19/ 24

format all of the following: 1 a. Eligibility requirements. 2 b. The application process. 3 c. How weekly benefits are calculated and the minimum and 4 maximum weekly benefit amount. 5 d. Restoration rights. 6 e. Nondiscrimination rights. 7 f. Confidentiality. 8 g. The relationship between employment protection, leave 9 from employment, wage replacement benefits under this chapter 10 and other laws, and employer policies. 11 6. The department shall be authorized to inspect and audit 12 an employer’s files and records relating to the family leave 13 and medical leave insurance program under this chapter. 14 Sec. 31. NEW SECTION . 96A.22 Family leave and medical leave 15 insurance account. 16 1. The family leave and medical leave insurance account 17 is created as a separate account in the state treasury in the 18 custody of the treasurer of state. 19 2. The director shall deposit all receipts from premiums 20 imposed pursuant to sections 96A.12, 96A.13, and 96A.14 into 21 the account. Expenditures from the account shall be used 22 only for the purposes of the family leave and medical leave 23 insurance program and only as authorized by the director. 24 3. All premiums deposited in the account shall remain in 25 the account until expended pursuant to the requirements of this 26 chapter. 27 Sec. 32. NEW SECTION . 96A.23 Rules. 28 The director shall adopt rules pursuant to chapter 17A as 29 necessary to implement and administer this chapter. 30 Sec. 33. NEW SECTION . 96A.24 Enforcement. 31 The director may take any action under the director’s 32 authority to enforce compliance with this chapter. 33 Sec. 34. DIRECTOR ANALYSIS OF FUNDING THE FAMILY LEAVE 34 AND MEDICAL LEAVE INSURANCE PROGRAM AND REPORT TO THE GENERAL 35 -20- SF 579.2325 (2) 90 pf/rh 20/ 24