House File 2640 - Introduced



                                    HOUSE FILE       
                                    BY  COMMITTEE ON LABOR

                                    (SUCCESSOR TO HSB 673)


    Passed House, Date               Passed Senate, Date             
    Vote:  Ayes        Nays           Vote:  Ayes        Nays         
                 Approved                            

                                      A BILL FOR

  1 An Act requiring an annual cost=of=living adjustment for certain
  2    weekly workers' compensation benefits.
  3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
  4 TLSB 6473HV 82
  5 av/rj/14

PAG LIN



  1  1    Section 1.  Section 85.36, Code 2007, is amended to read as
  1  2 follows:
  1  3    85.36  BASIS OF COMPUTATION.
  1  4    1.  The basis of compensation shall be the weekly earnings
  1  5 of the injured employee at the time of the injury.  Weekly
  1  6 earnings means gross salary, wages, or earnings of an employee
  1  7 to which such employee would have been entitled had the
  1  8 employee worked the customary hours for the full pay period in
  1  9 which the employee was injured, as regularly required by the
  1 10 employee's employer for the work or employment for which the
  1 11 employee was employed, computed, or determined as follows and
  1 12 then rounded to the nearest dollar:
  1 13    1.  a.  In the case of an employee who is paid on a weekly
  1 14 pay period basis, the weekly gross earnings.
  1 15    2.  b.  In the case of an employee who is paid on a
  1 16 biweekly pay period basis, one=half of the biweekly gross
  1 17 earnings.
  1 18    3.  c.  In the case of an employee who is paid on a
  1 19 semimonthly pay period basis, the semimonthly gross earnings
  1 20 multiplied by twenty=four and subsequently divided by
  1 21 fifty=two.
  1 22    4.  d.  In the case of an employee who is paid on a monthly
  1 23 pay period basis, the monthly gross earnings multiplied by
  1 24 twelve and subsequently divided by fifty=two.
  1 25    5.  e.  In the case of an employee who is paid on a yearly
  1 26 pay period basis, the weekly earnings shall be the yearly
  1 27 earnings divided by fifty=two.
  1 28    6.  f.  In the case of an employee who is paid on a daily
  1 29 or hourly basis, or by the output of the employee, the weekly
  1 30 earnings shall be computed by dividing by thirteen the
  1 31 earnings, not including overtime or premium pay, of the
  1 32 employee earned in the employ of the employer in the last
  1 33 completed period of thirteen consecutive calendar weeks
  1 34 immediately preceding the injury.  If the employee was absent
  1 35 from employment for reasons personal to the employee during
  2  1 part of the thirteen calendar weeks preceding the injury, the
  2  2 employee's weekly earnings shall be the amount the employee
  2  3 would have earned had the employee worked when work was
  2  4 available to other employees of the employer in a similar
  2  5 occupation.  A week which does not fairly reflect the
  2  6 employee's customary earnings shall be replaced by the closest
  2  7 previous week with earnings that fairly represent the
  2  8 employee's customary earnings.
  2  9    7.  g.  In the case of an employee who has been in the
  2 10 employ of the employer less than thirteen calendar weeks
  2 11 immediately preceding the injury, the employee's weekly
  2 12 earnings shall be computed under subsection 6 paragraph "f",
  2 13 taking the earnings, not including overtime or premium pay,
  2 14 for such purpose to be the amount the employee would have
  2 15 earned had the employee been so employed by the employer the
  2 16 full thirteen calendar weeks immediately preceding the injury
  2 17 and had worked, when work was available to other employees in
  2 18 a similar occupation.  If the earnings of other employees
  2 19 cannot be determined, the employee's weekly earnings shall be
  2 20 the average computed for the number of weeks the employee has
  2 21 been in the employ of the employer.
  2 22    h.  In the case of an employee injured in the course of
  2 23 performing as a professional athlete, the basis of
  2 24 compensation for weekly earnings shall be one=fiftieth of
  2 25 total earnings which the employee has earned from all
  2 26 employment for the previous twelve months prior to the injury.
  2 27    8.  2.  If at the time of the injury the hourly earnings
  2 28 have not been fixed or cannot be ascertained, the earnings for
  2 29 the purpose of calculating compensation shall be taken to be
  2 30 the usual earnings for similar services where such services
  2 31 are rendered by paid employees.
  2 32    9.  3.  If an employee earns either no wages or less than
  2 33 the usual weekly earnings of the regular full=time adult
  2 34 laborer in the line of industry in which the employee is
  2 35 injured in that locality, the weekly earnings shall be
  3  1 one=fiftieth of the total earnings which the employee has
  3  2 earned from all employment during the twelve calendar months
  3  3 immediately preceding the injury.
  3  4    a.  In computing the compensation to be allowed a volunteer
  3  5 fire fighter, emergency medical care provider, reserve peace
  3  6 officer, volunteer ambulance driver, volunteer emergency
  3  7 rescue technician as defined in section 147A.1, or emergency
  3  8 medical technician trainee, the earnings as a fire fighter,
  3  9 emergency medical care provider, reserve peace officer,
  3 10 volunteer ambulance driver, volunteer emergency rescue
  3 11 technician, or emergency medical technician trainee shall be
  3 12 disregarded and the volunteer fire fighter, emergency medical
  3 13 care provider, reserve peace officer, volunteer ambulance
  3 14 driver, volunteer emergency rescue technician, or emergency
  3 15 medical technician trainee shall be paid an amount equal to
  3 16 the compensation the volunteer fire fighter, emergency medical
  3 17 care provider, reserve peace officer, volunteer ambulance
  3 18 driver, volunteer emergency rescue technician, or emergency
  3 19 medical technician trainee would be paid if injured in the
  3 20 normal course of the volunteer fire fighter's, emergency
  3 21 medical care provider's, reserve peace officer's, volunteer
  3 22 ambulance driver's, volunteer emergency rescue technician's,
  3 23 or emergency medical technician trainee's regular employment
  3 24 or an amount equal to one hundred and forty percent of the
  3 25 statewide average weekly wage, whichever is greater.
  3 26    b.  If the employee was an apprentice or trainee when
  3 27 injured, and it is established under normal conditions the
  3 28 employee's earnings should be expected to increase during the
  3 29 period of disability, that fact may be considered in computing
  3 30 the employee's weekly earnings.
  3 31    c.  If the employee was an inmate as defined in section
  3 32 85.59, the inmate's actual earnings shall be disregarded, and
  3 33 the weekly compensation rate shall be as set forth in section
  3 34 85.59.
  3 35    10.  4.  If a wage, or method of calculating a wage, is
  4  1 used for the basis of the payment of a workers' compensation
  4  2 insurance premium for a proprietor, partner, limited liability
  4  3 company member, limited liability partner, or officer of a
  4  4 corporation, the wage or the method of calculating the wage is
  4  5 determinative for purposes of computing the proprietor's,
  4  6 partner's, limited liability company member's, limited
  4  7 liability partner's, or officer's weekly workers' compensation
  4  8 benefit rate.
  4  9    11.  5.  In computing the compensation to be allowed an
  4 10 elected or appointed official, the official may choose either
  4 11 of the following payment options:
  4 12    a.  The official shall be paid an amount of compensation
  4 13 based on the official's weekly earnings as an elected or
  4 14 appointed official.
  4 15    b.  The earnings of the official as an elected or appointed
  4 16 official shall be disregarded and the official shall be paid
  4 17 an amount equal to one hundred forty percent of the statewide
  4 18 average weekly wage.
  4 19    12.  In the case of an employee injured in the course of
  4 20 performing as a professional athlete, the basis of
  4 21 compensation for weekly earnings shall be one=fiftieth of
  4 22 total earnings which the employee has earned from all
  4 23 employment for the previous twelve months prior to the injury.
  4 24    6.  The basis of compensation for permanent total
  4 25 disability benefits or death benefits shall increase on
  4 26 January 1 of each year for compensation which becomes due that
  4 27 year by a percentage equal to the cost=of=living adjustment
  4 28 made to disability benefits payable by the United States
  4 29 social security administration in December of the immediately
  4 30 preceding year.
  4 31                           EXPLANATION
  4 32    This bill requires an annual cost=of=living adjustment for
  4 33 certain weekly workers' compensation benefits.
  4 34    The bill requires the basis of compensation for weekly
  4 35 workers' compensation benefits payable for permanent total
  5  1 disability benefits or death benefits to increase on January 1
  5  2 each year for compensation which becomes due that year, by a
  5  3 percentage equal to the cost=of=living adjustment made to
  5  4 disability benefits payable by the United States social
  5  5 security administration in December of the immediately
  5  6 preceding year.
  5  7 LSB 6473HV 82
  5  8 av/rj/14