House Study Bill 673 HOUSE FILE BY (PROPOSED COMMITTEE ON LABOR BILL BY CHAIRPERSON OLSON) 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 6473YC 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: 1 131.a. In the case of an employee who is paid on a weekly 1 14 pay period basis, the weekly gross earnings. 1 152.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. 1 183.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. 1 224.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. 1 255.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. 1 286.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 97.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 undersubsection 6paragraph "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. 2 278.2. 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. 2 329.3. 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 3510.4. 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. 4 911.5. 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 1912. 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 disability 4 25 benefits shall increase on January 1 of each year for 4 26 compensation which becomes due that year by a percentage equal 4 27 to the cost=of=living adjustment made to disability benefits 4 28 payable by the United States social security administration in 4 29 December of the immediately preceding year. 4 30 EXPLANATION 4 31 This bill requires an annual cost=of=living adjustment for 4 32 certain weekly workers' compensation benefits. 4 33 The bill requires the basis of compensation for weekly 4 34 workers' compensation benefits payable for permanent 4 35 disabilities to increase on January 1 each year for 5 1 compensation which becomes due that year, by a percentage 5 2 equal to the cost=of=living adjustment made to disability 5 3 benefits payable by the United States social security 5 4 administration in December of the immediately preceding year. 5 5 LSB 6473YC 82 5 6 av/rj/14