S.F. 2245 Section 1. Section 91.4, subsection 2, Code 2014, is amended 1 to read as follows: 2 2. The director of the department of workforce development, 3 in consultation with the labor commissioner, shall, at the 4 time provided by law, make an annual report to the governor 5 setting forth in appropriate form the business and expense of 6 the division of labor services for the preceding year, the 7 number of remedial actions taken under chapter 89A , the number 8 of disputes or violations processed by the division and the 9 disposition of the disputes or violations, and other matters 10 pertaining to the division which are of public interest, 11 together with recommendations for change or amendment of the 12 laws in this chapter and chapters 88 , 88A , 88B , 89 , 89A , 89B , 13 90A , 91A , 91C , 91D , 91E , 92 , 93, and 94A , and section 85.68 , 14 and the recommendations, if any, shall be transmitted by the 15 governor to the first general assembly in session after the 16 report is filed. 17 Sec. 2. NEW SECTION . 93.1 Definitions. 18 For the purposes of this chapter, unless the context 19 otherwise requires: 20 1. “Child” means a biological, adopted, or foster child, 21 stepchild, legal ward, or a child to whom the service employee 22 stands in loco parentis, who is either under eighteen years 23 of age or eighteen years of age or older and incapable of 24 self-care because of a mental or physical disability. 25 2. “Commissioner” means the labor commissioner appointed 26 pursuant to section 91.2, or the labor commissioner’s designee. 27 3. “Domestic abuse” means the same as defined in section 28 236.2. 29 4. “Employee” means an individual who is employed in this 30 state for compensation by an employer. “Employee” does not 31 include a service employee. 32 5. “Employer” means any person that employs fifty or more 33 individuals in this state in any one calendar quarter in the 34 previous year, as determined annually on January 1. “Employer” 35 -1- LSB 5765XS (2) 85 je/sc 1/ 12

S.F. 2245 does not include any business establishment classified 1 in sector 31, 32, or 33 in the north American industrial 2 classification system, or any nonprofit organization exempt 3 from taxation under section 501(c)(3) of the Internal Revenue 4 Code that provides all of the following services: 5 a. Recreation. 6 b. Child care. 7 c. Education. 8 6. “Retaliation” means any termination of employment, 9 suspension, constructive discharge, demotion, unfavorable 10 reassignment, refusal to promote, disciplinary action, or other 11 adverse employment action taken by an employer. 12 7. a. “Service employee” means an individual who is 13 primarily engaged in an occupation with one of the following 14 broad or detailed occupation code numbers and titles, as 15 defined by the federal department of labor, bureau of labor 16 statistics, standard occupational classification system: 17 11-9050 food service managers; 11-9110 medical and health 18 services managers; 21-1020 social workers; 21-1093 social and 19 human service assistants; 21-1094 community health workers; 20 21-1099 community and social service specialists, all other; 21 25-4020 librarians; 29-1050 pharmacists; 29-1070 physician 22 assistants; 29-1120 therapists; 29-1140 registered nurses; 23 29-1150 nurse anesthetists; 29-1160 nurse midwives; 29-1170 24 nurse practitioners; 29-2020 dental hygienists; 29-2040 25 emergency medical technicians and paramedics; 29-2050 health 26 practitioner support technologists and technicians; 29-2060 27 licensed practical and licensed vocational nurses; 31-1011 home 28 health aides; 31-1012 nursing aides, orderlies, and attendants; 29 31-1013 psychiatric aides; 31-9091 dental assistants; 31-9092 30 medical assistants; 33-9032 security guards; 33-9091 crossing 31 guards; 35-1010 supervisors of food preparation and serving 32 workers; 35-2010 cooks; 35-2020 food preparation workers; 33 35-3010 bartenders; 35-3020 fast food and counter workers; 34 35-3030 waiters and waitresses; 35-3040 food servers, 35 -2- LSB 5765XS (2) 85 je/sc 2/ 12

S.F. 2245 nonrestaurant; 35-9010 dining room and cafeteria attendants 1 and bartender helpers; 35-9020 dishwashers; 35-9030 hosts 2 and hostesses, restaurant, lounge, and coffee shop; 35-9090 3 miscellaneous food preparation and serving-related workers; 4 37-2011 janitors and cleaners, except maids and housekeeping 5 cleaners; 37-2019 building cleaning workers, all other; 39-3030 6 ushers, lobby attendants, and ticket takers; 39-5010 barbers, 7 hairdressers, hairstylists, and cosmetologists; 39-6010 baggage 8 porters, bellhops, and concierges; 39-9010 child care workers; 9 39-9021 personal care aides; 41-1010 first-line supervisors of 10 sales workers; 41-2011 cashiers; 41-2021 counter and rental 11 clerks; 41-2030 retail salespersons; 43-3070 tellers; 43-4080 12 hotel, motel, and resort desk clerks; 43-4170 receptionists and 13 information clerks; 43-5020 couriers and messengers; 43-6010 14 secretaries and administrative assistants; 43-9010 computer 15 operators; 43-9020 data entry and information processing 16 workers; 43-9030 desktop publishers; 43-9040 insurance claims 17 and policy processing clerks; 43-9050 mail clerks and mail 18 machine operators, except postal service; 43-9060 office 19 clerks, general; 43-9070 office machine operators, except 20 computer; 43-9080 proofreaders and copy markers; 43-9110 21 statistical assistants; 43-9190 miscellaneous office and 22 administrative support workers; 51-3010 bakers; 51-3020 23 butchers and other meat, poultry, and fish processing workers; 24 51-3090 miscellaneous food processing workers; 53-3010 25 ambulance drivers and attendants, except emergency medical 26 technicians; 53-3020 bus drivers; or 53-3040 taxi drivers and 27 chauffeurs; and to whom at least one of the following applies: 28 (1) The individual is paid on an hourly basis. 29 (2) The individual is subject to the minimum wage and 30 overtime compensation requirements of the federal Fair Labor 31 Standards Act. 32 b. “Service employee” does not include an individual who 33 performs work for and receives compensation from a person on a 34 daily basis or an occasional or irregular basis for only the 35 -3- LSB 5765XS (2) 85 je/sc 3/ 12

S.F. 2245 time required to complete such work, whether such individual is 1 compensated by the person for whom such work is performed or by 2 an employment agency as defined in section 94A.1. 3 8. “Sexual assault” means the same as defined in section 4 915.40. 5 Sec. 3. NEW SECTION . 93.2 Paid sick leave —— requirements. 6 1. An employer shall provide paid sick leave annually to 7 each service employee employed by the employer. A service 8 employee shall accrue paid sick leave at a rate of one hour of 9 leave for each forty hours worked by the service employee, in 10 one-hour increments up to a maximum of forty hours of leave 11 per calendar year. A service employee shall not be entitled 12 to use more than forty accrued hours of paid sick leave per 13 year. A service employee shall be entitled to carry over up to 14 forty unused accrued hours of paid sick leave from one calendar 15 year to the following calendar year. A service employee shall 16 not be entitled to the use of accrued paid sick leave if the 17 service employee did not work an average of ten or more hours a 18 week for the employer in the most recently completed calendar 19 quarter prior to the date such leave is to begin. 20 2. An employer shall be deemed to be in compliance with 21 this section if the employer offers any other paid leave or 22 combination of other paid leave that may be used for the 23 purposes of section 93.3 and is accrued at a rate equal to or 24 greater than the rate described in subsection 1. Other paid 25 leave may include but is not limited to vacation, personal 26 days, or time off. 27 3. An employer shall pay a service employee for accrued paid 28 sick leave at a pay rate equal to the normal hourly wage for 29 that service employee. For any service employee whose hourly 30 wage varies depending on the work performed by the service 31 employee, the service employee’s pay rate shall be the average 32 hourly wage of the service employee in the pay period prior to 33 the one in which the service employee used accrued paid sick 34 leave. 35 -4- LSB 5765XS (2) 85 je/sc 4/ 12

S.F. 2245 4. By mutual consent of a service employee and employer, the 1 service employee may work additional hours or shifts during the 2 same pay period the leave is taken or during the following pay 3 period, instead of using accrued paid sick leave. 4 Sec. 4. NEW SECTION . 93.3 Permitted uses of leave. 5 1. An employer shall permit a service employee to use paid 6 sick leave accrued by the service employee for the reasons 7 specified in subsections 2 and 3. 8 2. For a service employee, the service employee’s spouse, or 9 the service employee’s child, accrued paid sick leave may be 10 used for any of the following reasons: 11 a. Mental or physical illness, injury, or a health 12 condition. 13 b. Medical diagnosis, care, or treatment of mental illness 14 or physical illness, injury, or a health condition. 15 c. Preventative medical care. 16 3. For a service employee who is a victim of domestic abuse 17 or sexual assault, accrued paid sick leave may be used for any 18 of the following reasons: 19 a. Medical care or psychological or other counseling for 20 physical or psychological injury or disability. 21 b. To obtain services from a victim services organization. 22 c. Relocation due to such domestic abuse or sexual assault. 23 d. Participation in any civil or criminal proceedings 24 relating to or resulting from such domestic abuse or sexual 25 assault. 26 Sec. 5. NEW SECTION . 93.4 Advance notice —— documentation. 27 1. If a service employee’s need to use paid sick leave is 28 foreseeable, an employer may require advance notice, not to 29 exceed seven days prior to the date such leave is to begin, of 30 the service employee’s intent to use such leave. If a service 31 employee’s need for such leave is not foreseeable, an employer 32 may require a service employee to give notice of such intent 33 as soon as practicable. 34 2. For paid sick leave of three or more consecutive days, an 35 -5- LSB 5765XS (2) 85 je/sc 5/ 12

S.F. 2245 employer may require reasonable documentation that such leave 1 is being taken for the purposes permitted under section 93.3. 2 If such leave is permitted under section 93.3, subsection 2, 3 documentation signed by a health care provider who is treating 4 the service employee or the service employee’s child or spouse 5 indicating the need for the number of days of such leave shall 6 be considered reasonable documentation. If such leave is 7 permitted under section 93.3, subsection 3, a court record or 8 documentation signed by a service employee or volunteer working 9 for a victim services organization, an attorney, a police 10 officer, or other counselor involved with the service employee 11 shall be considered reasonable documentation. 12 Sec. 6. NEW SECTION . 93.5 Notice by employers. 13 1. An employer shall, at the time of a service employee’s 14 hiring, provide notice to the service employee of all of the 15 following: 16 a. The right to sick leave established by this chapter, the 17 amount of sick leave provided, and the terms under which sick 18 leave may be used. 19 b. That retaliation or discrimination by the employer 20 against the service employee for requesting or using sick leave 21 for which the service employee is eligible is prohibited. 22 c. The service employee’s right to file a complaint with the 23 commissioner for any violation of this chapter. 24 2. An employer may comply with the provisions of this 25 section by displaying a poster in a conspicuous place, 26 accessible to service employees, at the employer’s place of 27 business that contains the information required by this section 28 in both English and Spanish. 29 3. The commissioner may adopt rules to establish additional 30 requirements concerning the means by which employers shall 31 provide notice required by this section. 32 Sec. 7. NEW SECTION . 93.6 Termination of employment —— 33 limitations. 34 1. Unless an employee policy or collective bargaining 35 -6- LSB 5765XS (2) 85 je/sc 6/ 12

S.F. 2245 agreement provides for the payment of accrued benefits upon 1 termination, a service employee shall not be entitled to 2 payment for the service employee’s unused hours of accrued sick 3 leave under this chapter upon termination of employment. 4 2. A service employee whose employment is terminated by an 5 employer, and who is subsequently rehired shall not be entitled 6 to any unused hours of paid sick leave that had been accrued by 7 the service employee prior to the termination of the service 8 employee’s employment unless agreed to by the employer. 9 Sec. 8. NEW SECTION . 93.7 Retaliation and discrimination 10 prohibited. 11 An employer shall not retaliate or in any other manner 12 discriminate against a service employee because the service 13 employee has requested or used accrued paid sick leave in 14 accordance with this chapter or the employer’s own paid sick 15 leave policy, or because the service employee filed a complaint 16 with the commissioner alleging the employer’s violation of 17 this chapter or has cooperated in filing such a complaint. 18 An employer shall not retaliate or in any other manner 19 discriminate against an employee because the employee has filed 20 a complaint with the commissioner alleging the employer’s 21 violation of this chapter or has cooperated in filing such a 22 complaint. 23 Sec. 9. NEW SECTION . 93.8 Complaints —— remedies. 24 1. An employee or service employee may file a complaint 25 with the commissioner alleging a violation of this chapter. 26 Upon receipt of the complaint, the commissioner shall cause an 27 investigation to be made to the extent deemed appropriate. If 28 the commissioner determines from the investigation that the 29 provisions of this chapter have been violated, the commissioner 30 shall bring an action in the appropriate district court against 31 such person. The district court shall have jurisdiction, for 32 cause shown, to restrain violations of this chapter and order 33 all appropriate relief, including payment for accrued paid sick 34 leave used by the service employee or rehiring or reinstatement 35 -7- LSB 5765XS (2) 85 je/sc 7/ 12

S.F. 2245 of the employee or service employee to the former position with 1 back pay. 2 2. The commissioner shall advise any service employee who 3 is covered by a collective bargaining agreement that provides 4 for paid sick days and files a complaint pursuant to subsection 5 1, that the service employee may have a right to pursue a 6 grievance pursuant to such agreement. 7 Sec. 10. NEW SECTION . 93.9 Civil penalties. 8 1. An employer who violates section 93.7 is subject to a 9 civil penalty of not more than five hundred dollars for each 10 violation. An employer who violates any other provision of 11 this chapter is subject to a civil penalty of not more than one 12 hundred dollars for each violation. 13 2. The commissioner may propose that an employer be assessed 14 a civil money penalty by serving the employer with notice of 15 such proposal in the same manner as an original notice is 16 served under the rules of civil procedure. Upon service of 17 such notice, the proposed assessment shall be treated as a 18 contested case under chapter 17A. 19 3. If an employer does not request a hearing pursuant 20 to subsection 2 or if the commissioner determines, after an 21 appropriate hearing, that an employer is in violation of this 22 chapter, the commissioner shall assess a civil money penalty, 23 consistent with the provisions of subsection 1. 24 4. An employer may seek judicial review of any assessment 25 rendered under subsection 3 by instituting proceedings for 26 judicial review pursuant to chapter 17A. 27 5. After the time for seeking judicial review has expired 28 or after all judicial review has been exhausted and the 29 commissioner’s assessment has been upheld, the commissioner 30 shall request the attorney general to recover the assessed 31 penalties in a civil action. Any civil money penalty recovered 32 shall be deposited in the general fund of the state. 33 Sec. 11. NEW SECTION . 93.10 Construction. 34 This chapter shall not be construed to prohibit an employer 35 -8- LSB 5765XS (2) 85 je/sc 8/ 12

S.F. 2245 from doing any of the following: 1 1. Providing more paid sick leave than is required under 2 this chapter or placing limitations on the amount and purposes 3 for which a service employee may use such additional leave. 4 2. Establishing a policy whereby a service employee may 5 donate unused accrued paid sick leave to another service 6 employee. 7 3. Taking disciplinary action against a service employee 8 who uses accrued paid sick leave under this chapter for 9 purposes other than those provided in this chapter. 10 Sec. 12. NEW SECTION . 93.11 Rules. 11 The commissioner shall adopt rules to administer this 12 chapter. 13 Sec. 13. APPLICABILITY. This Act applies to collective 14 bargaining agreements entered into on or after the effective 15 date of this Act. 16 Sec. 14. APPLICABILITY. 17 1. For a service employee hired prior to the effective date 18 of this Act, paid sick leave required pursuant to this Act 19 shall begin to accrue on the effective date of this Act. For a 20 service employee hired on or after the effective date of this 21 Act, paid sick leave required pursuant to this Act shall begin 22 to accrue on the service employee’s date of hire. 23 2. A service employee hired prior to the effective date 24 of this Act shall be entitled to the use of accrued paid sick 25 leave required pursuant to this Act upon completion of six 26 hundred eighty hours of employment from the effective date of 27 this Act, unless the service employee’s employer agrees to 28 an earlier date. A service employee hired on or after the 29 effective date of this Act shall be entitled to the use of 30 accrued paid sick leave required pursuant to this Act upon 31 completion of six hundred eighty hours of employment from the 32 service employee’s date of hire, unless the service employee’s 33 employer agrees to an earlier date. 34 EXPLANATION 35 -9- LSB 5765XS (2) 85 je/sc 9/ 12

S.F. 2245 The inclusion of this explanation does not constitute agreement with 1 the explanation’s substance by the members of the general assembly. 2 This bill requires an employer to provide paid sick leave 3 annually to each service employee employed by the employer. 4 The leave shall accrue at a rate of one hour of leave for each 5 40 hours worked by a service employee, up to a maximum of 40 6 hours per calendar year. A service employee shall not be 7 entitled to use more than 40 accrued hours of paid sick leave 8 per year. Forty unused accrued hours of paid sick leave can be 9 carried over from one calendar year to the following calendar 10 year. A service employee must work an average of 10 or more 11 hours a week for the employer in the most recently completed 12 calendar quarter to be entitled to use the leave. An employer 13 shall pay a service employee for accrued paid sick leave at 14 a pay rate equal to the normal hourly wage for that service 15 employee. 16 The bill defines “service employee” as an individual 17 primarily engaged in an occupation with one of certain broad 18 or detailed occupation code numbers and titles, as defined by 19 the federal department of labor, bureau of labor statistics, 20 standard occupational classification system, and who is paid 21 on an hourly basis or subject to the minimum wage and overtime 22 compensation requirements of the federal Fair Labor Standards 23 Act. The bill defines “employer” as any person that employs 50 24 or more individuals in Iowa in any one calendar quarter in the 25 previous year, as determined annually on January 1. The bill 26 provides certain exclusions from these definitions. 27 The bill provides permitted uses of accrued paid sick leave, 28 including medical diagnosis, care, or treatment of mental 29 illness or physical illness, injury, or a health condition of a 30 service employee or the service employee’s spouse or child, as 31 well as additional uses for a service employee who is a victim 32 of domestic abuse or sexual assault. 33 The bill permits an employer to require advance notice of 34 a service employee’s intent to use accrued paid sick leave 35 -10- LSB 5765XS (2) 85 je/sc 10/ 12

S.F. 2245 and, for leave of three or more consecutive days, reasonable 1 documentation that such leave is being taken for the purposes 2 permitted by the bill. 3 The bill requires an employer to provide notice to a service 4 employee at the time of hiring of the rights provided by the 5 bill. An employer may satisfy the requirement by displaying a 6 poster at the employer’s place of business that contains the 7 required information. 8 A service employee whose employment is terminated is not 9 entitled to payment for unused accrued paid sick leave under 10 the bill or, if rehired by the employer, to restoration of 11 unused paid sick leave that had been accrued by the service 12 employee prior to the termination. 13 The bill prohibits an employer from retaliating or in any 14 other manner discriminating against a service employee because 15 the service employee has requested or used paid sick leave or 16 filed a complaint with the labor commissioner alleging the 17 employer’s violation of the bill or has cooperated in filing 18 such a complaint. The bill prohibits retaliating or in any 19 other manner discriminating against an employee who is not a 20 service employee for filing such a complaint or cooperating in 21 filing such a complaint. 22 The bill permits an employee or service employee to file 23 a complaint with the commissioner alleging a violation of 24 the bill. Upon receipt of the complaint, the commissioner 25 shall investigate to the extent deemed appropriate. If the 26 commissioner determines that the provisions of the bill have 27 been violated, the commissioner shall bring an action in 28 district court. The district court shall have jurisdiction, 29 for cause shown, to restrain violations of the bill and order 30 appropriate relief, including payment for accrued paid sick 31 leave used by the service employee or rehiring or reinstatement 32 of the employee or service employee to the former position with 33 back pay. 34 An employer who violates the prohibition against retaliation 35 -11- LSB 5765XS (2) 85 je/sc 11/ 12

S.F. 2245 or other discrimination in the bill is subject to a civil 1 penalty of not more than $500 per violation. An employer who 2 violates any other provision of the bill is subject to a civil 3 penalty of not more than $100 per violation. The bill provides 4 procedures for the imposition, contestation, and collection of 5 such penalties. 6 The bill does not prohibit an employer from providing more 7 paid sick leave than required by the bill, allowing donation 8 of unused accrued paid sick leave from one service employee 9 to another, or taking disciplinary action against a service 10 employee who uses accrued paid sick leave under the bill for 11 purposes other than those provided in the bill. 12 The bill applies to collective bargaining agreements entered 13 into on or after the effective date of the bill. 14 For a service employee hired prior to the effective date 15 of the bill, paid sick leave shall begin to accrue on the 16 effective date of the bill. For a service employee hired on 17 or after the effective date of the bill, paid sick leave shall 18 begin to accrue on the service employee’s date of hire. 19 A service employee hired prior to the effective date of 20 the bill shall be entitled to the use of accrued paid sick 21 leave upon completion of 680 hours of employment from the 22 effective date of the bill. A service employee hired on or 23 after the effective date of the bill shall be entitled to the 24 use of accrued paid sick leave upon completion of 680 hours of 25 employment from the service employee’s date of hire. 26 -12- LSB 5765XS (2) 85 je/sc 12/ 12