Senate File 2133 - Introduced SENATE FILE 2133 BY BOULTON A BILL FOR An Act relating to a family leave and medical leave insurance 1 program that provides for paid, job-protected leave for 2 certain family leave and medical leave reasons for eligible 3 employees of specified employers. 4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 5 TLSB 5236XS (7) 87 ko/rj
S.F. 2133 Section 1. NEW SECTION . 96A.1 Short title. 1 This section may be cited as the “Iowa Family and Medical 2 Leave Act” . 3 Sec. 2. NEW SECTION . 96A.2 Definitions. 4 As used in this chapter, unless the context otherwise 5 requires: 6 1. “Child” means a biological, adopted, or foster child, 7 a stepchild, a legal ward, or a child of a person standing in 8 loco parentis, regardless of the child’s age or dependency 9 status. 10 2. “Covered employer” means a private sector employer who 11 has ten or more employees for each working day during each of 12 twenty or more calendar workweeks in the current or previous 13 calendar year and a public employer without regard to the 14 number of employees employed. 15 3. “Department” means the department of workforce 16 development. 17 4. “Director” means the director of the department of 18 workforce development. 19 5. “Employee” means the same as defined in section 91A.2. 20 “Employee” does not include an independent contractor, a self- 21 employed person, or a patient or inmate employed by a state 22 or local institution to which the patient or inmate has been 23 sentenced or committed. 24 6. “Employer” means the same as defined in 91A.2. 25 “Employer” includes a temporary staffing agency or employment 26 agency. 27 7. “Employment benefits” means all benefits provided or 28 made available to an employee by an employer, including group 29 life insurance, health insurance, disability insurance, sick 30 leave, annual leave, educational benefits, and pensions except 31 benefits that are provided by a practice or written policy of 32 an employer or through an employee benefit plan as defined in 33 29 U.S.C. §1002(3). 34 8. “Family leave” means a leave taken from work by an 35 -1- LSB 5236XS (7) 87 ko/rj 1/ 24
S.F. 2133 employee for any of the following reasons: 1 a. To participate in providing care, including physical or 2 psychological care, for a family member of the employee made 3 necessary by a serious health condition of the family member. 4 b. To bond with the employee’s child after the child’s 5 birth or with a child under the age of eighteen placed with the 6 employee for adoption or foster care. 7 c. Because of a qualifying exigency for a family member as 8 permitted under the federal Family and Medical Leave Act of 9 1993, as amended, and federal regulations as provided in 29 10 C.F.R. §825.126. 11 9. “Family member” means a child, parent, or spouse of an 12 employee. 13 10. “Gross earnings” means the same as defined in section 14 85.61. 15 11. “Health care provider” means a physician or other 16 health care practitioner licensed, accredited, registered, or 17 certified to perform specified health care services consistent 18 with state law. 19 12. “In loco parentis” means an individual who has 20 day-to-day responsibilities to care for or financially support 21 a child. 22 13. “Inpatient care” means an overnight stay in a hospital, 23 hospice, or residential medical care facility, including any 24 period of incapacity, or any subsequent treatment in connection 25 with such inpatient care. 26 14. “Medical leave” means a leave from work taken by an 27 employee made necessary by the employee’s own serious health 28 condition. 29 15. “Parent” means a biological, adoptive, step, or foster 30 father or mother, or any other individual who stands in 31 loco parentis to an employee or who stood in loco parentis 32 when the employee was a child. “Parent” does not include a 33 parent-in-law. 34 16. “Period of incapacity” means an inability to work, 35 -2- LSB 5236XS (7) 87 ko/rj 2/ 24
S.F. 2133 attend school, or perform other regular daily activities due 1 to a serious health condition, treatment of a serious health 2 condition, or recovery from a serious health condition. 3 17. “Premium” or “premiums” means the payments required by 4 section 96A.12 and paid to the department for deposit in the 5 family and medical leave insurance account pursuant to section 6 96A.22. 7 18. “Public employer” means the state of Iowa, its 8 boards, commissions, agencies, departments, and its political 9 subdivisions including school districts and other special 10 purpose districts. 11 19. “Serious health condition” means an illness, injury, 12 impairment, physical condition, or mental condition that 13 involves inpatient care in a hospital, hospice, medical care 14 facility, or continued treatment or continuing supervision by 15 a health care provider. 16 20. “Spendable weekly earnings” means the amount remaining 17 after payroll taxes are deducted from an employee’s gross 18 weekly earnings. 19 21. “Spouse” means the other person with whom an individual 20 has entered into marriage as defined or recognized under state 21 law for purposes of marriage in the state in which the marriage 22 was entered into or, in the case of a marriage entered into 23 outside of any state, if the marriage is valid in the place 24 where the marriage was entered into and the marriage could have 25 been entered into in at least one state, including a same sex 26 or common law marriage. 27 22. “Wages” means the same as defined in section 91A.2. 28 Sec. 3. NEW SECTION . 96A.3 Benefit eligibility. 29 An employee is eligible for family leave and medical leave 30 as provided in this chapter after working for a covered 31 employer for both a minimum of twelve consecutive months 32 immediately preceding the employee’s request for leave and a 33 minimum of one thousand two hundred fifty hours during that 34 twelve-consecutive-month period. 35 -3- LSB 5236XS (7) 87 ko/rj 3/ 24
S.F. 2133 Sec. 4. NEW SECTION . 96A.4 Leave entitlement for a defined 1 twelve-month period. 2 1. An employee is entitled to a maximum of twelve weeks 3 of family leave during a defined period of twelve consecutive 4 months. 5 2. An employee is entitled to a maximum of twelve weeks of 6 medical leave during a defined period of twelve consecutive 7 months unless the employee experiences a serious health 8 condition, which is pregnancy-related, that results in a longer 9 period of incapacity in which case any extended medical leave 10 beyond twelve weeks shall conform with section 216.6. 11 3. An employee is entitled to a maximum combined total of 12 paid family leave and medical leave of sixteen weeks during a 13 defined period of twelve consecutive months. 14 4. An employee is not entitled to family leave or medical 15 leave of less than eight consecutive hours. 16 Sec. 5. NEW SECTION . 96A.5 Calculating the defined 17 twelve-month period. 18 The defined period of twelve consecutive months for 19 calculation of an eligible employee’s family leave or medical 20 leave entitlement begins on any of the following: 21 1. The date of birth of an employee’s child or the date 22 of placement of a child for adoption or foster care with the 23 employee. 24 2. The first day of family leave that an employee takes for 25 a family member’s serious health condition or a family member’s 26 qualifying exigency. 27 3. The first day of medical leave. 28 Sec. 6. NEW SECTION . 96A.6 Disqualification from leave 29 entitlement. 30 An eligible employee is disqualified for family leave or 31 medical leave benefits under this chapter for any of the 32 following: 33 1. An absence due to the employee’s willful intention to 34 injure or cause a sickness to the employee or to the employee’s 35 -4- LSB 5236XS (7) 87 ko/rj 4/ 24
S.F. 2133 family member. 1 2. An injury or sickness caused by the employee engaging in 2 an illegal act. 3 3. The employee’s absence due to an employer taking any 4 disciplinary action against the employee. 5 Sec. 7. NEW SECTION . 96A.7 Employee notice to employer of 6 intent to take leave. 7 1. If leave for the birth of a child or placement of a child 8 for adoption or foster care with an employee is foreseeable, 9 the employee shall provide written notice not less than thirty 10 calendar days before the date the leave is to begin. 11 2. If the birth of a child or placement of a child for 12 adoption or foster care with an employee requires leave to 13 begin in less than thirty calendar days, the employee shall 14 provide written notice as far in advance as is practicable. 15 3. If leave for a family member’s serious health condition 16 or an employee’s serious health condition is foreseeable based 17 on planned medical treatment, the employee shall do all of the 18 following: 19 a. Make a reasonable effort to schedule such medical 20 treatment, subject to the recommendation of the employee’s or 21 family member’s health care provider as appropriate, to not 22 unduly disrupt the operations of the employer. 23 b. Provide the employer with not less than thirty calendar 24 days prior written notice of the employee’s intention to take 25 leave for a family member’s serious health condition or the 26 employee’s serious health condition. 27 4. If leave for a family member’s serious health condition 28 or an employee’s serious health condition is not foreseeable, 29 the employee shall provide written notice as far in advance as 30 is practicable. 31 Sec. 8. NEW SECTION . 96A.8 Weekly claim, certification, and 32 verification. 33 Beginning January 1, 2023, family leave or medical leave 34 insurance benefits are payable to an employee during a period 35 -5- LSB 5236XS (7) 87 ko/rj 5/ 24
S.F. 2133 in which the employee is unable to perform the employee’s 1 regular or customary work because the employee is on family 2 leave or medical leave if the employee meets all of the 3 following requirements: 4 1. The employee files a weekly claim for benefits with the 5 department as required per rules adopted by the director. 6 2. The employee meets the eligibility requirements pursuant 7 to section 96A.3 or the elective coverage requirements pursuant 8 to section 96A.14. 9 3. The employee consents to the disclosure of information or 10 records that may be deemed private or confidential under state 11 or federal law. Disclosure of such information and records by 12 another state agency or an employer to the department shall 13 be solely for purposes related to the administration of this 14 chapter. Information and records disclosed by an employee 15 under this chapter shall not be public records as defined in 16 section 22.1. 17 4. The employee authorizes the health care provider of the 18 employee’s family member or of the employee, as applicable, to 19 complete a certification of a serious health condition in a 20 form as required by the director. 21 5. The employee attests that written notice has been 22 provided to the employee’s employer per section 96A.7. 23 6. The employee provides documentation of a family member’s 24 qualifying exigency if requested by the employee’s employer. 25 Sec. 9. NEW SECTION . 96A.9 Waiting period for leave 26 benefits. 27 Family leave or medical leave insurance benefits shall be 28 payable to an eligible employee following a waiting period 29 consisting of the first seven calendar days of leave. However, 30 no waiting period applies to a leave for the birth or placement 31 of a child with an eligible employee. 32 Sec. 10. NEW SECTION . 96A.10 Weekly leave benefit amount. 33 1. The basis for the calculation of a leave benefit amount 34 shall be the weekly earnings of an eligible employee on the 35 -6- LSB 5236XS (7) 87 ko/rj 6/ 24
S.F. 2133 day the leave is granted. “Weekly earnings” means the gross 1 earnings of an employee to which such employee would have been 2 entitled had the employee worked the employee’s customary hours 3 for the full pay period in which the employee is on family 4 leave or medical leave. Weekly earnings shall be computed as 5 follows, rounded to the nearest dollar, for an employee who is 6 paid on the following basis: 7 a. On a weekly pay period basis, the weekly earnings are the 8 weekly gross earnings. 9 b. On a biweekly pay period basis, the weekly earnings are 10 one-half of the biweekly gross earnings. 11 c. On a semimonthly pay period basis, the weekly earnings 12 are the semimonthly gross earnings multiplied by twenty-four 13 and then divided by fifty-two. 14 d. On a monthly pay period basis, the weekly earnings 15 are the monthly gross earnings multiplied by twelve and then 16 divided by fifty-two. 17 e. On a yearly pay period basis, the weekly earnings shall 18 be the yearly earnings divided by fifty-two. 19 f. On a daily or hourly basis, or by the output of an 20 employee, the weekly earnings shall be computed by dividing by 21 thirteen the earnings, including shift differential pay but 22 not including overtime or premium pay, of the employee earned 23 in the last completed period of thirteen consecutive calendar 24 weeks immediately preceding the start day of the leave. If 25 the employee was absent from employment for personal reasons 26 during part of the thirteen calendar weeks preceding the 27 leave, the employee’s weekly earnings shall be the amount the 28 employee would have earned had the employee worked when work 29 was available to other employees of the employer in a similar 30 occupation. A week that does not fairly reflect the employee’s 31 customary earnings shall be replaced by the closest previous 32 week with earnings that fairly represent the employee’s 33 customary earnings. 34 2. If on the date that leave begins an employee’s hourly 35 -7- LSB 5236XS (7) 87 ko/rj 7/ 24
S.F. 2133 earnings cannot be ascertained, the earnings for the purpose 1 of calculating the benefit amount shall be the usual earnings 2 for similar services where such services are rendered by paid 3 employees. 4 3. If an employee earns either no wages or less than the 5 usual weekly earnings of a regular full-time adult laborer 6 in the line of work in which the employee is working in 7 that locality, the weekly earnings shall be one-fiftieth of 8 the total earnings which the employee has earned from all 9 employment during the twelve consecutive calendar months 10 immediately preceding the date that the employee’s leave 11 begins. 12 4. The weekly leave benefit amount payable to an employee 13 for any one week shall be eighty percent of the employee’s 14 weekly spendable earnings, but shall not exceed an amount equal 15 to two hundred percent of the statewide average weekly wage 16 paid to employees as determined by the department pursuant to 17 section 96.19 and in effect on the date that the employee’s 18 leave commences. However, the weekly leave benefit amount 19 shall be a minimum equal to the lesser of the weekly leave 20 benefit amount of a person whose gross weekly earnings are 21 thirty-five percent of the statewide average weekly wage, or to 22 the spendable weekly earnings of the employee. 23 Sec. 11. NEW SECTION . 96A.11 Payment of benefits to an 24 eligible employee. 25 1. The department shall send the first benefit payment to 26 an employee within ten calendar days after the first properly 27 completed weekly claim from the employee is received by 28 the department. Subsequent payments shall be sent at least 29 biweekly to an eligible employee if a properly completed weekly 30 claim from the employee is received by the department. 31 2. If an employer contests an employee’s initial claim 32 for family leave or medical leave benefits, the employer must 33 notify the employee and the department in the manner prescribed 34 by the director within ten calendar days of the employer’s 35 -8- LSB 5236XS (7) 87 ko/rj 8/ 24
S.F. 2133 receipt of notice from the department of the employee’s filing 1 of a claim for benefits. Failure to timely contest an initial 2 application shall constitute a waiver of objection to the 3 family leave or medical leave claim. 4 3. If the department or the employer contests an employee’s 5 eligibility for benefits after the employee begins receiving 6 benefits the employee shall continue to be paid benefits 7 conditionally for any weeks for which the employee files a 8 claim for benefits. The employee’s right to retain such 9 benefit payments shall be conditioned upon the department’s 10 finding that the employee is eligible for such benefit 11 payments. 12 a. At an employee’s request, the department shall hold 13 conditional benefit payments until the department resolves the 14 employee’s eligibility status. 15 b. Payment shall be issued promptly for any withheld benefit 16 payments if the department determines that an employee is 17 eligible for benefits. 18 c. If the department determines that an employee is 19 ineligible for the conditionally paid benefits, the employee 20 shall repay the overpayment per rules as adopted by the 21 director. 22 Sec. 12. NEW SECTION . 96A.12 Funding the family leave and 23 medical leave insurance program. 24 1. Beginning on January 1, 2021, and ending December 25 31, 2022, the department shall assess for each employee 26 in employment with a covered employer a premium rate of 27 four-tenths of one percent of an employee’s wages based on the 28 amount of the individual’s wages, subject to subsection 6. 29 a. The premium rate for family leave benefits shall be equal 30 to one-third of the total premium rate. 31 b. The premium rate for medical leave benefits shall be 32 equal to two-thirds of the total premium rate. 33 2. For calendar year 2023 and subsequent calendar years the 34 director shall determine the percentage of paid claims related 35 -9- LSB 5236XS (7) 87 ko/rj 9/ 24
S.F. 2133 to family leave benefits and the percentage of paid claims 1 related to medical leave benefits and adjust the premium rates 2 set in subsection 1 by the proportional share of claims paid 3 for both types of leave. 4 3. For family leave premiums a covered employer may deduct 5 up to forty-five percent of the full amount of the required 6 premiums from the wages of each employee. The remaining 7 fifty-five percent of the required premiums shall be paid by 8 the covered employer. 9 4. For medical leave premiums a covered employer may deduct 10 up to forty-five percent of the full amount of the required 11 premiums from the wages of each employee. The remaining 12 fifty-five percent of the required premiums shall be paid by 13 the covered employer. 14 5. A covered employer may elect to pay all or any portion of 15 the employee’s share of the premiums for family leave benefits 16 or medical leave benefits or both. 17 6. The director shall annually set a maximum limit on the 18 amount of an employee’s wages that are subject to a premium 19 assessment under this section that is equal to the contribution 20 and benefit base for the calendar year as determined by the 21 United States social security administration for purposes of 22 26 U.S.C. §3121(a). 23 7. For calendar year 2023 and subsequent calendar years, 24 the total premium rate shall be based on the family leave and 25 medical leave insurance account balance ratio as of September 26 30 of the previous year. The director shall calculate the 27 account balance ratio by dividing the balance of the family 28 leave and medical leave insurance account by the total wages 29 paid by covered employers. The division shall be carried 30 to the fourth decimal place with the remaining fraction 31 disregarded unless it amounts to five hundred thousandths or 32 more in which case the fourth decimal place shall be rounded 33 to the next higher digit. If the family leave and medical 34 leave insurance account balance ratio is any of the following 35 -10- LSB 5236XS (7) 87 ko/rj 10/ 24
S.F. 2133 percentages, the premium shall be the following percentage of 1 an employee’s wages subject to a premium assessment: 2 a. If the ratio is zero to nine hundredths of one percent, 3 the premium shall be six-tenths of one percent. 4 b. If the ratio is one-tenth of one percent to nineteen 5 hundredths of one percent, the premium shall be five-tenths of 6 one percent. 7 c. If the ratio is two-tenths of one percent to twenty-nine 8 hundredths of one percent, the premium shall be four-tenths of 9 one percent. 10 d. If the ratio is three-tenths of one percent to 11 thirty-nine hundredths of one percent, the premium shall be 12 three-tenths of one percent. 13 e. If the ratio is four-tenths of one percent to forty-nine 14 hundredths of one percent, the premium shall be two-tenths of 15 one percent. 16 f. If the ratio is five-tenths of one percent or greater, 17 the premium shall be one-tenth of one percent. 18 8. Beginning January 1, 2023, if the account balance ratio 19 calculated in subsection 7 is below five hundredths of one 20 percent, the director shall assess a solvency surcharge at 21 the lowest rate necessary to provide revenue to pay for the 22 administrative and benefit costs of family leave and medical 23 leave insurance for the calendar year. The solvency surcharge 24 shall be at least one-tenth of one percent and no more than 25 six-tenths of one percent and shall be added to the total 26 premium rate assessed to each employee of a covered employer 27 for family leave and medical leave benefits. 28 9. A covered employer shall collect all required premiums 29 and surcharges from the employer’s employees through payroll 30 deductions and shall remit the amount collected and the amount 31 to be paid by the employer to the department as required by 32 rules adopted by the director. 33 10. On September 30 of each year the department shall 34 average the number of employees reported by an employer over 35 -11- LSB 5236XS (7) 87 ko/rj 11/ 24
S.F. 2133 the last four completed calendar quarters to determine the 1 number of employees employed by the employer for the purpose 2 of determining if an employer shall be considered a covered 3 employer for the next calendar year. 4 Sec. 13. NEW SECTION . 96A.13 Waiver of premium for 5 out-of-state employee. 6 1. An employer may file an application with the department 7 for a conditional waiver of the payment of family leave and 8 medical leave premiums assessed under section 96A.12 for an 9 employee who meets all of the following requirements: 10 a. The employee is physically based outside of the state. 11 b. The employee is physically working in the state on a 12 limited or temporary work schedule. 13 c. The employee is not expected to be physically working 14 in the state for one thousand two hundred fifty hours or more 15 during any consecutive twelve-month period. 16 2. The department shall approve an application that is 17 signed by both the employee and the employee’s employer 18 attesting to compliance with the requirements of subsection 1. 19 3. If the employee physically works in the state for one 20 thousand two hundred fifty hours or more in any consecutive 21 twelve-month period, the conditional waiver shall expire and 22 the employer and employee shall be responsible for all premiums 23 pursuant to section 96A.12 for the consecutive twelve-month 24 period in which the employee worked one thousand two hundred 25 fifty hours or more. Upon submission of the premiums by the 26 employer to the department, the employee shall be credited for 27 the hours worked during that consecutive twelve-month period 28 and shall be eligible for benefits under this chapter. 29 Sec. 14. NEW SECTION . 96A.14 Self-employed persons elective 30 participation in the family leave and medical leave insurance 31 program. 32 1. A self-employed person electing to participate in 33 the family leave and medical leave insurance program shall 34 be considered an employer or employee where the context so 35 -12- LSB 5236XS (7) 87 ko/rj 12/ 24
S.F. 2133 dictates. 1 2. For benefits payable beginning January 1, 2023, a 2 self-employed person may elect to participate in the family 3 leave and medical leave insurance program under this chapter 4 if the self-employed person meets all of the following 5 requirements: 6 a. The initial participation period for the self-employed 7 person must be a minimum of three years. 8 b. Any subsequent period of participation by the 9 self-employed person must be for a minimum of one year. 10 c. The self-employed person must participate in both family 11 leave and medical leave. 12 d. One hundred percent of all premiums assessed under 13 section 96A.12 shall be paid by the self-employed person. 14 3. A self-employed person shall file a written notice of 15 election of elective coverage with the department in the manner 16 required by the director. 17 4. A self-employed person shall be eligible for 18 family leave and medical leave benefits after working one 19 thousand two hundred fifty hours in the state during the 20 twelve-consecutive-month period immediately following the date 21 of the written notice the self-employed person filed pursuant 22 to subsection 3. 23 5. A self-employed person who has elected coverage may 24 withdraw from coverage within thirty calendar days after the 25 end of each period of coverage by filing a written notice of 26 withdrawal as required by the director. The withdrawal shall 27 take effect no sooner than thirty calendar days after the 28 self-employed person files the notice of withdrawal. 29 6. If a self-employed person fails to submit the required 30 premium payments, the department may cancel the person’s 31 elective coverage. The cancellation shall be effective no 32 sooner than thirty days from the date of a written notice 33 from the department to the self-employed person advising the 34 self-employed person of the impending cancellation of the 35 -13- LSB 5236XS (7) 87 ko/rj 13/ 24
S.F. 2133 self-employed person’s elective coverage. The department shall 1 collect all due and unpaid premiums for the remainder of the 2 period of coverage from the self-employed person. 3 Sec. 15. NEW SECTION . 96A.15 Employment protection. 4 1. An eligible employee who takes family leave or medical 5 leave under this chapter is entitled to any of the following on 6 the employee’s return from leave: 7 a. To be restored to the same position held by the employee 8 when the employee’s leave commenced. 9 b. To be restored to an equivalent position with equivalent 10 employment benefits, pay, and other terms and conditions of 11 employment. 12 2. As a condition of restoration under subsection 1 for an 13 employee who has taken medical leave, the employer may apply 14 to the employee a uniform policy that requires an employee to 15 provide certification from the employee’s health care provider 16 that the employee is able to resume work. 17 3. Taking leave under this chapter shall not result in the 18 loss of any employment benefits accrued by an employee prior to 19 the date on which the employee’s leave commenced. 20 4. This section shall not be construed to entitle a restored 21 employee to any of the following: 22 a. The accrual of any seniority or employment benefits 23 during any period of leave. 24 b. Any right, benefit, or position of employment other than 25 any right, benefit, or position of employment to which the 26 employee would have been entitled had the employee not taken 27 leave. 28 5. This section shall not be construed to prohibit an 29 employer from requiring an employee on leave to report 30 periodically to the employer on the status and intention of the 31 employee to return to work. 32 6. An employer may deny restoration under this section to 33 a salaried employee who is among the ten percent highest paid 34 of the employees employed by the employer within seventy-five 35 -14- LSB 5236XS (7) 87 ko/rj 14/ 24
S.F. 2133 miles of the facility at which the employee is employed if all 1 of the following apply: 2 a. Denial of restoration is necessary to prevent substantial 3 and grievous economic injury to the operations of the employer. 4 b. The employer notifies the employee of the intent of the 5 employer to deny restoration on such basis at the time the 6 employer determines such basis exists. 7 c. The employee is on leave and elects not to return 8 to employment after receiving the employer’s notice of the 9 employer’s intent not to restore the employee. 10 7. This section shall not be construed as providing an 11 employee greater restoration rights than those required under 12 the federal Family and Medical Leave Act of 1993, as amended. 13 Sec. 16. NEW SECTION . 96A.16 Maintenance of existing health 14 benefits. 15 If required by the federal Family and Medical Leave 16 Act of 1993, as amended, an employer shall maintain any 17 existing health benefits of an employee for the duration of 18 an employee’s leave under this chapter. If the employer and 19 the employee normally share the cost of such existing health 20 benefits, the employee shall remain responsible for the 21 employee’s share of the cost of such. 22 Sec. 17. NEW SECTION . 96A.17 Employer submission of reports 23 and maintenance of records. 24 1. As specified by the director and in the form and at 25 the time as required by the director an employer shall submit 26 reports and furnish information related to the family leave and 27 medical leave insurance program to the director. 28 2. An employer shall maintain at the employer’s primary 29 place of business a record of employment for each employee from 30 which any information needed by the department for purposes of 31 this chapter may be obtained. Such record shall be maintained 32 for ten years from the date on which an eligible employee 33 applies for family leave or medical leave under this chapter. 34 The record shall be open for inspection by the director at all 35 -15- LSB 5236XS (7) 87 ko/rj 15/ 24
S.F. 2133 times. All personnel and employee medical records shall be 1 maintained by the employer in compliance with all applicable 2 federal and state laws. 3 Sec. 18. NEW SECTION . 96A.18 Coordination of family leave 4 and medical leave with other laws and with employer policies. 5 1. Family leave or medical leave taken by an employee 6 under this chapter shall be in addition to any leave required 7 by applicable state or federal law for sickness or temporary 8 disability because of pregnancy or childbirth. 9 2. Family leave or medical leave taken by an employee under 10 this chapter shall be taken concurrently with any leave taken 11 under the federal Family and Medical Leave Act of 1993, as 12 amended. 13 3. An employer may allow an employee who has accrued 14 vacation, sick, or other paid time off to choose to use either 15 such accrued time or to receive paid family leave or medical 16 leave insurance benefits under this chapter. 17 Sec. 19. NEW SECTION . 96A.19 Relationship to other state 18 and federal benefits. 19 In any week an employee is eligible to receive benefits under 20 chapter 85, 85A, 85B, or 96, or any other applicable state or 21 federal unemployment compensation, workers’ compensation, or 22 disability insurance laws, the employee is disqualified from 23 receiving family leave or medical leave insurance benefits 24 under this chapter. 25 Sec. 20. NEW SECTION . 96A.20 Discrimination prohibited. 26 This chapter shall not be construed to modify or affect any 27 federal, state, or local law prohibiting discrimination on the 28 basis of age, race, creed, color, sex, sexual orientation, 29 gender identity, national origin, religion, disability, or 30 other protected category. 31 Sec. 21. NEW SECTION . 96A.21 Department to administer 32 family leave and medical leave insurance program and conduct 33 outreach. 34 1. The director shall establish and administer the family 35 -16- LSB 5236XS (7) 87 ko/rj 16/ 24
S.F. 2133 leave and medical leave insurance program and disburse family 1 leave and medical leave benefits to an eligible employee as 2 specified in this chapter. 3 2. The director shall establish procedures and forms for 4 an employee to file an application for benefits under this 5 chapter. 6 3. The department shall notify an employer within five 7 business days of an employee filing a claim for family leave or 8 medical leave insurance benefits. 9 4. Information and records pertaining to an employee under 10 this chapter that are maintained by the department shall 11 be confidential and shall only be available to department 12 personnel in the performance of official duties. 13 5. The director shall develop and implement an outreach 14 program to ensure that employers and employees are aware of 15 the family leave and medical leave insurance program and are 16 aware of the leave benefits available to eligible employees. 17 Outreach information shall explain in an easy-to-understand 18 format all of the following: 19 a. Eligibility requirements. 20 b. The application process. 21 c. How weekly benefits are calculated and the minimum and 22 maximum weekly benefit amount. 23 d. Restoration rights. 24 e. Nondiscrimination rights. 25 f. Confidentiality. 26 g. The relationship between employment protection, leave 27 from employment, wage replacement benefits under this chapter 28 and other laws, and employer policies. 29 6. The department shall be authorized to inspect and audit 30 an employer’s files and records relating to the family leave 31 and medical leave insurance program under this chapter. 32 Sec. 22. NEW SECTION . 96A.22 Family leave and medical leave 33 insurance account. 34 1. The family leave and medical leave insurance account 35 -17- LSB 5236XS (7) 87 ko/rj 17/ 24
S.F. 2133 is created as a separate account in the state treasury in the 1 custody of the treasurer of state. 2 2. The director shall deposit all receipts from premiums 3 imposed under this chapter into such account. Expenditures 4 from the account shall be used only for the purposes of the 5 family leave and medical leave insurance program and only as 6 authorized by the director. 7 3. All premiums deposited in the account shall remain in 8 the account until expended pursuant to the requirements of this 9 chapter. 10 Sec. 23. NEW SECTION . 96A.23 Rules. 11 The director shall adopt rules pursuant to chapter 17A as 12 necessary to implement and administer this chapter. 13 Sec. 24. NEW SECTION . 96A.24 Enforcement. 14 The director may take any action under the director’s 15 authority to enforce compliance with this chapter. 16 Sec. 25. Section 84A.1, subsection 1, Code 2018, is amended 17 to read as follows: 18 1. The department of workforce development is created to 19 administer the laws of this state relating to unemployment 20 compensation insurance, job placement and training, employment 21 safety, labor standards, and workers’ compensation , and the 22 family leave and medical leave insurance program . 23 Sec. 26. DIRECTOR ANALYSIS OF FUNDING THE FAMILY LEAVE 24 AND MEDICAL LEAVE INSURANCE PROGRAM AND REPORT TO THE GENERAL 25 ASSEMBLY. The director of the department of workforce 26 development shall conduct an analysis of the family leave 27 and medical leave insurance program as funded pursuant to 28 section 96A.12, as enacted in this Act, and of the benefits 29 paid pursuant to section 96A.10, as enacted in this Act. The 30 director shall determine if the premium rates and benefit 31 levels are appropriate to fully fund and maintain the solvency 32 of the family leave and medical leave insurance account. 33 The director shall submit the director’s findings to the 34 general assembly pursuant to section 7A.11 no later than 35 -18- LSB 5236XS (7) 87 ko/rj 18/ 24
S.F. 2133 January 14, 2019. 1 EXPLANATION 2 The inclusion of this explanation does not constitute agreement with 3 the explanation’s substance by the members of the general assembly. 4 This bill relates to a family leave and medical leave 5 insurance program, administered by the director of the 6 department of workforce development, that provides for paid, 7 job protected leave for certain family leave and medical leave 8 reasons for eligible employees of specified employers. 9 An employee is eligible for family leave and medical leave 10 after working for a covered employer, as defined in the bill, 11 for a minimum of 12 consecutive months and a minimum of 1,250 12 hours during the 12 consecutive-month period immediately 13 preceding the employee’s request for leave. Family leave and 14 medical leave are defined in the bill. Family leave includes 15 leave to care for an immediate family member with a serious 16 health condition, to bond with a newborn child or adopted or 17 foster child, or for a qualifying exigency for a family member 18 as permitted under the federal Family and Medical Leave Act 19 of 1993, as amended. Medical leave includes leave due to 20 the employee’s own serious health condition. Serious health 21 condition is defined in the bill. 22 The bill provides that an eligible employee may not receive 23 more than 12 weeks of family leave, 12 weeks of medical leave, 24 or 16 weeks of combined family and medical leave in a defined 25 consecutive 12-month period. The defined consecutive 12-month 26 period begins on the date of the birth of a child or placement 27 of a child for adoption or foster care with an eligible 28 employee, or on the first date that an eligible employee takes 29 either family leave or medical leave. The minimum duration of 30 leave an eligible employee may take is eight consecutive hours. 31 An employee is disqualified for family leave and medical 32 leave benefits for an absence due to the employee purposefully 33 causing injury or sickness to the employee or a family member, 34 for an absence caused by an illness or injury due to the 35 -19- LSB 5236XS (7) 87 ko/rj 19/ 24
S.F. 2133 employee engaging in an illegal act, or an absence due to an 1 employer taking disciplinary action against the employee. 2 An employee must provide a minimum of 30 days’ notice to an 3 employer of the employee’s intent to take leave for the birth 4 of a child or placement of a child for adoption or foster care 5 with the employee, or of the employee’s intent to take family 6 leave or medical leave. If circumstances necessitate that an 7 employee’s leave begins in less than 30 days the employee must 8 give as much notice as is practicable. If an eligible employee 9 requests medical leave or family leave, the employee must make 10 a reasonable effort to schedule their own medical treatment, or 11 their family member’s medical treatment, to not unduly disrupt 12 the employer’s operations. 13 The bill requires an eligible employee to file a claim 14 for benefits as required by the director. The employee 15 must consent to the disclosure of potentially private or 16 confidential information to and from the department and the 17 employee’s employer for the administration of the family leave 18 or medical leave. The bill specifies that such information 19 is not a public record pursuant to Code section 22.1. The 20 employee must attest that the employee has provided notice 21 of the employee’s intent to take leave to the employee’s 22 employer. The employee must also authorize the employee’s 23 health care provider, or the employee’s family member’s health 24 care provider, to complete a certification of a serious health 25 condition as required by the director. 26 The bill provides for a seven-day waiting period before 27 benefits are payable. There is no waiting period for leave for 28 the birth of a child or placement of a child for adoption or 29 foster care. 30 The basis for the calculation of the amount of a family 31 leave or medical leave benefit is an eligible employee’s weekly 32 earnings as defined in the bill. The weekly leave benefit 33 amount payable to an employee for any one week is 80 percent 34 of the employee’s weekly spendable earnings, but shall not 35 -20- LSB 5236XS (7) 87 ko/rj 20/ 24
S.F. 2133 exceed an amount equal to 200 percent of the statewide average 1 weekly wage paid to employees as determined by the department 2 of workforce development pursuant to Code section 96.19. The 3 minimum weekly leave benefit amount shall be equal to the 4 weekly leave benefit amount of a person whose gross weekly 5 earnings are 35 percent of the statewide average weekly wage, 6 or to the spendable weekly earnings of the employee, whichever 7 is less. “Spendable weekly earnings” is defined in the bill as 8 the amount remaining after payroll taxes are deducted from an 9 employee’s gross weekly earnings. 10 The department shall send the first benefit payment to an 11 eligible employee within 10 days after a properly completed 12 weekly claim for benefits is completed by the employee 13 and received by the department. If the employee continues 14 to submit a properly completed weekly claim, subsequent 15 payments are to be made to the employee at least biweekly. 16 If an employer, or the department, contests an employee’s 17 eligibility, benefit payments may be made on a conditional 18 basis. The employee is required to pay the benefits back if 19 the department later rules that the employee is ineligible to 20 receive such benefits. 21 The bill provides that the family leave and medical leave 22 insurance program shall be funded via employee and employer 23 contributions. Beginning on January 1, 2021, and ending 24 on December 31, 2022, the department will assess a covered 25 employer a premium rate of four-tenths of one percent of an 26 employee’s weekly wages, subject to a maximum limit of wages 27 subject to the assessment, as determined by the director based 28 on the maximum wages subject to taxation for social security. 29 One-third of the premium is to be used to fund family leave 30 insurance benefits and two-thirds of the premium is to be 31 used to fund medical leave benefits. The covered employer 32 may deduct the full amount of the family leave premium from 33 an employee’s wage. A covered employer may deduct up to 45 34 percent of the medical leave premium and 45 percent of the 35 -21- LSB 5236XS (7) 87 ko/rj 21/ 24
S.F. 2133 family leave premium from an employee’s wage. The employer 1 must pay the remaining 55 percent of both the medical leave and 2 family leave premiums. An employer may elect to pay all or any 3 portion of an employee’s share of premiums for family leave or 4 medical leave benefits or both. Beginning January 1, 2023, the 5 premium rate shall be calculated by the director based on the 6 family leave and medical leave insurance account balance ratio 7 as of September 30 of the previous calendar year. The premium 8 rate is adjusted based on the balance ratio as detailed in the 9 bill. If the balance ratio falls below five hundredths of one 10 percent the bill requires the director to assess a solvency 11 surcharge that is added to the total premium rate assessed to a 12 covered employer. The minimum solvency surcharge is one-tenth 13 of one percent and the maximum solvency surcharge is six-tenths 14 of one percent. 15 On September 30 of each year, the bill requires the 16 department to average the number of employees reported by an 17 employer over the last four completed calendar quarters to 18 determine if an employer is a covered employer for the next 19 calendar year. 20 The bill requires a covered employer to collect all assessed 21 premiums and surcharges from the employer’s employees through 22 payroll deduction and to remit all premiums to the department 23 as required by the director. 24 An employer may apply for, and the director must grant, a 25 waiver of premiums for an employee who is located physically 26 outside of the state and not expected to work in the state for 27 1,250 or more hours in any consecutive 12-month period. If 28 the employee subsequently works 1,250 or more hours within 29 the state, the employer and employee are responsible for all 30 premiums that should have been collected for such 12-month 31 period. 32 Self-employed persons may elect to participate in the 33 family leave and medical leave insurance program for a 34 minimum initial participation period of three years. Any 35 -22- LSB 5236XS (7) 87 ko/rj 22/ 24
S.F. 2133 subsequent period of participation must be for a minimum of 1 one year. A self-employed person must pay the employee and 2 employer’s portion of the premium assessed by the director. A 3 self-employed person who elects to participate in the program 4 is eligible for family leave and medical leave benefits 5 after working a minimum of 1,250 hours in the consecutive 6 12-month period immediately following the self-employed 7 person’s election to participate in the program. The 8 self-employed person may withdraw from the program by providing 9 written notice to the director. The director may cancel the 10 self-employed person’s elective coverage for failure to submit 11 the required premiums. 12 An eligible employee who takes family leave or medical leave 13 is entitled to restoration of employment equal to but not 14 greater than that as provided by the federal Family Medical 15 Leave Act of 1993 (FMLA), as amended. The bill provides that 16 if required under FMLA, an employer must maintain any existing 17 health benefits for the duration of an employee’s leave. If 18 the employer and employee normally share the cost of such, the 19 employee remains responsible for paying the employee’s share 20 of the costs. 21 A covered employer must submit reports as required by the 22 director and maintain employment records for each employee 23 from which the director may obtain information related to an 24 employee’s family leave or medical leave. Such records shall 25 be maintained for 10 years from the date on which an employee 26 first takes a family leave or medical leave and shall be open 27 for inspection by the director. 28 The bill provides that family leave or medical leave shall 29 be in addition to leave required under state or federal law 30 for sickness or temporary disability due to pregnancy or 31 childbirth. The bill requires family leave or medical leave 32 taken under this program to be taken concurrently with leave 33 taken under FMLA. A covered employer may allow an employee to 34 choose to use either accrued sick or vacation benefits or claim 35 -23- LSB 5236XS (7) 87 ko/rj 23/ 24
S.F. 2133 family leave and medical leave benefits under this bill. An 1 employee is prohibited from receiving family leave or medical 2 leave benefits at the same time the employee is receiving state 3 or federal unemployment, workers’ compensation, or disability 4 benefits. The bill prohibits discrimination on the basis of 5 any state or federally protected category. 6 The bill requires the director to administer the family 7 leave and medical leave insurance program and to provide 8 outreach to ensure that employers and employees are aware of 9 the program and the benefits available under such. 10 The bill provides that a family leave and medical leave 11 insurance account shall be created in the custody of the 12 treasurer of state. The director shall deposit all premiums 13 collected from employers into such account. The account shall 14 only be used for purposes of the family leave and medical leave 15 insurance program as authorized by the director. 16 The director shall adopt rules pursuant to Code chapter 17A 17 as necessary to implement and administer the provisions of the 18 bill. The director may take any action under the director’s 19 authority to enforce compliance with the bill. 20 Code section 84A.1(1) is amended to require the department 21 of workforce development to administer the laws relating to the 22 family leave and medical leave insurance program. 23 The director is required to analyze the funding of the 24 family leave and medical leave insurance program and the 25 benefits payable from the program’s account. The director 26 shall determine if the premium rates and the benefit levels 27 are appropriate to fully fund and maintain the solvency of the 28 family leave and medical leave insurance program. The director 29 shall submit the director’s findings to the general assembly 30 no later than January 14, 2019. 31 -24- LSB 5236XS (7) 87 ko/rj 24/ 24