House File 2631 - Introduced HOUSE FILE 2631 BY GOSA , B. MEYER , LEVIN , MATSON , WICHTENDAHL , BROWN-POWERS , R. JOHNSON , AMOS JR. , WILBURN , RAMIREZ , MADISON , BAETH , CROKEN , ZABNER , and COOLING 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 5693YH (4) 91 je/js

H.F. 2631 Section 1. Section 7E.5, subsection 1, paragraph h, Code 1 2026, is amended to read as follows: 2 h. The department of workforce development, created 3 in section 84A.1 , which has primary responsibility for 4 administering the laws relating to unemployment compensation 5 insurance, job placement and training, the family leave and 6 medical insurance program, and related matters. 7 Sec. 2. Section 84A.1, subsection 1, Code 2026, is amended 8 to read as follows: 9 1. The department of workforce development is created to 10 administer the laws of this state relating to unemployment 11 compensation insurance , and job placement and training , and the 12 family leave and medical leave insurance program . 13 Sec. 3. NEW SECTION . 96A.1 Short title. 14 This chapter may be cited as the “Iowa Family and Medical 15 Leave Act” . 16 Sec. 4. NEW SECTION . 96A.2 Definitions. 17 As used in this chapter, unless the context otherwise 18 requires: 19 1. “Child” means a biological, adopted, or foster child, 20 a stepchild, a legal ward, or a child of a person standing in 21 loco parentis, regardless of the child’s age or dependency 22 status. 23 2. “Covered employer” means a private sector employer who 24 has ten or more employees for each working day during each of 25 twenty or more calendar workweeks in the current or previous 26 calendar year, and a public employer without regard to the 27 number of employees employed. 28 3. “Department” means the department of workforce 29 development. 30 4. “Director” means the director of the department of 31 workforce development. 32 5. “Domestic abuse” includes domestic abuse as defined in 33 section 236.2 and domestic abuse assault as defined in section 34 708.2A. 35 -1- LSB 5693YH (4) 91 je/js 1/ 24

H.F. 2631 6. “Employee” means a natural person who is employed in 1 this state for wages by an employer. “Employee” also includes 2 a commission salesperson who takes orders or performs services 3 on behalf of a principal and who is paid on the basis of 4 commissions but does not include persons who purchase for 5 their own account for resale. “Employee” shall not include an 6 independent contractor, a self-employed person, or a patient or 7 inmate employed by a state or local institution to which the 8 patient or inmate has been sentenced or committed, or any of 9 the following persons engaged in agriculture: 10 a. The spouse of the employer and a relative of either the 11 employer or the employer’s spouse who resides on the premises 12 of the employer. 13 b. A person engaged in agriculture as an owner-operator 14 or tenant-operator, and the spouse or a relative of either 15 an owner-operator or a tenant-operator who resides on the 16 premises while exchanging labor with the owner-operator or the 17 tenant-operator for mutual benefit. 18 c. A neighboring person engaged in agriculture who is 19 exchanging labor or other services. 20 7. “Employer” means the same as defined in 91A.2. 21 “Employer” includes a temporary staffing agency or employment 22 agency. 23 8. “Employment benefits” means all benefits provided or 24 made available to an employee by an employer, including group 25 life insurance, health insurance, disability insurance, sick 26 leave, annual leave, educational benefits, and pensions except 27 benefits that are provided by a practice or written policy of 28 an employer or through an employee benefit plan as defined in 29 29 U.S.C. §1002(3). 30 9. “Family leave” means a leave taken from work by an 31 employee for any of the following reasons: 32 a. To participate in providing care, including physical or 33 psychological care, for a family member of the employee made 34 necessary by a serious health condition of the family member. 35 -2- LSB 5693YH (4) 91 je/js 2/ 24

H.F. 2631 b. To bond with the employee’s child after the child’s 1 birth, or with a child under the age of eighteen placed with 2 the employee for adoption or foster care. 3 c. Because of a qualifying exigency for a family member as 4 permitted under the federal Family and Medical Leave Act of 5 1993, as amended, and federal regulations as provided in 29 6 C.F.R. §825.126. 7 d. Because the employee or a family member has been a 8 victim of crime, provided the leave is to do one or more of the 9 following: 10 (1) Seek medical attention for the employee or family member 11 to recover from physical or psychological injury or disability 12 caused by having been a victim of crime. 13 (2) Obtain services or counseling from a victim services 14 organization, licensed social worker, marital and family 15 therapist, mental health counselor, psychologist, or 16 psychiatrist. 17 (3) Seek relocation or change of residence due to having 18 been a victim of crime. 19 (4) Take legal action, including reporting the crime to law 20 enforcement and preparing for or participating in any civil or 21 criminal legal proceeding related to or resulting from having 22 been a victim of crime. 23 (5) Obtain other services to ensure the safety of the 24 employee or family member or the employee’s home or vehicle. 25 10. “Family member” means a child, parent, or spouse of an 26 employee. 27 11. “Gross earnings” means the same as defined in section 28 85.61. 29 12. “Health care provider” means a physician or other 30 health care practitioner licensed, accredited, registered, or 31 certified to perform specified health care services consistent 32 with state law. 33 13. “In loco parentis” means an individual who has 34 day-to-day responsibilities to care for or financially support 35 -3- LSB 5693YH (4) 91 je/js 3/ 24

H.F. 2631 a child. 1 14. “Inpatient care” means an overnight stay in a hospital, 2 hospice, or residential medical care facility, including any 3 period of incapacity, or any subsequent treatment in connection 4 with such inpatient care. 5 15. “Medical leave” means a leave from work taken by an 6 employee made necessary by the employee’s own serious health 7 condition. 8 16. “Other violent crime” means a crime causing, meant to 9 cause, or threatening to cause personal injury to a person. 10 17. “Parent” means a biological, adoptive, step, or foster 11 father or mother, or any other individual who stands in 12 loco parentis to an employee or who stood in loco parentis 13 when the employee was a child. “Parent” does not include a 14 parent-in-law. 15 18. “Period of incapacity” means an inability to work, 16 attend school, or perform other regular daily activities due 17 to a serious health condition, treatment of a serious health 18 condition, or recovery from a serious health condition. 19 19. “Premium” or “premiums” means the payments required by 20 section 96A.12 and paid to the department for deposit in the 21 family and medical leave insurance account pursuant to section 22 96A.22. 23 20. “Public employer” means the state of Iowa, its 24 boards, commissions, agencies, departments, and its political 25 subdivisions including school districts and other special 26 purpose districts. 27 21. “Serious health condition” means an illness, injury, 28 impairment, physical condition, or mental condition that 29 involves inpatient care in a hospital, hospice, medical care 30 facility, or continued treatment or continuing supervision by 31 a health care provider. 32 22. “Spendable weekly earnings” means the amount remaining 33 after payroll taxes are deducted from an employee’s gross 34 weekly earnings. 35 -4- LSB 5693YH (4) 91 je/js 4/ 24

H.F. 2631 23. “Spouse” means the person with whom an individual has 1 entered into marriage as defined or recognized under state law 2 for purposes of marriage in the state in which the marriage 3 was entered into or, in the case of a marriage entered into 4 outside of any state, if the marriage is valid in the place 5 where the marriage was entered into and the marriage could have 6 been entered into in at least one state, including a common law 7 marriage. 8 24. “Stalking” means the same as described in section 9 708.11. 10 25. “Victim of crime” means a victim of domestic abuse, 11 sexual abuse, stalking, other violent crime, or the surviving 12 family member of a murder victim. 13 26. “Wages” means the same as defined in section 91A.2. 14 Sec. 5. NEW SECTION . 96A.3 Benefit eligibility. 15 An employee is eligible for family leave and medical leave 16 as provided in this chapter after working for a covered 17 employer for both a minimum of twelve consecutive months 18 immediately preceding the employee’s request for leave and a 19 minimum of one thousand two hundred fifty hours during that 20 twelve-consecutive-month period. 21 Sec. 6. NEW SECTION . 96A.4 Leave entitlement for a defined 22 twelve-month period. 23 1. An employee is entitled to a maximum of twelve weeks 24 of family leave during a defined period of twelve consecutive 25 months. 26 2. An employee is entitled to a maximum of twelve weeks of 27 medical leave during a defined period of twelve consecutive 28 months unless the employee experiences a serious health 29 condition, which is pregnancy-related, that results in a longer 30 period of incapacity in which case any extended medical leave 31 beyond twelve weeks shall conform with section 216.6. 32 3. An employee is entitled to a maximum combined total of 33 paid family leave and medical leave of twelve weeks during a 34 defined period of twelve consecutive months. 35 -5- LSB 5693YH (4) 91 je/js 5/ 24

H.F. 2631 4. An employee is not entitled to family leave or medical 1 leave of less than eight consecutive hours. 2 Sec. 7. NEW SECTION . 96A.5 Calculating the defined 3 twelve-month period. 4 The defined period of twelve consecutive months for 5 calculation of an eligible employee’s family leave or medical 6 leave entitlement begins on any of the following: 7 1. The date of birth of the employee’s child, or the date 8 of placement of a child for adoption or foster care with the 9 employee. 10 2. The first day of family leave that the employee takes for 11 a family member’s serious health condition or a family member’s 12 qualifying exigency or for the employee or family member being 13 a victim of crime. 14 3. The first day of the employee’s medical leave. 15 Sec. 8. NEW SECTION . 96A.6 Disqualification from leave 16 entitlement. 17 An eligible employee is disqualified for family leave or 18 medical leave benefits under this chapter for any of the 19 following reasons: 20 1. An absence due to the employee’s willful intention to 21 injure or cause a sickness to the employee or to the employee’s 22 family member. 23 2. An injury or sickness caused by the employee engaging in 24 an illegal act. 25 3. The employee’s absence due to an employer taking any 26 disciplinary action against the employee. 27 Sec. 9. NEW SECTION . 96A.7 Employee notice to employer of 28 intent to take leave. 29 1. If leave for the birth of a child or placement of a child 30 for adoption or foster care with an employee is foreseeable, 31 the employee shall provide written notice to the employer not 32 less than thirty calendar days before the date the leave is to 33 begin. 34 2. If the birth of a child or placement of a child for 35 -6- LSB 5693YH (4) 91 je/js 6/ 24

H.F. 2631 adoption or foster care with an employee requires leave to 1 begin in less than thirty calendar days, the employee shall 2 provide written notice to the employer as far in advance as is 3 practicable. 4 3. If leave for a family member’s serious health condition 5 or an employee’s serious health condition is foreseeable based 6 on planned medical treatment, the employee shall do all of the 7 following: 8 a. Make a reasonable effort to schedule such medical 9 treatment, subject to the recommendation of the employee’s or 10 family member’s health care provider as appropriate, to not 11 unduly disrupt the operations of the employer. 12 b. Provide the employer with not less than thirty calendar 13 days prior written notice of the employee’s intention to take 14 leave for a family member’s serious health condition or the 15 employee’s serious health condition. 16 4. If leave for a family member’s serious health condition 17 or an employee’s serious health condition is not foreseeable, 18 the employee shall provide written notice to the employer as 19 far in advance as is practicable. 20 Sec. 10. NEW SECTION . 96A.8 Weekly claim, certification, 21 and verification. 22 Beginning January 1, 2031, family leave or medical leave 23 insurance benefits are payable to an employee during a period 24 in which the employee is unable to perform the employee’s 25 regular or customary work because the employee is on family 26 leave or medical leave if the employee meets all of the 27 following requirements: 28 1. The employee files a weekly claim for benefits with the 29 department as required per rules adopted by the director. 30 2. The employee meets the eligibility requirements pursuant 31 to section 96A.3 or the elective coverage requirements pursuant 32 to section 96A.14. 33 3. The employee consents to the disclosure of information or 34 records that may be deemed private or confidential under state 35 -7- LSB 5693YH (4) 91 je/js 7/ 24

H.F. 2631 or federal law. Disclosure of such information and records by 1 another state agency or an employer to the department shall 2 be solely for purposes related to the administration of this 3 chapter. Information and records disclosed by an employee 4 under this chapter shall not be public records as defined in 5 section 22.1. 6 4. The employee authorizes the health care provider of the 7 employee’s family member or of the employee, as applicable, to 8 complete a certification of a serious health condition in a 9 form as required by the director. 10 5. The employee attests that written notice has been 11 provided to the employee’s employer per section 96A.7. 12 6. The employee provides documentation of a family member’s 13 qualifying exigency or the crime of which the employee or 14 family member was a victim if requested by the employee’s 15 employer. 16 Sec. 11. NEW SECTION . 96A.9 Waiting period for leave 17 benefits. 18 Family leave or medical leave insurance benefits shall be 19 payable to an eligible employee following a waiting period 20 consisting of the first seven calendar days of the employee’s 21 leave. However, no such waiting period applies to a leave for 22 the birth or placement of a child with an eligible employee. 23 Sec. 12. NEW SECTION . 96A.10 Weekly leave benefit amount. 24 1. The basis for the calculation of a leave benefit amount 25 shall be the weekly earnings of an eligible employee on the 26 day the leave is granted. “Weekly earnings” means the gross 27 earnings of an employee to which the employee would have been 28 entitled had the employee worked the employee’s customary hours 29 for the full pay period in which the employee is on family 30 leave or medical leave. Weekly earnings shall be computed as 31 follows, rounded to the nearest dollar, for an employee who is 32 paid on the following basis: 33 a. On a weekly pay period basis, the weekly earnings are the 34 weekly gross earnings. 35 -8- LSB 5693YH (4) 91 je/js 8/ 24

H.F. 2631 b. On a biweekly pay period basis, the weekly earnings are 1 one-half of the biweekly gross earnings. 2 c. On a semimonthly pay period basis, the weekly earnings 3 are the semimonthly gross earnings multiplied by twenty-four 4 and then divided by fifty-two. 5 d. On a monthly pay period basis, the weekly earnings 6 are the monthly gross earnings multiplied by twelve and then 7 divided by fifty-two. 8 e. On a yearly pay period basis, the weekly earnings shall 9 be the yearly earnings divided by fifty-two. 10 f. On a daily or hourly basis, or by the output of an 11 employee, the weekly earnings shall be computed by dividing by 12 thirteen the earnings, including shift differential pay but 13 not including overtime or premium pay, of the employee earned 14 in the last completed period of thirteen consecutive calendar 15 weeks immediately preceding the start day of the leave. If 16 the employee was absent from employment for personal reasons 17 during part of the thirteen calendar weeks preceding the 18 leave, the employee’s weekly earnings shall be the amount the 19 employee would have earned had the employee worked when work 20 was available to other employees of the employer in a similar 21 occupation. A week that does not fairly reflect the employee’s 22 customary earnings shall be replaced by the closest previous 23 week with earnings that fairly represent the employee’s 24 customary earnings. 25 2. If on the date that an employee’s leave begins the 26 employee’s hourly earnings cannot be ascertained, the earnings 27 for the purpose of calculating the benefit amount shall be the 28 usual earnings for similar services where such services are 29 rendered by paid employees. 30 3. If an employee earns either no wages, or less than the 31 usual weekly earnings of a regular full-time adult laborer 32 in the line of work in which the employee is working in that 33 locality, the weekly earnings shall be one-fiftieth of the 34 total earnings that the employee has earned from all employment 35 -9- LSB 5693YH (4) 91 je/js 9/ 24

H.F. 2631 during the twelve consecutive calendar months immediately 1 preceding the date that the employee’s leave begins. 2 4. The weekly leave benefit amount payable to an employee 3 for any one week shall be eighty percent of the employee’s 4 spendable weekly earnings, but shall not exceed an amount equal 5 to two hundred percent of the statewide average weekly wage 6 as calculated by the department pursuant to section 96.1A and 7 in effect on the date that the employee’s leave commences. 8 However, the weekly leave benefit amount shall be a minimum 9 equal to the lesser of the weekly leave benefit amount of a 10 person whose gross weekly earnings are thirty-five percent of 11 the statewide average weekly wage, or to the spendable weekly 12 earnings of the employee. 13 Sec. 13. NEW SECTION . 96A.11 Payment of benefits to an 14 eligible employee. 15 1. The department shall send the first benefit payment to 16 an employee within ten calendar days after the first properly 17 completed weekly claim from the employee is received by 18 the department. Subsequent payments shall be sent at least 19 biweekly to an eligible employee if a properly completed weekly 20 claim from the employee is received by the department. 21 2. If an employer contests an employee’s initial claim 22 for family leave or medical leave benefits, the employer must 23 notify the employee and the department in the manner prescribed 24 by the director within ten calendar days of the employer’s 25 receipt of notice from the department of the employee’s filing 26 of a claim for benefits pursuant to section 96A.21, subsection 27 3. Failure to timely contest an initial application shall 28 constitute a waiver of objection to the family leave or medical 29 leave claim. 30 3. If the department or the employee’s employer contests 31 an employee’s eligibility for benefits after the employee 32 begins receiving benefits, the employee shall continue to 33 be paid benefits conditionally for any weeks for which the 34 employee files a claim for benefits. The employee’s right to 35 -10- LSB 5693YH (4) 91 je/js 10/ 24

H.F. 2631 retain such benefit payments shall be conditioned upon the 1 department’s finding that the employee is eligible for such 2 benefit payments. 3 a. At an employee’s request, the department shall hold 4 conditional benefit payments until the department resolves the 5 employee’s eligibility status. 6 b. Payment shall be issued promptly for any withheld benefit 7 payments if the department determines that an employee is 8 eligible for benefits. 9 c. If the department determines that an employee is 10 ineligible for the conditionally paid benefits, the employee 11 shall repay the overpayment per rules adopted by the director. 12 Sec. 14. NEW SECTION . 96A.12 Funding the family leave and 13 medical leave insurance program. 14 1. Beginning on January 1, 2030, and ending December 15 31, 2031, the department shall assess for each employee 16 in employment with a covered employer a premium rate of 17 four-tenths of one percent of the employee’s wages based on the 18 amount of the wages, subject to subsection 6. 19 a. The premium rate for family leave benefits shall be equal 20 to one-third of the total premium rate. 21 b. The premium rate for medical leave benefits shall be 22 equal to two-thirds of the total premium rate. 23 2. For calendar year 2032 and subsequent calendar years the 24 director shall determine the percentage of paid claims related 25 to family leave benefits and the percentage of paid claims 26 related to medical leave benefits and adjust the premium rates 27 set in subsection 1 by the proportional share of claims paid 28 for both types of leave. 29 3. For family leave premiums a covered employer may deduct 30 up to forty-five percent of the full amount of the required 31 premiums from the wages of each employee. The remaining 32 fifty-five percent of the required premiums shall be paid by 33 the covered employer. 34 4. For medical leave premiums a covered employer may deduct 35 -11- LSB 5693YH (4) 91 je/js 11/ 24

H.F. 2631 up to forty-five percent of the full amount of the required 1 premiums from the wages of each employee. The remaining 2 fifty-five percent of the required premiums shall be paid by 3 the covered employer. 4 5. A covered employer may elect to pay all or any portion of 5 its employees’ share of the premiums for family leave benefits 6 or medical leave benefits or both. 7 6. The director shall annually set a maximum limit on the 8 amount of an employee’s wages that are subject to a premium 9 assessment under this section that is equal to the contribution 10 and benefit base for the calendar year as determined by the 11 United States social security administration for purposes of 12 26 U.S.C. §3121(a). 13 7. For calendar year 2032 and subsequent calendar years, 14 the total premium rate shall be based on the family leave and 15 medical leave insurance account balance ratio as of September 16 30 of the previous year. The director shall calculate the 17 account balance ratio by dividing the balance of the family 18 leave and medical leave insurance account by the total wages 19 paid by covered employers. The division shall be carried 20 to the fourth decimal place with the remaining fraction 21 disregarded unless it amounts to five hundred thousandths or 22 more in which case the fourth decimal place shall be rounded 23 to the next higher digit. If the family leave and medical 24 leave insurance account balance ratio is any of the following 25 percentages, the premium shall be the following percentage of 26 an employee’s wages subject to a premium assessment: 27 a. If the ratio is zero to nine hundredths of one percent, 28 the premium shall be six-tenths of one percent. 29 b. If the ratio is one-tenth of one percent to nineteen 30 hundredths of one percent, the premium shall be five-tenths of 31 one percent. 32 c. If the ratio is two-tenths of one percent to twenty-nine 33 hundredths of one percent, the premium shall be four-tenths of 34 one percent. 35 -12- LSB 5693YH (4) 91 je/js 12/ 24

H.F. 2631 d. If the ratio is three-tenths of one percent to 1 thirty-nine hundredths of one percent, the premium shall be 2 three-tenths of one percent. 3 e. If the ratio is four-tenths of one percent to forty-nine 4 hundredths of one percent, the premium shall be two-tenths of 5 one percent. 6 f. If the ratio is five-tenths of one percent or greater, 7 the premium shall be one-tenth of one percent. 8 8. Beginning January 1, 2032, if the account balance ratio 9 calculated in subsection 7 is below five hundredths of one 10 percent, the director shall assess a solvency surcharge at 11 the lowest rate necessary to provide revenue to pay for the 12 administrative and benefit costs of family leave and medical 13 leave insurance for the calendar year. The solvency surcharge 14 shall be at least one-tenth of one percent and no more than 15 six-tenths of one percent and shall be added to the total 16 premium rate assessed to each employee of a covered employer 17 for family leave and medical leave benefits. 18 9. A covered employer shall collect all required premiums 19 and surcharges from the employer’s employees through payroll 20 deductions and shall remit the amount collected and the amount 21 to be paid by the employer to the department as required by 22 rules adopted by the director. 23 10. On September 30 of each year the department shall 24 average the number of employees reported by an employer over 25 the last four completed calendar quarters to determine the 26 number of employees employed by the employer for the purpose 27 of determining if an employer shall be considered a covered 28 employer for the next calendar year. 29 Sec. 15. NEW SECTION . 96A.13 Conditional waiver of premium 30 for out-of-state employee. 31 1. An employer may file an application with the department 32 for a conditional waiver of the payment of family leave and 33 medical leave premiums assessed under section 96A.12 for an 34 employee who meets all of the following requirements: 35 -13- LSB 5693YH (4) 91 je/js 13/ 24

H.F. 2631 a. The employee is physically based outside of the state. 1 b. The employee physically works in the state on a limited 2 or temporary work schedule. 3 c. The employee is not expected to physically work in the 4 state for one thousand two hundred fifty hours or more during 5 any consecutive twelve-month period. 6 2. The department shall approve an application that is 7 signed by both the employee and the employee’s employer 8 attesting to compliance with the requirements of subsection 1. 9 3. If the employee physically works in the state for one 10 thousand two hundred fifty hours or more in any consecutive 11 twelve-month period, the conditional waiver shall expire and 12 the employer and employee shall be responsible for all premiums 13 pursuant to section 96A.12 for the consecutive twelve-month 14 period in which the employee worked one thousand two hundred 15 fifty hours or more. Upon submission of the premiums by the 16 employer to the department, the employee shall be credited for 17 the hours worked during that consecutive twelve-month period 18 and shall be eligible for benefits under this chapter. 19 Sec. 16. NEW SECTION . 96A.14 Self-employed persons elective 20 participation in the family leave and medical leave insurance 21 program. 22 1. A self-employed person electing to participate in the 23 family leave and medical leave insurance program shall be 24 considered either an employer or employee under this chapter 25 as the context dictates. 26 2. For benefits payable beginning January 1, 2032, a 27 self-employed person may elect to participate in the family 28 leave and medical leave insurance program under this chapter 29 if the self-employed person meets all of the following 30 requirements: 31 a. The initial participation period for the self-employed 32 person must be a minimum of three years. 33 b. Any subsequent participation period by the self-employed 34 person must be for a minimum of one year. 35 -14- LSB 5693YH (4) 91 je/js 14/ 24

H.F. 2631 c. The self-employed person must participate in both family 1 leave and medical leave. 2 d. One hundred percent of all premiums assessed by 3 the department under section 96A.12 shall be paid by the 4 self-employed person. 5 3. A self-employed person shall file a written notice of 6 election of elective coverage with the department in the manner 7 required by the director. 8 4. A self-employed person shall be eligible for 9 family leave and medical leave benefits after working one 10 thousand two hundred fifty hours in the state during the 11 twelve-consecutive-month period immediately following the date 12 of the written notice the self-employed person filed pursuant 13 to subsection 3. 14 5. A self-employed person who has elected coverage may 15 withdraw from coverage within thirty calendar days after the 16 end of each participation period pursuant to subsection 2, 17 paragraph “a” or “b” , by filing a written notice of withdrawal 18 as required pursuant to the rules adopted by the director. The 19 withdrawal shall take effect no sooner than thirty calendar 20 days after the self-employed person files the notice of 21 withdrawal. 22 6. If a self-employed person fails to submit the required 23 premium payments, the department may cancel the person’s 24 elective coverage. The cancellation shall be effective no 25 sooner than thirty days from the date of a written notice 26 from the department to the self-employed person advising the 27 self-employed person of the impending cancellation of the 28 self-employed person’s elective coverage. The department shall 29 collect all due and unpaid premiums from the self-employed 30 person for the remainder of the applicable participation period 31 pursuant to subsection 2, paragraph “a” or “b” . 32 Sec. 17. NEW SECTION . 96A.15 Employment protection. 33 1. An eligible employee who takes family leave or medical 34 leave under this chapter is entitled to either of the following 35 -15- LSB 5693YH (4) 91 je/js 15/ 24

H.F. 2631 on the employee’s return from leave: 1 a. To be restored to the same position held by the employee 2 when the employee’s leave commenced. 3 b. To be restored to an equivalent position with equivalent 4 employment benefits, pay, and other terms and conditions of 5 employment. 6 2. As a condition of restoration under subsection 1 for an 7 employee who has taken medical leave, the employer may apply 8 a uniform policy to the employee that requires an employee to 9 provide certification from the employee’s health care provider 10 that the employee is able to resume work. 11 3. Taking leave under this chapter shall not result in the 12 loss of any employment benefits accrued by an employee prior to 13 the date on which the employee’s leave commenced. 14 4. This section shall not be construed to entitle a restored 15 employee to any of the following: 16 a. The accrual of any seniority or employment benefits 17 during any period of leave. 18 b. Any right, benefit, or position of employment other than 19 any right, benefit, or position of employment to which the 20 employee would have been entitled had the employee not taken 21 leave. 22 5. This section shall not be construed to prohibit an 23 employer from requiring an employee on leave to report 24 periodically to the employer on the status and intention of the 25 employee to return to work. 26 6. An employer may deny restoration under this section to 27 a salaried employee who is among the ten percent highest-paid 28 employees employed by the employer within seventy-five miles 29 of the facility at which the employee is employed if all of the 30 following apply: 31 a. Denial of restoration is necessary to prevent substantial 32 and grievous economic injury to the operations of the employer. 33 b. The employer notifies the employee of the intent of the 34 employer to deny restoration on such basis at the time the 35 -16- LSB 5693YH (4) 91 je/js 16/ 24

H.F. 2631 employer determines such basis exists. 1 c. The employee is on leave and elects not to return 2 to employment after receiving the employer’s notice of the 3 employer’s intent not to restore the employee. 4 7. This section shall not be construed as providing an 5 employee greater restoration rights than those required under 6 the federal Family and Medical Leave Act of 1993, as amended. 7 Sec. 18. NEW SECTION . 96A.16 Maintenance of existing health 8 benefits. 9 If required by the federal Family and Medical Leave 10 Act of 1993, as amended, an employer shall maintain any 11 existing health benefits of an employee for the duration of 12 an employee’s leave under this chapter. If the employer and 13 the employee normally share the cost of such existing health 14 benefits, the employee shall remain responsible for the 15 employee’s share of the cost of such. 16 Sec. 19. NEW SECTION . 96A.17 Employer submission of reports 17 and maintenance of records. 18 1. Pursuant to rules adopted by the director, an employer 19 shall submit reports and furnish information related to 20 the family leave and medical leave insurance program to the 21 director. 22 2. An employer shall maintain at the employer’s primary 23 place of business a record of employment for each employee from 24 which any information needed by the department for purposes of 25 this chapter may be obtained. Such record shall be maintained 26 for ten years from the date on which an eligible employee 27 applies for family leave or medical leave under this chapter. 28 The record shall be open for inspection by the director at all 29 times. All personnel records and employee medical records 30 shall be maintained by the employer in compliance with all 31 applicable federal and state laws. 32 Sec. 20. NEW SECTION . 96A.18 Coordination of family leave 33 and medical leave with other laws and with employer policies. 34 1. Family leave or medical leave taken by an employee under 35 -17- LSB 5693YH (4) 91 je/js 17/ 24

H.F. 2631 this chapter shall be in addition to any leave available to 1 an employee as required by applicable state or federal law 2 for sickness or temporary disability because of pregnancy or 3 childbirth. 4 2. Family leave or medical leave taken by an employee under 5 this chapter shall be taken concurrently with any leave taken 6 under the federal Family and Medical Leave Act of 1993, as 7 amended. 8 3. An employer may allow an employee who has accrued 9 vacation, sick, or other paid time off to choose to use either 10 such accrued time or to receive paid family leave or medical 11 leave insurance benefits under this chapter. 12 Sec. 21. NEW SECTION . 96A.19 Relationship to other state 13 and federal benefits. 14 In any week an employee is eligible to receive benefits under 15 chapter 85, 85A, 85B, or 96, or any other applicable state or 16 federal unemployment compensation, workers’ compensation, or 17 disability insurance laws, the employee is disqualified from 18 receiving family leave or medical leave insurance benefits 19 under this chapter. 20 Sec. 22. NEW SECTION . 96A.20 Discrimination prohibited. 21 This chapter shall not be construed to modify or affect any 22 federal, state, or local law prohibiting discrimination on the 23 basis of age, race, creed, color, sex, sexual orientation, 24 gender identity, national origin, religion, disability, or 25 other protected category. 26 Sec. 23. NEW SECTION . 96A.21 Department to administer 27 family leave and medical leave insurance program and conduct 28 outreach. 29 1. The director shall establish and administer the family 30 leave and medical leave insurance program and disburse family 31 leave and medical leave benefits to an eligible employee as 32 specified in this chapter. 33 2. The director shall establish procedures and forms for 34 an employee to file an application for benefits under this 35 -18- LSB 5693YH (4) 91 je/js 18/ 24

H.F. 2631 chapter. 1 3. The department shall notify an employer within five 2 business days of an employee filing a claim for family leave or 3 medical leave insurance benefits. 4 4. Information and records pertaining to an employee under 5 this chapter that are maintained by the department shall 6 be confidential and shall only be available to department 7 personnel in the performance of official duties. 8 5. The director shall develop and implement an outreach 9 program to ensure that employers and employees are aware of 10 the family leave and medical leave insurance program and are 11 aware of the leave benefits available to eligible employees. 12 Outreach information shall explain in an easy-to-understand 13 format all of the following: 14 a. Eligibility requirements. 15 b. The application process. 16 c. How weekly benefits are calculated and the minimum and 17 maximum weekly benefit amount. 18 d. Restoration rights. 19 e. Nondiscrimination rights. 20 f. Confidentiality. 21 g. The relationship between employment protection, leave 22 from employment, wage replacement benefits under this chapter 23 and other laws, and employer policies. 24 6. The department shall be authorized to inspect and audit 25 an employer’s files and records relating to the family leave 26 and medical leave insurance program under this chapter. 27 Sec. 24. NEW SECTION . 96A.22 Family leave and medical leave 28 insurance account —— report. 29 1. The family leave and medical leave insurance account 30 is created as a separate account in the state treasury in the 31 custody of the treasurer of state. 32 2. The director shall deposit all receipts from premiums 33 imposed pursuant to sections 96A.12, 96A.13, and 96A.14 into 34 the account. Expenditures from the account shall be used 35 -19- LSB 5693YH (4) 91 je/js 19/ 24