HF 2631 (LSB 5693YH (4) 91)

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 program that provides for paid, job-protected leave for certain family leave and medical leave reasons for eligible employees of specified employers.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  Section 7E.5, subsection 1, paragraph h, Code 2026, is amended to read as follows:
   h.  The department of workforce development, created in section 84A.1, which has primary responsibility for administering the laws relating to unemployment compensation insurance, job placement and training, the family leave and medical insurance program, and related matters.
    Sec. 2.  Section 84A.1, subsection 1, Code 2026, is amended to read as follows:
   1.  The department of workforce development is created to administer the laws of this state relating to unemployment compensation insurance, and job placement and training, and the family leave and medical leave insurance program.
    Sec. 3.  NEW SECTION.  96A.1  Short title.
   This chapter may be cited as the “Iowa Family and Medical Leave Act”.
    Sec. 4.  NEW SECTION.  96A.2  Definitions.
   As used in this chapter, unless the context otherwise requires:
   1.  “Child” means a biological, adopted, or foster child, a stepchild, a legal ward, or a child of a person standing in loco parentis, regardless of the child’s age or dependency status.
   2.  “Covered employer” means a private sector employer who has ten or more employees for each working day during each of twenty or more calendar workweeks in the current or previous calendar year, and a public employer without regard to the number of employees employed.
   3.  “Department” means the department of workforce development.
   4.  “Director” means the director of the department of workforce development.
   5.  “Domestic abuse” includes domestic abuse as defined in section 236.2 and domestic abuse assault as defined in section 708.2A.
   6.  “Employee” means a natural person who is employed in this state for wages by an employer. “Employee” also includes a commission salesperson who takes orders or performs services on behalf of a principal and who is paid on the basis of commissions but does not include persons who purchase for their own account for resale. “Employee” shall not include an independent contractor, a self-employed person, or a patient or inmate employed by a state or local institution to which the patient or inmate has been sentenced or committed, or any of the following persons engaged in agriculture:
   a.  The spouse of the employer and a relative of either the employer or the employer’s spouse who resides on the premises of the employer.
   b.  A person engaged in agriculture as an owner-operator or tenant-operator, and the spouse or a relative of either an owner-operator or a tenant-operator who resides on the premises while exchanging labor with the owner-operator or the tenant-operator for mutual benefit.
   c.  A neighboring person engaged in agriculture who is exchanging labor or other services.
   7.  “Employer” means the same as defined in 91A.2. “Employer” includes a temporary staffing agency or employment agency.
   8.  “Employment benefits” means all benefits provided or made available to an employee by an employer, including group life insurance, health insurance, disability insurance, sick leave, annual leave, educational benefits, and pensions except benefits that are provided by a practice or written policy of an employer or through an employee benefit plan as defined in 29 U.S.C. §1002(3).
   9.  “Family leave” means a leave taken from work by an employee for any of the following reasons:
   a.  To participate in providing care, including physical or psychological care, for a family member of the employee made necessary by a serious health condition of the family member.
   b.  To bond with the employee’s child after the child’s birth, or with a child under the age of eighteen placed with the employee for adoption or foster care. 
   c.  Because of a qualifying exigency for a family member as permitted under the federal Family and Medical Leave Act of 1993, as amended, and federal regulations as provided in 29 C.F.R. §825.126. 
   d.  Because the employee or a family member has been a victim of crime, provided the leave is to do one or more of the following:
   (1)  Seek medical attention for the employee or family member to recover from physical or psychological injury or disability caused by having been a victim of crime.
   (2)  Obtain services or counseling from a victim services organization, licensed social worker, marital and family therapist, mental health counselor, psychologist, or psychiatrist.
   (3)  Seek relocation or change of residence due to having been a victim of crime.
   (4)  Take legal action, including reporting the crime to law enforcement and preparing for or participating in any civil or criminal legal proceeding related to or resulting from having been a victim of crime.
   (5)  Obtain other services to ensure the safety of the employee or family member or the employee’s home or vehicle.
   10.  “Family member” means a child, parent, or spouse of an employee.
   11.  “Gross earnings” means the same as defined in section 85.61.
   12.  “Health care provider” means a physician or other health care practitioner licensed, accredited, registered, or certified to perform specified health care services consistent with state law.
   13.  “In loco parentis” means an individual who has day-to-day responsibilities to care for or financially support a child.
   14.  “Inpatient care” means an overnight stay in a hospital, hospice, or residential medical care facility, including any period of incapacity, or any subsequent treatment in connection with such inpatient care.
   15.  “Medical leave” means a leave from work taken by an employee made necessary by the employee’s own serious health condition.
   16.  “Other violent crime” means a crime causing, meant to cause, or threatening to cause personal injury to a person.
   17.  “Parent” means a biological, adoptive, step, or foster father or mother, or any other individual who stands in loco parentis to an employee or who stood in loco parentis when the employee was a child. “Parent” does not include a parent-in-law.
   18.  “Period of incapacity” means an inability to work, attend school, or perform other regular daily activities due to a serious health condition, treatment of a serious health condition, or recovery from a serious health condition.
   19.  “Premium” or “premiums” means the payments required by section 96A.12 and paid to the department for deposit in the family and medical leave insurance account pursuant to section 96A.22.
   20.  “Public employer” means the state of Iowa, its boards, commissions, agencies, departments, and its political subdivisions including school districts and other special purpose districts.
   21.  “Serious health condition” means an illness, injury, impairment, physical condition, or mental condition that involves inpatient care in a hospital, hospice, medical care facility, or continued treatment or continuing supervision by a health care provider.
   22.  “Spendable weekly earnings” means the amount remaining after payroll taxes are deducted from an employee’s gross weekly earnings.
   23.  “Spouse” means the person with whom an individual has entered into marriage as defined or recognized under state law for purposes of marriage in the state in which the marriage was entered into or, in the case of a marriage entered into outside of any state, if the marriage is valid in the place where the marriage was entered into and the marriage could have been entered into in at least one state, including a common law marriage.
   24.  “Stalking” means the same as described in section 708.11.
   25.  “Victim of crime” means a victim of domestic abuse, sexual abuse, stalking, other violent crime, or the surviving family member of a murder victim.
   26.  “Wages” means the same as defined in section 91A.2.
    Sec. 5.  NEW SECTION.  96A.3  Benefit eligibility.
   An employee is eligible for family leave and medical leave as provided in this chapter after working for a covered employer for both a minimum of twelve consecutive months immediately preceding the employee’s request for leave and a minimum of one thousand two hundred fifty hours during that twelve-consecutive-month period.
    Sec. 6.  NEW SECTION.  96A.4  Leave entitlement for a defined twelve-month period.
   1.  An employee is entitled to a maximum of twelve weeks of family leave during a defined period of twelve consecutive months.
   2.  An employee is entitled to a maximum of twelve weeks of medical leave during a defined period of twelve consecutive months unless the employee experiences a serious health condition, which is pregnancy-related, that results in a longer period of incapacity in which case any extended medical leave beyond twelve weeks shall conform with section 216.6.
   3.  An employee is entitled to a maximum combined total of paid family leave and medical leave of twelve weeks during a defined period of twelve consecutive months.
   4.  An employee is not entitled to family leave or medical leave of less than eight consecutive hours.
    Sec. 7.  NEW SECTION.  96A.5  Calculating the defined twelve-month period.
   The defined period of twelve consecutive months for calculation of an eligible employee’s family leave or medical leave entitlement begins on any of the following:
   1.  The date of birth of the employee’s child, or the date of placement of a child for adoption or foster care with the employee.
   2.  The first day of family leave that the employee takes for a family member’s serious health condition or a family member’s qualifying exigency or for the employee or family member being a victim of crime.
   3.  The first day of the employee’s medical leave.
    Sec. 8.  NEW SECTION.  96A.6  Disqualification from leave entitlement.
   An eligible employee is disqualified for family leave or medical leave benefits under this chapter for any of the following reasons:
   1.  An absence due to the employee’s willful intention to injure or cause a sickness to the employee or to the employee’s family member.
   2.  An injury or sickness caused by the employee engaging in an illegal act.
   3.  The employee’s absence due to an employer taking any disciplinary action against the employee.
    Sec. 9.  NEW SECTION.  96A.7  Employee notice to employer of intent to take leave. 
   1.  If leave for the birth of a child or placement of a child for adoption or foster care with an employee is foreseeable, the employee shall provide written notice to the employer not less than thirty calendar days before the date the leave is to begin. 
   2.  If the birth of a child or placement of a child for adoption or foster care with an employee requires leave to begin in less than thirty calendar days, the employee shall provide written notice to the employer as far in advance as is practicable.
   3.  If leave for a family member’s serious health condition or an employee’s serious health condition is foreseeable based on planned medical treatment, the employee shall do all of the following:
   a.  Make a reasonable effort to schedule such medical treatment, subject to the recommendation of the employee’s or family member’s health care provider as appropriate, to not unduly disrupt the operations of the employer.
   b.  Provide the employer with not less than thirty calendar days prior written notice of the employee’s intention to take leave for a family member’s serious health condition or the employee’s serious health condition.
   4.  If leave for a family member’s serious health condition or an employee’s serious health condition is not foreseeable, the employee shall provide written notice to the employer as far in advance as is practicable.
    Sec. 10.  NEW SECTION.  96A.8  Weekly claim, certification, and verification.
   Beginning January 1, 2031, family leave or medical leave insurance benefits are payable to an employee during a period in which the employee is unable to perform the employee’s regular or customary work because the employee is on family leave or medical leave if the employee meets all of the following requirements:
   1.  The employee files a weekly claim for benefits with the department as required per rules adopted by the director.
   2.  The employee meets the eligibility requirements pursuant to section 96A.3 or the elective coverage requirements pursuant to section 96A.14.
   3.  The employee consents to the disclosure of information or records that may be deemed private or confidential under state or federal law. Disclosure of such information and records by another state agency or an employer to the department shall be solely for purposes related to the administration of this chapter. Information and records disclosed by an employee under this chapter shall not be public records as defined in section 22.1. 
   4.  The employee authorizes the health care provider of the employee’s family member or of the employee, as applicable, to complete a certification of a serious health condition in a form as required by the director.
   5.  The employee attests that written notice has been provided to the employee’s employer per section 96A.7.
   6.  The employee provides documentation of a family member’s qualifying exigency or the crime of which the employee or family member was a victim if requested by the employee’s employer.
    Sec. 11.  NEW SECTION.  96A.9  Waiting period for leave benefits.
   Family leave or medical leave insurance benefits shall be payable to an eligible employee following a waiting period consisting of the first seven calendar days of the employee’s leave. However, no such waiting period applies to a leave for the birth or placement of a child with an eligible employee. 
    Sec. 12.  NEW SECTION.  96A.10  Weekly leave benefit amount.
   1.  The basis for the calculation of a leave benefit amount shall be the weekly earnings of an eligible employee on the day the leave is granted. “Weekly earnings” means the gross earnings of an employee to which the employee would have been entitled had the employee worked the employee’s customary hours for the full pay period in which the employee is on family leave or medical leave. Weekly earnings shall be computed as follows, rounded to the nearest dollar, for an employee who is paid on the following basis:
   a.  On a weekly pay period basis, the weekly earnings are the weekly gross earnings.
   b.  On a biweekly pay period basis, the weekly earnings are one-half of the biweekly gross earnings.
   c.  On a semimonthly pay period basis, the weekly earnings are the semimonthly gross earnings multiplied by twenty-four and then divided by fifty-two.
   d.  On a monthly pay period basis, the weekly earnings are the monthly gross earnings multiplied by twelve and then divided by fifty-two.
   e.  On a yearly pay period basis, the weekly earnings shall be the yearly earnings divided by fifty-two.
   f.  On a daily or hourly basis, or by the output of an employee, the weekly earnings shall be computed by dividing by thirteen the earnings, including shift differential pay but not including overtime or premium pay, of the employee earned in the last completed period of thirteen consecutive calendar weeks immediately preceding the start day of the leave. If the employee was absent from employment for personal reasons during part of the thirteen calendar weeks preceding the leave, the employee’s weekly earnings shall be the amount the employee would have earned had the employee worked when work was available to other employees of the employer in a similar occupation. A week that does not fairly reflect the employee’s customary earnings shall be replaced by the closest previous week with earnings that fairly represent the employee’s customary earnings.
   2.  If on the date that an employee’s leave begins the employee’s hourly earnings cannot be ascertained, the earnings for the purpose of calculating the benefit amount shall be the usual earnings for similar services where such services are rendered by paid employees.
   3.  If an employee earns either no wages, or less than the usual weekly earnings of a regular full-time adult laborer in the line of work in which the employee is working in that locality, the weekly earnings shall be one-fiftieth of the total earnings that the employee has earned from all employment during the twelve consecutive calendar months immediately preceding the date that the employee’s leave begins.
   4.  The weekly leave benefit amount payable to an employee for any one week shall be eighty percent of the employee’s spendable weekly earnings, but shall not exceed an amount equal to two hundred percent of the statewide average weekly wage as calculated by the department pursuant to section 96.1A and in effect on the date that the employee’s leave commences. However, the weekly leave benefit amount shall be a minimum equal to the lesser of the weekly leave benefit amount of a person whose gross weekly earnings are thirty-five percent of the statewide average weekly wage, or to the spendable weekly earnings of the employee.
    Sec. 13.  NEW SECTION.  96A.11  Payment of benefits to an eligible employee.
   1.  The department shall send the first benefit payment to an employee within ten calendar days after the first properly completed weekly claim from the employee is received by the department. Subsequent payments shall be sent at least biweekly to an eligible employee if a properly completed weekly claim from the employee is received by the department.
   2.  If an employer contests an employee’s initial claim for family leave or medical leave benefits, the employer must notify the employee and the department in the manner prescribed by the director within ten calendar days of the employer’s receipt of notice from the department of the employee’s filing of a claim for benefits pursuant to section 96A.21, subsection 3. Failure to timely contest an initial application shall constitute a waiver of objection to the family leave or medical leave claim.
   3.  If the department or the employee’s employer contests an employee’s eligibility for benefits after the employee begins receiving benefits, the employee shall continue to be paid benefits conditionally for any weeks for which the employee files a claim for benefits. The employee’s right to retain such benefit payments shall be conditioned upon the department’s finding that the employee is eligible for such benefit payments.
   a.  At an employee’s request, the department shall hold conditional benefit payments until the department resolves the employee’s eligibility status.
   b.  Payment shall be issued promptly for any withheld benefit payments if the department determines that an employee is eligible for benefits.
   c.  If the department determines that an employee is ineligible for the conditionally paid benefits, the employee shall repay the overpayment per rules adopted by the director.
    Sec. 14.  NEW SECTION.  96A.12  Funding the family leave and medical leave insurance program.
   1.  Beginning on January 1, 2030, and ending December 31, 2031, the department shall assess for each employee in employment with a covered employer a premium rate of four-tenths of one percent of the employee’s wages based on the amount of the wages, subject to subsection 6.
   a.  The premium rate for family leave benefits shall be equal to one-third of the total premium rate.
   b.  The premium rate for medical leave benefits shall be equal to two-thirds of the total premium rate.
   2.  For calendar year 2032 and subsequent calendar years the director shall determine the percentage of paid claims related to family leave benefits and the percentage of paid claims related to medical leave benefits and adjust the premium rates set in subsection 1 by the proportional share of claims paid for both types of leave.
   3.  For family leave premiums a covered employer may deduct up to forty-five percent of the full amount of the required premiums from the wages of each employee. The remaining fifty-five percent of the required premiums shall be paid by the covered employer.
   4.  For medical leave premiums a covered employer may deduct up to forty-five percent of the full amount of the required premiums from the wages of each employee. The remaining fifty-five percent of the required premiums shall be paid by the covered employer.
   5.  A covered employer may elect to pay all or any portion of its employees’ share of the premiums for family leave benefits or medical leave benefits or both.
   6.  The director shall annually set a maximum limit on the amount of an employee’s wages that are subject to a premium assessment under this section that is equal to the contribution and benefit base for the calendar year as determined by the United States social security administration for purposes of 26 U.S.C. §3121(a).
   7.  For calendar year 2032 and subsequent calendar years, the total premium rate shall be based on the family leave and medical leave insurance account balance ratio as of September 30 of the previous year. The director shall calculate the account balance ratio by dividing the balance of the family leave and medical leave insurance account by the total wages paid by covered employers. The division shall be carried to the fourth decimal place with the remaining fraction disregarded unless it amounts to five hundred thousandths or more in which case the fourth decimal place shall be rounded to the next higher digit. If the family leave and medical leave insurance account balance ratio is any of the following percentages, the premium shall be the following percentage of an employee’s wages subject to a premium assessment:
   a.  If the ratio is zero to nine hundredths of one percent, the premium shall be six-tenths of one percent.
   b.  If the ratio is one-tenth of one percent to nineteen hundredths of one percent, the premium shall be five-tenths of one percent.
   c.  If the ratio is two-tenths of one percent to twenty-nine hundredths of one percent, the premium shall be four-tenths of one percent.
   d.  If the ratio is three-tenths of one percent to thirty-nine hundredths of one percent, the premium shall be three-tenths of one percent.
   e.  If the ratio is four-tenths of one percent to forty-nine hundredths of one percent, the premium shall be two-tenths of one percent.
   f.  If the ratio is five-tenths of one percent or greater, the premium shall be one-tenth of one percent.
   8.  Beginning January 1, 2032, if the account balance ratio calculated in subsection 7 is below five hundredths of one percent, the director shall assess a solvency surcharge at the lowest rate necessary to provide revenue to pay for the administrative and benefit costs of family leave and medical leave insurance for the calendar year. The solvency surcharge shall be at least one-tenth of one percent and no more than six-tenths of one percent and shall be added to the total premium rate assessed to each employee of a covered employer for family leave and medical leave benefits.
   9.  A covered employer shall collect all required premiums and surcharges from the employer’s employees through payroll deductions and shall remit the amount collected and the amount to be paid by the employer to the department as required by rules adopted by the director.
   10.  On September 30 of each year the department shall average the number of employees reported by an employer over the last four completed calendar quarters to determine the number of employees employed by the employer for the purpose of determining if an employer shall be considered a covered employer for the next calendar year.
    Sec. 15.  NEW SECTION.  96A.13  Conditional waiver of premium for out-of-state employee.
   1.  An employer may file an application with the department for a conditional waiver of the payment of family leave and medical leave premiums assessed under section 96A.12 for an employee who meets all of the following requirements: 
   a.  The employee is physically based outside of the state.
   b.  The employee physically works in the state on a limited or temporary work schedule. 
   c.  The employee is not expected to physically work in the state for one thousand two hundred fifty hours or more during any consecutive twelve-month period. 
   2.  The department shall approve an application that is signed by both the employee and the employee’s employer attesting to compliance with the requirements of subsection 1. 
   3.  If the employee physically works in the state for one thousand two hundred fifty hours or more in any consecutive twelve-month period, the conditional waiver shall expire and the employer and employee shall be responsible for all premiums pursuant to section 96A.12 for the consecutive twelve-month period in which the employee worked one thousand two hundred fifty hours or more. Upon submission of the premiums by the employer to the department, the employee shall be credited for the hours worked during that consecutive twelve-month period and shall be eligible for benefits under this chapter.
    Sec. 16.  NEW SECTION.  96A.14  Self-employed persons elective participation in the family leave and medical leave insurance program.
   1.  A self-employed person electing to participate in the family leave and medical leave insurance program shall be considered either an employer or employee under this chapter as the context dictates.
   2.  For benefits payable beginning January 1, 2032, a self-employed person may elect to participate in the family leave and medical leave insurance program under this chapter if the self-employed person meets all of the following requirements:
   a.  The initial participation period for the self-employed person must be a minimum of three years.
   b.  Any subsequent participation period by the self-employed person must be for a minimum of one year.
   c.  The self-employed person must participate in both family leave and medical leave. 
   d.  One hundred percent of all premiums assessed by the department under section 96A.12 shall be paid by the self-employed person.
   3.  A self-employed person shall file a written notice of election of elective coverage with the department in the manner required by the director.
   4.  A self-employed person shall be eligible for family leave and medical leave benefits after working one thousand two hundred fifty hours in the state during the twelve-consecutive-month period immediately following the date of the written notice the self-employed person filed pursuant to subsection 3.
   5.  A self-employed person who has elected coverage may withdraw from coverage within thirty calendar days after the end of each participation period pursuant to subsection 2, paragraph “a” or “b”, by filing a written notice of withdrawal as required pursuant to the rules adopted by the director. The withdrawal shall take effect no sooner than thirty calendar days after the self-employed person files the notice of withdrawal.
   6.  If a self-employed person fails to submit the required premium payments, the department may cancel the person’s elective coverage. The cancellation shall be effective no sooner than thirty days from the date of a written notice from the department to the self-employed person advising the self-employed person of the impending cancellation of the self-employed person’s elective coverage. The department shall collect all due and unpaid premiums from the self-employed person for the remainder of the applicable participation period pursuant to subsection 2, paragraph “a” or “b”.
    Sec. 17.  NEW SECTION.  96A.15  Employment protection.
   1.  An eligible employee who takes family leave or medical leave under this chapter is entitled to either of the following on the employee’s return from leave:
   a.  To be restored to the same position held by the employee when the employee’s leave commenced.
   b.  To be restored to an equivalent position with equivalent employment benefits, pay, and other terms and conditions of employment. 
   2.  As a condition of restoration under subsection 1 for an employee who has taken medical leave, the employer may apply a uniform policy to the employee that requires an employee to provide certification from the employee’s health care provider that the employee is able to resume work.
   3.  Taking leave under this chapter shall not result in the loss of any employment benefits accrued by an employee prior to the date on which the employee’s leave commenced. 
   4.  This section shall not be construed to entitle a restored employee to any of the following: 
   a.  The accrual of any seniority or employment benefits during any period of leave.
   b.  Any right, benefit, or position of employment other than any right, benefit, or position of employment to which the employee would have been entitled had the employee not taken leave.
   5.  This section shall not be construed to prohibit an employer from requiring an employee on leave to report periodically to the employer on the status and intention of the employee to return to work.
   6.  An employer may deny restoration under this section to a salaried employee who is among the ten percent highest-paid employees employed by the employer within seventy-five miles of the facility at which the employee is employed if all of the following apply: 
   a.  Denial of restoration is necessary to prevent substantial and grievous economic injury to the operations of the employer.
   b.  The employer notifies the employee of the intent of the employer to deny restoration on such basis at the time the employer determines such basis exists.
   c.  The employee is on leave and elects not to return to employment after receiving the employer’s notice of the employer’s intent not to restore the employee. 
   7.  This section shall not be construed as providing an employee greater restoration rights than those required under the federal Family and Medical Leave Act of 1993, as amended.
    Sec. 18.  NEW SECTION.  96A.16  Maintenance of existing health benefits.
   If required by the federal Family and Medical Leave Act of 1993, as amended, an employer shall maintain any existing health benefits of an employee for the duration of an employee’s leave under this chapter. If the employer and the employee normally share the cost of such existing health benefits, the employee shall remain responsible for the employee’s share of the cost of such. 
    Sec. 19.  NEW SECTION.  96A.17  Employer submission of reports and maintenance of records.
   1.  Pursuant to rules adopted by the director, an employer shall submit reports and furnish information related to the family leave and medical leave insurance program to the director.
   2.  An employer shall maintain at the employer’s primary place of business a record of employment for each employee from which any information needed by the department for purposes of this chapter may be obtained. Such record shall be maintained for ten years from the date on which an eligible employee applies for family leave or medical leave under this chapter. The record shall be open for inspection by the director at all times. All personnel records and employee medical records shall be maintained by the employer in compliance with all applicable federal and state laws.
    Sec. 20.  NEW SECTION.  96A.18  Coordination of family leave and medical leave with other laws and with employer policies.
   1.  Family leave or medical leave taken by an employee under this chapter shall be in addition to any leave available to an employee as required by applicable state or federal law for sickness or temporary disability because of pregnancy or childbirth.
   2.  Family leave or medical leave taken by an employee under this chapter shall be taken concurrently with any leave taken under the federal Family and Medical Leave Act of 1993, as amended.
   3.  An employer may allow an employee who has accrued vacation, sick, or other paid time off to choose to use either such accrued time or to receive paid family leave or medical leave insurance benefits under this chapter.
    Sec. 21.  NEW SECTION.  96A.19  Relationship to other state and federal benefits.
   In any week an employee is eligible to receive benefits under chapter 85, 85A, 85B, or 96, or any other applicable state or federal unemployment compensation, workers’ compensation, or disability insurance laws, the employee is disqualified from receiving family leave or medical leave insurance benefits under this chapter.
    Sec. 22.  NEW SECTION.  96A.20  Discrimination prohibited.
   This chapter shall not be construed to modify or affect any federal, state, or local law prohibiting discrimination on the basis of age, race, creed, color, sex, sexual orientation, gender identity, national origin, religion, disability, or other protected category.
    Sec. 23.  NEW SECTION.  96A.21  Department to administer family leave and medical leave insurance program and conduct outreach.
   1.  The director shall establish and administer the family leave and medical leave insurance program and disburse family leave and medical leave benefits to an eligible employee as specified in this chapter.
   2.  The director shall establish procedures and forms for an employee to file an application for benefits under this chapter.
   3.  The department shall notify an employer within five business days of an employee filing a claim for family leave or medical leave insurance benefits.
   4.  Information and records pertaining to an employee under this chapter that are maintained by the department shall be confidential and shall only be available to department personnel in the performance of official duties. 
   5.  The director shall develop and implement an outreach program to ensure that employers and employees are aware of the family leave and medical leave insurance program and are aware of the leave benefits available to eligible employees. Outreach information shall explain in an easy-to-understand format all of the following:
   a.  Eligibility requirements.
   b.  The application process.
   c.  How weekly benefits are calculated and the minimum and maximum weekly benefit amount.
   d.  Restoration rights. 
   e.  Nondiscrimination rights.
   f.  Confidentiality.
   g.  The relationship between employment protection, leave from employment, wage replacement benefits under this chapter and other laws, and employer policies. 
   6.  The department shall be authorized to inspect and audit an employer’s files and records relating to the family leave and medical leave insurance program under this chapter.
    Sec. 24.  NEW SECTION.  96A.22  Family leave and medical leave insurance account —— report.
   1.  The family leave and medical leave insurance account is created as a separate account in the state treasury in the custody of the treasurer of state.
   2.  The director shall deposit all receipts from premiums imposed pursuant to sections 96A.12, 96A.13, and 96A.14 into the account. Expenditures from the account shall be used only for the purposes of the family leave and medical leave insurance program and only as authorized by the director.
   3.  All premiums deposited in the account shall remain in the account until expended pursuant to the requirements of this chapter.
   4.  The director shall submit an annual report to the general assembly by January 1 on the financial condition of the account and whether the premium rates and benefit levels are appropriate to fully fund and maintain the solvency of the account.
    Sec. 25.  NEW SECTION.  96A.23  Rules.
   The director shall adopt rules pursuant to chapter 17A to implement and administer this chapter.
    Sec. 26.  NEW SECTION.  96A.24  Enforcement.
   The director may take any action under the director’s authority to enforce compliance with this chapter.
EXPLANATION
The inclusion of this explanation does not constitute agreement with
the explanation’s substance by the members of the general assembly.
   This bill relates to a family leave and medical leave insurance program (program), administered by the director of the department of workforce development, that provides for paid, job-protected leave for certain family leave and medical leave reasons for eligible employees of specified employers.
   An employee is eligible for family leave and medical leave after working for a covered employer, as defined in the bill, for a minimum of 12 consecutive months and a minimum of 1,250 hours during the 12 consecutive-month period immediately preceding the employee’s request for leave. “Family leave” and “medical leave” are defined in the bill. Family leave includes leave to care for an immediate family member with a serious health condition, to bond with a newborn child or adopted or foster child, for a qualifying exigency for a family member on active military duty as permitted under the federal Family and Medical Leave Act of 1993, as amended (FMLA), or because the employee or a family member has been a victim of crime, as defined in the bill. Medical leave includes leave due to the employee’s own serious health condition. “Serious health condition” is defined in the bill.
   The bill provides that an eligible employee may not receive more than 12 weeks of family leave, 12 weeks of medical leave, or 12 weeks of combined family and medical leave in a defined consecutive 12-month period. The defined consecutive 12-month period begins on the date of the birth of a child or placement of a child for adoption or foster care with an eligible employee, or on the first date that an eligible employee takes either family leave or medical leave. The minimum duration of leave an eligible employee may take is eight consecutive hours. 
   The bill disqualifies an employee from family leave and medical leave benefits under circumstances detailed in the bill.
   An employee must provide a minimum of 30 days’ notice to an employer of the employee’s intent to take leave. If circumstances require an employee’s leave to begin in less than 30 days, the employee must give as much notice as is practicable. If an eligible employee requests medical leave or family leave, the employee must make a reasonable effort to schedule their own, or their family member’s, medical treatment to not unduly disrupt the employer’s operations. 
   The bill requires an eligible employee to file a claim for benefits as required by the director. The employee must consent to the disclosure of private or confidential information to and from the department, and the employee’s employer, for administration of the leave. The bill specifies that such information is not a public record pursuant to Code section 22.1. The employee must attest that the employee has provided notice of intent to take leave to the employee’s employer. The employee must also authorize the employee’s, or the employee’s family member’s health care provider, to complete a certification of a serious health condition.
   The bill provides for a seven-day waiting period before benefits are payable. There is no waiting period for benefits for leave for the birth of a child or placement of a child for adoption or foster care.
   The basis for the calculation of the amount of a family leave or medical leave benefit is an eligible employee’s weekly earnings as defined in the bill. The weekly leave benefit amount payable to an employee is detailed in the bill.
   The department must send the first benefit payment to an eligible employee within 10 days after a properly completed weekly claim for benefits is received by the department. If the employee continues to submit a properly completed weekly claim, subsequent payments are to be made at least biweekly. If an employer, or the department, contests an employee’s eligibility, benefit payments may be made on a conditional basis. The employee is required to pay the benefits back if the department later rules that the employee is ineligible for the benefits.
   The bill provides that the program shall be funded via employee and employer contributions. Beginning on January 1, 2030, and ending on December 31, 2031, the department must assess a covered employer a premium rate of four-tenths of 1 percent of an employee’s weekly wages, subject to a maximum as determined by the director based on the maximum wages subject to taxation for social security. One-third of the premium is to be used to fund family leave insurance benefits and two-thirds of the premium is to be used to fund medical leave benefits. A covered employer may deduct up to 45 percent of the medical leave premium and 45 percent of the family leave premium from an employee’s wage. The employer must pay the remaining 55 percent of both the medical leave and family leave premiums, and may elect to pay all or any portion of its employees’ share of such premiums. Beginning January 1, 2032, the premium rate shall be calculated by the director based on the family leave and medical leave insurance account balance ratio as of September 30 of the previous calendar year. The premium rate is adjusted based on the balance ratio as detailed in the bill. 
   On September 30 of each year, the bill requires the department to average the number of employees reported by an employer over the last four completed calendar quarters to determine if the employer is a covered employer for the next calendar year.
   The bill requires a covered employer to collect all assessed premiums and surcharges from the employer’s employees through payroll deduction and to remit all premiums to the department as required by the director.
   An employer may apply for, and the director must grant, a waiver of premiums for an employee who is located physically outside of the state and not expected to work in the state for 1,250 or more hours in any consecutive 12-month period. If the employee subsequently works 1,250 or more hours within the state, the employer and employee are responsible for all premiums that should have been collected. 
   Self-employed persons may elect to participate in the program as detailed in the bill.
   An eligible employee who takes family leave or medical leave is entitled to restoration of employment equal to but not greater than that provided by FMLA. The bill provides that if required under FMLA, an employer must maintain any existing health benefits during an employee’s leave. If the employer and employee normally share the cost of such, the employee is responsible for paying the employee’s share of the costs.
   A covered employer must submit reports as required by the director and maintain employment records for each employee from which the director may obtain information related to an employee’s leave. Such records must be maintained for 10 years.
   The bill provides that family leave or medical leave shall be in addition to leave required under state or federal law for sickness or temporary disability due to pregnancy or childbirth. The bill requires family leave or medical leave taken under this program to be taken concurrently with leave taken under FMLA. A covered employer may allow an employee to choose to use either accrued sick or vacation benefits, or family leave and medical leave benefits. An employee cannot receive family or medical leave benefits at the same time the employee is receiving state or federal unemployment, workers’ compensation, or disability benefits. The bill prohibits discrimination on the basis of any state or federally protected category. 
   The bill requires the director to administer the program and to provide outreach to ensure that employers and employees are aware of the program and the benefits available under such.
   The bill provides that a family leave and medical leave insurance account shall be created in the custody of the treasurer of state. The director shall deposit all premiums collected from employers into such account and the account can only be used for the program as authorized by the director. The bill requires the director to submit an annual report to the general assembly on the financial condition of the account and whether the premium rates and benefit levels are appropriate to fully fund and maintain the solvency of the account.
   The bill requires the director to adopt rules to implement and administer the provisions of the bill. The director may take any action under the director’s authority to enforce compliance with the bill.