Senate File 2239 - Introduced SENATE FILE 2239 BY BLAKE , DONAHUE , DREY , BENNETT , WAHLS , STAED , KNOX , TOWNSEND , DOTZLER , WINCKLER , BISIGNANO , ZIMMER , TRONE GARRIOTT , PETERSEN , HARDMAN , and WEINER 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 6015XS (3) 91 je/js

S.F. 2239 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. “Employee” means a natural person who is employed in 33 this state for wages by an employer. “Employee” also includes 34 a commission salesperson who takes orders or performs services 35 -1- LSB 6015XS (3) 91 je/js 1/ 24

S.F. 2239 on behalf of a principal and who is paid on the basis of 1 commissions but does not include persons who purchase for 2 their own account for resale. “Employee” shall not include an 3 independent contractor, a self-employed person, or a patient or 4 inmate employed by a state or local institution to which the 5 patient or inmate has been sentenced or committed, or any of 6 the following persons engaged in agriculture: 7 a. The spouse of the employer and a relative of either the 8 employer or the employer’s spouse who resides on the premises 9 of the employer. 10 b. A person engaged in agriculture as an owner-operator 11 or tenant-operator, and the spouse or a relative of either 12 an owner-operator or a tenant-operator who resides on the 13 premises while exchanging labor with the owner-operator or the 14 tenant-operator for mutual benefit. 15 c. A neighboring person engaged in agriculture who is 16 exchanging labor or other services. 17 6. “Employer” means the same as defined in 91A.2. 18 “Employer” includes a temporary staffing agency or employment 19 agency. 20 7. “Employment benefits” means all benefits provided or 21 made available to an employee by an employer, including group 22 life insurance, health insurance, disability insurance, sick 23 leave, annual leave, educational benefits, and pensions except 24 benefits that are provided by a practice or written policy of 25 an employer or through an employee benefit plan as defined in 26 29 U.S.C. §1002(3). 27 8. “Family leave” means a leave taken from work by an 28 employee for any of the following reasons: 29 a. To participate in providing care, including physical or 30 psychological care, for a family member of the employee made 31 necessary by a serious health condition of the family member. 32 b. To bond with the employee’s child after the child’s 33 birth, or with a child under the age of eighteen placed with 34 the employee for adoption or foster care. 35 -2- LSB 6015XS (3) 91 je/js 2/ 24

S.F. 2239 c. Because of a qualifying exigency for a family member as 1 permitted under the federal Family and Medical Leave Act of 2 1993, as amended, and federal regulations as provided in 29 3 C.F.R. §825.126. 4 9. “Family member” means a child, parent, or spouse of an 5 employee. 6 10. “Gross earnings” means the same as defined in section 7 85.61. 8 11. “Health care provider” means a physician or other 9 health care practitioner licensed, accredited, registered, or 10 certified to perform specified health care services consistent 11 with state law. 12 12. “In loco parentis” means an individual who has 13 day-to-day responsibilities to care for or financially support 14 a child. 15 13. “Inpatient care” means an overnight stay in a hospital, 16 hospice, or residential medical care facility, including any 17 period of incapacity, or any subsequent treatment in connection 18 with such inpatient care. 19 14. “Medical leave” means a leave from work taken by an 20 employee made necessary by the employee’s own serious health 21 condition. 22 15. “Parent” means a biological, adoptive, step, or foster 23 father or mother, or any other individual who stands in 24 loco parentis to an employee or who stood in loco parentis 25 when the employee was a child. “Parent” does not include a 26 parent-in-law. 27 16. “Period of incapacity” means an inability to work, 28 attend school, or perform other regular daily activities due 29 to a serious health condition, treatment of a serious health 30 condition, or recovery from a serious health condition. 31 17. “Premium” or “premiums” means the payments required by 32 section 96A.12 and paid to the department for deposit in the 33 family and medical leave insurance account pursuant to section 34 96A.22. 35 -3- LSB 6015XS (3) 91 je/js 3/ 24

S.F. 2239 18. “Public employer” means the state of Iowa, its 1 boards, commissions, agencies, departments, and its political 2 subdivisions including school districts and other special 3 purpose districts. 4 19. “Serious health condition” means an illness, injury, 5 impairment, physical condition, or mental condition that 6 involves inpatient care in a hospital, hospice, medical care 7 facility, or continued treatment or continuing supervision by 8 a health care provider. 9 20. “Spendable weekly earnings” means the amount remaining 10 after payroll taxes are deducted from an employee’s gross 11 weekly earnings. 12 21. “Spouse” means the person with whom an individual has 13 entered into marriage as defined or recognized under state law 14 for purposes of marriage in the state in which the marriage 15 was entered into or, in the case of a marriage entered into 16 outside of any state, if the marriage is valid in the place 17 where the marriage was entered into and the marriage could have 18 been entered into in at least one state, including a common law 19 marriage. 20 22. “Wages” means the same as defined in section 91A.2. 21 Sec. 5. NEW SECTION . 96A.3 Benefit eligibility. 22 An employee is eligible for family leave and medical leave 23 as provided in this chapter after working for a covered 24 employer for both a minimum of twelve consecutive months 25 immediately preceding the employee’s request for leave and a 26 minimum of one thousand two hundred fifty hours during that 27 twelve-consecutive-month period. 28 Sec. 6. NEW SECTION . 96A.4 Leave entitlement for a defined 29 twelve-month period. 30 1. An employee is entitled to a maximum of twelve weeks 31 of family leave during a defined period of twelve consecutive 32 months. 33 2. An employee is entitled to a maximum of twelve weeks of 34 medical leave during a defined period of twelve consecutive 35 -4- LSB 6015XS (3) 91 je/js 4/ 24

S.F. 2239 months unless the employee experiences a serious health 1 condition, which is pregnancy-related, that results in a longer 2 period of incapacity in which case any extended medical leave 3 beyond twelve weeks shall conform with section 216.6. 4 3. An employee is entitled to a maximum combined total of 5 paid family leave and medical leave of sixteen weeks during a 6 defined period of twelve consecutive months. 7 4. An employee is not entitled to family leave or medical 8 leave of less than eight consecutive hours. 9 Sec. 7. NEW SECTION . 96A.5 Calculating the defined 10 twelve-month period. 11 The defined period of twelve consecutive months for 12 calculation of an eligible employee’s family leave or medical 13 leave entitlement begins on any of the following: 14 1. The date of birth of the employee’s child, or the date 15 of placement of a child for adoption or foster care with the 16 employee. 17 2. The first day of family leave that the employee takes for 18 a family member’s serious health condition or a family member’s 19 qualifying exigency. 20 3. The first day of the employee’s medical leave. 21 Sec. 8. NEW SECTION . 96A.6 Disqualification from leave 22 entitlement. 23 An eligible employee is disqualified for family leave or 24 medical leave benefits under this chapter for any of the 25 following reasons: 26 1. An absence due to the employee’s willful intention to 27 injure or cause a sickness to the employee or to the employee’s 28 family member. 29 2. An injury or sickness caused by the employee engaging in 30 an illegal act. 31 3. The employee’s absence due to an employer taking any 32 disciplinary action against the employee. 33 Sec. 9. NEW SECTION . 96A.7 Employee notice to employer of 34 intent to take leave. 35 -5- LSB 6015XS (3) 91 je/js 5/ 24

S.F. 2239 1. If leave for the birth of a child or placement of a child 1 for adoption or foster care with an employee is foreseeable, 2 the employee shall provide written notice to the employer not 3 less than thirty calendar days before the date the leave is to 4 begin. 5 2. If the birth of a child or placement of a child for 6 adoption or foster care with an employee requires leave to 7 begin in less than thirty calendar days, the employee shall 8 provide written notice to the employer as far in advance as is 9 practicable. 10 3. If leave for a family member’s serious health condition 11 or an employee’s serious health condition is foreseeable based 12 on planned medical treatment, the employee shall do all of the 13 following: 14 a. Make a reasonable effort to schedule such medical 15 treatment, subject to the recommendation of the employee’s or 16 family member’s health care provider as appropriate, to not 17 unduly disrupt the operations of the employer. 18 b. Provide the employer with not less than thirty calendar 19 days prior written notice of the employee’s intention to take 20 leave for a family member’s serious health condition or the 21 employee’s serious health condition. 22 4. If leave for a family member’s serious health condition 23 or an employee’s serious health condition is not foreseeable, 24 the employee shall provide written notice to the employer as 25 far in advance as is practicable. 26 Sec. 10. NEW SECTION . 96A.8 Weekly claim, certification, 27 and verification. 28 Beginning January 1, 2031, family leave or medical leave 29 insurance benefits are payable to an employee during a period 30 in which the employee is unable to perform the employee’s 31 regular or customary work because the employee is on family 32 leave or medical leave if the employee meets all of the 33 following requirements: 34 1. The employee files a weekly claim for benefits with the 35 -6- LSB 6015XS (3) 91 je/js 6/ 24

S.F. 2239 department as required per rules adopted by the director. 1 2. The employee meets the eligibility requirements pursuant 2 to section 96A.3 or the elective coverage requirements pursuant 3 to section 96A.14. 4 3. The employee consents to the disclosure of information or 5 records that may be deemed private or confidential under state 6 or federal law. Disclosure of such information and records by 7 another state agency or an employer to the department shall 8 be solely for purposes related to the administration of this 9 chapter. Information and records disclosed by an employee 10 under this chapter shall not be public records as defined in 11 section 22.1. 12 4. The employee authorizes the health care provider of the 13 employee’s family member or of the employee, as applicable, to 14 complete a certification of a serious health condition in a 15 form as required by the director. 16 5. The employee attests that written notice has been 17 provided to the employee’s employer per section 96A.7. 18 6. The employee provides documentation of a family member’s 19 qualifying exigency if requested by the employee’s employer. 20 Sec. 11. NEW SECTION . 96A.9 Waiting period for leave 21 benefits. 22 Family leave or medical leave insurance benefits shall be 23 payable to an eligible employee following a waiting period 24 consisting of the first seven calendar days of the employee’s 25 leave. However, no such waiting period applies to a leave for 26 the birth or placement of a child with an eligible employee. 27 Sec. 12. NEW SECTION . 96A.10 Weekly leave benefit amount. 28 1. The basis for the calculation of a leave benefit amount 29 shall be the weekly earnings of an eligible employee on the 30 day the leave is granted. “Weekly earnings” means the gross 31 earnings of an employee to which the employee would have been 32 entitled had the employee worked the employee’s customary hours 33 for the full pay period in which the employee is on family 34 leave or medical leave. Weekly earnings shall be computed as 35 -7- LSB 6015XS (3) 91 je/js 7/ 24

S.F. 2239 follows, rounded to the nearest dollar, for an employee who is 1 paid on the following basis: 2 a. On a weekly pay period basis, the weekly earnings are the 3 weekly gross earnings. 4 b. On a biweekly pay period basis, the weekly earnings are 5 one-half of the biweekly gross earnings. 6 c. On a semimonthly pay period basis, the weekly earnings 7 are the semimonthly gross earnings multiplied by twenty-four 8 and then divided by fifty-two. 9 d. On a monthly pay period basis, the weekly earnings 10 are the monthly gross earnings multiplied by twelve and then 11 divided by fifty-two. 12 e. On a yearly pay period basis, the weekly earnings shall 13 be the yearly earnings divided by fifty-two. 14 f. On a daily or hourly basis, or by the output of an 15 employee, the weekly earnings shall be computed by dividing by 16 thirteen the earnings, including shift differential pay but 17 not including overtime or premium pay, of the employee earned 18 in the last completed period of thirteen consecutive calendar 19 weeks immediately preceding the start day of the leave. If 20 the employee was absent from employment for personal reasons 21 during part of the thirteen calendar weeks preceding the 22 leave, the employee’s weekly earnings shall be the amount the 23 employee would have earned had the employee worked when work 24 was available to other employees of the employer in a similar 25 occupation. A week that does not fairly reflect the employee’s 26 customary earnings shall be replaced by the closest previous 27 week with earnings that fairly represent the employee’s 28 customary earnings. 29 2. If on the date that an employee’s leave begins the 30 employee’s hourly earnings cannot be ascertained, the earnings 31 for the purpose of calculating the benefit amount shall be the 32 usual earnings for similar services where such services are 33 rendered by paid employees. 34 3. If an employee earns either no wages, or less than the 35 -8- LSB 6015XS (3) 91 je/js 8/ 24

S.F. 2239 usual weekly earnings of a regular full-time adult laborer 1 in the line of work in which the employee is working in that 2 locality, the weekly earnings shall be one-fiftieth of the 3 total earnings that the employee has earned from all employment 4 during the twelve consecutive calendar months immediately 5 preceding the date that the employee’s leave begins. 6 4. The weekly leave benefit amount payable to an employee 7 for any one week shall be eighty percent of the employee’s 8 spendable weekly earnings, but shall not exceed an amount equal 9 to two hundred percent of the statewide average weekly wage 10 as calculated by the department pursuant to section 96.1A and 11 in effect on the date that the employee’s leave commences. 12 However, the weekly leave benefit amount shall be a minimum 13 equal to the lesser of the weekly leave benefit amount of a 14 person whose gross weekly earnings are thirty-five percent of 15 the statewide average weekly wage, or to the spendable weekly 16 earnings of the employee. 17 Sec. 13. NEW SECTION . 96A.11 Payment of benefits to an 18 eligible employee. 19 1. The department shall send the first benefit payment to 20 an employee within ten calendar days after the first properly 21 completed weekly claim from the employee is received by 22 the department. Subsequent payments shall be sent at least 23 biweekly to an eligible employee if a properly completed weekly 24 claim from the employee is received by the department. 25 2. If an employer contests an employee’s initial claim 26 for family leave or medical leave benefits, the employer must 27 notify the employee and the department in the manner prescribed 28 by the director within ten calendar days of the employer’s 29 receipt of notice from the department of the employee’s filing 30 of a claim for benefits pursuant to section 96A.21, subsection 31 3. Failure to timely contest an initial application shall 32 constitute a waiver of objection to the family leave or medical 33 leave claim. 34 3. If the department or the employee’s employer contests 35 -9- LSB 6015XS (3) 91 je/js 9/ 24

S.F. 2239 an employee’s eligibility for benefits after the employee 1 begins receiving benefits, the employee shall continue to 2 be paid benefits conditionally for any weeks for which the 3 employee files a claim for benefits. The employee’s right to 4 retain such benefit payments shall be conditioned upon the 5 department’s finding that the employee is eligible for such 6 benefit payments. 7 a. At an employee’s request, the department shall hold 8 conditional benefit payments until the department resolves the 9 employee’s eligibility status. 10 b. Payment shall be issued promptly for any withheld benefit 11 payments if the department determines that an employee is 12 eligible for benefits. 13 c. If the department determines that an employee is 14 ineligible for the conditionally paid benefits, the employee 15 shall repay the overpayment per rules adopted by the director. 16 Sec. 14. NEW SECTION . 96A.12 Funding the family leave and 17 medical leave insurance program. 18 1. Beginning on January 1, 2030, and ending December 19 31, 2031, the department shall assess for each employee 20 in employment with a covered employer a premium rate of 21 four-tenths of one percent of the employee’s wages based on the 22 amount of the wages, subject to subsection 6. 23 a. The premium rate for family leave benefits shall be equal 24 to one-third of the total premium rate. 25 b. The premium rate for medical leave benefits shall be 26 equal to two-thirds of the total premium rate. 27 2. For calendar year 2032 and subsequent calendar years the 28 director shall determine the percentage of paid claims related 29 to family leave benefits and the percentage of paid claims 30 related to medical leave benefits and adjust the premium rates 31 set in subsection 1 by the proportional share of claims paid 32 for both types of leave. 33 3. For family leave premiums a covered employer may deduct 34 up to forty-five percent of the full amount of the required 35 -10- LSB 6015XS (3) 91 je/js 10/ 24

S.F. 2239 premiums from the wages of each employee. The remaining 1 fifty-five percent of the required premiums shall be paid by 2 the covered employer. 3 4. For medical leave premiums a covered employer may deduct 4 up to forty-five percent of the full amount of the required 5 premiums from the wages of each employee. The remaining 6 fifty-five percent of the required premiums shall be paid by 7 the covered employer. 8 5. A covered employer may elect to pay all or any portion of 9 its employees’ share of the premiums for family leave benefits 10 or medical leave benefits or both. 11 6. The director shall annually set a maximum limit on the 12 amount of an employee’s wages that are subject to a premium 13 assessment under this section that is equal to the contribution 14 and benefit base for the calendar year as determined by the 15 United States social security administration for purposes of 16 26 U.S.C. §3121(a). 17 7. For calendar year 2032 and subsequent calendar years, 18 the total premium rate shall be based on the family leave and 19 medical leave insurance account balance ratio as of September 20 30 of the previous year. The director shall calculate the 21 account balance ratio by dividing the balance of the family 22 leave and medical leave insurance account by the total wages 23 paid by covered employers. The division shall be carried 24 to the fourth decimal place with the remaining fraction 25 disregarded unless it amounts to five hundred thousandths or 26 more in which case the fourth decimal place shall be rounded 27 to the next higher digit. If the family leave and medical 28 leave insurance account balance ratio is any of the following 29 percentages, the premium shall be the following percentage of 30 an employee’s wages subject to a premium assessment: 31 a. If the ratio is zero to nine hundredths of one percent, 32 the premium shall be six-tenths of one percent. 33 b. If the ratio is one-tenth of one percent to nineteen 34 hundredths of one percent, the premium shall be five-tenths of 35 -11- LSB 6015XS (3) 91 je/js 11/ 24

S.F. 2239 one percent. 1 c. If the ratio is two-tenths of one percent to twenty-nine 2 hundredths of one percent, the premium shall be four-tenths of 3 one percent. 4 d. If the ratio is three-tenths of one percent to 5 thirty-nine hundredths of one percent, the premium shall be 6 three-tenths of one percent. 7 e. If the ratio is four-tenths of one percent to forty-nine 8 hundredths of one percent, the premium shall be two-tenths of 9 one percent. 10 f. If the ratio is five-tenths of one percent or greater, 11 the premium shall be one-tenth of one percent. 12 8. Beginning January 1, 2032, if the account balance ratio 13 calculated in subsection 7 is below five hundredths of one 14 percent, the director shall assess a solvency surcharge at 15 the lowest rate necessary to provide revenue to pay for the 16 administrative and benefit costs of family leave and medical 17 leave insurance for the calendar year. The solvency surcharge 18 shall be at least one-tenth of one percent and no more than 19 six-tenths of one percent and shall be added to the total 20 premium rate assessed to each employee of a covered employer 21 for family leave and medical leave benefits. 22 9. A covered employer shall collect all required premiums 23 and surcharges from the employer’s employees through payroll 24 deductions and shall remit the amount collected and the amount 25 to be paid by the employer to the department as required by 26 rules adopted by the director. 27 10. On September 30 of each year the department shall 28 average the number of employees reported by an employer over 29 the last four completed calendar quarters to determine the 30 number of employees employed by the employer for the purpose 31 of determining if an employer shall be considered a covered 32 employer for the next calendar year. 33 Sec. 15. NEW SECTION . 96A.13 Conditional waiver of premium 34 for out-of-state employee. 35 -12- LSB 6015XS (3) 91 je/js 12/ 24

S.F. 2239 1. An employer may file an application with the department 1 for a conditional waiver of the payment of family leave and 2 medical leave premiums assessed under section 96A.12 for an 3 employee who meets all of the following requirements: 4 a. The employee is physically based outside of the state. 5 b. The employee physically works in the state on a limited 6 or temporary work schedule. 7 c. The employee is not expected to physically work in the 8 state for one thousand two hundred fifty hours or more during 9 any consecutive twelve-month period. 10 2. The department shall approve an application that is 11 signed by both the employee and the employee’s employer 12 attesting to compliance with the requirements of subsection 1. 13 3. If the employee physically works in the state for one 14 thousand two hundred fifty hours or more in any consecutive 15 twelve-month period, the conditional waiver shall expire and 16 the employer and employee shall be responsible for all premiums 17 pursuant to section 96A.12 for the consecutive twelve-month 18 period in which the employee worked one thousand two hundred 19 fifty hours or more. Upon submission of the premiums by the 20 employer to the department, the employee shall be credited for 21 the hours worked during that consecutive twelve-month period 22 and shall be eligible for benefits under this chapter. 23 Sec. 16. NEW SECTION . 96A.14 Self-employed persons elective 24 participation in the family leave and medical leave insurance 25 program. 26 1. A self-employed person electing to participate in the 27 family leave and medical leave insurance program shall be 28 considered either an employer or employee under this chapter 29 as the context dictates. 30 2. For benefits payable beginning January 1, 2032, a 31 self-employed person may elect to participate in the family 32 leave and medical leave insurance program under this chapter 33 if the self-employed person meets all of the following 34 requirements: 35 -13- LSB 6015XS (3) 91 je/js 13/ 24

S.F. 2239 a. The initial participation period for the self-employed 1 person must be a minimum of three years. 2 b. Any subsequent participation period by the self-employed 3 person must be for a minimum of one year. 4 c. The self-employed person must participate in both family 5 leave and medical leave. 6 d. One hundred percent of all premiums assessed by 7 the department under section 96A.12 shall be paid by the 8 self-employed person. 9 3. A self-employed person shall file a written notice of 10 election of elective coverage with the department in the manner 11 required by the director. 12 4. A self-employed person shall be eligible for 13 family leave and medical leave benefits after working one 14 thousand two hundred fifty hours in the state during the 15 twelve-consecutive-month period immediately following the date 16 of the written notice the self-employed person filed pursuant 17 to subsection 3. 18 5. A self-employed person who has elected coverage may 19 withdraw from coverage within thirty calendar days after the 20 end of each participation period pursuant to subsection 2, 21 paragraph “a” or “b” , by filing a written notice of withdrawal 22 as required pursuant to the rules adopted by the director. The 23 withdrawal shall take effect no sooner than thirty calendar 24 days after the self-employed person files the notice of 25 withdrawal. 26 6. If a self-employed person fails to submit the required 27 premium payments, the department may cancel the person’s 28 elective coverage. The cancellation shall be effective no 29 sooner than thirty days from the date of a written notice 30 from the department to the self-employed person advising the 31 self-employed person of the impending cancellation of the 32 self-employed person’s elective coverage. The department shall 33 collect all due and unpaid premiums from the self-employed 34 person for the remainder of the applicable participation period 35 -14- LSB 6015XS (3) 91 je/js 14/ 24

S.F. 2239 pursuant to subsection 2, paragraph “a” or “b” . 1 Sec. 17. NEW SECTION . 96A.15 Employment protection. 2 1. An eligible employee who takes family leave or medical 3 leave under this chapter is entitled to either of the following 4 on the employee’s return from leave: 5 a. To be restored to the same position held by the employee 6 when the employee’s leave commenced. 7 b. To be restored to an equivalent position with equivalent 8 employment benefits, pay, and other terms and conditions of 9 employment. 10 2. As a condition of restoration under subsection 1 for an 11 employee who has taken medical leave, the employer may apply 12 a uniform policy to the employee that requires an employee to 13 provide certification from the employee’s health care provider 14 that the employee is able to resume work. 15 3. Taking leave under this chapter shall not result in the 16 loss of any employment benefits accrued by an employee prior to 17 the date on which the employee’s leave commenced. 18 4. This section shall not be construed to entitle a restored 19 employee to any of the following: 20 a. The accrual of any seniority or employment benefits 21 during any period of leave. 22 b. Any right, benefit, or position of employment other than 23 any right, benefit, or position of employment to which the 24 employee would have been entitled had the employee not taken 25 leave. 26 5. This section shall not be construed to prohibit an 27 employer from requiring an employee on leave to report 28 periodically to the employer on the status and intention of the 29 employee to return to work. 30 6. An employer may deny restoration under this section to 31 a salaried employee who is among the ten percent highest-paid 32 employees employed by the employer within seventy-five miles 33 of the facility at which the employee is employed if all of the 34 following apply: 35 -15- LSB 6015XS (3) 91 je/js 15/ 24

S.F. 2239 a. Denial of restoration is necessary to prevent substantial 1 and grievous economic injury to the operations of the employer. 2 b. The employer notifies the employee of the intent of the 3 employer to deny restoration on such basis at the time the 4 employer determines such basis exists. 5 c. The employee is on leave and elects not to return 6 to employment after receiving the employer’s notice of the 7 employer’s intent not to restore the employee. 8 7. This section shall not be construed as providing an 9 employee greater restoration rights than those required under 10 the federal Family and Medical Leave Act of 1993, as amended. 11 Sec. 18. NEW SECTION . 96A.16 Maintenance of existing health 12 benefits. 13 If required by the federal Family and Medical Leave 14 Act of 1993, as amended, an employer shall maintain any 15 existing health benefits of an employee for the duration of 16 an employee’s leave under this chapter. If the employer and 17 the employee normally share the cost of such existing health 18 benefits, the employee shall remain responsible for the 19 employee’s share of the cost of such. 20 Sec. 19. NEW SECTION . 96A.17 Employer submission of reports 21 and maintenance of records. 22 1. Pursuant to rules adopted by the director, an employer 23 shall submit reports and furnish information related to 24 the family leave and medical leave insurance program to the 25 director. 26 2. An employer shall maintain at the employer’s primary 27 place of business a record of employment for each employee from 28 which any information needed by the department for purposes of 29 this chapter may be obtained. Such record shall be maintained 30 for ten years from the date on which an eligible employee 31 applies for family leave or medical leave under this chapter. 32 The record shall be open for inspection by the director at all 33 times. All personnel records and employee medical records 34 shall be maintained by the employer in compliance with all 35 -16- LSB 6015XS (3) 91 je/js 16/ 24

S.F. 2239 applicable federal and state laws. 1 Sec. 20. NEW SECTION . 96A.18 Coordination of family leave 2 and medical leave with other laws and with employer policies. 3 1. Family leave or medical leave taken by an employee under 4 this chapter shall be in addition to any leave available to 5 an employee as required by applicable state or federal law 6 for sickness or temporary disability because of pregnancy or 7 childbirth. 8 2. Family leave or medical leave taken by an employee under 9 this chapter shall be taken concurrently with any leave taken 10 under the federal Family and Medical Leave Act of 1993, as 11 amended. 12 3. An employer may allow an employee who has accrued 13 vacation, sick, or other paid time off to choose to use either 14 such accrued time or to receive paid family leave or medical 15 leave insurance benefits under this chapter. 16 Sec. 21. NEW SECTION . 96A.19 Relationship to other state 17 and federal benefits. 18 In any week an employee is eligible to receive benefits under 19 chapter 85, 85A, 85B, or 96, or any other applicable state or 20 federal unemployment compensation, workers’ compensation, or 21 disability insurance laws, the employee is disqualified from 22 receiving family leave or medical leave insurance benefits 23 under this chapter. 24 Sec. 22. NEW SECTION . 96A.20 Discrimination prohibited. 25 This chapter shall not be construed to modify or affect any 26 federal, state, or local law prohibiting discrimination on the 27 basis of age, race, creed, color, sex, sexual orientation, 28 gender identity, national origin, religion, disability, or 29 other protected category. 30 Sec. 23. NEW SECTION . 96A.21 Department to administer 31 family leave and medical leave insurance program and conduct 32 outreach. 33 1. The director shall establish and administer the family 34 leave and medical leave insurance program and disburse family 35 -17- LSB 6015XS (3) 91 je/js 17/ 24

S.F. 2239 leave and medical leave benefits to an eligible employee as 1 specified in this chapter. 2 2. The director shall establish procedures and forms for 3 an employee to file an application for benefits under this 4 chapter. 5 3. The department shall notify an employer within five 6 business days of an employee filing a claim for family leave or 7 medical leave insurance benefits. 8 4. Information and records pertaining to an employee under 9 this chapter that are maintained by the department shall 10 be confidential and shall only be available to department 11 personnel in the performance of official duties. 12 5. The director shall develop and implement an outreach 13 program to ensure that employers and employees are aware of 14 the family leave and medical leave insurance program and are 15 aware of the leave benefits available to eligible employees. 16 Outreach information shall explain in an easy-to-understand 17 format all of the following: 18 a. Eligibility requirements. 19 b. The application process. 20 c. How weekly benefits are calculated and the minimum and 21 maximum weekly benefit amount. 22 d. Restoration rights. 23 e. Nondiscrimination rights. 24 f. Confidentiality. 25 g. The relationship between employment protection, leave 26 from employment, wage replacement benefits under this chapter 27 and other laws, and employer policies. 28 6. The department shall be authorized to inspect and audit 29 an employer’s files and records relating to the family leave 30 and medical leave insurance program under this chapter. 31 Sec. 24. NEW SECTION . 96A.22 Family leave and medical leave 32 insurance account. 33 1. The family leave and medical leave insurance account 34 is created as a separate account in the state treasury in the 35 -18- LSB 6015XS (3) 91 je/js 18/ 24

S.F. 2239 custody of the treasurer of state. 1 2. The director shall deposit all receipts from premiums 2 imposed pursuant to sections 96A.12, 96A.13, and 96A.14 into 3 the account. Expenditures from the account shall be used 4 only for the purposes of the family leave and medical leave 5 insurance program and only as authorized by the director. 6 3. All premiums deposited in the account shall remain in 7 the account until expended pursuant to the requirements of this 8 chapter. 9 Sec. 25. NEW SECTION . 96A.23 Rules. 10 The director shall adopt rules pursuant to chapter 17A to 11 implement and administer this chapter. 12 Sec. 26. NEW SECTION . 96A.24 Enforcement. 13 The director may take any action under the director’s 14 authority to enforce compliance with this chapter. 15 Sec. 27. DIRECTOR ANALYSIS OF FUNDING THE FAMILY LEAVE 16 AND MEDICAL LEAVE INSURANCE PROGRAM AND REPORT TO THE GENERAL 17 ASSEMBLY. 18 1. The director of the department of workforce development 19 shall conduct an analysis of the family leave and medical 20 leave insurance program as funded pursuant to section 96A.12, 21 as enacted in this Act, and of the benefits paid pursuant 22 to section 96A.10, as enacted in this Act. The director 23 shall determine if the premium rates and benefit levels are 24 appropriate to fully fund and maintain the solvency of the 25 family leave and medical leave insurance account. 26 2. The director shall submit the director’s findings to 27 the general assembly pursuant to section 7A.11 no later than 28 January 12, 2027. 29 EXPLANATION 30 The inclusion of this explanation does not constitute agreement with 31 the explanation’s substance by the members of the general assembly. 32 This bill relates to a family leave and medical leave 33 insurance program (program), administered by the director of 34 the department of workforce development, that provides for 35 -19- LSB 6015XS (3) 91 je/js 19/ 24