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House File 90 - IntroducedA Bill ForAn Act 1requiring certain weekly workers’ compensation benefits
2to be calculated by including an employee’s overtime
3and premium pay, and to include an annual cost-of-living
4adjustment.
5BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1 Section 1. Section 85.36, Code 2019, is amended to read as
2follows:
385.36 Basis of computation.
41. The basis of compensation shall be the weekly earnings
5of the injured employee at the time of the injury. Weekly
6earnings means gross salary, wages, or earnings of an employee
7to which such employee would have been entitled had the
8employee worked the customary hours for the full pay period in
9which the employee was injured, as regularly required by the
10employee’s employer for the work or employment for which the
11employee was employed, computed or determined as follows, and
12then rounded to the nearest dollar:
131. a. In the case of an employee who is paid on a weekly
14pay period basis, the weekly gross earnings.
152. b. In the case of an employee who is paid on a biweekly
16pay period basis, one-half of the biweekly gross earnings.
173. c. In the case of an employee who is paid on a
18semimonthly pay period basis, the semimonthly gross earnings
19multiplied by twenty-four and subsequently divided by
20fifty-two.
214. d. In the case of an employee who is paid on a monthly
22pay period basis, the monthly gross earnings multiplied by
23twelve and subsequently divided by fifty-two.
245. e. In the case of an employee who is paid on a yearly
25pay period basis, the weekly earnings shall be the yearly
26earnings divided by fifty-two.
276. f. In the case of an employee who is paid on a daily
28or hourly basis, or by the output of the employee, the
29weekly earnings shall be computed by dividing by thirteen
30the earnings, including but not limited to overtime, shift
31differential pay but not including overtime or, and premium
32pay, of the employee earned in the employ of the employer in
33the last completed period of thirteen consecutive calendar
34weeks immediately preceding the injury. If the employee was
35absent from employment for reasons personal to the employee
-1-1during part of the thirteen calendar weeks preceding the
2injury, the employee’s weekly earnings shall be the amount
3the employee would have earned had the employee worked when
4work was available to other employees of the employer in a
5similar occupation. A week which does not fairly reflect
6the employee’s customary earnings shall be replaced by the
7closest previous week with earnings that fairly represent the
8employee’s customary earnings.
97. g. In the case of an employee who has been in the employ
10of the employer less than thirteen calendar weeks immediately
11preceding the injury, the employee’s weekly earnings shall be
12computed under subsection 6 paragraph “f”, taking the earnings,
13including but not limited to overtime, shift differential
14pay but not including overtime or, and premium pay, for such
15purpose to be the amount the employee would have earned had the
16employee been so employed by the employer the full thirteen
17calendar weeks immediately preceding the injury and had
18worked, when work was available to other employees in a similar
19occupation. If the earnings of other employees cannot be
20determined, the employee’s weekly earnings shall be the average
21computed for the number of weeks the employee has been in the
22employ of the employer.
23h. In the case of an employee injured in the course of
24performing as a professional athlete, the basis of compensation
25for weekly earnings shall be one-fiftieth of total earnings
26which the employee has earned from all employment for the
27previous twelve months prior to the injury.
288. 2. If at the time of the injury the hourly earnings
29have not been fixed or cannot be ascertained, the earnings for
30the purpose of calculating compensation shall be taken to be
31the usual earnings for similar services where such services are
32rendered by paid employees.
339. 3. If an employee earns either no wages or less than the
34usual weekly earnings of the regular full-time adult laborer
35in the line of industry in which the employee is injured in
-2-1that locality, the weekly earnings shall be one-fiftieth of
2the total earnings which the employee has earned from all
3employment during the twelve calendar months immediately
4preceding the injury.
5a. In computing the compensation to be allowed a volunteer
6fire fighter, emergency medical care provider, reserve peace
7officer, or volunteer ambulance driver, the earnings as a
8fire fighter, emergency medical care provider, reserve peace
9officer, or volunteer ambulance driver shall be disregarded and
10the volunteer fire fighter, emergency medical care provider,
11reserve peace officer, or volunteer ambulance driver shall
12be paid an amount equal to the compensation the volunteer
13fire fighter, emergency medical care provider, reserve peace
14officer, or volunteer ambulance driver would be paid if injured
15in the normal course of the volunteer fire fighter’s, emergency
16medical care provider’s, reserve peace officer’s, or volunteer
17ambulance driver’s regular employment or an amount equal to one
18hundred and forty percent of the statewide average weekly wage,
19whichever is greater.
20b. If the employee was an apprentice or trainee when
21injured, and it is established under normal conditions the
22employee’s earnings should be expected to increase during the
23period of disability, that fact may be considered in computing
24the employee’s weekly earnings.
25c. If the employee was an inmate as defined in section
2685.59, the inmate’s actual earnings shall be disregarded, and
27the weekly compensation rate shall be as set forth in section
2885.59.
2910. 4. If a wage, or method of calculating a wage, is
30used for the basis of the payment of a workers’ compensation
31insurance premium for a proprietor, partner, limited liability
32company member, limited liability partner, or officer of a
33corporation, the wage or the method of calculating the wage
34is determinative for purposes of computing the proprietor’s,
35partner’s, limited liability company member’s, limited
-3-1liability partner’s, or officer’s weekly workers’ compensation
2benefit rate.
311. 5. In computing the compensation to be allowed an
4elected or appointed official, the official may choose either
5of the following payment options:
6a. The official shall be paid an amount of compensation
7based on the official’s weekly earnings as an elected or
8appointed official.
9b. The earnings of the official as an elected or appointed
10official shall be disregarded and the official shall be paid
11an amount equal to one hundred forty percent of the statewide
12average weekly wage.
1312. In the case of an employee injured in the course of
14performing as a professional athlete, the basis of compensation
15for weekly earnings shall be one-fiftieth of total earnings
16which the employee has earned from all employment for the
17previous twelve months prior to the injury.
186. The basis of compensation for permanent total disability
19benefits or death benefits shall increase on January 1 of
20each year for compensation which becomes due that year by
21a percentage equal to the cost-of-living adjustment made
22to disability benefits payable by the United States social
23security administration in December of the immediately
24preceding year.
25 Sec. 2. Section 85.61, subsection 3, Code 2019, is amended
26to read as follows:
273. “Gross earnings” means recurring payments by the
28employer to the employee for employment, before any authorized
29or lawfully required deduction or withholding of funds by
30the employer, excluding irregular bonuses, retroactive pay,
31overtime, penalty pay, reimbursement of expenses, expense
32allowances, and the employer’s contribution for welfare
33benefits.
34EXPLANATION
35The inclusion of this explanation does not constitute agreement with
-4-1the explanation’s substance by the members of the general assembly.
2This bill requires certain weekly workers’ compensation
3benefits to be calculated by including an employee’s overtime
4and premium pay, and to include an annual cost-of-living
5adjustment.
6The bill amends Code section 85.36 to require the
7calculation of the amount of weekly workers’ compensation
8benefits to include, not exclude, an employee’s earnings for
9overtime and premium pay. A coordinating amendment is made to
10Code section 85.61.
11The bill also amends Code section 85.36 to require the basis
12of compensation for weekly workers’ compensation benefits
13payable for permanent total disability benefits or death
14benefits to increase on January 1 each year for compensation
15which becomes due that year, by a percentage equal to the
16cost-of-living adjustment made to disability benefits payable
17by the United States social security administration in December
18of the immediately preceding year.
19Technical corrections are also made to Code section 85.36 to
20remove an unnumbered paragraph and for purposes of clarity.
-5-asf/rn
2to be calculated by including an employee’s overtime
3and premium pay, and to include an annual cost-of-living
4adjustment.
5BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1 Section 1. Section 85.36, Code 2019, is amended to read as
2follows:
385.36 Basis of computation.
41. The basis of compensation shall be the weekly earnings
5of the injured employee at the time of the injury. Weekly
6earnings means gross salary, wages, or earnings of an employee
7to which such employee would have been entitled had the
8employee worked the customary hours for the full pay period in
9which the employee was injured, as regularly required by the
10employee’s employer for the work or employment for which the
11employee was employed, computed or determined as follows, and
12then rounded to the nearest dollar:
131. a. In the case of an employee who is paid on a weekly
14pay period basis, the weekly gross earnings.
152. b. In the case of an employee who is paid on a biweekly
16pay period basis, one-half of the biweekly gross earnings.
173. c. In the case of an employee who is paid on a
18semimonthly pay period basis, the semimonthly gross earnings
19multiplied by twenty-four and subsequently divided by
20fifty-two.
214. d. In the case of an employee who is paid on a monthly
22pay period basis, the monthly gross earnings multiplied by
23twelve and subsequently divided by fifty-two.
245. e. In the case of an employee who is paid on a yearly
25pay period basis, the weekly earnings shall be the yearly
26earnings divided by fifty-two.
276. f. In the case of an employee who is paid on a daily
28or hourly basis, or by the output of the employee, the
29weekly earnings shall be computed by dividing by thirteen
30the earnings, including but not limited to overtime, shift
31differential pay but not including overtime or, and premium
32pay, of the employee earned in the employ of the employer in
33the last completed period of thirteen consecutive calendar
34weeks immediately preceding the injury. If the employee was
35absent from employment for reasons personal to the employee
-1-1during part of the thirteen calendar weeks preceding the
2injury, the employee’s weekly earnings shall be the amount
3the employee would have earned had the employee worked when
4work was available to other employees of the employer in a
5similar occupation. A week which does not fairly reflect
6the employee’s customary earnings shall be replaced by the
7closest previous week with earnings that fairly represent the
8employee’s customary earnings.
97. g. In the case of an employee who has been in the employ
10of the employer less than thirteen calendar weeks immediately
11preceding the injury, the employee’s weekly earnings shall be
12computed under subsection 6 paragraph “f”, taking the earnings,
13including but not limited to overtime, shift differential
14pay but not including overtime or, and premium pay, for such
15purpose to be the amount the employee would have earned had the
16employee been so employed by the employer the full thirteen
17calendar weeks immediately preceding the injury and had
18worked, when work was available to other employees in a similar
19occupation. If the earnings of other employees cannot be
20determined, the employee’s weekly earnings shall be the average
21computed for the number of weeks the employee has been in the
22employ of the employer.
23h. In the case of an employee injured in the course of
24performing as a professional athlete, the basis of compensation
25for weekly earnings shall be one-fiftieth of total earnings
26which the employee has earned from all employment for the
27previous twelve months prior to the injury.
288. 2. If at the time of the injury the hourly earnings
29have not been fixed or cannot be ascertained, the earnings for
30the purpose of calculating compensation shall be taken to be
31the usual earnings for similar services where such services are
32rendered by paid employees.
339. 3. If an employee earns either no wages or less than the
34usual weekly earnings of the regular full-time adult laborer
35in the line of industry in which the employee is injured in
-2-1that locality, the weekly earnings shall be one-fiftieth of
2the total earnings which the employee has earned from all
3employment during the twelve calendar months immediately
4preceding the injury.
5a. In computing the compensation to be allowed a volunteer
6fire fighter, emergency medical care provider, reserve peace
7officer, or volunteer ambulance driver, the earnings as a
8fire fighter, emergency medical care provider, reserve peace
9officer, or volunteer ambulance driver shall be disregarded and
10the volunteer fire fighter, emergency medical care provider,
11reserve peace officer, or volunteer ambulance driver shall
12be paid an amount equal to the compensation the volunteer
13fire fighter, emergency medical care provider, reserve peace
14officer, or volunteer ambulance driver would be paid if injured
15in the normal course of the volunteer fire fighter’s, emergency
16medical care provider’s, reserve peace officer’s, or volunteer
17ambulance driver’s regular employment or an amount equal to one
18hundred and forty percent of the statewide average weekly wage,
19whichever is greater.
20b. If the employee was an apprentice or trainee when
21injured, and it is established under normal conditions the
22employee’s earnings should be expected to increase during the
23period of disability, that fact may be considered in computing
24the employee’s weekly earnings.
25c. If the employee was an inmate as defined in section
2685.59, the inmate’s actual earnings shall be disregarded, and
27the weekly compensation rate shall be as set forth in section
2885.59.
2910. 4. If a wage, or method of calculating a wage, is
30used for the basis of the payment of a workers’ compensation
31insurance premium for a proprietor, partner, limited liability
32company member, limited liability partner, or officer of a
33corporation, the wage or the method of calculating the wage
34is determinative for purposes of computing the proprietor’s,
35partner’s, limited liability company member’s, limited
-3-1liability partner’s, or officer’s weekly workers’ compensation
2benefit rate.
311. 5. In computing the compensation to be allowed an
4elected or appointed official, the official may choose either
5of the following payment options:
6a. The official shall be paid an amount of compensation
7based on the official’s weekly earnings as an elected or
8appointed official.
9b. The earnings of the official as an elected or appointed
10official shall be disregarded and the official shall be paid
11an amount equal to one hundred forty percent of the statewide
12average weekly wage.
1312. In the case of an employee injured in the course of
14performing as a professional athlete, the basis of compensation
15for weekly earnings shall be one-fiftieth of total earnings
16which the employee has earned from all employment for the
17previous twelve months prior to the injury.
186. The basis of compensation for permanent total disability
19benefits or death benefits shall increase on January 1 of
20each year for compensation which becomes due that year by
21a percentage equal to the cost-of-living adjustment made
22to disability benefits payable by the United States social
23security administration in December of the immediately
24preceding year.
25 Sec. 2. Section 85.61, subsection 3, Code 2019, is amended
26to read as follows:
273. “Gross earnings” means recurring payments by the
28employer to the employee for employment, before any authorized
29or lawfully required deduction or withholding of funds by
30the employer, excluding irregular bonuses, retroactive pay,
31overtime, penalty pay, reimbursement of expenses, expense
32allowances, and the employer’s contribution for welfare
33benefits.
34EXPLANATION
35The inclusion of this explanation does not constitute agreement with
-4-1the explanation’s substance by the members of the general assembly.
2This bill requires certain weekly workers’ compensation
3benefits to be calculated by including an employee’s overtime
4and premium pay, and to include an annual cost-of-living
5adjustment.
6The bill amends Code section 85.36 to require the
7calculation of the amount of weekly workers’ compensation
8benefits to include, not exclude, an employee’s earnings for
9overtime and premium pay. A coordinating amendment is made to
10Code section 85.61.
11The bill also amends Code section 85.36 to require the basis
12of compensation for weekly workers’ compensation benefits
13payable for permanent total disability benefits or death
14benefits to increase on January 1 each year for compensation
15which becomes due that year, by a percentage equal to the
16cost-of-living adjustment made to disability benefits payable
17by the United States social security administration in December
18of the immediately preceding year.
19Technical corrections are also made to Code section 85.36 to
20remove an unnumbered paragraph and for purposes of clarity.
-5-asf/rn