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.
The bill mandates that employees who work for covered employers for at least twelve consecutive months and 1,250 hours are eligible for up to twelve weeks of family leave and twelve weeks of medical leave within a defined 12-month period. This leave can be taken to care for a family member with a serious health condition, or for the employee's own serious health condition. Notably, family leave or medical leave must be taken concurrently with any leave under the Federal Family and Medical Leave Act (FMLA), ensuring that employees remain protected under both state and federal regulations.
Senate File 95 establishes a family leave and medical leave insurance program for eligible employees of specified employers in Iowa. The bill stipulates that funding for the program will come from both employee and employer contributions, starting with a premium rate of four-tenths of one percent of an employee's weekly wages from January 1, 2027, to December 31, 2028. From this premium, one-third is designated for family leave insurance benefits and two-thirds for medical leave benefits. Employers are required to collect these premiums via payroll deductions and remit them to the state department responsible for administering the program.
Notable points of contention include the parameters for what constitutes a serious health condition, as well as concerns regarding the potential burden on small businesses that may arise from increased payroll deductions. Employers will also need to navigate the administrative responsibilities of submitting reports and maintaining detailed employee records regarding leave time, which some argue could be excessively burdensome. Additionally, the bill includes provisions to ensure the confidentiality of employee information collected during the application process for leave, which may generate discussions on privacy concerns.