1 HF 889 – State Employees, Paid Parental Leave (LSB1096HV) Staff Contact: Evan Johnson (515.281.6301) evan.johnson@legis.iowa.gov Fiscal Note Version – New Description House File 889 provides that certain State employees in their first four years of employment who have accumulated 10 days of sick leave, and who do not use sick leave during a full month of employment, may choose to convert that month’s sick leave time for one-half day of additional vacation time. The Bill provides that a State employee parent who gives birth or adopts a child is entitled to four weeks of paid leave. A State employee parent who does not give birth is entitled to one week of paid leave. The Department of Administrative Services (DAS) is required to adopt administrative rules to implement the paid parental leave benefits. Background Under current law, certain State employees who have accumulated 30 days of sick leave, and who do not use sick leave during a full month of employment, may choose to convert that month’s sick leave time for one-half day of additional vacation time. To qualify for the paid parental leave benefits established in the Bill, employees must meet the eligibility requirements established by the federal Family and Medical Leave Act of 1993 (FMLA). These requirements include working for a covered employer for at least 12 months, having at least 1,250 hours of service with the employer during the 12 months before FMLA leave starts, and working at a location where the employer has at least 50 employees within 75 miles. Family and Medical Leave Act leave is job-protected, unpaid leave. Employees may use accrued paid leave while they take FMLA leave. Both the birth of a child and the placement of a child for adoption are covered under FMLA leave. Leave can be taken any time in the 12 months following the birth or adoption of a child. The State of Iowa allows up to 12 weeks of leave (paid or unpaid) for the birth or adoption of a child. According to State of Iowa Central Payroll data, there are 20,507 male and 29,088 female State employees. Based on birth rates from the 2022 Centers for Disease Control and Prevention (CDC) National Vital Statistics Reports, it is estimated that approximately 551 male and 879 female employees may be eligible to take paid parental leave each year. Assumptions • The amount of sick leave converted to vacation leave under the Bill is unknown. • The future use rates of sick leave and vacation leave are unknown. • State agencies’ response to employees taking paid parental leave is unknown. To cover for employees on paid parental leave, agencies may absorb the workload within existing resources, hire temporary employees, or require existing employees to work overtime. Fiscal Note Fiscal Services Division 2 Fiscal Impact House File 889 may have a fiscal impact, but it cannot be determined. The fiscal impact from expanding eligibility to convert sick leave to vacation leave cannot be determined because the amount of sick leave converted and its impact on the future use of leave is unknown. The fiscal impact from the creation of paid parental leave cannot be determined because it is unknown which employees will take leave and how State agencies will respond to those absences. Sources Department of Administrative Services Board of Regents Department of Corrections Department of Transportation Centers for Disease Control and Prevention /s/ Jennifer Acton March 19, 2025 Doc ID 1524346 The fiscal note for this Bill was prepared pursuant to Joint Rule 17 and the Iowa Code. Data used in developing this fiscal note is available from the Fiscal Services Division of the Legislative Services Agency upon request. www.legis.iowa.gov