Senate File 109 - Introduced SENATE FILE 109 BY BLAKE , WINCKLER , STAED , BISIGNANO , KNOX , TOWNSEND , DONAHUE , QUIRMBACH , PETERSEN , DOTZLER , WEINER , WAHLS , TRONE GARRIOTT , CELSI , and BENNETT 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 1696XS (5) 91 je/js
S.F. 109 Section 1. Section 7E.5, subsection 1, paragraph h, Code 1 2025, 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 2025, 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, job placement and training, employment 12 safety, labor standards, and workers compensation the family 13 leave and medical leave insurance program . 14 Sec. 3. NEW SECTION . 96A.1 Short title. 15 This chapter may be cited as the Iowa Family and Medical 16 Leave Act . 17 Sec. 4. NEW SECTION . 96A.2 Definitions. 18 As used in this chapter, unless the context otherwise 19 requires: 20 1. Child means a biological, adopted, or foster child, 21 a stepchild, a legal ward, or a child of a person standing in 22 loco parentis, regardless of the childs age or dependency 23 status. 24 2. Covered employer means a private sector employer who 25 has ten or more employees for each working day during each of 26 twenty or more calendar workweeks in the current or previous 27 calendar year, and a public employer without regard to the 28 number of employees employed. 29 3. Department means the department of workforce 30 development. 31 4. Director means the director of the department of 32 workforce development. 33 5. Employee means a natural person who is employed in 34 this state for wages by an employer. Employee also includes 35 -1- LSB 1696XS (5) 91 je/js 1/ 24
S.F. 109 a commission salesperson who takes orders or performs services 1 on behalf of a principal and who is paid on the basis of 2 commissions but does not include persons who purchase for 3 their own account for resale. Employee shall not include an 4 independent contractor, a self-employed person, or a patient or 5 inmate employed by a state or local institution to which the 6 patient or inmate has been sentenced or committed, or any of 7 the following persons engaged in agriculture: 8 a. The spouse of the employer and a relative of either the 9 employer or the employers spouse who resides on the premises 10 of the employer. 11 b. A person engaged in agriculture as an owner-operator 12 or tenant-operator, and the spouse or a relative of either 13 an owner-operator or a tenant-operator who resides on the 14 premises while exchanging labor with the owner-operator or the 15 tenant-operator for mutual benefit. 16 c. A neighboring person engaged in agriculture who is 17 exchanging labor or other services. 18 6. Employer means the same as defined in 91A.2. 19 Employer includes a temporary staffing agency or employment 20 agency. 21 7. Employment benefits means all benefits provided or 22 made available to an employee by an employer, including group 23 life insurance, health insurance, disability insurance, sick 24 leave, annual leave, educational benefits, and pensions except 25 benefits that are provided by a practice or written policy of 26 an employer or through an employee benefit plan as defined in 27 29 U.S.C. 1002(3). 28 8. Family leave means a leave taken from work by an 29 employee for any of the following reasons: 30 a. To participate in providing care, including physical or 31 psychological care, for a family member of the employee made 32 necessary by a serious health condition of the family member. 33 b. To bond with the employees child after the childs 34 birth, or with a child under the age of eighteen placed with 35 -2- LSB 1696XS (5) 91 je/js 2/ 24
S.F. 109 the employee for adoption or foster care. 1 c. Because of a qualifying exigency for a family member as 2 permitted under the federal Family and Medical Leave Act of 3 1993, as amended, and federal regulations as provided in 29 4 C.F.R. 825.126. 5 9. Family member means a child, parent, or spouse of an 6 employee. 7 10. Gross earnings means the same as defined in section 8 85.61. 9 11. Health care provider means a physician or other 10 health care practitioner licensed, accredited, registered, or 11 certified to perform specified health care services consistent 12 with state law. 13 12. In loco parentis means an individual who has 14 day-to-day responsibilities to care for or financially support 15 a child. 16 13. Inpatient care means an overnight stay in a hospital, 17 hospice, or residential medical care facility, including any 18 period of incapacity, or any subsequent treatment in connection 19 with such inpatient care. 20 14. Medical leave means a leave from work taken by an 21 employee made necessary by the employees own serious health 22 condition. 23 15. Parent means a biological, adoptive, step, or foster 24 father or mother, or any other individual who stands in 25 loco parentis to an employee or who stood in loco parentis 26 when the employee was a child. Parent does not include a 27 parent-in-law. 28 16. Period of incapacity means an inability to work, 29 attend school, or perform other regular daily activities due 30 to a serious health condition, treatment of a serious health 31 condition, or recovery from a serious health condition. 32 17. Premium or premiums means the payments required by 33 section 96A.12 and paid to the department for deposit in the 34 family and medical leave insurance account pursuant to section 35 -3- LSB 1696XS (5) 91 je/js 3/ 24
S.F. 109 96A.22. 1 18. Public employer means the state of Iowa, its 2 boards, commissions, agencies, departments, and its political 3 subdivisions including school districts and other special 4 purpose districts. 5 19. Serious health condition means an illness, injury, 6 impairment, physical condition, or mental condition that 7 involves inpatient care in a hospital, hospice, medical care 8 facility, or continued treatment or continuing supervision by 9 a health care provider. 10 20. Spendable weekly earnings means the amount remaining 11 after payroll taxes are deducted from an employees gross 12 weekly earnings. 13 21. Spouse means the person with whom an individual has 14 entered into marriage as defined or recognized under state law 15 for purposes of marriage in the state in which the marriage 16 was entered into or, in the case of a marriage entered into 17 outside of any state, if the marriage is valid in the place 18 where the marriage was entered into and the marriage could have 19 been entered into in at least one state, including a common law 20 marriage. 21 22. Wages means the same as defined in section 91A.2. 22 Sec. 5. NEW SECTION . 96A.3 Benefit eligibility. 23 An employee is eligible for family leave and medical leave 24 as provided in this chapter after working for a covered 25 employer for both a minimum of twelve consecutive months 26 immediately preceding the employees request for leave and a 27 minimum of one thousand two hundred fifty hours during that 28 twelve-consecutive-month period. 29 Sec. 6. NEW SECTION . 96A.4 Leave entitlement for a defined 30 twelve-month period. 31 1. An employee is entitled to a maximum of twelve weeks 32 of family leave during a defined period of twelve consecutive 33 months. 34 2. An employee is entitled to a maximum of twelve weeks of 35 -4- LSB 1696XS (5) 91 je/js 4/ 24
S.F. 109 medical leave during a defined period of twelve consecutive 1 months unless the employee experiences a serious health 2 condition, which is pregnancy-related, that results in a longer 3 period of incapacity in which case any extended medical leave 4 beyond twelve weeks shall conform with section 216.6. 5 3. An employee is entitled to a maximum combined total of 6 paid family leave and medical leave of sixteen weeks during a 7 defined period of twelve consecutive months. 8 4. An employee is not entitled to family leave or medical 9 leave of less than eight consecutive hours. 10 Sec. 7. NEW SECTION . 96A.5 Calculating the defined 11 twelve-month period. 12 The defined period of twelve consecutive months for 13 calculation of an eligible employees family leave or medical 14 leave entitlement begins on any of the following: 15 1. The date of birth of the employees child, or the date 16 of placement of a child for adoption or foster care with the 17 employee. 18 2. The first day of family leave that the employee takes for 19 a family members serious health condition or a family members 20 qualifying exigency. 21 3. The first day of the employees medical leave. 22 Sec. 8. NEW SECTION . 96A.6 Disqualification from leave 23 entitlement. 24 An eligible employee is disqualified for family leave or 25 medical leave benefits under this chapter for any of the 26 following reasons: 27 1. An absence due to the employees willful intention to 28 injure or cause a sickness to the employee or to the employees 29 family member. 30 2. An injury or sickness caused by the employee engaging in 31 an illegal act. 32 3. The employees absence due to an employer taking any 33 disciplinary action against the employee. 34 Sec. 9. NEW SECTION . 96A.7 Employee notice to employer of 35 -5- LSB 1696XS (5) 91 je/js 5/ 24
S.F. 109 intent to take leave. 1 1. If leave for the birth of a child or placement of a child 2 for adoption or foster care with an employee is foreseeable, 3 the employee shall provide written notice to the employer not 4 less than thirty calendar days before the date the leave is to 5 begin. 6 2. If the birth of a child or placement of a child for 7 adoption or foster care with an employee requires leave to 8 begin in less than thirty calendar days, the employee shall 9 provide written notice to the employer as far in advance as is 10 practicable. 11 3. If leave for a family members serious health condition 12 or an employees serious health condition is foreseeable based 13 on planned medical treatment, the employee shall do all of the 14 following: 15 a. Make a reasonable effort to schedule such medical 16 treatment, subject to the recommendation of the employees or 17 family members health care provider as appropriate, to not 18 unduly disrupt the operations of the employer. 19 b. Provide the employer with not less than thirty calendar 20 days prior written notice of the employees intention to take 21 leave for a family members serious health condition or the 22 employees serious health condition. 23 4. If leave for a family members serious health condition 24 or an employees serious health condition is not foreseeable, 25 the employee shall provide written notice to the employer as 26 far in advance as is practicable. 27 Sec. 10. NEW SECTION . 96A.8 Weekly claim, certification, 28 and verification. 29 Beginning January 1, 2030, family leave or medical leave 30 insurance benefits are payable to an employee during a period 31 in which the employee is unable to perform the employees 32 regular or customary work because the employee is on family 33 leave or medical leave if the employee meets all of the 34 following requirements: 35 -6- LSB 1696XS (5) 91 je/js 6/ 24
S.F. 109 1. The employee files a weekly claim for benefits with the 1 department as required per rules adopted by the director. 2 2. The employee meets the eligibility requirements pursuant 3 to section 96A.3 or the elective coverage requirements pursuant 4 to section 96A.14. 5 3. The employee consents to the disclosure of information or 6 records that may be deemed private or confidential under state 7 or federal law. Disclosure of such information and records by 8 another state agency or an employer to the department shall 9 be solely for purposes related to the administration of this 10 chapter. Information and records disclosed by an employee 11 under this chapter shall not be public records as defined in 12 section 22.1. 13 4. The employee authorizes the health care provider of the 14 employees family member or of the employee, as applicable, to 15 complete a certification of a serious health condition in a 16 form as required by the director. 17 5. The employee attests that written notice has been 18 provided to the employees employer per section 96A.7. 19 6. The employee provides documentation of a family members 20 qualifying exigency if requested by the employees employer. 21 Sec. 11. NEW SECTION . 96A.9 Waiting period for leave 22 benefits. 23 Family leave or medical leave insurance benefits shall be 24 payable to an eligible employee following a waiting period 25 consisting of the first seven calendar days of the employees 26 leave. However, no such waiting period applies to a leave for 27 the birth or placement of a child with an eligible employee. 28 Sec. 12. NEW SECTION . 96A.10 Weekly leave benefit amount. 29 1. The basis for the calculation of a leave benefit amount 30 shall be the weekly earnings of an eligible employee on the 31 day the leave is granted. Weekly earnings means the gross 32 earnings of an employee to which the employee would have been 33 entitled had the employee worked the employees customary hours 34 for the full pay period in which the employee is on family 35 -7- LSB 1696XS (5) 91 je/js 7/ 24
S.F. 109 leave or medical leave. Weekly earnings shall be computed as 1 follows, rounded to the nearest dollar, for an employee who is 2 paid on the following basis: 3 a. On a weekly pay period basis, the weekly earnings are the 4 weekly gross earnings. 5 b. On a biweekly pay period basis, the weekly earnings are 6 one-half of the biweekly gross earnings. 7 c. On a semimonthly pay period basis, the weekly earnings 8 are the semimonthly gross earnings multiplied by twenty-four 9 and then divided by fifty-two. 10 d. On a monthly pay period basis, the weekly earnings 11 are the monthly gross earnings multiplied by twelve and then 12 divided by fifty-two. 13 e. On a yearly pay period basis, the weekly earnings shall 14 be the yearly earnings divided by fifty-two. 15 f. On a daily or hourly basis, or by the output of an 16 employee, the weekly earnings shall be computed by dividing by 17 thirteen the earnings, including shift differential pay but 18 not including overtime or premium pay, of the employee earned 19 in the last completed period of thirteen consecutive calendar 20 weeks immediately preceding the start day of the leave. If 21 the employee was absent from employment for personal reasons 22 during part of the thirteen calendar weeks preceding the 23 leave, the employees weekly earnings shall be the amount the 24 employee would have earned had the employee worked when work 25 was available to other employees of the employer in a similar 26 occupation. A week that does not fairly reflect the employees 27 customary earnings shall be replaced by the closest previous 28 week with earnings that fairly represent the employees 29 customary earnings. 30 2. If on the date that an employees leave begins the 31 employees hourly earnings cannot be ascertained, the earnings 32 for the purpose of calculating the benefit amount shall be the 33 usual earnings for similar services where such services are 34 rendered by paid employees. 35 -8- LSB 1696XS (5) 91 je/js 8/ 24
S.F. 109 3. If an employee earns either no wages, or less than the 1 usual weekly earnings of a regular full-time adult laborer 2 in the line of work in which the employee is working in that 3 locality, the weekly earnings shall be one-fiftieth of the 4 total earnings that the employee has earned from all employment 5 during the twelve consecutive calendar months immediately 6 preceding the date that the employees leave begins. 7 4. The weekly leave benefit amount payable to an employee 8 for any one week shall be eighty percent of the employees 9 spendable weekly earnings, but shall not exceed an amount equal 10 to two hundred percent of the statewide average weekly wage 11 as calculated by the department pursuant to section 96.1A and 12 in effect on the date that the employees leave commences. 13 However, the weekly leave benefit amount shall be a minimum 14 equal to the lesser of the weekly leave benefit amount of a 15 person whose gross weekly earnings are thirty-five percent of 16 the statewide average weekly wage, or to the spendable weekly 17 earnings of the employee. 18 Sec. 13. NEW SECTION . 96A.11 Payment of benefits to an 19 eligible employee. 20 1. The department shall send the first benefit payment to 21 an employee within ten calendar days after the first properly 22 completed weekly claim from the employee is received by 23 the department. Subsequent payments shall be sent at least 24 biweekly to an eligible employee if a properly completed weekly 25 claim from the employee is received by the department. 26 2. If an employer contests an employees initial claim 27 for family leave or medical leave benefits, the employer must 28 notify the employee and the department in the manner prescribed 29 by the director within ten calendar days of the employers 30 receipt of notice from the department of the employees filing 31 of a claim for benefits pursuant to section 96A.21, subsection 32 3. Failure to timely contest an initial application shall 33 constitute a waiver of objection to the family leave or medical 34 leave claim. 35 -9- LSB 1696XS (5) 91 je/js 9/ 24
S.F. 109 3. If the department or the employees employer contests 1 an employees eligibility for benefits after the employee 2 begins receiving benefits, the employee shall continue to 3 be paid benefits conditionally for any weeks for which the 4 employee files a claim for benefits. The employees right to 5 retain such benefit payments shall be conditioned upon the 6 departments finding that the employee is eligible for such 7 benefit payments. 8 a. At an employees request, the department shall hold 9 conditional benefit payments until the department resolves the 10 employees eligibility status. 11 b. Payment shall be issued promptly for any withheld benefit 12 payments if the department determines that an employee is 13 eligible for benefits. 14 c. If the department determines that an employee is 15 ineligible for the conditionally paid benefits, the employee 16 shall repay the overpayment per rules adopted by the director. 17 Sec. 14. NEW SECTION . 96A.12 Funding the family leave and 18 medical leave insurance program. 19 1. Beginning on January 1, 2029, and ending December 20 31, 2030, the department shall assess for each employee 21 in employment with a covered employer a premium rate of 22 four-tenths of one percent of the employees wages based on the 23 amount of the wages, subject to subsection 6. 24 a. The premium rate for family leave benefits shall be equal 25 to one-third of the total premium rate. 26 b. The premium rate for medical leave benefits shall be 27 equal to two-thirds of the total premium rate. 28 2. For calendar year 2031 and subsequent calendar years the 29 director shall determine the percentage of paid claims related 30 to family leave benefits and the percentage of paid claims 31 related to medical leave benefits and adjust the premium rates 32 set in subsection 1 by the proportional share of claims paid 33 for both types of leave. 34 3. For family leave premiums a covered employer may deduct 35 -10- LSB 1696XS (5) 91 je/js 10/ 24
S.F. 109 up to forty-five percent of the full amount of the required 1 premiums from the wages of each employee. The remaining 2 fifty-five percent of the required premiums shall be paid by 3 the covered employer. 4 4. For medical leave premiums a covered employer may deduct 5 up to forty-five percent of the full amount of the required 6 premiums from the wages of each employee. The remaining 7 fifty-five percent of the required premiums shall be paid by 8 the covered employer. 9 5. A covered employer may elect to pay all or any portion of 10 its employees share of the premiums for family leave benefits 11 or medical leave benefits or both. 12 6. The director shall annually set a maximum limit on the 13 amount of an employees wages that are subject to a premium 14 assessment under this section that is equal to the contribution 15 and benefit base for the calendar year as determined by the 16 United States social security administration for purposes of 17 26 U.S.C. 3121(a). 18 7. For calendar year 2031 and subsequent calendar years, 19 the total premium rate shall be based on the family leave and 20 medical leave insurance account balance ratio as of September 21 30 of the previous year. The director shall calculate the 22 account balance ratio by dividing the balance of the family 23 leave and medical leave insurance account by the total wages 24 paid by covered employers. The division shall be carried 25 to the fourth decimal place with the remaining fraction 26 disregarded unless it amounts to five hundred thousandths or 27 more in which case the fourth decimal place shall be rounded 28 to the next higher digit. If the family leave and medical 29 leave insurance account balance ratio is any of the following 30 percentages, the premium shall be the following percentage of 31 an employees wages subject to a premium assessment: 32 a. If the ratio is zero to nine hundredths of one percent, 33 the premium shall be six-tenths of one percent. 34 b. If the ratio is one-tenth of one percent to nineteen 35 -11- LSB 1696XS (5) 91 je/js 11/ 24
S.F. 109 hundredths of one percent, the premium shall be five-tenths of 1 one percent. 2 c. If the ratio is two-tenths of one percent to twenty-nine 3 hundredths of one percent, the premium shall be four-tenths of 4 one percent. 5 d. If the ratio is three-tenths of one percent to 6 thirty-nine hundredths of one percent, the premium shall be 7 three-tenths of one percent. 8 e. If the ratio is four-tenths of one percent to forty-nine 9 hundredths of one percent, the premium shall be two-tenths of 10 one percent. 11 f. If the ratio is five-tenths of one percent or greater, 12 the premium shall be one-tenth of one percent. 13 8. Beginning January 1, 2031, if the account balance ratio 14 calculated in subsection 7 is below five hundredths of one 15 percent, the director shall assess a solvency surcharge at 16 the lowest rate necessary to provide revenue to pay for the 17 administrative and benefit costs of family leave and medical 18 leave insurance for the calendar year. The solvency surcharge 19 shall be at least one-tenth of one percent and no more than 20 six-tenths of one percent and shall be added to the total 21 premium rate assessed to each employee of a covered employer 22 for family leave and medical leave benefits. 23 9. A covered employer shall collect all required premiums 24 and surcharges from the employers employees through payroll 25 deductions and shall remit the amount collected and the amount 26 to be paid by the employer to the department as required by 27 rules adopted by the director. 28 10. On September 30 of each year the department shall 29 average the number of employees reported by an employer over 30 the last four completed calendar quarters to determine the 31 number of employees employed by the employer for the purpose 32 of determining if an employer shall be considered a covered 33 employer for the next calendar year. 34 Sec. 15. NEW SECTION . 96A.13 Conditional waiver of premium 35 -12- LSB 1696XS (5) 91 je/js 12/ 24
S.F. 109 for out-of-state employee. 1 1. An employer may file an application with the department 2 for a conditional waiver of the payment of family leave and 3 medical leave premiums assessed under section 96A.12 for an 4 employee who meets all of the following requirements: 5 a. The employee is physically based outside of the state. 6 b. The employee physically works in the state on a limited 7 or temporary work schedule. 8 c. The employee is not expected to physically work in the 9 state for one thousand two hundred fifty hours or more during 10 any consecutive twelve-month period. 11 2. The department shall approve an application that is 12 signed by both the employee and the employees employer 13 attesting to compliance with the requirements of subsection 1. 14 3. If the employee physically works in the state for one 15 thousand two hundred fifty hours or more in any consecutive 16 twelve-month period, the conditional waiver shall expire and 17 the employer and employee shall be responsible for all premiums 18 pursuant to section 96A.12 for the consecutive twelve-month 19 period in which the employee worked one thousand two hundred 20 fifty hours or more. Upon submission of the premiums by the 21 employer to the department, the employee shall be credited for 22 the hours worked during that consecutive twelve-month period 23 and shall be eligible for benefits under this chapter. 24 Sec. 16. NEW SECTION . 96A.14 Self-employed persons elective 25 participation in the family leave and medical leave insurance 26 program. 27 1. A self-employed person electing to participate in the 28 family leave and medical leave insurance program shall be 29 considered either an employer or employee under this chapter 30 as the context dictates. 31 2. For benefits payable beginning January 1, 2031, a 32 self-employed person may elect to participate in the family 33 leave and medical leave insurance program under this chapter 34 if the self-employed person meets all of the following 35 -13- LSB 1696XS (5) 91 je/js 13/ 24
S.F. 109 requirements: 1 a. The initial participation period for the self-employed 2 person must be a minimum of three years. 3 b. Any subsequent participation period by the self-employed 4 person must be for a minimum of one year. 5 c. The self-employed person must participate in both family 6 leave and medical leave. 7 d. One hundred percent of all premiums assessed by 8 the department under section 96A.12 shall be paid by the 9 self-employed person. 10 3. A self-employed person shall file a written notice of 11 election of elective coverage with the department in the manner 12 required by the director. 13 4. A self-employed person shall be eligible for 14 family leave and medical leave benefits after working one 15 thousand two hundred fifty hours in the state during the 16 twelve-consecutive-month period immediately following the date 17 of the written notice the self-employed person filed pursuant 18 to subsection 3. 19 5. A self-employed person who has elected coverage may 20 withdraw from coverage within thirty calendar days after the 21 end of each participation period pursuant to subsection 2, 22 paragraph a or b , by filing a written notice of withdrawal 23 as required pursuant to the rules adopted by the director. The 24 withdrawal shall take effect no sooner than thirty calendar 25 days after the self-employed person files the notice of 26 withdrawal. 27 6. If a self-employed person fails to submit the required 28 premium payments, the department may cancel the persons 29 elective coverage. The cancellation shall be effective no 30 sooner than thirty days from the date of a written notice 31 from the department to the self-employed person advising the 32 self-employed person of the impending cancellation of the 33 self-employed persons elective coverage. The department shall 34 collect all due and unpaid premiums from the self-employed 35 -14- LSB 1696XS (5) 91 je/js 14/ 24
S.F. 109 person for the remainder of the applicable participation period 1 pursuant to subsection 2, paragraph a or b . 2 Sec. 17. NEW SECTION . 96A.15 Employment protection. 3 1. An eligible employee who takes family leave or medical 4 leave under this chapter is entitled to either of the following 5 on the employees return from leave: 6 a. To be restored to the same position held by the employee 7 when the employees leave commenced. 8 b. To be restored to an equivalent position with equivalent 9 employment benefits, pay, and other terms and conditions of 10 employment. 11 2. As a condition of restoration under subsection 1 for an 12 employee who has taken medical leave, the employer may apply 13 a uniform policy to the employee that requires an employee to 14 provide certification from the employees health care provider 15 that the employee is able to resume work. 16 3. Taking leave under this chapter shall not result in the 17 loss of any employment benefits accrued by an employee prior to 18 the date on which the employees leave commenced. 19 4. This section shall not be construed to entitle a restored 20 employee to any of the following: 21 a. The accrual of any seniority or employment benefits 22 during any period of leave. 23 b. Any right, benefit, or position of employment other than 24 any right, benefit, or position of employment to which the 25 employee would have been entitled had the employee not taken 26 leave. 27 5. This section shall not be construed to prohibit an 28 employer from requiring an employee on leave to report 29 periodically to the employer on the status and intention of the 30 employee to return to work. 31 6. An employer may deny restoration under this section to 32 a salaried employee who is among the ten percent highest-paid 33 employees employed by the employer within seventy-five miles 34 of the facility at which the employee is employed if all of the 35 -15- LSB 1696XS (5) 91 je/js 15/ 24
S.F. 109 following apply: 1 a. Denial of restoration is necessary to prevent substantial 2 and grievous economic injury to the operations of the employer. 3 b. The employer notifies the employee of the intent of the 4 employer to deny restoration on such basis at the time the 5 employer determines such basis exists. 6 c. The employee is on leave and elects not to return 7 to employment after receiving the employers notice of the 8 employers intent not to restore the employee. 9 7. This section shall not be construed as providing an 10 employee greater restoration rights than those required under 11 the federal Family and Medical Leave Act of 1993, as amended. 12 Sec. 18. NEW SECTION . 96A.16 Maintenance of existing health 13 benefits. 14 If required by the federal Family and Medical Leave 15 Act of 1993, as amended, an employer shall maintain any 16 existing health benefits of an employee for the duration of 17 an employees leave under this chapter. If the employer and 18 the employee normally share the cost of such existing health 19 benefits, the employee shall remain responsible for the 20 employees share of the cost of such. 21 Sec. 19. NEW SECTION . 96A.17 Employer submission of reports 22 and maintenance of records. 23 1. Pursuant to rules adopted by the director, an employer 24 shall submit reports and furnish information related to 25 the family leave and medical leave insurance program to the 26 director. 27 2. An employer shall maintain at the employers primary 28 place of business a record of employment for each employee from 29 which any information needed by the department for purposes of 30 this chapter may be obtained. Such record shall be maintained 31 for ten years from the date on which an eligible employee 32 applies for family leave or medical leave under this chapter. 33 The record shall be open for inspection by the director at all 34 times. All personnel records and employee medical records 35 -16- LSB 1696XS (5) 91 je/js 16/ 24
S.F. 109 shall be maintained by the employer in compliance with all 1 applicable federal and state laws. 2 Sec. 20. NEW SECTION . 96A.18 Coordination of family leave 3 and medical leave with other laws and with employer policies. 4 1. Family leave or medical leave taken by an employee under 5 this chapter shall be in addition to any leave available to 6 an employee as required by applicable state or federal law 7 for sickness or temporary disability because of pregnancy or 8 childbirth. 9 2. Family leave or medical leave taken by an employee under 10 this chapter shall be taken concurrently with any leave taken 11 under the federal Family and Medical Leave Act of 1993, as 12 amended. 13 3. An employer may allow an employee who has accrued 14 vacation, sick, or other paid time off to choose to use either 15 such accrued time or to receive paid family leave or medical 16 leave insurance benefits under this chapter. 17 Sec. 21. NEW SECTION . 96A.19 Relationship to other state 18 and federal benefits. 19 In any week an employee is eligible to receive benefits under 20 chapter 85, 85A, 85B, or 96, or any other applicable state or 21 federal unemployment compensation, workers compensation, or 22 disability insurance laws, the employee is disqualified from 23 receiving family leave or medical leave insurance benefits 24 under this chapter. 25 Sec. 22. NEW SECTION . 96A.20 Discrimination prohibited. 26 This chapter shall not be construed to modify or affect any 27 federal, state, or local law prohibiting discrimination on the 28 basis of age, race, creed, color, sex, sexual orientation, 29 gender identity, national origin, religion, disability, or 30 other protected category. 31 Sec. 23. NEW SECTION . 96A.21 Department to administer 32 family leave and medical leave insurance program and conduct 33 outreach. 34 1. The director shall establish and administer the family 35 -17- LSB 1696XS (5) 91 je/js 17/ 24
S.F. 109 leave and medical leave insurance program and disburse family 1 leave and medical leave benefits to an eligible employee as 2 specified in this chapter. 3 2. The director shall establish procedures and forms for 4 an employee to file an application for benefits under this 5 chapter. 6 3. The department shall notify an employer within five 7 business days of an employee filing a claim for family leave or 8 medical leave insurance benefits. 9 4. Information and records pertaining to an employee under 10 this chapter that are maintained by the department shall 11 be confidential and shall only be available to department 12 personnel in the performance of official duties. 13 5. The director shall develop and implement an outreach 14 program to ensure that employers and employees are aware of 15 the family leave and medical leave insurance program and are 16 aware of the leave benefits available to eligible employees. 17 Outreach information shall explain in an easy-to-understand 18 format all of the following: 19 a. Eligibility requirements. 20 b. The application process. 21 c. How weekly benefits are calculated and the minimum and 22 maximum weekly benefit amount. 23 d. Restoration rights. 24 e. Nondiscrimination rights. 25 f. Confidentiality. 26 g. The relationship between employment protection, leave 27 from employment, wage replacement benefits under this chapter 28 and other laws, and employer policies. 29 6. The department shall be authorized to inspect and audit 30 an employers files and records relating to the family leave 31 and medical leave insurance program under this chapter. 32 Sec. 24. NEW SECTION . 96A.22 Family leave and medical leave 33 insurance account. 34 1. The family leave and medical leave insurance account 35 -18- LSB 1696XS (5) 91 je/js 18/ 24
S.F. 109 is created as a separate account in the state treasury in the 1 custody of the treasurer of state. 2 2. The director shall deposit all receipts from premiums 3 imposed pursuant to sections 96A.12, 96A.13, and 96A.14 into 4 the account. Expenditures from the account shall be used 5 only for the purposes of the family leave and medical leave 6 insurance program and only as authorized by the director. 7 3. All premiums deposited in the account shall remain in 8 the account until expended pursuant to the requirements of this 9 chapter. 10 Sec. 25. NEW SECTION . 96A.23 Rules. 11 The director shall adopt rules pursuant to chapter 17A to 12 implement and administer this chapter. 13 Sec. 26. NEW SECTION . 96A.24 Enforcement. 14 The director may take any action under the directors 15 authority to enforce compliance with this chapter. 16 Sec. 27. DIRECTOR ANALYSIS OF FUNDING THE FAMILY LEAVE 17 AND MEDICAL LEAVE INSURANCE PROGRAM AND REPORT TO THE GENERAL 18 ASSEMBLY. 19 1. The director of the department of workforce development 20 shall conduct an analysis of the family leave and medical 21 leave insurance program as funded pursuant to section 96A.12, 22 as enacted in this Act, and of the benefits paid pursuant 23 to section 96A.10, as enacted in this Act. The director 24 shall determine if the premium rates and benefit levels are 25 appropriate to fully fund and maintain the solvency of the 26 family leave and medical leave insurance account. 27 2. The director shall submit the directors findings to 28 the general assembly pursuant to section 7A.11 no later than 29 January 12, 2026. 30 EXPLANATION 31 The inclusion of this explanation does not constitute agreement with 32 the explanations substance by the members of the general assembly. 33 This bill relates to a family leave and medical leave 34 insurance program (program), administered by the director of 35 -19- LSB 1696XS (5) 91 je/js 19/ 24
S.F. 109 the department of workforce development, that provides for 1 paid, job-protected leave for certain family leave and medical 2 leave reasons for eligible employees of specified employers. 3 An employee is eligible for family leave and medical leave 4 after working for a covered employer, as defined in the bill, 5 for a minimum of 12 consecutive months and a minimum of 1,250 6 hours during the 12 consecutive-month period immediately 7 preceding the employees request for leave. Family leave and 8 medical leave are defined in the bill. Family leave includes 9 leave to care for an immediate family member with a serious 10 health condition, to bond with a newborn child or adopted or 11 foster child, or for a qualifying exigency for a family member 12 as permitted under the federal Family and Medical Leave Act of 13 1993, as amended (FMLA). Medical leave includes leave due to 14 the employees own serious health condition. Serious health 15 condition is defined in the bill. 16 The bill provides that an eligible employee may not receive 17 more than 12 weeks of family leave, 12 weeks of medical leave, 18 or 16 weeks of combined family and medical leave in a defined 19 consecutive 12-month period. The defined consecutive 12-month 20 period begins on the date of the birth of a child or placement 21 of a child for adoption or foster care with an eligible 22 employee, or on the first date that an eligible employee takes 23 either family leave or medical leave. The minimum duration of 24 leave an eligible employee may take is eight consecutive hours. 25 The bill disqualifies an employee from family leave and 26 medical leave benefits under circumstances detailed in the 27 bill. 28 An employee must provide a minimum of 30 days notice 29 to an employer of the employees intent to take leave. If 30 circumstances require an employees leave to begin in less 31 than 30 days, the employee must give as much notice as is 32 practicable. If an eligible employee requests medical leave 33 or family leave, the employee must make a reasonable effort to 34 schedule their own, or their family members, medical treatment 35 -20- LSB 1696XS (5) 91 je/js 20/ 24
S.F. 109 to not unduly disrupt the employers operations. 1 The bill requires an eligible employee to file a claim 2 for benefits as required by the director. The employee 3 must consent to the disclosure of private or confidential 4 information to and from the department, and the employees 5 employer, for administration of the leave. The bill specifies 6 that such information is not a public record pursuant to Code 7 section 22.1. The employee must attest that the employee has 8 provided notice of intent to take leave to the employees 9 employer. The employee must also authorize the employees, 10 or the employees family members health care provider, to 11 complete a certification of a serious health condition. 12 The bill provides for a seven-day waiting period before 13 benefits are payable. There is no waiting period for benefits 14 for leave for the birth of a child or placement of a child for 15 adoption or foster care. 16 The basis for the calculation of the amount of a family 17 leave or medical leave benefit is an eligible employees weekly 18 earnings as defined in the bill. The weekly leave benefit 19 amount payable to an employee is detailed in the bill. 20 The department must send the first benefit payment to an 21 eligible employee within 10 days after a properly completed 22 weekly claim for benefits is received by the department. If 23 the employee continues to submit a properly completed weekly 24 claim, subsequent payments are to be made at least biweekly. 25 If an employer, or the department, contests an employees 26 eligibility, benefit payments may be made on a conditional 27 basis. The employee is required to pay the benefits back if 28 the department later rules that the employee is ineligible for 29 the benefits. 30 The bill provides that the program shall be funded via 31 employee and employer contributions. Beginning on January 1, 32 2029, and ending on December 31, 2030, the department must 33 assess a covered employer a premium rate of four-tenths of one 34 percent of an employees weekly wages, subject to a maximum as 35 -21- LSB 1696XS (5) 91 je/js 21/ 24
S.F. 109 determined by the director based on the maximum wages subject 1 to taxation for social security. One-third of the premium 2 is to be used to fund family leave insurance benefits and 3 two-thirds of the premium is to be used to fund medical leave 4 benefits. A covered employer may deduct up to 45 percent of 5 the medical leave premium and 45 percent of the family leave 6 premium from an employees wage. The employer must pay the 7 remaining 55 percent of both the medical leave and family 8 leave premiums, and may elect to pay all or any portion of its 9 employees share of such premiums. Beginning January 1, 2031, 10 the premium rate shall be calculated by the director based on 11 the family leave and medical leave insurance account balance 12 ratio as of September 30 of the previous calendar year. The 13 premium rate is adjusted based on the balance ratio as detailed 14 in the bill. 15 On September 30 of each year, the bill requires the 16 department to average the number of employees reported by an 17 employer over the last four completed calendar quarters to 18 determine if the employer is a covered employer for the next 19 calendar year. 20 The bill requires a covered employer to collect all assessed 21 premiums and surcharges from the employers employees through 22 payroll deduction and to remit all premiums to the department 23 as required by the director. 24 An employer may apply for, and the director must grant, a 25 waiver of premiums for an employee who is located physically 26 outside of the state and not expected to work in the state for 27 1,250 or more hours in any consecutive 12-month period. If 28 the employee subsequently works 1,250 or more hours within 29 the state, the employer and employee are responsible for all 30 premiums that should have been collected. 31 Self-employed persons may elect to participate in the 32 program as detailed in the bill. 33 An eligible employee who takes family leave or medical leave 34 is entitled to restoration of employment equal to but not 35 -22- LSB 1696XS (5) 91 je/js 22/ 24
S.F. 109 greater than that provided by FMLA. The bill provides that if 1 required under FMLA, an employer must maintain any existing 2 health benefits during an employees leave. If the employer 3 and employee normally share the cost of such, the employee is 4 responsible for paying the employees share of the costs. 5 A covered employer must submit reports as required by the 6 director and maintain employment records for each employee 7 from which the director may obtain information related to an 8 employees leave. Such records must be maintained for 10 9 years. 10 The bill provides that family leave or medical leave shall 11 be in addition to leave required under state or federal law 12 for sickness or temporary disability due to pregnancy or 13 childbirth. The bill requires family leave or medical leave 14 taken under this program to be taken concurrently with leave 15 taken under FMLA. A covered employer may allow an employee 16 to choose to use either accrued sick or vacation benefits, or 17 family leave and medical leave benefits. An employee cannot 18 receive family or medical leave benefits at the same time the 19 employee is receiving state or federal unemployment, workers 20 compensation, or disability benefits. The bill prohibits 21 discrimination on the basis of any state or federally protected 22 category. 23 The bill requires the director to administer the program and 24 to provide outreach to ensure that employers and employees are 25 aware of the program and the benefits available under such. 26 The bill provides that a family leave and medical leave 27 insurance account shall be created in the custody of the 28 treasurer of state. The director shall deposit all premiums 29 collected from employers into such account and the account can 30 only be used for the program as authorized by the director. 31 The bill requires the director to adopt rules to implement 32 and administer the provisions of the bill. The director may 33 take any action under the directors authority to enforce 34 compliance with the bill. 35 -23- LSB 1696XS (5) 91 je/js 23/ 24
S.F. 109 The director is required to analyze the funding of the 1 program and the benefits payable from the programs account. 2 The director shall determine if the premium rates and the 3 benefit levels are appropriate to fully fund and maintain the 4 solvency of the program. The director must submit the findings 5 to the general assembly no later than January 12, 2026. 6 -24- LSB 1696XS (5) 91 je/js 24/ 24