| 1 | 1 | | Senate File 509 - Introduced SENATE FILE 509 BY TOWNSEND A BILL FOR An Act relating to employment status and employment benefits 1 and including applicability provisions. 2 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 3 TLSB 2896XS (3) 91 je/js |
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| 3 | 3 | | S.F. 509 Section 1. NEW SECTION . 85.27A Continuation of health 1 insurance. 2 1. If an employee is unable to return to work due to an 3 injury for which a claim arises under chapter 10A, subchapter 4 III, this chapter, or chapter 85A or 85B, and if the employer 5 provided the employee with health insurance as of the time 6 the injury occurred, the employer shall continue to provide 7 the employee with health insurance on the same terms for at 8 least six months beginning on the day after the employee leaves 9 employment. 10 2. If the employer does not comply with subsection 1, the 11 employer shall be liable to the employee for reimbursement for 12 any medical costs incurred by the employee that would have 13 been covered by the health insurance required under subsection 14 1. Any dispute as to the extent or amount of such liability 15 may be referred by the employee or employer to the workers 16 compensation commissioner for resolution. 17 3. Each employer shall include the employers policies or 18 procedures for compliance with this section in any employment 19 contract, employee handbook, or offer of employment provided by 20 the employer. 21 4. This section applies to employers with fifteen or more 22 employees. 23 Sec. 2. Section 85.61, subsection 12, paragraph a, 24 subparagraph (3), unnumbered paragraph 1, Code 2025, is amended 25 to read as follows: 26 A real estate agent who does not provide the services of an 27 independent contractor. For the purposes of this subparagraph, 28 a real estate agent is an independent contractor if the real 29 estate agent meets the definition provided in paragraph c , 30 subparagraph (2) or if the real estate agent is licensed by the 31 Iowa real estate commission as a salesperson and both of the 32 following apply: 33 Sec. 3. Section 85.61, subsection 12, paragraph c, 34 subparagraph (2), Code 2025, is amended to read as follows: 35 -1- LSB 2896XS (3) 91 je/js 1/ 5 |
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| 5 | 5 | | S.F. 509 (2) (a) An independent contractor. For purposes of this 1 subparagraph, independent contractor means an individual 2 performing work to whom all of the following apply: 3 (i) The individual is free from control or direction by the 4 employer over the performance of the individuals services. 5 (ii) The individuals service is either outside the usual 6 course of the business of the employer or is performed outside 7 of all the places of business of the employer. 8 (iii) The individual is customarily engaged in an 9 independently established trade, occupation, profession, or 10 business. 11 (b) For purposes of this definition, an employer shall have 12 the burden to establish that an individual is an independent 13 contractor and not a worker or employee. 14 Sec. 4. Section 85.61, subsection 12, paragraph c, 15 subparagraph (3), subparagraph division (b), unnumbered 16 paragraph 1, Code 2025, is amended to read as follows: 17 An owner-operator who, as an individual or partner, or 18 shareholder of a corporate owner-operator, owns a vehicle 19 licensed and registered as a truck, road tractor, or truck 20 tractor by a governmental agency , is an independent contractor 21 if the owner-operator meets the definition provided in 22 subparagraph (2) or while performing services in the operation 23 of the owner-operators vehicle if all of the following 24 conditions are substantially present: 25 Sec. 5. Section 91A.2, subsection 3, paragraph c, Code 2025, 26 is amended to read as follows: 27 c. For purposes of this chapter , employee does not 28 include an independent contractor as defined in section 85.61, 29 subsection 12, paragraph c , subparagraph (2), or as described 30 in section 85.61, subsection 12 , paragraph c , subparagraph 31 (3). 32 Sec. 6. Section 91D.1, subsection 4, Code 2025, is amended 33 to read as follows: 34 4. For purposes of this chapter , employee does not 35 -2- LSB 2896XS (3) 91 je/js 2/ 5 |
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| 7 | 7 | | S.F. 509 include an independent contractor as defined in section 85.61, 1 subsection 12, paragraph c , subparagraph (2), or as described 2 in section 85.61, subsection 12 , paragraph c , subparagraph 3 (3). 4 Sec. 7. Section 96.1A, subsection 15, Code 2025, is amended 5 to read as follows: 6 15. Employing unit means any individual or type 7 of organization, including this state and its political 8 subdivisions, state agencies, boards, commissions, and 9 instrumentalities thereof, any partnership, association, 10 trust, estate, joint stock company, insurance company or 11 corporation, whether domestic or foreign, or the receiver, 12 trustee in bankruptcy, trustee or successor thereof, or 13 the legal representative of a deceased person, which has or 14 subsequent to January 1, 1936, had in its employ one or more 15 individuals performing services for it within this state. 16 All individuals performing services within this state for 17 any employing unit which that maintains two or more separate 18 establishments within this state shall be deemed to be employed 19 by a single employing unit for all the purposes of this 20 chapter . Whenever any employing unit contracts with or has 21 under it any contractor or subcontractor for any work which 22 that is part of its usual trade, occupation, profession, or 23 business, unless the employing unit as well as each such 24 contractor or subcontractor is an employer by reason of 25 subsection 14 or section 96.8, subsection 3 , the employing 26 unit shall for all the purposes of this chapter be deemed to 27 employ each individual in the employ of each such contractor 28 or subcontractor for each day during which such individual 29 is engaged in performing such work; except that each such 30 contractor or subcontractor who is an employer by reason of 31 subsection 14 or section 96.8, subsection 3 , shall alone be 32 liable for the contributions measured by wages payable to 33 individuals in the contractors or subcontractors employ, and 34 except that any employing unit who shall become liable for and 35 -3- LSB 2896XS (3) 91 je/js 3/ 5 |
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| 9 | 9 | | S.F. 509 pay contributions with respect to individuals in the employ of 1 any such contractor or subcontractor who is not an employer 2 by reason of subsection 14 or section 96.8, subsection 3 , may 3 recover the same from such contractor or subcontractor, except 4 as any contractor or subcontractor who would in the absence 5 of subsection 14 or section 96.8, subsection 3 , be liable 6 to pay said contributions, accepts exclusive liability for 7 said contributions under an agreement with such employer made 8 pursuant to general rules of the department. Each individual 9 employed to perform or to assist in performing the work of any 10 agent or employee of an employing unit shall be deemed to be 11 employed by such employing unit for all the purposes of this 12 chapter , whether such individual was hired or paid directly 13 by such employing unit or by such agent or employee, provided 14 the employing unit had actual or constructive knowledge of 15 such work, and provided, further, that such employment was 16 for a total of not less than eight hours in any one calendar 17 week. An employing unit shall not be deemed to employ an 18 independent contractor as defined in section 85.61, subsection 19 12, paragraph c , subparagraph (2), or as described in section 20 85.61, subsection 12 , paragraph c , subparagraph (3). 21 Sec. 8. APPLICABILITY. The following applies to injuries 22 occurring on or after the effective date of this Act: 23 The section of this Act enacting section 85.27A. 24 EXPLANATION 25 The inclusion of this explanation does not constitute agreement with 26 the explanations substance by the members of the general assembly. 27 This bill provides that if an employee is unable to return 28 to work due to an injury for which a claim for workers 29 compensation arises, and if the employer provided the employee 30 with health insurance as of the time the injury occurred, the 31 employer must continue to provide the employee with health 32 insurance on the same terms for at least six months beginning 33 on the day after the employee leaves employment. If the 34 employer does not comply, the employer shall be liable to the 35 -4- LSB 2896XS (3) 91 je/js 4/ 5 |
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| 11 | 11 | | S.F. 509 employee for reimbursement for any medical costs incurred by 1 the employee that would have been covered by the required 2 health insurance. The bill requires each employer to include 3 the employers policies or procedures for compliance with these 4 provisions in any employment contract, employee handbook, or 5 offer of employment provided by the employer. These provisions 6 apply to employers with 15 or more employees and to injuries 7 occurring on or after the effective date of the bill. 8 The bill defines independent contractor, for purposes of 9 workers compensation, wage payment collection, minimum wage, 10 and unemployment insurance, as an individual performing work 11 who is free from control or direction by the employer over the 12 performance of the individuals services, whose service is 13 either outside the usual course of the business of the employer 14 or is performed outside of all the places of business of the 15 employer, and who is customarily engaged in an independently 16 established trade, occupation, profession, or business. For 17 purposes of the definition, an employer shall have the burden 18 to establish that an individual is an independent contractor 19 and not a worker or employee. 20 -5- LSB 2896XS (3) 91 je/js 5/ 5 |
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