Iowa House Bill HF673

Iowa 2025-2026 Regular Session

• Introduced: 2/28/25
• Refer: 2/28/25

Caption

A bill for an act requiring certain weekly workers' compensation benefits to be calculated by including an employee's overtime and premium pay, and to include an annual cost-of-living adjustment.

Impact

By including overtime and premium pay in the calculation of compensation, HF673 aims to better reflect the true earning power of workers who are injured on the job. This adjustment could lead to higher compensation payouts for employees who often work beyond regular hours or receive additional pay for special circumstances. The requirement for an annual cost-of-living adjustment seeks to ensure that the benefits remain relevant in the face of inflation, thereby providing ongoing financial support for injured workers over time.

Summary

House File 673 mandates that certain weekly workers' compensation benefits be calculated to include an employee's overtime and premium pay, thus ensuring workers receive fair compensation based on their actual earnings. This change directly impacts the fundamental computation methods of workers' compensation benefits in the State of Iowa, specifically within Chapter 85 of the Iowa Code regarding workers' compensation. Moreover, the bill stipulates that there will be an annual cost-of-living adjustment for these benefits, in line with adjustments made by the Social Security Administration.

Contention

While this bill holds the potential for significant positive impact on employees' financial well-being in the event of an injury, it may also face opposition from employers concerned about increased compensation costs. Proponents argue that it is a necessary adjustment that acknowledges the realities of the modern workforce, where overtime and premium pay are commonplace. Critics may assert that such changes could lead to higher insurance premiums and additional financial burden on businesses, particularly small enterprises unable to bear the increased costs.