Bill Text: IA HF673 | 2025-2026 | 91st General Assembly | Introduced


Bill Title: 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.

Spectrum: Partisan Bill (Democrat 17-0)

Status: (Introduced) 2025-02-28 - Introduced, referred to Labor and Workforce. H.J. 477. [HF673 Detail]

Download: Iowa-2025-HF673-Introduced.html
House File 673 - Introduced HOUSE FILE 673 BY COOLING , WILBURN , JAMES , LEVIN , B. MEYER , KRESSIG , BAGNIEWSKI , MADISON , CROKEN , R. JOHNSON , AMOS JR. , SRINIVAS , EHLERT , OLSON , SCHOLTEN , WESSEL-KROESCHELL , and NIELSEN A BILL FOR An Act requiring certain weekly workers’ compensation benefits 1 to be calculated by including an employee’s overtime 2 and premium pay, and to include an annual cost-of-living 3 adjustment. 4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 5 TLSB 2162YH (4) 91 je/js
H.F. 673 Section 1. Section 85.36, Code 2025, is amended to read as 1 follows: 2 85.36 Basis of computation. 3 1. The basis of compensation shall be the weekly earnings 4 of the injured employee at the time of the injury. Weekly 5 earnings means gross salary, wages, or earnings of an employee 6 to which such employee would have been entitled had the 7 employee worked the customary hours for the full pay period in 8 which the employee was injured, as regularly required by the 9 employee’s employer for the work or employment for which the 10 employee was employed, computed or determined as follows and 11 then rounded to the nearest dollar: 12 1. a. In the case of an employee who is paid on a weekly 13 pay period basis, the weekly gross earnings. 14 2. b. In the case of an employee who is paid on a biweekly 15 pay period basis, one-half of the biweekly gross earnings. 16 3. c. In the case of an employee who is paid on a 17 semimonthly pay period basis, the semimonthly gross earnings 18 multiplied by twenty-four and subsequently divided by 19 fifty-two. 20 4. d. In the case of an employee who is paid on a monthly 21 pay period basis, the monthly gross earnings multiplied by 22 twelve and subsequently divided by fifty-two. 23 5. e. In the case of an employee who is paid on a yearly 24 pay period basis, the weekly earnings shall be the yearly 25 earnings divided by fifty-two. 26 6. f. In the case of an employee who is paid on a daily 27 or hourly basis, or by the output of the employee, the 28 weekly earnings shall be computed by dividing by thirteen 29 the earnings, including but not limited to overtime, shift 30 differential pay but not including overtime or , and premium 31 pay, of the employee earned in the employ of the employer in 32 the last completed period of thirteen consecutive calendar 33 weeks immediately preceding the injury. If the employee was 34 absent from employment for reasons personal to the employee 35 -1- LSB 2162YH (4) 91 je/js 1/ 5
H.F. 673 during part of the thirteen calendar weeks preceding the 1 injury, the employee’s weekly earnings shall be the amount 2 the employee would have earned had the employee worked when 3 work was available to other employees of the employer in a 4 similar occupation. A week which that does not fairly reflect 5 the employee’s customary earnings shall be replaced by the 6 closest previous week with earnings that fairly represent the 7 employee’s customary earnings. 8 7. g. In the case of an employee who has been in the employ 9 of the employer less than thirteen calendar weeks immediately 10 preceding the injury, the employee’s weekly earnings shall be 11 computed under subsection 6 paragraph “f” , taking the earnings, 12 including but not limited to overtime, shift differential 13 pay but not including overtime or , and premium pay, for such 14 purpose to be the amount the employee would have earned had the 15 employee been so employed by the employer the full thirteen 16 calendar weeks immediately preceding the injury and had 17 worked, when work was available to other employees in a similar 18 occupation. If the earnings of other employees cannot be 19 determined, the employee’s weekly earnings shall be the average 20 computed for the number of weeks the employee has been in the 21 employ of the employer. 22 h. In the case of an employee injured in the course of 23 performing as a professional athlete, the basis of compensation 24 for weekly earnings shall be one-fiftieth of total earnings 25 that the employee has earned from all employment for the 26 previous twelve months prior to the injury. 27 8. 2. If at the time of the injury the hourly earnings have 28 not been fixed or cannot be ascertained, the earnings for the 29 purpose of calculating compensation shall be taken to be the 30 usual earnings for similar services where when such services 31 are rendered by paid employees. 32 9. 3. a. If an employee earns either no wages or less 33 than the usual weekly earnings of the regular full-time 34 adult laborer in the line of industry in which the employee 35 -2- LSB 2162YH (4) 91 je/js 2/ 5
H.F. 673 is injured in that locality, the weekly earnings shall be 1 one-fiftieth of the total earnings which that the employee has 2 earned from all employment during the twelve calendar months 3 immediately preceding the injury. 4 a. b. In computing the compensation to be allowed a 5 volunteer fire fighter, emergency medical care provider, 6 reserve peace officer, or volunteer ambulance driver, the 7 earnings as a fire fighter, emergency medical care provider, 8 reserve peace officer, or volunteer ambulance driver shall be 9 disregarded and the volunteer fire fighter, emergency medical 10 care provider, reserve peace officer, or volunteer ambulance 11 driver shall be paid an amount equal to the compensation the 12 volunteer fire fighter, emergency medical care provider, 13 reserve peace officer, or volunteer ambulance driver would be 14 paid if injured in the normal course of the volunteer fire 15 fighter’s, emergency medical care provider’s, reserve peace 16 officer’s, or volunteer ambulance driver’s regular employment 17 or an amount equal to one hundred and forty percent of the 18 statewide average weekly wage, whichever is greater. 19 b. c. If the employee was an apprentice or trainee when 20 injured, and it is established under normal conditions the 21 employee’s earnings should be expected to increase during the 22 period of disability, that fact may be considered in computing 23 the employee’s weekly earnings. 24 c. d. If the employee was an inmate as defined in section 25 85.59 , the inmate’s actual earnings shall be disregarded, and 26 the weekly compensation rate shall be as set forth in section 27 85.59 . 28 10. 4. If a wage, or method of calculating a wage, is 29 used for the basis of the payment of a workers’ compensation 30 insurance premium for a proprietor, partner, limited liability 31 company member, limited liability partner, or officer of a 32 corporation, the wage or the method of calculating the wage 33 is determinative for purposes of computing the proprietor’s, 34 partner’s, limited liability company member’s, limited 35 -3- LSB 2162YH (4) 91 je/js 3/ 5
H.F. 673 liability partner’s, or officer’s weekly workers’ compensation 1 benefit rate. 2 11. 5. In computing the compensation to be allowed an 3 elected or appointed official, the official may choose either 4 of the following payment options: 5 a. The official shall be paid an amount of compensation 6 based on the official’s weekly earnings as an elected or 7 appointed official. 8 b. The earnings of the official as an elected or appointed 9 official shall be disregarded and the official shall be paid 10 an amount equal to one hundred forty percent of the statewide 11 average weekly wage. 12 12. In the case of an employee injured in the course of 13 performing as a professional athlete, the basis of compensation 14 for weekly earnings shall be one-fiftieth of total earnings 15 which the employee has earned from all employment for the 16 previous twelve months prior to the injury. 17 6. The basis of compensation for permanent total disability 18 benefits or death benefits shall increase on January 1 of 19 each year for compensation that becomes due that year by 20 a percentage equal to the cost-of-living adjustment made 21 to disability benefits payable by the United States social 22 security administration in December of the immediately 23 preceding year. 24 Sec. 2. Section 85.61, subsection 4, Code 2025, is amended 25 to read as follows: 26 4. “Gross earnings” means recurring payments by the 27 employer to the employee for employment, before any authorized 28 or lawfully required deduction or withholding of funds by 29 the employer, excluding irregular bonuses, retroactive pay, 30 overtime, penalty pay, reimbursement of expenses, expense 31 allowances, and the employer’s contribution for welfare 32 benefits. 33 EXPLANATION 34 The inclusion of this explanation does not constitute agreement with 35 -4- LSB 2162YH (4) 91 je/js 4/ 5
H.F. 673 the explanation’s substance by the members of the general assembly. 1 This bill requires certain weekly workers’ compensation 2 benefits to be calculated by including an employee’s overtime 3 and premium pay, and to include an annual cost-of-living 4 adjustment. 5 The bill requires the calculation of the amount of weekly 6 workers’ compensation benefits to include, not exclude, an 7 employee’s earnings for overtime and premium pay. 8 The bill requires the basis of compensation for weekly 9 workers’ compensation benefits payable for permanent total 10 disability benefits or death benefits to increase on January 11 1 each year for compensation that becomes due that year, by 12 a percentage equal to the cost-of-living adjustment made 13 to disability benefits payable by the United States social 14 security administration in December of the immediately 15 preceding year. 16 Technical corrections are also made to remove an unnumbered 17 paragraph and for purposes of clarity. 18 -5- LSB 2162YH (4) 91 je/js 5/ 5
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