Bill Text: IA SF2133 | 2017-2018 | 87th General Assembly | Introduced
Bill Title: A bill for an act relating to a family leave and medical leave insurance program that provides for paid, job-protected leave for certain family leave and medical leave reasons for eligible employees of specified employers.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2018-01-30 - Introduced, referred to Labor and Business Relations. S.J. 180. [SF2133 Detail]
Download: Iowa-2017-SF2133-Introduced.html
Senate File 2133 - Introduced SENATE FILE BY BOULTON A BILL FOR 1 An Act relating to a family leave and medical leave insurance 2 program that provides for paid, job=protected leave for 3 certain family leave and medical leave reasons for eligible 4 employees of specified employers. 5 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: TLSB 5236XS (7) 87 ko/rj PAG LIN 1 1 Section 1. NEW SECTION. 96A.1 Short title. 1 2 This section may be cited as the "Iowa Family and Medical 1 3 Leave Act". 1 4 Sec. 2. NEW SECTION. 96A.2 Definitions. 1 5 As used in this chapter, unless the context otherwise 1 6 requires: 1 7 1. "Child" means a biological, adopted, or foster child, 1 8 a stepchild, a legal ward, or a child of a person standing in 1 9 loco parentis, regardless of the child's age or dependency 1 10 status. 1 11 2. "Covered employer" means a private sector employer who 1 12 has ten or more employees for each working day during each of 1 13 twenty or more calendar workweeks in the current or previous 1 14 calendar year and a public employer without regard to the 1 15 number of employees employed. 1 16 3. "Department" means the department of workforce 1 17 development. 1 18 4. "Director" means the director of the department of 1 19 workforce development. 1 20 5. "Employee" means the same as defined in section 91A.2. 1 21 "Employee" does not include an independent contractor, a self= 1 22 employed person, or a patient or inmate employed by a state 1 23 or local institution to which the patient or inmate has been 1 24 sentenced or committed. 1 25 6. "Employer" means the same as defined in 91A.2. 1 26 "Employer" includes a temporary staffing agency or employment 1 27 agency. 1 28 7. "Employment benefits" means all benefits provided or 1 29 made available to an employee by an employer, including group 1 30 life insurance, health insurance, disability insurance, sick 1 31 leave, annual leave, educational benefits, and pensions except 1 32 benefits that are provided by a practice or written policy of 1 33 an employer or through an employee benefit plan as defined in 1 34 29 U.S.C. {1002(3). 1 35 8. "Family leave" means a leave taken from work by an 2 1 employee for any of the following reasons: 2 2 a. To participate in providing care, including physical or 2 3 psychological care, for a family member of the employee made 2 4 necessary by a serious health condition of the family member. 2 5 b. To bond with the employee's child after the child's 2 6 birth or with a child under the age of eighteen placed with the 2 7 employee for adoption or foster care. 2 8 c. Because of a qualifying exigency for a family member as 2 9 permitted under the federal Family and Medical Leave Act of 2 10 1993, as amended, and federal regulations as provided in 29 2 11 C.F.R. {825.126. 2 12 9. "Family member" means a child, parent, or spouse of an 2 13 employee. 2 14 10. "Gross earnings" means the same as defined in section 2 15 85.61. 2 16 11. "Health care provider" means a physician or other 2 17 health care practitioner licensed, accredited, registered, or 2 18 certified to perform specified health care services consistent 2 19 with state law. 2 20 12. "In loco parentis" means an individual who has 2 21 day=to=day responsibilities to care for or financially support 2 22 a child. 2 23 13. "Inpatient care" means an overnight stay in a hospital, 2 24 hospice, or residential medical care facility, including any 2 25 period of incapacity, or any subsequent treatment in connection 2 26 with such inpatient care. 2 27 14. "Medical leave" means a leave from work taken by an 2 28 employee made necessary by the employee's own serious health 2 29 condition. 2 30 15. "Parent" means a biological, adoptive, step, or foster 2 31 father or mother, or any other individual who stands in 2 32 loco parentis to an employee or who stood in loco parentis 2 33 when the employee was a child. "Parent" does not include a 2 34 parent=in=law. 2 35 16. "Period of incapacity" means an inability to work, 3 1 attend school, or perform other regular daily activities due 3 2 to a serious health condition, treatment of a serious health 3 3 condition, or recovery from a serious health condition. 3 4 17. "Premium" or "premiums" means the payments required by 3 5 section 96A.12 and paid to the department for deposit in the 3 6 family and medical leave insurance account pursuant to section 3 7 96A.22. 3 8 18. "Public employer" means the state of Iowa, its 3 9 boards, commissions, agencies, departments, and its political 3 10 subdivisions including school districts and other special 3 11 purpose districts. 3 12 19. "Serious health condition" means an illness, injury, 3 13 impairment, physical condition, or mental condition that 3 14 involves inpatient care in a hospital, hospice, medical care 3 15 facility, or continued treatment or continuing supervision by 3 16 a health care provider. 3 17 20. "Spendable weekly earnings" means the amount remaining 3 18 after payroll taxes are deducted from an employee's gross 3 19 weekly earnings. 3 20 21. "Spouse" means the other person with whom an individual 3 21 has entered into marriage as defined or recognized under state 3 22 law for purposes of marriage in the state in which the marriage 3 23 was entered into or, in the case of a marriage entered into 3 24 outside of any state, if the marriage is valid in the place 3 25 where the marriage was entered into and the marriage could have 3 26 been entered into in at least one state, including a same sex 3 27 or common law marriage. 3 28 22. "Wages" means the same as defined in section 91A.2. 3 29 Sec. 3. NEW SECTION. 96A.3 Benefit eligibility. 3 30 An employee is eligible for family leave and medical leave 3 31 as provided in this chapter after working for a covered 3 32 employer for both a minimum of twelve consecutive months 3 33 immediately preceding the employee's request for leave and a 3 34 minimum of one thousand two hundred fifty hours during that 3 35 twelve=consecutive=month period. 4 1 Sec. 4. NEW SECTION. 96A.4 Leave entitlement for a defined 4 2 twelve=month period. 4 3 1. An employee is entitled to a maximum of twelve weeks 4 4 of family leave during a defined period of twelve consecutive 4 5 months. 4 6 2. An employee is entitled to a maximum of twelve weeks of 4 7 medical leave during a defined period of twelve consecutive 4 8 months unless the employee experiences a serious health 4 9 condition, which is pregnancy=related, that results in a longer 4 10 period of incapacity in which case any extended medical leave 4 11 beyond twelve weeks shall conform with section 216.6. 4 12 3. An employee is entitled to a maximum combined total of 4 13 paid family leave and medical leave of sixteen weeks during a 4 14 defined period of twelve consecutive months. 4 15 4. An employee is not entitled to family leave or medical 4 16 leave of less than eight consecutive hours. 4 17 Sec. 5. NEW SECTION. 96A.5 Calculating the defined 4 18 twelve=month period. 4 19 The defined period of twelve consecutive months for 4 20 calculation of an eligible employee's family leave or medical 4 21 leave entitlement begins on any of the following: 4 22 1. The date of birth of an employee's child or the date 4 23 of placement of a child for adoption or foster care with the 4 24 employee. 4 25 2. The first day of family leave that an employee takes for 4 26 a family member's serious health condition or a family member's 4 27 qualifying exigency. 4 28 3. The first day of medical leave. 4 29 Sec. 6. NEW SECTION. 96A.6 Disqualification from leave 4 30 entitlement. 4 31 An eligible employee is disqualified for family leave or 4 32 medical leave benefits under this chapter for any of the 4 33 following: 4 34 1. An absence due to the employee's willful intention to 4 35 injure or cause a sickness to the employee or to the employee's 5 1 family member. 5 2 2. An injury or sickness caused by the employee engaging in 5 3 an illegal act. 5 4 3. The employee's absence due to an employer taking any 5 5 disciplinary action against the employee. 5 6 Sec. 7. NEW SECTION. 96A.7 Employee notice to employer of 5 7 intent to take leave. 5 8 1. If leave for the birth of a child or placement of a child 5 9 for adoption or foster care with an employee is foreseeable, 5 10 the employee shall provide written notice not less than thirty 5 11 calendar days before the date the leave is to begin. 5 12 2. If the birth of a child or placement of a child for 5 13 adoption or foster care with an employee requires leave to 5 14 begin in less than thirty calendar days, the employee shall 5 15 provide written notice as far in advance as is practicable. 5 16 3. If leave for a family member's serious health condition 5 17 or an employee's serious health condition is foreseeable based 5 18 on planned medical treatment, the employee shall do all of the 5 19 following: 5 20 a. Make a reasonable effort to schedule such medical 5 21 treatment, subject to the recommendation of the employee's or 5 22 family member's health care provider as appropriate, to not 5 23 unduly disrupt the operations of the employer. 5 24 b. Provide the employer with not less than thirty calendar 5 25 days prior written notice of the employee's intention to take 5 26 leave for a family member's serious health condition or the 5 27 employee's serious health condition. 5 28 4. If leave for a family member's serious health condition 5 29 or an employee's serious health condition is not foreseeable, 5 30 the employee shall provide written notice as far in advance as 5 31 is practicable. 5 32 Sec. 8. NEW SECTION. 96A.8 Weekly claim, certification, and 5 33 verification. 5 34 Beginning January 1, 2023, family leave or medical leave 5 35 insurance benefits are payable to an employee during a period 6 1 in which the employee is unable to perform the employee's 6 2 regular or customary work because the employee is on family 6 3 leave or medical leave if the employee meets all of the 6 4 following requirements: 6 5 1. The employee files a weekly claim for benefits with the 6 6 department as required per rules adopted by the director. 6 7 2. The employee meets the eligibility requirements pursuant 6 8 to section 96A.3 or the elective coverage requirements pursuant 6 9 to section 96A.14. 6 10 3. The employee consents to the disclosure of information or 6 11 records that may be deemed private or confidential under state 6 12 or federal law. Disclosure of such information and records by 6 13 another state agency or an employer to the department shall 6 14 be solely for purposes related to the administration of this 6 15 chapter. Information and records disclosed by an employee 6 16 under this chapter shall not be public records as defined in 6 17 section 22.1. 6 18 4. The employee authorizes the health care provider of the 6 19 employee's family member or of the employee, as applicable, to 6 20 complete a certification of a serious health condition in a 6 21 form as required by the director. 6 22 5. The employee attests that written notice has been 6 23 provided to the employee's employer per section 96A.7. 6 24 6. The employee provides documentation of a family member's 6 25 qualifying exigency if requested by the employee's employer. 6 26 Sec. 9. NEW SECTION. 96A.9 Waiting period for leave 6 27 benefits. 6 28 Family leave or medical leave insurance benefits shall be 6 29 payable to an eligible employee following a waiting period 6 30 consisting of the first seven calendar days of leave. However, 6 31 no waiting period applies to a leave for the birth or placement 6 32 of a child with an eligible employee. 6 33 Sec. 10. NEW SECTION. 96A.10 Weekly leave benefit amount. 6 34 1. The basis for the calculation of a leave benefit amount 6 35 shall be the weekly earnings of an eligible employee on the 7 1 day the leave is granted. "Weekly earnings" means the gross 7 2 earnings of an employee to which such employee would have been 7 3 entitled had the employee worked the employee's customary hours 7 4 for the full pay period in which the employee is on family 7 5 leave or medical leave. Weekly earnings shall be computed as 7 6 follows, rounded to the nearest dollar, for an employee who is 7 7 paid on the following basis: 7 8 a. On a weekly pay period basis, the weekly earnings are the 7 9 weekly gross earnings. 7 10 b. On a biweekly pay period basis, the weekly earnings are 7 11 one=half of the biweekly gross earnings. 7 12 c. On a semimonthly pay period basis, the weekly earnings 7 13 are the semimonthly gross earnings multiplied by twenty=four 7 14 and then divided by fifty=two. 7 15 d. On a monthly pay period basis, the weekly earnings 7 16 are the monthly gross earnings multiplied by twelve and then 7 17 divided by fifty=two. 7 18 e. On a yearly pay period basis, the weekly earnings shall 7 19 be the yearly earnings divided by fifty=two. 7 20 f. On a daily or hourly basis, or by the output of an 7 21 employee, the weekly earnings shall be computed by dividing by 7 22 thirteen the earnings, including shift differential pay but 7 23 not including overtime or premium pay, of the employee earned 7 24 in the last completed period of thirteen consecutive calendar 7 25 weeks immediately preceding the start day of the leave. If 7 26 the employee was absent from employment for personal reasons 7 27 during part of the thirteen calendar weeks preceding the 7 28 leave, the employee's weekly earnings shall be the amount the 7 29 employee would have earned had the employee worked when work 7 30 was available to other employees of the employer in a similar 7 31 occupation. A week that does not fairly reflect the employee's 7 32 customary earnings shall be replaced by the closest previous 7 33 week with earnings that fairly represent the employee's 7 34 customary earnings. 7 35 2. If on the date that leave begins an employee's hourly 8 1 earnings cannot be ascertained, the earnings for the purpose 8 2 of calculating the benefit amount shall be the usual earnings 8 3 for similar services where such services are rendered by paid 8 4 employees. 8 5 3. If an employee earns either no wages or less than the 8 6 usual weekly earnings of a regular full=time adult laborer 8 7 in the line of work in which the employee is working in 8 8 that locality, the weekly earnings shall be one=fiftieth of 8 9 the total earnings which the employee has earned from all 8 10 employment during the twelve consecutive calendar months 8 11 immediately preceding the date that the employee's leave 8 12 begins. 8 13 4. The weekly leave benefit amount payable to an employee 8 14 for any one week shall be eighty percent of the employee's 8 15 weekly spendable earnings, but shall not exceed an amount equal 8 16 to two hundred percent of the statewide average weekly wage 8 17 paid to employees as determined by the department pursuant to 8 18 section 96.19 and in effect on the date that the employee's 8 19 leave commences. However, the weekly leave benefit amount 8 20 shall be a minimum equal to the lesser of the weekly leave 8 21 benefit amount of a person whose gross weekly earnings are 8 22 thirty=five percent of the statewide average weekly wage, or to 8 23 the spendable weekly earnings of the employee. 8 24 Sec. 11. NEW SECTION. 96A.11 Payment of benefits to an 8 25 eligible employee. 8 26 1. The department shall send the first benefit payment to 8 27 an employee within ten calendar days after the first properly 8 28 completed weekly claim from the employee is received by 8 29 the department. Subsequent payments shall be sent at least 8 30 biweekly to an eligible employee if a properly completed weekly 8 31 claim from the employee is received by the department. 8 32 2. If an employer contests an employee's initial claim 8 33 for family leave or medical leave benefits, the employer must 8 34 notify the employee and the department in the manner prescribed 8 35 by the director within ten calendar days of the employer's 9 1 receipt of notice from the department of the employee's filing 9 2 of a claim for benefits. Failure to timely contest an initial 9 3 application shall constitute a waiver of objection to the 9 4 family leave or medical leave claim. 9 5 3. If the department or the employer contests an employee's 9 6 eligibility for benefits after the employee begins receiving 9 7 benefits the employee shall continue to be paid benefits 9 8 conditionally for any weeks for which the employee files a 9 9 claim for benefits. The employee's right to retain such 9 10 benefit payments shall be conditioned upon the department's 9 11 finding that the employee is eligible for such benefit 9 12 payments. 9 13 a. At an employee's request, the department shall hold 9 14 conditional benefit payments until the department resolves the 9 15 employee's eligibility status. 9 16 b. Payment shall be issued promptly for any withheld benefit 9 17 payments if the department determines that an employee is 9 18 eligible for benefits. 9 19 c. If the department determines that an employee is 9 20 ineligible for the conditionally paid benefits, the employee 9 21 shall repay the overpayment per rules as adopted by the 9 22 director. 9 23 Sec. 12. NEW SECTION. 96A.12 Funding the family leave and 9 24 medical leave insurance program. 9 25 1. Beginning on January 1, 2021, and ending December 9 26 31, 2022, the department shall assess for each employee 9 27 in employment with a covered employer a premium rate of 9 28 four=tenths of one percent of an employee's wages based on the 9 29 amount of the individual's wages, subject to subsection 6. 9 30 a. The premium rate for family leave benefits shall be equal 9 31 to one=third of the total premium rate. 9 32 b. The premium rate for medical leave benefits shall be 9 33 equal to two=thirds of the total premium rate. 9 34 2. For calendar year 2023 and subsequent calendar years the 9 35 director shall determine the percentage of paid claims related 10 1 to family leave benefits and the percentage of paid claims 10 2 related to medical leave benefits and adjust the premium rates 10 3 set in subsection 1 by the proportional share of claims paid 10 4 for both types of leave. 10 5 3. For family leave premiums a covered employer may deduct 10 6 up to forty=five percent of the full amount of the required 10 7 premiums from the wages of each employee. The remaining 10 8 fifty=five percent of the required premiums shall be paid by 10 9 the covered employer. 10 10 4. For medical leave premiums a covered employer may deduct 10 11 up to forty=five percent of the full amount of the required 10 12 premiums from the wages of each employee. The remaining 10 13 fifty=five percent of the required premiums shall be paid by 10 14 the covered employer. 10 15 5. A covered employer may elect to pay all or any portion of 10 16 the employee's share of the premiums for family leave benefits 10 17 or medical leave benefits or both. 10 18 6. The director shall annually set a maximum limit on the 10 19 amount of an employee's wages that are subject to a premium 10 20 assessment under this section that is equal to the contribution 10 21 and benefit base for the calendar year as determined by the 10 22 United States social security administration for purposes of 10 23 26 U.S.C. {3121(a). 10 24 7. For calendar year 2023 and subsequent calendar years, 10 25 the total premium rate shall be based on the family leave and 10 26 medical leave insurance account balance ratio as of September 10 27 30 of the previous year. The director shall calculate the 10 28 account balance ratio by dividing the balance of the family 10 29 leave and medical leave insurance account by the total wages 10 30 paid by covered employers. The division shall be carried 10 31 to the fourth decimal place with the remaining fraction 10 32 disregarded unless it amounts to five hundred thousandths or 10 33 more in which case the fourth decimal place shall be rounded 10 34 to the next higher digit. If the family leave and medical 10 35 leave insurance account balance ratio is any of the following 11 1 percentages, the premium shall be the following percentage of 11 2 an employee's wages subject to a premium assessment: 11 3 a. If the ratio is zero to nine hundredths of one percent, 11 4 the premium shall be six=tenths of one percent. 11 5 b. If the ratio is one=tenth of one percent to nineteen 11 6 hundredths of one percent, the premium shall be five=tenths of 11 7 one percent. 11 8 c. If the ratio is two=tenths of one percent to twenty=nine 11 9 hundredths of one percent, the premium shall be four=tenths of 11 10 one percent. 11 11 d. If the ratio is three=tenths of one percent to 11 12 thirty=nine hundredths of one percent, the premium shall be 11 13 three=tenths of one percent. 11 14 e. If the ratio is four=tenths of one percent to forty=nine 11 15 hundredths of one percent, the premium shall be two=tenths of 11 16 one percent. 11 17 f. If the ratio is five=tenths of one percent or greater, 11 18 the premium shall be one=tenth of one percent. 11 19 8. Beginning January 1, 2023, if the account balance ratio 11 20 calculated in subsection 7 is below five hundredths of one 11 21 percent, the director shall assess a solvency surcharge at 11 22 the lowest rate necessary to provide revenue to pay for the 11 23 administrative and benefit costs of family leave and medical 11 24 leave insurance for the calendar year. The solvency surcharge 11 25 shall be at least one=tenth of one percent and no more than 11 26 six=tenths of one percent and shall be added to the total 11 27 premium rate assessed to each employee of a covered employer 11 28 for family leave and medical leave benefits. 11 29 9. A covered employer shall collect all required premiums 11 30 and surcharges from the employer's employees through payroll 11 31 deductions and shall remit the amount collected and the amount 11 32 to be paid by the employer to the department as required by 11 33 rules adopted by the director. 11 34 10. On September 30 of each year the department shall 11 35 average the number of employees reported by an employer over 12 1 the last four completed calendar quarters to determine the 12 2 number of employees employed by the employer for the purpose 12 3 of determining if an employer shall be considered a covered 12 4 employer for the next calendar year. 12 5 Sec. 13. NEW SECTION. 96A.13 Waiver of premium for 12 6 out=of=state employee. 12 7 1. An employer may file an application with the department 12 8 for a conditional waiver of the payment of family leave and 12 9 medical leave premiums assessed under section 96A.12 for an 12 10 employee who meets all of the following requirements: 12 11 a. The employee is physically based outside of the state. 12 12 b. The employee is physically working in the state on a 12 13 limited or temporary work schedule. 12 14 c. The employee is not expected to be physically working 12 15 in the state for one thousand two hundred fifty hours or more 12 16 during any consecutive twelve=month period. 12 17 2. The department shall approve an application that is 12 18 signed by both the employee and the employee's employer 12 19 attesting to compliance with the requirements of subsection 1. 12 20 3. If the employee physically works in the state for one 12 21 thousand two hundred fifty hours or more in any consecutive 12 22 twelve=month period, the conditional waiver shall expire and 12 23 the employer and employee shall be responsible for all premiums 12 24 pursuant to section 96A.12 for the consecutive twelve=month 12 25 period in which the employee worked one thousand two hundred 12 26 fifty hours or more. Upon submission of the premiums by the 12 27 employer to the department, the employee shall be credited for 12 28 the hours worked during that consecutive twelve=month period 12 29 and shall be eligible for benefits under this chapter. 12 30 Sec. 14. NEW SECTION. 96A.14 Self=employed persons elective 12 31 participation in the family leave and medical leave insurance 12 32 program. 12 33 1. A self=employed person electing to participate in 12 34 the family leave and medical leave insurance program shall 12 35 be considered an employer or employee where the context so 13 1 dictates. 13 2 2. For benefits payable beginning January 1, 2023, a 13 3 self=employed person may elect to participate in the family 13 4 leave and medical leave insurance program under this chapter 13 5 if the self=employed person meets all of the following 13 6 requirements: 13 7 a. The initial participation period for the self=employed 13 8 person must be a minimum of three years. 13 9 b. Any subsequent period of participation by the 13 10 self=employed person must be for a minimum of one year. 13 11 c. The self=employed person must participate in both family 13 12 leave and medical leave. 13 13 d. One hundred percent of all premiums assessed under 13 14 section 96A.12 shall be paid by the self=employed person. 13 15 3. A self=employed person shall file a written notice of 13 16 election of elective coverage with the department in the manner 13 17 required by the director. 13 18 4. A self=employed person shall be eligible for 13 19 family leave and medical leave benefits after working one 13 20 thousand two hundred fifty hours in the state during the 13 21 twelve=consecutive=month period immediately following the date 13 22 of the written notice the self=employed person filed pursuant 13 23 to subsection 3. 13 24 5. A self=employed person who has elected coverage may 13 25 withdraw from coverage within thirty calendar days after the 13 26 end of each period of coverage by filing a written notice of 13 27 withdrawal as required by the director. The withdrawal shall 13 28 take effect no sooner than thirty calendar days after the 13 29 self=employed person files the notice of withdrawal. 13 30 6. If a self=employed person fails to submit the required 13 31 premium payments, the department may cancel the person's 13 32 elective coverage. The cancellation shall be effective no 13 33 sooner than thirty days from the date of a written notice 13 34 from the department to the self=employed person advising the 13 35 self=employed person of the impending cancellation of the 14 1 self=employed person's elective coverage. The department shall 14 2 collect all due and unpaid premiums for the remainder of the 14 3 period of coverage from the self=employed person. 14 4 Sec. 15. NEW SECTION. 96A.15 Employment protection. 14 5 1. An eligible employee who takes family leave or medical 14 6 leave under this chapter is entitled to any of the following on 14 7 the employee's return from leave: 14 8 a. To be restored to the same position held by the employee 14 9 when the employee's leave commenced. 14 10 b. To be restored to an equivalent position with equivalent 14 11 employment benefits, pay, and other terms and conditions of 14 12 employment. 14 13 2. As a condition of restoration under subsection 1 for an 14 14 employee who has taken medical leave, the employer may apply 14 15 to the employee a uniform policy that requires an employee to 14 16 provide certification from the employee's health care provider 14 17 that the employee is able to resume work. 14 18 3. Taking leave under this chapter shall not result in the 14 19 loss of any employment benefits accrued by an employee prior to 14 20 the date on which the employee's leave commenced. 14 21 4. This section shall not be construed to entitle a restored 14 22 employee to any of the following: 14 23 a. The accrual of any seniority or employment benefits 14 24 during any period of leave. 14 25 b. Any right, benefit, or position of employment other than 14 26 any right, benefit, or position of employment to which the 14 27 employee would have been entitled had the employee not taken 14 28 leave. 14 29 5. This section shall not be construed to prohibit an 14 30 employer from requiring an employee on leave to report 14 31 periodically to the employer on the status and intention of the 14 32 employee to return to work. 14 33 6. An employer may deny restoration under this section to 14 34 a salaried employee who is among the ten percent highest paid 14 35 of the employees employed by the employer within seventy=five 15 1 miles of the facility at which the employee is employed if all 15 2 of the following apply: 15 3 a. Denial of restoration is necessary to prevent substantial 15 4 and grievous economic injury to the operations of the employer. 15 5 b. The employer notifies the employee of the intent of the 15 6 employer to deny restoration on such basis at the time the 15 7 employer determines such basis exists. 15 8 c. The employee is on leave and elects not to return 15 9 to employment after receiving the employer's notice of the 15 10 employer's intent not to restore the employee. 15 11 7. This section shall not be construed as providing an 15 12 employee greater restoration rights than those required under 15 13 the federal Family and Medical Leave Act of 1993, as amended. 15 14 Sec. 16. NEW SECTION. 96A.16 Maintenance of existing health 15 15 benefits. 15 16 If required by the federal Family and Medical Leave 15 17 Act of 1993, as amended, an employer shall maintain any 15 18 existing health benefits of an employee for the duration of 15 19 an employee's leave under this chapter. If the employer and 15 20 the employee normally share the cost of such existing health 15 21 benefits, the employee shall remain responsible for the 15 22 employee's share of the cost of such. 15 23 Sec. 17. NEW SECTION. 96A.17 Employer submission of reports 15 24 and maintenance of records. 15 25 1. As specified by the director and in the form and at 15 26 the time as required by the director an employer shall submit 15 27 reports and furnish information related to the family leave and 15 28 medical leave insurance program to the director. 15 29 2. An employer shall maintain at the employer's primary 15 30 place of business a record of employment for each employee from 15 31 which any information needed by the department for purposes of 15 32 this chapter may be obtained. Such record shall be maintained 15 33 for ten years from the date on which an eligible employee 15 34 applies for family leave or medical leave under this chapter. 15 35 The record shall be open for inspection by the director at all 16 1 times. All personnel and employee medical records shall be 16 2 maintained by the employer in compliance with all applicable 16 3 federal and state laws. 16 4 Sec. 18. NEW SECTION. 96A.18 Coordination of family leave 16 5 and medical leave with other laws and with employer policies. 16 6 1. Family leave or medical leave taken by an employee 16 7 under this chapter shall be in addition to any leave required 16 8 by applicable state or federal law for sickness or temporary 16 9 disability because of pregnancy or childbirth. 16 10 2. Family leave or medical leave taken by an employee under 16 11 this chapter shall be taken concurrently with any leave taken 16 12 under the federal Family and Medical Leave Act of 1993, as 16 13 amended. 16 14 3. An employer may allow an employee who has accrued 16 15 vacation, sick, or other paid time off to choose to use either 16 16 such accrued time or to receive paid family leave or medical 16 17 leave insurance benefits under this chapter. 16 18 Sec. 19. NEW SECTION. 96A.19 Relationship to other state 16 19 and federal benefits. 16 20 In any week an employee is eligible to receive benefits under 16 21 chapter 85, 85A, 85B, or 96, or any other applicable state or 16 22 federal unemployment compensation, workers' compensation, or 16 23 disability insurance laws, the employee is disqualified from 16 24 receiving family leave or medical leave insurance benefits 16 25 under this chapter. 16 26 Sec. 20. NEW SECTION. 96A.20 Discrimination prohibited. 16 27 This chapter shall not be construed to modify or affect any 16 28 federal, state, or local law prohibiting discrimination on the 16 29 basis of age, race, creed, color, sex, sexual orientation, 16 30 gender identity, national origin, religion, disability, or 16 31 other protected category. 16 32 Sec. 21. NEW SECTION. 96A.21 Department to administer 16 33 family leave and medical leave insurance program and conduct 16 34 outreach. 16 35 1. The director shall establish and administer the family 17 1 leave and medical leave insurance program and disburse family 17 2 leave and medical leave benefits to an eligible employee as 17 3 specified in this chapter. 17 4 2. The director shall establish procedures and forms for 17 5 an employee to file an application for benefits under this 17 6 chapter. 17 7 3. The department shall notify an employer within five 17 8 business days of an employee filing a claim for family leave or 17 9 medical leave insurance benefits. 17 10 4. Information and records pertaining to an employee under 17 11 this chapter that are maintained by the department shall 17 12 be confidential and shall only be available to department 17 13 personnel in the performance of official duties. 17 14 5. The director shall develop and implement an outreach 17 15 program to ensure that employers and employees are aware of 17 16 the family leave and medical leave insurance program and are 17 17 aware of the leave benefits available to eligible employees. 17 18 Outreach information shall explain in an easy=to=understand 17 19 format all of the following: 17 20 a. Eligibility requirements. 17 21 b. The application process. 17 22 c. How weekly benefits are calculated and the minimum and 17 23 maximum weekly benefit amount. 17 24 d. Restoration rights. 17 25 e. Nondiscrimination rights. 17 26 f. Confidentiality. 17 27 g. The relationship between employment protection, leave 17 28 from employment, wage replacement benefits under this chapter 17 29 and other laws, and employer policies. 17 30 6. The department shall be authorized to inspect and audit 17 31 an employer's files and records relating to the family leave 17 32 and medical leave insurance program under this chapter. 17 33 Sec. 22. NEW SECTION. 96A.22 Family leave and medical leave 17 34 insurance account. 17 35 1. The family leave and medical leave insurance account 18 1 is created as a separate account in the state treasury in the 18 2 custody of the treasurer of state. 18 3 2. The director shall deposit all receipts from premiums 18 4 imposed under this chapter into such account. Expenditures 18 5 from the account shall be used only for the purposes of the 18 6 family leave and medical leave insurance program and only as 18 7 authorized by the director. 18 8 3. All premiums deposited in the account shall remain in 18 9 the account until expended pursuant to the requirements of this 18 10 chapter. 18 11 Sec. 23. NEW SECTION. 96A.23 Rules. 18 12 The director shall adopt rules pursuant to chapter 17A as 18 13 necessary to implement and administer this chapter. 18 14 Sec. 24. NEW SECTION. 96A.24 Enforcement. 18 15 The director may take any action under the director's 18 16 authority to enforce compliance with this chapter. 18 17 Sec. 25. Section 84A.1, subsection 1, Code 2018, is amended 18 18 to read as follows: 18 19 1. The department of workforce development is created to 18 20 administer the laws of this state relating to unemployment 18 21 compensation insurance, job placement and training, employment 18 22 safety, labor standards,andworkers' compensation, and the 18 23 family leave and medical leave insurance program. 18 24 Sec. 26. DIRECTOR ANALYSIS OF FUNDING THE FAMILY LEAVE 18 25 AND MEDICAL LEAVE INSURANCE PROGRAM AND REPORT TO THE GENERAL 18 26 ASSEMBLY. The director of the department of workforce 18 27 development shall conduct an analysis of the family leave 18 28 and medical leave insurance program as funded pursuant to 18 29 section 96A.12, as enacted in this Act, and of the benefits 18 30 paid pursuant to section 96A.10, as enacted in this Act. The 18 31 director shall determine if the premium rates and benefit 18 32 levels are appropriate to fully fund and maintain the solvency 18 33 of the family leave and medical leave insurance account. 18 34 The director shall submit the director's findings to the 18 35 general assembly pursuant to section 7A.11 no later than 19 1 January 14, 2019. 19 2 EXPLANATION 19 3 The inclusion of this explanation does not constitute agreement with 19 4 the explanation's substance by the members of the general assembly. 19 5 This bill relates to a family leave and medical leave 19 6 insurance program, administered by the director of the 19 7 department of workforce development, that provides for paid, 19 8 job protected leave for certain family leave and medical leave 19 9 reasons for eligible employees of specified employers. 19 10 An employee is eligible for family leave and medical leave 19 11 after working for a covered employer, as defined in the bill, 19 12 for a minimum of 12 consecutive months and a minimum of 1,250 19 13 hours during the 12 consecutive=month period immediately 19 14 preceding the employee's request for leave. Family leave and 19 15 medical leave are defined in the bill. Family leave includes 19 16 leave to care for an immediate family member with a serious 19 17 health condition, to bond with a newborn child or adopted or 19 18 foster child, or for a qualifying exigency for a family member 19 19 as permitted under the federal Family and Medical Leave Act 19 20 of 1993, as amended. Medical leave includes leave due to 19 21 the employee's own serious health condition. Serious health 19 22 condition is defined in the bill. 19 23 The bill provides that an eligible employee may not receive 19 24 more than 12 weeks of family leave, 12 weeks of medical leave, 19 25 or 16 weeks of combined family and medical leave in a defined 19 26 consecutive 12=month period. The defined consecutive 12=month 19 27 period begins on the date of the birth of a child or placement 19 28 of a child for adoption or foster care with an eligible 19 29 employee, or on the first date that an eligible employee takes 19 30 either family leave or medical leave. The minimum duration of 19 31 leave an eligible employee may take is eight consecutive hours. 19 32 An employee is disqualified for family leave and medical 19 33 leave benefits for an absence due to the employee purposefully 19 34 causing injury or sickness to the employee or a family member, 19 35 for an absence caused by an illness or injury due to the 20 1 employee engaging in an illegal act, or an absence due to an 20 2 employer taking disciplinary action against the employee. 20 3 An employee must provide a minimum of 30 days' notice to an 20 4 employer of the employee's intent to take leave for the birth 20 5 of a child or placement of a child for adoption or foster care 20 6 with the employee, or of the employee's intent to take family 20 7 leave or medical leave. If circumstances necessitate that an 20 8 employee's leave begins in less than 30 days the employee must 20 9 give as much notice as is practicable. If an eligible employee 20 10 requests medical leave or family leave, the employee must make 20 11 a reasonable effort to schedule their own medical treatment, or 20 12 their family member's medical treatment, to not unduly disrupt 20 13 the employer's operations. 20 14 The bill requires an eligible employee to file a claim 20 15 for benefits as required by the director. The employee 20 16 must consent to the disclosure of potentially private or 20 17 confidential information to and from the department and the 20 18 employee's employer for the administration of the family leave 20 19 or medical leave. The bill specifies that such information 20 20 is not a public record pursuant to Code section 22.1. The 20 21 employee must attest that the employee has provided notice 20 22 of the employee's intent to take leave to the employee's 20 23 employer. The employee must also authorize the employee's 20 24 health care provider, or the employee's family member's health 20 25 care provider, to complete a certification of a serious health 20 26 condition as required by the director. 20 27 The bill provides for a seven=day waiting period before 20 28 benefits are payable. There is no waiting period for leave for 20 29 the birth of a child or placement of a child for adoption or 20 30 foster care. 20 31 The basis for the calculation of the amount of a family 20 32 leave or medical leave benefit is an eligible employee's weekly 20 33 earnings as defined in the bill. The weekly leave benefit 20 34 amount payable to an employee for any one week is 80 percent 20 35 of the employee's weekly spendable earnings, but shall not 21 1 exceed an amount equal to 200 percent of the statewide average 21 2 weekly wage paid to employees as determined by the department 21 3 of workforce development pursuant to Code section 96.19. The 21 4 minimum weekly leave benefit amount shall be equal to the 21 5 weekly leave benefit amount of a person whose gross weekly 21 6 earnings are 35 percent of the statewide average weekly wage, 21 7 or to the spendable weekly earnings of the employee, whichever 21 8 is less. "Spendable weekly earnings" is defined in the bill as 21 9 the amount remaining after payroll taxes are deducted from an 21 10 employee's gross weekly earnings. 21 11 The department shall send the first benefit payment to an 21 12 eligible employee within 10 days after a properly completed 21 13 weekly claim for benefits is completed by the employee 21 14 and received by the department. If the employee continues 21 15 to submit a properly completed weekly claim, subsequent 21 16 payments are to be made to the employee at least biweekly. 21 17 If an employer, or the department, contests an employee's 21 18 eligibility, benefit payments may be made on a conditional 21 19 basis. The employee is required to pay the benefits back if 21 20 the department later rules that the employee is ineligible to 21 21 receive such benefits. 21 22 The bill provides that the family leave and medical leave 21 23 insurance program shall be funded via employee and employer 21 24 contributions. Beginning on January 1, 2021, and ending 21 25 on December 31, 2022, the department will assess a covered 21 26 employer a premium rate of four=tenths of one percent of an 21 27 employee's weekly wages, subject to a maximum limit of wages 21 28 subject to the assessment, as determined by the director based 21 29 on the maximum wages subject to taxation for social security. 21 30 One=third of the premium is to be used to fund family leave 21 31 insurance benefits and two=thirds of the premium is to be 21 32 used to fund medical leave benefits. The covered employer 21 33 may deduct the full amount of the family leave premium from 21 34 an employee's wage. A covered employer may deduct up to 45 21 35 percent of the medical leave premium and 45 percent of the 22 1 family leave premium from an employee's wage. The employer 22 2 must pay the remaining 55 percent of both the medical leave and 22 3 family leave premiums. An employer may elect to pay all or any 22 4 portion of an employee's share of premiums for family leave or 22 5 medical leave benefits or both. Beginning January 1, 2023, the 22 6 premium rate shall be calculated by the director based on the 22 7 family leave and medical leave insurance account balance ratio 22 8 as of September 30 of the previous calendar year. The premium 22 9 rate is adjusted based on the balance ratio as detailed in the 22 10 bill. If the balance ratio falls below five hundredths of one 22 11 percent the bill requires the director to assess a solvency 22 12 surcharge that is added to the total premium rate assessed to a 22 13 covered employer. The minimum solvency surcharge is one=tenth 22 14 of one percent and the maximum solvency surcharge is six=tenths 22 15 of one percent. 22 16 On September 30 of each year, the bill requires the 22 17 department to average the number of employees reported by an 22 18 employer over the last four completed calendar quarters to 22 19 determine if an employer is a covered employer for the next 22 20 calendar year. 22 21 The bill requires a covered employer to collect all assessed 22 22 premiums and surcharges from the employer's employees through 22 23 payroll deduction and to remit all premiums to the department 22 24 as required by the director. 22 25 An employer may apply for, and the director must grant, a 22 26 waiver of premiums for an employee who is located physically 22 27 outside of the state and not expected to work in the state for 22 28 1,250 or more hours in any consecutive 12=month period. If 22 29 the employee subsequently works 1,250 or more hours within 22 30 the state, the employer and employee are responsible for all 22 31 premiums that should have been collected for such 12=month 22 32 period. 22 33 Self=employed persons may elect to participate in the 22 34 family leave and medical leave insurance program for a 22 35 minimum initial participation period of three years. Any 23 1 subsequent period of participation must be for a minimum of 23 2 one year. A self=employed person must pay the employee and 23 3 employer's portion of the premium assessed by the director. A 23 4 self=employed person who elects to participate in the program 23 5 is eligible for family leave and medical leave benefits 23 6 after working a minimum of 1,250 hours in the consecutive 23 7 12=month period immediately following the self=employed 23 8 person's election to participate in the program. The 23 9 self=employed person may withdraw from the program by providing 23 10 written notice to the director. The director may cancel the 23 11 self=employed person's elective coverage for failure to submit 23 12 the required premiums. 23 13 An eligible employee who takes family leave or medical leave 23 14 is entitled to restoration of employment equal to but not 23 15 greater than that as provided by the federal Family Medical 23 16 Leave Act of 1993 (FMLA), as amended. The bill provides that 23 17 if required under FMLA, an employer must maintain any existing 23 18 health benefits for the duration of an employee's leave. If 23 19 the employer and employee normally share the cost of such, the 23 20 employee remains responsible for paying the employee's share 23 21 of the costs. 23 22 A covered employer must submit reports as required by the 23 23 director and maintain employment records for each employee 23 24 from which the director may obtain information related to an 23 25 employee's family leave or medical leave. Such records shall 23 26 be maintained for 10 years from the date on which an employee 23 27 first takes a family leave or medical leave and shall be open 23 28 for inspection by the director. 23 29 The bill provides that family leave or medical leave shall 23 30 be in addition to leave required under state or federal law 23 31 for sickness or temporary disability due to pregnancy or 23 32 childbirth. The bill requires family leave or medical leave 23 33 taken under this program to be taken concurrently with leave 23 34 taken under FMLA. A covered employer may allow an employee to 23 35 choose to use either accrued sick or vacation benefits or claim 24 1 family leave and medical leave benefits under this bill. An 24 2 employee is prohibited from receiving family leave or medical 24 3 leave benefits at the same time the employee is receiving state 24 4 or federal unemployment, workers' compensation, or disability 24 5 benefits. The bill prohibits discrimination on the basis of 24 6 any state or federally protected category. 24 7 The bill requires the director to administer the family 24 8 leave and medical leave insurance program and to provide 24 9 outreach to ensure that employers and employees are aware of 24 10 the program and the benefits available under such. 24 11 The bill provides that a family leave and medical leave 24 12 insurance account shall be created in the custody of the 24 13 treasurer of state. The director shall deposit all premiums 24 14 collected from employers into such account. The account shall 24 15 only be used for purposes of the family leave and medical leave 24 16 insurance program as authorized by the director. 24 17 The director shall adopt rules pursuant to Code chapter 17A 24 18 as necessary to implement and administer the provisions of the 24 19 bill. The director may take any action under the director's 24 20 authority to enforce compliance with the bill. 24 21 Code section 84A.1(1) is amended to require the department 24 22 of workforce development to administer the laws relating to the 24 23 family leave and medical leave insurance program. 24 24 The director is required to analyze the funding of the 24 25 family leave and medical leave insurance program and the 24 26 benefits payable from the program's account. The director 24 27 shall determine if the premium rates and the benefit levels 24 28 are appropriate to fully fund and maintain the solvency of the 24 29 family leave and medical leave insurance program. The director 24 30 shall submit the director's findings to the general assembly 24 31 no later than January 14, 2019. LSB 5236XS (7) 87 ko/rj
