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HF673 • 2026

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.

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.

Labor
Passed Legislature

This bill passed both chambers and reached final enrollment, even if later executive action is not shown here.

Sponsor
COOLING, WILBURN, JAMES, LEVIN, B. MEYER, KRESSIG, BAGNIEWSKI, MADISON, CROKEN, R. JOHNSON, AMOS JR., SRINIVAS, EHLERT, OLSON, SCHOLTEN, WESSEL-KROESCHELL and NIELSEN
Last action
2025-02-28
Official status
Introduced, referred to Labor and Workforce. H.J. 477 .
Effective date
Not listed

Plain English Breakdown

Using official source text because the generated explanation was unavailable or could not be confirmed against the official bill text.

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.

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.

What This Bill Does

  • 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.

Limits and Unknowns

  • This entry is temporarily using official source text because the generated explanation could not be confirmed against the official bill text during the last sync.

Bill History

  1. 2025-02-28 Iowa Legislature

    Introduced, referred to Labor and Workforce. H.J. 477 .

Official Summary Text

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.

Current Bill Text

Read the full stored bill text
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:

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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

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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

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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

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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

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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.

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