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SF109 • 2026

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.

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.

Healthcare Labor
Passed Legislature

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

Sponsor
BLAKE, WINCKLER, STAED, BISIGNANO, KNOX, TOWNSEND, DONAHUE, QUIRMBACH, PETERSEN, DOTZLER, WEINER, WAHLS, TRONE GARRIOTT, CELSI and BENNETT
Last action
2025-01-23
Official status
Subcommittee: Driscoll, Sires, and Wahls. S.J. 137 .
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 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.

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.

What This Bill Does

  • 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.

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. 2025-01-23 Iowa Legislature

    Subcommittee: Driscoll, Sires, and Wahls. S.J. 137 .

  2. 2025-01-22 Iowa Legislature

    Introduced, referred to Workforce. S.J. 124 .

Official Summary Text

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.

Current Bill Text

Read the full stored bill text
Senate

File

109

-

Introduced

SENATE

FILE

109

BY

BLAKE

,

WINCKLER

,

STAED

,

BISIGNANO

,

KNOX

,

TOWNSEND

,

DONAHUE

,

QUIRMBACH

,

PETERSEN

,

DOTZLER

,

WEINER

,

WAHLS

,

TRONE

GARRIOTT

,

CELSI

,

and

BENNETT

A

BILL

FOR

An

Act

relating

to

a

family

leave

and

medical

leave

insurance

1

program

that

provides

for

paid,

job-protected

leave

for

2

certain

family

leave

and

medical

leave

reasons

for

eligible

3

employees

of

specified

employers.

4

BE

IT

ENACTED

BY

THE

GENERAL

ASSEMBLY

OF

THE

STATE

OF

IOWA:

5

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S.F.

109

Section

1.

Section

7E.5,

subsection

1,

paragraph

h,

Code

1

2025,

is

amended

to

read

as

follows:

2

h.

The

department

of

workforce

development,

created

3

in

section

84A.1

,

which

has

primary

responsibility

for

4

administering

the

laws

relating

to

unemployment

compensation

5

insurance,

job

placement

and

training,

the

family

leave

and

6

medical

insurance

program,

and

related

matters.

7

Sec.

2.

Section

84A.1,

subsection

1,

Code

2025,

is

amended

8

to

read

as

follows:

9

1.

The

department

of

workforce

development

is

created

to

10

administer

the

laws

of

this

state

relating

to

unemployment

11

compensation

insurance,

job

placement

and

training,

employment

12

safety,

labor

standards,

and

workers’

compensation

the

family

13

leave

and

medical

leave

insurance

program

.

14

Sec.

3.

NEW

SECTION

.

96A.1

Short

title.

15

This

chapter

may

be

cited

as

the

“Iowa

Family

and

Medical

16

Leave

Act”

.

17

Sec.

4.

NEW

SECTION

.

96A.2

Definitions.

18

As

used

in

this

chapter,

unless

the

context

otherwise

19

requires:

20

1.

“Child”

means

a

biological,

adopted,

or

foster

child,

21

a

stepchild,

a

legal

ward,

or

a

child

of

a

person

standing

in

22

loco

parentis,

regardless

of

the

child’s

age

or

dependency

23

status.

24

2.

“Covered

employer”

means

a

private

sector

employer

who

25

has

ten

or

more

employees

for

each

working

day

during

each

of

26

twenty

or

more

calendar

workweeks

in

the

current

or

previous

27

calendar

year,

and

a

public

employer

without

regard

to

the

28

number

of

employees

employed.

29

3.

“Department”

means

the

department

of

workforce

30

development.

31

4.

“Director”

means

the

director

of

the

department

of

32

workforce

development.

33

5.

“Employee”

means

a

natural

person

who

is

employed

in

34

this

state

for

wages

by

an

employer.

“Employee”

also

includes

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a

commission

salesperson

who

takes

orders

or

performs

services

1

on

behalf

of

a

principal

and

who

is

paid

on

the

basis

of

2

commissions

but

does

not

include

persons

who

purchase

for

3

their

own

account

for

resale.

“Employee”

shall

not

include

an

4

independent

contractor,

a

self-employed

person,

or

a

patient

or

5

inmate

employed

by

a

state

or

local

institution

to

which

the

6

patient

or

inmate

has

been

sentenced

or

committed,

or

any

of

7

the

following

persons

engaged

in

agriculture:

8

a.

The

spouse

of

the

employer

and

a

relative

of

either

the

9

employer

or

the

employer’s

spouse

who

resides

on

the

premises

10

of

the

employer.

11

b.

A

person

engaged

in

agriculture

as

an

owner-operator

12

or

tenant-operator,

and

the

spouse

or

a

relative

of

either

13

an

owner-operator

or

a

tenant-operator

who

resides

on

the

14

premises

while

exchanging

labor

with

the

owner-operator

or

the

15

tenant-operator

for

mutual

benefit.

16

c.

A

neighboring

person

engaged

in

agriculture

who

is

17

exchanging

labor

or

other

services.

18

6.

“Employer”

means

the

same

as

defined

in

91A.2.

19

“Employer”

includes

a

temporary

staffing

agency

or

employment

20

agency.

21

7.

“Employment

benefits”

means

all

benefits

provided

or

22

made

available

to

an

employee

by

an

employer,

including

group

23

life

insurance,

health

insurance,

disability

insurance,

sick

24

leave,

annual

leave,

educational

benefits,

and

pensions

except

25

benefits

that

are

provided

by

a

practice

or

written

policy

of

26

an

employer

or

through

an

employee

benefit

plan

as

defined

in

27

29

U.S.C.

§1002(3).

28

8.

“Family

leave”

means

a

leave

taken

from

work

by

an

29

employee

for

any

of

the

following

reasons:

30

a.

To

participate

in

providing

care,

including

physical

or

31

psychological

care,

for

a

family

member

of

the

employee

made

32

necessary

by

a

serious

health

condition

of

the

family

member.

33

b.

To

bond

with

the

employee’s

child

after

the

child’s

34

birth,

or

with

a

child

under

the

age

of

eighteen

placed

with

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the

employee

for

adoption

or

foster

care.

1

c.

Because

of

a

qualifying

exigency

for

a

family

member

as

2

permitted

under

the

federal

Family

and

Medical

Leave

Act

of

3

1993,

as

amended,

and

federal

regulations

as

provided

in

29

4

C.F.R.

§825.126.

5

9.

“Family

member”

means

a

child,

parent,

or

spouse

of

an

6

employee.

7

10.

“Gross

earnings”

means

the

same

as

defined

in

section

8

85.61.

9

11.

“Health

care

provider”

means

a

physician

or

other

10

health

care

practitioner

licensed,

accredited,

registered,

or

11

certified

to

perform

specified

health

care

services

consistent

12

with

state

law.

13

12.

“In

loco

parentis”

means

an

individual

who

has

14

day-to-day

responsibilities

to

care

for

or

financially

support

15

a

child.

16

13.

“Inpatient

care”

means

an

overnight

stay

in

a

hospital,

17

hospice,

or

residential

medical

care

facility,

including

any

18

period

of

incapacity,

or

any

subsequent

treatment

in

connection

19

with

such

inpatient

care.

20

14.

“Medical

leave”

means

a

leave

from

work

taken

by

an

21

employee

made

necessary

by

the

employee’s

own

serious

health

22

condition.

23

15.

“Parent”

means

a

biological,

adoptive,

step,

or

foster

24

father

or

mother,

or

any

other

individual

who

stands

in

25

loco

parentis

to

an

employee

or

who

stood

in

loco

parentis

26

when

the

employee

was

a

child.

“Parent”

does

not

include

a

27

parent-in-law.

28

16.

“Period

of

incapacity”

means

an

inability

to

work,

29

attend

school,

or

perform

other

regular

daily

activities

due

30

to

a

serious

health

condition,

treatment

of

a

serious

health

31

condition,

or

recovery

from

a

serious

health

condition.

32

17.

“Premium”

or

“premiums”

means

the

payments

required

by

33

section

96A.12

and

paid

to

the

department

for

deposit

in

the

34

family

and

medical

leave

insurance

account

pursuant

to

section

35

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96A.22.

1

18.

“Public

employer”

means

the

state

of

Iowa,

its

2

boards,

commissions,

agencies,

departments,

and

its

political

3

subdivisions

including

school

districts

and

other

special

4

purpose

districts.

5

19.

“Serious

health

condition”

means

an

illness,

injury,

6

impairment,

physical

condition,

or

mental

condition

that

7

involves

inpatient

care

in

a

hospital,

hospice,

medical

care

8

facility,

or

continued

treatment

or

continuing

supervision

by

9

a

health

care

provider.

10

20.

“Spendable

weekly

earnings”

means

the

amount

remaining

11

after

payroll

taxes

are

deducted

from

an

employee’s

gross

12

weekly

earnings.

13

21.

“Spouse”

means

the

person

with

whom

an

individual

has

14

entered

into

marriage

as

defined

or

recognized

under

state

law

15

for

purposes

of

marriage

in

the

state

in

which

the

marriage

16

was

entered

into

or,

in

the

case

of

a

marriage

entered

into

17

outside

of

any

state,

if

the

marriage

is

valid

in

the

place

18

where

the

marriage

was

entered

into

and

the

marriage

could

have

19

been

entered

into

in

at

least

one

state,

including

a

common

law

20

marriage.

21

22.

“Wages”

means

the

same

as

defined

in

section

91A.2.

22

Sec.

5.

NEW

SECTION

.

96A.3

Benefit

eligibility.

23

An

employee

is

eligible

for

family

leave

and

medical

leave

24

as

provided

in

this

chapter

after

working

for

a

covered

25

employer

for

both

a

minimum

of

twelve

consecutive

months

26

immediately

preceding

the

employee’s

request

for

leave

and

a

27

minimum

of

one

thousand

two

hundred

fifty

hours

during

that

28

twelve-consecutive-month

period.

29

Sec.

6.

NEW

SECTION

.

96A.4

Leave

entitlement

for

a

defined

30

twelve-month

period.

31

1.

An

employee

is

entitled

to

a

maximum

of

twelve

weeks

32

of

family

leave

during

a

defined

period

of

twelve

consecutive

33

months.

34

2.

An

employee

is

entitled

to

a

maximum

of

twelve

weeks

of

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medical

leave

during

a

defined

period

of

twelve

consecutive

1

months

unless

the

employee

experiences

a

serious

health

2

condition,

which

is

pregnancy-related,

that

results

in

a

longer

3

period

of

incapacity

in

which

case

any

extended

medical

leave

4

beyond

twelve

weeks

shall

conform

with

section

216.6.

5

3.

An

employee

is

entitled

to

a

maximum

combined

total

of

6

paid

family

leave

and

medical

leave

of

sixteen

weeks

during

a

7

defined

period

of

twelve

consecutive

months.

8

4.

An

employee

is

not

entitled

to

family

leave

or

medical

9

leave

of

less

than

eight

consecutive

hours.

10

Sec.

7.

NEW

SECTION

.

96A.5

Calculating

the

defined

11

twelve-month

period.

12

The

defined

period

of

twelve

consecutive

months

for

13

calculation

of

an

eligible

employee’s

family

leave

or

medical

14

leave

entitlement

begins

on

any

of

the

following:

15

1.

The

date

of

birth

of

the

employee’s

child,

or

the

date

16

of

placement

of

a

child

for

adoption

or

foster

care

with

the

17

employee.

18

2.

The

first

day

of

family

leave

that

the

employee

takes

for

19

a

family

member’s

serious

health

condition

or

a

family

member’s

20

qualifying

exigency.

21

3.

The

first

day

of

the

employee’s

medical

leave.

22

Sec.

8.

NEW

SECTION

.

96A.6

Disqualification

from

leave

23

entitlement.

24

An

eligible

employee

is

disqualified

for

family

leave

or

25

medical

leave

benefits

under

this

chapter

for

any

of

the

26

following

reasons:

27

1.

An

absence

due

to

the

employee’s

willful

intention

to

28

injure

or

cause

a

sickness

to

the

employee

or

to

the

employee’s

29

family

member.

30

2.

An

injury

or

sickness

caused

by

the

employee

engaging

in

31

an

illegal

act.

32

3.

The

employee’s

absence

due

to

an

employer

taking

any

33

disciplinary

action

against

the

employee.

34

Sec.

9.

NEW

SECTION

.

96A.7

Employee

notice

to

employer

of

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intent

to

take

leave.

1

1.

If

leave

for

the

birth

of

a

child

or

placement

of

a

child

2

for

adoption

or

foster

care

with

an

employee

is

foreseeable,

3

the

employee

shall

provide

written

notice

to

the

employer

not

4

less

than

thirty

calendar

days

before

the

date

the

leave

is

to

5

begin.

6

2.

If

the

birth

of

a

child

or

placement

of

a

child

for

7

adoption

or

foster

care

with

an

employee

requires

leave

to

8

begin

in

less

than

thirty

calendar

days,

the

employee

shall

9

provide

written

notice

to

the

employer

as

far

in

advance

as

is

10

practicable.

11

3.

If

leave

for

a

family

member’s

serious

health

condition

12

or

an

employee’s

serious

health

condition

is

foreseeable

based

13

on

planned

medical

treatment,

the

employee

shall

do

all

of

the

14

following:

15

a.

Make

a

reasonable

effort

to

schedule

such

medical

16

treatment,

subject

to

the

recommendation

of

the

employee’s

or

17

family

member’s

health

care

provider

as

appropriate,

to

not

18

unduly

disrupt

the

operations

of

the

employer.

19

b.

Provide

the

employer

with

not

less

than

thirty

calendar

20

days

prior

written

notice

of

the

employee’s

intention

to

take

21

leave

for

a

family

member’s

serious

health

condition

or

the

22

employee’s

serious

health

condition.

23

4.

If

leave

for

a

family

member’s

serious

health

condition

24

or

an

employee’s

serious

health

condition

is

not

foreseeable,

25

the

employee

shall

provide

written

notice

to

the

employer

as

26

far

in

advance

as

is

practicable.

27

Sec.

10.

NEW

SECTION

.

96A.8

Weekly

claim,

certification,

28

and

verification.

29

Beginning

January

1,

2030,

family

leave

or

medical

leave

30

insurance

benefits

are

payable

to

an

employee

during

a

period

31

in

which

the

employee

is

unable

to

perform

the

employee’s

32

regular

or

customary

work

because

the

employee

is

on

family

33

leave

or

medical

leave

if

the

employee

meets

all

of

the

34

following

requirements:

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1.

The

employee

files

a

weekly

claim

for

benefits

with

the

1

department

as

required

per

rules

adopted

by

the

director.

2

2.

The

employee

meets

the

eligibility

requirements

pursuant

3

to

section

96A.3

or

the

elective

coverage

requirements

pursuant

4

to

section

96A.14.

5

3.

The

employee

consents

to

the

disclosure

of

information

or

6

records

that

may

be

deemed

private

or

confidential

under

state

7

or

federal

law.

Disclosure

of

such

information

and

records

by

8

another

state

agency

or

an

employer

to

the

department

shall

9

be

solely

for

purposes

related

to

the

administration

of

this

10

chapter.

Information

and

records

disclosed

by

an

employee

11

under

this

chapter

shall

not

be

public

records

as

defined

in

12

section

22.1.

13

4.

The

employee

authorizes

the

health

care

provider

of

the

14

employee’s

family

member

or

of

the

employee,

as

applicable,

to

15

complete

a

certification

of

a

serious

health

condition

in

a

16

form

as

required

by

the

director.

17

5.

The

employee

attests

that

written

notice

has

been

18

provided

to

the

employee’s

employer

per

section

96A.7.

19

6.

The

employee

provides

documentation

of

a

family

member’s

20

qualifying

exigency

if

requested

by

the

employee’s

employer.

21

Sec.

11.

NEW

SECTION

.

96A.9

Waiting

period

for

leave

22

benefits.

23

Family

leave

or

medical

leave

insurance

benefits

shall

be

24

payable

to

an

eligible

employee

following

a

waiting

period

25

consisting

of

the

first

seven

calendar

days

of

the

employee’s

26

leave.

However,

no

such

waiting

period

applies

to

a

leave

for

27

the

birth

or

placement

of

a

child

with

an

eligible

employee.

28

Sec.

12.

NEW

SECTION

.

96A.10

Weekly

leave

benefit

amount.

29

1.

The

basis

for

the

calculation

of

a

leave

benefit

amount

30

shall

be

the

weekly

earnings

of

an

eligible

employee

on

the

31

day

the

leave

is

granted.

“Weekly

earnings”

means

the

gross

32

earnings

of

an

employee

to

which

the

employee

would

have

been

33

entitled

had

the

employee

worked

the

employee’s

customary

hours

34

for

the

full

pay

period

in

which

the

employee

is

on

family

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leave

or

medical

leave.

Weekly

earnings

shall

be

computed

as

1

follows,

rounded

to

the

nearest

dollar,

for

an

employee

who

is

2

paid

on

the

following

basis:

3

a.

On

a

weekly

pay

period

basis,

the

weekly

earnings

are

the

4

weekly

gross

earnings.

5

b.

On

a

biweekly

pay

period

basis,

the

weekly

earnings

are

6

one-half

of

the

biweekly

gross

earnings.

7

c.

On

a

semimonthly

pay

period

basis,

the

weekly

earnings

8

are

the

semimonthly

gross

earnings

multiplied

by

twenty-four

9

and

then

divided

by

fifty-two.

10

d.

On

a

monthly

pay

period

basis,

the

weekly

earnings

11

are

the

monthly

gross

earnings

multiplied

by

twelve

and

then

12

divided

by

fifty-two.

13

e.

On

a

yearly

pay

period

basis,

the

weekly

earnings

shall

14

be

the

yearly

earnings

divided

by

fifty-two.

15

f.

On

a

daily

or

hourly

basis,

or

by

the

output

of

an

16

employee,

the

weekly

earnings

shall

be

computed

by

dividing

by

17

thirteen

the

earnings,

including

shift

differential

pay

but

18

not

including

overtime

or

premium

pay,

of

the

employee

earned

19

in

the

last

completed

period

of

thirteen

consecutive

calendar

20

weeks

immediately

preceding

the

start

day

of

the

leave.

If

21

the

employee

was

absent

from

employment

for

personal

reasons

22

during

part

of

the

thirteen

calendar

weeks

preceding

the

23

leave,

the

employee’s

weekly

earnings

shall

be

the

amount

the

24

employee

would

have

earned

had

the

employee

worked

when

work

25

was

available

to

other

employees

of

the

employer

in

a

similar

26

occupation.

A

week

that

does

not

fairly

reflect

the

employee’s

27

customary

earnings

shall

be

replaced

by

the

closest

previous

28

week

with

earnings

that

fairly

represent

the

employee’s

29

customary

earnings.

30

2.

If

on

the

date

that

an

employee’s

leave

begins

the

31

employee’s

hourly

earnings

cannot

be

ascertained,

the

earnings

32

for

the

purpose

of

calculating

the

benefit

amount

shall

be

the

33

usual

earnings

for

similar

services

where

such

services

are

34

rendered

by

paid

employees.

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3.

If

an

employee

earns

either

no

wages,

or

less

than

the

1

usual

weekly

earnings

of

a

regular

full-time

adult

laborer

2

in

the

line

of

work

in

which

the

employee

is

working

in

that

3

locality,

the

weekly

earnings

shall

be

one-fiftieth

of

the

4

total

earnings

that

the

employee

has

earned

from

all

employment

5

during

the

twelve

consecutive

calendar

months

immediately

6

preceding

the

date

that

the

employee’s

leave

begins.

7

4.

The

weekly

leave

benefit

amount

payable

to

an

employee

8

for

any

one

week

shall

be

eighty

percent

of

the

employee’s

9

spendable

weekly

earnings,

but

shall

not

exceed

an

amount

equal

10

to

two

hundred

percent

of

the

statewide

average

weekly

wage

11

as

calculated

by

the

department

pursuant

to

section

96.1A

and

12

in

effect

on

the

date

that

the

employee’s

leave

commences.

13

However,

the

weekly

leave

benefit

amount

shall

be

a

minimum

14

equal

to

the

lesser

of

the

weekly

leave

benefit

amount

of

a

15

person

whose

gross

weekly

earnings

are

thirty-five

percent

of

16

the

statewide

average

weekly

wage,

or

to

the

spendable

weekly

17

earnings

of

the

employee.

18

Sec.

13.

NEW

SECTION

.

96A.11

Payment

of

benefits

to

an

19

eligible

employee.

20

1.

The

department

shall

send

the

first

benefit

payment

to

21

an

employee

within

ten

calendar

days

after

the

first

properly

22

completed

weekly

claim

from

the

employee

is

received

by

23

the

department.

Subsequent

payments

shall

be

sent

at

least

24

biweekly

to

an

eligible

employee

if

a

properly

completed

weekly

25

claim

from

the

employee

is

received

by

the

department.

26

2.

If

an

employer

contests

an

employee’s

initial

claim

27

for

family

leave

or

medical

leave

benefits,

the

employer

must

28

notify

the

employee

and

the

department

in

the

manner

prescribed

29

by

the

director

within

ten

calendar

days

of

the

employer’s

30

receipt

of

notice

from

the

department

of

the

employee’s

filing

31

of

a

claim

for

benefits

pursuant

to

section

96A.21,

subsection

32

3.

Failure

to

timely

contest

an

initial

application

shall

33

constitute

a

waiver

of

objection

to

the

family

leave

or

medical

34

leave

claim.

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3.

If

the

department

or

the

employee’s

employer

contests

1

an

employee’s

eligibility

for

benefits

after

the

employee

2

begins

receiving

benefits,

the

employee

shall

continue

to

3

be

paid

benefits

conditionally

for

any

weeks

for

which

the

4

employee

files

a

claim

for

benefits.

The

employee’s

right

to

5

retain

such

benefit

payments

shall

be

conditioned

upon

the

6

department’s

finding

that

the

employee

is

eligible

for

such

7

benefit

payments.

8

a.

At

an

employee’s

request,

the

department

shall

hold

9

conditional

benefit

payments

until

the

department

resolves

the

10

employee’s

eligibility

status.

11

b.

Payment

shall

be

issued

promptly

for

any

withheld

benefit

12

payments

if

the

department

determines

that

an

employee

is

13

eligible

for

benefits.

14

c.

If

the

department

determines

that

an

employee

is

15

ineligible

for

the

conditionally

paid

benefits,

the

employee

16

shall

repay

the

overpayment

per

rules

adopted

by

the

director.

17

Sec.

14.

NEW

SECTION

.

96A.12

Funding

the

family

leave

and

18

medical

leave

insurance

program.

19

1.

Beginning

on

January

1,

2029,

and

ending

December

20

31,

2030,

the

department

shall

assess

for

each

employee

21

in

employment

with

a

covered

employer

a

premium

rate

of

22

four-tenths

of

one

percent

of

the

employee’s

wages

based

on

the

23

amount

of

the

wages,

subject

to

subsection

6.

24

a.

The

premium

rate

for

family

leave

benefits

shall

be

equal

25

to

one-third

of

the

total

premium

rate.

26

b.

The

premium

rate

for

medical

leave

benefits

shall

be

27

equal

to

two-thirds

of

the

total

premium

rate.

28

2.

For

calendar

year

2031

and

subsequent

calendar

years

the

29

director

shall

determine

the

percentage

of

paid

claims

related

30

to

family

leave

benefits

and

the

percentage

of

paid

claims

31

related

to

medical

leave

benefits

and

adjust

the

premium

rates

32

set

in

subsection

1

by

the

proportional

share

of

claims

paid

33

for

both

types

of

leave.

34

3.

For

family

leave

premiums

a

covered

employer

may

deduct

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up

to

forty-five

percent

of

the

full

amount

of

the

required

1

premiums

from

the

wages

of

each

employee.

The

remaining

2

fifty-five

percent

of

the

required

premiums

shall

be

paid

by

3

the

covered

employer.

4

4.

For

medical

leave

premiums

a

covered

employer

may

deduct

5

up

to

forty-five

percent

of

the

full

amount

of

the

required

6

premiums

from

the

wages

of

each

employee.

The

remaining

7

fifty-five

percent

of

the

required

premiums

shall

be

paid

by

8

the

covered

employer.

9

5.

A

covered

employer

may

elect

to

pay

all

or

any

portion

of

10

its

employees’

share

of

the

premiums

for

family

leave

benefits

11

or

medical

leave

benefits

or

both.

12

6.

The

director

shall

annually

set

a

maximum

limit

on

the

13

amount

of

an

employee’s

wages

that

are

subject

to

a

premium

14

assessment

under

this

section

that

is

equal

to

the

contribution

15

and

benefit

base

for

the

calendar

year

as

determined

by

the

16

United

States

social

security

administration

for

purposes

of

17

26

U.S.C.

§3121(a).

18

7.

For

calendar

year

2031

and

subsequent

calendar

years,

19

the

total

premium

rate

shall

be

based

on

the

family

leave

and

20

medical

leave

insurance

account

balance

ratio

as

of

September

21

30

of

the

previous

year.

The

director

shall

calculate

the

22

account

balance

ratio

by

dividing

the

balance

of

the

family

23

leave

and

medical

leave

insurance

account

by

the

total

wages

24

paid

by

covered

employers.

The

division

shall

be

carried

25

to

the

fourth

decimal

place

with

the

remaining

fraction

26

disregarded

unless

it

amounts

to

five

hundred

thousandths

or

27

more

in

which

case

the

fourth

decimal

place

shall

be

rounded

28

to

the

next

higher

digit.

If

the

family

leave

and

medical

29

leave

insurance

account

balance

ratio

is

any

of

the

following

30

percentages,

the

premium

shall

be

the

following

percentage

of

31

an

employee’s

wages

subject

to

a

premium

assessment:

32

a.

If

the

ratio

is

zero

to

nine

hundredths

of

one

percent,

33

the

premium

shall

be

six-tenths

of

one

percent.

34

b.

If

the

ratio

is

one-tenth

of

one

percent

to

nineteen

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hundredths

of

one

percent,

the

premium

shall

be

five-tenths

of

1

one

percent.

2

c.

If

the

ratio

is

two-tenths

of

one

percent

to

twenty-nine

3

hundredths

of

one

percent,

the

premium

shall

be

four-tenths

of

4

one

percent.

5

d.

If

the

ratio

is

three-tenths

of

one

percent

to

6

thirty-nine

hundredths

of

one

percent,

the

premium

shall

be

7

three-tenths

of

one

percent.

8

e.

If

the

ratio

is

four-tenths

of

one

percent

to

forty-nine

9

hundredths

of

one

percent,

the

premium

shall

be

two-tenths

of

10

one

percent.

11

f.

If

the

ratio

is

five-tenths

of

one

percent

or

greater,

12

the

premium

shall

be

one-tenth

of

one

percent.

13

8.

Beginning

January

1,

2031,

if

the

account

balance

ratio

14

calculated

in

subsection

7

is

below

five

hundredths

of

one

15

percent,

the

director

shall

assess

a

solvency

surcharge

at

16

the

lowest

rate

necessary

to

provide

revenue

to

pay

for

the

17

administrative

and

benefit

costs

of

family

leave

and

medical

18

leave

insurance

for

the

calendar

year.

The

solvency

surcharge

19

shall

be

at

least

one-tenth

of

one

percent

and

no

more

than

20

six-tenths

of

one

percent

and

shall

be

added

to

the

total

21

premium

rate

assessed

to

each

employee

of

a

covered

employer

22

for

family

leave

and

medical

leave

benefits.

23

9.

A

covered

employer

shall

collect

all

required

premiums

24

and

surcharges

from

the

employer’s

employees

through

payroll

25

deductions

and

shall

remit

the

amount

collected

and

the

amount

26

to

be

paid

by

the

employer

to

the

department

as

required

by

27

rules

adopted

by

the

director.

28

10.

On

September

30

of

each

year

the

department

shall

29

average

the

number

of

employees

reported

by

an

employer

over

30

the

last

four

completed

calendar

quarters

to

determine

the

31

number

of

employees

employed

by

the

employer

for

the

purpose

32

of

determining

if

an

employer

shall

be

considered

a

covered

33

employer

for

the

next

calendar

year.

34

Sec.

15.

NEW

SECTION

.

96A.13

Conditional

waiver

of

premium

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for

out-of-state

employee.

1

1.

An

employer

may

file

an

application

with

the

department

2

for

a

conditional

waiver

of

the

payment

of

family

leave

and

3

medical

leave

premiums

assessed

under

section

96A.12

for

an

4

employee

who

meets

all

of

the

following

requirements:

5

a.

The

employee

is

physically

based

outside

of

the

state.

6

b.

The

employee

physically

works

in

the

state

on

a

limited

7

or

temporary

work

schedule.

8

c.

The

employee

is

not

expected

to

physically

work

in

the

9

state

for

one

thousand

two

hundred

fifty

hours

or

more

during

10

any

consecutive

twelve-month

period.

11

2.

The

department

shall

approve

an

application

that

is

12

signed

by

both

the

employee

and

the

employee’s

employer

13

attesting

to

compliance

with

the

requirements

of

subsection

1.

14

3.

If

the

employee

physically

works

in

the

state

for

one

15

thousand

two

hundred

fifty

hours

or

more

in

any

consecutive

16

twelve-month

period,

the

conditional

waiver

shall

expire

and

17

the

employer

and

employee

shall

be

responsible

for

all

premiums

18

pursuant

to

section

96A.12

for

the

consecutive

twelve-month

19

period

in

which

the

employee

worked

one

thousand

two

hundred

20

fifty

hours

or

more.

Upon

submission

of

the

premiums

by

the

21

employer

to

the

department,

the

employee

shall

be

credited

for

22

the

hours

worked

during

that

consecutive

twelve-month

period

23

and

shall

be

eligible

for

benefits

under

this

chapter.

24

Sec.

16.

NEW

SECTION

.

96A.14

Self-employed

persons

elective

25

participation

in

the

family

leave

and

medical

leave

insurance

26

program.

27

1.

A

self-employed

person

electing

to

participate

in

the

28

family

leave

and

medical

leave

insurance

program

shall

be

29

considered

either

an

employer

or

employee

under

this

chapter

30

as

the

context

dictates.

31

2.

For

benefits

payable

beginning

January

1,

2031,

a

32

self-employed

person

may

elect

to

participate

in

the

family

33

leave

and

medical

leave

insurance

program

under

this

chapter

34

if

the

self-employed

person

meets

all

of

the

following

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requirements:

1

a.

The

initial

participation

period

for

the

self-employed

2

person

must

be

a

minimum

of

three

years.

3

b.

Any

subsequent

participation

period

by

the

self-employed

4

person

must

be

for

a

minimum

of

one

year.

5

c.

The

self-employed

person

must

participate

in

both

family

6

leave

and

medical

leave.

7

d.

One

hundred

percent

of

all

premiums

assessed

by

8

the

department

under

section

96A.12

shall

be

paid

by

the

9

self-employed

person.

10

3.

A

self-employed

person

shall

file

a

written

notice

of

11

election

of

elective

coverage

with

the

department

in

the

manner

12

required

by

the

director.

13

4.

A

self-employed

person

shall

be

eligible

for

14

family

leave

and

medical

leave

benefits

after

working

one

15

thousand

two

hundred

fifty

hours

in

the

state

during

the

16

twelve-consecutive-month

period

immediately

following

the

date

17

of

the

written

notice

the

self-employed

person

filed

pursuant

18

to

subsection

3.

19

5.

A

self-employed

person

who

has

elected

coverage

may

20

withdraw

from

coverage

within

thirty

calendar

days

after

the

21

end

of

each

participation

period

pursuant

to

subsection

2,

22

paragraph

“a”

or

“b”

,

by

filing

a

written

notice

of

withdrawal

23

as

required

pursuant

to

the

rules

adopted

by

the

director.

The

24

withdrawal

shall

take

effect

no

sooner

than

thirty

calendar

25

days

after

the

self-employed

person

files

the

notice

of

26

withdrawal.

27

6.

If

a

self-employed

person

fails

to

submit

the

required

28

premium

payments,

the

department

may

cancel

the

person’s

29

elective

coverage.

The

cancellation

shall

be

effective

no

30

sooner

than

thirty

days

from

the

date

of

a

written

notice

31

from

the

department

to

the

self-employed

person

advising

the

32

self-employed

person

of

the

impending

cancellation

of

the

33

self-employed

person’s

elective

coverage.

The

department

shall

34

collect

all

due

and

unpaid

premiums

from

the

self-employed

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person

for

the

remainder

of

the

applicable

participation

period

1

pursuant

to

subsection

2,

paragraph

“a”

or

“b”

.

2

Sec.

17.

NEW

SECTION

.

96A.15

Employment

protection.

3

1.

An

eligible

employee

who

takes

family

leave

or

medical

4

leave

under

this

chapter

is

entitled

to

either

of

the

following

5

on

the

employee’s

return

from

leave:

6

a.

To

be

restored

to

the

same

position

held

by

the

employee

7

when

the

employee’s

leave

commenced.

8

b.

To

be

restored

to

an

equivalent

position

with

equivalent

9

employment

benefits,

pay,

and

other

terms

and

conditions

of

10

employment.

11

2.

As

a

condition

of

restoration

under

subsection

1

for

an

12

employee

who

has

taken

medical

leave,

the

employer

may

apply

13

a

uniform

policy

to

the

employee

that

requires

an

employee

to

14

provide

certification

from

the

employee’s

health

care

provider

15

that

the

employee

is

able

to

resume

work.

16

3.

Taking

leave

under

this

chapter

shall

not

result

in

the

17

loss

of

any

employment

benefits

accrued

by

an

employee

prior

to

18

the

date

on

which

the

employee’s

leave

commenced.

19

4.

This

section

shall

not

be

construed

to

entitle

a

restored

20

employee

to

any

of

the

following:

21

a.

The

accrual

of

any

seniority

or

employment

benefits

22

during

any

period

of

leave.

23

b.

Any

right,

benefit,

or

position

of

employment

other

than

24

any

right,

benefit,

or

position

of

employment

to

which

the

25

employee

would

have

been

entitled

had

the

employee

not

taken

26

leave.

27

5.

This

section

shall

not

be

construed

to

prohibit

an

28

employer

from

requiring

an

employee

on

leave

to

report

29

periodically

to

the

employer

on

the

status

and

intention

of

the

30

employee

to

return

to

work.

31

6.

An

employer

may

deny

restoration

under

this

section

to

32

a

salaried

employee

who

is

among

the

ten

percent

highest-paid

33

employees

employed

by

the

employer

within

seventy-five

miles

34

of

the

facility

at

which

the

employee

is

employed

if

all

of

the

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following

apply:

1

a.

Denial

of

restoration

is

necessary

to

prevent

substantial

2

and

grievous

economic

injury

to

the

operations

of

the

employer.

3

b.

The

employer

notifies

the

employee

of

the

intent

of

the

4

employer

to

deny

restoration

on

such

basis

at

the

time

the

5

employer

determines

such

basis

exists.

6

c.

The

employee

is

on

leave

and

elects

not

to

return

7

to

employment

after

receiving

the

employer’s

notice

of

the

8

employer’s

intent

not

to

restore

the

employee.

9

7.

This

section

shall

not

be

construed

as

providing

an

10

employee

greater

restoration

rights

than

those

required

under

11

the

federal

Family

and

Medical

Leave

Act

of

1993,

as

amended.

12

Sec.

18.

NEW

SECTION

.

96A.16

Maintenance

of

existing

health

13

benefits.

14

If

required

by

the

federal

Family

and

Medical

Leave

15

Act

of

1993,

as

amended,

an

employer

shall

maintain

any

16

existing

health

benefits

of

an

employee

for

the

duration

of

17

an

employee’s

leave

under

this

chapter.

If

the

employer

and

18

the

employee

normally

share

the

cost

of

such

existing

health

19

benefits,

the

employee

shall

remain

responsible

for

the

20

employee’s

share

of

the

cost

of

such.

21

Sec.

19.

NEW

SECTION

.

96A.17

Employer

submission

of

reports

22

and

maintenance

of

records.

23

1.

Pursuant

to

rules

adopted

by

the

director,

an

employer

24

shall

submit

reports

and

furnish

information

related

to

25

the

family

leave

and

medical

leave

insurance

program

to

the

26

director.

27

2.

An

employer

shall

maintain

at

the

employer’s

primary

28

place

of

business

a

record

of

employment

for

each

employee

from

29

which

any

information

needed

by

the

department

for

purposes

of

30

this

chapter

may

be

obtained.

Such

record

shall

be

maintained

31

for

ten

years

from

the

date

on

which

an

eligible

employee

32

applies

for

family

leave

or

medical

leave

under

this

chapter.

33

The

record

shall

be

open

for

inspection

by

the

director

at

all

34

times.

All

personnel

records

and

employee

medical

records

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shall

be

maintained

by

the

employer

in

compliance

with

all

1

applicable

federal

and

state

laws.

2

Sec.

20.

NEW

SECTION

.

96A.18

Coordination

of

family

leave

3

and

medical

leave

with

other

laws

and

with

employer

policies.

4

1.

Family

leave

or

medical

leave

taken

by

an

employee

under

5

this

chapter

shall

be

in

addition

to

any

leave

available

to

6

an

employee

as

required

by

applicable

state

or

federal

law

7

for

sickness

or

temporary

disability

because

of

pregnancy

or

8

childbirth.

9

2.

Family

leave

or

medical

leave

taken

by

an

employee

under

10

this

chapter

shall

be

taken

concurrently

with

any

leave

taken

11

under

the

federal

Family

and

Medical

Leave

Act

of

1993,

as

12

amended.

13

3.

An

employer

may

allow

an

employee

who

has

accrued

14

vacation,

sick,

or

other

paid

time

off

to

choose

to

use

either

15

such

accrued

time

or

to

receive

paid

family

leave

or

medical

16

leave

insurance

benefits

under

this

chapter.

17

Sec.

21.

NEW

SECTION

.

96A.19

Relationship

to

other

state

18

and

federal

benefits.

19

In

any

week

an

employee

is

eligible

to

receive

benefits

under

20

chapter

85,

85A,

85B,

or

96,

or

any

other

applicable

state

or

21

federal

unemployment

compensation,

workers’

compensation,

or

22

disability

insurance

laws,

the

employee

is

disqualified

from

23

receiving

family

leave

or

medical

leave

insurance

benefits

24

under

this

chapter.

25

Sec.

22.

NEW

SECTION

.

96A.20

Discrimination

prohibited.

26

This

chapter

shall

not

be

construed

to

modify

or

affect

any

27

federal,

state,

or

local

law

prohibiting

discrimination

on

the

28

basis

of

age,

race,

creed,

color,

sex,

sexual

orientation,

29

gender

identity,

national

origin,

religion,

disability,

or

30

other

protected

category.

31

Sec.

23.

NEW

SECTION

.

96A.21

Department

to

administer

32

family

leave

and

medical

leave

insurance

program

and

conduct

33

outreach.

34

1.

The

director

shall

establish

and

administer

the

family

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leave

and

medical

leave

insurance

program

and

disburse

family

1

leave

and

medical

leave

benefits

to

an

eligible

employee

as

2

specified

in

this

chapter.

3

2.

The

director

shall

establish

procedures

and

forms

for

4

an

employee

to

file

an

application

for

benefits

under

this

5

chapter.

6

3.

The

department

shall

notify

an

employer

within

five

7

business

days

of

an

employee

filing

a

claim

for

family

leave

or

8

medical

leave

insurance

benefits.

9

4.

Information

and

records

pertaining

to

an

employee

under

10

this

chapter

that

are

maintained

by

the

department

shall

11

be

confidential

and

shall

only

be

available

to

department

12

personnel

in

the

performance

of

official

duties.

13

5.

The

director

shall

develop

and

implement

an

outreach

14

program

to

ensure

that

employers

and

employees

are

aware

of

15

the

family

leave

and

medical

leave

insurance

program

and

are

16

aware

of

the

leave

benefits

available

to

eligible

employees.

17

Outreach

information

shall

explain

in

an

easy-to-understand

18

format

all

of

the

following:

19

a.

Eligibility

requirements.

20

b.

The

application

process.

21

c.

How

weekly

benefits

are

calculated

and

the

minimum

and

22

maximum

weekly

benefit

amount.

23

d.

Restoration

rights.

24

e.

Nondiscrimination

rights.

25

f.

Confidentiality.

26

g.

The

relationship

between

employment

protection,

leave

27

from

employment,

wage

replacement

benefits

under

this

chapter

28

and

other

laws,

and

employer

policies.

29

6.

The

department

shall

be

authorized

to

inspect

and

audit

30

an

employer’s

files

and

records

relating

to

the

family

leave

31

and

medical

leave

insurance

program

under

this

chapter.

32

Sec.

24.

NEW

SECTION

.

96A.22

Family

leave

and

medical

leave

33

insurance

account.

34

1.

The

family

leave

and

medical

leave

insurance

account

35

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is

created

as

a

separate

account

in

the

state

treasury

in

the

1

custody

of

the

treasurer

of

state.

2

2.

The

director

shall

deposit

all

receipts

from

premiums

3

imposed

pursuant

to

sections

96A.12,

96A.13,

and

96A.14

into

4

the

account.

Expenditures

from

the

account

shall

be

used

5

only

for

the

purposes

of

the

family

leave

and

medical

leave

6

insurance

program

and

only

as

authorized

by

the

director.

7

3.

All

premiums

deposited

in

the

account

shall

remain

in

8

the

account

until

expended

pursuant

to

the

requirements

of

this

9

chapter.

10

Sec.

25.

NEW

SECTION

.

96A.23

Rules.

11

The

director

shall

adopt

rules

pursuant

to

chapter

17A

to

12

implement

and

administer

this

chapter.

13

Sec.

26.

NEW

SECTION

.

96A.24

Enforcement.

14

The

director

may

take

any

action

under

the

director’s

15

authority

to

enforce

compliance

with

this

chapter.

16

Sec.

27.

DIRECTOR

ANALYSIS

OF

FUNDING

THE

FAMILY

LEAVE

17

AND

MEDICAL

LEAVE

INSURANCE

PROGRAM

AND

REPORT

TO

THE

GENERAL

18

ASSEMBLY.

19

1.

The

director

of

the

department

of

workforce

development

20

shall

conduct

an

analysis

of

the

family

leave

and

medical

21

leave

insurance

program

as

funded

pursuant

to

section

96A.12,

22

as

enacted

in

this

Act,

and

of

the

benefits

paid

pursuant

23

to

section

96A.10,

as

enacted

in

this

Act.

The

director

24

shall

determine

if

the

premium

rates

and

benefit

levels

are

25

appropriate

to

fully

fund

and

maintain

the

solvency

of

the

26

family

leave

and

medical

leave

insurance

account.

27

2.

The

director

shall

submit

the

director’s

findings

to

28

the

general

assembly

pursuant

to

section

7A.11

no

later

than

29

January

12,

2026.

30

EXPLANATION

31

The

inclusion

of

this

explanation

does

not

constitute

agreement

with

32

the

explanation’s

substance

by

the

members

of

the

general

assembly.

33

This

bill

relates

to

a

family

leave

and

medical

leave

34

insurance

program

(program),

administered

by

the

director

of

35

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the

department

of

workforce

development,

that

provides

for

1

paid,

job-protected

leave

for

certain

family

leave

and

medical

2

leave

reasons

for

eligible

employees

of

specified

employers.

3

An

employee

is

eligible

for

family

leave

and

medical

leave

4

after

working

for

a

covered

employer,

as

defined

in

the

bill,

5

for

a

minimum

of

12

consecutive

months

and

a

minimum

of

1,250

6

hours

during

the

12

consecutive-month

period

immediately

7

preceding

the

employee’s

request

for

leave.

“Family

leave”

and

8

“medical

leave”

are

defined

in

the

bill.

Family

leave

includes

9

leave

to

care

for

an

immediate

family

member

with

a

serious

10

health

condition,

to

bond

with

a

newborn

child

or

adopted

or

11

foster

child,

or

for

a

qualifying

exigency

for

a

family

member

12

as

permitted

under

the

federal

Family

and

Medical

Leave

Act

of

13

1993,

as

amended

(FMLA).

Medical

leave

includes

leave

due

to

14

the

employee’s

own

serious

health

condition.

“Serious

health

15

condition”

is

defined

in

the

bill.

16

The

bill

provides

that

an

eligible

employee

may

not

receive

17

more

than

12

weeks

of

family

leave,

12

weeks

of

medical

leave,

18

or

16

weeks

of

combined

family

and

medical

leave

in

a

defined

19

consecutive

12-month

period.

The

defined

consecutive

12-month

20

period

begins

on

the

date

of

the

birth

of

a

child

or

placement

21

of

a

child

for

adoption

or

foster

care

with

an

eligible

22

employee,

or

on

the

first

date

that

an

eligible

employee

takes

23

either

family

leave

or

medical

leave.

The

minimum

duration

of

24

leave

an

eligible

employee

may

take

is

eight

consecutive

hours.

25

The

bill

disqualifies

an

employee

from

family

leave

and

26

medical

leave

benefits

under

circumstances

detailed

in

the

27

bill.

28

An

employee

must

provide

a

minimum

of

30

days’

notice

29

to

an

employer

of

the

employee’s

intent

to

take

leave.

If

30

circumstances

require

an

employee’s

leave

to

begin

in

less

31

than

30

days,

the

employee

must

give

as

much

notice

as

is

32

practicable.

If

an

eligible

employee

requests

medical

leave

33

or

family

leave,

the

employee

must

make

a

reasonable

effort

to

34

schedule

their

own,

or

their

family

member’s,

medical

treatment

35

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to

not

unduly

disrupt

the

employer’s

operations.

1

The

bill

requires

an

eligible

employee

to

file

a

claim

2

for

benefits

as

required

by

the

director.

The

employee

3

must

consent

to

the

disclosure

of

private

or

confidential

4

information

to

and

from

the

department,

and

the

employee’s

5

employer,

for

administration

of

the

leave.

The

bill

specifies

6

that

such

information

is

not

a

public

record

pursuant

to

Code

7

section

22.1.

The

employee

must

attest

that

the

employee

has

8

provided

notice

of

intent

to

take

leave

to

the

employee’s

9

employer.

The

employee

must

also

authorize

the

employee’s,

10

or

the

employee’s

family

member’s

health

care

provider,

to

11

complete

a

certification

of

a

serious

health

condition.

12

The

bill

provides

for

a

seven-day

waiting

period

before

13

benefits

are

payable.

There

is

no

waiting

period

for

benefits

14

for

leave

for

the

birth

of

a

child

or

placement

of

a

child

for

15

adoption

or

foster

care.

16

The

basis

for

the

calculation

of

the

amount

of

a

family

17

leave

or

medical

leave

benefit

is

an

eligible

employee’s

weekly

18

earnings

as

defined

in

the

bill.

The

weekly

leave

benefit

19

amount

payable

to

an

employee

is

detailed

in

the

bill.

20

The

department

must

send

the

first

benefit

payment

to

an

21

eligible

employee

within

10

days

after

a

properly

completed

22

weekly

claim

for

benefits

is

received

by

the

department.

If

23

the

employee

continues

to

submit

a

properly

completed

weekly

24

claim,

subsequent

payments

are

to

be

made

at

least

biweekly.

25

If

an

employer,

or

the

department,

contests

an

employee’s

26

eligibility,

benefit

payments

may

be

made

on

a

conditional

27

basis.

The

employee

is

required

to

pay

the

benefits

back

if

28

the

department

later

rules

that

the

employee

is

ineligible

for

29

the

benefits.

30

The

bill

provides

that

the

program

shall

be

funded

via

31

employee

and

employer

contributions.

Beginning

on

January

1,

32

2029,

and

ending

on

December

31,

2030,

the

department

must

33

assess

a

covered

employer

a

premium

rate

of

four-tenths

of

one

34

percent

of

an

employee’s

weekly

wages,

subject

to

a

maximum

as

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determined

by

the

director

based

on

the

maximum

wages

subject

1

to

taxation

for

social

security.

One-third

of

the

premium

2

is

to

be

used

to

fund

family

leave

insurance

benefits

and

3

two-thirds

of

the

premium

is

to

be

used

to

fund

medical

leave

4

benefits.

A

covered

employer

may

deduct

up

to

45

percent

of

5

the

medical

leave

premium

and

45

percent

of

the

family

leave

6

premium

from

an

employee’s

wage.

The

employer

must

pay

the

7

remaining

55

percent

of

both

the

medical

leave

and

family

8

leave

premiums,

and

may

elect

to

pay

all

or

any

portion

of

its

9

employees’

share

of

such

premiums.

Beginning

January

1,

2031,

10

the

premium

rate

shall

be

calculated

by

the

director

based

on

11

the

family

leave

and

medical

leave

insurance

account

balance

12

ratio

as

of

September

30

of

the

previous

calendar

year.

The

13

premium

rate

is

adjusted

based

on

the

balance

ratio

as

detailed

14

in

the

bill.

15

On

September

30

of

each

year,

the

bill

requires

the

16

department

to

average

the

number

of

employees

reported

by

an

17

employer

over

the

last

four

completed

calendar

quarters

to

18

determine

if

the

employer

is

a

covered

employer

for

the

next

19

calendar

year.

20

The

bill

requires

a

covered

employer

to

collect

all

assessed

21

premiums

and

surcharges

from

the

employer’s

employees

through

22

payroll

deduction

and

to

remit

all

premiums

to

the

department

23

as

required

by

the

director.

24

An

employer

may

apply

for,

and

the

director

must

grant,

a

25

waiver

of

premiums

for

an

employee

who

is

located

physically

26

outside

of

the

state

and

not

expected

to

work

in

the

state

for

27

1,250

or

more

hours

in

any

consecutive

12-month

period.

If

28

the

employee

subsequently

works

1,250

or

more

hours

within

29

the

state,

the

employer

and

employee

are

responsible

for

all

30

premiums

that

should

have

been

collected.

31

Self-employed

persons

may

elect

to

participate

in

the

32

program

as

detailed

in

the

bill.

33

An

eligible

employee

who

takes

family

leave

or

medical

leave

34

is

entitled

to

restoration

of

employment

equal

to

but

not

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greater

than

that

provided

by

FMLA.

The

bill

provides

that

if

1

required

under

FMLA,

an

employer

must

maintain

any

existing

2

health

benefits

during

an

employee’s

leave.

If

the

employer

3

and

employee

normally

share

the

cost

of

such,

the

employee

is

4

responsible

for

paying

the

employee’s

share

of

the

costs.

5

A

covered

employer

must

submit

reports

as

required

by

the

6

director

and

maintain

employment

records

for

each

employee

7

from

which

the

director

may

obtain

information

related

to

an

8

employee’s

leave.

Such

records

must

be

maintained

for

10

9

years.

10

The

bill

provides

that

family

leave

or

medical

leave

shall

11

be

in

addition

to

leave

required

under

state

or

federal

law

12

for

sickness

or

temporary

disability

due

to

pregnancy

or

13

childbirth.

The

bill

requires

family

leave

or

medical

leave

14

taken

under

this

program

to

be

taken

concurrently

with

leave

15

taken

under

FMLA.

A

covered

employer

may

allow

an

employee

16

to

choose

to

use

either

accrued

sick

or

vacation

benefits,

or

17

family

leave

and

medical

leave

benefits.

An

employee

cannot

18

receive

family

or

medical

leave

benefits

at

the

same

time

the

19

employee

is

receiving

state

or

federal

unemployment,

workers’

20

compensation,

or

disability

benefits.

The

bill

prohibits

21

discrimination

on

the

basis

of

any

state

or

federally

protected

22

category.

23

The

bill

requires

the

director

to

administer

the

program

and

24

to

provide

outreach

to

ensure

that

employers

and

employees

are

25

aware

of

the

program

and

the

benefits

available

under

such.

26

The

bill

provides

that

a

family

leave

and

medical

leave

27

insurance

account

shall

be

created

in

the

custody

of

the

28

treasurer

of

state.

The

director

shall

deposit

all

premiums

29

collected

from

employers

into

such

account

and

the

account

can

30

only

be

used

for

the

program

as

authorized

by

the

director.

31

The

bill

requires

the

director

to

adopt

rules

to

implement

32

and

administer

the

provisions

of

the

bill.

The

director

may

33

take

any

action

under

the

director’s

authority

to

enforce

34

compliance

with

the

bill.

35

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The

director

is

required

to

analyze

the

funding

of

the

1

program

and

the

benefits

payable

from

the

program’s

account.

2

The

director

shall

determine

if

the

premium

rates

and

the

3

benefit

levels

are

appropriate

to

fully

fund

and

maintain

the

4

solvency

of

the

program.

The

director

must

submit

the

findings

5

to

the

general

assembly

no

later

than

January

12,

2026.

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