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Senate
File
509
-
Introduced
SENATE
FILE
509
BY
TOWNSEND
A
BILL
FOR
An
Act
relating
to
employment
status
and
employment
benefits
1
and
including
applicability
provisions.
2
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
3
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Section
1.
NEW
SECTION
.
85.27A
Continuation
of
health
1
insurance.
2
1.
If
an
employee
is
unable
to
return
to
work
due
to
an
3
injury
for
which
a
claim
arises
under
chapter
10A,
subchapter
4
III,
this
chapter,
or
chapter
85A
or
85B,
and
if
the
employer
5
provided
the
employee
with
health
insurance
as
of
the
time
6
the
injury
occurred,
the
employer
shall
continue
to
provide
7
the
employee
with
health
insurance
on
the
same
terms
for
at
8
least
six
months
beginning
on
the
day
after
the
employee
leaves
9
employment.
10
2.
If
the
employer
does
not
comply
with
subsection
1,
the
11
employer
shall
be
liable
to
the
employee
for
reimbursement
for
12
any
medical
costs
incurred
by
the
employee
that
would
have
13
been
covered
by
the
health
insurance
required
under
subsection
14
1.
Any
dispute
as
to
the
extent
or
amount
of
such
liability
15
may
be
referred
by
the
employee
or
employer
to
the
workers’
16
compensation
commissioner
for
resolution.
17
3.
Each
employer
shall
include
the
employer’s
policies
or
18
procedures
for
compliance
with
this
section
in
any
employment
19
contract,
employee
handbook,
or
offer
of
employment
provided
by
20
the
employer.
21
4.
This
section
applies
to
employers
with
fifteen
or
more
22
employees.
23
Sec.
2.
Section
85.61,
subsection
12,
paragraph
a,
24
subparagraph
(3),
unnumbered
paragraph
1,
Code
2025,
is
amended
25
to
read
as
follows:
26
A
real
estate
agent
who
does
not
provide
the
services
of
an
27
independent
contractor.
For
the
purposes
of
this
subparagraph,
28
a
real
estate
agent
is
an
independent
contractor
if
the
real
29
estate
agent
meets
the
definition
provided
in
paragraph
“c”
,
30
subparagraph
(2)
or
if
the
real
estate
agent
is
licensed
by
the
31
Iowa
real
estate
commission
as
a
salesperson
and
both
of
the
32
following
apply:
33
Sec.
3.
Section
85.61,
subsection
12,
paragraph
c,
34
subparagraph
(2),
Code
2025,
is
amended
to
read
as
follows:
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(2)
(a)
An
independent
contractor.
For
purposes
of
this
1
subparagraph,
“independent
contractor”
means
an
individual
2
performing
work
to
whom
all
of
the
following
apply:
3
(i)
The
individual
is
free
from
control
or
direction
by
the
4
employer
over
the
performance
of
the
individual’s
services.
5
(ii)
The
individual’s
service
is
either
outside
the
usual
6
course
of
the
business
of
the
employer
or
is
performed
outside
7
of
all
the
places
of
business
of
the
employer.
8
(iii)
The
individual
is
customarily
engaged
in
an
9
independently
established
trade,
occupation,
profession,
or
10
business.
11
(b)
For
purposes
of
this
definition,
an
employer
shall
have
12
the
burden
to
establish
that
an
individual
is
an
independent
13
contractor
and
not
a
worker
or
employee.
14
Sec.
4.
Section
85.61,
subsection
12,
paragraph
c,
15
subparagraph
(3),
subparagraph
division
(b),
unnumbered
16
paragraph
1,
Code
2025,
is
amended
to
read
as
follows:
17
An
owner-operator
who,
as
an
individual
or
partner,
or
18
shareholder
of
a
corporate
owner-operator,
owns
a
vehicle
19
licensed
and
registered
as
a
truck,
road
tractor,
or
truck
20
tractor
by
a
governmental
agency
,
is
an
independent
contractor
21
if
the
owner-operator
meets
the
definition
provided
in
22
subparagraph
(2)
or
while
performing
services
in
the
operation
23
of
the
owner-operator’s
vehicle
if
all
of
the
following
24
conditions
are
substantially
present:
25
Sec.
5.
Section
91A.2,
subsection
3,
paragraph
c,
Code
2025,
26
is
amended
to
read
as
follows:
27
c.
For
purposes
of
this
chapter
,
“employee”
does
not
28
include
an
independent
contractor
as
defined
in
section
85.61,
29
subsection
12,
paragraph
“c”
,
subparagraph
(2),
or
as
described
30
in
section
85.61,
subsection
12
,
paragraph
“c”
,
subparagraph
31
(3).
32
Sec.
6.
Section
91D.1,
subsection
4,
Code
2025,
is
amended
33
to
read
as
follows:
34
4.
For
purposes
of
this
chapter
,
“employee”
does
not
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include
an
independent
contractor
as
defined
in
section
85.61,
1
subsection
12,
paragraph
“c”
,
subparagraph
(2),
or
as
described
2
in
section
85.61,
subsection
12
,
paragraph
“c”
,
subparagraph
3
(3).
4
Sec.
7.
Section
96.1A,
subsection
15,
Code
2025,
is
amended
5
to
read
as
follows:
6
15.
“Employing
unit”
means
any
individual
or
type
7
of
organization,
including
this
state
and
its
political
8
subdivisions,
state
agencies,
boards,
commissions,
and
9
instrumentalities
thereof,
any
partnership,
association,
10
trust,
estate,
joint
stock
company,
insurance
company
or
11
corporation,
whether
domestic
or
foreign,
or
the
receiver,
12
trustee
in
bankruptcy,
trustee
or
successor
thereof,
or
13
the
legal
representative
of
a
deceased
person,
which
has
or
14
subsequent
to
January
1,
1936,
had
in
its
employ
one
or
more
15
individuals
performing
services
for
it
within
this
state.
16
All
individuals
performing
services
within
this
state
for
17
any
employing
unit
which
that
maintains
two
or
more
separate
18
establishments
within
this
state
shall
be
deemed
to
be
employed
19
by
a
single
employing
unit
for
all
the
purposes
of
this
20
chapter
.
Whenever
any
employing
unit
contracts
with
or
has
21
under
it
any
contractor
or
subcontractor
for
any
work
which
22
that
is
part
of
its
usual
trade,
occupation,
profession,
or
23
business,
unless
the
employing
unit
as
well
as
each
such
24
contractor
or
subcontractor
is
an
employer
by
reason
of
25
subsection
14
or
section
96.8,
subsection
3
,
the
employing
26
unit
shall
for
all
the
purposes
of
this
chapter
be
deemed
to
27
employ
each
individual
in
the
employ
of
each
such
contractor
28
or
subcontractor
for
each
day
during
which
such
individual
29
is
engaged
in
performing
such
work;
except
that
each
such
30
contractor
or
subcontractor
who
is
an
employer
by
reason
of
31
subsection
14
or
section
96.8,
subsection
3
,
shall
alone
be
32
liable
for
the
contributions
measured
by
wages
payable
to
33
individuals
in
the
contractor’s
or
subcontractor’s
employ,
and
34
except
that
any
employing
unit
who
shall
become
liable
for
and
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pay
contributions
with
respect
to
individuals
in
the
employ
of
1
any
such
contractor
or
subcontractor
who
is
not
an
employer
2
by
reason
of
subsection
14
or
section
96.8,
subsection
3
,
may
3
recover
the
same
from
such
contractor
or
subcontractor,
except
4
as
any
contractor
or
subcontractor
who
would
in
the
absence
5
of
subsection
14
or
section
96.8,
subsection
3
,
be
liable
6
to
pay
said
contributions,
accepts
exclusive
liability
for
7
said
contributions
under
an
agreement
with
such
employer
made
8
pursuant
to
general
rules
of
the
department.
Each
individual
9
employed
to
perform
or
to
assist
in
performing
the
work
of
any
10
agent
or
employee
of
an
employing
unit
shall
be
deemed
to
be
11
employed
by
such
employing
unit
for
all
the
purposes
of
this
12
chapter
,
whether
such
individual
was
hired
or
paid
directly
13
by
such
employing
unit
or
by
such
agent
or
employee,
provided
14
the
employing
unit
had
actual
or
constructive
knowledge
of
15
such
work,
and
provided,
further,
that
such
employment
was
16
for
a
total
of
not
less
than
eight
hours
in
any
one
calendar
17
week.
An
employing
unit
shall
not
be
deemed
to
employ
an
18
independent
contractor
as
defined
in
section
85.61,
subsection
19
12,
paragraph
“c”
,
subparagraph
(2),
or
as
described
in
section
20
85.61,
subsection
12
,
paragraph
“c”
,
subparagraph
(3).
21
Sec.
8.
APPLICABILITY.
The
following
applies
to
injuries
22
occurring
on
or
after
the
effective
date
of
this
Act:
23
The
section
of
this
Act
enacting
section
85.27A.
24
EXPLANATION
25
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
26
the
explanation’s
substance
by
the
members
of
the
general
assembly.
27
This
bill
provides
that
if
an
employee
is
unable
to
return
28
to
work
due
to
an
injury
for
which
a
claim
for
workers’
29
compensation
arises,
and
if
the
employer
provided
the
employee
30
with
health
insurance
as
of
the
time
the
injury
occurred,
the
31
employer
must
continue
to
provide
the
employee
with
health
32
insurance
on
the
same
terms
for
at
least
six
months
beginning
33
on
the
day
after
the
employee
leaves
employment.
If
the
34
employer
does
not
comply,
the
employer
shall
be
liable
to
the
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employee
for
reimbursement
for
any
medical
costs
incurred
by
1
the
employee
that
would
have
been
covered
by
the
required
2
health
insurance.
The
bill
requires
each
employer
to
include
3
the
employer’s
policies
or
procedures
for
compliance
with
these
4
provisions
in
any
employment
contract,
employee
handbook,
or
5
offer
of
employment
provided
by
the
employer.
These
provisions
6
apply
to
employers
with
15
or
more
employees
and
to
injuries
7
occurring
on
or
after
the
effective
date
of
the
bill.
8
The
bill
defines
“independent
contractor”,
for
purposes
of
9
workers’
compensation,
wage
payment
collection,
minimum
wage,
10
and
unemployment
insurance,
as
an
individual
performing
work
11
who
is
free
from
control
or
direction
by
the
employer
over
the
12
performance
of
the
individual’s
services,
whose
service
is
13
either
outside
the
usual
course
of
the
business
of
the
employer
14
or
is
performed
outside
of
all
the
places
of
business
of
the
15
employer,
and
who
is
customarily
engaged
in
an
independently
16
established
trade,
occupation,
profession,
or
business.
For
17
purposes
of
the
definition,
an
employer
shall
have
the
burden
18
to
establish
that
an
individual
is
an
independent
contractor
19
and
not
a
worker
or
employee.
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