Providing for paid sick leave and scheduling procedures for employees, establishing a family leave and medical leave insurance program, providing penalties and remedies, and including applicability provisions

Fifty-six unused accrued hours of paid sick leave can be carried over from one calendar year to the following calendar year. An employee shall begin to accrue paid sick leave on the first day of the employee’s employment by an employer. An employee may use accrued paid sick leave beginning calendar days after the first day of the employee’s employment by an employer. An employer shall pay an employee for accrued paid sick leave at a pay rate equal to the normal hourly wage for that employee. However, an employer who employs or less employees in Iowa may instead provide an employee with unpaid leave or leave paid at a rate less than the normal hourly wage for that employee. The bill defines “employee” as an individual who is employed in Iowa for compensation by an employer. The bill defines “employer” as any person that employs employees in Iowa. The bill provides permitted uses of accrued paid sick leave, including medical diagnosis, care, or treatment of mental illness or physical illness, injury, or a health condition of an employee or the employee’s spouse or child, as well as additional uses for an employee who is a victim of domestic abuse or sexual assault. The bill permits an employer to require advance notice of an employee’s intent to use accrued paid sick leave and, for leave of three or more consecutive days, reasonable documentation that such leave is being taken for the purposes permitted by the bill. The bill requires an employer to provide notice to an employee at the time of hiring of the rights provided by the bill. An employer may satisfy the requirement by displaying a poster at the employer’s place of business that contains the required information. The bill provides for the reinstatement of unused accrued paid sick leave if an employee whose employment is terminated is rehired by the employer within one calendar year. The bill prohibits an employer from retaliating or in any other manner discriminating against an employee because the employee has requested or used paid sick leave or filed a complaint with the labor commissioner alleging the employer’s violation of the bill or has cooperated in filing such a complaint. The bill permits an employee to file a complaint with the commissioner alleging a violation of the bill. Upon receipt of the complaint, the commissioner shall investigate to the extent deemed appropriate. If the commissioner determines that the provisions of the bill have been violated, the commissioner shall bring an action in district court. The district court shall have jurisdiction, for cause shown, to restrain violations of the bill and order appropriate relief, including payment for accrued paid sick leave used by the employee or rehiring or reinstatement of the employee to the former position with back pay. An employer who violates the prohibition against retaliation or other discrimination in the bill is subject to a civil penalty of not more than $500 per violation. An employer who violates any other provision of the bill is subject to a civil penalty of not more than $100 per violation. The bill provides procedures for the imposition, contestation, and collection of such penalties. The bill does not prohibit an employer from providing more paid sick leave than required by the bill, allowing donation of unused accrued paid sick leave from one employee to another, or taking disciplinary action against an employee who uses accrued paid sick leave under the bill for purposes other than those provided in the bill. For an employee hired prior to the effective date of the bill, paid sick leave shall begin to accrue on the effective date of the bill. For an employee hired on or after the effective date of the bill, paid sick leave shall begin to accrue on the employee’s date of hire. EMPLOYEE SCHEDULING. The bill requires an employer to provide each employee an initial written work schedule at least days before the first day of the period covered by the work schedule. The bill requires an employer to notify an employee of any change in the employee’s work schedule before the change takes effect and provide the employee with a revised written work schedule reflecting any change within hours of making the change. The bill prohibits an employer from requiring an employee to work hours not included in the employee’s initial written work schedule without written consent in advance from the employee. The bill requires an employer to provide an employee with a written work schedule for the employee’s first days of employment on or before the first day of the employee’s employment. The bill requires an employer to post a written schedule that includes the shifts of each current employee at a worksite at least days before the start of each work week and to update the posted schedule within hours of any change to the schedule. The bill requires an employer to begin an employee’s work week on the same day of each week, unless the employer provides written notice of a change in the start day of the work week days in advance. The bill prohibits an employer from requiring an employee to seek or find a replacement employee for any shifts or hours an employee is unable to work. The bill permits an employee to request a change in work schedule, request to limit the employee’s availability to work particular hours, or otherwise provide input into the employee’s work schedule. The bill permits an employee to submit a written request to an employer for a flexible working arrangement at any time. The bill defines “flexible working arrangement” as a change in an employee’s terms and conditions of employment with respect to work schedule, including but not limited to a modified work schedule; changes in start or end times in a work schedule or work shift; a predictable, stable work schedule; part-time employment; job sharing arrangements; working from home; telecommuting; limitations on the employee’s availability to work; changes in the location of the employee’s worksite; reduction or change in work duties; or part-year employment. The bill requires an employer to consider an employee’s request for a flexible working arrangement in good faith and engage in an interactive process with the employee to determine whether the request can be granted in a manner consistent with the employer’s business operations and legal or contractual obligations. The bill requires the employer to initiate the interactive process within two days of receiving the request. The bill permits an employer to request additional information from the employee regarding the request. The bill requires the employer to notify the employee in writing of the employer’s decision regarding a flexible working arrangement within two days of the employer’s last communication with the employee during the interactive process. The bill requires an employer to grant an employee a flexible working arrangement if the employee requests a flexible working arrangement for one of several reasons set out in the bill relating to medical conditions, caregiver responsibilities, training, and part-time employment and provides documentation of the reason to the employer. The bill permits an employer to make certain changes set out in the bill to an employee’s shift if the employer pays the affected employee one hour of predictability pay in addition to wages earned for each affected shift. The bill requires an employer to pay the employee the lesser of four hours of predictability pay or predictability pay equal to the number of hours originally scheduled for a shift minus the number of hours, if any, the employee actually worked for the shift, if the employer cancels an employee’s shift or reduces the hours in an employee’s shift without notifying the employee at least hours before the shift would otherwise begin. The bill specifies that predictability pay shall be calculated on an hourly basis, shall be equal to an employee’s regular wage rate, shall be in addition to any wages earned for work performed by the employee during a shift, and shall be paid in the same pay period in which it is accrued by the employee. Predictability pay is not required for a schedule change resulting from an employee’s request or a mutually agreed upon shift trade among employees. The bill defines predictability pay as part of an employee’s wages for purposes of Code chapter 91A, the Iowa wage payment collection law. The requirements of the bill relating to advance notice of work schedules, flexible working arrangements, and predictability pay do not apply to an employer when that employer’s operations are suspended for one of certain reasons set out in the bill. The bill permits an employee to decline to work any hours that begin sooner than hours after the end of the employee’s previous shift. The bill requires an employer who has additional hours of work available in positions held by current employees to offer such hours to current qualified employees before hiring new employees or contractors, including the use of temporary services or staffing agencies. The bill prohibits an employer from engaging in various discriminatory actions based on the number of hours an employee is scheduled to work. The bill prohibits an employer from paying a different regular rate of pay, condition eligibility for leave or time off differently, or condition eligibility for raises or promotions differently for similar employees based on the number of hours they are scheduled to work. The bill prohibits an employer from discharging or taking any other adverse action against an employee in retaliation for asserting any claim or right under the bill, for assisting another employee in doing so, or for informing another employee about their rights under the bill. The bill specifies that an employer taking any adverse action against an employee within one year of the employee’s engaging in such activities raises a rebuttable presumption that such action was retaliatory in nature. Such presumption may be rebutted by clear and convincing evidence that such action was taken for other permissible reasons. In addition to any other remedy provided by law, an employee may bring a civil action against an employer for a violation of the bill in any court of competent jurisdiction for an amount equal to three times any damages incurred by the employee. The employee may also recover court costs and attorney fees and receive injunctive and other appropriate relief as the court may order. The bill provides powers and duties for the labor commissioner relating to the administration and enforcement of the bill, including holding hearings, conducting investigations, settling complaints, employing qualified personnel, and adopting rules. The bill provides complaint, investigation, enforcement, and settlement processes for violations of the bill. An employer who violates the bill is subject to a civil penalty of not more than $500 per pay period for each violation. The bill provides administrative and judicial processes for imposing and recovering such penalties. The bill shall not be construed to discourage or prohibit an employer from the adoption or retention of a policy that meets or exceeds but does not otherwise conflict with the minimum standards and requirements provided in the bill. If any provision of the bill conflicts with a provision of an applicable collective bargaining agreement, the provision of the collective bargaining agreement shall govern. FAMILY LEAVE AND MEDICAL LEAVE INSURANCE. The bill establishes a family leave and medical leave insurance program (program), administered by the director of the department of workforce development, that provides for paid, job-protected leave for certain family leave and medical leave reasons for eligible employees of specified employers. An employee is eligible for family leave and medical leave after working for a covered employer, as defined in the bill, for a minimum of consecutive months and a minimum of 1,250 hours during the consecutive-month period immediately preceding the employee’s request for leave. Family leave and medical leave are defined in the bill. Family leave includes leave to care for an immediate family member with a serious health condition, to bond with a newborn child or adopted or foster child, or for a qualifying exigency for a family member as permitted under the federal Family and Medical Leave Act of 1993, as amended (FMLA). Medical leave includes leave due to the employee’s own serious health condition. Serious health condition is defined in the bill. The bill provides that an eligible employee may not receive more than weeks of family leave, weeks of medical leave, or weeks of combined family and medical leave in a defined consecutive 12-month period. The defined consecutive 12-month period begins on the date of the birth of a child or placement of a child for adoption or foster care with an eligible employee, or on the first date that an eligible employee takes either family leave or medical leave. The minimum duration of leave an eligible employee may take is eight consecutive hours. An employee is disqualified for family leave and medical leave benefits for an absence due to the employee purposefully causing injury or sickness to the employee or a family member, for an absence caused by an illness or injury due to the employee engaging in an illegal act, or an absence due to an employer taking disciplinary action against the employee. An employee must provide a minimum of days notice to an employer of the employee’s intent to take leave for the birth of a child or placement of a child for adoption or foster care, or of the employee’s intent to take family leave or medical leave. If circumstances require an employee’s leave to begin in less than days, the employee must give as much notice as is practicable. If an eligible employee requests medical leave or family leave, the employee must make a reasonable effort to schedule their own, or their family member’s medical treatment, to not unduly disrupt the employer’s operations. The bill requires an eligible employee to file a claim for benefits as required by the director. The employee must consent to the disclosure of potentially private or confidential information to and from the department, and the employee’s employer, for administration of the family leave or medical leave.1. The employee must attest that the employee has provided notice of the employee’s intent to take leave to the employee’s employer. The employee must also authorize the employee’s, or the employee’s family member’s health care provider, to complete a certification of a serious health condition as required by the director. The bill provides for a seven-day waiting period before benefits are payable. There is no waiting period for benefits for leave for the birth of a child or placement of a child for adoption or foster care. The basis for the calculation of the amount of a family leave or medical leave benefit is an eligible employee’s weekly earnings as defined in the bill. The weekly leave benefit amount payable to an employee for any one week is percent of the employee’s weekly spendable earnings, but must not exceed an amount equal to 200 percent of the statewide average weekly wage paid to employees as determined by the department of workforce development. The minimum weekly leave benefit amount is equal to the weekly leave benefit amount of a person whose gross weekly earnings are percent of the statewide average weekly wage, or to the spendable weekly earnings of the employee, whichever is less. “Spendable weekly earnings” is defined in the bill as the amount remaining after payroll taxes are deducted from an employee’s gross weekly earnings. The department must send the first benefit payment to an eligible employee within days after a properly completed weekly claim for benefits is received by the department. If the employee continues to submit a properly completed weekly claim, subsequent payments are to be made to the employee at least biweekly. If an employer, or the department, contests an employee’s eligibility, benefit payments may be made on a conditional basis. The employee is required to pay the benefits back if the department later rules that the employee is ineligible to receive such benefits. The bill provides that the program shall be funded via employee and employer contributions. Beginning on January 1, 2023, and ending on December 31, 2024, the department must assess a covered employer a premium rate of four-tenths of one percent of an employee’s weekly wages, subject to a maximum limit of wages subject to the assessment, as determined by the director based on the maximum wages subject to taxation for social security. One-third of the premium is to be used to fund family leave insurance benefits and two-thirds of the premium is to be used to fund medical leave benefits. The covered employer may deduct the full amount of the family leave premium from an employee’s wage. A covered employer may deduct up to percent of the medical leave premium and percent of the family leave premium from an employee’s wage. The employer must pay the remaining percent of both the medical leave and family leave premiums, and may elect to pay all or any portion of an employee’s share of such premiums. Beginning January 1, 2025, the premium rate shall be calculated by the director based on the family leave and medical leave insurance account balance ratio as of September of the previous calendar year. The premium rate is adjusted based on the balance ratio as detailed in the bill. If the balance ratio falls below five hundredths of one percent, the bill requires the director to assess a solvency surcharge that is added to the total premium rate assessed to a covered employer. The minimum solvency surcharge is one-tenth of one percent and the maximum is six-tenths of one percent. On September of each year, the bill requires the department to average the number of employees reported by an employer over the last four completed calendar quarters to determine if the employer is a covered employer for the next calendar year. The bill requires a covered employer to collect all assessed premiums and surcharges from the employer’s employees through payroll deduction and to remit all premiums to the department as required by the director. An employer may apply for, and the director must grant, a waiver of premiums for an employee who is located physically outside of the state and not expected to work in the state for 1,250 or more hours in any consecutive 12-month period. If the employee subsequently works 1,250 or more hours within the state, the employer and employee are responsible for all premiums that should have been collected. Self-employed persons may elect to participate in the program for a minimum initial participation period of three years. Any subsequent period of participation must be for a minimum of one year. A self-employed person must pay the employee and employer’s portion of the premium assessed by the director. A self-employed person who elects to participate in the program is eligible for family leave and medical leave benefits after working a minimum of 1,250 hours in the consecutive 12-month period immediately following the person’s election to participate in the program. The self-employed person may withdraw from the program by providing written notice to the director. The director may cancel the self-employed person’s elective coverage for failure to submit the required premiums. An eligible employee who takes family leave or medical leave is entitled to restoration of employment equal to but not greater than that provided by FMLA. The bill provides that if required under FMLA, an employer must maintain any existing health benefits during an employee’s leave. If the employer and employee normally share the cost of such, the employee is responsible for paying the employee’s share of the costs. A covered employer must submit reports as required by the director and maintain employment records for each employee from which the director may obtain information related to an employee’s family leave or medical leave. Such records must be maintained for years from the date on which an employee first takes a family leave or medical leave. The bill provides that family leave or medical leave shall be in addition to leave required under state or federal law for sickness or temporary disability due to pregnancy or childbirth. The bill requires family leave or medical leave taken under this program to be taken concurrently with leave taken under FMLA. A covered employer may allow an employee to choose to use either accrued sick or vacation benefits, or family leave and medical leave benefits. An employee cannot receive family or medical leave benefits at the same time the employee is receiving state or federal unemployment, workers’ compensation, or disability benefits. The bill prohibits discrimination on the basis of any state or federally protected category. The bill requires the director to administer the program and to provide outreach to ensure that employers and employees are aware of the program and the benefits available under such. The bill provides that a family leave and medical leave insurance account shall be created in the custody of the treasurer of state. The director shall deposit all premiums collected from employers into such account and the account can only be used for the program as authorized by the director. The bill requires the director to adopt rules to administer the provisions of the bill. The director may take any action under the director’s authority to enforce compliance with the bill. The director is required to analyze the funding of the program and the benefits payable from the program’s account. The director shall determine if the premium rates and the benefit levels are appropriate to fully fund and maintain the solvency of the program. The director must submit the findings to the general assembly and the governor no later than January 11, 2021. APPLICABILITY PROVISIONS. The bill applies to collective bargaining agreements entered into on or after the effective date of the bill. For an employee hired prior to the effective date of the bill, paid sick leave required pursuant to the bill shall begin to accrue on the effective date of the bill. For an employee hired on or after the effective date of the bill, paid sick leave required pursuant to the bill shall begin to accrue on the service employee’s date of hire.