SSB 1029

Description

Senate File 485 requires employers to provide reasonable accommodations to employees based on pregnancy or childbirth and tasks the Labor Commissioner with adopting rules to administer employment inspections and enforce the Bill. An employer who violates the Bill is subject to a civil penalty of up to $750. The Bill is effective July 1, 2021.

Background

The office of the Labor Commissioner, created in Iowa Code section 91.1, controls the Division of Labor Services under the Iowa Department of Workforce Development (IWD) and is responsible for the activities of the Division, including disseminating safety and wage information to businesses and employees, administering education programs on worker safety, licensing businesses and equipment, and enforcing wage and child labor standards. State employment policies regarding pregnancy and childbirth are covered under Iowa Code section 216.6, which received a hearing through the Iowa Supreme Court in McQuistion v. City of Clinton. The federal Family and Medical Leave Act (FMLA), detailed in 29 U.S.C. 28, outlines federal policies regarding pregnancy and childbirth and received a hearing through the U.S. Supreme Court in Young v. United Parcel Serv., Inc.

Assumptions

• The Bill will require the Division of Labor to implement and enforce a new program to write rules, perform inspections, and assess civil penalties.
• The Bill will require 2.0 additional full-time equivalent (FTE) positions to administer the program beginning in FY 2022. These positions include an Attorney 2 and an Investigator 2.
• Hiring of FTE positions will not take place, on average, until October 1, 2021. The estimated cost for salaries and benefits for FY 2022 is $118,000 and $161,000 for FY 2023.
• Operating costs are estimated at $10,000 annually, including travel, postage, and other administrative costs.
• Capital outlay includes desks, computers, chairs, and other costs of creating two new positions within the IWD.
• At $750 per citation, the IWD expects to collect $5,000 annually in penalty fees. The fiscal impact is shown in Table 1 below.
• Inflation is calculated at 2.1% in FY 2023 for salary and benefits.
• There will be seven penalty citations collected each fiscal year by the Division of Labor.

Fiscal Impact

Senate File 485 is estimated to increase the cost to the IWD by $135,000 in FY 2022, and $166,000 in FY 2023 and subsequent fiscal years. The cost for salaries and benefits will grow at 2.1% in the out-years. Funding is expected to come from the General Fund.

Sources

• Legislative Services Agency
• Iowa Department of Workforce Development
• Iowa Civil Rights Commission