Fiscal Note
Fiscal Services Division
HF 578 – State Employee Paid Parental Leave Benefit (LSB2194HV)
Staff Contacts: Evan Johnson (515.281.6301) evan.johnson@legis.iowa.gov
Molly Kilker (515.725.1286) molly.kilker@legis.iowa.gov
Fiscal Note Version – New
Description
House File 578 provides four weeks of paid leave to a State employee parent who gives birth or
adopts a child. A State employee parent of a nonadopted child who did not give birth will be
entitled to one week of paid leave. The Department of Administrative Services (DAS) is
required to adopt administrative rules to implement the paid parental leave benefits.
Background
To qualify for the benefits established by the Bill, employees must meet the eligibility
requirements established by the federal Family and Medical Leave Act (FMLA) of 1993. These
requirements include working for a covered employer for at least 12 months, having at least
1,250 hours of service with the employer during the 12 months before FMLA leave starts, and
working at a location where the employer has at least 50 employees within 75 miles. FMLA
leave is job-protected, unpaid leave. Employees may use accrued paid leave at the same time
that they take FMLA leave. FMLA leave covers both the birth of a child and the placement of a
child with a State employee for adoption.
The State of Iowa allows up to 12 weeks of leave (paid or unpaid) for an employee’s pregnancy
and the subsequent recovery.
Assumptions
• Leave can be taken up to 12 months following the birth or adoption of a child.
• State employee counts, age stratification, and salary costs are based on State of Iowa
Central Payroll data.
• Birth rates are based on the CDC National Center for Health Statistics Crude Birth Rates
reported in 2019.
• The number of employees is based on July 1, 2022, data.
• Leave value is based on biweekly salaries for each individual, conglomerated by branch and
age.
• Adoptions are not included for purposes of this estimate.
• The data excludes the following employee groups: temporary, seasonal, interns, Senators,
Representatives, magistrates, board members, and clients/patients.
• The data excludes the State Fair Authority.
• It is not possible to know how the proposed new leave will change leave utilization.
• It is unknown if the proposed new leave will result in employees taking additional leave.
• It is unknown how agencies will cover for the person out on the new leave. An agency could
cover for the employee on leave by utilizing overtime work, part-time workers, or no
coverage.
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Fiscal Impact
The fiscal impact for HF 578 cannot be determined, since any change in employee leave
utilization and the actions of the agencies are unknown. However, the estimated value of the
new leave is $4.8 million from all funding sources.
Sources
Board of Regents
Department of Administrative Services
Department of Transportation
Department of Corrections
Legislative Services Agency
/s/ Jennifer Acton
March 15, 2023
Doc ID 1370283
The fiscal note for this Bill was prepared pursuant to Joint Rule 17 and the Iowa Code. Data used in developing this
fiscal note is available from the Fiscal Services Division of the Legislative Services Agency upon request.
www.legis.iowa.gov
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