The proposed bill establishes a family leave and medical leave insurance program in Iowa, which provides eligible employees with paid, job-protected leave for specific family and medical reasons. To qualify, employees must have worked for a covered employer for at least twelve consecutive months and a minimum of 1,250 hours during that time. The program allows for a maximum of twelve weeks of family leave and twelve weeks of medical leave within a defined twelve-month period, with a combined total of sixteen weeks for both types of leave. The bill also outlines the notification process for employees intending to take leave and the requirements for filing claims for benefits.

Additionally, the bill introduces a premium funding mechanism starting January 1, 2029, where a premium rate of four-tenths of one percent of employees' wages will be assessed to fund the program, with one-third allocated for family leave benefits and two-thirds for medical leave benefits. Employers are responsible for collecting and remitting these premiums, and the bill mandates that health benefits be maintained during leave. The director of the Department of Workforce Development will oversee the program, ensuring compliance and conducting outreach to inform employers and employees about their rights. The establishment of a family leave and medical leave insurance account is also mandated, with the director required to analyze the program's funding and report findings to the general assembly by January 12, 2026.

Statutes affected:
Introduced: 7E.5, 84A.1