This bill amends Section 85.36 of the Iowa Code to require that weekly workers' compensation benefits be calculated by including an employee's overtime and premium pay. The bill specifies that the basis of compensation will be the weekly earnings of the injured employee at the time of the injury, which now explicitly includes overtime and premium pay. Additionally, it introduces a new provision that mandates an annual cost-of-living adjustment for permanent total disability benefits or death benefits, which will increase each January 1st based on the cost-of-living adjustment made to disability benefits by the U.S. Social Security Administration in the previous December.

The bill also makes several technical corrections for clarity, including the removal of outdated language that previously excluded overtime from gross earnings. The changes aim to ensure that employees receive fair compensation that accurately reflects their earnings, including additional pay for overtime work, thereby enhancing the financial support available to injured workers.

Statutes affected:
Introduced: 85.36, 85.59