The proposed bill establishes a family leave and medical leave insurance program in Iowa, designed to provide 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.

In addition to the leave provisions, the bill introduces a funding mechanism that includes a premium rate of four-tenths of one percent of employees' wages, effective from January 1, 2030, with one-third allocated for family leave benefits and two-thirds for medical leave benefits. It mandates that employers maintain existing health benefits during leave and outlines their responsibilities regarding premium collection and reporting. The bill also allows for self-employed individuals to participate in the program and includes a seven-day waiting period for benefits, except for childbirth or adoption-related leave. The director of the Department of Workforce Development is tasked with administering the program, ensuring compliance, and conducting an analysis of funding and benefits, with a report due to the general assembly by January 12, 2027.

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