Fiscal Note
Fiscal Services Division
HF 2557 – State Employee Paid Parental Leave (LSB5029HV)
Staff Contact: Evan Johnson (515.281.6301) evan.johnson@legis.iowa.gov
Fiscal Note Version – New
Description
House File 2557 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 of 1993 (FMLA). 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.
Leave can be taken any time in the 12 months following the birth or adoption of a child. The
State of Iowa allows up to 12 weeks of leave (paid or unpaid) for the birth or adoption of a child.
Assumptions
• State employee counts, age stratification, and salary costs are based on State of Iowa
Central Payroll data.
• Birth rates are based on the Centers for Disease Control and Prevention (CDC) National
Vital Statistics Reports for 2021.
• Birth rates for men and women of the same age are assumed to be the same.
• The number of employees and salary costs are based on July 1, 2022, data.
• Leave value is based on biweekly salaries for each individual, conglomerated by branch and
age. Leave value is estimated to increase by 2.0% each year.
• Adoptions are not included for the 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 use.
• It is unknown how agencies will cover for the person taking the new leave. An agency could
cover for the employee on leave by using overtime work, using part-time workers, or having
no coverage.
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Fiscal Impact
The fiscal impact for HF 2557 cannot be determined, as increased use of employee leave may
not result in increased expenditures for State agencies. The estimated value of the new leave
potentially used by State employees is approximately $4.8 million per year from all funding
sources.
Sources
Board of Regents
Department of Administrative Services
Department of Corrections
Department of Transportation
Legislative Services Agency calculations
/s/ Jennifer Acton
February 28, 2024
Doc ID 1446716
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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