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Bill > SF509
IA SF509
A bill for an act relating to employment status and employment benefits and including applicability provisions.
summary
Introduced
03/04/2025
03/04/2025
In Committee
03/04/2025
03/04/2025
Crossed Over
Passed
Dead
Introduced Session
91st General Assembly
Bill Summary
This bill provides that if an employee is unable to return to work due to an injury for which a claim for workers’ compensation arises, and if the employer provided the employee with health insurance as of the time the injury occurred, the employer must continue to provide the employee with health insurance on the same terms for at least six months beginning on the day after the employee leaves employment. If the employer does not comply, the employer shall be liable to the employee for reimbursement for any medical costs incurred by the employee that would have been covered by the required health insurance. The bill requires each employer to include the employer’s policies or procedures for compliance with these provisions in any employment contract, employee handbook, or offer of employment provided by the employer. These provisions apply to employers with 15 or more employees and to injuries occurring on or after the effective date of the bill. The bill defines “independent contractor”, for purposes of workers’ compensation, wage payment collection, minimum wage, and unemployment insurance, as an individual performing work who is free from control or direction by the employer over the performance of the individual’s services, whose service is either outside the usual course of the business of the employer or is performed outside of all the places of business of the employer, and who is customarily engaged in an independently established trade, occupation, profession, or business. For purposes of the definition, an employer shall have the burden to establish that an individual is an independent contractor and not a worker or employee.
AI Summary
This bill introduces several key provisions related to employment status and benefits. First, it requires employers with 15 or more employees to continue providing health insurance for at least six months to an employee who is unable to return to work due to a work-related injury, maintaining the same terms of coverage as existed when the injury occurred. If an employer fails to comply, they will be liable for reimbursing the employee for any medical costs that would have been covered by the health insurance. The bill also mandates that employers include their health insurance continuation policies in employment contracts, handbooks, or employment offers. Additionally, the bill provides a comprehensive definition of "independent contractor" for various legal contexts, including workers' compensation and unemployment insurance. Under this definition, an independent contractor must be free from employer control, perform work outside the employer's usual business or workplace, and be engaged in an established independent trade or profession. Importantly, the burden of proving an individual's independent contractor status falls on the employer. These provisions will apply to work-related injuries occurring on or after the bill's effective date, with the aim of providing clearer protections and classifications for workers in various employment situations.
Committee Categories
Labor and Employment
Sponsors (1)
Last Action
Subcommittee: Driscoll, Taylor, and Townsend. S.J. 466. (on 03/10/2025)
Official Document
bill text
bill summary
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bill summary
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bill summary
Document Type | Source Location |
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State Bill Page | https://www.legis.iowa.gov/legislation/BillBook?ga=91&ba=SF509 |
BillText | https://www.legis.iowa.gov/docs/publications/LGI/91/attachments/SF509.html |
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