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Iowa - Compensation & Benefit Legislation

IOWA - AASHOWME

Demonstrates www.BenefitsReview.com™ site. Illustrates insurance carriers' coverages within the State.

 

IOWA - ADOPTED CHILD HEALTH CARE MANDATE

OBRA 1993 (Federal) requires group health plans to honor medical and child support orders. Also, plans must treat adopted children like biological children covered by the plan, and plans are precluded from applying pre-existing condition exclusions to an adopted child where no such exclusion applies to a newborn biological child. Health plans that covered the cost of pediatric vaccines as of May 1, 1993, and fail to continue that level of coverage, will be subject to an excise tax penalty applicable to plans that fail to meet the health care continuation coverage requirements under OBRA 1993.

 

Mandatory coverage of birth of adopted children is included in state's newborn health care mandate.

 

Preventive care for children: No.

 

(Iowa Code Ann. sections 514C.1, 514C.10)

 

IOWA - ALCOHOLISM & DRUG ABUSE

State reports no statutory requirements.

 

IOWA - CAFETERIA PLAN TAX LAWS

State income tax, unemployment insurance tax on salary reduction: State Unemployment Insurance law has no specific provisions on cafeteria plans, but employer contributions for health and accident and group term life insurance benefits are specifically excluded from wages under state Unemployment Insurance law and may be excluded when offered through a cafeteria plan provided the employee may not elect cash in lieu of the employer contribution. Employee salary reductions for such benefits are taxable for state Unemployment Insurance.

 

IOWA - CONTINUATION OF COVERAGE CONVERSIONS

Events Triggering Continuation of Coverage:

 

IOWA - COORDINATION OF BENEFITS

Requires use of the birthday rule if coordinating benefits (effective 4/15/87). Based on 1985 National Association of Insurance Commissioner Rules model. (Iowa Admin. Code §§ 191-38.1 to 191-38.11)

 

IOWA - COST-OF-LIVING

ERI's Relocation Assessor™ is a recommended source for U.S./Canadian cost-of-living data and U.S. Automobile Cost Survey.

 

IOWA - DRUG TESTING AND EMPLOYEE ASSISTANCE BENEFITS

Who is Covered by Statute: All employers, employees, and applicants.

 

Applicant Testing: An employer shall not require or request applicants to submit to a drug test as a condition of employment unless employer includes notice that a drug test will be part of pre-employment physical in any job advertisement soliciting applicants.

 

Employee Testing: Employee testing is allowed for probably cause. Employees must be in jobs where impairment would pose a danger to other employees, the public, or employer's property. Random testing is prohibited unless the employee is in a safety-sensitive position and the test is administered during normal working hours.

 

How Test Results are Used: Test results may be used to screen out drug-using applicants or to discharge or discipline employees. An employee's first offense results in referral to an EAP at employer's expense or according to plan.

 

Enforcement of Statutes: Enforcement is by private civil action; state pursues violation of statute.

 

Employee Remedies: Employees may seek back pay, attorneys' fees and court costs, reinstatement, and injunctive relief.

 

Employer Penalties: Employer violations are simple misdemeanors.

 

Who Pays for Testing: State has no statutory requirements.

 

Employee Assistance Benefits: Employer shall provide substance abuse evaluation.

 

Other Requirements: Drug test is allowed during annual employee physical on 30 days notice. Statue does not apply to persons covered under federal statues or regulations unless such statutes or regulations are deemed unenforceable by federal court order. Exceptions: This statute does not apply to pre-employment drug tests for peace or corrections officers, drug tests for employees of nuclear regulatory facilities, or drug tests required for workers' compensation.

 

(Iowa Code Ann. Section 730.5.)

 

IOWA - GROUP HEALTH CODE ADDITIONS (MANDATED)

Coverage Continuation and Conversion: Policies must provide continuation and subsequent conversion rights to employees who terminate employment for themselves and their dependents and to spouses and dependents who cease to be eligible due to death of the insured or dissolution of marriage. (Iowa Code Sections 509.3, 509.4.)

 

Diabetes: Insurers must make available coverage for diabetic outpatient self-management education and services rendered by optometrists, chiropractors, and registered nurses. (Iowa Code Section 509.3(5)-(8).)

 

Mammography Screening: Policies must cover the cost of mammography screening as described. (Iowa Code Section 514C.4.)

 

Maternity: Health care providers which provide maternity benefits must provide inpatient hospital care for a mother and her newborn child for a minimum of 48 hours following a vaginal delivery and for a minimum of 96 hours following a Caesarean section. A mother and her newborn child, however, may be discharged from a hospital earlier if the physician gives approval after consultation with the mother. In these cases, the mother and newborn child are allowed two post-discharge visits by a registered nurse; one nurse's visit must occur within 48 hours of discharge. (H2369, 1995) (Iowa Code Sections 514.11.)

 

Newborns: Policies providing family coverage must provide benefits for newborns from the moment of birth for injury of sickness including treatment of medically diagnosed congenital defects. (Iowa Code Section 514C.1.)

 

Policies for Small Employers: Small employers are defined as employers that have employed on at least 50 percent of the employer's working days during the preceding year, at least two but not more than 50 full-time equivalent employees. Insurers must offer basis or standard plans to small employers without variance in premium rates. Employers must offer access to these plans to employees, as well as payroll deduction of employee contributions and direct deposit of premium payments. A small employer carrier must seek prior approval before using case characteristics in determining premium rates other than age, geographic area, family composition, and group size. The Insurance Commissioner has the power to reduce or eliminate rating bands, or otherwise limit or eliminate the use of experience rating. (Iowa code Section 513.B2.)

 

Providers: Dentists: Costs for services must be covered if the provider is licensed, the service is within the provider's scope of services, and the service is covered by the policy. (Iowa Code Section 514C.3.) Skilled nursing care: The cost of skilled nursing care in a hospital must be covered if the policy covers skilled nursing care. (Iowa Code Section 514C.2.)

                       

IOWA - GROUP HEALTH FOR SMALL EMPLOYERS

For insurance plans offered to small employers:

 

IOWA - GROUP LIFE CODE ADDITIONS

Employer required to pay part of premium: Yes.

 

Percent of employees who must elect coverage (if employees pay part of premium): 75%.

 

Percent of employees who must be covered if employer pays all of premium: 100%.

 

Minimum number of employees in group plan: 10.

 

Employer prohibited as beneficiary: Yes.

 

Grace period (days): 31.

 

Mandatory conversion: Yes.

 

Other provisions: None.

 

(Iowa Code Ann. Sections 509.1, 509.2)

 

IOWA - HOLIDAYS

January 1, Washington's Birthday (or 3rd Monday in February), Memorial Day (or last Monday in May), July 4, Labor Day (or 1st Monday in September), Veterans Day, and December 25 are state holidays in all 50 states and in the District of Columbia. Other holidays under State law include: Martin Luther King's birthday (or 3rd Monday in January), Lincoln's Birthday, Thanksgiving. Other: If a holiday falls on Sunday, the following Monday is a holiday; if a holiday falls on Saturday, the preceding Friday is a holiday. (Iowa Code Ann. Section lC.1, lC.3-lC.5, lC.7, lC.8, lC.10)

 

IOWA - IMMIGRATION (PREVAILING WAGE POLICY)

See U.S. Federal General Administrative Letter 1-2000

 

IOWA - JURY DUTY & WITNESS TIME OFF

Employer Restriction For Discharging Employee For Taking Leave For Jury Service: Yes.

 

Remedies and Penalties: Violator is guilty of contempt. Employee can bring civil action within 60 days of discharge for lost wages, reinstatement and reasonable attorney fees. Damages recovered shall not exceed 6 weeks' lost wages.

 

Other Requirements: None reported. (Iowa Code Ann. Section 607A.45.)

 

Employer Restriction For Discharging Employee For Taking Leave to be a Witness: Yes.

 

Remedies and Penalties: Violator is guilty of contempt. Employee can bring civil action within 60 days of discharge for lost wages, reinstatement and reasonable attorney fees.

 

Other Requirements: None reported.

 

IOWA - LEAVES OF ABSENCE

Employers Subject to Leave Laws: Employers with at least 4 employees.

 

Criteria for Eligibility: State reports no statutory requirements.

 

Maximum length of leave: 8 weeks or the period of disability, which ever is less.

 

Paid Leave: State does not require paid leave.

 

Acceptable Reasons for Leave: Birth of child; disability related to pregnancy.

 

Employment Guarantees After Leave: State reports no statutory requirements.

 

Use of Vacation or other Time-off Benefits: Employer may require employee first to use other disability benefits prior to leave.

 

Certification Required: Employer may require certification of condition of disability.

 

Effect Of Leave on Other Benefits: State reports no statutory requirements.

 

Effect of Seniority Accrual During Leave: State reports no statutory requirements.

 

Minimum Requirements for Notification to Employer: Timely notice is required.

 

Conditions for Denial of a Request For Leave: Leave may be denied for failure to provide notice and/or certification.

 

(Iowa Code Ann. Section 216.6.)

 

See U.S. Federal Family and Medical Leave Act

 

IOWA - LONG TERM DISABILITY CODE ADDITIONS

State does not require employer to provide long term disability benefits; although many employers do in order to remain competitive in hiring/retention of employees.

 

See LEAVES OF ABSENCE (above), WORKERS' COMPENSATION (below) and U.S. Federal Americans With Disabilities Act

 

IOWA - MANDATED PROVIDERS

Optometrists, chiropractors, and dentists. Mandatory coverage for registered nurses and skilled nursing care. (Iowa Code Ann. Sections 509.3, 514C.2, 514C.3)

 

IOWA - MENTAL HEALTH CARE

State reports no statutory requirements.

 

IOWA - MINIMUM WAGE

Refer to the Federal minimum wage: $5.15 per hour (effective September 1, 1997).

 

Exemptions: Under FLSA, 29 USC Section 213, certain professionals, agriculture workers, domestics, outside sales, students, apprentices and handicapped workers in special environments. (Iowa Code Ann. Section 91D.1)

 

See U.S. Minimum Wage

 

IOWA - NEW HIRE REPORTING

Who is required to report: All employers.

 

Who must be reported: New employees and rehires.

 

Form(s) to file: Employee’s withholding allowance certificate form, or by submitting electronic media in a format approved in advance by the State, or by any other means authorized by the State.

 

Filing deadline: Within 15 days of hire.

 

Employer information to be included: Name, address, federal EIN, and employer’s address to which income withholding orders and garnishments should be sent.

 

Employee information to be included: Name, address, SSN, date of birth, whether employee has dependent health care coverage available, and date on which employee qualifies for coverage.

 

Penalty for failure to report: Employer will be subject to court action, and willful failure to provide information will be punishable as contempt.

 

(Iowa Code Ann. Section 252G.2 through 252G.3)

 

IOWA - NEWBORN CARE MANDATE

Mandated coverage.

 

Preventive care for children: no. (Iowa Code Ann. sections 514C.1, 514C.10)

 

IOWA - OVERTIME COMPENSATION REQUIREMENTS

State reports no statutory requirements.

 

IOWA - PARENTAL LEAVE

See U.S. Federal Family and Medical Leave Act

 

IOWA - PRE-EXISTING CONDITIONS

For insurance plans offered to small employers, no benefits shall be denied for losses incurred more than 12 months following the effective date of coverage due to a pre-existing condition. (Iowa Code Ann. Sections 513B.1, 513B.2, 513B.3, 513B.4, 513B.10, 513B.14)

 

See U.S. Federal Health Insurance Portability & Accountability Act

 

IOWA - PROTECTED CLASSIFICATIONS

Age:  Yes.

Race:  Yes.

Color:  Yes.

National Origin: Yes.

Ancestry:  No specific law. State has expressed policy against discrimination.

Religion:  Yes.

Sex:  Yes.

Pregnancy:  Yes.

Sexual Harassment:  Yes, for state employees.

 

(Iowa Code Ann. Sections 19B.12, 216.2, 216.6.)

 

IOWA - SALARY SURVEY

ERI's Relocation Assessor™ is a recommended source for U.S./Canadian wages & salaries (covering 3,000 positions).

 

IOWA - SHORT TERM DISABILITY CODE ADDITIONS

State does not require employer or employee participation in short term disability plans.

 

IOWA - TERMINATION & SEVERANCE PAY

Date pay is due if employee is discharged: Payday.

Date due if employee resigns: Payday.

Wages: Yes.

Vacation Pay: Yes.

Holiday: Yes.

Sick leave: Yes.

Severance: Yes. (Iowa Code Ann. Sections 91A.s, 91A.4; Hengesteg v. Northern Engineering, Inc. 478 N.W. 2d 307 (Iowa App. 1991)

 

IOWA - UNEMPLOYMENT TAX

Employer Contributions:

 

 

Voluntary Contribution Provision: No. State reports no statutory requirements.

 

(Iowa Code Ann. Sections 96.7. 96.11, 96.14.)

 

IOWA - VACATION PAY

See TERMINATION & SEVERANCE PAY (above)

 

IOWA - VOTING TIME OFF

If employee does not have 3 consecutive hours outside working hours while polls are open, employee will be given as much time as will in addition to his or her nonworking time total 3 consecutive hours while polls are open. (Iowa Code Ann. Sections 49.109, 49.110. 0

 

IOWA - WORKERS' COMPENSATION

Private Employers: Mandatory as to all employments but up to 4 corporate officers may reject coverage. Elective as to working partners and proprietors.

 

Public Employers: Mandatory as to all public employments, except firefighters and police officers entitled to pension fund. Covers highway safety patrol officers, conservation officers, criminal defendants while performing unpaid community service or other services and agricultural workers at state universities.

 

Exceptions: Domestic and casual workers earning under $200 per quarter, farm labor, if employer payroll is under $2,500 per year.

 

Special Coverage Provisions: Voluntary as to excepted employments. Persons receiving employment training or evaluations in an approved facility are covered for PP or PT disabilities. Under certain conditions, truck owner operators and real estate agents are considered independent contractors and are required to maintain own coverages.

 

(U.S. Chamber of Commerce, 1994 Analysis of Workers' Compensation Laws.)