ARC 9972C

ARC 9972C

ADMINISTRATIVE SERVICES DEPARTMENT[11]

Notice of Intended Action

Proposing rulemaking related to leave and providing an opportunity for public comment

    The Administrative Services Department hereby proposes to amend Chapter 63, “Leave,” Iowa Administrative Code.

Legal Authority for Rulemaking

    This rulemaking is proposed under the authority provided in Iowa Code sections 8A.104(5) and 8A.413.

State or Federal Law Implemented

    This rulemaking implements, in whole or in part, 2025 Iowa Acts, House File 889.

Purpose and Summary

    The intended purpose of this proposed rulemaking is to provide administrative guidance for two areas of paid leave that are now law pursuant to 2025 Iowa Acts, House File 889. Certain State employees in their first four years of employment who do not use sick leave during a full month of employment can now choose to convert that month’s sick leave for one-half day of additional vacation time. In addition, 2025 Iowa Acts, House File 889, provided that a State employee parent who gives birth or adopts a child is entitled to four weeks of paid leave. A State employee parent who does not give birth is entitled to one week of paid leave.

Regulatory Analysis

    A Regulatory Analysis for this rulemaking was published in the Iowa Administrative Bulletin on November 26, 2025. A public hearing was held on the following date(s):

     ?   December 16, 2025

    The Department received written comments from the nonprofit ACEs 360 in favor of the parental leave rules as a way to support families and strengthen workforce recruitment and retention. The organization also encouraged the Department to collect data to determine whether the leave benefits will help reduce workforce turnover costs.

Fiscal Impact

     It is impossible to know how many State employees will either convert sick leave for vacation time or take paid parental leave. The Department does not anticipate a fiscal impact, but costs would be funded through agency budgets.

Jobs Impact

    After analysis and review of this rulemaking, no impact on jobs has been found.

Waivers

    The Department will not grant waivers under the provisions of these rules, other than as may be allowed under Chapter 9 of the Department’s rules concerning waivers.

Public Comment

     Any interested person may submit written or oral comments concerning this proposed rulemaking, which must be received by the Department no later than 4:30 p.m. on February 11, 2026. Comments should be directed to:

Public Hearing

     A public hearing at which persons may present their views orally or in writing will be held as follows:

    Persons who wish to make oral comments at the public hearing may be asked to state their names for the record and to confine their remarks to the subject of this proposed rulemaking.

     Any persons who intend to attend the public hearing and have special requirements, such as those related to hearing or mobility impairments, should contact the Department and advise of specific needs.

Review by Administrative Rules Review Committee

    The Administrative Rules Review Committee, a bipartisan legislative committee which oversees rulemaking by executive branch agencies, may, on its own motion or on written request by any individual or group, review this rulemaking at its regular monthly meeting or at a special meeting. The Committee’s meetings are open to the public, and interested persons may be heard as provided in Iowa Code section 17A.8(6).

    The following rulemaking action is proposed:

    ITEM 1.  Amend subrule 63.3(4) as follows:

    63.3(4) There is no limit on the accumulation of sick leave. An employee in the first four years of employment who has accrued at least 80 hours of sick leave may elect to accrue additional vacation in lieu of the normal sick leave accrual. A conversion shall not be made if the accrued sick leave is less than 80 hours in the pay period in which the conversion would be made. After the fourth year of employment, an employee who has accrued at least 240 hours of sick leave may elect to accrue additional vacation in lieu of the normal sick leave accrual. An employee who has made an election to convert sick leave to vacation will be credited with four hours of vacation for each full month when sick leave is not used during that month. A conversion shall not be made if the accrued sick leave is less than 240 hours in the pay period in which the conversion would be made. An employee who has made an election to convert sick leave to vacation will be credited with four hours of vacation for each full month when sick leave is not used during that month. The conversion of sick leave shall be prorated for employees who are normally scheduled to work less than full-time (40 hours per week). An employee’s maximum vacation accrual may be increased under this subrule up to 96 hours.

    ITEM 2.  Adopt the following new rule  11—63.21(8A,70A):

11—63.21(8A,70A) Paid parental leave. Employees entitled to leave under the federal Family and Medical Leave Act of 1993 shall be provided paid parental leave pursuant to Iowa Code section 70A.24.