A bill for an act requiring certain weekly workers’ compensation benefits to be calculated by including an employee’s overtime and premium pay, and to include an annual cost-of-living adjustment.

This bill changes how Iowa calculates workers' compensation benefits for injured workers. It requires including overtime and premium pay (like shift differentials) in the weekly earnings calculation - currently excluded under law - and adds an annual cost-of-living adjustment tied to Social Security’s disability benefit increase. The change directly affects hourly, shift, and overtime workers, as their benefits will now reflect higher average earnings. The annual adjustment applies specifically to permanent total disability and death benefits, not all compensation. This policy update modifies existing calculation methods without altering benefit eligibility.