A Guide to Workers’ Compensation in Iowa

Steps to ensure you receive the workers’ comp benefits you deserve

Does my Iowa employer carry workers’ compensation insurance?

Almost ALL Iowa employers are required to carry workers’ compensation insurance for their employees.

There are only a few classifications of employees who are exempt from the law:

• Domestic and casual employees (nannies, house cleaners, etc.) who earn less than $1,500 from their employer over the course of a year.
• Agricultural employees whose employer has a cash payroll of less than $2,500 per year.
• Certain family members of the employer.
• Employees who are part of a labor exchange in the agricultural industry (i.e., agricultural workers who only receive non-monetary payments).
• The president, vice president, secretary, and treasurer of a family farm corporation and their family members.
• Police officers and firefighters who are entitled to benefits under the state’s pension fund.
• Members of a limited liability company.

Independent contractors are NOT required to be covered by workers’ compensation insurance. An independent contractor is defined as someone who meets all of the following criteria:

1. Has an express contract to perform services;
2. Is free from direction and control over the means and manner of providing services;
3. Incurs most of the expenses for tools, labor, and other operational costs;
4. Has an opportunity for profit and loss from the services performed;
5. Is free to hire and fire employees to help perform the services for the contracted work;
6. Has all business, trade, or professional licenses required by federal, state, or municipal authorities of an individual or business engaging in the same type of services; and
7. Follows Internal Revenue Service requirements by obtaining an employer identification number and filing business income appropriately.

What are the procedures for making a workers’ compensation claim in Iowa?

Both the injured employee and the employer are responsible for taking certain steps to ensure that a workers’ compensation claim is filed. Here are the steps:

1. Notice to the employer. The injured employee must report their injury to their employer within 90 days of the injury. It’s a good idea to send an additional copy of the notification letter by certified mail with a return receipt requested (so there are no disputes about when the notice was received).
2. Employer files claim. Within 4 days of receiving notice about an injury, the employer must file a First Report of Injury - Form 1 with the workers’ compensation insurer even if the employer disputes the claim.
3. Pay the claim. The employer must pay or deny a claim within 11 days. When a claim is denied, a letter must be sent to the employee stating the reasons for the denial.

If there’s a dispute about workers’ compensation benefits, the injured worker must file an administrative claim (called a contested case proceeding) within 2-years of the injury date.

Can I appeal an unfavorable workers’ compensation decision?

If your workers’ compensation claim is denied, you’re entitled to an appeal. In fact, you’re entitled to several appeals. Here’s what the appeals process looks like:

1. Administrative hearing. The initial hearing will be presided over by a deputy workers’ compensation commissioner. The parties have the right to introduce evidence to support their case.
2. Administrative rehearing. If either party is unsatisfied with the decision by the deputy workers’ compensation commissioner, they can request a rehearing within 20 days of receiving the decision.
3. Iowa Workers’ Compensation Commissioner. If either party is unhappy with the administrative rehearing, they can appeal the case to the Iowa Workers’ Compensation Commissioner within 20 days of receiving the rehearing decision. Generally, no new evidence is submitted at this point. Rather, the Commissioner bases their decision on the record and briefs already on file.
4. District court. If either party is unhappy with the decision of the Workers’ Compensation Commissioner, they can file an appeal with the district court. In Iowa, each of the 99 counties has a district court.
5. Iowa Court of Appeals. The next step in the appeals process is the Iowa Court of Appeals. An appeal to the Iowa Court of Appeals can take up to a year.
6. Iowa Supreme Court. The final step in the appeals process is the Iowa Supreme Court. No further appeal can be made after the case is heard by the Iowa Supreme Court (unless the case involves a constitutional issue, in which case it may be heard by the United States Supreme Court).