Bill Text: IA SF2295 | 2013-2014 | 85th General Assembly | Introduced
Bill Title: A bill for an act relating to wage payment collection issues arising between employers and individuals who provide services to employers, providing penalties and remedies, and including effective date provisions. (Formerly SF 191.)
Spectrum: Committee Bill
Status: (Engrossed - Dead) 2014-03-06 - Subcommittee, Jorgensen, Forristall, and Hunter. H.J. 455. [SF2295 Detail]
Download: Iowa-2013-SF2295-Introduced.html
Senate
File
2295
-
Introduced
SENATE
FILE
2295
BY
COMMITTEE
ON
LABOR
AND
BUSINESS
RELATIONS
(SUCCESSOR
TO
SF
191)
A
BILL
FOR
An
Act
relating
to
wage
payment
collection
issues
arising
1
between
employers
and
individuals
who
provide
services
to
2
employers,
providing
penalties
and
remedies,
and
including
3
effective
date
provisions.
4
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
5
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Section
1.
Section
91A.5,
subsection
1,
unnumbered
1
paragraph
1,
Code
2014,
is
amended
to
read
as
follows:
2
An
employer
shall
have
the
burden
to
establish
that
a
3
deduction
from
employee
wages
is
lawful.
An
employer
shall
not
4
withhold
or
divert
any
portion
of
an
employee’s
wages
unless:
5
Sec.
2.
Section
91A.5,
subsection
1,
paragraph
b,
Code
2014,
6
is
amended
to
read
as
follows:
7
b.
The
employer
has
obtains
advance
written
authorization
8
from
the
employee
to
so
deduct
for
any
lawful
purpose
accruing
9
to
the
benefit
of
the
employee.
10
Sec.
3.
Section
91A.6,
subsection
1,
Code
2014,
is
amended
11
to
read
as
follows:
12
1.
An
employer
shall
after
being
notified
by
the
13
commissioner
pursuant
to
subsection
2
do
the
following
:
14
a.
Notify
its
employees
in
writing
at
the
time
of
hiring
15
what
wages
and
regular
paydays
are
designated
by
the
employer.
16
b.
Notify
its
employees
in
writing
whose
wages
are
17
determined
based
on
a
task,
piece,
mile,
or
load
basis
about
18
the
method
used
to
calculate
wages
and
when
the
wages
are
19
earned
by
the
employees.
20
b.
c.
Notify,
at
least
one
pay
period
prior
to
the
21
initiation
of
any
changes,
its
employees
of
any
changes
in
22
the
arrangements
specified
in
this
subsection
1
that
reduce
23
wages
or
alter
the
regular
paydays.
The
notice
shall
either
24
be
in
writing
or
posted
at
a
place
where
employee
notices
are
25
routinely
posted.
26
c.
d.
Make
available
to
its
employees
upon
written
request,
27
a
written
statement
enumerating
employment
agreements
and
28
policies
with
regard
to
vacation
pay,
sick
leave,
reimbursement
29
for
expenses,
retirement
benefits,
severance
pay,
or
other
30
comparable
matters
with
respect
to
wages.
Notice
of
such
31
availability
shall
be
given
to
each
employee
in
writing
or
by
a
32
notice
posted
at
a
place
where
employee
notices
are
routinely
33
posted.
34
d.
e.
Establish,
maintain,
and
preserve
for
three
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calendar
years
the
payroll
records
showing
the
hours
worked,
1
wages
earned,
and
deductions
made
for
each
employee
and
2
any
employment
agreements
entered
into
between
an
employer
3
and
employee.
Failure
to
do
so
shall
raise
a
rebuttable
4
presumption
that
the
employer
did
not
pay
the
required
minimum
5
wage
under
section
91D.1.
6
Sec.
4.
Section
91A.6,
subsection
2,
Code
2014,
is
amended
7
by
striking
the
subsection.
8
Sec.
5.
Section
91A.6,
subsection
4,
Code
2014,
is
amended
9
by
striking
the
subsection
and
inserting
in
lieu
thereof
the
10
following:
11
4.
a.
On
each
regular
payday,
the
employer
shall
send
to
12
each
employee
by
mail
or
shall
provide
at
the
employee’s
normal
13
place
of
employment
during
normal
employment
hours
a
statement
14
showing
the
wages
earned
by
the
employee,
the
deductions
made
15
for
the
employee,
and
the
following
information,
as
applicable:
16
(1)
For
each
employee
paid
in
whole
or
in
part
on
an
hourly
17
basis,
the
statement
shall
show
the
hours
the
employee
worked.
18
(2)
For
each
employee
paid
based
on
a
percentage
of
sales
or
19
based
on
a
percentage
of
revenue
generated
for
the
employer,
20
the
statement
shall
include
a
list
of
the
amount
of
each
sale
21
or
the
amount
of
revenue
during
the
pay
period.
22
(3)
For
each
employee
whose
pay
is
based
on
the
number
23
of
miles
or
loads
performed,
the
statement
shall
include
the
24
applicable
number
performed
during
the
pay
period.
25
b.
An
employer
who
provides
each
employee
access
to
view
an
26
electronic
statement
of
the
employee’s
earnings
and
provides
27
the
employee
free
and
unrestricted
access
to
a
printer
to
print
28
the
employee’s
statement
of
earnings,
if
the
employee
chooses,
29
is
in
compliance
with
this
subsection.
30
Sec.
6.
Section
91A.8,
Code
2014,
is
amended
to
read
as
31
follows:
32
91A.8
Damages
recoverable
by
an
employee.
33
When
it
has
been
shown
that
an
employer
has
intentionally
34
failed
to
pay
an
employee
wages
or
reimburse
expenses
pursuant
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to
section
91A.3
,
whether
as
the
result
of
a
wage
dispute
or
1
otherwise,
the
employer
shall
be
liable
to
the
employee
for
2
any
the
unpaid
wages
or
unreimbursed
expenses
that
are
so
3
intentionally
failed
to
be
paid
or
reimbursed
,
plus
liquidated
4
damages,
court
costs
,
and
any
attorney’s
attorney
fees
incurred
5
in
recovering
the
unpaid
wages
or
unreimbursed
expenses
6
and
determined
to
have
been
usual
and
necessary.
In
other
7
instances
the
employer
shall
be
liable
only
for
unpaid
wages
or
8
expenses,
court
costs
and
usual
and
necessary
attorney’s
fees
9
incurred
in
recovering
the
unpaid
wages
or
expenses.
10
Sec.
7.
Section
91A.10,
subsection
5,
Code
2014,
is
amended
11
to
read
as
follows:
12
5.
An
employer
shall
not
discharge
or
in
any
other
manner
13
discriminate
against
any
employee
because
the
employee
has
14
filed
a
complaint,
assigned
a
claim,
or
brought
an
action
under
15
this
section
or
has
cooperated
in
bringing
any
action
against
16
an
employer.
17
5.
a.
An
employer
or
other
person
shall
not
discharge
or
18
in
any
other
manner
discriminate
or
retaliate
against
any
of
19
the
following:
20
(1)
An
employee
or
other
person
for
exercising
any
right
21
provided
under
this
chapter
or
any
rules
adopted
pursuant
to
22
this
chapter.
23
(2)
Another
employee
or
person
for
providing
assistance
to
24
an
employee
or
providing
information
regarding
the
employee
or
25
person.
26
(3)
Another
employee
or
person
for
testifying
or
planning
27
to
testify
in
any
investigation
or
proceeding
regarding
the
28
employee
or
person.
29
b.
Taking
adverse
action
against
an
employee
or
other
person
30
within
ninety
days
of
an
employee’s
or
other
person’s
engaging
31
in
any
of
the
activities
in
paragraph
“a”
raises
a
presumption
32
that
such
action
was
retaliation,
which
may
be
rebutted
by
33
evidence
that
such
action
was
taken
for
other
permissible
34
reasons.
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c.
Any
employee
may
file
a
complaint
with
the
commissioner
1
alleging
discharge
,
or
discrimination
,
or
retaliation
within
2
thirty
days
after
such
violation
occurs.
Upon
receipt
of
the
3
complaint,
the
commissioner
shall
cause
an
investigation
to
be
4
made
to
the
extent
deemed
appropriate.
If
the
commissioner
5
determines
from
the
investigation
that
the
provisions
of
this
6
subsection
have
been
violated,
the
commissioner
shall
bring
7
an
action
in
the
appropriate
district
court
against
such
8
person.
The
district
court
shall
have
jurisdiction,
for
cause
9
shown,
to
restrain
violations
of
this
subsection
and
order
all
10
appropriate
relief
including
rehiring
or
reinstatement
of
the
11
employee
to
the
former
position
with
back
pay.
12
Sec.
8.
Section
91A.10,
Code
2014,
is
amended
by
adding
the
13
following
new
subsection:
14
NEW
SUBSECTION
.
6.
A
civil
action
to
enforce
subsection
5
15
may
also
be
maintained
in
any
court
of
competent
jurisdiction
16
by
the
commissioner
or
by
any
party
injured
by
a
violation
17
of
subsection
5.
An
employer
or
other
person
who
retaliates
18
against
an
employee
or
other
person
in
violation
of
subsection
19
5
shall
be
required
to
pay
the
employee
or
other
person
20
an
amount
set
by
the
commissioner
or
a
court
sufficient
to
21
compensate
the
employee
or
other
person
and
to
deter
future
22
violations,
but
not
less
than
one
hundred
fifty
dollars
for
23
each
day
that
the
violation
occurred.
24
Sec.
9.
NEW
SECTION
.
91A.15
Commissions
earned
date.
25
An
employer
shall
not
require
that
a
person
be
a
current
26
employee
to
be
paid
a
commission
that
the
person
otherwise
27
earned.
28
Sec.
10.
EFFECTIVE
DATE.
This
Act
takes
effect
January
1,
29
2015.
30
EXPLANATION
31
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
32
the
explanation’s
substance
by
the
members
of
the
general
assembly.
33
This
bill
relates
to
employers
and
individuals
who
perform
34
labor
and
wage
payment
collection.
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Code
section
91A.5
is
amended
to
provide
that
the
employer
1
has
the
burden
to
establish
that
a
deduction
from
employees’
2
wages
is
lawful
and
that
the
employer
must
obtain
written
3
authorization
for
the
deduction
from
the
employee
in
advance.
4
Code
section
91A.6(1)
is
amended
to
remove
the
requirement
5
that
an
employer
be
notified
by
the
division
of
labor
services
6
of
the
department
of
workforce
development
before
the
employer
7
is
required
to
fulfill
the
requirements
in
subsection
1
8
relating
to
employee
wage
and
benefit
information.
In
new
9
Code
section
91A.6(1)(b),
the
employer
is
required
to
notify
10
employees
in
writing
whose
wages
are
determined
based
on
11
a
task,
piece,
mile,
or
load
basis
about
the
method
used
12
to
calculate
wages,
when
wages
are
earned.
Code
section
13
91A.6(1)(e)
is
amended
to
establish
a
rebuttable
presumption
14
that
an
employer
did
not
pay
the
minimum
wage
if
the
employer
15
does
not
maintain
proper
payroll
records.
16
Current
Code
section
91A.6(2),
setting
out
certain
employer
17
compliance
procedures,
is
stricken.
18
Code
section
91A.6(4)
is
amended
so
that
the
employer
19
must
send
to
each
employee
by
mail,
or
at
the
place
of
20
business
during
the
employee’s
working
hours
a
statement
of
21
the
employee’s
earnings,
deductions
made,
and
as
applicable
22
the
following:
for
an
employee
paid
hourly,
the
number
of
23
hours
worked
during
the
pay
period;
for
an
employee
paid
on
a
24
percentage
of
sales
or
revenue
generated,
a
list
of
sales
or
25
amount
of
revenue
during
the
pay
period;
and
for
an
employee
26
paid
based
on
the
number
of
miles
or
loads
performed,
the
27
applicable
number
performed
during
the
pay
period.
An
employer
28
who
provides
an
electronic
statement
and
gives
employees
free
29
and
unrestricted
access
to
print
out
the
statement
is
in
30
compliance
with
the
Code
section.
31
In
Code
section
91A.8,
when
any
specified
violation
of
Code
32
chapter
91A
occurs,
even
if
unintentional,
an
employer
shall
be
33
liable
for
unpaid
wages
or
expenses
plus
liquidated
damages,
34
court
costs,
and
attorney
fees
incurred
in
recovering
wages.
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Code
section
91A.10(5),
which
covers
retaliatory
actions
1
by
employers
or
others,
is
expanded
to
cover
persons
other
2
than
employees
who
act
under
Code
chapter
91A
with
respect
3
to
an
employee.
A
90-day
period
is
established
during
which
4
any
action
against
an
employee
or
other
person
is
rebuttably
5
presumed
to
be
retaliatory.
New
subsection
6
is
created
in
6
Code
section
91A.10
to
allow
the
commissioner
or
any
injured
7
party
to
maintain
a
civil
action
in
any
court
of
proper
8
jurisdiction.
An
employer
who
retaliates
against
an
employee
9
or
other
person
shall
compensate
the
injured
party
an
amount
10
set
by
the
commissioner
or
the
court,
but
not
less
than
$150
11
for
each
day
of
the
violation.
12
In
new
Code
section
91A.15,
an
employer
shall
not
require
13
that
an
individual
be
a
current
employee
to
be
paid
an
earned
14
commission.
15
The
bill
takes
effect
January
1,
2015.
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