Bill Text: IA HF121 | 2017-2018 | 87th General Assembly | Introduced
Bill Title: A bill for an act relating to employee leave by providing for time off and vacation leave, making penalties applicable, and including effective date and applicability provisions.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2017-01-31 - Subcommittee: Watts, Hunter and Klein. H.J. 167. [HF121 Detail]
Download: Iowa-2017-HF121-Introduced.html
House File 121 - Introduced HOUSE FILE BY HUNTER A BILL FOR 1 An Act relating to employee leave by providing for time off and 2 vacation leave, making penalties applicable, and including 3 effective date and applicability provisions. 4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: TLSB 1950YH (2) 87 je/rj PAG LIN 1 1 Section 1. Section 91A.2, Code 2017, is amended by adding 1 2 the following new subsection: 1 3 NEW SUBSECTION. 6A. "Paid time off" means a benefit 1 4 provided by an employer that allows an employee to take time 1 5 off from work with pay without regard to the reason the 1 6 employee chooses to take the time off. 1 7 Sec. 2. Section 91A.2, subsection 7, paragraph b, Code 2017, 1 8 is amended to read as follows: 1 9 b. Vacation, holiday, paid time off, sick leave, and 1 10 severance payments which are due an employee under an agreement 1 11 with the employer or under a policy or practice of the 1 12 employer. 1 13 Sec. 3. Section 91A.4, Code 2017, is amended by striking the 1 14 section and inserting in lieu thereof the following: 1 15 91A.4 Employment suspension or termination ==== calculation and 1 16 payment of wages. 1 17 1. If the employment of an employee is suspended or 1 18 terminated, an employee's employer shall pay all wages 1 19 earned by the employee up to the time of the suspension or 1 20 termination, less any lawful deductions specified in section 1 21 91A.5, no later than the next regular payday after suspension 1 22 or termination, except as follows: 1 23 a. Earned wages that are the difference between a credit 1 24 paid against wages determined on a commission basis and the 1 25 wages actually earned on a commission basis shall be paid 1 26 by the employer not more than thirty days after the date of 1 27 suspension or termination. 1 28 b. If while employed, an employee earned paid time off 1 29 but did not earn vacation, an employer may reduce pay for 1 30 accumulated paid time off by up to one=third. 1 31 c. If while employed, an employee earned both vacation pay 1 32 and paid time off, payment for accrued paid time off is not 1 33 required. 1 34 2. An employer shall not adopt a policy or practice of 1 35 denying payment for vacation or for paid time off upon the 2 1 suspension or termination of an employee's employment unless 2 2 the employee's employment was terminated by the employer 2 3 for misconduct as defined in the rules of the department of 2 4 workforce development pursuant to section 96.5, subsection 2. 2 5 3. Except as provided in subsection 1, upon suspension or 2 6 termination of an employee's employment, the amount of pay owed 2 7 for accrued paid time off or accrued vacation shall be the 2 8 amount of pay the employee would have received if the employee 2 9 had not been suspended or terminated and had begun taking the 2 10 total amount of accrued paid time off or accrued vacation on 2 11 the date the suspension or termination occurred. 2 12 Sec. 4. EFFECTIVE UPON ENACTMENT. This Act, being deemed of 2 13 immediate importance, takes effect upon enactment. 2 14 Sec. 5. APPLICABILITY. This Act applies only to the 2 15 suspension or termination of an employee's employment that 2 16 takes place on or after the effective date of this Act. 2 17 EXPLANATION 2 18 The inclusion of this explanation does not constitute agreement with 2 19 the explanation's substance by the members of the general assembly. 2 20 This bill provides employee leave by providing for time off 2 21 and vacation leave. The bill relates to payments for accrued 2 22 vacation time and for accrued paid time off for all employees 2 23 who are terminated or suspended. 2 24 Current law requires an employer to pay accrued vacation pay 2 25 to a terminated or suspended employee only if the employer has 2 26 a policy, procedure, or contract that requires the employer to 2 27 do so. 2 28 The bill defines "paid time off" as a benefit allowing an 2 29 employee to take time off from work with pay without regard to 2 30 the reason the employee chooses to take the time off. "Paid 2 31 time off" is also added to the definition of "wages". 2 32 The bill provides that if an employee is suspended or 2 33 terminated, upon request the employer must pay all earned 2 34 wages, now including paid time off, by the next regular payday. 2 35 The bill provides for an employee who earned paid time off 3 1 while employed but did not earn vacation, that the employer may 3 2 reduce the pay for the accrued paid time off by one=third. For 3 3 an employee who earned both vacation and paid time off while 3 4 employed, the employer is not required to make payment for the 3 5 paid time off. 3 6 An employer shall not adopt a policy or practice to deny 3 7 payment for accrued vacation or accrued paid time off upon the 3 8 suspension or termination of an employee unless the employee's 3 9 employment ended due to misconduct. Misconduct is defined in 3 10 the department of workforce development's administrative rules. 3 11 The bill provides for the calculation and payment of an 3 12 employee's accrued paid time off or vacation if the employee 3 13 is suspended or terminated. The amount of such pay owed to an 3 14 employee is the amount of pay equal to the accrued vacation or 3 15 paid time off as if the employee began taking the vacation or 3 16 paid time off the day the suspension or termination took place, 3 17 unless otherwise provided in the bill. 3 18 Unpaid wages or expenses, along with liquidated damages, 3 19 court costs, and attorney's fees, may be recovered by the 3 20 employee or the commissioner by civil action under Code chapter 3 21 91A. An employer who violates Code chapter 91A is also subject 3 22 to a civil penalty of not more than $500 per pay period for each 3 23 violation. 3 24 The bill takes effect upon enactment. The bill is made 3 25 applicable only to the suspension or termination of an 3 26 employee's employment that occurs on or after that date. LSB 1950YH (2) 87 je/rj
