Iowa-2017-HF282-Introduced
House File 282 - Introduced
HOUSE FILE
BY ANDERSON
A BILL FOR
1 An Act providing for an increase in the state minimum hourly
2 wage and subsequent increases by the same percentage as the
3 increase in the midwest consumer price index and increasing
4 the tip threshold for the state minimum hourly wage for
5 tipped employees.
6 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
TLSB 2015HH (6) 87
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PAG LIN
1 1 Section 1. Section 91D.1, subsection 1, paragraphs a, c, and
1 2 d, Code 2017, are amended to read as follows:
1 3 a. (1) The state hourly wage shall be at least $6.20 as
1 4 of April 1, 2007, and $7.25 as of January 1, 2008 $8.75 as of
1 5 July 1, 2017, $10.50 as of July 1, 2018, and $12.00 as of July
1 6 1, 2019.
1 7 (2) The state hourly wage, including the state hourly wage
1 8 for the first ninety calendar days of employment provided in
1 9 paragraph "d", shall be increased annually on July 1, beginning
1 10 July 1, 2020, by the same percentage as the increase in the
1 11 consumer price index for all urban consumers for the midwest
1 12 region for the previous calendar year, if any, as determined
1 13 by the United States department of labor, bureau of labor
1 14 statistics, or a successor index. In no case shall the state
1 15 hourly wage, including the state hourly wage for the first
1 16 ninety calendar days of employment provided in paragraph "d", be
1 17 decreased pursuant to this subparagraph.
1 18 c. For purposes of determining whether an employee of a
1 19 restaurant, hotel, motel, inn, or cabin, who customarily and
1 20 regularly receives more than thirty fifty dollars a month in
1 21 tips is receiving the minimum hourly wage rate prescribed by
1 22 this section, the amount paid the employee by the employer
1 23 shall be deemed to be increased on account of the tips by an
1 24 amount determined by the employer, not to exceed forty percent
1 25 of the applicable minimum wage. An employee may file a written
1 26 appeal with the labor commissioner if the amount of tips
1 27 received by the employee is less than the amount determined by
1 28 the employer under this subsection.
1 29 d. An employer is not required to pay an employee the
1 30 applicable state hourly wage provided in paragraph "a" until the
1 31 employee has completed ninety calendar days of employment with
1 32 the employer. An employee who has completed ninety calendar
1 33 days of employment with the employer prior to April 1, 2007, or
1 34 January 1, 2008, shall earn the applicable state hourly minimum
1 35 wage as of that the date of completion. An employer shall
2 1 pay an employee who has not completed ninety calendar days of
2 2 employment with the employer an hourly wage of at least $5.30
2 3 as of April 1, 2007, and $6.35 as of January 1, 2008 $7.50 as of
2 4 July 1, 2017, $8.50 as of July 1, 2018, and $10.00 as of July
2 5 1, 2019.
2 6 EXPLANATION
2 7 The inclusion of this explanation does not constitute agreement with
2 8 the explanation's substance by the members of the general assembly.
2 9 This bill increases the state minimum hourly wage to $8.75
2 10 as of July 1, 2017, $10.50 as of July 1, 2018, and $12.00 as
2 11 of July 1, 2019. The bill increases the state minimum hourly
2 12 wage for employees employed for less than 90 days to $7.50 as
2 13 of July 1, 2017, $8.50 as of July 1, 2018, and $10.00 as of July
2 14 1, 2019.
2 15 The bill increases from $30 to $50 the amount of money an
2 16 employee of a restaurant, hotel, motel, inn, or cabin must
2 17 receive in tips in order to be covered by the state minimum
2 18 wage for tipped employees. If an employee is covered by the
2 19 state minimum wage for tipped employees, 40 percent of the
2 20 state minimum wage for the employee may be considered to be
2 21 received by tips. The remainder of the minimum wage must be
2 22 paid by the employer.
2 23 The bill also increases the state minimum hourly wage,
2 24 including the minimum hourly wage established for employees
2 25 employed for less than 90 days, annually on July 1, beginning
2 26 July 1, 2020, by the same percentage as the increase in the
2 27 consumer price index for all urban consumers for the midwest
2 28 region for the previous calendar year, if any, as determined
2 29 by the United States department of labor, bureau of labor
2 30 statistics, or a successor index. In no case shall the state
2 31 hourly wage, including the state hourly wage for the first 90
2 32 calendar days of employment, be decreased pursuant to this
2 33 provision.
LSB 2015HH (6) 87
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