House File 41 - Introduced HOUSE FILE BY HUNTER A BILL FOR 1 An Act requiring employers to provide employees with meal 2 periods and rest periods and providing penalties. 3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: TLSB 1274YH (3) 86 je/rj PAG LIN 1 1 Section 1. Section 84A.5, subsection 4, Code 2015, is 1 2 amended to read as follows: 1 3 4. The division of labor services is responsible for the 1 4 administration of the laws of this state under chapters 88, 1 5 88A, 88B, 89, 89A, 89B, 90A, 91, 91A, 91C, 91D, 91E, 91F, 92, 1 6 and 94A, and section 85.68. The executive head of the division 1 7 is the labor commissioner, appointed pursuant to section 91.2. 1 8 Sec. 2. Section 91.4, subsection 2, Code 2015, is amended 1 9 to read as follows: 1 10 2. The director of the department of workforce development, 1 11 in consultation with the labor commissioner, shall, at the 1 12 time provided by law, make an annual report to the governor 1 13 setting forth in appropriate form the business and expense of 1 14 the division of labor services for the preceding year, the 1 15 number of remedial actions taken under chapter 89A, the number 1 16 of disputes or violations processed by the division and the 1 17 disposition of the disputes or violations, and other matters 1 18 pertaining to the division which are of public interest, 1 19 together with recommendations for change or amendment of the 1 20 laws in this chapter and chapters 88, 88A, 88B, 89, 89A, 89B, 1 21 90A, 91A, 91C, 91D, 91E, 91F, 92, and 94A, and section 85.68, 1 22 and the recommendations, if any, shall be transmitted by the 1 23 governor to the first general assembly in session after the 1 24 report is filed. 1 25 Sec. 3. NEW SECTION. 91F.1 Meal and rest periods ==== 1 26 requirements. 1 27 1. As used in this chapter, unless the context otherwise 1 28 requires: 1 29 a. "Commissioner" means the labor commissioner appointed 1 30 pursuant to section 91.2. 1 31 b. "Employee" means a natural person who is employed in this 1 32 state for wages by an employer. 1 33 c. "Employer" means a person, as defined in section 4.1, 1 34 who in this state employs for wages a natural person. An 1 35 employer does not include a client, patient, customer, or 2 1 other person who obtains professional services from a licensed 2 2 person providing the services on a fee service basis or as an 2 3 independent contractor. 2 4 2. An employer shall provide an employee with appropriate 2 5 meal periods and appropriate rest periods. 2 6 a. An appropriate meal period shall be a period of not less 2 7 than thirty minutes during an employee's work period in which 2 8 an employee works at least seven hours. The meal period shall 2 9 be taken between the second and fifth hours. If an employee 2 10 works more than seven hours, the meal period shall be taken 2 11 between the third and sixth hours. 2 12 b. An appropriate rest period shall be a paid period of 2 13 not less than ten minutes during every consecutive four=hour 2 14 period of work taken by an employee approximately in the middle 2 15 of each four=hour period. The rest period is in addition to a 2 16 meal period, if applicable, and shall not be added to a meal 2 17 period or deducted from the work period to reduce the overall 2 18 length of the total work period. 2 19 3. An employer is not required to pay for a meal period 2 20 if an employee is free from work duties during the employee's 2 21 entire meal period. An employee shall be paid for the meal 2 22 period if any of the following occur: 2 23 a. The employee is required or allowed to remain on duty. 2 24 b. The employee is required to be on=call at the work 2 25 premises or designated worksite to be available to return to 2 26 duty even if the employee is not called back to duty. 2 27 c. The employee is called back to duty during the employee's 2 28 meal period even though the employee is not usually on=call 2 29 during the meal period. 2 30 Sec. 4. NEW SECTION. 91F.2 Meal and rest periods ==== 2 31 exemptions. 2 32 1. Meal and rest period requirements may be modified by the 2 33 terms of a collective bargaining agreement if the collective 2 34 bargaining agreement entered into by the employees prescribes 2 35 specific terms concerning meal periods and rest periods. 3 1 2. Meal and rest period requirements apply to hourly paid 3 2 and salary=paid employees. Management or employees involved 3 3 in agricultural jobs are not required to have breaks or meal 3 4 breaks. For the purposes of this section, agricultural jobs do 3 5 not include work in the production of seed, limited to removal 3 6 of off=type plants and corn tassels and hand=pollinating during 3 7 the months of June, July, and August by persons ages fourteen 3 8 and older. 3 9 3. Meal period requirements may be waived when an employer 3 10 can show that the ordinary nature and circumstance of the 3 11 work prevented the employer from establishing and maintaining 3 12 a regularly scheduled meal period. The factors that may be 3 13 considered regarding the waiver of the requirements are limited 3 14 to the following: 3 15 a. The safety and health needs of employees, patients, 3 16 clients, and the public. 3 17 b. The lack of other employees available to provide relief 3 18 to an employee. 3 19 c. The cost involved in shutdown and startup of machinery in 3 20 continuous operation of the industrial process. 3 21 d. The intermittent and unpredictable workflow not 3 22 controlled by the employer or employee. 3 23 e. Unforeseeable equipment failures, emergencies, or acts 3 24 of nature that require immediate and uninterrupted attention 3 25 by an employee. 3 26 Sec. 5. NEW SECTION. 91F.3 Civil penalties. 3 27 1. Any employer who violates the provisions of this chapter 3 28 or the rules adopted pursuant to this chapter is subject to a 3 29 civil penalty of not more than one hundred dollars for each 3 30 violation. The commissioner may recover the civil penalty 3 31 according to subsections 2 through 5. Any civil penalty 3 32 recovered shall be deposited in the general fund of the state. 3 33 2. The commissioner may propose that an employer be assessed 3 34 a civil penalty by serving the employer with notice of such 3 35 proposal in the same manner as an original notice is served 4 1 under the rules of civil procedure. Upon service of such 4 2 notice, the proposed assessment shall be treated as a contested 4 3 case under chapter 17A. However, an employer must request a 4 4 hearing within thirty days of being served. 4 5 3. If an employer does not request a hearing pursuant 4 6 to subsection 2 or if the commissioner determines, after an 4 7 appropriate hearing, that an employer is in violation of this 4 8 chapter or the rules adopted pursuant to this chapter, the 4 9 commissioner shall assess a civil penalty which is consistent 4 10 with the provisions of subsection 1 and which is rendered with 4 11 due consideration for the penalty amount in terms of the size 4 12 of the employer's business, the gravity of the violation, 4 13 the good faith of the employer, and the history of previous 4 14 violations. 4 15 4. An employer may seek judicial review of any assessment 4 16 rendered under subsection 3 by instituting proceedings for 4 17 judicial review pursuant to chapter 17A. However, such 4 18 proceedings must be instituted in the district court of the 4 19 county in which the violation or one of the violations occurred 4 20 and within thirty days of the day on which the employer was 4 21 notified that an assessment has been rendered. Also, an 4 22 employer may be required, at the discretion of the district 4 23 court and upon instituting such proceedings, to deposit the 4 24 amount assessed with the clerk of the district court. Any 4 25 moneys so deposited shall either be returned to the employer 4 26 or be forwarded to the commissioner for deposit in the general 4 27 fund of the state, depending on the outcome of the judicial 4 28 review, including any appeal to the supreme court. 4 29 5. After the time for seeking judicial review has expired 4 30 or after all judicial review has been exhausted and the 4 31 commissioner's assessment has been upheld, the commissioner 4 32 shall request the attorney general to recover the assessed 4 33 penalties in a civil action. 4 34 Sec. 6. NEW SECTION. 91F.4 Duties and authority of 4 35 commissioner. 5 1 1. The commissioner shall provide further exemptions from 5 2 the provisions in this chapter when reasonable. 5 3 2. In order to carry out the purposes of this chapter, 5 4 the labor commissioner or the commissioner's designee, upon 5 5 presenting appropriate credentials to the employer or agent of 5 6 the employer, may do any of the following: 5 7 a. Inspect employment records relating to meal and rest 5 8 periods for employees. 5 9 b. Interview an employer or employee or an agent of 5 10 the employer or employee, during working hours or at other 5 11 reasonable times. 5 12 EXPLANATION 5 13 The inclusion of this explanation does not constitute agreement with 5 14 the explanation's substance by the members of the general assembly. 5 15 This bill creates a new Code chapter 91F that requires an 5 16 employer to provide an employee with appropriate meal periods 5 17 and appropriate rest periods. 5 18 The bill states that an appropriate meal period shall be not 5 19 less than 30 minutes during an employee's work period of at 5 20 least seven hours. The meal period is to be taken between the 5 21 second and fifth hours of the work or, if the employee works 5 22 more than seven hours, between the third and sixth hours. 5 23 The bill states that an appropriate rest period shall be a 5 24 paid period of not less than 10 minutes during every four=hour 5 25 work period. The rest period is taken in the middle of the work 5 26 period. The rest period is in addition to the meal period and 5 27 cannot be added to the meal period or deducted from the work 5 28 period to reduce the overall length of the total work period. 5 29 The bill defines an "employee" as a natural person who is 5 30 employed in this state for wages by an employer. An "employer" 5 31 is defined as a person, as defined in Code section 4.1, who 5 32 employs a natural person for wages. 5 33 The bill provides that an employer is not required to pay for 5 34 a meal period if an employee is free from work duties during 5 35 the employee's entire meal period. 6 1 The bill allows three exemptions to the meal and rest period 6 2 requirements. The first exemption is if the meal and rest 6 3 period requirements are modified by the terms of a collective 6 4 bargaining agreement. However, the exemption is valid only 6 5 if the collective bargaining agreement entered into by the 6 6 employees prescribes specific terms concerning meal periods and 6 7 rest periods. 6 8 The second exemption states that meal and rest period 6 9 requirements apply to hourly paid and salary=paid employees. 6 10 However, management or employees involved in certain 6 11 agricultural jobs are not required to have breaks or meal 6 12 breaks. 6 13 The third exemption is when an employer can show that the 6 14 ordinary nature and circumstance of the work prevented the 6 15 employer from establishing and maintaining a regular scheduled 6 16 meal period. 6 17 The bill provides civil penalties for violating the new 6 18 Code chapter. An employer who violates the provisions shall 6 19 be subject to a penalty of up to $100 for each violation. The 6 20 labor commissioner may recover the penalties under Code chapter 6 21 17A contested case procedures. Any penalties recovered shall 6 22 be deposited in the general fund of the state. 6 23 The commissioner may propose that an employer be assessed a 6 24 penalty by serving the employer with notice of a penalty in the 6 25 same manner as an original notice is served under the rules of 6 26 civil procedure. 6 27 The bill provides the labor commissioner with the authority 6 28 to provide further exemptions from new Code chapter 91F when 6 29 reasonable. Also, the labor commissioner or the commissioner's 6 30 designee may inspect employment records relating to rest 6 31 periods for employees and interview an employer or employee or 6 32 an agent of the employer or employee, during working hours or 6 33 at other reasonable times.