Bill Text: IA HF610 | 2017-2018 | 87th 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.
Spectrum: Partisan Bill (Democrat 14-0)
Status: (Introduced - Dead) 2017-03-22 - Introduced, referred to Labor. H.J. 714. [HF610 Detail]
Download: Iowa-2017-HF610-Introduced.html
House File 610 - Introduced HOUSE FILE BY HUNTER, OURTH, T. TAYLOR, ABDUL=SAMAD, RUNNING=MARQUARDT, STECKMAN, BROWN=POWERS, McCONKEY, WINCKLER, STAED, MILLER, MASCHER, KACENA, and KEARNS A BILL FOR 1 An Act relating to wage payment collection issues arising 2 between employers and individuals who provide services to 3 employers, providing penalties and remedies, and including 4 effective date provisions. 5 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: TLSB 1941YH (4) 87 je/rj PAG LIN 1 1 Section 1. Section 91A.5, subsection 1, unnumbered 1 2 paragraph 1, Code 2017, is amended to read as follows: 1 3 An employer shall have the burden to establish that a 1 4 deduction from employee wages is lawful. An employer shall not 1 5 withhold or divert any portion of an employee's wages unless: 1 6 Sec. 2. Section 91A.5, subsection 1, paragraph b, Code 2017, 1 7 is amended to read as follows: 1 8 b. The employerhasobtains advance written authorization 1 9 from the employee to so deduct for any lawful purpose accruing 1 10 to the benefit of the employee. 1 11 Sec. 3. Section 91A.6, subsection 1, Code 2017, is amended 1 12 to read as follows: 1 13 1. An employer shallafter being notified by the 1 14 commissioner pursuant to subsection 2do the following: 1 15 a. Notify its employees in writing at the time of hiring 1 16 what wages and regular paydays are designated by the employer. 1 17 b. Notify its employees in writing whose wages are 1 18 determined based on a task, piece, mile, or load basis about 1 19 the method used to calculate wages and when the wages are 1 20 earned by the employees. 1 21b.c. Notify, at least one pay period prior to the 1 22 initiation of any changes, its employees of any changes in 1 23 the arrangements specified in this subsection1that reduce 1 24 wages or alter the regular paydays. The notice shall either 1 25 be in writing or posted at a place where employee notices are 1 26 routinely posted. 1 27c.d. Make available to its employees upon written request, 1 28 a written statement enumerating employment agreements and 1 29 policies with regard to vacation pay, sick leave, reimbursement 1 30 for expenses, retirement benefits, severance pay, or other 1 31 comparable matters with respect to wages. Notice of such 1 32 availability shall be given to each employee in writing or by a 1 33 notice posted at a place where employee notices are routinely 1 34 posted. 1 35d.e. Establish, maintain, and preserve for three 2 1 calendar years the payroll records showing the hours worked, 2 2 wages earned, and deductions made for each employee and 2 3 any employment agreements entered into between an employer 2 4 and employee. Failure to do so shall raise a rebuttable 2 5 presumption that the employer did not pay the required minimum 2 6 wage under section 91D.1. 2 7 Sec. 4. Section 91A.6, subsection 2, Code 2017, is amended 2 8 by striking the subsection. 2 9 Sec. 5. Section 91A.6, subsection 4, Code 2017, is amended 2 10 by striking the subsection and inserting in lieu thereof the 2 11 following: 2 12 4. a. On each regular payday, the employer shall send to 2 13 each employee by mail or shall provide at the employee's normal 2 14 place of employment during normal employment hours a statement 2 15 showing the wages earned by the employee, the deductions made 2 16 for the employee, and the following information, as applicable: 2 17 (1) For each employee paid in whole or in part on an hourly 2 18 basis, the statement shall show the hours the employee worked. 2 19 (2) For each employee paid based on a percentage of sales or 2 20 based on a percentage of revenue generated for the employer, 2 21 the statement shall include a list of the amount of each sale 2 22 or the amount of revenue during the pay period. 2 23 (3) For each employee whose pay is based on the number 2 24 of miles or loads performed, the statement shall include the 2 25 applicable number performed during the pay period. 2 26 b. An employer who provides each employee access to view an 2 27 electronic statement of the employee's earnings and provides 2 28 the employee free and unrestricted access to a printer to print 2 29 the employee's statement of earnings, if the employee chooses, 2 30 is in compliance with this subsection. 2 31 Sec. 6. Section 91A.8, Code 2017, is amended to read as 2 32 follows: 2 33 91A.8 Damages recoverable by an employee. 2 34 When it has been shown that an employer hasintentionally2 35 failed to pay an employee wages or reimburse expenses pursuant 3 1 to section 91A.3, whether as the result of a wage dispute or 3 2 otherwise, the employer shall be liable to the employee for 3 3anythe unpaid wages or unreimbursed expensesthat are so 3 4 intentionally failed to be paid or reimbursed, plus liquidated 3 5 damages, court costs, and anyattorney'sattorney fees incurred 3 6 in recovering the unpaid wages or unreimbursed expenses 3 7 and determined to have been usual and necessary.In other 3 8 instances the employer shall be liable only for unpaid wages or 3 9 expenses, court costs and usual and necessary attorney's fees 3 10 incurred in recovering the unpaid wages or expenses.3 11 Sec. 7. Section 91A.10, subsection 5, Code 2017, is amended 3 12 to read as follows: 3 135. An employer shall not discharge or in any other manner 3 14 discriminate against any employee because the employee has 3 15 filed a complaint, assigned a claim, or brought an action under 3 16 this section or has cooperated in bringing any action against 3 17 an employer.3 18 5.a. An employer or other person shall not discharge or 3 19 in any other manner discriminate or retaliate against any of 3 20 the following: 3 21 (1) An employee or other person for exercising any right 3 22 provided under this chapter or any rules adopted pursuant to 3 23 this chapter. 3 24 (2) Another employee or person for providing assistance to 3 25 an employee or providing information regarding the employee or 3 26 person. 3 27 (3) Another employee or person for testifying or planning 3 28 to testify in any investigation or proceeding regarding the 3 29 employee or person. 3 30 b. Taking adverse action against an employee or other person 3 31 within ninety days of an employee's or other person's engaging 3 32 in any of the activities in paragraph "a" raises a presumption 3 33 that such action was retaliation, which may be rebutted by 3 34 evidence that such action was taken for other permissible 3 35 reasons. 4 1 c. Any employee may file a complaint with the commissioner 4 2 alleging discharge,ordiscrimination, or retaliation within 4 3 thirty days after such violation occurs. Upon receipt of the 4 4 complaint, the commissioner shall cause an investigation to be 4 5 made to the extent deemed appropriate. If the commissioner 4 6 determines from the investigation that the provisions of this 4 7 subsection have been violated, the commissioner shall bring 4 8 an action in the appropriate district court against such 4 9 person. The district court shall have jurisdiction, for cause 4 10 shown, to restrain violations of this subsection and order all 4 11 appropriate relief including rehiring or reinstatement of the 4 12 employee to the former position with back pay. 4 13 Sec. 8. Section 91A.10, Code 2017, is amended by adding the 4 14 following new subsection: 4 15 NEW SUBSECTION. 6. A civil action to enforce subsection 5 4 16 may also be maintained in any court of competent jurisdiction 4 17 by the commissioner or by any party injured by a violation 4 18 of subsection 5. An employer or other person who retaliates 4 19 against an employee or other person in violation of subsection 4 20 5 shall be required to pay the employee or other person 4 21 an amount set by the commissioner or a court sufficient to 4 22 compensate the employee or other person and to deter future 4 23 violations, but not less than one hundred fifty dollars for 4 24 each day that the violation occurred. 4 25 Sec. 9. NEW SECTION. 91A.15 Commissions earned date. 4 26 An employer shall not require that a person be a current 4 27 employee to be paid a commission that the person otherwise 4 28 earned. 4 29 Sec. 10. EFFECTIVE DATE. This Act takes effect January 1, 4 30 2018. 4 31 EXPLANATION 4 32 The inclusion of this explanation does not constitute agreement with 4 33 the explanation's substance by the members of the general assembly. 4 34 This bill relates to employers and individuals who perform 4 35 labor and wage payment collection. 5 1 Code section 91A.5 is amended to provide that the employer 5 2 has the burden to establish that a deduction from employees' 5 3 wages is lawful and that the employer must obtain written 5 4 authorization for the deduction from the employee in advance. 5 5 Code section 91A.6(1) is amended to remove the requirement 5 6 that an employer be notified by the division of labor services 5 7 of the department of workforce development before the employer 5 8 is required to fulfill the requirements in subsection 1 5 9 relating to employee wage and benefit information. In new 5 10 Code section 91A.6(1)(b), the employer is required to notify 5 11 employees in writing whose wages are determined based on a 5 12 task, piece, mile, or load basis about the method used to 5 13 calculate wages and when wages are earned. Code section 5 14 91A.6(1)(e) is amended to establish a rebuttable presumption 5 15 that an employer did not pay the minimum wage if the employer 5 16 does not maintain proper payroll records. 5 17 Current Code section 91A.6(2), setting out certain employer 5 18 compliance procedures, is stricken. 5 19 Code section 91A.6(4) is amended so that the employer 5 20 must send to each employee by mail, or at the place of 5 21 business during the employee's working hours a statement of 5 22 the employee's earnings, deductions made, and as applicable 5 23 the following: for an employee paid hourly, the number of 5 24 hours worked during the pay period; for an employee paid on a 5 25 percentage of sales or revenue generated, a list of sales or 5 26 amount of revenue during the pay period; and for an employee 5 27 paid based on the number of miles or loads performed, the 5 28 applicable number performed during the pay period. An employer 5 29 who provides an electronic statement and gives employees free 5 30 and unrestricted access to print out the statement is in 5 31 compliance with the Code section. 5 32 In amended Code section 91A.8, when any specified violation 5 33 of Code chapter 91A occurs, even if unintentional, an employer 5 34 shall be liable for unpaid wages or expenses plus liquidated 5 35 damages, court costs, and attorney fees incurred in recovering 6 1 wages. 6 2 Code section 91A.10(5), which covers retaliatory actions 6 3 by employers or others, is expanded to cover persons other 6 4 than employees who act under Code chapter 91A with respect 6 5 to an employee. A 90=day period is established during which 6 6 any action against an employee or other person is rebuttably 6 7 presumed to be retaliatory. New subsection 6 is created in 6 8 Code section 91A.10 to allow the labor commissioner or any 6 9 injured party to maintain a civil action in any court of proper 6 10 jurisdiction. An employer who retaliates against an employee 6 11 or other person shall compensate the injured party an amount 6 12 set by the labor commissioner or the court, but not less than 6 13 $150 for each day of the violation. 6 14 In new Code section 91A.15, an employer shall not require 6 15 that an individual be a current employee to be paid an earned 6 16 commission. 6 17 An employer who violates Code chapter 91A is subject to a 6 18 civil penalty of not more than $500 per pay period for each 6 19 violation. 6 20 The bill takes effect January 1, 2018. LSB 1941YH (4) 87 je/rj