House File 696 - Introduced HOUSE FILE 696 BY KONFRST , FORBES , BAGNIEWSKI , CAHILL , CROKEN , WILSON , COOLING , BAETH , LEVIN , TUREK , STAED , AMOS JR. , SCHEETZ , KURTH , NIELSEN , BUCK , WESSEL-KROESCHELL , STECKMAN , MATSON , WILBURN , JAMES , GAINES , MADISON , JACOBY , KRESSIG , EHLERT , BROWN-POWERS , B. MEYER , SRINIVAS , ISENHART , OLSON , and SCHOLTEN A BILL FOR An Act relating to enforcement of the Iowa wage payment 1 collection law. 2 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 3 TLSB 2216YH (4) 90 je/rn

H.F. 696 Section 1. Section 91.4, Code 2023, is amended by adding the 1 following new subsection: 2 NEW SUBSECTION . 7. The commissioner shall place a high 3 priority on investigation of possible violations of chapter 91A 4 and enforcement of chapter 91A. 5 Sec. 2. Section 91A.9, subsections 1 and 2, Code 2023, are 6 amended to read as follows: 7 1. The commissioner shall administer and enforce the 8 provisions of this chapter . The commissioner may shall hold 9 hearings and investigate charges of violations of this chapter . 10 2. The commissioner may, consistent with due process of law, 11 enter any place of employment to inspect records concerning 12 wages and payrolls, to question the employer and employees, and 13 to investigate such facts, conditions, or matters as are deemed 14 appropriate in determining whether any person has violated 15 the provisions of this chapter . However, such entry by the 16 commissioner shall only be in response to a written complaint. 17 Sec. 3. Section 91A.10, subsection 1, Code 2023, is amended 18 to read as follows: 19 1. Upon the written complaint of the employee involved, the 20 commissioner may determine whether wages have not been paid 21 and may constitute an enforceable claim. If for any reason 22 the commissioner decides not to make such determination, the 23 commissioner shall so notify the complaining employee within 24 fourteen days of receipt of the complaint. The commissioner 25 shall otherwise notify the employee of such determination 26 within a reasonable time and if . The commissioner may make 27 such a determination based upon the commissioner’s own 28 investigation and may initiate an investigation based on an 29 anonymous complaint or without receipt of a complaint. If 30 it is determined that there is an enforceable claim, the 31 commissioner shall, with the consent of the complaining or 32 affected employee, take an assignment in trust for the wages 33 and for any claim for liquidated damages without being bound 34 by any of the technical rules respecting the validity of the 35 -1- LSB 2216YH (4) 90 je/rn 1/ 3

H.F. 696 assignment. However, the commissioner shall not accept any 1 complaint for unpaid wages and liquidated damages after one 2 year from the date the wages became due and payable. 3 Sec. 4. Section 91A.12, subsections 1 and 2, Code 2023, are 4 amended to read as follows: 5 1. Any employer who violates the provisions of this 6 chapter or the rules promulgated under it shall be subject to 7 a civil money penalty of not more than five hundred dollars 8 per pay period for each violation. The commissioner may shall 9 recover such civil money penalty according to the provisions 10 of subsections 2 through 5 . Any civil money penalty recovered 11 shall be deposited in the general fund of the state. 12 2. The commissioner may shall propose that an employer be 13 assessed a civil money penalty by serving the employer with 14 notice of such proposal in the same manner as an original 15 notice is served under the rules of civil procedure. Upon 16 service of such notice, the proposed assessment shall be 17 treated as a contested case under chapter 17A . However, an 18 employer must request a hearing within thirty days of being 19 served. 20 EXPLANATION 21 The inclusion of this explanation does not constitute agreement with 22 the explanation’s substance by the members of the general assembly. 23 This bill relates to Code chapter 91A, the Iowa wage payment 24 collection law. 25 The bill requires the labor commissioner to place a high 26 priority on investigation of possible violations of Code 27 chapter 91A and enforcement of Code chapter 91A. The bill 28 strikes language providing that the commissioner shall only 29 enter a workplace to determine whether Code chapter 91A has 30 been violated in response to a written complaint. The bill 31 provides that the commissioner may make a determination 32 on whether Code chapter 91A has been violated based upon 33 the commissioner’s own investigation and may initiate an 34 investigation based on an anonymous complaint or without 35 -2- LSB 2216YH (4) 90 je/rn 2/ 3

H.F. 696 receipt of a complaint. The bill modifies various provisions 1 relating to enforcement of Code chapter 91A by making 2 specified actions by the commissioner mandatory rather than 3 discretionary. 4 -3- LSB 2216YH (4) 90 je/rn 3/ 3