Bill Text: IA SF107 | 2019-2020 | 88th 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 11-0)
Status: (Introduced - Dead) 2019-01-30 - Subcommittee: Brown, Carlin, and Dotzler. S.J. 197. [SF107 Detail]
Download: Iowa-2019-SF107-Introduced.html
Senate
File
107
-
Introduced
SENATE
FILE
107
BY
BOLKCOM
,
CELSI
,
R.
TAYLOR
,
BOULTON
,
WAHLS
,
LYKAM
,
J.
SMITH
,
RAGAN
,
PETERSEN
,
JOCHUM
,
and
DOTZLER
A
BILL
FOR
An
Act
relating
to
wage
payment
collection
issues
arising
1
between
employers
and
individuals
who
provide
services
to
2
employers,
providing
penalties
and
remedies,
and
including
3
effective
date
provisions.
4
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
5
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DIVISION
I
1
WAGE
PAYMENT
COLLECTION
2
Section
1.
Section
91A.5,
subsection
1,
unnumbered
3
paragraph
1,
Code
2019,
is
amended
to
read
as
follows:
4
An
employer
shall
have
the
burden
to
establish
that
a
5
deduction
from
employee
wages
is
lawful.
An
employer
shall
not
6
withhold
or
divert
any
portion
of
an
employee’s
wages
unless:
7
Sec.
2.
Section
91A.5,
subsection
1,
paragraph
b,
Code
2019,
8
is
amended
to
read
as
follows:
9
b.
The
employer
has
obtains
advance
written
authorization
10
from
the
employee
to
so
deduct
for
any
lawful
purpose
accruing
11
to
the
benefit
of
the
employee.
12
Sec.
3.
Section
91A.6,
subsection
1,
Code
2019,
is
amended
13
to
read
as
follows:
14
1.
An
employer
shall
after
being
notified
by
the
15
commissioner
pursuant
to
subsection
2
do
the
following
:
16
a.
Notify
its
employees
in
writing
at
the
time
of
hiring
17
what
wages
and
regular
paydays
are
designated
by
the
employer.
18
b.
Notify
its
employees
in
writing
whose
wages
are
19
determined
based
on
a
task,
piece,
mile,
or
load
basis
about
20
the
method
used
to
calculate
wages
and
when
the
wages
are
21
earned
by
the
employees.
22
b.
c.
Notify,
at
least
one
pay
period
prior
to
the
23
initiation
of
any
changes,
its
employees
of
any
changes
in
24
the
arrangements
specified
in
this
subsection
1
that
reduce
25
wages
or
alter
the
regular
paydays.
The
notice
shall
either
26
be
in
writing
or
posted
at
a
place
where
employee
notices
are
27
routinely
posted.
28
c.
d.
Make
available
to
its
employees
upon
written
request,
29
a
written
statement
enumerating
employment
agreements
and
30
policies
with
regard
to
vacation
pay,
sick
leave,
reimbursement
31
for
expenses,
retirement
benefits,
severance
pay,
or
other
32
comparable
matters
with
respect
to
wages.
Notice
of
such
33
availability
shall
be
given
to
each
employee
in
writing
or
by
a
34
notice
posted
at
a
place
where
employee
notices
are
routinely
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posted.
1
d.
e.
Establish,
maintain,
and
preserve
for
three
2
calendar
years
the
payroll
records
showing
the
hours
worked,
3
wages
earned,
and
deductions
made
for
each
employee
and
4
any
employment
agreements
entered
into
between
an
employer
5
and
employee.
Failure
to
do
so
shall
raise
a
rebuttable
6
presumption
that
the
employer
did
not
pay
the
required
minimum
7
wage
under
section
91D.1.
8
Sec.
4.
Section
91A.6,
subsection
2,
Code
2019,
is
amended
9
by
striking
the
subsection.
10
Sec.
5.
Section
91A.6,
subsection
4,
Code
2019,
is
amended
11
by
striking
the
subsection
and
inserting
in
lieu
thereof
the
12
following:
13
4.
a.
On
each
regular
payday,
the
employer
shall
provide
14
to
each
employee
a
statement
showing
the
wages
earned
by
15
the
employee,
the
deductions
made
for
the
employee,
and
the
16
following
information,
as
applicable:
17
(1)
For
each
employee
paid
in
whole
or
in
part
on
an
hourly
18
basis,
the
statement
shall
show
the
hours
the
employee
worked.
19
(2)
For
each
employee
paid
based
on
a
percentage
of
sales
or
20
based
on
a
percentage
of
revenue
generated
for
the
employer,
21
the
statement
shall
include
a
list
of
the
amount
of
each
sale
22
or
the
amount
of
revenue
during
the
pay
period.
23
(3)
For
each
employee
whose
pay
is
based
on
the
number
24
of
miles
or
loads
performed,
the
statement
shall
include
the
25
applicable
number
performed
during
the
pay
period.
26
b.
The
employer
shall
provide
the
statement
using
one
of
the
27
following
methods:
28
(1)
Sending
the
statement
to
an
employee
by
mail.
29
(2)
Providing
the
statement
to
an
employee
by
secure
30
electronic
transmission
or
by
other
secure
electronic
means.
31
If
an
employee
is
unable
to
receive
the
statement
by
this
32
method,
the
employee
shall
notify
the
employer
in
writing
at
33
least
one
pay
period
in
advance,
and
the
employer
shall
provide
34
the
statement
by
one
of
the
other
methods
listed
in
this
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paragraph
“b”
.
1
(3)
Providing
the
statement
to
the
employee
at
the
2
employee’s
normal
place
of
employment
during
normal
employment
3
hours.
4
(4)
Providing
each
employee
access
to
view
a
statement
5
of
the
employee’s
earnings
electronically
and
providing
the
6
employee
free
and
unrestricted
access
to
a
printer
to
print
the
7
statement.
8
Sec.
6.
Section
91A.8,
Code
2019,
is
amended
to
read
as
9
follows:
10
91A.8
Damages
recoverable
by
an
employee.
11
When
it
has
been
shown
that
an
employer
has
intentionally
12
failed
to
pay
an
employee
wages
or
reimburse
expenses
pursuant
13
to
section
91A.3
,
whether
as
the
result
of
a
wage
dispute
or
14
otherwise,
the
employer
shall
be
liable
to
the
employee
for
15
any
the
unpaid
wages
or
unreimbursed
expenses
that
are
so
16
intentionally
failed
to
be
paid
or
reimbursed
,
plus
liquidated
17
damages,
court
costs
,
and
any
attorney’s
attorney
fees
incurred
18
in
recovering
the
unpaid
wages
or
unreimbursed
expenses
19
and
determined
to
have
been
usual
and
necessary.
In
other
20
instances
the
employer
shall
be
liable
only
for
unpaid
wages
or
21
expenses,
court
costs
and
usual
and
necessary
attorney’s
fees
22
incurred
in
recovering
the
unpaid
wages
or
expenses.
23
Sec.
7.
Section
91A.9,
subsection
3,
Code
2019,
is
amended
24
to
read
as
follows:
25
3.
The
commissioner
may
employ
such
qualified
personnel
26
as
are
necessary
for
the
enforcement
of
this
chapter
.
Such
27
personnel
shall
be
employed
pursuant
to
chapter
8A,
subchapter
28
IV
.
The
commissioner
shall
employ
wage
investigators
for
the
29
enforcement
of
this
chapter.
30
Sec.
8.
Section
91A.9,
Code
2019,
is
amended
by
adding
the
31
following
new
subsection:
32
NEW
SUBSECTION
.
4A.
The
commissioner
shall
establish
a
33
statewide,
toll-free
telephone
hotline
for
the
purpose
of
34
receiving
reports
of
violations
of
this
chapter.
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Sec.
9.
Section
91A.10,
subsection
5,
Code
2019,
is
amended
1
to
read
as
follows:
2
5.
An
employer
shall
not
discharge
or
in
any
other
manner
3
discriminate
against
any
employee
because
the
employee
has
4
filed
a
complaint,
assigned
a
claim,
or
brought
an
action
under
5
this
section
or
has
cooperated
in
bringing
any
action
against
6
an
employer.
7
5.
a.
An
employer
or
other
person
shall
not
discharge
or
8
in
any
other
manner
discriminate
or
retaliate
against
any
of
9
the
following:
10
(1)
An
employee
or
other
person
for
exercising
any
right
11
provided
under
this
chapter
or
any
rules
adopted
pursuant
to
12
this
chapter.
13
(2)
Another
employee
or
person
for
providing
assistance
to
14
an
employee
or
providing
information
regarding
the
employee
or
15
person.
16
(3)
Another
employee
or
person
for
testifying
or
planning
17
to
testify
in
any
investigation
or
proceeding
regarding
the
18
employee
or
person.
19
b.
Taking
adverse
action
against
an
employee
or
other
person
20
within
ninety
days
of
an
employee’s
or
other
person’s
engaging
21
in
any
of
the
activities
in
paragraph
“a”
raises
a
presumption
22
that
such
action
was
retaliation,
which
may
be
rebutted
by
23
evidence
that
such
action
was
taken
for
other
permissible
24
reasons.
25
c.
Any
employee
may
file
a
complaint
with
the
commissioner
26
alleging
discharge
,
or
discrimination
,
or
retaliation
within
27
thirty
days
after
such
violation
occurs.
Upon
receipt
of
the
28
complaint,
the
commissioner
shall
cause
an
investigation
to
be
29
made
to
the
extent
deemed
appropriate.
If
the
commissioner
30
determines
from
the
investigation
that
the
provisions
of
this
31
subsection
have
been
violated,
the
commissioner
shall
bring
32
an
action
in
the
appropriate
district
court
against
such
33
person.
The
district
court
shall
have
jurisdiction,
for
cause
34
shown,
to
restrain
violations
of
this
subsection
and
order
all
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appropriate
relief
including
rehiring
or
reinstatement
of
the
1
employee
to
the
former
position
with
back
pay.
2
Sec.
10.
Section
91A.10,
Code
2019,
is
amended
by
adding
the
3
following
new
subsection:
4
NEW
SUBSECTION
.
6.
A
civil
action
to
enforce
subsection
5
5
may
also
be
maintained
in
any
court
of
competent
jurisdiction
6
by
the
commissioner
or
by
any
party
injured
by
a
violation
7
of
subsection
5.
An
employer
or
other
person
who
retaliates
8
against
an
employee
or
other
person
in
violation
of
subsection
9
5
shall
be
required
to
pay
the
employee
or
other
person
10
an
amount
set
by
the
commissioner
or
a
court
sufficient
to
11
compensate
the
employee
or
other
person
and
to
deter
future
12
violations,
but
not
less
than
one
hundred
fifty
dollars
for
13
each
day
that
the
violation
occurred.
14
Sec.
11.
NEW
SECTION
.
91A.12A
Erroneous
violations.
15
If
an
employer
erroneously
violates
the
provisions
of
this
16
chapter
or
the
rules
adopted
pursuant
to
this
chapter,
the
17
employer
shall
not
be
subject
to
liability
to
an
employee
18
pursuant
to
section
91A.8,
the
violation
shall
not
constitute
19
an
enforceable
claim
as
provided
in
section
91A.10,
and
the
20
employer
shall
not
be
subject
to
a
civil
money
penalty
pursuant
21
to
section
91A.12,
if
all
of
the
following
conditions
are
met:
22
a.
The
commissioner
determines
that
the
violation
was
23
erroneous
and
that
the
employer
attempted
in
good
faith
to
24
comply
with
the
provisions
of
this
chapter
and
the
rules
25
adopted
pursuant
to
this
chapter.
26
b.
The
commissioner,
after
considering
any
history
of
27
violations
of
this
chapter
or
the
rules
adopted
pursuant
to
28
this
chapter
by
the
employer,
determines
that
the
violation
was
29
isolated
in
nature.
30
c.
The
employer
corrects
the
violation
to
the
satisfaction
31
of
the
labor
commissioner
within
fourteen
days
of
the
32
occurrence
of
the
violation.
33
Sec.
12.
NEW
SECTION
.
91A.15
Commissions
earned
date.
34
An
employer
shall
not
require
that
a
person
be
a
current
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employee
to
be
paid
a
commission
that
the
person
otherwise
1
earned.
2
Sec.
13.
NEW
SECTION
.
91A.16
Inconsistency
with
federal
3
law.
4
A
provision
of
this
chapter
shall
not
apply
to
any
employer
5
or
employee
if
such
provision
would
conflict
with
federal
law
6
or
regulation.
7
Sec.
14.
EFFECTIVE
DATE.
This
division
of
this
Act
takes
8
effect
January
1,
2020.
9
DIVISION
II
10
NOTIFICATION
REQUIREMENTS
11
Sec.
15.
NOTIFICATION
REQUIREMENTS.
The
labor
commissioner
12
shall
provide
for
the
notification
of
each
employer
in
this
13
state
of
the
requirements
for
employers
provided
in
this
Act
by
14
September
2,
2019.
Such
notification
shall
include
suggested
15
forms
and
procedures
that
employers
may
use
for
purposes
of
16
compliance
with
the
notice
and
recordkeeping
requirements
of
17
section
91A.6,
as
amended
by
this
Act.
18
EXPLANATION
19
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
20
the
explanation’s
substance
by
the
members
of
the
general
assembly.
21
This
bill
relates
to
employers
and
individuals
who
perform
22
labor
and
wage
payment
collection.
23
Code
section
91A.5
is
amended
to
provide
that
the
employer
24
has
the
burden
to
establish
that
a
deduction
from
employees’
25
wages
is
lawful
and
that
the
employer
must
obtain
written
26
authorization
for
the
deduction
from
the
employee
in
advance.
27
Code
section
91A.6(1)
is
amended
to
remove
the
requirement
28
that
an
employer
be
notified
by
the
division
of
labor
services
29
of
the
department
of
workforce
development
before
the
employer
30
is
required
to
fulfill
the
requirements
in
subsection
1
31
relating
to
employee
wage
and
benefit
information.
In
new
32
Code
section
91A.6(1)(b),
the
employer
is
required
to
notify
33
employees
in
writing
whose
wages
are
determined
based
on
a
34
task,
piece,
mile,
or
load
basis
about
the
method
used
to
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calculate
wages
and
when
wages
are
earned.
Code
section
1
91A.6(1)(e)
is
amended
to
establish
a
rebuttable
presumption
2
that
an
employer
did
not
pay
the
minimum
wage
if
the
employer
3
does
not
maintain
proper
payroll
records.
4
Current
Code
section
91A.6(2),
setting
out
certain
employer
5
compliance
procedures,
is
stricken.
6
Code
section
91A.6(4)
is
amended
so
that
the
employer
7
must
provide
to
each
employee
a
statement
of
the
employee’s
8
earnings,
deductions
made,
and
as
applicable
the
following:
9
for
an
employee
paid
hourly,
the
number
of
hours
worked
during
10
the
pay
period;
for
an
employee
paid
on
a
percentage
of
sales
11
or
revenue
generated,
a
list
of
sales
or
amount
of
revenue
12
during
the
pay
period;
and
for
an
employee
paid
based
on
the
13
number
of
miles
or
loads
performed,
the
applicable
number
14
performed
during
the
pay
period.
15
In
amended
Code
section
91A.8,
when
any
specified
violation
16
of
Code
chapter
91A
occurs,
even
if
unintentional,
an
employer
17
shall
be
liable
for
unpaid
wages
or
expenses
plus
liquidated
18
damages,
court
costs,
and
attorney
fees
incurred
in
recovering
19
wages.
20
The
bill
amends
Code
section
91A.9
to
require
the
labor
21
commissioner
to
employ
wage
investigators
for
the
enforcement
22
of
Code
chapter
91A,
and
to
establish
a
statewide,
toll-free
23
telephone
hotline
for
the
purpose
of
receiving
reports
of
24
violations
of
Code
chapter
91A.
25
Code
section
91A.10(5),
which
covers
retaliatory
actions
26
by
employers
or
others,
is
expanded
to
cover
persons
other
27
than
employees
who
act
under
Code
chapter
91A
with
respect
28
to
an
employee.
A
90-day
period
is
established
during
which
29
any
action
against
an
employee
or
other
person
is
rebuttably
30
presumed
to
be
retaliatory.
New
subsection
6
is
created
in
31
Code
section
91A.10
to
allow
the
labor
commissioner
or
any
32
injured
party
to
maintain
a
civil
action
in
any
court
of
proper
33
jurisdiction.
An
employer
who
retaliates
against
an
employee
34
or
other
person
shall
compensate
the
injured
party
an
amount
35
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107
set
by
the
labor
commissioner
or
the
court,
but
not
less
than
1
$150
for
each
day
of
the
violation.
2
The
bill
creates
new
Code
section
91A.12A
to
provide
that
3
if
an
employer
erroneously
violates
the
provisions
of
Code
4
chapter
91A
or
the
rules
adopted
pursuant
to
Code
chapter
5
91A,
the
employer
shall
not
be
subject
to
certain
penalty
6
provisions
provided
in
Code
chapter
91A
if
certain
conditions
7
are
met.
The
first
condition
is
that
the
labor
commissioner
8
determines
that
the
violation
was
erroneous
and
that
the
9
employer
attempted
in
good
faith
to
comply
with
the
provisions
10
of
Code
chapter
91A
and
the
rules
adopted
pursuant
to
Code
11
chapter
91A.
The
second
condition
is
that
the
commissioner,
12
after
considering
any
history
of
violations
by
the
employer,
13
determines
that
the
violation
was
isolated
in
nature.
The
14
third
condition
is
that
the
employer
corrects
the
violation
15
to
the
satisfaction
of
the
commissioner
within
14
days
of
the
16
occurrence
of
the
violation.
17
In
new
Code
section
91A.15,
an
employer
shall
not
require
18
that
an
individual
be
a
current
employee
to
be
paid
an
earned
19
commission.
20
The
bill
creates
new
Code
section
91A.16
to
stipulate
that
a
21
provision
of
Code
chapter
91A
shall
not
apply
to
any
employer
22
or
employee
if
such
provision
would
conflict
with
federal
law
23
or
regulation.
24
The
bill
requires
the
labor
commissioner
to
provide
for
the
25
notification
of
each
employer
in
Iowa
of
the
requirements
for
26
employers
provided
in
the
bill
by
September
2,
2019.
Such
27
notification
shall
include
suggested
forms
and
procedures
28
that
employers
may
use
for
purposes
of
compliance
with
the
29
notice
and
recordkeeping
requirements
of
Code
section
91A.6,
30
as
amended
by
the
bill.
31
An
employer
who
violates
Code
chapter
91A
is
subject
to
a
32
civil
penalty
of
not
more
than
$500
per
pay
period
for
each
33
violation.
34
The
bill,
except
for
the
provision
providing
for
35
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