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 TLSB 1571XS (3) 88 je/rn
S.F. 107 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 35 -1- LSB 1571XS (3) 88 je/rn 1/ 9
S.F. 107 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 35 -2- LSB 1571XS (3) 88 je/rn 2/ 9
S.F. 107 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. 35 -3- LSB 1571XS (3) 88 je/rn 3/ 9
S.F. 107 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 35 -4- LSB 1571XS (3) 88 je/rn 4/ 9
S.F. 107 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 35 -5- LSB 1571XS (3) 88 je/rn 5/ 9
S.F. 107 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 35 -6- LSB 1571XS (3) 88 je/rn 6/ 9
S.F. 107 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 -7- LSB 1571XS (3) 88 je/rn 7/ 9
S.F. 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 -8- LSB 1571XS (3) 88 je/rn 8/ 9
S.F. 107 notification of employees in Iowa by the labor commissioner, 1 takes effect January 1, 2020. 2 -9- LSB 1571XS (3) 88 je/rn 9/ 9
feedback