Bill Text: IA SF122 | 2023-2024 | 90th General Assembly | Introduced

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Bill Title: A bill for an act relating to wage payment collection issues arising between employers and employees, providing penalties and remedies, and including effective date provisions.

Spectrum: Partisan Bill (Democrat 16-0)

Status: (Introduced) 2023-02-01 - Subcommittee: Driscoll, Donahue, and Rowley. S.J. 231. [SF122 Detail]

Download: Iowa-2023-SF122-Introduced.html

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Senate File 122 - Introduced
SENATE FILE 122
BY DONAHUE , CELSI , DOTZLER ,
WEINER , JOCHUM , WAHLS ,
BENNETT , KNOX , GIDDENS ,
PETERSEN , T. TAYLOR ,
BOULTON , WINCKLER ,
QUIRMBACH , BISIGNANO , and
TRONE GARRIOTT
A BILL FOR
An Act relating to wage payment collection issues arising
between employers and employees, providing penalties and
remedies, and including effective date provisions.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
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DIVISION I
WAGE PAYMENT COLLECTION
Section 1. Section 91A.5, subsection 1, unnumbered
paragraph 1, Code 2023, is amended to read as follows:
An employer shall have the burden to establish that a
deduction from employee wages is lawful. An employer shall not
withhold or divert any portion of an employee’s wages unless:
Sec. 2. Section 91A.5, subsection 1, paragraph b, Code 2023,
is amended to read as follows:
b. The employer has obtains advance written authorization
from the employee to so deduct for any lawful purpose accruing
to the benefit of the employee.
Sec. 3. Section 91A.6, subsection 1, Code 2023, is amended
to read as follows:
1. An employer shall after being notified by the
commissioner pursuant to subsection 2 do the following :
a. Notify its employees in writing at the time of hiring
what wages and regular paydays are designated by the employer.
b. Notify its employees in writing whose wages are
determined based on a task, piece, mile, or load basis about
the method used to calculate wages and when the wages are
earned by the employees.
b. c. Notify, at least one pay period prior to the
initiation of any changes, its employees of any changes in
the arrangements specified in this subsection 1 that reduce
wages or alter the regular paydays. The notice shall either
be in writing or posted at a place where employee notices are
routinely posted.
c. d. Make available to its employees upon written request,
a written statement enumerating employment agreements and
policies with regard to vacation pay, sick leave, reimbursement
for expenses, retirement benefits, severance pay, or other
comparable matters with respect to wages. Notice of such
availability shall be given to each employee in writing or by a
notice posted at a place where employee notices are routinely
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posted.
d. e. Establish, maintain, and preserve for three
calendar years the payroll records showing the hours worked,
wages earned, and deductions made for each employee and
any employment agreements entered into between an employer
and employee. Failure to do so shall raise a rebuttable
presumption that the employer did not pay the required minimum
wage under section 91D.1.
Sec. 4. Section 91A.6, subsection 2, Code 2023, is amended
by striking the subsection.
Sec. 5. Section 91A.6, subsection 4, Code 2023, is amended
by striking the subsection and inserting in lieu thereof the
following:
4. a. On each regular payday, the employer shall provide
to each employee a statement showing the wages earned by
the employee, the deductions made for the employee, and the
following information, as applicable:
(1) For each employee paid in whole or in part on an hourly
basis, the statement shall show the hours the employee worked.
(2) For each employee paid based on a percentage of sales or
based on a percentage of revenue generated for the employer,
the statement shall include a list of the amount of each sale
or the amount of revenue during the pay period.
(3) For each employee whose pay is based on the number
of miles or loads performed, the statement shall include the
applicable number performed during the pay period.
b. The employer shall provide the statement using one of the
following methods:
(1) Sending the statement to an employee by mail.
(2) Providing the statement to an employee by secure
electronic transmission or by other secure electronic means.
If an employee is unable to receive the statement by this
method, the employee shall notify the employer in writing at
least one pay period in advance, and the employer shall provide
the statement by one of the other methods listed in this
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paragraph “b” .
(3) Providing the statement to the employee at the
employee’s normal place of employment during normal employment
hours.
(4) Providing each employee access to view a statement
of the employee’s earnings electronically and providing the
employee free and unrestricted access to a printer to print the
statement.
Sec. 6. Section 91A.8, Code 2023, is amended to read as
follows:
91A.8 Damages recoverable by an employee.
When it has been shown that an employer has intentionally
failed to pay an employee wages or reimburse expenses pursuant
to section 91A.3 , whether as the result of a wage dispute or
otherwise, the employer shall be liable to the employee for
any the unpaid wages or unreimbursed expenses that are so
intentionally failed to be paid or reimbursed , plus liquidated
damages, court costs , and any attorney’s attorney fees incurred
in recovering the unpaid wages or unreimbursed expenses
and determined to have been usual and necessary. In other
instances the employer shall be liable only for unpaid wages or
expenses, court costs and usual and necessary attorney’s fees
incurred in recovering the unpaid wages or expenses.
Sec. 7. Section 91A.9, subsection 3, Code 2023, is amended
to read as follows:
3. The commissioner may employ such qualified personnel
as are necessary for the enforcement of this chapter . Such
personnel shall be employed pursuant to chapter 8A, subchapter
IV . The commissioner shall employ wage investigators for the
enforcement of this chapter.
Sec. 8. Section 91A.9, Code 2023, is amended by adding the
following new subsection:
NEW SUBSECTION . 4A. The commissioner shall establish a
statewide, toll-free telephone hotline for the purpose of
receiving reports of violations of this chapter.
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Sec. 9. Section 91A.10, subsection 5, Code 2023, is amended
to read as follows:
5. An employer shall not discharge or in any other manner
discriminate against any employee because the employee has
filed a complaint, assigned a claim, or brought an action under
this section or has cooperated in bringing any action against
an employer.
a. An employer or other person shall not discharge or in
any other manner discriminate or retaliate against any of the
following:
(1) An employee or other person for exercising any right
provided under this chapter or any rules adopted pursuant to
this chapter.
(2) Another employee or person for providing assistance to
an employee or providing information regarding the employee or
person.
(3) Another employee or person for testifying or planning
to testify in any investigation or proceeding regarding the
employee or person.
b. Taking adverse action against an employee or other person
within ninety days of an employee’s or other person’s engaging
in any of the activities in paragraph “a” raises a presumption
that such action was retaliation, which may be rebutted by
evidence that such action was taken for other permissible
reasons.
c. Any employee may file a complaint with the commissioner
alleging discharge , or discrimination , or retaliation within
thirty days after such violation occurs. Upon receipt of the
complaint, the commissioner shall cause an investigation to be
made to the extent deemed appropriate. If the commissioner
determines from the investigation that the provisions of this
subsection have been violated, the commissioner shall bring
an action in the appropriate district court against such
person. The district court shall have jurisdiction, for cause
shown, to restrain violations of this subsection and order all
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appropriate relief including rehiring or reinstatement of the
employee to the former position with back pay.
Sec. 10. Section 91A.10, Code 2023, is amended by adding the
following new subsection:
NEW SUBSECTION . 6. A civil action to enforce subsection 5
may also be maintained in any court of competent jurisdiction
by the commissioner or by any party injured by a violation
of subsection 5. An employer or other person who retaliates
against an employee or other person in violation of subsection
5 shall be required to pay the employee or other person
an amount set by the commissioner or a court sufficient to
compensate the employee or other person and to deter future
violations, but not less than one hundred fifty dollars for
each day that the violation occurred.
Sec. 11. Section 91A.12, subsections 1 and 2, Code 2023, are
amended to read as follows:
1. Any employer who violates the provisions of this
chapter or the rules promulgated under it shall be subject to
a civil money penalty of not more than five hundred dollars
per pay period for each violation. The commissioner may shall
recover such civil money penalty according to the provisions
of subsections 2 through 5 . Any civil money penalty recovered
shall be deposited in the general fund of the state.
2. The commissioner may shall propose that an employer be
assessed a civil money penalty by serving the employer with
notice of such proposal in the same manner as an original
notice is served under the rules of civil procedure. Upon
service of such notice, the proposed assessment shall be
treated as a contested case under chapter 17A . However, an
employer must request a hearing within thirty days of being
served.
Sec. 12. NEW SECTION . 91A.12A Erroneous violations.
If an employer erroneously violates the provisions of this
chapter or the rules adopted pursuant to this chapter, the
employer shall not be subject to liability to an employee
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pursuant to section 91A.8, the violation shall not constitute
an enforceable claim as provided in section 91A.10, and the
employer shall not be subject to a civil money penalty pursuant
to section 91A.12, if all of the following conditions are met:
1. The commissioner determines that the violation was
erroneous and that the employer attempted in good faith to
comply with the provisions of this chapter and the rules
adopted pursuant to this chapter.
2. The commissioner, after considering any history of
violations of this chapter or the rules adopted pursuant to
this chapter by the employer, determines that the violation was
isolated in nature.
3. The employer corrects the violation to the satisfaction
of the labor commissioner within fourteen days of the
occurrence of the violation.
Sec. 13. NEW SECTION . 91A.16 Commissions earned date.
An employer shall not require that a person be a current
employee to be paid a commission that the person otherwise
earned.
Sec. 14. NEW SECTION . 91A.17 Inconsistency with federal
law.
A provision of this chapter shall not apply to any employer
or employee if such provision would conflict with federal law
or regulation.
Sec. 15. EFFECTIVE DATE. This division of this Act takes
effect January 1, 2024.
DIVISION II
NOTIFICATION REQUIREMENTS
Sec. 16. NOTIFICATION REQUIREMENTS. The labor commissioner
shall provide for the notification of each employer in this
state of the requirements for employers provided in this Act by
September 1, 2023. Such notification shall include suggested
forms and procedures that employers may use for purposes of
compliance with the notice and recordkeeping requirements of
section 91A.6, as amended by this Act.
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EXPLANATION
The inclusion of this explanation does not constitute agreement with
the explanation’s substance by the members of the general assembly.
This bill relates to the collection of wages from employers
by employees under Code chapter 91A, the “Iowa Wage Payment
Collection Law”.
The bill provides that an employer has the burden to
establish that a deduction from employees’ wages is lawful and
that the employer must obtain written authorization for the
deduction from the employee in advance.
The bill removes the requirement that an employer be
notified by the division of labor services of the department
of workforce development before the employer is required to
fulfill requirements relating to employee wage and benefit
information. The bill requires an employer to notify employees
in writing whose wages are determined based on a task, piece,
mile, or load basis about the method used to calculate wages
and when wages are earned. The bill establishes a rebuttable
presumption that an employer did not pay the minimum wage if
the employer does not maintain proper payroll records.
The bill requires an employer to provide to each employee
a statement of the employee’s earnings, deductions made, and
as applicable the following: for an employee paid hourly, the
number of hours worked during the pay period; for an employee
paid on a percentage of sales or revenue generated, a list of
sales or amount of revenue during the pay period; and for an
employee paid based on the number of miles or loads performed,
the applicable number performed during the pay period.
The bill provides that when any specified violation of Code
chapter 91A occurs, even if unintentional, an employer shall be
liable for unpaid wages or expenses plus liquidated damages,
court costs, and attorney fees incurred in recovering wages.
The bill requires the labor commissioner to employ wage
investigators for the enforcement of Code chapter 91A, and to
establish a statewide, toll-free telephone hotline for the
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purpose of receiving reports of violations of Code chapter 91A.
Prohibitions on retaliatory actions by employers or
others are expanded to cover persons other than employees who
act under Code chapter 91A with respect to an employee. A
90-day period is established during which any action against
an employee or other person is rebuttably presumed to be
retaliatory. The bill allows the labor commissioner or any
injured party to maintain a civil action in any court of proper
jurisdiction. An employer who retaliates against an employee
or other person shall compensate the injured party an amount
set by the labor commissioner or the court, but not less than
$150 for each day of the violation.
The bill modifies language relating to procedures for the
labor commissioner to impose civil penalties on an employer for
violations of Code chapter 91A by making certain actions by the
commissioner mandatory.
The bill provides that if an employer erroneously violates
the provisions of Code chapter 91A or the rules adopted
pursuant to Code chapter 91A, the employer shall not be subject
to certain penalty provisions provided in Code chapter 91A if
certain conditions are met. The first condition is that the
labor commissioner determines that the violation was erroneous
and that the employer attempted in good faith to comply with
the provisions of Code chapter 91A and the rules adopted
pursuant to Code chapter 91A. The second condition is that the
commissioner, after considering any history of violations by
the employer, determines that the violation was isolated in
nature. The third condition is that the employer corrects the
violation to the satisfaction of the commissioner within 14
days of the occurrence of the violation.
The bill prohibits an employer from requiring that
an individual be a current employee to be paid an earned
commission.
The bill stipulates that a provision of Code chapter 91A
shall not apply to any employer or employee if such provision
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would conflict with federal law or regulation.
The bill requires the labor commissioner to provide for the
notification of each employer in Iowa of the requirements for
employers provided in the bill by September 1, 2023. Such
notification shall include suggested forms and procedures that
employers may use for purposes of compliance with the notice
and recordkeeping requirements of Code chapter 91A as amended
by the bill.
An employer who violates Code chapter 91A is subject to a
civil penalty of not more than $500 per pay period for each
violation.
The bill, except for the provision providing for
notification of employees in Iowa by the labor commissioner,
takes effect January 1, 2024.
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