Bill Text: IA SF205 | 2021-2022 | 89th General Assembly | Introduced


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 10-0)

Status: (Introduced) 2021-02-03 - Subcommittee: Schultz, Brown, and T. Taylor. S.J. 251. [SF205 Detail]

Download: Iowa-2021-SF205-Introduced.html
Senate File 205 - Introduced SENATE FILE 205 BY BOLKCOM , BOULTON , RAGAN , GIDDENS , WAHLS , TRONE GARRIOTT , JOCHUM , T. TAYLOR , DOTZLER , and BISIGNANO A BILL FOR An Act relating to wage payment collection issues arising 1 between employers and employees, providing penalties and 2 remedies, and including effective date provisions. 3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 4 TLSB 1068XS (7) 89 je/rn
S.F. 205 DIVISION I 1 WAGE PAYMENT COLLECTION 2 Section 1. Section 91A.5, subsection 1, unnumbered 3 paragraph 1, Code 2021, 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 2021, 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 2021, 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 1068XS (7) 89 je/rn 1/ 8
S.F. 205 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 2021, is amended 9 by striking the subsection. 10 Sec. 5. Section 91A.6, subsection 4, Code 2021, 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 1068XS (7) 89 je/rn 2/ 8
S.F. 205 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 2021, 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 2021, 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 2021, 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 1068XS (7) 89 je/rn 3/ 8
S.F. 205 Sec. 9. Section 91A.10, subsection 5, Code 2021, 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 a. An employer or other person shall not discharge or in 8 any other manner discriminate or retaliate against any of the 9 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 1068XS (7) 89 je/rn 4/ 8
S.F. 205 appropriate relief including rehiring or reinstatement of the 1 employee to the former position with back pay. 2 Sec. 10. Section 91A.10, Code 2021, 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.16 Commissions earned date. 34 An employer shall not require that a person be a current 35 -5- LSB 1068XS (7) 89 je/rn 5/ 8
S.F. 205 employee to be paid a commission that the person otherwise 1 earned. 2 Sec. 13. NEW SECTION . 91A.17 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, 2022. 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 1, 2021. 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 the collection of wages from employers 22 by employees under Code chapter 91A, the “Iowa Wage Payment 23 Collection Law”. 24 The bill provides that an employer has the burden to 25 establish that a deduction from employees’ wages is lawful and 26 that the employer must obtain written authorization for the 27 deduction from the employee in advance. 28 The bill removes the requirement that an employer be 29 notified by the division of labor services of the department 30 of workforce development before the employer is required to 31 fulfill requirements relating to employee wage and benefit 32 information. The bill requires an employer to notify employees 33 in writing whose wages are determined based on a task, piece, 34 mile, or load basis about the method used to calculate wages 35 -6- LSB 1068XS (7) 89 je/rn 6/ 8
S.F. 205 and when wages are earned. The bill establishes a rebuttable 1 presumption that an employer did not pay the minimum wage if 2 the employer does not maintain proper payroll records. 3 The bill requires an employer to provide to each employee 4 a statement of the employee’s earnings, deductions made, and 5 as applicable the following: for an employee paid hourly, the 6 number of hours worked during the pay period; for an employee 7 paid on a percentage of sales or revenue generated, a list of 8 sales or amount of revenue during the pay period; and for an 9 employee paid based on the number of miles or loads performed, 10 the applicable number performed during the pay period. 11 The bill provides that when any specified violation of Code 12 chapter 91A occurs, even if unintentional, an employer shall be 13 liable for unpaid wages or expenses plus liquidated damages, 14 court costs, and attorney fees incurred in recovering wages. 15 The bill requires the labor commissioner to employ wage 16 investigators for the enforcement of Code chapter 91A, and to 17 establish a statewide, toll-free telephone hotline for the 18 purpose of receiving reports of violations of Code chapter 91A. 19 Prohibitions on retaliatory actions by employers or 20 others are expanded to cover persons other than employees who 21 act under Code chapter 91A with respect to an employee. A 22 90-day period is established during which any action against 23 an employee or other person is rebuttably presumed to be 24 retaliatory. The bill allows the labor commissioner or any 25 injured party to maintain a civil action in any court of proper 26 jurisdiction. An employer who retaliates against an employee 27 or other person shall compensate the injured party an amount 28 set by the labor commissioner or the court, but not less than 29 $150 for each day of the violation. 30 The bill provides that if an employer erroneously violates 31 the provisions of Code chapter 91A or the rules adopted 32 pursuant to Code chapter 91A, the employer shall not be subject 33 to certain penalty provisions provided in Code chapter 91A if 34 certain conditions are met. The first condition is that the 35 -7- LSB 1068XS (7) 89 je/rn 7/ 8
S.F. 205 labor commissioner determines that the violation was erroneous 1 and that the employer attempted in good faith to comply with 2 the provisions of Code chapter 91A and the rules adopted 3 pursuant to Code chapter 91A. The second condition is that the 4 commissioner, after considering any history of violations by 5 the employer, determines that the violation was isolated in 6 nature. The third condition is that the employer corrects the 7 violation to the satisfaction of the commissioner within 14 8 days of the occurrence of the violation. 9 The bill prohibits an employer from requiring that 10 an individual be a current employee to be paid an earned 11 commission. 12 The bill stipulates that a provision of Code chapter 91A 13 shall not apply to any employer or employee if such provision 14 would conflict with federal law or regulation. 15 The bill requires the labor commissioner to provide for the 16 notification of each employer in Iowa of the requirements for 17 employers provided in the bill by September 1, 2021. Such 18 notification shall include suggested forms and procedures that 19 employers may use for purposes of compliance with the notice 20 and recordkeeping requirements of Code chapter 91A as amended 21 by the bill. 22 An employer who violates Code chapter 91A is subject to a 23 civil penalty of not more than $500 per pay period for each 24 violation. 25 The bill, except for the provision providing for 26 notification of employees in Iowa by the labor commissioner, 27 takes effect January 1, 2022. 28 -8- LSB 1068XS (7) 89 je/rn 8/ 8
feedback