Bill Text: IA SF2296 | 2019-2020 | 88th General Assembly | Enrolled
Bill Title: A bill for an act regarding persons who are deemed independent contractors when performing services while operating certain vehicles. (Formerly SSB 3144.) Effective date: 07/01/2020.
Spectrum: Committee Bill
Status: (Passed) 2020-06-18 - Signed by Governor. S.J. 863. [SF2296 Detail]
Download: Iowa-2019-SF2296-Enrolled.html
Senate
File
2296
-
Enrolled
Senate
File
2296
AN
ACT
REGARDING
PERSONS
WHO
ARE
DEEMED
INDEPENDENT
CONTRACTORS
WHEN
PERFORMING
SERVICES
WHILE
OPERATING
CERTAIN
VEHICLES.
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
Section
1.
Section
85.61,
subsection
11,
paragraph
c,
subparagraph
(3),
Code
2020,
is
amended
to
read
as
follows:
(3)
(a)
For
purposes
of
this
subparagraph,
“owns”
includes
but
is
not
limited
to
holding
legal
title
to
a
vehicle
or
being
a
party
to
an
agreement
for
the
conditional
sale
or
lease
of
the
vehicle
that
includes
the
party’s
right
to
purchase
upon
performance
of
conditions
stated
in
the
agreement
with
an
immediate
right
of
possession.
In
the
event
a
mortgagor
of
a
vehicle
is
entitled
to
possession
of
the
vehicle,
then
the
conditional
vendee
or
lessee
and
the
mortgagor
shall
both
be
deemed
to
own
the
vehicle.
(b)
An
owner-operator
who,
as
an
individual
or
partner,
or
shareholder
of
a
corporate
owner-operator,
owns
a
vehicle
licensed
and
registered
as
a
truck,
road
tractor,
or
truck
tractor
by
a
governmental
agency,
is
an
independent
contractor
while
performing
services
in
the
operation
of
the
owner-operator’s
vehicle
if
all
of
the
following
conditions
are
substantially
present:
(a)
(i)
The
owner-operator
is
responsible
for
the
maintenance
of
the
vehicle.
(b)
(ii)
The
owner-operator
bears
the
principal
burden
of
the
vehicle’s
operating
costs,
including
fuel,
repairs,
Senate
File
2296,
p.
2
supplies,
collision
insurance,
and
personal
expenses
for
the
operator
while
on
the
road.
(c)
(iii)
The
owner-operator
is
responsible
for
supplying
the
necessary
personnel
to
operate
the
vehicle,
and
the
personnel
are
considered
the
owner-operator’s
employees.
(d)
(iv)
The
owner-operator’s
compensation
is
based
on
factors
related
to
the
work
performed,
including
a
percentage
of
any
schedule
of
rates
or
lawfully
published
tariff,
and
not
on
the
basis
of
the
hours
or
time
expended.
(e)
(v)
The
owner-operator
determines
the
details
and
means
of
performing
the
services,
in
conformance
with
regulatory
requirements,
operating
procedures
of
the
carrier,
and
specifications
of
the
shipper.
(f)
(vi)
The
owner-operator
enters
into
a
contract
which
specifies
the
relationship
to
be
that
of
an
independent
contractor
and
not
that
of
an
employee.
Sec.
2.
Section
91A.2,
subsection
3,
Code
2020,
is
amended
to
read
as
follows:
3.
a.
“Employee”
means
a
natural
person
who
is
employed
in
this
state
for
wages
by
an
employer.
Employee
also
includes
a
commission
salesperson
who
takes
orders
or
performs
services
on
behalf
of
a
principal
and
who
is
paid
on
the
basis
of
commissions
but
does
not
include
persons
who
purchase
for
their
own
account
for
resale.
b.
For
the
purposes
of
this
chapter
,
the
following
persons
engaged
in
agriculture
are
not
employees:
a.
(1)
The
spouse
of
the
employer
and
relatives
of
either
the
employer
or
spouse
residing
on
the
premises
of
the
employer.
b.
(2)
A
person
engaged
in
agriculture
as
an
owner-operator
or
tenant-operator
and
the
spouse
or
relatives
of
either
who
reside
on
the
premises
while
exchanging
labor
with
the
operator
or
for
other
mutual
benefit
of
any
and
all
such
persons.
c.
(3)
Neighboring
persons
engaged
in
agriculture
who
are
exchanging
labor
or
other
services.
c.
For
purposes
of
this
chapter,
“employee”
does
not
include
an
independent
contractor
as
described
in
section
85.61,
subsection
11,
paragraph
“c”
,
subparagraph
(3).
Sec.
3.
Section
91D.1,
Code
2020,
is
amended
by
adding
the
Senate
File
2296,
p.
3
following
new
subsection:
NEW
SUBSECTION
.
3A.
For
purposes
of
this
chapter,
“employee”
does
not
include
an
independent
contractor
as
described
in
section
85.61,
subsection
11,
paragraph
“c”
,
subparagraph
(3).
Sec.
4.
Section
96.19,
subsection
17,
Code
2020,
is
amended
to
read
as
follows:
17.
“Employing
unit”
means
any
individual
or
type
of
organization,
including
this
state
and
its
political
subdivisions,
state
agencies,
boards,
commissions,
and
instrumentalities
thereof,
any
partnership,
association,
trust,
estate,
joint
stock
company,
insurance
company
or
corporation,
whether
domestic
or
foreign,
or
the
receiver,
trustee
in
bankruptcy,
trustee
or
successor
thereof,
or
the
legal
representative
of
a
deceased
person,
which
has
or
subsequent
to
January
1,
1936,
had
in
its
employ
one
or
more
individuals
performing
services
for
it
within
this
state.
All
individuals
performing
services
within
this
state
for
any
employing
unit
which
maintains
two
or
more
separate
establishments
within
this
state
shall
be
deemed
to
be
employed
by
a
single
employing
unit
for
all
the
purposes
of
this
chapter
.
Whenever
any
employing
unit
contracts
with
or
has
under
it
any
contractor
or
subcontractor
for
any
work
which
is
part
of
its
usual
trade,
occupation,
profession,
or
business,
unless
the
employing
unit
as
well
as
each
such
contractor
or
subcontractor
is
an
employer
by
reason
of
subsection
16
or
section
96.8,
subsection
3
,
the
employing
unit
shall
for
all
the
purposes
of
this
chapter
be
deemed
to
employ
each
individual
in
the
employ
of
each
such
contractor
or
subcontractor
for
each
day
during
which
such
individual
is
engaged
in
performing
such
work;
except
that
each
such
contractor
or
subcontractor
who
is
an
employer
by
reason
of
subsection
16
or
section
96.8,
subsection
3
,
shall
alone
be
liable
for
the
contributions
measured
by
wages
payable
to
individuals
in
the
contractor’s
or
subcontractor’s
employ,
and
except
that
any
employing
unit
who
shall
become
liable
for
and
pay
contributions
with
respect
to
individuals
in
the
employ
of
any
such
contractor
or
subcontractor
who
is
not
an
employer
by
reason
of
subsection
16
or
section
96.8,
subsection
3
,
may
recover
the
same
from
such
contractor
or
subcontractor,
except
Senate
File
2296,
p.
4
as
any
contractor
or
subcontractor
who
would
in
the
absence
of
subsection
16
or
section
96.8,
subsection
3
,
be
liable
to
pay
said
contributions,
accepts
exclusive
liability
for
said
contributions
under
an
agreement
with
such
employer
made
pursuant
to
general
rules
of
the
department.
Each
individual
employed
to
perform
or
to
assist
in
performing
the
work
of
any
agent
or
employee
of
an
employing
unit
shall
be
deemed
to
be
employed
by
such
employing
unit
for
all
the
purposes
of
this
chapter
,
whether
such
individual
was
hired
or
paid
directly
by
such
employing
unit
or
by
such
agent
or
employee,
provided
the
employing
unit
had
actual
or
constructive
knowledge
of
such
work,
and
provided,
further,
that
such
employment
was
for
a
total
of
not
less
than
eight
hours
in
any
one
calendar
week.
An
employing
unit
shall
not
be
deemed
to
employ
an
independent
contractor
as
described
in
section
85.61,
subsection
11,
paragraph
“c”
,
subparagraph
(3).
______________________________
CHARLES
SCHNEIDER
President
of
the
Senate
______________________________
PAT
GRASSLEY
Speaker
of
the
House
I
hereby
certify
that
this
bill
originated
in
the
Senate
and
is
known
as
Senate
File
2296,
Eighty-eighth
General
Assembly.
______________________________
W.
CHARLES
SMITHSON
Secretary
of
the
Senate
Approved
_______________,
2020
______________________________
KIM
REYNOLDS
Governor