Bill Text: IA SF270 | 2015-2016 | 86th General Assembly | Introduced

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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. (Formerly SF 39.)

Spectrum: Committee Bill

Status: (Engrossed - Dead) 2015-02-26 - Subcommittee, Forristall, Hunter, and Watts. H.J. 429. [SF270 Detail]

Download: Iowa-2015-SF270-Introduced.html

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Senate File 270 - Introduced




                                 SENATE FILE       
                                 BY  COMMITTEE ON LABOR AND
                                     BUSINESS RELATIONS

                                 (SUCCESSOR TO SF 39)

                                      A BILL FOR

  1 An Act relating to wage payment collection issues arising
  2    between employers and individuals who provide services to
  3    employers, providing penalties and remedies, and including
  4    effective date provisions.
  5 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
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PAG LIN



  1  1    Section 1.  Section 91A.5, subsection 1, unnumbered
  1  2 paragraph 1, Code 2015, is amended to read as follows:
  1  3    An employer shall have the burden to establish that a
  1  4 deduction from employee wages is lawful.  An employer shall not
  1  5 withhold or divert any portion of an employee's wages unless:
  1  6    Sec. 2.  Section 91A.5, subsection 1, paragraph b, Code 2015,
  1  7 is amended to read as follows:
  1  8    b.  The employer has obtains advance written authorization
  1  9 from the employee to so deduct for any lawful purpose accruing
  1 10 to the benefit of the employee.
  1 11    Sec. 3.  Section 91A.6, subsection 1, Code 2015, is amended
  1 12 to read as follows:
  1 13    1.  An employer shall after being notified by the
  1 14 commissioner pursuant to subsection 2 do the following:
  1 15    a.  Notify its employees in writing at the time of hiring
  1 16 what wages and regular paydays are designated by the employer.
  1 17    b.  Notify its employees in writing whose wages are
  1 18 determined based on a task, piece, mile, or load basis about
  1 19 the method used to calculate wages and when the wages are
  1 20 earned by the employees.
  1 21    b.  c.  Notify, at least one pay period prior to the
  1 22 initiation of any changes, its employees of any changes in
  1 23 the arrangements specified in this subsection 1 that reduce
  1 24 wages or alter the regular paydays. The notice shall either
  1 25 be in writing or posted at a place where employee notices are
  1 26 routinely posted.
  1 27    c.  d.  Make available to its employees upon written request,
  1 28 a written statement enumerating employment agreements and
  1 29 policies with regard to vacation pay, sick leave, reimbursement
  1 30 for expenses, retirement benefits, severance pay, or other
  1 31 comparable matters with respect to wages. Notice of such
  1 32 availability shall be given to each employee in writing or by a
  1 33 notice posted at a place where employee notices are routinely
  1 34 posted.
  1 35    d.  e.  Establish, maintain, and preserve for three
  2  1 calendar years the payroll records showing the hours worked,
  2  2 wages earned, and deductions made for each employee and
  2  3 any employment agreements entered into between an employer
  2  4 and employee.  Failure to do so shall raise a rebuttable
  2  5 presumption that the employer did not pay the required minimum
  2  6 wage under section 91D.1.
  2  7    Sec. 4.  Section 91A.6, subsection 2, Code 2015, is amended
  2  8 by striking the subsection.
  2  9    Sec. 5.  Section 91A.6, subsection 4, Code 2015, is amended
  2 10 by striking the subsection and inserting in lieu thereof the
  2 11 following:
  2 12    4.  a.  On each regular payday, the employer shall send to
  2 13 each employee by mail or shall provide at the employee's normal
  2 14 place of employment during normal employment hours a statement
  2 15 showing the wages earned by the employee, the deductions made
  2 16 for the employee, and the following information, as applicable:
  2 17    (1)  For each employee paid in whole or in part on an hourly
  2 18 basis, the statement shall show the hours the employee worked.
  2 19    (2)  For each employee paid based on a percentage of sales or
  2 20 based on a percentage of revenue generated for the employer,
  2 21 the statement shall include a list of the amount of each sale
  2 22 or the amount of revenue during the pay period.
  2 23    (3)  For each employee whose pay is based on the number
  2 24 of miles or loads performed, the statement shall include the
  2 25 applicable number performed during the pay period.
  2 26    b.  An employer who provides each employee access to view an
  2 27 electronic statement of the employee's earnings and provides
  2 28 the employee free and unrestricted access to a printer to print
  2 29 the employee's statement of earnings, if the employee chooses,
  2 30 is in compliance with this subsection.
  2 31    Sec. 6.  Section 91A.8, Code 2015, is amended to read as
  2 32 follows:
  2 33    91A.8  Damages recoverable by an employee.
  2 34    When it has been shown that an employer has intentionally
  2 35  failed to pay an employee wages or reimburse expenses pursuant
  3  1 to section 91A.3, whether as the result of a wage dispute or
  3  2 otherwise, the employer shall be liable to the employee for
  3  3 any the unpaid wages or unreimbursed expenses that are so
  3  4 intentionally failed to be paid or reimbursed, plus liquidated
  3  5 damages, court costs, and any attorney's attorney fees incurred
  3  6 in recovering the unpaid wages or unreimbursed expenses
  3  7  and determined to have been usual and necessary. In other
  3  8 instances the employer shall be liable only for unpaid wages or
  3  9 expenses, court costs and usual and necessary attorney's fees
  3 10 incurred in recovering the unpaid wages or expenses.
  3 11    Sec. 7.  Section 91A.9, subsection 3, Code 2015, is amended
  3 12 to read as follows:
  3 13    3.  The commissioner may employ such qualified personnel
  3 14 as are necessary for the enforcement of this chapter. Such
  3 15 personnel shall be employed pursuant to chapter 8A, subchapter
  3 16 IV.  The commissioner shall employ wage investigators for the
  3 17 enforcement of this chapter.
  3 18    Sec. 8.  Section 91A.9, Code 2015, is amended by adding the
  3 19 following new subsection:
  3 20    NEW SUBSECTION.  4A.  The commissioner shall establish a
  3 21 statewide, toll=free telephone hotline for the purpose of
  3 22 receiving reports of violations of this chapter.
  3 23    Sec. 9.  Section 91A.10, subsection 5, Code 2015, is amended
  3 24 to read as follows:
  3 25    5.  An employer shall not discharge or in any other manner
  3 26 discriminate against any employee because the employee has
  3 27 filed a complaint, assigned a claim, or brought an action under
  3 28 this section or has cooperated in bringing any action against
  3 29 an employer.
  3 30    5.  a.  An employer or other person shall not discharge or
  3 31 in any other manner discriminate or retaliate against any of
  3 32 the following:
  3 33    (1)  An employee or other person for exercising any right
  3 34 provided under this chapter or any rules adopted pursuant to
  3 35 this chapter.
  4  1    (2)  Another employee or person for providing assistance to
  4  2 an employee or providing information regarding the employee or
  4  3 person.
  4  4    (3)  Another employee or person for testifying or planning
  4  5 to testify in any investigation or proceeding regarding the
  4  6 employee or person.
  4  7    b.  Taking adverse action against an employee or other person
  4  8 within ninety days of an employee's or other person's engaging
  4  9 in any of the activities in paragraph "a" raises a presumption
  4 10 that such action was retaliation, which may be rebutted by
  4 11 evidence that such action was taken for other permissible
  4 12 reasons.
  4 13    c.  Any employee may file a complaint with the commissioner
  4 14 alleging discharge, or discrimination, or retaliation within
  4 15 thirty days after such violation occurs. Upon receipt of the
  4 16 complaint, the commissioner shall cause an investigation to be
  4 17 made to the extent deemed appropriate. If the commissioner
  4 18 determines from the investigation that the provisions of this
  4 19 subsection have been violated, the commissioner shall bring
  4 20 an action in the appropriate district court against such
  4 21 person. The district court shall have jurisdiction, for cause
  4 22 shown, to restrain violations of this subsection and order all
  4 23 appropriate relief including rehiring or reinstatement of the
  4 24 employee to the former position with back pay.
  4 25    Sec. 10.  Section 91A.10, Code 2015, is amended by adding the
  4 26 following new subsection:
  4 27    NEW SUBSECTION.  6.  A civil action to enforce subsection 5
  4 28 may also be maintained in any court of competent jurisdiction
  4 29 by the commissioner or by any party injured by a violation
  4 30 of subsection 5.  An employer or other person who retaliates
  4 31 against an employee or other person in violation of subsection
  4 32 5 shall be required to pay the employee or other person
  4 33 an amount set by the commissioner or a court sufficient to
  4 34 compensate the employee or other person and to deter future
  4 35 violations, but not less than one hundred fifty dollars for
  5  1 each day that the violation occurred.
  5  2    Sec. 11.  NEW SECTION.  91A.12A  Erroneous violations.
  5  3    If an employer erroneously violates the provisions of this
  5  4 chapter or the rules adopted pursuant to this chapter, the
  5  5 employer shall not be subject to liability to an employee
  5  6 pursuant to section 91A.8, the violation shall not constitute
  5  7 an enforceable claim as provided in section 91A.10, and the
  5  8 employer shall not be subject to a civil money penalty pursuant
  5  9 to section 91A.12, if all of the following conditions are met:
  5 10    a.  The commissioner determines that the violation was
  5 11 erroneous and that the employer attempted in good faith to
  5 12 comply with the provisions of this chapter and the rules
  5 13 adopted pursuant to this chapter.
  5 14    b.  The commissioner, after considering any history of
  5 15 violations of this chapter or the rules adopted pursuant to
  5 16 this chapter by the employer, determines that the violation was
  5 17 isolated in nature.
  5 18    c.  The employer corrects the violation to the satisfaction
  5 19 of the labor commissioner within fourteen days of the
  5 20 occurrence of the violation.
  5 21    Sec. 12.  NEW SECTION.  91A.15  Commissions earned date.
  5 22    An employer shall not require that a person be a current
  5 23 employee to be paid a commission that the person otherwise
  5 24 earned.
  5 25    Sec. 13.  NEW SECTION.  91A.16  Inconsistency with federal
  5 26 law.
  5 27    A provision of this chapter shall not apply to any employer
  5 28 or employee if such provision would conflict with federal law
  5 29 or regulation.
  5 30    Sec. 14.  NOTIFICATION REQUIREMENTS.  The labor commissioner
  5 31 shall provide for the notification of each employer in this
  5 32 state of the requirements for employers provided in this Act by
  5 33 September 1, 2015.  Such notification shall include suggested
  5 34 forms and procedures that employers may use for purposes of
  5 35 compliance with the notice and recordkeeping requirements of
  6  1 section 91A.6, as amended by this Act.
  6  2    Sec. 15.  EFFECTIVE DATE.  This Act takes effect January 1,
  6  3 2016.
  6  4                           EXPLANATION
  6  5 The inclusion of this explanation does not constitute agreement with
  6  6 the explanation's substance by the members of the general assembly.
  6  7    This bill relates to employers and individuals who perform
  6  8 labor and wage payment collection.
  6  9    Code section 91A.5 is amended to provide that the employer
  6 10 has the burden to establish that a deduction from employees'
  6 11 wages is lawful and that the employer must obtain written
  6 12 authorization for the deduction from the employee in advance.
  6 13    Code section 91A.6(1) is amended to remove the requirement
  6 14 that an employer be notified by the division of labor services
  6 15 of the department of workforce development before the employer
  6 16 is required to fulfill the requirements in subsection 1
  6 17 relating to employee wage and benefit information.  In new
  6 18 Code section 91A.6(1)(b), the employer is required to notify
  6 19 employees in writing whose wages are determined based on a
  6 20 task, piece, mile, or load basis about the method used to
  6 21 calculate wages and when wages are earned.  Code section
  6 22 91A.6(1)(e) is amended to establish a rebuttable presumption
  6 23 that an employer did not pay the minimum wage if the employer
  6 24 does not maintain proper payroll records.
  6 25    Current Code section 91A.6(2), setting out certain employer
  6 26 compliance procedures, is stricken.
  6 27    Code section 91A.6(4) is amended so that the employer
  6 28 must send to each employee by mail, or at the place of
  6 29 business during the employee's working hours a statement of
  6 30 the employee's earnings, deductions made, and as applicable
  6 31 the following:  for an employee paid hourly, the number of
  6 32 hours worked during the pay period; for an employee paid on a
  6 33 percentage of sales or revenue generated, a list of sales or
  6 34 amount of revenue during the pay period; and for an employee
  6 35 paid based on the number of miles or loads performed, the
  7  1 applicable number performed during the pay period.  An employer
  7  2 who provides an electronic statement and gives employees free
  7  3 and unrestricted access to print out the statement is in
  7  4 compliance with the Code section.
  7  5    In amended Code section 91A.8, when any specified violation
  7  6 of Code chapter 91A occurs, even if unintentional, an employer
  7  7 shall be liable for unpaid wages or expenses plus liquidated
  7  8 damages, court costs, and attorney fees incurred in recovering
  7  9 wages.
  7 10    The bill amends Code section 91A.9 to require the labor
  7 11 commissioner to employ wage investigators for the enforcement
  7 12 of Code chapter 91A, and to establish a statewide, toll=free
  7 13 telephone hotline for the purpose of receiving reports of
  7 14 violations of Code chapter 91A.
  7 15    Code section 91A.10(5), which covers retaliatory actions
  7 16 by employers or others, is expanded to cover persons other
  7 17 than employees who act under Code chapter 91A with respect
  7 18 to an employee.  A 90=day period is established during which
  7 19 any action against an employee or other person is rebuttably
  7 20 presumed to be retaliatory.  New subsection 6 is created in
  7 21 Code section 91A.10 to allow the labor commissioner or any
  7 22 injured party to maintain a civil action in any court of proper
  7 23 jurisdiction.  An employer who retaliates against an employee
  7 24 or other person shall compensate the injured party an amount
  7 25 set by the labor commissioner or the court, but not less than
  7 26 $150 for each day of the violation.
  7 27    The bill creates new Code section 91A.12A to provide that
  7 28 if an employer erroneously violates the provisions of Code
  7 29 chapter 91A or the rules adopted pursuant to Code chapter
  7 30 91A, the employer shall not be subject to certain penalty
  7 31 provisions provided in Code chapter 91A if certain conditions
  7 32 are met. The first condition is that the labor commissioner
  7 33 determines that the violation was erroneous and that the
  7 34 employer attempted in good faith to comply with the provisions
  7 35 of Code chapter 91A and the rules adopted pursuant to Code
  8  1 chapter 91A.  The second condition is that the commissioner,
  8  2 after considering any history of violations by the employer,
  8  3 determines that the violation was isolated in nature. The
  8  4 third condition is that the employer corrects the violation
  8  5 to the satisfaction of the commissioner within 14 days of the
  8  6 occurrence of the violation.
  8  7    In new Code section 91A.15, an employer shall not require
  8  8 that an individual be a current employee to be paid an earned
  8  9 commission.
  8 10    The bill creates new Code section 91A.16 to stipulate that a
  8 11 provision of Code chapter 91A shall not apply to any employer
  8 12 or employee if such provision would conflict with federal law
  8 13 or regulation.
  8 14    The bill requires the labor commissioner to provide for the
  8 15 notification of each employer in Iowa of the requirements for
  8 16 employers provided in the bill by September 1, 2015. Such
  8 17 notification shall include suggested forms and procedures
  8 18 that employers may use for purposes of compliance with the
  8 19 notice and recordkeeping requirements of Code section 91A.6,
  8 20 as amended by the bill.
  8 21    An employer who violates Code chapter 91A is subject to a
  8 22 civil penalty of not more than $500 per pay period for each
  8 23 violation.
  8 24    The bill takes effect January 1, 2016.
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