Iowa-2015-SF270-Introduced
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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