Bill Text: IA SF460 | 2015-2016 | 86th General Assembly | Amended
Bill Title: A bill for an act permitting the voluntary receipt by employees of payment of wages by debit card or pay card and making penalties and remedies applicable. (Formerly SSB 1004.)
Sponsorship: Committee Bill
Status: (Engrossed - Dead) 2015-03-18 - Subcommittee, Sexton, Kooiker, and McConkey. H.J. 638. [SF460 Detail]
Download: Iowa-2015-SF460-Amended.html
Senate File 460 - Reprinted SENATE FILE BY COMMITTEE ON LABOR AND BUSINESS RELATIONS (SUCCESSOR TO SSB 1004) (As Amended and Passed by the Senate March 17, 2015) A BILL FOR 1 An Act permitting the voluntary receipt by employees of payment 2 of wages by debit card or pay card and making penalties and 3 remedies applicable. 4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: SF 460 (4) 86 je/rj/bs PAG LIN 1 1 Section 1. Section 91A.3, subsection 3, Code 2015, is 1 2 amended to read as follows: 1 3 3. a. The wages paid under subsection 1 shall be paid using 1 4 a method authorized by this section. 1 5 b. Wages due may be paid at the employee's normal place of 1 6 employment during normal employment hours or at a place and 1 7 hour mutually agreed upon by the employer and employee, or the 1 8 employee may elect to have the wages sent for direct deposit, 1 9 on or by the regular payday of the employee, into a financial 1 10 institution designated by the employee. 1 11 c. Upon written request by the employee, wages due may be 1 12 sent to the employee by mail. The employer shall maintain a 1 13 copy of the request for as long as it is effective and for at 1 14 least two years thereafter. 1 15 d. The employee may elect to have wages due sent for 1 16 direct deposit, on or by the regular payday of the employee, 1 17 into a financial institution designated by the employee. An 1 18 employee hired on or after July 1, 2005, may be required, as 1 19 a condition of employment, to participate in direct deposit 1 20 of the employee's wages in a financial institution of the 1 21 employee's choice unless any of the following conditions exist: 1 22 (1) The costs to the employee of establishing and 1 23 maintaining an account for purposes of the direct deposit would 1 24 effectively reduce the employee's wages to a level below the 1 25 minimum wage provided under section 91D.1. 1 26 (2) The employee would incur fees charged to the employee's 1 27 account as a result of the direct deposit. 1 28 (3) The provisions of a collective bargaining agreement 1 29 mutually agreed upon by the employer and the employee 1 30 organization prohibit the employer from requiring an employee 1 31 to sign up for direct deposit as a condition of hire. 1 32 e. (1) An employer may offer payment of wages by debit 1 33 card or pay card pursuant to this section only if all of the 1 34 following requirements are met: 1 35 (a) The employee voluntarily agrees in writing to payment 2 1 by debit card or pay card after the employer offers to pay the 2 2 employee's wages by debit card or pay card and notifies the 2 3 employee in writing that receipt of payment by debit card or 2 4 pay card is voluntary on the employee's part and listing the 2 5 other method or methods of payment offered by the employer. 2 6 (b) The employee has the option of withdrawing all wages 2 7 due once per pay period, but not more frequently than once per 2 8 week, without incurring any charge, if such withdrawal of wages 2 9 is conducted at a financial institution's office location. For 2 10 purposes of this subparagraph division, "financial institution" 2 11 means the same as defined in section 537.1301. 2 12 (2) The employer shall retain copies of the employee's 2 13 written consent and the notice of charges for the period for 2 14 which the consent is effective and for at least two years 2 15 thereafter. 2 16 (3) The employer shall substitute another payment method 2 17 in accordance with this section no later than two pay periods 2 18 after receiving a request from an employee for termination of 2 19 payment by debit card or pay card. 2 20b.f. If the employer fails to pay an employee's wages on 2 21 or by the regular payday in accordance with this subsection, 2 22 the employer is liable for the amount of any overdraft charge 2 23 if the overdraft is created on the employee's account because 2 24 of the employer's failure to pay the wages on or by the regular 2 25 payday. The overdraft charges may be the basis for a claim 2 26 under section 91A.10 and for damages under section 91A.8. 2 27 Sec. 2. Section 91A.6, subsection 4, Code 2015, is amended 2 28 to read as follows: 2 29 4. On each regular payday, the employer shall send to 2 30 each employee by mail or shall provide at the employee's 2 31 normal place of employment during normal employment hours a 2 32 statement showing the beginning and ending dates of the pay 2 33 period to which the statement applies, the hours the employee 2 34 worked, the wages earned by the employee, and deductions made 2 35 for the employee. However, the employer need not provide 3 1 information on hours worked for employees who are exempt 3 2 from overtime under the federal Fair Labor Standards Act, 3 3 as defined in 29 C.F.R. pt. 541, unless the employer has 3 4 established a policy or practice of paying to or on behalf 3 5 of exempt employees overtime, a bonus, or a payment based on 3 6 hours worked, whereupon the employer shall send or otherwise 3 7 provide a statement to the exempt employees showing the hours 3 8 the employee worked or the payments made to the employee 3 9 by the employer, as applicable. An employer who provides 3 10 each employee access to view an electronic statement of 3 11 the employee's earnings and provides the employee free and 3 12 unrestricted access to a printer to print the employee's 3 13 statement of earnings, if the employee chooses, is in 3 14 compliance with this subsection. SF 460 (4) 86 je/rj/bs
