Bill Text: IA SSB3214 | 2013-2014 | 85th General Assembly | Introduced
Bill Title: A study bill for an act relating to payment of wages by debit card or pay card.
Spectrum: Unknown
Status: (N/A - Dead) 2014-03-31 - In Ways and Means [SSB3214 Detail]
Download: Iowa-2013-SSB3214-Introduced.html
Senate
Study
Bill
3214
-
Introduced
SENATE
FILE
_____
BY
(PROPOSED
COMMITTEE
ON
WAYS
AND
MEANS
BILL
BY
CHAIRPERSON
BOLKCOM)
A
BILL
FOR
An
Act
relating
to
payment
of
wages
by
debit
card
or
pay
card.
1
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
2
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Section
1.
Section
91A.3,
subsection
3,
Code
2014,
is
1
amended
to
read
as
follows:
2
3.
a.
The
wages
paid
under
subsection
1
shall
be
paid
using
3
a
method
authorized
by
this
section.
4
b.
Wages
due
may
be
paid
at
the
employee’s
normal
place
of
5
employment
during
normal
employment
hours
or
at
a
place
and
6
hour
mutually
agreed
upon
by
the
employer
and
employee
,
or
the
7
employee
may
elect
to
have
the
wages
sent
for
direct
deposit,
8
on
or
by
the
regular
payday
of
the
employee,
into
a
financial
9
institution
designated
by
the
employee
.
10
c.
Upon
written
request
by
the
employee,
wages
due
may
be
11
sent
to
the
employee
by
mail.
The
employer
shall
maintain
a
12
copy
of
the
request
for
as
long
as
it
is
effective
and
for
at
13
least
two
years
thereafter.
14
d.
The
employee
may
elect
to
have
wages
due
sent
for
15
direct
deposit,
on
or
by
the
regular
payday
of
the
employee,
16
into
a
financial
institution
designated
by
the
employee.
An
17
employee
hired
on
or
after
July
1,
2005,
may
be
required,
as
18
a
condition
of
employment,
to
participate
in
direct
deposit
19
of
the
employee’s
wages
in
a
financial
institution
of
the
20
employee’s
choice
unless
any
of
the
following
conditions
exist:
21
(1)
The
costs
to
the
employee
of
establishing
and
22
maintaining
an
account
for
purposes
of
the
direct
deposit
would
23
effectively
reduce
the
employee’s
wages
to
a
level
below
the
24
minimum
wage
provided
under
section
91D.1
.
25
(2)
The
employee
would
incur
fees
charged
to
the
employee’s
26
account
as
a
result
of
the
direct
deposit.
27
(3)
The
provisions
of
a
collective
bargaining
agreement
28
mutually
agreed
upon
by
the
employer
and
the
employee
29
organization
prohibit
the
employer
from
requiring
an
employee
30
to
sign
up
for
direct
deposit
as
a
condition
of
hire.
31
e.
(1)
The
employee
may
elect
to
have
wages
due
paid
by
32
debit
card
or
pay
card
if
all
of
the
following
conditions
are
33
met:
34
(a)
The
employee
is
provided
written
notice
of
all
possible
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charges
for
use
of
the
debit
card
or
pay
card
when
payment
1
by
debit
card
or
pay
card
is
offered
to
the
employee,
and
2
in
advance
of
any
change
in
the
amount
or
frequency
of
such
3
charges.
4
(b)
The
employee
agrees
in
writing
to
payment
by
debit
card
5
or
pay
card
without
coercion
or
fear
of
discharge
or
reprisal.
6
(c)
The
employee
has
the
option
of
withdrawing
all
wages
due
7
without
incurring
any
charge
for
use
of
the
debit
card
or
pay
8
card.
9
(2)
The
employer
shall
retain
copies
of
the
employee’s
10
written
consent
and
the
notice
of
charges
for
the
period
for
11
which
the
consent
is
effective
and
for
at
least
two
years
12
thereafter.
13
(3)
The
employer
shall
substitute
another
payment
method
14
in
accordance
with
this
section
no
later
than
two
pay
periods
15
after
receiving
a
request
for
termination
of
payment
by
debit
16
card
or
pay
card
from
an
employee.
17
b.
f.
If
the
employer
fails
to
pay
an
employee’s
wages
on
18
or
by
the
regular
payday
in
accordance
with
this
subsection
,
19
the
employer
is
liable
for
the
amount
of
any
overdraft
charge
20
if
the
overdraft
is
created
on
the
employee’s
account
because
21
of
the
employer’s
failure
to
pay
the
wages
on
or
by
the
regular
22
payday.
The
overdraft
charges
may
be
the
basis
for
a
claim
23
under
section
91A.10
and
for
damages
under
section
91A.8
.
24
EXPLANATION
25
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
26
the
explanation’s
substance
by
the
members
of
the
general
assembly.
27
This
bill
permits
employees
to
elect
to
have
wages
due
paid
28
by
debit
card
or
pay
card
under
Code
chapter
91A,
the
Iowa
29
wage
payment
collection
law,
if
certain
conditions
are
met.
30
The
employee
must
be
provided
written
notice
of
all
possible
31
charges
for
use
of
the
debit
card
or
pay
card
when
payment
32
by
debit
card
or
pay
card
is
offered
to
the
employee,
and
33
in
advance
of
any
change
in
the
amount
or
frequency
of
such
34
charges.
The
employee
must
agree
in
writing
to
payment
by
35
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debit
card
or
pay
card
without
coercion
or
fear
of
discharge
1
or
reprisal.
The
employee
must
have
the
option
of
withdrawing
2
all
wages
due
without
incurring
any
charge
for
use
of
the
debit
3
card
or
pay
card.
4
The
bill
requires
an
employer
to
retain
copies
of
the
5
employee’s
written
consent
and
the
notice
of
charges
for
the
6
period
for
which
the
consent
is
effective
and
for
at
least
two
7
years
thereafter.
The
bill
requires
an
employer
to
substitute
8
another
payment
method
no
later
than
two
pay
periods
after
9
receiving
a
request
for
termination
of
payment
by
debit
card
10
or
pay
card
from
an
employee.
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