House
File
121
-
Introduced
HOUSE
FILE
121
BY
HUNTER
A
BILL
FOR
An
Act
relating
to
employee
leave
by
providing
for
time
off
and
1
vacation
leave,
making
penalties
applicable,
and
including
2
effective
date
and
applicability
provisions.
3
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
4
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121
Section
1.
Section
91A.2,
Code
2017,
is
amended
by
adding
1
the
following
new
subsection:
2
NEW
SUBSECTION
.
6A.
“Paid
time
off”
means
a
benefit
3
provided
by
an
employer
that
allows
an
employee
to
take
time
4
off
from
work
with
pay
without
regard
to
the
reason
the
5
employee
chooses
to
take
the
time
off.
6
Sec.
2.
Section
91A.2,
subsection
7,
paragraph
b,
Code
2017,
7
is
amended
to
read
as
follows:
8
b.
Vacation,
holiday,
paid
time
off,
sick
leave,
and
9
severance
payments
which
are
due
an
employee
under
an
agreement
10
with
the
employer
or
under
a
policy
or
practice
of
the
11
employer.
12
Sec.
3.
Section
91A.4,
Code
2017,
is
amended
by
striking
the
13
section
and
inserting
in
lieu
thereof
the
following:
14
91A.4
Employment
suspension
or
termination
——
calculation
and
15
payment
of
wages.
16
1.
If
the
employment
of
an
employee
is
suspended
or
17
terminated,
an
employee’s
employer
shall
pay
all
wages
18
earned
by
the
employee
up
to
the
time
of
the
suspension
or
19
termination,
less
any
lawful
deductions
specified
in
section
20
91A.5,
no
later
than
the
next
regular
payday
after
suspension
21
or
termination,
except
as
follows:
22
a.
Earned
wages
that
are
the
difference
between
a
credit
23
paid
against
wages
determined
on
a
commission
basis
and
the
24
wages
actually
earned
on
a
commission
basis
shall
be
paid
25
by
the
employer
not
more
than
thirty
days
after
the
date
of
26
suspension
or
termination.
27
b.
If
while
employed,
an
employee
earned
paid
time
off
28
but
did
not
earn
vacation,
an
employer
may
reduce
pay
for
29
accumulated
paid
time
off
by
up
to
one-third.
30
c.
If
while
employed,
an
employee
earned
both
vacation
pay
31
and
paid
time
off,
payment
for
accrued
paid
time
off
is
not
32
required.
33
2.
An
employer
shall
not
adopt
a
policy
or
practice
of
34
denying
payment
for
vacation
or
for
paid
time
off
upon
the
35
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suspension
or
termination
of
an
employee’s
employment
unless
1
the
employee’s
employment
was
terminated
by
the
employer
2
for
misconduct
as
defined
in
the
rules
of
the
department
of
3
workforce
development
pursuant
to
section
96.5,
subsection
2.
4
3.
Except
as
provided
in
subsection
1,
upon
suspension
or
5
termination
of
an
employee’s
employment,
the
amount
of
pay
owed
6
for
accrued
paid
time
off
or
accrued
vacation
shall
be
the
7
amount
of
pay
the
employee
would
have
received
if
the
employee
8
had
not
been
suspended
or
terminated
and
had
begun
taking
the
9
total
amount
of
accrued
paid
time
off
or
accrued
vacation
on
10
the
date
the
suspension
or
termination
occurred.
11
Sec.
4.
EFFECTIVE
UPON
ENACTMENT.
This
Act,
being
deemed
of
12
immediate
importance,
takes
effect
upon
enactment.
13
Sec.
5.
APPLICABILITY.
This
Act
applies
only
to
the
14
suspension
or
termination
of
an
employee’s
employment
that
15
takes
place
on
or
after
the
effective
date
of
this
Act.
16
EXPLANATION
17
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
18
the
explanation’s
substance
by
the
members
of
the
general
assembly.
19
This
bill
provides
employee
leave
by
providing
for
time
off
20
and
vacation
leave.
The
bill
relates
to
payments
for
accrued
21
vacation
time
and
for
accrued
paid
time
off
for
all
employees
22
who
are
terminated
or
suspended.
23
Current
law
requires
an
employer
to
pay
accrued
vacation
pay
24
to
a
terminated
or
suspended
employee
only
if
the
employer
has
25
a
policy,
procedure,
or
contract
that
requires
the
employer
to
26
do
so.
27
The
bill
defines
“paid
time
off”
as
a
benefit
allowing
an
28
employee
to
take
time
off
from
work
with
pay
without
regard
to
29
the
reason
the
employee
chooses
to
take
the
time
off.
“Paid
30
time
off”
is
also
added
to
the
definition
of
“wages”.
31
The
bill
provides
that
if
an
employee
is
suspended
or
32
terminated,
upon
request
the
employer
must
pay
all
earned
33
wages,
now
including
paid
time
off,
by
the
next
regular
payday.
34
The
bill
provides
for
an
employee
who
earned
paid
time
off
35
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while
employed
but
did
not
earn
vacation,
that
the
employer
may
1
reduce
the
pay
for
the
accrued
paid
time
off
by
one-third.
For
2
an
employee
who
earned
both
vacation
and
paid
time
off
while
3
employed,
the
employer
is
not
required
to
make
payment
for
the
4
paid
time
off.
5
An
employer
shall
not
adopt
a
policy
or
practice
to
deny
6
payment
for
accrued
vacation
or
accrued
paid
time
off
upon
the
7
suspension
or
termination
of
an
employee
unless
the
employee’s
8
employment
ended
due
to
misconduct.
Misconduct
is
defined
in
9
the
department
of
workforce
development’s
administrative
rules.
10
The
bill
provides
for
the
calculation
and
payment
of
an
11
employee’s
accrued
paid
time
off
or
vacation
if
the
employee
12
is
suspended
or
terminated.
The
amount
of
such
pay
owed
to
an
13
employee
is
the
amount
of
pay
equal
to
the
accrued
vacation
or
14
paid
time
off
as
if
the
employee
began
taking
the
vacation
or
15
paid
time
off
the
day
the
suspension
or
termination
took
place,
16
unless
otherwise
provided
in
the
bill.
17
Unpaid
wages
or
expenses,
along
with
liquidated
damages,
18
court
costs,
and
attorney’s
fees,
may
be
recovered
by
the
19
employee
or
the
commissioner
by
civil
action
under
Code
chapter
20
91A.
An
employer
who
violates
Code
chapter
91A
is
also
subject
21
to
a
civil
penalty
of
not
more
than
$500
per
pay
period
for
each
22
violation.
23
The
bill
takes
effect
upon
enactment.
The
bill
is
made
24
applicable
only
to
the
suspension
or
termination
of
an
25
employee’s
employment
that
occurs
on
or
after
that
date.
26
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