Senate
File
80
-
Introduced
SENATE
FILE
80
BY
BOLKCOM
,
TAYLOR
,
PETERSEN
,
HART
,
BOULTON
,
BISIGNANO
,
DOTZLER
,
DVORSKY
,
BOWMAN
,
KINNEY
,
JOCHUM
,
LYKAM
,
HOGG
,
and
McCOY
A
BILL
FOR
An
Act
relating
to
wage
payment
collection
issues
arising
1
between
employers
and
individuals
who
provide
services
to
2
employers,
providing
penalties
and
remedies,
and
including
3
effective
date
provisions.
4
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
5
TLSB
1409XS
(2)
87
je/rj
S.F.
80
Section
1.
Section
91A.5,
subsection
1,
unnumbered
1
paragraph
1,
Code
2017,
is
amended
to
read
as
follows:
2
An
employer
shall
have
the
burden
to
establish
that
a
3
deduction
from
employee
wages
is
lawful.
An
employer
shall
not
4
withhold
or
divert
any
portion
of
an
employee’s
wages
unless:
5
Sec.
2.
Section
91A.5,
subsection
1,
paragraph
b,
Code
2017,
6
is
amended
to
read
as
follows:
7
b.
The
employer
has
obtains
advance
written
authorization
8
from
the
employee
to
so
deduct
for
any
lawful
purpose
accruing
9
to
the
benefit
of
the
employee.
10
Sec.
3.
Section
91A.6,
subsection
1,
Code
2017,
is
amended
11
to
read
as
follows:
12
1.
An
employer
shall
after
being
notified
by
the
13
commissioner
pursuant
to
subsection
2
do
the
following
:
14
a.
Notify
its
employees
in
writing
at
the
time
of
hiring
15
what
wages
and
regular
paydays
are
designated
by
the
employer.
16
b.
Notify
its
employees
in
writing
whose
wages
are
17
determined
based
on
a
task,
piece,
mile,
or
load
basis
about
18
the
method
used
to
calculate
wages
and
when
the
wages
are
19
earned
by
the
employees.
20
b.
c.
Notify,
at
least
one
pay
period
prior
to
the
21
initiation
of
any
changes,
its
employees
of
any
changes
in
22
the
arrangements
specified
in
this
subsection
1
that
reduce
23
wages
or
alter
the
regular
paydays.
The
notice
shall
either
24
be
in
writing
or
posted
at
a
place
where
employee
notices
are
25
routinely
posted.
26
c.
d.
Make
available
to
its
employees
upon
written
request,
27
a
written
statement
enumerating
employment
agreements
and
28
policies
with
regard
to
vacation
pay,
sick
leave,
reimbursement
29
for
expenses,
retirement
benefits,
severance
pay,
or
other
30
comparable
matters
with
respect
to
wages.
Notice
of
such
31
availability
shall
be
given
to
each
employee
in
writing
or
by
a
32
notice
posted
at
a
place
where
employee
notices
are
routinely
33
posted.
34
d.
e.
Establish,
maintain,
and
preserve
for
three
35
-1-
LSB
1409XS
(2)
87
je/rj
1/
8
S.F.
80
calendar
years
the
payroll
records
showing
the
hours
worked,
1
wages
earned,
and
deductions
made
for
each
employee
and
2
any
employment
agreements
entered
into
between
an
employer
3
and
employee.
Failure
to
do
so
shall
raise
a
rebuttable
4
presumption
that
the
employer
did
not
pay
the
required
minimum
5
wage
under
section
91D.1.
6
Sec.
4.
Section
91A.6,
subsection
2,
Code
2017,
is
amended
7
by
striking
the
subsection.
8
Sec.
5.
Section
91A.6,
subsection
4,
Code
2017,
is
amended
9
by
striking
the
subsection
and
inserting
in
lieu
thereof
the
10
following:
11
4.
a.
On
each
regular
payday,
the
employer
shall
send
to
12
each
employee
by
mail
or
shall
provide
at
the
employee’s
normal
13
place
of
employment
during
normal
employment
hours
a
statement
14
showing
the
wages
earned
by
the
employee,
the
deductions
made
15
for
the
employee,
and
the
following
information,
as
applicable:
16
(1)
For
each
employee
paid
in
whole
or
in
part
on
an
hourly
17
basis,
the
statement
shall
show
the
hours
the
employee
worked.
18
(2)
For
each
employee
paid
based
on
a
percentage
of
sales
or
19
based
on
a
percentage
of
revenue
generated
for
the
employer,
20
the
statement
shall
include
a
list
of
the
amount
of
each
sale
21
or
the
amount
of
revenue
during
the
pay
period.
22
(3)
For
each
employee
whose
pay
is
based
on
the
number
23
of
miles
or
loads
performed,
the
statement
shall
include
the
24
applicable
number
performed
during
the
pay
period.
25
b.
An
employer
who
provides
each
employee
access
to
view
an
26
electronic
statement
of
the
employee’s
earnings
and
provides
27
the
employee
free
and
unrestricted
access
to
a
printer
to
print
28
the
employee’s
statement
of
earnings,
if
the
employee
chooses,
29
is
in
compliance
with
this
subsection.
30
Sec.
6.
Section
91A.8,
Code
2017,
is
amended
to
read
as
31
follows:
32
91A.8
Damages
recoverable
by
an
employee.
33
When
it
has
been
shown
that
an
employer
has
intentionally
34
failed
to
pay
an
employee
wages
or
reimburse
expenses
pursuant
35
-2-
LSB
1409XS
(2)
87
je/rj
2/
8
S.F.
80
to
section
91A.3
,
whether
as
the
result
of
a
wage
dispute
or
1
otherwise,
the
employer
shall
be
liable
to
the
employee
for
2
any
the
unpaid
wages
or
unreimbursed
expenses
that
are
so
3
intentionally
failed
to
be
paid
or
reimbursed
,
plus
liquidated
4
damages,
court
costs
,
and
any
attorney’s
attorney
fees
incurred
5
in
recovering
the
unpaid
wages
or
unreimbursed
expenses
6
and
determined
to
have
been
usual
and
necessary.
In
other
7
instances
the
employer
shall
be
liable
only
for
unpaid
wages
or
8
expenses,
court
costs
and
usual
and
necessary
attorney’s
fees
9
incurred
in
recovering
the
unpaid
wages
or
expenses.
10
Sec.
7.
Section
91A.9,
subsection
3,
Code
2017,
is
amended
11
to
read
as
follows:
12
3.
The
commissioner
may
employ
such
qualified
personnel
13
as
are
necessary
for
the
enforcement
of
this
chapter
.
Such
14
personnel
shall
be
employed
pursuant
to
chapter
8A,
subchapter
15
IV
.
The
commissioner
shall
employ
wage
investigators
for
the
16
enforcement
of
this
chapter.
17
Sec.
8.
Section
91A.9,
Code
2017,
is
amended
by
adding
the
18
following
new
subsection:
19
NEW
SUBSECTION
.
4A.
The
commissioner
shall
establish
a
20
statewide,
toll-free
telephone
hotline
for
the
purpose
of
21
receiving
reports
of
violations
of
this
chapter.
22
Sec.
9.
Section
91A.10,
subsection
5,
Code
2017,
is
amended
23
to
read
as
follows:
24
5.
An
employer
shall
not
discharge
or
in
any
other
manner
25
discriminate
against
any
employee
because
the
employee
has
26
filed
a
complaint,
assigned
a
claim,
or
brought
an
action
under
27
this
section
or
has
cooperated
in
bringing
any
action
against
28
an
employer.
29
5.
a.
An
employer
or
other
person
shall
not
discharge
or
30
in
any
other
manner
discriminate
or
retaliate
against
any
of
31
the
following:
32
(1)
An
employee
or
other
person
for
exercising
any
right
33
provided
under
this
chapter
or
any
rules
adopted
pursuant
to
34
this
chapter.
35
-3-
LSB
1409XS
(2)
87
je/rj
3/
8
S.F.
80
(2)
Another
employee
or
person
for
providing
assistance
to
1
an
employee
or
providing
information
regarding
the
employee
or
2
person.
3
(3)
Another
employee
or
person
for
testifying
or
planning
4
to
testify
in
any
investigation
or
proceeding
regarding
the
5
employee
or
person.
6
b.
Taking
adverse
action
against
an
employee
or
other
person
7
within
ninety
days
of
an
employee’s
or
other
person’s
engaging
8
in
any
of
the
activities
in
paragraph
“a”
raises
a
presumption
9
that
such
action
was
retaliation,
which
may
be
rebutted
by
10
evidence
that
such
action
was
taken
for
other
permissible
11
reasons.
12
c.
Any
employee
may
file
a
complaint
with
the
commissioner
13
alleging
discharge
,
or
discrimination
,
or
retaliation
within
14
thirty
days
after
such
violation
occurs.
Upon
receipt
of
the
15
complaint,
the
commissioner
shall
cause
an
investigation
to
be
16
made
to
the
extent
deemed
appropriate.
If
the
commissioner
17
determines
from
the
investigation
that
the
provisions
of
this
18
subsection
have
been
violated,
the
commissioner
shall
bring
19
an
action
in
the
appropriate
district
court
against
such
20
person.
The
district
court
shall
have
jurisdiction,
for
cause
21
shown,
to
restrain
violations
of
this
subsection
and
order
all
22
appropriate
relief
including
rehiring
or
reinstatement
of
the
23
employee
to
the
former
position
with
back
pay.
24
Sec.
10.
Section
91A.10,
Code
2017,
is
amended
by
adding
the
25
following
new
subsection:
26
NEW
SUBSECTION
.
6.
A
civil
action
to
enforce
subsection
5
27
may
also
be
maintained
in
any
court
of
competent
jurisdiction
28
by
the
commissioner
or
by
any
party
injured
by
a
violation
29
of
subsection
5.
An
employer
or
other
person
who
retaliates
30
against
an
employee
or
other
person
in
violation
of
subsection
31
5
shall
be
required
to
pay
the
employee
or
other
person
32
an
amount
set
by
the
commissioner
or
a
court
sufficient
to
33
compensate
the
employee
or
other
person
and
to
deter
future
34
violations,
but
not
less
than
one
hundred
fifty
dollars
for
35
-4-
LSB
1409XS
(2)
87
je/rj
4/
8
S.F.
80
each
day
that
the
violation
occurred.
1
Sec.
11.
NEW
SECTION
.
91A.12A
Erroneous
violations.
2
If
an
employer
erroneously
violates
the
provisions
of
this
3
chapter
or
the
rules
adopted
pursuant
to
this
chapter,
the
4
employer
shall
not
be
subject
to
liability
to
an
employee
5
pursuant
to
section
91A.8,
the
violation
shall
not
constitute
6
an
enforceable
claim
as
provided
in
section
91A.10,
and
the
7
employer
shall
not
be
subject
to
a
civil
money
penalty
pursuant
8
to
section
91A.12,
if
all
of
the
following
conditions
are
met:
9
a.
The
commissioner
determines
that
the
violation
was
10
erroneous
and
that
the
employer
attempted
in
good
faith
to
11
comply
with
the
provisions
of
this
chapter
and
the
rules
12
adopted
pursuant
to
this
chapter.
13
b.
The
commissioner,
after
considering
any
history
of
14
violations
of
this
chapter
or
the
rules
adopted
pursuant
to
15
this
chapter
by
the
employer,
determines
that
the
violation
was
16
isolated
in
nature.
17
c.
The
employer
corrects
the
violation
to
the
satisfaction
18
of
the
labor
commissioner
within
fourteen
days
of
the
19
occurrence
of
the
violation.
20
Sec.
12.
NEW
SECTION
.
91A.15
Commissions
earned
date.
21
An
employer
shall
not
require
that
a
person
be
a
current
22
employee
to
be
paid
a
commission
that
the
person
otherwise
23
earned.
24
Sec.
13.
NEW
SECTION
.
91A.16
Inconsistency
with
federal
25
law.
26
A
provision
of
this
chapter
shall
not
apply
to
any
employer
27
or
employee
if
such
provision
would
conflict
with
federal
law
28
or
regulation.
29
Sec.
14.
NOTIFICATION
REQUIREMENTS.
The
labor
commissioner
30
shall
provide
for
the
notification
of
each
employer
in
this
31
state
of
the
requirements
for
employers
provided
in
this
Act
by
32
September
1,
2017.
Such
notification
shall
include
suggested
33
forms
and
procedures
that
employers
may
use
for
purposes
of
34
compliance
with
the
notice
and
recordkeeping
requirements
of
35
-5-
LSB
1409XS
(2)
87
je/rj
5/
8
S.F.
80
section
91A.6,
as
amended
by
this
Act.
1
Sec.
15.
EFFECTIVE
DATE.
This
Act
takes
effect
January
1,
2
2018.
3
EXPLANATION
4
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
5
the
explanation’s
substance
by
the
members
of
the
general
assembly.
6
This
bill
relates
to
employers
and
individuals
who
perform
7
labor
and
wage
payment
collection.
8
Code
section
91A.5
is
amended
to
provide
that
the
employer
9
has
the
burden
to
establish
that
a
deduction
from
employees’
10
wages
is
lawful
and
that
the
employer
must
obtain
written
11
authorization
for
the
deduction
from
the
employee
in
advance.
12
Code
section
91A.6(1)
is
amended
to
remove
the
requirement
13
that
an
employer
be
notified
by
the
division
of
labor
services
14
of
the
department
of
workforce
development
before
the
employer
15
is
required
to
fulfill
the
requirements
in
subsection
1
16
relating
to
employee
wage
and
benefit
information.
In
new
17
Code
section
91A.6(1)(b),
the
employer
is
required
to
notify
18
employees
in
writing
whose
wages
are
determined
based
on
a
19
task,
piece,
mile,
or
load
basis
about
the
method
used
to
20
calculate
wages
and
when
wages
are
earned.
Code
section
21
91A.6(1)(e)
is
amended
to
establish
a
rebuttable
presumption
22
that
an
employer
did
not
pay
the
minimum
wage
if
the
employer
23
does
not
maintain
proper
payroll
records.
24
Current
Code
section
91A.6(2),
setting
out
certain
employer
25
compliance
procedures,
is
stricken.
26
Code
section
91A.6(4)
is
amended
so
that
the
employer
27
must
send
to
each
employee
by
mail,
or
at
the
place
of
28
business
during
the
employee’s
working
hours
a
statement
of
29
the
employee’s
earnings,
deductions
made,
and
as
applicable
30
the
following:
for
an
employee
paid
hourly,
the
number
of
31
hours
worked
during
the
pay
period;
for
an
employee
paid
on
a
32
percentage
of
sales
or
revenue
generated,
a
list
of
sales
or
33
amount
of
revenue
during
the
pay
period;
and
for
an
employee
34
paid
based
on
the
number
of
miles
or
loads
performed,
the
35
-6-
LSB
1409XS
(2)
87
je/rj
6/
8
S.F.
80
applicable
number
performed
during
the
pay
period.
An
employer
1
who
provides
an
electronic
statement
and
gives
employees
free
2
and
unrestricted
access
to
print
out
the
statement
is
in
3
compliance
with
the
Code
section.
4
In
amended
Code
section
91A.8,
when
any
specified
violation
5
of
Code
chapter
91A
occurs,
even
if
unintentional,
an
employer
6
shall
be
liable
for
unpaid
wages
or
expenses
plus
liquidated
7
damages,
court
costs,
and
attorney
fees
incurred
in
recovering
8
wages.
9
The
bill
amends
Code
section
91A.9
to
require
the
labor
10
commissioner
to
employ
wage
investigators
for
the
enforcement
11
of
Code
chapter
91A,
and
to
establish
a
statewide,
toll-free
12
telephone
hotline
for
the
purpose
of
receiving
reports
of
13
violations
of
Code
chapter
91A.
14
Code
section
91A.10(5),
which
covers
retaliatory
actions
15
by
employers
or
others,
is
expanded
to
cover
persons
other
16
than
employees
who
act
under
Code
chapter
91A
with
respect
17
to
an
employee.
A
90-day
period
is
established
during
which
18
any
action
against
an
employee
or
other
person
is
rebuttably
19
presumed
to
be
retaliatory.
New
subsection
6
is
created
in
20
Code
section
91A.10
to
allow
the
labor
commissioner
or
any
21
injured
party
to
maintain
a
civil
action
in
any
court
of
proper
22
jurisdiction.
An
employer
who
retaliates
against
an
employee
23
or
other
person
shall
compensate
the
injured
party
an
amount
24
set
by
the
labor
commissioner
or
the
court,
but
not
less
than
25
$150
for
each
day
of
the
violation.
26
The
bill
creates
new
Code
section
91A.12A
to
provide
that
27
if
an
employer
erroneously
violates
the
provisions
of
Code
28
chapter
91A
or
the
rules
adopted
pursuant
to
Code
chapter
29
91A,
the
employer
shall
not
be
subject
to
certain
penalty
30
provisions
provided
in
Code
chapter
91A
if
certain
conditions
31
are
met.
The
first
condition
is
that
the
labor
commissioner
32
determines
that
the
violation
was
erroneous
and
that
the
33
employer
attempted
in
good
faith
to
comply
with
the
provisions
34
of
Code
chapter
91A
and
the
rules
adopted
pursuant
to
Code
35
-7-
LSB
1409XS
(2)
87
je/rj
7/
8
S.F.
80
chapter
91A.
The
second
condition
is
that
the
commissioner,
1
after
considering
any
history
of
violations
by
the
employer,
2
determines
that
the
violation
was
isolated
in
nature.
The
3
third
condition
is
that
the
employer
corrects
the
violation
4
to
the
satisfaction
of
the
commissioner
within
14
days
of
the
5
occurrence
of
the
violation.
6
In
new
Code
section
91A.15,
an
employer
shall
not
require
7
that
an
individual
be
a
current
employee
to
be
paid
an
earned
8
commission.
9
The
bill
creates
new
Code
section
91A.16
to
stipulate
that
a
10
provision
of
Code
chapter
91A
shall
not
apply
to
any
employer
11
or
employee
if
such
provision
would
conflict
with
federal
law
12
or
regulation.
13
The
bill
requires
the
labor
commissioner
to
provide
for
the
14
notification
of
each
employer
in
Iowa
of
the
requirements
for
15
employers
provided
in
the
bill
by
September
1,
2017.
Such
16
notification
shall
include
suggested
forms
and
procedures
17
that
employers
may
use
for
purposes
of
compliance
with
the
18
notice
and
recordkeeping
requirements
of
Code
section
91A.6,
19
as
amended
by
the
bill.
20
An
employer
who
violates
Code
chapter
91A
is
subject
to
a
21
civil
penalty
of
not
more
than
$500
per
pay
period
for
each
22
violation.
23
The
bill
takes
effect
January
1,
2018.
24
-8-
LSB
1409XS
(2)
87
je/rj
8/
8