Senate File 413 - Reprinted
SENATE FILE
BY COMMITTEE ON LABOR AND
BUSINESS RELATIONS
(SUCCESSOR TO SF 157)
Passed Senate, Date Passed House, Date
Vote: Ayes Nays Vote: Ayes Nays
Approved
A BILL FOR
1 An Act relating to wage payment collection issues arising between
2 employers and individuals who provide services to employers,
3 providing penalties, and including an effective date.
4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
5 TLSB 2067SV 83
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PAG LIN
1 1 Section 1. Section 91A.2, subsection 6, Code 2009, is
1 2 amended to read as follows:
1 3 6. "Liquidated damages" means the sum of five percent
1 4 multiplied by the amount of any wages that were not paid or of
1 5 any authorized expenses that were not reimbursed on a regular
1 6 payday or on another day pursuant to section 91A.3 multiplied
1 7 by the total number of days, excluding Sundays, legal
1 8 holidays, and the first seven days after the regular payday on
1 9 which wages were not paid or expenses were not reimbursed.
1 10 However, such sum shall not exceed twice the amount of the
1 11 unpaid wages and shall not accumulate when an employer is
1 12 subject to a petition filed in bankruptcy.
1 13 Sec. 2. Section 91A.5, subsection 1, unnumbered paragraph
1 14 1, Code 2009, is amended to read as follows:
1 15 An employer shall have the burden to establish that a
1 16 deduction from employee wages is lawful. An employer shall
1 17 not withhold or divert any portion of an employee's wages
1 18 unless:
1 19 Sec. 3. Section 91A.5, subsection 1, paragraph b, Code
1 20 2009, is amended to read as follows:
1 21 b. The employer has obtains advance written authorization
1 22 from the employee to so deduct for any lawful purpose accruing
1 23 to the benefit of the employee.
1 24 Sec. 4. Section 91A.6, subsection 1, Code 2009, is amended
1 25 to read as follows:
1 26 1. An employer shall after being notified by the
1 27 commissioner pursuant to subsection 2 do the following:
1 28 a. Notify its employees in writing at the time of hiring
1 29 what wages and regular paydays are designated by the employer.
1 30 b. Notify its employees in writing whose wages are
1 31 determined based on a task, piece, mile, or load basis about
1 32 the method used to calculate wages and when the wages are
1 33 earned by the employees.
1 34 c. Notify, at least one pay period prior to the initiation
1 35 of any changes, its employees of any changes in the
2 1 arrangements specified in this subsection 1 that reduce wages
2 2 or alter the regular paydays. The notice shall either be in
2 3 writing or posted at a place where employee notices are
2 4 routinely posted.
2 5 c. d. Make available to its employees upon written
2 6 request, a written statement enumerating employment agreements
2 7 and policies with regard to vacation pay, sick leave,
2 8 reimbursement for expenses, retirement benefits, severance
2 9 pay, or other comparable matters with respect to wages.
2 10 Notice of such availability shall be given to each employee in
2 11 writing or by a notice posted at a place where employee
2 12 notices are routinely posted.
2 13 d. e. Establish, maintain, and preserve for three
2 14 calendar years the payroll records showing the hours worked,
2 15 wages earned, and deductions made for each employee and any
2 16 employment agreements entered into between an employer and
2 17 employee. Failure to do so shall raise a rebuttable
2 18 presumption that the employer did not pay the required minimum
2 19 wage under section 91D.1.
2 20 Sec. 5. Section 91A.6, subsection 2, Code 2009, is amended
2 21 by striking the subsection.
2 22 Sec. 6. Section 91A.6, subsection 4, Code 2009, is amended
2 23 by striking the subsection and inserting in lieu thereof the
2 24 following:
2 25 4. a. On each regular payday, the employer shall send to
2 26 each employee by mail or shall provide at the employee's
2 27 normal place of employment during normal employment hours a
2 28 statement showing the wages earned by the employee, the
2 29 deductions made for the employee, and the following
2 30 information, as applicable:
2 31 (1) For each employee paid in whole or in part on an
2 32 hourly basis, the statement shall show the hours the employee
2 33 worked.
2 34 (2) For each employee paid based on a percentage of sales
2 35 or based on a percentage of revenue generated for the
3 1 employer, the statement shall include a list of the amount of
3 2 each sale or the amount of revenue during the pay period.
3 3 (3) For each employee whose pay is based on the number of
3 4 miles or loads performed, the statement shall include the
3 5 applicable number performed during the pay period.
3 6 b. An employer who provides each employee access to view
3 7 an electronic statement of the employee's earnings and
3 8 provides the employee free and unrestricted access to a
3 9 printer to print the employee's statement of earnings, if the
3 10 employee chooses, is in compliance with this subsection.
3 11 Sec. 7. Section 91A.8, Code 2009, is amended to read as
3 12 follows:
3 13 91A.8 DAMAGES RECOVERABLE BY AN EMPLOYEE.
3 14 When it has been shown that an employer has intentionally
3 15 failed to pay an employee wages or reimburse expenses pursuant
3 16 to section 91A.3, whether as the result of a wage dispute or
3 17 otherwise, the employer shall be liable to the employee for
3 18 any the unpaid wages or expenses that are so intentionally
3 19 failed to be paid or reimbursed, plus liquidated damages,
3 20 court costs, and any attorney's attorney fees incurred in
3 21 recovering the unpaid wages and determined to have been usual
3 22 and necessary. In other instances the employer shall be
3 23 liable only for unpaid wages or expenses, court costs and
3 24 usual and necessary attorney's fees incurred in recovering the
3 25 unpaid wages or expenses.
3 26 Sec. 8. Section 91A.10, subsection 5, Code 2009, is
3 27 amended to read as follows:
3 28 5. An employer shall not discharge or in any other manner
3 29 discriminate against any employee because the employee has
3 30 filed a complaint, assigned a claim, or brought an action
3 31 under this section or has cooperated in bringing any action
3 32 against an employer.
3 33 5. a. An employer or other person shall not discharge or
3 34 in any other manner discriminate or retaliate against any of
3 35 the following:
4 1 (1) An employee or other person for exercising any right
4 2 provided under this chapter or any rules adopted pursuant to
4 3 this chapter.
4 4 (2) Another employee or person for providing assistance to
4 5 an employee or providing information regarding the employee or
4 6 person.
4 7 (3) Another employee or person for testifying or planning
4 8 to testify in any investigation or proceeding regarding the
4 9 employee or person.
4 10 b. Taking adverse action against an employee or other
4 11 person within ninety days of an employee's or other person's
4 12 engaging in any of the activities in paragraph "a" raises a
4 13 presumption that such action was retaliation, which may be
4 14 rebutted by evidence that such action was taken for other
4 15 permissible reasons.
4 16 c. Any employee may file a complaint with the commissioner
4 17 alleging discharge, or discrimination, or retaliation within
4 18 thirty days after such violation occurs. Upon receipt of the
4 19 complaint, the commissioner shall cause an investigation to be
4 20 made to the extent deemed appropriate. If the commissioner
4 21 determines from the investigation that the provisions of this
4 22 subsection have been violated, the commissioner shall bring an
4 23 action in the appropriate district court against such person.
4 24 The district court shall have jurisdiction, for cause shown,
4 25 to restrain violations of this subsection and order all
4 26 appropriate relief including rehiring or reinstatement of the
4 27 employee to the former position with back pay.
4 28 Sec. 9. Section 91A.10, Code 2009, is amended by adding
4 29 the following new subsection:
4 30 NEW SUBSECTION. 6. A civil action to enforce subsection 5
4 31 may also be maintained in any court of competent jurisdiction
4 32 by the commissioner or by any party injured by a violation in
4 33 subsection 5. An employer or other person who retaliates
4 34 against an employee or other person in violation of subsection
4 35 5 shall be required to pay the employee or other person an
5 1 amount set by the commissioner or a court sufficient to
5 2 compensate the employee or other person and to deter future
5 3 violations, but not less than one hundred fifty dollars for
5 4 each day that the violation occurred.
5 5 Sec. 10. NEW SECTION. 91A.15 PERSONAL LIABILITY
5 6 JUDGMENTS.
5 7 1. An officer of a corporation, an officer of an
5 8 association, a member of a limited liability company, a
5 9 manager of a limited liability company, or a partner of a
5 10 partnership is personally liable for a judgment obtained
5 11 against an employer for failure to pay wages due pursuant to
5 12 this chapter or chapter 91D, notwithstanding sections
5 13 490A.601, 490A.602, 497.33, 498.21, 498.35, 499.59, or any
5 14 other provision of law. The dissolution of a corporation,
5 15 association, limited liability company, or partnership shall
5 16 not discharge a person's liability for payment of a judgment
5 17 under this section.
5 18 2. No person shall be held personally liable for payment
5 19 of a judgment under this section unless the person meets all
5 20 of the following criteria:
5 21 a. The person has control, supervision of, or authority
5 22 for remitting wage payments.
5 23 b. The person has a controlling interest or ownership in
5 24 the employing entity and knowingly violates provisions of this
5 25 chapter.
5 26 3. Personal liability under this section applies only to
5 27 those portions of a judgment based directly on wages and does
5 28 not apply to court costs, attorney fees, civil penalties,
5 29 interest, and liquidated damages.
5 30 Sec. 11. NEW SECTION. 91A.16 COMMISSIONS EARNED DATE.
5 31 An employer shall not require that a person be a current
5 32 employee to be paid a commission that the person otherwise
5 33 earned.
5 34 Sec. 12. EFFECTIVE DATE. This Act takes effect January 1,
5 35 2010.
6 1 SF 413
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