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Senate Study Bill 65

Conference Committee Text

PAG LIN
  1  1    Section 1.  Section 91A.4, Code 1995, is amended to read as
  1  2 follows:
  1  3    91A.4  EMPLOYMENT SUSPENSION OR TERMINATION &endash; HOW WAGES
  1  4 ARE PAID.
  1  5    When the employment of an employee is suspended or
  1  6 terminated, the employer shall pay all wages earned, less any
  1  7 lawful deductions specified in section 91A.5 by the employee
  1  8 up to the time of the suspension or termination not later than
  1  9 the next regular payday for the pay period in which the wages
  1 10 were earned as provided in section 91A.3. However, if any of
  1 11 these wages are the difference between a credit paid against
  1 12 wages determined on a commission basis and such the wages
  1 13 actually earned on a commission basis, the employer shall pay
  1 14 such the difference not more than thirty days after the date
  1 15 of suspension or termination.  If vacations are due an
  1 16 employee under an agreement with the employer or a policy of
  1 17 the employer establishing pro rata vacation accrued, the
  1 18 increment shall be in proportion to the fraction of the year
  1 19 which the employee was actually employed.  
  1 20                           EXPLANATION
  1 21    The bill provides that wages earned by an employee whose
  1 22 employment is suspended or terminated shall be paid at the
  1 23 next regular payday in the pay period for which the wages were
  1 24 earned.  
  1 25                      BACKGROUND STATEMENT
  1 26                     SUBMITTED BY THE AGENCY
  1 27    Several interpretations are being made about when an
  1 28 individual is to be paid after a suspension or termination.
  1 29 This language clarifies that people must be paid on the payday
  1 30 identified for the pay period in which wages were earned.  For
  1 31 example, if pay periods are from the 1-14 and the 15-31 with
  1 32 regular paydays on the seventh and 21st, and the person is
  1 33 terminated on the 20th, that person would be paid for the 1-14
  1 34 pay period on the 21st and for the 15-20 pay period on the
  1 35 next regular payday, which would be the seventh.  Without this
  2  1 language and under this scenario, an argument could be made
  2  2 that the person's next regular payday is the 21st.  
  2  3 LSB 1175DP 76
  2  4 kh/cf/24
     
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