House File 754 H-1168 Amend House File 754 as follows: 1 1. By striking everything after the enacting clause and 2 inserting: 3 < Section 1. Section 84A.5, subsection 4, Code 2021, is 4 amended to read as follows: 5 4. The division of labor services is responsible for the 6 administration of the laws of this state under chapters 88 , 7 88A , 88B , 89 , 89A , 89B , 90A , 91 , 91A , 91C , 91D , 91E , 91F, 92 , 8 and 94A , and sections 73A.21 and 85.68 . The executive head of 9 the division is the labor commissioner, appointed pursuant to 10 section 91.2 . 11 Sec. 2. Section 91.4, subsection 2, Code 2021, is amended 12 to read as follows: 13 2. The director of the department of workforce development, 14 in consultation with the labor commissioner, shall, at the 15 time provided by law, make an annual report to the governor 16 setting forth in appropriate form the business and expense of 17 the division of labor services for the preceding year, the 18 number of remedial actions taken under chapter 89A , the number 19 of disputes or violations processed by the division and the 20 disposition of the disputes or violations, and other matters 21 pertaining to the division which are of public interest, 22 together with recommendations for change or amendment of the 23 laws in this chapter and chapters 88 , 88A , 88B , 89 , 89A , 89B , 24 90A , 91A , 91C , 91D , 91E , 91F, 92 , and 94A , and section 85.68 , 25 and the recommendations, if any, shall be transmitted by the 26 governor to the first general assembly in session after the 27 report is filed. 28 Sec. 3. NEW SECTION . 91F.1 Meal and rest periods —— 29 requirements. 30 1. As used in this chapter, unless the context otherwise 31 requires: 32 a. “Commissioner” means the labor commissioner appointed 33 pursuant to section 91.2. 34 b. “Employee” means a natural person who is employed in this 35 -1- HF754.1238 (2) 89 je/rn 1/ 5 #1.

state for wages by an employer. 1 c. “Employer” means a person, as defined in section 4.1, 2 who in this state employs for wages a natural person. An 3 employer does not include a client, patient, customer, or 4 other person who obtains professional services from a licensed 5 person providing the services on a fee service basis or as an 6 independent contractor. 7 2. An employer shall provide an employee with appropriate 8 meal periods and appropriate rest periods. 9 a. An appropriate meal period shall be a period of not less 10 than thirty minutes during an employee’s work period in which 11 an employee works at least seven hours. The meal period shall 12 be taken between the second and fifth hours. If an employee 13 works more than seven hours, the meal period shall be taken 14 between the third and sixth hours. 15 b. An appropriate rest period shall be a paid period of 16 not less than ten minutes during every consecutive four-hour 17 period of work taken by an employee approximately in the middle 18 of each four-hour period. The rest period is in addition to a 19 meal period, if applicable, and shall not be added to a meal 20 period or deducted from the work period to reduce the overall 21 length of the total work period. 22 3. An employer is not required to pay for a meal period 23 if an employee is free from work duties during the employee’s 24 entire meal period. An employee shall be paid for the meal 25 period if any of the following occur: 26 a. The employee is required or allowed to remain on duty. 27 b. The employee is required to be on-call at the work 28 premises or designated worksite in order to be available to 29 return to duty even if the employee is not called back to duty. 30 c. The employee is called back to duty during the employee’s 31 meal period even though the employee is not usually on-call 32 during the meal period. 33 Sec. 4. NEW SECTION . 91F.2 Meal and rest periods —— 34 exemptions. 35 -2- HF754.1238 (2) 89 je/rn 2/ 5

1. Meal and rest period requirements may be modified by the 1 terms of a collective bargaining agreement if the collective 2 bargaining agreement entered into by the employees prescribes 3 specific terms concerning meal periods and rest periods. 4 2. Meal and rest period requirements apply to hourly paid 5 and salary-paid employees. Management or employees involved 6 in agricultural jobs are not required to have breaks or meal 7 breaks. For the purposes of this section, agricultural jobs do 8 not include work in the production of seed, limited to removal 9 of off-type plants and corn tassels and hand-pollinating during 10 the months of June, July, and August by persons ages fourteen 11 and older. 12 3. Meal period requirements may be waived if an employer 13 shows that the ordinary nature and circumstance of the work 14 prevented the employer from establishing and maintaining a 15 regularly scheduled meal period. The factors that may be 16 considered regarding the waiver of the requirements are limited 17 to the following: 18 a. The safety and health needs of employees, patients, 19 clients, and the public. 20 b. The lack of other employees available to provide relief 21 to an employee. 22 c. The cost involved in shutdown and startup of machinery in 23 continuous operation of the industrial process. 24 d. The intermittent and unpredictable workflow not 25 controlled by the employer or employee. 26 e. Unforeseeable equipment failures, emergencies, or acts 27 of nature that require immediate and uninterrupted attention 28 by an employee. 29 Sec. 5. NEW SECTION . 91F.3 Civil penalties. 30 1. Any employer who violates the provisions of this chapter 31 or the rules adopted pursuant to this chapter is subject to a 32 civil penalty of not more than one hundred dollars for each 33 violation. The commissioner may recover the civil penalty 34 according to subsections 2 through 5. Any civil penalty 35 -3- HF754.1238 (2) 89 je/rn 3/ 5

recovered shall be deposited in the general fund of the state. 1 2. The commissioner may propose that an employer be assessed 2 a civil penalty by serving the employer with notice of such 3 proposal in the same manner as an original notice is served 4 under the rules of civil procedure. Upon service of such 5 notice, the proposed assessment shall be treated as a contested 6 case under chapter 17A. However, to remain a contested case, 7 an employer must request a hearing within thirty days of being 8 served. 9 3. If an employer does not request a hearing pursuant 10 to subsection 2 or if the commissioner determines, after an 11 appropriate hearing, that an employer is in violation of this 12 chapter or the rules adopted pursuant to this chapter, the 13 commissioner shall assess a civil penalty which is consistent 14 with the provisions of subsection 1 and which is rendered with 15 due consideration for the penalty amount in terms of the size 16 of the employer’s business, the gravity of the violation, 17 the good faith of the employer, and the history of previous 18 violations. 19 4. An employer may seek judicial review of any assessment 20 rendered under subsection 3 by instituting proceedings for 21 judicial review pursuant to chapter 17A. However, such 22 proceedings must be instituted in the district court of the 23 county in which the violation or one of the violations occurred 24 and within thirty days of the day on which the employer was 25 notified that an assessment has been rendered. Also, an 26 employer may be required, at the discretion of the district 27 court and upon instituting such proceedings, to deposit the 28 amount assessed with the clerk of the district court. Any 29 moneys so deposited shall either be returned to the employer 30 or be forwarded to the commissioner for deposit in the general 31 fund of the state, depending on the outcome of the judicial 32 review, including any appeal to the supreme court. 33 5. After the time for seeking judicial review has expired 34 or after all judicial review has been exhausted and the 35 -4- HF754.1238 (2) 89 je/rn 4/ 5

commissioner’s assessment has been upheld, the commissioner 1 shall request the attorney general to recover the assessed 2 penalties in a civil action. 3 Sec. 6. NEW SECTION . 91F.4 Duties and authority of 4 commissioner. 5 1. The commissioner shall provide further exemptions from 6 the provisions in this chapter by rule when reasonable. 7 2. In order to carry out the purposes of this chapter, the 8 commissioner or the commissioner’s designee, upon presenting 9 appropriate credentials to the employer or agent of the 10 employer, may do any of the following: 11 a. Inspect employment records relating to meal and rest 12 periods for employees. 13 b. Interview an employer or employee or an agent of 14 the employer or employee, during working hours or at other 15 reasonable times. 16 3. The commissioner shall adopt rules pursuant to chapter 17 17A to administer this chapter. > 18 2. Title page, by striking lines 1 and 2 and inserting < An 19 Act requiring employers to provide employees with meal periods 20 and rest periods and providing penalties. > 21 ______________________________ HUNTER of Polk -5- HF754.1238 (2) 89 je/rn 5/ 5 #2.