House File 2315 - Introduced



                                       HOUSE FILE       
                                       BY  WHITAKER


    Passed House,  Date               Passed Senate, Date             
    Vote:  Ayes        Nays           Vote:  Ayes        Nays         
                 Approved                            

                                      A BILL FOR

  1 An Act concerning direct deposit of employee pay by employers.
  2 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
  3 TLSB 6290HH 81
  4 ec/je/5

PAG LIN



  1  1    Section 1.  Section 91A.3, subsection 3, Code Supplement
  1  2 2005, is amended to read as follows:
  1  3    3.  The wages paid under subsection 1 shall be sent to the
  1  4 employee by mail or be paid at the employee's normal place of
  1  5 employment during normal employment hours or at a place and
  1  6 hour mutually agreed upon by the employer and employee, or the
  1  7 employee may elect to have the wages sent for direct deposit,
  1  8 on or by the regular payday of the employee, into a financial
  1  9 institution designated by the employee.  An employer shall not
  1 10 require a current employee to participate in direct deposit.
  1 11 The employer may require, as a condition of hire, a new
  1 12 employee to sign up for direct deposit of the employee's wages
  1 13 in a financial institution of the employee's choice unless any
  1 14 of the following conditions exist:
  1 15    a.  The costs to the employee of establishing and
  1 16 maintaining an account for purposes of the direct deposit
  1 17 would effectively reduce the employee's wages to a level below
  1 18 the minimum wage provided under section 91D.1.
  1 19    b.  The employee would incur fees charged to the employee's
  1 20 account as a result of the direct deposit.
  1 21    c.  The provisions of a collective bargaining agreement
  1 22 mutually agreed upon by the employer and the employee
  1 23 organization prohibit the employer from requiring an employee
  1 24 to sign up for direct deposit as a condition of hire.
  1 25                           EXPLANATION
  1 26    This bill eliminates the ability of an employer to require
  1 27 a new employee to sign up for direct deposit of the employee's
  1 28 wages.
  1 29 LSB 6290HH 81
  1 30 ec:nh/je/5