House File 1 



                                 HOUSE FILE       
                                 BY  McCARTHY, ABDUL-SAMAD, BAILEY,
                                     BELL, BERRY, BUKTA, COHOON,
                                     DANDEKAR, DAVITT, FOEGE, FORD,
                                     FREVERT, GASKILL, GAYMAN, HEDDENS,
                                     HUNTER, HUSER, JACOBY, JOCHUM,
                                     KELLEY, KRESSIG, KUHN, LENSING,
                                     LYKAM, MASCHER, MERTZ, H. MILLER,
                                     MURPHY, OLDSON, D. OLSON, R. OLSON,
                                     T. OLSON, PALMER, PETERSEN,
                                     PETTENGILL, QUIRK, REASONER,
                                     REICHERT, SCHUELLER, SHOMSHOR, SMITH,
                                     STAED, SWAIM, D. TAYLOR,
                                     T. TAYLOR, THOMAS, WENDT, WENTHE,
                                     WESSEL-KROESCHELL, WHITAKER,
                                     WHITEAD, WINCKLER, WISE, and
                                     ZIRKELBACH


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

                                      A BILL FOR

  1 An Act relating to the state minimum hourly wage requirements and
  2    providing an effective date.
  3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
  4 TLSB 1189HH 82
  5 kh/gg/14

PAG LIN



  1  1    Section 1.  Section 91D.1, subsection 1, paragraphs a, b,
  1  2 and d, Code 2007, are amended to read as follows:
  1  3    a.  The state hourly wage stated in the federal minimum
  1  4 wage law, pursuant to 29 U.S.C. } 206, shall be increased to
  1  5 $3.85 on January 1 of 1990, $4.25 on January 1 of 1991, and
  1  6 $4.65 on January 1 of 1992 at least $6.20 as of April 1, 2007,
  1  7 and $7.25 as of January 1, 2008.
  1  8    b.  Every employer, as defined in the federal Fair Labor
  1  9 Standards Act of 1938, as amended to January 1, 2007, shall
  1 10 pay to each of the employer's employees, as defined in the
  1 11 federal Fair Labor Standards Act of 1938, as amended to
  1 12 January 1, 2007, wages of not less than the state hourly wage
  1 13 stated in paragraph "a", or the current federal minimum wage,
  1 14 pursuant to 29 U.S.C. } 206, or the wage rate stated in
  1 15 paragraph "a" as amended, whichever is greater.
  1 16    d.  An employer is not required to pay an employee the
  1 17 applicable minimum state hourly wage provided in paragraph "a"
  1 18 until the employee has completed ninety calendar days of
  1 19 employment with the employer.  An employee who has completed
  1 20 ninety calendar days of employment with the employer prior to
  1 21 January April 1 of 1990, 1991, or 1992, 2007, or January 1,
  1 22 2008, shall earn the applicable state hourly minimum wage as
  1 23 of that date.  An employer shall pay an employee who has not
  1 24 completed ninety calendar days of employment with the employer
  1 25 an hourly wage of at least $3.35 as of January 1 of 1990,
  1 26 $3.85 as of January 1 of 1991, and $4.25 as of January 1 of
  1 27 1992 $5.30 as of April 1, 2007, and $6.35 as of January 1,
  1 28 2008.
  1 29    Sec. 2.  LABOR COMMISSIONER DIRECTIVE.  If the commissioner
  1 30 finds that an employer, as defined in the federal Fair Labor
  1 31 Standards Act of 1938, as amended to January 1, 2007, has
  1 32 failed to comply with the provisions of this Act prior to July
  1 33 1, 2007, the commissioner shall enforce the provisions of this
  1 34 Act pursuant to chapter 91A, but shall not impose liquidated
  1 35 damages.
  2  1    Sec. 3.  EFFECTIVE DATE.  This Act, being deemed of
  2  2 immediate importance, takes effect upon enactment.
  2  3                           EXPLANATION
  2  4    This bill raises the state's hourly minimum wage to $6.20
  2  5 beginning April 1, 2007, and to $7.25 beginning January 1,
  2  6 2008.  The state hourly minimum wage for employees serving a
  2  7 90=day training period is raised to $5.30 on April 1, 2007,
  2  8 and to $6.35 on January 1, 2008.  The bill also directs the
  2  9 labor commissioner to enforce the provisions of the bill
  2 10 against employers discovered to be in noncompliance with these
  2 11 changes, but prohibits the imposition of liquidated damages
  2 12 for noncompliance prior to July 1, 2007.
  2 13    With the addition of the words "as amended to January 1,
  2 14 2007", following citations to the federal Fair Labor Standards
  2 15 Act of 1938, state minimum wage law will conform to federal
  2 16 law in terms of its applicability to employers and employees
  2 17 as of that date.
  2 18    The federal minimum wage laws have primacy over state
  2 19 minimum wage laws unless the state sets a higher minimum wage.
  2 20 The federal hourly minimum wage, which took effect September
  2 21 1, 1997, is $5.15.  The federal subminimum, or youth, wage for
  2 22 employees under 20 years of age during their first 90
  2 23 consecutive calendar days of employment with an employer is
  2 24 $4.25 an hour.
  2 25    The bill takes effect upon enactment.
  2 26 LSB 1189HH 82
  2 27 kh:rj/gg/14.2