House File 2002 - Introduced HOUSE FILE BY R. OLSON Passed House, Date Passed Senate, Date Vote: Ayes Nays Vote: Ayes Nays Approved A BILL FOR 1 An Act relating to exemptions to state minimum wage requirements. 2 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 3 TLSB 5121YH 82 4 kh/rj/8 PAG LIN 1 1 Section 1. Section 91D.1, subsection 2, Code Supplement 1 2 2007, is amended to read as follows: 1 3 2. a. The exemptions from the minimum wage requirements 1 4 stated in 29 U.S.C. } 213, as amended to January 1, 2007, 1 5 shall apply, exceptthat the exemption in 29 U.S.C. } 1 6 213(a)(2) shall only apply to an enterprise which is comprised 1 7 of one or more retail or service establishments whose annual 1 8 gross volume of sales made or business done is less than sixty 1 9 percent of the amount stated in 29 U.S.C. } 203(s)(2), 1 10 exclusive of excise taxes at the retail level that are 1 11 separately statedas otherwise provided in this subsection. 1 12 b. Except as provided in paragraph "c", the minimum wage 1 13 requirements set forth in this section shall not apply to an 1 14 enterprise whose annual gross volume of sales made or business 1 15 done, exclusive of excise taxes at the retail level which are 1 16 separately stated, is less than three hundred thousand 1 17 dollars. 1 18 c. The minimum wage requirements set forth in this section 1 19 shall apply to the following without regard to gross volume of 1 20 sales or business done: 1 21 (1) An enterprise engaged in the business of laundering, 1 22 cleaning, or repairing clothing or fabrics. 1 23 (2) An enterprise engaged in construction or 1 24 reconstruction. 1 25 (3) An enterprise engaged in the operation of a hospital; 1 26 an institution primarily engaged in the care of the sick, the 1 27 aged, or the mentally ill or persons who have symptoms of 1 28 mental illness who reside on the premises of such institution; 1 29 a school for persons with mental or physical disabilities or 1 30 for gifted children; a preschool, elementary or secondary 1 31 school, or an institution of higher education. This 1 32 subparagraph applies regardless of whether any such described 1 33 hospital, institution, or school is public or private or 1 34 operated for profit or not for profit. 1 35 (4) A public agency. 2 1 EXPLANATION 2 2 This bill replaces minimum wage requirement exemptions in 2 3 the Code which are tied to the federal Fair Labor Standards 2 4 Act. 2 5 Currently, the Code adopts by reference exemptions to the 2 6 federal Fair Labor Standards Act which were in place when 2 7 Iowa's minimum wage law was enacted in 1989, but which were 2 8 repealed from the United States Code on November 17, 1989. 2 9 The federal provision allowed a retail or service 2 10 establishment to pay employees engaged in certain services 2 11 less than the federal minimum wage if more than 50 percent of 2 12 the establishment's annual dollar volume of sales of goods or 2 13 services is made in the state in which the establishment is 2 14 located and 75 percent of whose annual dollar volume of sales 2 15 of goods or services is not for resale. 2 16 The bill provides that the state's minimum wage 2 17 requirements do not apply to an enterprise whose annual gross 2 18 volume of sales or business done, exclusive of excise taxes at 2 19 the retail level which are separately stated, is less than 2 20 $300,000, unless the enterprise is engaged in the business of 2 21 laundering, cleaning, or repairing clothing or fabrics; is 2 22 engaged in construction or reconstruction; is engaged in the 2 23 operation of hospitals, facilities serving the elderly or 2 24 persons with mental or physical illnesses or disabilities, or 2 25 educational institutions; or is a public agency. 2 26 LSB 5121YH 82 2 27 kh/rj/8