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, except that 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 stated as 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