House File 2463 - Introduced



                                       HOUSE FILE       
                                       BY  COMMITTEE ON LABOR

                                       (SUCCESSOR TO HSB 603)


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

                                      A BILL FOR

  1 An Act relating to the payment of wages.
  2 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
  3 TLSB 5438HV 82
  4 ak/nh/8

PAG LIN



  1  1    Section 1.  Section 91A.3, subsection 3, paragraph a,
  1  2 unnumbered paragraph 1, Code Supplement 2007, is amended to
  1  3 read as follows:
  1  4    The wages paid under subsection 1 shall be sent to the
  1  5 employee by mail or be paid at the employee's normal place of
  1  6 employment during normal employment hours or at a place and
  1  7 hour mutually agreed upon by the employer and employee, or the
  1  8 employee may elect to have the wages sent for direct deposit,
  1  9 on or by the regular payday of the employee, into a financial
  1 10 institution designated by the employee.  Upon written request
  1 11 by the employee, wages due may be sent to the employee by
  1 12 mail.  The employer shall maintain a copy of the request for
  1 13 as long as it is effective and for at least two years
  1 14 thereafter.  An employee hired on or after July 1, 2005, may
  1 15 be required, as a condition of employment, to participate in
  1 16 direct deposit of the employee's wages in a financial
  1 17 institution of the employee's choice unless any of the
  1 18 following conditions exist:
  1 19    Sec. 2.  Section 91A.3, subsection 3, paragraph b, Code
  1 20 Supplement 2007, is amended to read as follows:
  1 21    b.  If the employer fails to send pay an employee's wages
  1 22 for direct deposit on or by the regular payday in accordance
  1 23 with this subsection, the employer is liable for the amount of
  1 24 any overdraft charge if the overdraft is created on the
  1 25 employee's account because of the employer's failure to send
  1 26 pay the wages on or by the regular payday.  The overdraft
  1 27 charges may be the basis for a claim under section 91A.10 and
  1 28 for damages under section 91A.8.
  1 29                           EXPLANATION
  1 30    This bill expands the circumstances under which an
  1 31 employee's overdraft charges that were caused by an employer's
  1 32 failure to pay wages timely would be the basis for a wage
  1 33 claim under Code chapter 91A to all failures to timely pay
  1 34 wages rather than only failures to send wages for direct
  1 35 deposit.
  2  1    The bill also provides that upon written request an
  2  2 employee may receive wages by mail.  An employer must keep the
  2  3 request for as long as it is effective and for at least two
  2  4 years after.
  2  5 LSB 5438HV 82
  2  6 ak/nh/8