House File 692 - Introduced HOUSE FILE BY HUNTER Passed House, Date Passed Senate, Date Vote: Ayes Nays Vote: Ayes Nays Approved A BILL FOR 1 An Act requiring employers to provide employees with meal periods 2 and rest periods and providing penalties. 3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 4 TLSB 2519YH 82 5 ak/je/5 PAG LIN 1 1 Section 1. Section 84A.5, subsection 3, Code 2007, is 1 2 amended to read as follows: 1 3 3. The division of labor services is responsible for the 1 4 administration of the laws of this state under chapters 88, 1 5 88A, 88B, 89, 89A, 89B, 90A, 91, 91A, 91C, 91D, 91E, 91F, 92, 1 6 and 94A, and sections 30.7 and 85.68. The executive head of 1 7 the division is the labor commissioner, appointed pursuant to 1 8 section 91.2. 1 9 Sec. 2. NEW SECTION. 91F.1 MEAL AND REST PERIODS == 1 10 REQUIREMENTS. 1 11 1. DEFINITIONS: 1 12 a. "Employee" means a natural person who is employed in 1 13 this state for wages by an employer. 1 14 b. "Employer" means a person, as defined in section 4.1, 1 15 who in this state employs for wages a natural person. An 1 16 employer does not include a client, patient, customer, or 1 17 other person who obtains professional services from a licensed 1 18 person who provides the services on a fee service basis or as 1 19 an independent contractor. 1 20 2. An employer shall provide an employee with appropriate 1 21 meal periods and appropriate rest periods. 1 22 a. An appropriate meal period shall be a period of not 1 23 less than thirty minutes during an employee's work period in 1 24 which an employee works at least seven hours. The meal period 1 25 shall be taken between the second and fifth hours. If an 1 26 employee works more than seven hours, the meal period shall be 1 27 taken between the third and sixth hours. 1 28 b. An appropriate rest period shall be a paid period of 1 29 not less than ten minutes during every consecutive four=hour 1 30 period of work and is taken by an employee approximately in 1 31 the middle of each four=hour period. The rest period is in 1 32 addition to a meal period, if applicable, and shall not be 1 33 added to a meal period or deducted from the work period to 1 34 reduce the overall length of the total work period. 1 35 3. An employer is not required to pay for a meal period if 2 1 an employee is free from work duties during the employee's 2 2 entire meal period. An employee shall be paid for the meal 2 3 period if any of the following occur: 2 4 a. The employee is required or allowed to remain on duty. 2 5 b. The employee is required to be on=call at the work 2 6 premises or designated worksite to be available to return to 2 7 duty even if the employee is not called back to duty. 2 8 c. The employee is called back to duty during the 2 9 employee's meal period even though the employee is not usually 2 10 on=call during the meal period. 2 11 Sec. 3. NEW SECTION. 91F.2 MEAL AND REST PERIODS == 2 12 EXEMPTIONS. 2 13 1. Meal and rest period requirements may be modified by 2 14 the terms of a collective bargaining agreement if the 2 15 collective bargaining agreement entered into by the employees 2 16 prescribes specific terms concerning meal periods and rest 2 17 periods. 2 18 2. Meal and rest period requirements apply only to hourly 2 19 paid employees. Management or salary=paid employees or 2 20 employees involved in agricultural jobs are not required to 2 21 have breaks or meal breaks. For the purposes of this section, 2 22 agricultural jobs do not include work in the production of 2 23 seed, limited to removal of off=type plants, corn tassels and 2 24 hand=pollinating during the months of June, July, and August 2 25 by persons ages fourteen and older. 2 26 3. Meal period requirements may be waived when an employer 2 27 can show that the ordinary nature and circumstance of the work 2 28 prevented the employer from establishing and maintaining a 2 29 regularly scheduled meal period. The circumstances in which 2 30 the requirements may be waived are limited to the following: 2 31 a. The safety and health of employees, patients, clients, 2 32 and the public. 2 33 b. The lack of other employees available to provide relief 2 34 to an employee. 2 35 c. The cost involved in shutdown and startup of machinery 3 1 in continuous operation of the industrial process. 3 2 d. The intermittent and unpredictable workflow not 3 3 controlled by the employer or employee. 3 4 e. Unforeseeable equipment failures, emergencies, or acts 3 5 of nature that require immediate and uninterrupted attention 3 6 by an employee. 3 7 Sec. 4. NEW SECTION. 91F.3 CIVIL PENALTIES. 3 8 1. Any employer who violates the provisions of this 3 9 chapter or the rules adopted pursuant to this chapter is 3 10 subject to a civil money penalty of not more than one hundred 3 11 dollars for each violation. The commissioner may recover the 3 12 civil penalty according to subsections 2 through 5. Any civil 3 13 penalty recovered shall be deposited in the general fund of 3 14 the state. 3 15 2. The commissioner may propose that an employer be 3 16 assessed a civil penalty by serving the employer with notice 3 17 of such proposal in the same manner as an original notice is 3 18 served under the rules of civil procedure. Upon service of 3 19 such notice, the proposed assessment shall be treated as a 3 20 contested case under chapter 17A. However, an employer must 3 21 request a hearing within thirty days of being served. 3 22 3. If an employer does not request a hearing pursuant to 3 23 subsection 2 or if the commissioner determines, after an 3 24 appropriate hearing, that an employer is in violation of this 3 25 chapter or the rules adopted pursuant to this chapter, the 3 26 commissioner shall assess a civil penalty which is consistent 3 27 with the provisions of subsection 1 and which is rendered with 3 28 due consideration for the penalty amount in terms of the size 3 29 of the employer's business, the gravity of the violation, the 3 30 good faith of the employer, and the history of previous 3 31 violations. 3 32 4. An employer may seek judicial review of any assessment 3 33 rendered under subsection 3 by instituting proceedings for 3 34 judicial review pursuant to chapter 17A. However, such 3 35 proceedings must be instituted in the district court of the 4 1 county in which the violation or one of the violations 4 2 occurred and within thirty days of the day on which the 4 3 employer was notified that an assessment has been rendered. 4 4 Also, an employer may be required, at the discretion of the 4 5 district court and upon instituting such proceedings, to 4 6 deposit the amount assessed with the clerk of the district 4 7 court. Any moneys so deposited shall either be returned to 4 8 the employer or be forwarded to the commissioner for deposit 4 9 in the general fund of the state, depending on the outcome of 4 10 the judicial review, including any appeal to the supreme 4 11 court. 4 12 5. After the time for seeking judicial review has expired 4 13 or after all judicial review has been exhausted and the 4 14 commissioner's assessment has been upheld, the commissioner 4 15 shall request the attorney general to recover the assessed 4 16 penalties in a civil action. 4 17 Sec. 5. NEW SECTION. 91F.4 DUTIES AND AUTHORITY OF 4 18 COMMISSIONER. 4 19 1. The labor commissioner shall adopt rules to administer 4 20 and enforce this chapter and shall provide further exemptions 4 21 from the provisions in this chapter when reasonable. 4 22 2. In order to carry out the purposes of this chapter, the 4 23 labor commissioner or the commissioner's designee, upon 4 24 presenting appropriate credentials to the employer or agent of 4 25 the employer, may do any of the following: 4 26 a. Inspect employment records relating to meal and rest 4 27 periods for employees. 4 28 b. Interview an employer or an agent of the employer or 4 29 employee, during working hours or at other reasonable times. 4 30 EXPLANATION 4 31 This bill creates a new Code chapter 91F that requires an 4 32 employer to provide an employee with appropriate meal periods 4 33 and appropriate rest periods. 4 34 The bill states that an appropriate meal period shall be 4 35 not less than 30 minutes during an employee's work period of 5 1 at least seven hours. The meal period is taken between the 5 2 second and fifth hours of the work or, if the employee works 5 3 more than seven hours, between the third and sixth hours. 5 4 The bill states that an appropriate rest period shall be a 5 5 paid period of not less than 10 minutes during every four=hour 5 6 work period. The rest period is taken in the middle of the 5 7 work period. The rest period is in addition to the meal 5 8 period and cannot be added to the meal period or deducted from 5 9 the work period to reduce the overall length of the total work 5 10 period. 5 11 The bill defines an "employee" as a natural person who is 5 12 employed in this state for wages by an employer. An 5 13 "employer" is defined as a person, as defined in Code section 5 14 4.1, who employs a natural person for wages. 5 15 The bill provides that an employer is not required to pay 5 16 for a meal period if an employee is free from work duties 5 17 during the employee's entire meal period. 5 18 The bill allows three exemptions to the meal and rest 5 19 period requirements. The first exemption is if the meal and 5 20 rest period requirements are modified by the terms of a 5 21 collective bargaining agreement. However, the exemption is 5 22 valid only if the collective bargaining agreement entered into 5 23 by the employees prescribes specific terms concerning meal 5 24 periods and rest periods. 5 25 The second exemption states that meal and rest period 5 26 requirements apply only to hourly paid employees. Management 5 27 or salary=paid employees or employees involved in agricultural 5 28 jobs are not required to have breaks or meal breaks. 5 29 The third exemption is when an employer can show that the 5 30 ordinary nature and circumstance of the work prevented the 5 31 employer from establishing and maintaining a regular scheduled 5 32 meal period. 5 33 The bill provides civil penalties for violating the new 5 34 Code chapter. An employer who violates the provisions shall 5 35 be subject to a penalty of up to $100 for each violation. The 6 1 labor commissioner may recover the penalties under Code 6 2 chapter 17A contested case procedures. Any penalties 6 3 recovered shall be deposited in the general fund of the state. 6 4 The commissioner may propose that an employer be assessed a 6 5 penalty by serving the employer with notice of a penalty in 6 6 the same manner as an original notice is served under the 6 7 rules of civil procedure. 6 8 The bill provides the labor commissioner with the authority 6 9 to adopt rules to administer and enforce the chapter to 6 10 provide further exemptions from the provisions when 6 11 reasonable. Also, the labor commissioner or the 6 12 commissioner's designee may inspect employment records 6 13 relating to rest periods for employees and interview an 6 14 employer or an agent of the employer or employee, during 6 15 working hours or at other reasonable times. 6 16 LSB 2519YH 82 6 17 ak:rj/je/5