H.F. 216 Section 1. Section 84A.5, subsection 4, Code 2011, is 1 amended to read as follows: 2 4. The division of labor services is responsible for the 3 administration of the laws of this state under chapters 88 , 4 88A , 88B , 89 , 89A , 89B , 90A , 91 , 91A , 91C , 91D , 91E , 91F, 92 , 5 and 94A , and section 85.68 . The executive head of the division 6 is the labor commissioner, appointed pursuant to section 91.2 . 7 Sec. 2. NEW SECTION . 91F.1 Meal and rest periods —— 8 requirements. 9 1. As used in this chapter, unless the context otherwise 10 requires: 11 a. “Employee” means a natural person who is employed in this 12 state for wages by an employer. 13 b. “Employer” means a person, as defined in section 4.1, 14 who in this state employs for wages a natural person. An 15 employer does not include a client, patient, customer, or other 16 person who obtains professional services from a licensed person 17 who provides the services on a fee service basis or as an 18 independent contractor. 19 2. An employer shall provide an employee with appropriate 20 meal periods and appropriate rest periods. 21 a. An appropriate meal period shall be a period of not less 22 than thirty minutes during an employee’s work period in which 23 an employee works at least seven hours. The meal period shall 24 be taken between the second and fifth hours. If an employee 25 works more than seven hours, the meal period shall be taken 26 between the third and sixth hours. 27 b. An appropriate rest period shall be a paid period of 28 not less than ten minutes during every consecutive four-hour 29 period of work taken by an employee approximately in the middle 30 of each four-hour period. The rest period is in addition to a 31 meal period, if applicable, and shall not be added to a meal 32 period or deducted from the work period to reduce the overall 33 length of the total work period. 34 3. An employer is not required to pay for a meal period 35 -1- LSB 1740YH (3) 84 je/rj 1/ 6

H.F. 216 if an employee is free from work duties during the employee’s 1 entire meal period. An employee shall be paid for the meal 2 period if any of the following occur: 3 a. The employee is required or allowed to remain on duty. 4 b. The employee is required to be on-call at the work 5 premises or designated worksite to be available to return to 6 duty even if the employee is not called back to duty. 7 c. The employee is called back to duty during the employee’s 8 meal period even though the employee is not usually on-call 9 during the meal period. 10 Sec. 3. NEW SECTION . 91F.2 Meal and rest periods —— 11 exemptions. 12 1. Meal and rest period requirements may be modified by the 13 terms of a collective bargaining agreement if the collective 14 bargaining agreement entered into by the employees prescribes 15 specific terms concerning meal periods and rest periods. 16 2. Meal and rest period requirements apply to hourly paid 17 and salary-paid employees. Management or employees involved 18 in agricultural jobs are not required to have breaks or meal 19 breaks. For the purposes of this section, agricultural jobs do 20 not include work in the production of seed, limited to removal 21 of off-type plants and corn tassels and hand-pollinating during 22 the months of June, July, and August by persons ages fourteen 23 and older. 24 3. Meal period requirements may be waived when an employer 25 can show that the ordinary nature and circumstance of the work 26 prevented the employer from establishing and maintaining a 27 regularly scheduled meal period. The circumstances in which 28 the requirements may be waived are limited to the following: 29 a. The safety and health needs of employees, patients, 30 clients, and the public. 31 b. The lack of other employees available to provide relief 32 to an employee. 33 c. The cost involved in shutdown and startup of machinery in 34 continuous operation of the industrial process. 35 -2- LSB 1740YH (3) 84 je/rj 2/ 6

H.F. 216 d. The intermittent and unpredictable workflow not 1 controlled by the employer or employee. 2 e. Unforeseeable equipment failures, emergencies, or acts 3 of nature that require immediate and uninterrupted attention 4 by an employee. 5 Sec. 4. NEW SECTION . 91F.3 Civil penalties. 6 1. Any employer who violates the provisions of this chapter 7 or the rules adopted pursuant to this chapter is subject to a 8 civil penalty of not more than one hundred dollars for each 9 violation. The commissioner may recover the civil penalty 10 according to subsections 2 through 5. Any civil penalty 11 recovered shall be deposited in the general fund of the state. 12 2. The commissioner may propose that an employer be assessed 13 a civil penalty by serving the employer with notice of such 14 proposal in the same manner as an original notice is served 15 under the rules of civil procedure. Upon service of such 16 notice, the proposed assessment shall be treated as a contested 17 case under chapter 17A. However, an employer must request a 18 hearing within thirty days of being served. 19 3. If an employer does not request a hearing pursuant 20 to subsection 2 or if the commissioner determines, after an 21 appropriate hearing, that an employer is in violation of this 22 chapter or the rules adopted pursuant to this chapter, the 23 commissioner shall assess a civil penalty which is consistent 24 with the provisions of subsection 1 and which is rendered with 25 due consideration for the penalty amount in terms of the size 26 of the employer’s business, the gravity of the violation, 27 the good faith of the employer, and the history of previous 28 violations. 29 4. An employer may seek judicial review of any assessment 30 rendered under subsection 3 by instituting proceedings for 31 judicial review pursuant to chapter 17A. However, such 32 proceedings must be instituted in the district court of the 33 county in which the violation or one of the violations occurred 34 and within thirty days of the day on which the employer was 35 -3- LSB 1740YH (3) 84 je/rj 3/ 6

H.F. 216 notified that an assessment has been rendered. Also, an 1 employer may be required, at the discretion of the district 2 court and upon instituting such proceedings, to deposit the 3 amount assessed with the clerk of the district court. Any 4 moneys so deposited shall either be returned to the employer 5 or be forwarded to the commissioner for deposit in the general 6 fund of the state, depending on the outcome of the judicial 7 review, including any appeal to the supreme court. 8 5. After the time for seeking judicial review has expired 9 or after all judicial review has been exhausted and the 10 commissioner’s assessment has been upheld, the commissioner 11 shall request the attorney general to recover the assessed 12 penalties in a civil action. 13 Sec. 5. NEW SECTION . 91F.4 Duties and authority of 14 commissioner. 15 1. The labor commissioner shall adopt rules to administer 16 and enforce this chapter and shall provide further exemptions 17 from the provisions in this chapter when reasonable. 18 2. In order to carry out the purposes of this chapter, 19 the labor commissioner or the commissioner’s designee, upon 20 presenting appropriate credentials to the employer or agent of 21 the employer, may do any of the following: 22 a. Inspect employment records relating to meal and rest 23 periods for employees. 24 b. Interview an employer or employee or an agent of 25 the employer or employee, during working hours or at other 26 reasonable times. 27 EXPLANATION 28 This bill creates a new Code chapter 91F that requires an 29 employer to provide an employee with appropriate meal periods 30 and appropriate rest periods. 31 The bill states that an appropriate meal period shall be not 32 less than 30 minutes during an employee’s work period of at 33 least seven hours. The meal period is to be taken between the 34 second and fifth hours of the work or, if the employee works 35 -4- LSB 1740YH (3) 84 je/rj 4/ 6

H.F. 216 more than seven hours, between the third and sixth hours. 1 The bill states that an appropriate rest period shall be a 2 paid period of not less than 10 minutes during every four-hour 3 work period. The rest period is taken in the middle of the work 4 period. The rest period is in addition to the meal period and 5 cannot be added to the meal period or deducted from the work 6 period to reduce the overall length of the total work period. 7 The bill defines an “employee” as a natural person who is 8 employed in this state for wages by an employer. An “employer” 9 is defined as a person, as defined in Code section 4.1, who 10 employs a natural person for wages. 11 The bill provides that an employer is not required to pay for 12 a meal period if an employee is free from work duties during 13 the employee’s entire meal period. 14 The bill allows three exemptions to the meal and rest period 15 requirements. The first exemption is if the meal and rest 16 period requirements are modified by the terms of a collective 17 bargaining agreement. However, the exemption is valid only 18 if the collective bargaining agreement entered into by the 19 employees prescribes specific terms concerning meal periods and 20 rest periods. 21 The second exemption states that meal and rest period 22 requirements apply to hourly paid and salary-paid employees. 23 However, management or employees involved in certain 24 agricultural jobs are not required to have breaks or meal 25 breaks. 26 The third exemption is when an employer can show that the 27 ordinary nature and circumstance of the work prevented the 28 employer from establishing and maintaining a regular scheduled 29 meal period. 30 The bill provides civil penalties for violating the new 31 Code chapter. An employer who violates the provisions shall 32 be subject to a penalty of up to $100 for each violation. The 33 labor commissioner may recover the penalties under Code chapter 34 17A contested case procedures. Any penalties recovered shall 35 -5- LSB 1740YH (3) 84 je/rj 5/ 6

H.F. 216 be deposited in the general fund of the state. 1 The commissioner may propose that an employer be assessed a 2 penalty by serving the employer with notice of a penalty in the 3 same manner as an original notice is served under the rules of 4 civil procedure. 5 The bill provides the labor commissioner with the authority 6 to adopt rules to administer and enforce the chapter to 7 provide further exemptions from the provisions when reasonable. 8 Also, the labor commissioner or the commissioner’s designee 9 may inspect employment records relating to rest periods for 10 employees and interview an employer or employee or an agent 11 of the employer or employee, during working hours or at other 12 reasonable times. 13 -6- LSB 1740YH (3) 84 je/rj 6/ 6