Senate
File
116
-
Introduced
SENATE
FILE
116
BY
DOTZLER
,
BOLKCOM
,
DANIELSON
,
DVORSKY
,
RIELLY
,
SENG
,
HANCOCK
,
SCHOENJAHN
,
HORN
,
DEARDEN
,
FRAISE
,
GRONSTAL
,
DANDEKAR
,
KIBBIE
,
QUIRMBACH
,
McCOY
,
RAGAN
,
WILHELM
,
JOCHUM
,
BOWMAN
,
and
HATCH
A
BILL
FOR
An
Act
relating
to
wage
payment
collection
issues
arising
1
between
employers
and
individuals
who
provide
services
to
2
employers,
providing
penalties
and
remedies,
and
including
3
effective
date
provisions.
4
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
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Section
1.
Section
91A.2,
subsection
6,
Code
2011,
is
1
amended
to
read
as
follows:
2
6.
“Liquidated
damages”
means
the
sum
of
five
percent
3
multiplied
by
the
amount
of
any
wages
that
were
not
paid
or
of
4
any
authorized
expenses
that
were
not
reimbursed
on
a
regular
5
payday
or
on
another
day
pursuant
to
section
91A.3
multiplied
6
by
the
total
number
of
days,
excluding
Sundays,
legal
holidays,
7
and
the
first
seven
days
after
the
regular
payday
on
which
8
wages
were
not
paid
or
expenses
were
not
reimbursed.
However,
9
such
sum
shall
not
exceed
twice
the
amount
of
the
unpaid
wages
10
and
shall
not
accumulate
when
an
employer
is
subject
to
a
11
petition
filed
in
bankruptcy
.
12
Sec.
2.
Section
91A.5,
subsection
1,
unnumbered
paragraph
13
1,
Code
2011,
is
amended
to
read
as
follows:
14
An
employer
shall
have
the
burden
to
establish
that
a
15
deduction
from
employee
wages
is
lawful.
An
employer
shall
not
16
withhold
or
divert
any
portion
of
an
employee’s
wages
unless:
17
Sec.
3.
Section
91A.5,
subsection
1,
paragraph
b,
Code
2011,
18
is
amended
to
read
as
follows:
19
b.
The
employer
has
obtains
advance
written
authorization
20
from
the
employee
to
so
deduct
for
any
lawful
purpose
accruing
21
to
the
benefit
of
the
employee.
22
Sec.
4.
Section
91A.6,
subsection
1,
Code
2011,
is
amended
23
to
read
as
follows:
24
1.
An
employer
shall
after
being
notified
by
the
25
commissioner
pursuant
to
subsection
2
do
the
following
:
26
a.
Notify
its
employees
in
writing
at
the
time
of
hiring
27
what
wages
and
regular
paydays
are
designated
by
the
employer.
28
b.
Notify
its
employees
in
writing
whose
wages
are
29
determined
based
on
a
task,
piece,
mile,
or
load
basis
about
30
the
method
used
to
calculate
wages
and
when
the
wages
are
31
earned
by
the
employees.
32
b.
c.
Notify,
at
least
one
pay
period
prior
to
the
33
initiation
of
any
changes,
its
employees
of
any
changes
in
34
the
arrangements
specified
in
this
subsection
1
that
reduce
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wages
or
alter
the
regular
paydays.
The
notice
shall
either
1
be
in
writing
or
posted
at
a
place
where
employee
notices
are
2
routinely
posted.
3
c.
d.
Make
available
to
its
employees
upon
written
request,
4
a
written
statement
enumerating
employment
agreements
and
5
policies
with
regard
to
vacation
pay,
sick
leave,
reimbursement
6
for
expenses,
retirement
benefits,
severance
pay,
or
other
7
comparable
matters
with
respect
to
wages.
Notice
of
such
8
availability
shall
be
given
to
each
employee
in
writing
or
by
a
9
notice
posted
at
a
place
where
employee
notices
are
routinely
10
posted.
11
d.
e.
Establish,
maintain,
and
preserve
for
three
12
calendar
years
the
payroll
records
showing
the
hours
worked,
13
wages
earned,
and
deductions
made
for
each
employee
and
14
any
employment
agreements
entered
into
between
an
employer
15
and
employee.
Failure
to
do
so
shall
raise
a
rebuttable
16
presumption
that
the
employer
did
not
pay
the
required
minimum
17
wage
under
section
91D.1.
18
Sec.
5.
Section
91A.6,
subsection
2,
Code
2011,
is
amended
19
by
striking
the
subsection.
20
Sec.
6.
Section
91A.6,
subsection
4,
Code
2011,
is
amended
21
by
striking
the
subsection
and
inserting
in
lieu
thereof
the
22
following:
23
4.
a.
On
each
regular
payday,
the
employer
shall
send
to
24
each
employee
by
mail
or
shall
provide
at
the
employee’s
normal
25
place
of
employment
during
normal
employment
hours
a
statement
26
showing
the
wages
earned
by
the
employee,
the
deductions
made
27
for
the
employee,
and
the
following
information,
as
applicable:
28
(1)
For
each
employee
paid
in
whole
or
in
part
on
an
hourly
29
basis,
the
statement
shall
show
the
hours
the
employee
worked.
30
(2)
For
each
employee
paid
based
on
a
percentage
of
sales
or
31
based
on
a
percentage
of
revenue
generated
for
the
employer,
32
the
statement
shall
include
a
list
of
the
amount
of
each
sale
33
or
the
amount
of
revenue
during
the
pay
period.
34
(3)
For
each
employee
whose
pay
is
based
on
the
number
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of
miles
or
loads
performed,
the
statement
shall
include
the
1
applicable
number
performed
during
the
pay
period.
2
b.
An
employer
who
provides
each
employee
access
to
view
an
3
electronic
statement
of
the
employee’s
earnings
and
provides
4
the
employee
free
and
unrestricted
access
to
a
printer
to
print
5
the
employee’s
statement
of
earnings,
if
the
employee
chooses,
6
is
in
compliance
with
this
subsection.
7
Sec.
7.
Section
91A.8,
Code
2011,
is
amended
to
read
as
8
follows:
9
91A.8
Damages
recoverable
by
an
employee.
10
When
it
has
been
shown
that
an
employer
has
intentionally
11
failed
to
pay
an
employee
wages
or
reimburse
expenses
pursuant
12
to
section
91A.3
,
whether
as
the
result
of
a
wage
dispute
or
13
otherwise,
the
employer
shall
be
liable
to
the
employee
for
any
14
the
unpaid
wages
or
expenses
that
are
so
intentionally
failed
15
to
be
paid
or
reimbursed
,
plus
liquidated
damages,
court
costs
,
16
and
any
attorney’s
attorney
fees
incurred
in
recovering
the
17
unpaid
wages
and
determined
to
have
been
usual
and
necessary.
18
In
other
instances
the
employer
shall
be
liable
only
for
19
unpaid
wages
or
expenses,
court
costs
and
usual
and
necessary
20
attorney’s
fees
incurred
in
recovering
the
unpaid
wages
or
21
expenses.
22
Sec.
8.
Section
91A.10,
subsection
5,
Code
2011,
is
amended
23
to
read
as
follows:
24
5.
An
employer
shall
not
discharge
or
in
any
other
manner
25
discriminate
against
any
employee
because
the
employee
has
26
filed
a
complaint,
assigned
a
claim,
or
brought
an
action
under
27
this
section
or
has
cooperated
in
bringing
any
action
against
28
an
employer.
29
5.
a.
An
employer
or
other
person
shall
not
discharge
or
30
in
any
other
manner
discriminate
or
retaliate
against
any
of
31
the
following:
32
(1)
An
employee
or
other
person
for
exercising
any
right
33
provided
under
this
chapter
or
any
rules
adopted
pursuant
to
34
this
chapter.
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(2)
Another
employee
or
person
for
providing
assistance
to
1
an
employee
or
providing
information
regarding
the
employee
or
2
person.
3
(3)
Another
employee
or
person
for
testifying
or
planning
4
to
testify
in
any
investigation
or
proceeding
regarding
the
5
employee
or
person.
6
b.
Taking
adverse
action
against
an
employee
or
other
person
7
within
ninety
days
of
an
employee’s
or
other
person’s
engaging
8
in
any
of
the
activities
in
paragraph
“a”
raises
a
presumption
9
that
such
action
was
retaliation,
which
may
be
rebutted
by
10
evidence
that
such
action
was
taken
for
other
permissible
11
reasons.
12
c.
Any
employee
may
file
a
complaint
with
the
commissioner
13
alleging
discharge
,
or
discrimination
,
or
retaliation
within
14
thirty
days
after
such
violation
occurs.
Upon
receipt
of
the
15
complaint,
the
commissioner
shall
cause
an
investigation
to
be
16
made
to
the
extent
deemed
appropriate.
If
the
commissioner
17
determines
from
the
investigation
that
the
provisions
of
this
18
subsection
have
been
violated,
the
commissioner
shall
bring
19
an
action
in
the
appropriate
district
court
against
such
20
person.
The
district
court
shall
have
jurisdiction,
for
cause
21
shown,
to
restrain
violations
of
this
subsection
and
order
all
22
appropriate
relief
including
rehiring
or
reinstatement
of
the
23
employee
to
the
former
position
with
back
pay.
24
Sec.
9.
Section
91A.10,
Code
2011,
is
amended
by
adding
the
25
following
new
subsection:
26
NEW
SUBSECTION
.
6.
A
civil
action
to
enforce
subsection
5
27
may
also
be
maintained
in
any
court
of
competent
jurisdiction
28
by
the
commissioner
or
by
any
party
injured
by
a
violation
29
of
subsection
5.
An
employer
or
other
person
who
retaliates
30
against
an
employee
or
other
person
in
violation
of
subsection
31
5
shall
be
required
to
pay
the
employee
or
other
person
32
an
amount
set
by
the
commissioner
or
a
court
sufficient
to
33
compensate
the
employee
or
other
person
and
to
deter
future
34
violations,
but
not
less
than
one
hundred
fifty
dollars
for
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each
day
that
the
violation
occurred.
1
Sec.
10.
NEW
SECTION
.
91A.15
Commissions
earned
date.
2
An
employer
shall
not
require
that
a
person
be
a
current
3
employee
to
be
paid
a
commission
that
the
person
otherwise
4
earned.
5
Sec.
11.
EFFECTIVE
DATE.
This
Act
takes
effect
January
1,
6
2012.
7
EXPLANATION
8
This
bill
relates
to
employers
and
individuals
who
perform
9
labor
and
wage
payment
collection.
10
Code
section
91A.2(6)
is
amended
to
limit
liquidated
damages
11
to
twice
the
amount
of
unpaid
wages
rather
than
the
amount
of
12
unpaid
wages.
13
Code
section
91A.5
is
amended
to
provide
that
the
employer
14
has
the
burden
to
establish
that
a
deduction
from
employees’
15
wages
is
lawful
and
must
obtain
written
authorization
for
the
16
deduction
from
the
employee
in
advance.
17
Code
section
91A.6(1)
is
amended
to
remove
the
requirement
18
that
an
employer
be
notified
by
the
division
of
labor
services
19
of
the
department
of
workforce
development
before
the
employer
20
is
required
to
fulfill
the
requirements
in
subsection
1
21
relating
to
employee
wage
and
benefit
information.
In
Code
22
section
91A.6(1)(b),
the
employer
must
notify
employees
in
23
writing
whose
wages
are
determined
based
on
a
task,
piece,
24
mile,
or
load
basis
about
the
method
to
calculate
wages,
when
25
wages
are
earned.
Code
section
91A.6(1)(e)
is
amended
to
26
establish
a
rebuttable
presumption
that
an
employer
did
not
27
pay
the
minimum
wage
if
the
employer
does
not
maintain
proper
28
payroll
records.
29
Current
Code
section
91A.6(2),
setting
out
certain
employer
30
compliance
procedures,
is
stricken.
31
Code
section
91A.6(4)
is
amended
so
that
the
employer
32
must
send
to
each
employee
by
mail,
or
at
the
place
of
33
business
during
the
employee’s
working
hours
a
statement
of
34
the
employee’s
earnings,
deductions
made,
and
as
applicable
35
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the
following:
for
an
employee
paid
hourly,
the
number
of
1
hours
worked
during
the
pay
period;
for
an
employee
paid
on
a
2
percentage
of
sales
or
revenue
generated,
a
list
of
sales
or
3
amount
of
revenue
during
the
pay
period;
and
for
an
employee
4
paid
based
on
the
number
of
miles
or
loads
performed,
the
5
applicable
number
performed
during
the
pay
period.
An
employer
6
who
provides
an
electronic
statement
and
gives
employees
free
7
and
unrestricted
access
to
the
statement
is
in
compliance
with
8
the
Code
section.
9
In
Code
section
91A.8,
when
any
specified
violation
of
Code
10
chapter
91A
occurs,
an
employer
shall
be
liable
for
unpaid
11
wages
or
expenses
plus
liquidated
damages,
court
costs,
and
12
attorney
fees
incurred
in
recovering
wages.
13
Code
section
91A.10(5),
which
is
the
subsection
covering
14
retaliatory
actions
by
employers
or
others,
is
expanded
15
to
cover
persons
other
than
employees
who
act
under
Code
16
chapter
91A
with
respect
to
an
employee.
A
90-day
period
is
17
established
during
which
any
action
against
an
employee
or
18
other
person
is
rebuttably
presumed
to
be
retaliatory.
New
19
subsection
6
is
created
in
Code
section
91A.10
to
allow
the
20
commissioner
or
any
injured
party
to
maintain
a
civil
action
in
21
any
court
of
proper
jurisdiction.
An
employer
who
retaliates
22
against
an
employee
or
other
person
shall
compensate
the
23
injured
party
an
amount
set
by
the
commissioner
or
the
court,
24
but
not
less
than
$150
for
each
day
of
the
violation.
25
In
new
Code
section
91A.15,
an
employer
shall
not
require
26
that
an
individual
be
a
current
employee
to
be
paid
an
earned
27
commission.
28
The
bill
takes
effect
January
1,
2012.
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