H.F. 18 Section 1. Section 84A.5, subsection 4, Code 2013, 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 breaks —— 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 breaks and appropriate rest breaks. 21 a. An appropriate meal break shall be not less than thirty 22 minutes during an employee’s work period that lasts at least 23 seven hours. The meal break shall be taken between the second 24 and fifth hours. If an employee works more than seven hours, 25 the meal break shall be taken between the third and sixth 26 hours. 27 b. An appropriate rest break shall be not less than ten 28 minutes during each consecutive four-hour period of work, 29 shall be taken by an employee approximately in the middle of 30 the four-hour period, and shall be paid. The rest break is in 31 addition to a meal break, if applicable, and shall not be added 32 to a meal break or deducted from the work period to reduce the 33 overall length of the total work period. 34 3. An employer is not required to pay for a meal break if an 35 -1- LSB 1232YH (1) 85 je/rj 1/ 6

H.F. 18 employee is free from work duties during the employee’s entire 1 meal break. An employee shall be paid for the meal break if any 2 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 break even though the employee is not usually on-call 9 during the meal break. 10 Sec. 3. NEW SECTION . 91F.2 Meal and rest breaks —— 11 exemptions. 12 1. Meal and rest break 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 breaks and rest breaks. 16 2. Meal and rest break requirements apply to hourly paid 17 and salary-paid employees. Management or employees involved in 18 agricultural jobs are not required to have meal breaks or rest 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 break 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 break. The circumstances in which the 28 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 1232YH (1) 85 je/rj 2/ 6

H.F. 18 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 1232YH (1) 85 je/rj 3/ 6

H.F. 18 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 breaks 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 and rest 30 breaks. 31 The bill states that an appropriate meal break shall be not 32 less than 30 minutes during an employee’s work period of at 33 least seven hours. The meal break is to be taken between the 34 second and fifth hours of the work or, if the employee works 35 -4- LSB 1232YH (1) 85 je/rj 4/ 6

H.F. 18 more than seven hours, between the third and sixth hours. 1 The bill states that an appropriate rest break shall be not 2 less than 10 minutes during each four-hour work period. The 3 rest break is taken in the middle of the work period. The rest 4 break is in addition to the meal break and cannot be added to 5 the meal break or deducted from the work period to reduce the 6 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 break if an employee is free from work duties during the 13 employee’s entire meal break. 14 The bill allows three exemptions to the meal and rest break 15 requirements. The first exemption is if the meal and rest 16 break 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 and rest 20 breaks. 21 The second exemption states that meal and rest break 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 meal or rest breaks. 25 The third exemption is when an employer can show that the 26 ordinary nature and circumstance of the work prevented the 27 employer from establishing and maintaining a regular scheduled 28 meal break. 29 The bill provides civil penalties for violating the new 30 Code chapter. An employer who violates the provisions shall 31 be subject to a penalty of up to $100 for each violation. The 32 labor commissioner may recover the penalties under Code chapter 33 17A contested case procedures. Any penalties recovered shall 34 be deposited in the general fund of the state. 35 -5- LSB 1232YH (1) 85 je/rj 5/ 6

H.F. 18 The commissioner may propose that an employer be assessed a 1 penalty by serving the employer with notice of a penalty in the 2 same manner as an original notice is served under the rules of 3 civil procedure. 4 The bill provides the labor commissioner with the authority 5 to adopt rules to administer and enforce the Code chapter 6 and to provide further exemptions from the provisions when 7 reasonable. Also, the labor commissioner or the commissioner’s 8 designee may inspect employment records relating to meal and 9 rest breaks for employees and interview an employer or employee 10 or an agent of the employer or employee, during working hours 11 or at other reasonable times. 12 -6- LSB 1232YH (1) 85 je/rj 6/ 6