HF 2286 (LSB 5603YH (2) 85)

HOUSE FILE 2286

BY  HUNTER

A BILL FOR

An Act relating to the regulation of employment agencies and making penalties applicable.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  NEW SECTION.  94A.3A  Employee notice.
   1.  An employment agency shall provide to each employee referred for employment notice of the following:
   a.  The name, address, electronic mail address, and telephone number of the following:
   (1)  The employment agency, or the contact information of the employee of the employment agency facilitating the placement.
   (2)  The employment agency’s workers’ compensation carrier.
   (3)  The employer.
   (4)  The commissioner.
   b.  A description of the position and whether it will require any special clothing, equipment, training, or licenses, and any costs that will be charged to the employee for supplies or training.
   c.  The designated payday, the hourly rate of pay, and whether overtime may occur and be paid.
   d.  The daily starting time and anticipated end time and, if known, the expected duration of employment.
   e.  Whether any meals will be provided by the employment agency or employer and the charge for such meals, if any, to the employee.
   f.  Details of the means of transportation to the work site and any fees that will be charged to the employee by the employment agency or employer for any transportation services.
   2.  An employment agency shall confirm the information in the notice required by subsection 1 in writing and send a copy thereof to the employee, by a method designated by the employee, before the end of the employee’s first pay period. However, an employment agency shall send any change in the initial terms of employment to the employee immediately.
   3.  The employment agency shall post in a conspicuous place in each of the locations where it does business a notice of the requirements of this section and the name, internet site address, and telephone number of the commissioner. The commissioner shall prepare and publish on the commissioner’s internet site a sample notice for use by employers that meets the requirements of this section and, upon request, shall facilitate the translation of the notice into a language other than English.
   4.  This section shall not be construed to prohibit an employment agency from directing an employee to employment by telephone. However, the employment agency shall provide the information required by subsection 1 by telephone at the same time.
   5.  This section does not apply to a professional employee, as defined in 29 U.S.C. §152, or to an employee who is a secretary or administrative assistant whose main or primary duties are described by the United States department of labor, bureau of labor statistics, as involving one or more of the following:
   a.  Drafting or revising correspondence.
   b.  Scheduling appointments.
   c.  Creating, organizing, and maintaining paper and electronic files.
   d.  Providing information to callers or visitors.
    Sec. 2.  NEW SECTION.  94A.3B  Transportation services.

   If an employment agency or employer or a person acting directly or indirectly in the interest of either offers transportation services to or from a designated work site to an employee and charges a fee for such services, the employment agency or employer shall charge such employee not more than the actual cost to transport such employee to or from the designated work site. Such fee shall not exceed three percent of such employee’s total daily wages and shall not reduce the employee’s total daily wages below the minimum wage earned for the day. If an employment agency or employer or a person acting directly or indirectly in the interest of either requires the use of such services by an employee, a fee shall not be charged to the employee for such services. If an employment agency or employer provides transportation services to a designated work site to an employee on a day when employment is not available, the employment agency or employer shall fully refund any fee charged to the employee for such services.
    Sec. 3.  Section 94A.4, subsection 4, Code 2014, is amended by adding the following new paragraphs:
   NEW PARAGRAPH.  g.  Refer an employee for employment by force or fraud, for illegal purposes, or where the employment is in violation of state or federal law.
   NEW PARAGRAPH.  h.  Refer an employee for employment at any location that is on strike or lockout without first notifying the employee of such fact.
    Sec. 4.  Section 94A.4, Code 2014, is amended by adding the following new subsections:
   NEW SUBSECTION.  5.  An employment agency or employer shall not charge or accept a fee from an employee for the following:
   a.  Any good or service unless under the terms of a written contract with the employee, which clearly states in a language the employee can understand that the purchase is voluntary and which provides that the employment agency will not gain a profit from any cost or fee charged to the employee.
   b.  The provision of a bank card, debit card, payroll card, voucher, draft, money order, or similar form of payment or wages that exceeds the actual cost per employee.
   c.  Any drug test.
   d.  Any criminal history background check.
   e.  Transportation, except as provided in section 94A.3B.
   f.  Any good or service the payment for which would cause the employee to earn less than the applicable minimum wage.
   NEW SUBSECTION.  6.  An employment agency or employer or a person acting directly or indirectly in the interest of either shall not deduct any costs or fees from the wages of an employee without the express written authorization of the employee. An employment agency or employer shall furnish to the employee a copy of the signed authorization in a language the employee can understand.
   NEW SUBSECTION.  7.  An employment agency or employer shall not refuse to return on demand any personal property belonging to an employee or any fee or cost that is charged to the employee or accepted by the employment agency or employer in excess of the amounts allowable under this chapter.
EXPLANATION
The inclusion of this explanation does not constitute agreement with

the explanation’s substance by the members of the general assembly.
   This bill makes various modifications to Code chapter 94A, which provides for regulation of employment agencies in this state by the labor commissioner. “Employment agency” is defined as a person who brings together those desiring to employ and those desiring employment and who receives a fee, privilege, or other consideration directly or indirectly from an employee for the service.
   The bill requires an employment agency to provide to each employee referred for employment notice of certain information. The notice must include contact information for the employment agency, the agency’s workers’ compensation carrier, the employer, and the commissioner. The notice must include a description of the position. The notice must include the designated payday, the hourly rate of pay, and whether overtime may occur and be paid. The notice must include the daily starting time and anticipated end time and, if known, the expected duration of employment. The notice must include information relating to meals and transportation. The required information must be confirmed in writing and sent to the employee before the end of the employee’s first pay period by an employment agency, but any change to the initial terms of employment must be sent immediately.
   The bill requires an employment agency to post in each of the locations where it does business notice of the requirements of this bill and contact information for the commissioner. The bill requires the commissioner to prepare a sample notice for use by employers.
   The notice requirements do not prohibit an employment agency from directing an employee to employment by telephone, if the employment agency also provides the required notification at the same time. The notification requirements do not apply to a professional employee as defined in federal law or to an employee who is a secretary or administrative assistant who has certain duties.
   The bill places certain limitations on the fees an employment agency or employer can charge an employee for transportation services to or from a designated work site.
   The bill prohibits an employment agency from referring an employee for employment by force or fraud, for illegal purposes, or where the employment is in violation of state or federal law. The bill prohibits an employment agency from referring an employee for employment at any location that is on strike or lockout without first notifying the employee of such fact.
   The bill prohibits an employment agency or employer from charging or accepting a fee from an employee for any good or service unless under the terms of a written contract with the employee; the provision of a bank card, debit card, or similar form of payment or wages that exceeds the actual cost per employee; any drug test; any criminal history background check; transportation, except as provided in the bill; or any good or service the payment for which would cause the employee to earn less than the applicable minimum wage.
   The bill prohibits an employment agency or employer from deducting any costs or fees from the wages of an employee without the express written authorization of the employee.
   The bill prohibits an employment agency or employer from refusing to return on demand any personal property belonging to an employee or any fee or cost that is charged to the employee or accepted by the employment agency or employer in excess of the amounts allowable under Code chapter 94A.
   A violation of Code chapter 94A is a simple misdemeanor and is also cause for a civil penalty in an amount up to $2,000. A simple misdemeanor is punishable by confinement for no more than 30 days or a fine of at least $65 but not more than $625 or by both.