Senate File 2295 - Introduced SENATE FILE 2295 BY COMMITTEE ON LABOR AND BUSINESS RELATIONS (SUCCESSOR TO SF 191) 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: 5 TLSB 1215SV (2) 85 je/rj
S.F. 2295 Section 1. Section 91A.5, subsection 1, unnumbered 1 paragraph 1, Code 2014, is amended to read as follows: 2 An employer shall have the burden to establish that a 3 deduction from employee wages is lawful. An employer shall not 4 withhold or divert any portion of an employee’s wages unless: 5 Sec. 2. Section 91A.5, subsection 1, paragraph b, Code 2014, 6 is amended to read as follows: 7 b. The employer has obtains advance written authorization 8 from the employee to so deduct for any lawful purpose accruing 9 to the benefit of the employee. 10 Sec. 3. Section 91A.6, subsection 1, Code 2014, is amended 11 to read as follows: 12 1. An employer shall after being notified by the 13 commissioner pursuant to subsection 2 do the following : 14 a. Notify its employees in writing at the time of hiring 15 what wages and regular paydays are designated by the employer. 16 b. Notify its employees in writing whose wages are 17 determined based on a task, piece, mile, or load basis about 18 the method used to calculate wages and when the wages are 19 earned by the employees. 20 b. c. Notify, at least one pay period prior to the 21 initiation of any changes, its employees of any changes in 22 the arrangements specified in this subsection 1 that reduce 23 wages or alter the regular paydays. The notice shall either 24 be in writing or posted at a place where employee notices are 25 routinely posted. 26 c. d. Make available to its employees upon written request, 27 a written statement enumerating employment agreements and 28 policies with regard to vacation pay, sick leave, reimbursement 29 for expenses, retirement benefits, severance pay, or other 30 comparable matters with respect to wages. Notice of such 31 availability shall be given to each employee in writing or by a 32 notice posted at a place where employee notices are routinely 33 posted. 34 d. e. Establish, maintain, and preserve for three 35 -1- LSB 1215SV (2) 85 je/rj 1/ 6
S.F. 2295 calendar years the payroll records showing the hours worked, 1 wages earned, and deductions made for each employee and 2 any employment agreements entered into between an employer 3 and employee. Failure to do so shall raise a rebuttable 4 presumption that the employer did not pay the required minimum 5 wage under section 91D.1. 6 Sec. 4. Section 91A.6, subsection 2, Code 2014, is amended 7 by striking the subsection. 8 Sec. 5. Section 91A.6, subsection 4, Code 2014, is amended 9 by striking the subsection and inserting in lieu thereof the 10 following: 11 4. a. On each regular payday, the employer shall send to 12 each employee by mail or shall provide at the employee’s normal 13 place of employment during normal employment hours a statement 14 showing the wages earned by the employee, the deductions made 15 for the employee, and the following information, as applicable: 16 (1) For each employee paid in whole or in part on an hourly 17 basis, the statement shall show the hours the employee worked. 18 (2) For each employee paid based on a percentage of sales or 19 based on a percentage of revenue generated for the employer, 20 the statement shall include a list of the amount of each sale 21 or the amount of revenue during the pay period. 22 (3) For each employee whose pay is based on the number 23 of miles or loads performed, the statement shall include the 24 applicable number performed during the pay period. 25 b. An employer who provides each employee access to view an 26 electronic statement of the employee’s earnings and provides 27 the employee free and unrestricted access to a printer to print 28 the employee’s statement of earnings, if the employee chooses, 29 is in compliance with this subsection. 30 Sec. 6. Section 91A.8, Code 2014, is amended to read as 31 follows: 32 91A.8 Damages recoverable by an employee. 33 When it has been shown that an employer has intentionally 34 failed to pay an employee wages or reimburse expenses pursuant 35 -2- LSB 1215SV (2) 85 je/rj 2/ 6
S.F. 2295 to section 91A.3 , whether as the result of a wage dispute or 1 otherwise, the employer shall be liable to the employee for 2 any the unpaid wages or unreimbursed expenses that are so 3 intentionally failed to be paid or reimbursed , plus liquidated 4 damages, court costs , and any attorney’s attorney fees incurred 5 in recovering the unpaid wages or unreimbursed expenses 6 and determined to have been usual and necessary. In other 7 instances the employer shall be liable only for unpaid wages or 8 expenses, court costs and usual and necessary attorney’s fees 9 incurred in recovering the unpaid wages or expenses. 10 Sec. 7. Section 91A.10, subsection 5, Code 2014, is amended 11 to read as follows: 12 5. An employer shall not discharge or in any other manner 13 discriminate against any employee because the employee has 14 filed a complaint, assigned a claim, or brought an action under 15 this section or has cooperated in bringing any action against 16 an employer. 17 5. a. An employer or other person shall not discharge or 18 in any other manner discriminate or retaliate against any of 19 the following: 20 (1) An employee or other person for exercising any right 21 provided under this chapter or any rules adopted pursuant to 22 this chapter. 23 (2) Another employee or person for providing assistance to 24 an employee or providing information regarding the employee or 25 person. 26 (3) Another employee or person for testifying or planning 27 to testify in any investigation or proceeding regarding the 28 employee or person. 29 b. Taking adverse action against an employee or other person 30 within ninety days of an employee’s or other person’s engaging 31 in any of the activities in paragraph “a” raises a presumption 32 that such action was retaliation, which may be rebutted by 33 evidence that such action was taken for other permissible 34 reasons. 35 -3- LSB 1215SV (2) 85 je/rj 3/ 6
S.F. 2295 c. Any employee may file a complaint with the commissioner 1 alleging discharge , or discrimination , or retaliation within 2 thirty days after such violation occurs. Upon receipt of the 3 complaint, the commissioner shall cause an investigation to be 4 made to the extent deemed appropriate. If the commissioner 5 determines from the investigation that the provisions of this 6 subsection have been violated, the commissioner shall bring 7 an action in the appropriate district court against such 8 person. The district court shall have jurisdiction, for cause 9 shown, to restrain violations of this subsection and order all 10 appropriate relief including rehiring or reinstatement of the 11 employee to the former position with back pay. 12 Sec. 8. Section 91A.10, Code 2014, is amended by adding the 13 following new subsection: 14 NEW SUBSECTION . 6. A civil action to enforce subsection 5 15 may also be maintained in any court of competent jurisdiction 16 by the commissioner or by any party injured by a violation 17 of subsection 5. An employer or other person who retaliates 18 against an employee or other person in violation of subsection 19 5 shall be required to pay the employee or other person 20 an amount set by the commissioner or a court sufficient to 21 compensate the employee or other person and to deter future 22 violations, but not less than one hundred fifty dollars for 23 each day that the violation occurred. 24 Sec. 9. NEW SECTION . 91A.15 Commissions earned date. 25 An employer shall not require that a person be a current 26 employee to be paid a commission that the person otherwise 27 earned. 28 Sec. 10. EFFECTIVE DATE. This Act takes effect January 1, 29 2015. 30 EXPLANATION 31 The inclusion of this explanation does not constitute agreement with 32 the explanation’s substance by the members of the general assembly. 33 This bill relates to employers and individuals who perform 34 labor and wage payment collection. 35 -4- LSB 1215SV (2) 85 je/rj 4/ 6
S.F. 2295 Code section 91A.5 is amended to provide that the employer 1 has the burden to establish that a deduction from employees’ 2 wages is lawful and that the employer must obtain written 3 authorization for the deduction from the employee in advance. 4 Code section 91A.6(1) is amended to remove the requirement 5 that an employer be notified by the division of labor services 6 of the department of workforce development before the employer 7 is required to fulfill the requirements in subsection 1 8 relating to employee wage and benefit information. In new 9 Code section 91A.6(1)(b), the employer is required to notify 10 employees in writing whose wages are determined based on 11 a task, piece, mile, or load basis about the method used 12 to calculate wages, when wages are earned. Code section 13 91A.6(1)(e) is amended to establish a rebuttable presumption 14 that an employer did not pay the minimum wage if the employer 15 does not maintain proper payroll records. 16 Current Code section 91A.6(2), setting out certain employer 17 compliance procedures, is stricken. 18 Code section 91A.6(4) is amended so that the employer 19 must send to each employee by mail, or at the place of 20 business during the employee’s working hours a statement of 21 the employee’s earnings, deductions made, and as applicable 22 the following: for an employee paid hourly, the number of 23 hours worked during the pay period; for an employee paid on a 24 percentage of sales or revenue generated, a list of sales or 25 amount of revenue during the pay period; and for an employee 26 paid based on the number of miles or loads performed, the 27 applicable number performed during the pay period. An employer 28 who provides an electronic statement and gives employees free 29 and unrestricted access to print out the statement is in 30 compliance with the Code section. 31 In Code section 91A.8, when any specified violation of Code 32 chapter 91A occurs, even if unintentional, an employer shall be 33 liable for unpaid wages or expenses plus liquidated damages, 34 court costs, and attorney fees incurred in recovering wages. 35 -5- LSB 1215SV (2) 85 je/rj 5/ 6
S.F. 2295 Code section 91A.10(5), which covers retaliatory actions 1 by employers or others, is expanded to cover persons other 2 than employees who act under Code chapter 91A with respect 3 to an employee. A 90-day period is established during which 4 any action against an employee or other person is rebuttably 5 presumed to be retaliatory. New subsection 6 is created in 6 Code section 91A.10 to allow the commissioner or any injured 7 party to maintain a civil action in any court of proper 8 jurisdiction. An employer who retaliates against an employee 9 or other person shall compensate the injured party an amount 10 set by the commissioner or the court, but not less than $150 11 for each day of the violation. 12 In new Code section 91A.15, an employer shall not require 13 that an individual be a current employee to be paid an earned 14 commission. 15 The bill takes effect January 1, 2015. 16 -6- LSB 1215SV (2) 85 je/rj 6/ 6