House File 286 - Introduced HOUSE FILE 286 BY COMMITTEE ON JUDICIARY (SUCCESSOR TO HSB 23) A BILL FOR An Act relating to the direct deposit of employee wages. 1 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 2 TLSB 1450HV (4) 86 je/rj

H.F. 286 Section 1. Section 91A.3, subsection 3, paragraph a, 1 unnumbered paragraph 1, Code 2015, is amended to read as 2 follows: 3 The wages paid under subsection 1 shall be paid at the 4 employee’s normal place of employment during normal employment 5 hours or at a place and hour mutually agreed upon by the 6 employer and employee, or the employee may elect to have the 7 wages sent for direct deposit, on or by the regular payday of 8 the employee, into a financial institution designated by the 9 employee. Upon written request by the employee, wages due may 10 be sent to the employee by mail. The employer shall maintain 11 a copy of the request for as long as it is effective and for 12 at least two years thereafter. An employee hired on or after 13 July 1, 2005, may be required, as a condition of employment, 14 to participate in direct deposit of the employee’s wages in a 15 financial institution of the employee’s choice unless any of 16 the following conditions exist: 17 EXPLANATION 18 The inclusion of this explanation does not constitute agreement with 19 the explanation’s substance by the members of the general assembly. 20 Current law permits an employer to require an employee hired 21 on or after July 1, 2005, as a condition of employment, to 22 participate in direct deposit of the employee’s wages in a 23 financial institution of the employee’s choice unless certain 24 exceptions apply. The exceptions are if the associated costs 25 would reduce the employee’s wage below the minimum wage, if 26 the employee would incur fees as a result, or if an applicable 27 collective bargaining agreement prohibits requiring direct 28 deposit of wages. 29 This bill strikes the limitation to employees hired on or 30 after July 1, 2005, so that any employee may be required to 31 participate in direct deposit of the employee’s wages unless 32 one of the exceptions applies. 33 The bill also strikes language permitting an employer to 34 send an employee wages due by mail upon written request by the 35 -1- LSB 1450HV (4) 86 je/rj 1/ 2

H.F. 286 employee. 1 -2- LSB 1450HV (4) 86 je/rj 2/ 2