H.F. _____ 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, as 21 a condition of employment, to participate in direct deposit 22 of the employee’s wages in a financial institution of the 23 employee’s choice unless the associated costs would reduce the 24 employee’s wage below the minimum wage, the employee would 25 incur fees as a result, or an applicable collective bargaining 26 agreement prohibits requiring direct deposit of wages. The 27 direct deposit requirement only applies to employees hired on 28 or after July 1, 2005. 29 This bill strikes the limitation to employees hired on or 30 after July 1, 2005, so that the permission will apply to all 31 employees. 32 -1- LSB 1450YC (2) 86 je/rj 1/ 1