S.F. 460 Section 1. Section 91A.3, subsection 3, Code 2015, is 1 amended to read as follows: 2 3. a. The wages paid under subsection 1 shall be paid using 3 a method authorized by this section. 4 b. Wages due may be paid at the employee’s normal place of 5 employment during normal employment hours or at a place and 6 hour mutually agreed upon by the employer and employee , or the 7 employee may elect to have the wages sent for direct deposit, 8 on or by the regular payday of the employee, into a financial 9 institution designated by the employee . 10 c. Upon written request by the employee, wages due may be 11 sent to the employee by mail. The employer shall maintain a 12 copy of the request for as long as it is effective and for at 13 least two years thereafter. 14 d. The employee may elect to have wages due sent for 15 direct deposit, on or by the regular payday of the employee, 16 into a financial institution designated by the employee. An 17 employee hired on or after July 1, 2005, may be required, as 18 a condition of employment, to participate in direct deposit 19 of the employee’s wages in a financial institution of the 20 employee’s choice unless any of the following conditions exist: 21 (1) The costs to the employee of establishing and 22 maintaining an account for purposes of the direct deposit would 23 effectively reduce the employee’s wages to a level below the 24 minimum wage provided under section 91D.1 . 25 (2) The employee would incur fees charged to the employee’s 26 account as a result of the direct deposit. 27 (3) The provisions of a collective bargaining agreement 28 mutually agreed upon by the employer and the employee 29 organization prohibit the employer from requiring an employee 30 to sign up for direct deposit as a condition of hire. 31 e. (1) An employer may offer payment of wages by debit 32 card or pay card pursuant to this section only if all of the 33 following requirements are met: 34 (a) The employee voluntarily agrees in writing to payment 35 -1- LSB 1331SV (2) 86 je/rj 1/ 4

S.F. 460 by debit card or pay card after the employer offers to pay the 1 employee’s wages by debit card or pay card and notifies the 2 employee in writing that receipt of payment by debit card or 3 pay card is voluntary on the employee’s part and listing the 4 other method or methods of payment offered by the employer. 5 (b) The employee has the option of withdrawing all wages 6 due once per pay period, but not more frequently than once per 7 week, without incurring any charge, if such withdrawal of wages 8 is conducted at a financial institution’s office location. For 9 purposes of this subparagraph division, “financial institution” 10 means the same as defined in section 537.1301. 11 (2) The employer shall retain copies of the employee’s 12 written consent and the notice of charges for the period for 13 which the consent is effective and for at least two years 14 thereafter. 15 (3) The employer shall substitute another payment method 16 in accordance with this section no later than two pay periods 17 after receiving a request from an employee for termination of 18 payment by debit card or pay card. 19 b. f. If the employer fails to pay an employee’s wages on 20 or by the regular payday in accordance with this subsection , 21 the employer is liable for the amount of any overdraft charge 22 if the overdraft is created on the employee’s account because 23 of the employer’s failure to pay the wages on or by the regular 24 payday. The overdraft charges may be the basis for a claim 25 under section 91A.10 and for damages under section 91A.8 . 26 Sec. 2. Section 91A.6, subsection 4, Code 2015, is amended 27 to read as follows: 28 4. On each regular payday, the employer shall send to 29 each employee by mail or shall provide at the employee’s 30 normal place of employment during normal employment hours a 31 statement showing the beginning and ending dates of the pay 32 period to which the statement applies, the hours the employee 33 worked, the wages earned by the employee, and deductions made 34 for the employee. However, the employer need not provide 35 -2- LSB 1331SV (2) 86 je/rj 2/ 4

S.F. 460 information on hours worked for employees who are exempt 1 from overtime under the federal Fair Labor Standards Act, 2 as defined in 29 C.F.R. pt. 541, unless the employer has 3 established a policy or practice of paying to or on behalf 4 of exempt employees overtime, a bonus, or a payment based on 5 hours worked, whereupon the employer shall send or otherwise 6 provide a statement to the exempt employees showing the hours 7 the employee worked or the payments made to the employee 8 by the employer, as applicable. An employer who provides 9 each employee access to view an electronic statement of 10 the employee’s earnings and provides the employee free and 11 unrestricted access to a printer to print the employee’s 12 statement of earnings, if the employee chooses, is in 13 compliance with this subsection . 14 Sec. 3. NEW SECTION . 91A.15 Unclaimed wages. 15 Wages that remain unclaimed by an employee for a period of 16 one year after becoming payable shall be deemed abandoned as 17 provided in section 556.9, subsection 1, regardless of the 18 medium of payment in which they are paid or payable. Unclaimed 19 wages shall be reported to the treasurer of state pursuant 20 to section 556.9, subsection 1. The employer of an employee 21 who abandons wages shall be considered the holder of such 22 wages, regardless of whether the employer has engaged a service 23 provider to perform payroll, debit card, or pay card services. 24 For purposes of this section, “holder” means the same as defined 25 in section 556.1. 26 EXPLANATION 27 The inclusion of this explanation does not constitute agreement with 28 the explanation’s substance by the members of the general assembly. 29 This bill permits an employer to offer payment of wages by 30 debit card or pay card under Code chapter 91A, the Iowa wage 31 payment collection law, if certain requirements are met. 32 The employee must voluntarily agree in writing to payment 33 by debit card or pay card after the employer offers to pay the 34 employee’s wages by debit card or pay card and notifies the 35 -3- LSB 1331SV (2) 86 je/rj 3/ 4

S.F. 460 employee in writing that receipt of payment by debit card or 1 pay card is voluntary on the employee’s part and listing the 2 other method or methods of payment offered by the employer. 3 The employee must also have the option of withdrawing all wages 4 due once per pay period, but not more frequently than once per 5 week, without incurring any charge, if such withdrawal of wages 6 is conducted at a financial institution’s office location. 7 The bill requires an employer to retain copies of the 8 employee’s written consent and the notice of charges for the 9 period for which the consent is effective and for at least two 10 years thereafter. 11 The bill requires an employer to substitute another payment 12 method in accordance with this Code section no later than two 13 pay periods after receiving a request from an employee for 14 termination of payment by debit card or pay card. 15 The bill provides that regular payday statements provided to 16 employees by employers must include the beginning and ending 17 dates of the pay period to which the statement applies. 18 The bill provides that wages that remain unclaimed by an 19 employee for a period of one year after becoming payable 20 shall be deemed abandoned as provided in Code chapter 556, 21 relating to disposition of unclaimed property, regardless of 22 the medium of payment in which they are paid or payable. The 23 bill that requires unclaimed wages be reported to the treasurer 24 of state as provided in Code chapter 556. The bill provides 25 that the employer of an employee who abandons wages shall be 26 considered the holder of such wages as defined in Code chapter 27 556, regardless of whether the employer has engaged a service 28 provider to perform payroll, debit card, or pay card services. 29 Under Code chapter 91A, unpaid wages or expenses, along with 30 liquidated damages, court costs, and attorney fees, may be 31 recovered by the employee or the labor commissioner by civil 32 action. An employer who violates Code chapter 91A is also 33 subject to a civil penalty of not more than $500 per pay period 34 for each violation. 35 -4- LSB 1331SV (2) 86 je/rj 4/ 4