House File 282 - Introduced HOUSE FILE 282 BY ANDERSON A BILL FOR An Act providing for an increase in the state minimum hourly 1 wage and subsequent increases by the same percentage as the 2 increase in the midwest consumer price index and increasing 3 the tip threshold for the state minimum hourly wage for 4 tipped employees. 5 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 6 TLSB 2015HH (6) 87 je/rj

H.F. 282 Section 1. Section 91D.1, subsection 1, paragraphs a, c, and 1 d, Code 2017, are amended to read as follows: 2 a. (1) The state hourly wage shall be at least $6.20 as 3 of April 1, 2007, and $7.25 as of January 1, 2008 $8.75 as of 4 July 1, 2017, $10.50 as of July 1, 2018, and $12.00 as of July 5 1, 2019 . 6 (2) The state hourly wage, including the state hourly wage 7 for the first ninety calendar days of employment provided in 8 paragraph “d” , shall be increased annually on July 1, beginning 9 July 1, 2020, by the same percentage as the increase in the 10 consumer price index for all urban consumers for the midwest 11 region for the previous calendar year, if any, as determined 12 by the United States department of labor, bureau of labor 13 statistics, or a successor index. In no case shall the state 14 hourly wage, including the state hourly wage for the first 15 ninety calendar days of employment provided in paragraph “d” , be 16 decreased pursuant to this subparagraph. 17 c. For purposes of determining whether an employee of a 18 restaurant, hotel, motel, inn, or cabin, who customarily and 19 regularly receives more than thirty fifty dollars a month in 20 tips is receiving the minimum hourly wage rate prescribed by 21 this section , the amount paid the employee by the employer 22 shall be deemed to be increased on account of the tips by an 23 amount determined by the employer, not to exceed forty percent 24 of the applicable minimum wage. An employee may file a written 25 appeal with the labor commissioner if the amount of tips 26 received by the employee is less than the amount determined by 27 the employer under this subsection . 28 d. An employer is not required to pay an employee the 29 applicable state hourly wage provided in paragraph “a” until the 30 employee has completed ninety calendar days of employment with 31 the employer. An employee who has completed ninety calendar 32 days of employment with the employer prior to April 1, 2007, or 33 January 1, 2008, shall earn the applicable state hourly minimum 34 wage as of that the date of completion . An employer shall 35 -1- LSB 2015HH (6) 87 je/rj 1/ 2

H.F. 282 pay an employee who has not completed ninety calendar days of 1 employment with the employer an hourly wage of at least $5.30 2 as of April 1, 2007, and $6.35 as of January 1, 2008 $7.50 as of 3 July 1, 2017, $8.50 as of July 1, 2018, and $10.00 as of July 4 1, 2019 . 5 EXPLANATION 6 The inclusion of this explanation does not constitute agreement with 7 the explanation’s substance by the members of the general assembly. 8 This bill increases the state minimum hourly wage to $8.75 9 as of July 1, 2017, $10.50 as of July 1, 2018, and $12.00 as 10 of July 1, 2019. The bill increases the state minimum hourly 11 wage for employees employed for less than 90 days to $7.50 as 12 of July 1, 2017, $8.50 as of July 1, 2018, and $10.00 as of July 13 1, 2019. 14 The bill increases from $30 to $50 the amount of money an 15 employee of a restaurant, hotel, motel, inn, or cabin must 16 receive in tips in order to be covered by the state minimum 17 wage for tipped employees. If an employee is covered by the 18 state minimum wage for tipped employees, 40 percent of the 19 state minimum wage for the employee may be considered to be 20 received by tips. The remainder of the minimum wage must be 21 paid by the employer. 22 The bill also increases the state minimum hourly wage, 23 including the minimum hourly wage established for employees 24 employed for less than 90 days, annually on July 1, beginning 25 July 1, 2020, by the same percentage as the increase in the 26 consumer price index for all urban consumers for the midwest 27 region for the previous calendar year, if any, as determined 28 by the United States department of labor, bureau of labor 29 statistics, or a successor index. In no case shall the state 30 hourly wage, including the state hourly wage for the first 90 31 calendar days of employment, be decreased pursuant to this 32 provision. 33 -2- LSB 2015HH (6) 87 je/rj 2/ 2