H.F. 401 Section 1. Section 84A.5, subsection 4, Code 2017, is 1 amended to read as follows: 2 4. The division of labor services is responsible for the 3 administration of the laws of this state under chapters 88 , 4 88A , 88B , 89 , 89A , 89B , 90A , 91 , 91A , 91C , 91D , 91E , 91F, 92 , 5 and 94A , and section 85.68 . The executive head of the division 6 is the labor commissioner, appointed pursuant to section 91.2 . 7 Sec. 2. Section 91.4, subsection 2, Code 2017, is amended 8 to read as follows: 9 2. The director of the department of workforce development, 10 in consultation with the labor commissioner, shall, at the 11 time provided by law, make an annual report to the governor 12 setting forth in appropriate form the business and expense of 13 the division of labor services for the preceding year, the 14 number of remedial actions taken under chapter 89A , the number 15 of disputes or violations processed by the division and the 16 disposition of the disputes or violations, and other matters 17 pertaining to the division which are of public interest, 18 together with recommendations for change or amendment of the 19 laws in this chapter and chapters 88 , 88A , 88B , 89 , 89A , 89B , 20 90A , 91A , 91C , 91D , 91E , 91F, 92 , and 94A , and section 85.68 , 21 and the recommendations, if any, shall be transmitted by the 22 governor to the first general assembly in session after the 23 report is filed. 24 Sec. 3. NEW SECTION . 91F.1 Meal and rest periods —— 25 requirements. 26 1. As used in this chapter, unless the context otherwise 27 requires: 28 a. “Commissioner” means the labor commissioner appointed 29 pursuant to section 91.2. 30 b. “Employee” means a natural person who is employed in this 31 state for wages by an employer. 32 c. “Employer” means a person, as defined in section 4.1, 33 who in this state employs for wages a natural person. An 34 employer does not include a client, patient, customer, or 35 -1- LSB 1945YH (4) 87 je/rj 1/ 7

H.F. 401 other person who obtains professional services from a licensed 1 person providing the services on a fee service basis or as an 2 independent contractor. 3 2. An employer shall provide an employee with appropriate 4 meal periods and appropriate rest periods. 5 a. An appropriate meal period shall be a period of not less 6 than thirty minutes during an employee’s work period in which 7 an employee works at least seven hours. The meal period shall 8 be taken between the second and fifth hours. If an employee 9 works more than seven hours, the meal period shall be taken 10 between the third and sixth hours. 11 b. An appropriate rest period shall be a paid period of 12 not less than ten minutes during every consecutive four-hour 13 period of work taken by an employee approximately in the middle 14 of each four-hour period. The rest period is in addition to a 15 meal period, if applicable, and shall not be added to a meal 16 period or deducted from the work period to reduce the overall 17 length of the total work period. 18 3. An employer is not required to pay for a meal period 19 if an employee is free from work duties during the employee’s 20 entire meal period. An employee shall be paid for the meal 21 period if any of the following occur: 22 a. The employee is required or allowed to remain on duty. 23 b. The employee is required to be on-call at the work 24 premises or designated worksite in order to be available to 25 return to duty even if the employee is not called back to duty. 26 c. The employee is called back to duty during the employee’s 27 meal period even though the employee is not usually on-call 28 during the meal period. 29 Sec. 4. NEW SECTION . 91F.2 Meal and rest periods —— 30 exemptions. 31 1. Meal and rest period requirements may be modified by the 32 terms of a collective bargaining agreement if the collective 33 bargaining agreement entered into by the employees prescribes 34 specific terms concerning meal periods and rest periods. 35 -2- LSB 1945YH (4) 87 je/rj 2/ 7

H.F. 401 2. Meal and rest period requirements apply to hourly paid 1 and salary-paid employees. Management or employees involved 2 in agricultural jobs are not required to have breaks or meal 3 breaks. For the purposes of this section, agricultural jobs do 4 not include work in the production of seed, limited to removal 5 of off-type plants and corn tassels and hand-pollinating during 6 the months of June, July, and August by persons ages fourteen 7 and older. 8 3. Meal period requirements may be waived if an employer 9 shows that the ordinary nature and circumstance of the work 10 prevented the employer from establishing and maintaining a 11 regularly scheduled meal period. The factors that may be 12 considered regarding the waiver of the requirements are limited 13 to the following: 14 a. The safety and health needs of employees, patients, 15 clients, and the public. 16 b. The lack of other employees available to provide relief 17 to an employee. 18 c. The cost involved in shutdown and startup of machinery in 19 continuous operation of the industrial process. 20 d. The intermittent and unpredictable workflow not 21 controlled by the employer or employee. 22 e. Unforeseeable equipment failures, emergencies, or acts 23 of nature that require immediate and uninterrupted attention 24 by an employee. 25 Sec. 5. NEW SECTION . 91F.3 Civil penalties. 26 1. Any employer who violates the provisions of this chapter 27 or the rules adopted pursuant to this chapter is subject to a 28 civil penalty of not more than one hundred dollars for each 29 violation. The commissioner may recover the civil penalty 30 according to subsections 2 through 5. Any civil penalty 31 recovered shall be deposited in the general fund of the state. 32 2. The commissioner may propose that an employer be assessed 33 a civil penalty by serving the employer with notice of such 34 proposal in the same manner as an original notice is served 35 -3- LSB 1945YH (4) 87 je/rj 3/ 7

H.F. 401 under the rules of civil procedure. Upon service of such 1 notice, the proposed assessment shall be treated as a contested 2 case under chapter 17A. However, to remain a contested case, 3 an employer must request a hearing within thirty days of being 4 served. 5 3. If an employer does not request a hearing pursuant 6 to subsection 2 or if the commissioner determines, after an 7 appropriate hearing, that an employer is in violation of this 8 chapter or the rules adopted pursuant to this chapter, the 9 commissioner shall assess a civil penalty which is consistent 10 with the provisions of subsection 1 and which is rendered with 11 due consideration for the penalty amount in terms of the size 12 of the employer’s business, the gravity of the violation, 13 the good faith of the employer, and the history of previous 14 violations. 15 4. An employer may seek judicial review of any assessment 16 rendered under subsection 3 by instituting proceedings for 17 judicial review pursuant to chapter 17A. However, such 18 proceedings must be instituted in the district court of the 19 county in which the violation or one of the violations occurred 20 and within thirty days of the day on which the employer was 21 notified that an assessment has been rendered. Also, an 22 employer may be required, at the discretion of the district 23 court and upon instituting such proceedings, to deposit the 24 amount assessed with the clerk of the district court. Any 25 moneys so deposited shall either be returned to the employer 26 or be forwarded to the commissioner for deposit in the general 27 fund of the state, depending on the outcome of the judicial 28 review, including any appeal to the supreme court. 29 5. After the time for seeking judicial review has expired 30 or after all judicial review has been exhausted and the 31 commissioner’s assessment has been upheld, the commissioner 32 shall request the attorney general to recover the assessed 33 penalties in a civil action. 34 Sec. 6. NEW SECTION . 91F.4 Duties and authority of 35 -4- LSB 1945YH (4) 87 je/rj 4/ 7

H.F. 401 commissioner. 1 1. The commissioner shall provide further exemptions from 2 the provisions in this chapter when reasonable. 3 2. In order to carry out the purposes of this chapter, the 4 commissioner or the commissioner’s designee, upon presenting 5 appropriate credentials to the employer or agent of the 6 employer, may do any of the following: 7 a. Inspect employment records relating to meal and rest 8 periods for employees. 9 b. Interview an employer or employee or an agent of 10 the employer or employee, during working hours or at other 11 reasonable times. 12 3. The commissioner shall adopt rules pursuant to chapter 13 17A to administer this chapter. 14 EXPLANATION 15 The inclusion of this explanation does not constitute agreement with 16 the explanation’s substance by the members of the general assembly. 17 This bill creates a new Code chapter 91F that requires an 18 employer to provide an employee with appropriate meal periods 19 and appropriate rest periods. 20 The bill states that an appropriate meal period shall be not 21 less than 30 minutes during an employee’s work period of at 22 least seven hours. The meal period is to be taken between the 23 second and fifth hours of the work or, if the employee works 24 more than seven hours, between the third and sixth hours. 25 The bill states that an appropriate rest period shall be a 26 paid period of not less than 10 minutes during every four-hour 27 work period. The rest period is taken in the middle of the work 28 period. The rest period is in addition to the meal period and 29 cannot be added to the meal period or deducted from the work 30 period to reduce the overall length of the total work period. 31 The bill defines an “employee” as a natural person who is 32 employed in this state for wages by an employer. An “employer” 33 is defined as a person, as defined in Code section 4.1, who 34 employs a natural person for wages. 35 -5- LSB 1945YH (4) 87 je/rj 5/ 7

H.F. 401 The bill provides that an employer is not required to pay for 1 a meal period if an employee is free from work duties during 2 the employee’s entire meal period. 3 The bill allows three exemptions to the meal and rest period 4 requirements. The first exemption is if the meal and rest 5 period requirements are modified by the terms of a collective 6 bargaining agreement. However, the exemption is valid only 7 if the collective bargaining agreement entered into by the 8 employees prescribes specific terms concerning meal periods and 9 rest periods. 10 The second exemption states that meal and rest period 11 requirements apply to hourly paid and salary-paid employees. 12 However, management or employees involved in certain 13 agricultural jobs are not required to have breaks or meal 14 breaks. 15 The third exemption is if an employer shows that the ordinary 16 nature and circumstance of the work prevented the employer from 17 establishing and maintaining a regular scheduled meal period. 18 The bill provides civil penalties for violating the new 19 Code chapter. An employer who violates the provisions shall 20 be subject to a penalty of up to $100 for each violation. The 21 labor commissioner may recover the penalties under Code chapter 22 17A contested case procedures. Any penalties recovered shall 23 be deposited in the general fund of the state. 24 The commissioner may propose that an employer be assessed a 25 penalty by serving the employer with notice of a penalty in the 26 same manner as an original notice is served under the rules of 27 civil procedure. 28 The bill provides the labor commissioner with the authority 29 to provide further exemptions from new Code chapter 91F when 30 reasonable. Also, the labor commissioner or the commissioner’s 31 designee may inspect employment records relating to rest 32 periods for employees and interview an employer or employee or 33 an agent of the employer or employee, during working hours or 34 at other reasonable times. The bill requires the commissioner 35 -6- LSB 1945YH (4) 87 je/rj 6/ 7