House File 122 - Introduced HOUSE FILE 122 BY HUNTER , OLSON , CAHILL , WILBURN , STAED , MASCHER , and EHLERT A BILL FOR An Act relating to the state minimum hourly wage. 1 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 2 TLSB 1569YH (5) 89 je/rn
H.F. 122 Section 1. Section 91D.1, subsection 1, Code 2021, is 1 amended to read as follows: 2 1. 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 $8.20 as of 4 July 1, 2021, $9.15 as of July 1, 2022, $10.10 as of January 1, 5 2023, $11.05 as of July 1, 2023, $12.00 as of January 1, 2024, 6 $12.95 as of July 1, 2024, $13.90 as of January 1, 2025, and 7 $15.00 as of July 1, 2025 . 8 (2) The state hourly wage, including the state hourly wage 9 for the first ninety calendar days of employment provided in 10 paragraph “d” , shall be increased annually on July 1, beginning 11 July 1, 2026, by the same percentage as the cost-of-living 12 increase in federal social security benefits authorized during 13 the previous state fiscal year by the federal social security 14 administration pursuant to section 215 of the federal Social 15 Security Act, 42 U.S.C. §415. 16 b. Every employer, as defined in the federal Fair Labor 17 Standards Act of 1938, as amended to January 1, 2007 July 1, 18 2021 , shall pay to each of the employer’s employees, as defined 19 in the federal Fair Labor Standards Act of 1938, as amended to 20 January 1, 2007 July 1, 2021 , the state hourly wage stated in 21 paragraph “a” , or the current federal minimum wage, pursuant to 22 29 U.S.C. §206, as amended, whichever is greater. 23 c. For purposes of determining whether an employee of a 24 restaurant, hotel, motel, inn, or cabin, who customarily and 25 regularly receives more than thirty one hundred dollars a month 26 in tips is receiving the minimum hourly wage rate prescribed 27 by this section , the amount paid the employee by the employer 28 shall be deemed to be increased on account of the tips by an 29 amount determined by the employer, not to exceed forty percent 30 of the applicable minimum wage. An employee may file a written 31 appeal with the labor commissioner if the amount of tips 32 received by the employee is less than the amount determined by 33 the employer under this subsection . 34 d. An employer is not required to pay an employee the 35 -1- LSB 1569YH (5) 89 je/rn 1/ 3
H.F. 122 applicable state hourly wage provided in paragraph “a” until the 1 employee has completed ninety calendar days of employment with 2 the employer. An employee who has completed ninety calendar 3 days of employment with the employer prior to April 1, 2007, or 4 January 1, 2008, shall earn the applicable state hourly minimum 5 wage as of that the date of completion . An employer shall 6 pay an employee who has not completed ninety calendar days of 7 employment with the employer an hourly wage of at least $5.30 8 as of April 1, 2007, and $6.35 as of January 1, 2008 $7.20 as of 9 July 1, 2021, $8.05 as of July 1, 2022, $8.85 as of January 1, 10 2023, $9.70 as of July 1, 2023, $10.55 as of January 1, 2024, 11 $11.40 as of July 1, 2024, $12.25 as of January 1, 2025, and 12 $13.20 as of July 1, 2025 . 13 e. A county or city may establish a minimum wage that 14 exceeds the state hourly wage and the federal minimum wage. 15 EXPLANATION 16 The inclusion of this explanation does not constitute agreement with 17 the explanation’s substance by the members of the general assembly. 18 This bill increases the state minimum hourly wage to $8.20 as 19 of July 1, 2021, $9.15 as of July 1, 2022, $10.10 as of January 20 1, 2023, $11.05 as of July 1, 2023, $12.00 as of January 1, 21 2024, $12.95 as of July 1, 2024, $13.90 as of January 1, 2025, 22 and $15.00 as of July 1, 2025. The bill increases the state 23 minimum hourly wage for employees employed for less than 90 24 days to $7.20 as of July 1, 2021, $8.05 as of July 1, 2022, 25 $8.85 as of January 1, 2023, $9.70 as of July 1, 2023, $10.55 26 as of January 1, 2024, $11.40 as of July 1, 2024, $12.25 as of 27 January 1, 2025, and $13.20 as of July 1, 2025. 28 The bill increases the state minimum hourly wage, including 29 the minimum hourly wage established for employees employed for 30 less than 90 days, annually on July 1, beginning July 1, 2026, 31 by the same percentage as the cost-of-living increase in social 32 security benefits effective as of the previous December, as 33 authorized by the federal social security administration. 34 The bill increases the dollar amount of monthly tips an 35 -2- LSB 1569YH (5) 89 je/rn 2/ 3
H.F. 122 employee must receive in order to be subject to an alternative 1 minimum wage calculation for employees who receive tips from 2 $30 to $100. 3 The bill authorizes a county or city to establish a minimum 4 wage that exceeds the state hourly wage and the federal minimum 5 wage. 6 -3- LSB 1569YH (5) 89 je/rn 3/ 3