House File 180 - Introduced HOUSE FILE 180 BY HUNTER , OLSON , JACOBY , WESSEL-KROESCHELL , KRESSIG , STECKMAN , CAHILL , WILBURN , STAED , JAMES , WINCKLER , GJERDE , MASCHER , BROWN-POWERS , and COHOON A BILL FOR An Act concerning wage payment collection issues arising 1 between employers and employees, providing penalties and 2 remedies, and including effective date provisions. 3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 4 TLSB 1618YH (2) 89 je/rn
H.F. 180 Section 1. Section 91A.5, subsection 1, unnumbered 1 paragraph 1, Code 2021, is amended to read as follows: 2 An employer shall have the burden to establish that a 3 deduction from employee wages is lawful. An employer shall not 4 withhold or divert any portion of an employee’s wages unless: 5 Sec. 2. Section 91A.5, subsection 1, paragraph b, Code 2021, 6 is amended to read as follows: 7 b. The employer has obtains advance written authorization 8 from the employee to so deduct for any lawful purpose accruing 9 to the benefit of the employee. 10 Sec. 3. Section 91A.6, subsection 1, Code 2021, is amended 11 to read as follows: 12 1. An employer shall after being notified by the 13 commissioner pursuant to subsection 2 do the following : 14 a. Notify its employees in writing at the time of hiring 15 what wages and regular paydays are designated by the employer. 16 b. Notify its employees in writing whose wages are 17 determined based on a task, piece, mile, or load basis about 18 the method used to calculate wages and when the wages are 19 earned by the employees. 20 b. c. Notify, at least one pay period prior to the 21 initiation of any changes, its employees of any changes in 22 the arrangements specified in this subsection 1 that reduce 23 wages or alter the regular paydays. The notice shall either 24 be in writing or posted at a place where employee notices are 25 routinely posted. 26 c. d. Make available to its employees upon written request, 27 a written statement enumerating employment agreements and 28 policies with regard to vacation pay, sick leave, reimbursement 29 for expenses, retirement benefits, severance pay, or other 30 comparable matters with respect to wages. Notice of such 31 availability shall be given to each employee in writing or by a 32 notice posted at a place where employee notices are routinely 33 posted. 34 d. e. Establish, maintain, and preserve for three 35 -1- LSB 1618YH (2) 89 je/rn 1/ 6
H.F. 180 calendar years the payroll records showing the hours worked, 1 wages earned, and deductions made for each employee and 2 any employment agreements entered into between an employer 3 and employee. Failure to do so shall raise a rebuttable 4 presumption that the employer did not pay the required minimum 5 wage under section 91D.1. 6 Sec. 4. Section 91A.6, subsection 2, Code 2021, is amended 7 by striking the subsection. 8 Sec. 5. Section 91A.6, subsection 4, Code 2021, is amended 9 by striking the subsection and inserting in lieu thereof the 10 following: 11 4. a. On each regular payday, the employer shall provide 12 to each employee a statement showing the wages earned by 13 the employee, the deductions made for the employee, and the 14 following information, as applicable: 15 (1) For each employee paid in whole or in part on an hourly 16 basis, the statement shall show the hours the employee worked. 17 (2) For each employee paid based on a percentage of sales or 18 based on a percentage of revenue generated for the employer, 19 the statement shall include a list of the amount of each sale 20 or the amount of revenue during the pay period. 21 (3) For each employee whose pay is based on the number 22 of miles or loads performed, the statement shall include the 23 applicable number performed during the pay period. 24 b. The employer shall provide the statement using one of the 25 following methods: 26 (1) Sending the statement to an employee by mail. 27 (2) Providing the statement to an employee by secure 28 electronic transmission or by other secure electronic means. 29 If an employee is unable to receive the statement by this 30 method, the employee shall notify the employer in writing at 31 least one pay period in advance, and the employer shall provide 32 the statement by one of the other methods listed in this 33 paragraph “b” . 34 (3) Providing the statement to the employee at the 35 -2- LSB 1618YH (2) 89 je/rn 2/ 6
H.F. 180 employee’s normal place of employment during normal employment 1 hours. 2 (4) Providing each employee access to view a statement 3 of the employee’s earnings electronically and providing the 4 employee free and unrestricted access to a printer to print the 5 statement. 6 Sec. 6. Section 91A.8, Code 2021, is amended to read as 7 follows: 8 91A.8 Damages recoverable by an employee. 9 When it has been shown that an employer has intentionally 10 failed to pay an employee wages or reimburse expenses pursuant 11 to section 91A.3 , whether as the result of a wage dispute or 12 otherwise, the employer shall be liable to the employee for 13 any the unpaid wages or unreimbursed expenses that are so 14 intentionally failed to be paid or reimbursed , plus liquidated 15 damages, court costs , and any attorney’s attorney fees incurred 16 in recovering the unpaid wages or unreimbursed expenses 17 and determined to have been usual and necessary. In other 18 instances the employer shall be liable only for unpaid wages or 19 expenses, court costs and usual and necessary attorney’s fees 20 incurred in recovering the unpaid wages or expenses. 21 Sec. 7. Section 91A.10, subsection 5, Code 2021, is amended 22 to read as follows: 23 5. An employer shall not discharge or in any other manner 24 discriminate against any employee because the employee has 25 filed a complaint, assigned a claim, or brought an action under 26 this section or has cooperated in bringing any action against 27 an employer. 28 a. An employer or other person shall not discharge or in 29 any other manner discriminate or retaliate against any of the 30 following: 31 (1) An employee or other person for exercising any right 32 provided under this chapter or any rules adopted pursuant to 33 this chapter. 34 (2) Another employee or person for providing assistance to 35 -3- LSB 1618YH (2) 89 je/rn 3/ 6
H.F. 180 an employee or providing information regarding the employee or 1 person. 2 (3) Another employee or person for testifying or planning 3 to testify in any investigation or proceeding regarding the 4 employee or person. 5 b. Taking adverse action against an employee or other person 6 within ninety days of an employee’s or other person’s engaging 7 in any of the activities in paragraph “a” raises a presumption 8 that such action was retaliation, which may be rebutted by 9 evidence that such action was taken for other permissible 10 reasons. 11 c. Any employee may file a complaint with the commissioner 12 alleging discharge , or discrimination , or retaliation within 13 thirty days after such violation occurs. Upon receipt of the 14 complaint, the commissioner shall cause an investigation to be 15 made to the extent deemed appropriate. If the commissioner 16 determines from the investigation that the provisions of this 17 subsection have been violated, the commissioner shall bring 18 an action in the appropriate district court against such 19 person. The district court shall have jurisdiction, for cause 20 shown, to restrain violations of this subsection and order all 21 appropriate relief including rehiring or reinstatement of the 22 employee to the former position with back pay. 23 Sec. 8. Section 91A.10, Code 2021, is amended by adding the 24 following new subsection: 25 NEW SUBSECTION . 6. A civil action to enforce subsection 5 26 may also be maintained in any court of competent jurisdiction 27 by the commissioner or by any party injured by a violation 28 of subsection 5. An employer or other person who retaliates 29 against an employee or other person in violation of subsection 30 5 shall be required to pay the employee or other person 31 an amount set by the commissioner or a court sufficient to 32 compensate the employee or other person and to deter future 33 violations, but not less than one hundred fifty dollars for 34 each day that the violation occurred. 35 -4- LSB 1618YH (2) 89 je/rn 4/ 6
H.F. 180 Sec. 9. NEW SECTION . 91A.16 Commissions earned date. 1 An employer shall not require that a person be a current 2 employee to be paid a commission that the person otherwise 3 earned. 4 Sec. 10. EFFECTIVE DATE. This Act takes effect January 1, 5 2022. 6 EXPLANATION 7 The inclusion of this explanation does not constitute agreement with 8 the explanation’s substance by the members of the general assembly. 9 This bill relates to the collection of wages from employers 10 by employees under Code chapter 91A, the “Iowa Wage Payment 11 Collection Law”. 12 The bill provides that an employer has the burden to 13 establish that a deduction from employees’ wages is lawful and 14 that the employer must obtain written authorization for the 15 deduction from the employee in advance. 16 The bill removes the requirement that an employer be 17 notified by the division of labor services of the department 18 of workforce development before the employer is required to 19 fulfill requirements relating to employee wage and benefit 20 information. The bill requires an employer to notify employees 21 in writing whose wages are determined based on a task, piece, 22 mile, or load basis about the method used to calculate wages 23 and when wages are earned. The bill establishes a rebuttable 24 presumption that an employer did not pay the minimum wage if 25 the employer does not maintain proper payroll records. 26 The bill requires an employer to provide to each employee 27 a statement of the employee’s earnings, deductions made, and 28 as applicable the following: for an employee paid hourly, the 29 number of hours worked during the pay period; for an employee 30 paid on a percentage of sales or revenue generated, a list of 31 sales or amount of revenue during the pay period; and for an 32 employee paid based on the number of miles or loads performed, 33 the applicable number performed during the pay period. 34 The bill provides that when any specified violation of Code 35 -5- LSB 1618YH (2) 89 je/rn 5/ 6
H.F. 180 chapter 91A occurs, even if unintentional, an employer shall be 1 liable for unpaid wages or expenses plus liquidated damages, 2 court costs, and attorney fees incurred in recovering wages. 3 Prohibitions on retaliatory actions by employers or 4 others are expanded to cover persons other than employees who 5 act under Code chapter 91A with respect to an employee. A 6 90-day period is established during which any action against 7 an employee or other person is rebuttably presumed to be 8 retaliatory. The bill allows the labor commissioner or any 9 injured party to maintain a civil action in any court of proper 10 jurisdiction. An employer who retaliates against an employee 11 or other person shall compensate the injured party an amount 12 set by the labor commissioner or the court, but not less than 13 $150 for each day of the violation. 14 The bill prohibits an employer from requiring that 15 an individual be a current employee to be paid an earned 16 commission. 17 An employer who violates Code chapter 91A is subject to a 18 civil penalty of not more than $500 per pay period for each 19 violation. 20 The bill takes effect January 1, 2022. 21 -6- LSB 1618YH (2) 89 je/rn 6/ 6