SF 502 (LSB 1523XS (2) 91)

SENATE FILE 502

BY  PETERSEN

A BILL FOR

An Act requiring certain employers to include pay scale information in communications offering employment, and providing penalties.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  Section 10A.202, subsection 2, Code 2025, is amended to read as follows:
   2.  The department is responsible for the administration of the laws of this state under chapters 88A, 88B, 89, 89A, 90A, 91A, 91C, 91D, 91E, 91F, and 92, and such other labor-services duties assigned to the department or director.
    Sec. 2.  Section 10A.204, subsection 3, Code 2025, is amended to read as follows:
   3.  The director, in consultation with the labor commissioner, shall, at the time provided by law, make an annual report to the governor setting forth in appropriate form the business and expense of the division and department under this subchapter for the preceding year, the number of remedial actions taken under chapter 89A, the number of disputes or violations processed by the division or department and the disposition of the disputes or violations, and other matters pertaining to the division or department under this subchapter which that are of public interest, together with recommendations for change or amendment of the laws in this chapter and chapters 88, 88A, 88B, 89, 89A, 89B, 90A, 91A, 91C, 91D, 91E, 91F, and 92, and sections 85.67A and 85.68, and the recommendations, if any, shall be transmitted by the governor to the first general assembly in session after the report is filed.
    Sec. 3.  NEW SECTION.  91F.1  Definitions.
   As used in this chapter, unless the context otherwise requires:
   1.  “Director” means the director of the department of inspections, appeals, and licensing.
   2.  “Employee” means a natural person employed by an employer.
   3.  “Employer” means a person that employs fifteen or more employees for wages.
   4.  “Pay scale” means the salary or hourly wage range that the employer reasonably expects to pay for the position.
   5.  “Position” includes any position that may be filled in this state by an employee, whether by in-person or remote employment.
    Sec. 4.  NEW SECTION.  91F.2  Job posting —— required salary information.
   1.  An employer that announces, posts, publishes, or otherwise makes known an advertisement, solicitation, or other communication offering employment or seeking applicants for employment shall include in the communication the pay scale for each position for which employment is offered or for which applicants are sought. The pay scale must be included in the communication itself; a reference to another location where the pay scale can be found is not sufficient.
   2.  An employer that engages a third party to announce, post, publish, or otherwise make known an advertisement, solicitation, or other communication offering employment or seeking applicants for employment shall comply with subsection 1 in such communication or require that the third party do so.
    Sec. 5.  NEW SECTION.  91F.3  Civil penalty —— procedures.
   1.  An employer that violates this chapter shall be subject to a civil penalty of no less than one hundred dollars and no more than ten thousand dollars per violation.
   2.  The director shall provide written notice to an employer prior to imposition of a civil penalty under this section. An employer may contest and seek judicial review of a determination of the director under this chapter pursuant to chapter 17A.
   3.  Upon a final determination of the director that an employer violated this chapter and the conclusion of the period for any appeals, the director shall bring an action in district court to collect the penalties provided in this section. The director shall remit any penalties collected to the treasurer of state for deposit in the general fund.
    Sec. 6.  NEW SECTION.  91F.4  Enforcement —— rules.
   1.  The director shall enforce this chapter.
   2.  The director shall adopt rules pursuant to chapter 17A to administer this chapter.
EXPLANATION
The inclusion of this explanation does not constitute agreement with
the explanation’s substance by the members of the general assembly.
   This bill requires an employer that employs 15 or more employees and that announces, posts, publishes, or otherwise makes known an advertisement, solicitation, or other communication offering employment or seeking applicants for employment to include in the communication the pay scale for each position for which employment is offered or for which applicants are sought. The pay scale must be included in the communication itself; a reference to another location where the pay scale can be found is not sufficient.
   The bill requires an employer that employs 15 or more employees and that engages a third party to announce, post, publish, or otherwise make known an advertisement, solicitation, or other communication offering employment or seeking applicants for employment to comply with the bill in such communication or require the third party to do so.
   The bill defines “pay scale” as the salary or hourly wage range that the employer reasonably expects to pay for the position. The bill defines “position” to include any position that may be filled in Iowa by an employee, whether by in-person or remote employment.
   The bill is enforced by the director of the department of inspections, appeals, and licensing. An employer that violates the bill shall be subject to a civil penalty of no less than $100 and no more than $10,000 per violation. The bill provides procedures for collection of such penalties.