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House File 39 - IntroducedA Bill ForAn Act 1relating to the regulation of employment agencies and
2employers and making penalties applicable.
3BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1 Section 1. NEW SECTION. 94A.3A Employee notice.
21. An employment agency shall provide to each employee
3referred for employment notice of the following:
4a. The name, address, electronic mail address, and telephone
5number of the following:
6(1) The employment agency, or the contact information of the
7employee of the employment agency facilitating the placement.
8(2) The employment agency’s workers’ compensation carrier.
9(3) The employer.
10(4) The commissioner.
11b. A description of the position and whether it will require
12any special clothing, equipment, training, or licenses, and
13any costs that will be charged to the employee for supplies or
14training.
15c. The designated payday, the hourly rate of pay, and
16whether overtime may occur and be paid.
17d. The daily starting time and anticipated end time and, if
18known, the expected duration of employment.
19e. Whether any meals will be provided by the employment
20agency or employer and the charge for such meals, if any, to
21the employee.
22f. Details of the means of transportation to the work
23site and any fees that will be charged to the employee by the
24employment agency or employer for any transportation services.
252. An employment agency shall confirm the information in
26the notice required by subsection 1 in writing and send a
27copy thereof to the employee, by a method designated by the
28employee, before the end of the employee’s first pay period.
29However, an employment agency shall send any change in the
30initial terms of employment to the employee immediately.
313. The employment agency shall post in a conspicuous place
32in each of the locations where it does business a notice
33of the requirements of this section and the name, internet
34site address, and telephone number of the commissioner. The
35commissioner shall prepare and publish on the commissioner’s
-1-1internet site a sample notice for use by employers that meets
2the requirements of this section and, upon request, shall
3facilitate the translation of the notice into a language other
4than English.
54. This section shall not be construed to prohibit an
6employment agency from directing an employee to employment by
7telephone. However, the employment agency shall provide the
8information required by subsection 1 by telephone at the same
9time.
105. This section does not apply to a professional employee,
11as defined in 29 U.S.C. §152, or to an employee who is a
12secretary or administrative assistant whose main or primary
13duties are described by the United States department of labor,
14bureau of labor statistics, as involving one or more of the
15following:
16a. Drafting or revising correspondence.
17b. Scheduling appointments.
18c. Creating, organizing, and maintaining paper and
19electronic files.
20d. Providing information to callers or visitors.
21 Sec. 2. NEW SECTION. 94A.3B Transportation services.
22If an employment agency or employer or a person acting
23directly or indirectly in the interest of either offers
24transportation services to or from a designated work site
25to an employee and charges a fee for such services, the
26employment agency or employer shall charge such employee not
27more than the actual cost to transport such employee to or
28from the designated work site. Such fee shall not exceed
29three percent of such employee’s total daily wages and shall
30not reduce the employee’s total daily wages below the minimum
31wage earned for the day. If an employment agency or employer
32or a person acting directly or indirectly in the interest
33of either requires the use of transportation services by an
34employee, a fee shall not be charged to the employee for
35transportation services. If an employment agency or employer
-2-1provides transportation services to a designated work site
2to an employee on a day when employment is not available,
3the employment agency or employer shall fully refund any fee
4charged to the employee for the transportation services.
5 Sec. 3. Section 94A.4, subsection 4, Code 2021, is amended
6by adding the following new paragraphs:
7 NEW PARAGRAPH. g. Refer an employee for employment by force
8or fraud, for illegal purposes, or where the employment is in
9violation of state or federal law.
10 NEW PARAGRAPH. h. Refer an employee for employment at any
11location that is on strike or lockout without first notifying
12the employee of such fact.
13 Sec. 4. Section 94A.4, Code 2021, is amended by adding the
14following new subsections:
15 NEW SUBSECTION. 5. An employment agency or employer shall
16not charge or accept a fee from an employee for the following:
17a. Any good or service unless under the terms of a written
18contract with the employee, which clearly states in a language
19the employee can understand that the purchase is voluntary and
20which provides that the employment agency or employer will not
21gain a profit from any cost or fee charged to the employee.
22b. The provision of a bank card, debit card, payroll card,
23voucher, draft, money order, or similar form of payment or
24wages that exceeds the actual cost per employee.
25c. Any drug test.
26d. Any criminal history background check.
27e. Transportation, except as provided in section 94A.3B.
28f. Any good or service the payment for which would cause the
29employee to earn less than the applicable minimum wage.
30 NEW SUBSECTION. 6. An employment agency or employer or
31a person acting directly or indirectly in the interest of
32either shall not deduct any costs or fees from the wages of
33an employee without the express written authorization of the
34employee. An employment agency or employer shall furnish to
35the employee a copy of the signed authorization in a language
-3-1the employee can understand.
2 NEW SUBSECTION. 7. An employment agency or employer shall
3not refuse to return on demand any personal property belonging
4to an employee or any fee or cost that is charged to the
5employee or accepted by the employment agency or employer in
6excess of the amounts allowable under this chapter.
7EXPLANATION
8The inclusion of this explanation does not constitute agreement with
9the explanation’s substance by the members of the general assembly.
10This bill makes various modifications relating to regulation
11of employment agencies in this state by the labor commissioner.
12“Employment agency” is defined under current law as a person
13who brings together those desiring to employ and those
14desiring employment and who receives a fee, privilege, or other
15consideration directly or indirectly from an employee for the
16service.
17The bill requires an employment agency to provide to each
18employee referred for employment notice of certain information
19relating to the employment. The required information must be
20confirmed in writing and sent to the employee before the end
21of the employee’s first pay period by an employment agency,
22but any change to the initial terms of employment must be sent
23immediately.
24The bill requires an employment agency to post in each of the
25locations where it does business notice of the requirements of
26the bill and contact information for the labor commissioner.
27The bill requires the labor commissioner to prepare a sample
28notice for use by employers.
29The notice requirements do not prohibit an employment agency
30from directing an employee to employment by telephone, if the
31employment agency also provides the required notification at
32the same time. The notification requirements do not apply to
33a professional employee as defined in federal law or to an
34employee who is a secretary or administrative assistant who has
35certain specified duties.
-4- 1The bill places certain specified limitations on the fees
2an employment agency or employer can charge an employee for
3transportation services to or from a designated work site.
4The bill prohibits an employment agency from referring
5an employee for employment by force or fraud, for illegal
6purposes, or where the employment is in violation of state or
7federal law. The bill prohibits an employment agency from
8referring an employee for employment at any location that is
9on strike or lockout without first notifying the employee of
10such fact.
11The bill prohibits an employment agency or employer from
12charging or accepting a fee from an employee for any good or
13service unless under the terms of a written contract with the
14employee; the provision of a bank card, debit card, or similar
15form of payment or wages that exceeds the actual cost per
16employee; any drug test; any criminal history background check;
17transportation, except as provided in the bill; or any good or
18service the payment for which would cause the employee to earn
19less than the applicable minimum wage.
20The bill prohibits an employment agency or employer from
21deducting any costs or fees from the wages of an employee
22without the express written authorization of the employee.
23The bill prohibits an employment agency or employer from
24refusing to return on demand any personal property belonging to
25an employee or any fee or cost that is charged to the employee
26or accepted by the employment agency or employer in excess of
27the amounts allowable under Code chapter 94A.
28A violation of Code chapter 94A is a simple misdemeanor and
29is also cause for a civil penalty in an amount up to $2,000.
30A simple misdemeanor is punishable by confinement for no more
31than 30 days or a fine of at least $65 but not more than $625
32or by both.
-5-je/rn
2employers and making penalties applicable.
3BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1 Section 1. NEW SECTION. 94A.3A Employee notice.
21. An employment agency shall provide to each employee
3referred for employment notice of the following:
4a. The name, address, electronic mail address, and telephone
5number of the following:
6(1) The employment agency, or the contact information of the
7employee of the employment agency facilitating the placement.
8(2) The employment agency’s workers’ compensation carrier.
9(3) The employer.
10(4) The commissioner.
11b. A description of the position and whether it will require
12any special clothing, equipment, training, or licenses, and
13any costs that will be charged to the employee for supplies or
14training.
15c. The designated payday, the hourly rate of pay, and
16whether overtime may occur and be paid.
17d. The daily starting time and anticipated end time and, if
18known, the expected duration of employment.
19e. Whether any meals will be provided by the employment
20agency or employer and the charge for such meals, if any, to
21the employee.
22f. Details of the means of transportation to the work
23site and any fees that will be charged to the employee by the
24employment agency or employer for any transportation services.
252. An employment agency shall confirm the information in
26the notice required by subsection 1 in writing and send a
27copy thereof to the employee, by a method designated by the
28employee, before the end of the employee’s first pay period.
29However, an employment agency shall send any change in the
30initial terms of employment to the employee immediately.
313. The employment agency shall post in a conspicuous place
32in each of the locations where it does business a notice
33of the requirements of this section and the name, internet
34site address, and telephone number of the commissioner. The
35commissioner shall prepare and publish on the commissioner’s
-1-1internet site a sample notice for use by employers that meets
2the requirements of this section and, upon request, shall
3facilitate the translation of the notice into a language other
4than English.
54. This section shall not be construed to prohibit an
6employment agency from directing an employee to employment by
7telephone. However, the employment agency shall provide the
8information required by subsection 1 by telephone at the same
9time.
105. This section does not apply to a professional employee,
11as defined in 29 U.S.C. §152, or to an employee who is a
12secretary or administrative assistant whose main or primary
13duties are described by the United States department of labor,
14bureau of labor statistics, as involving one or more of the
15following:
16a. Drafting or revising correspondence.
17b. Scheduling appointments.
18c. Creating, organizing, and maintaining paper and
19electronic files.
20d. Providing information to callers or visitors.
21 Sec. 2. NEW SECTION. 94A.3B Transportation services.
22If an employment agency or employer or a person acting
23directly or indirectly in the interest of either offers
24transportation services to or from a designated work site
25to an employee and charges a fee for such services, the
26employment agency or employer shall charge such employee not
27more than the actual cost to transport such employee to or
28from the designated work site. Such fee shall not exceed
29three percent of such employee’s total daily wages and shall
30not reduce the employee’s total daily wages below the minimum
31wage earned for the day. If an employment agency or employer
32or a person acting directly or indirectly in the interest
33of either requires the use of transportation services by an
34employee, a fee shall not be charged to the employee for
35transportation services. If an employment agency or employer
-2-1provides transportation services to a designated work site
2to an employee on a day when employment is not available,
3the employment agency or employer shall fully refund any fee
4charged to the employee for the transportation services.
5 Sec. 3. Section 94A.4, subsection 4, Code 2021, is amended
6by adding the following new paragraphs:
7 NEW PARAGRAPH. g. Refer an employee for employment by force
8or fraud, for illegal purposes, or where the employment is in
9violation of state or federal law.
10 NEW PARAGRAPH. h. Refer an employee for employment at any
11location that is on strike or lockout without first notifying
12the employee of such fact.
13 Sec. 4. Section 94A.4, Code 2021, is amended by adding the
14following new subsections:
15 NEW SUBSECTION. 5. An employment agency or employer shall
16not charge or accept a fee from an employee for the following:
17a. Any good or service unless under the terms of a written
18contract with the employee, which clearly states in a language
19the employee can understand that the purchase is voluntary and
20which provides that the employment agency or employer will not
21gain a profit from any cost or fee charged to the employee.
22b. The provision of a bank card, debit card, payroll card,
23voucher, draft, money order, or similar form of payment or
24wages that exceeds the actual cost per employee.
25c. Any drug test.
26d. Any criminal history background check.
27e. Transportation, except as provided in section 94A.3B.
28f. Any good or service the payment for which would cause the
29employee to earn less than the applicable minimum wage.
30 NEW SUBSECTION. 6. An employment agency or employer or
31a person acting directly or indirectly in the interest of
32either shall not deduct any costs or fees from the wages of
33an employee without the express written authorization of the
34employee. An employment agency or employer shall furnish to
35the employee a copy of the signed authorization in a language
-3-1the employee can understand.
2 NEW SUBSECTION. 7. An employment agency or employer shall
3not refuse to return on demand any personal property belonging
4to an employee or any fee or cost that is charged to the
5employee or accepted by the employment agency or employer in
6excess of the amounts allowable under this chapter.
7EXPLANATION
8The inclusion of this explanation does not constitute agreement with
9the explanation’s substance by the members of the general assembly.
10This bill makes various modifications relating to regulation
11of employment agencies in this state by the labor commissioner.
12“Employment agency” is defined under current law as a person
13who brings together those desiring to employ and those
14desiring employment and who receives a fee, privilege, or other
15consideration directly or indirectly from an employee for the
16service.
17The bill requires an employment agency to provide to each
18employee referred for employment notice of certain information
19relating to the employment. The required information must be
20confirmed in writing and sent to the employee before the end
21of the employee’s first pay period by an employment agency,
22but any change to the initial terms of employment must be sent
23immediately.
24The bill requires an employment agency to post in each of the
25locations where it does business notice of the requirements of
26the bill and contact information for the labor commissioner.
27The bill requires the labor commissioner to prepare a sample
28notice for use by employers.
29The notice requirements do not prohibit an employment agency
30from directing an employee to employment by telephone, if the
31employment agency also provides the required notification at
32the same time. The notification requirements do not apply to
33a professional employee as defined in federal law or to an
34employee who is a secretary or administrative assistant who has
35certain specified duties.
-4- 1The bill places certain specified limitations on the fees
2an employment agency or employer can charge an employee for
3transportation services to or from a designated work site.
4The bill prohibits an employment agency from referring
5an employee for employment by force or fraud, for illegal
6purposes, or where the employment is in violation of state or
7federal law. The bill prohibits an employment agency from
8referring an employee for employment at any location that is
9on strike or lockout without first notifying the employee of
10such fact.
11The bill prohibits an employment agency or employer from
12charging or accepting a fee from an employee for any good or
13service unless under the terms of a written contract with the
14employee; the provision of a bank card, debit card, or similar
15form of payment or wages that exceeds the actual cost per
16employee; any drug test; any criminal history background check;
17transportation, except as provided in the bill; or any good or
18service the payment for which would cause the employee to earn
19less than the applicable minimum wage.
20The bill prohibits an employment agency or employer from
21deducting any costs or fees from the wages of an employee
22without the express written authorization of the employee.
23The bill prohibits an employment agency or employer from
24refusing to return on demand any personal property belonging to
25an employee or any fee or cost that is charged to the employee
26or accepted by the employment agency or employer in excess of
27the amounts allowable under Code chapter 94A.
28A violation of Code chapter 94A is a simple misdemeanor and
29is also cause for a civil penalty in an amount up to $2,000.
30A simple misdemeanor is punishable by confinement for no more
31than 30 days or a fine of at least $65 but not more than $625
32or by both.
-5-je/rn