This bill amends the Iowa Wage Payment Collection Law (Code chapter 91A) to enhance protections for employees regarding wage deductions and payment practices. It establishes that employers bear the burden of proving that any deductions from employee wages are lawful and mandates that they obtain written authorization from employees prior to making such deductions. The bill also requires employers to provide detailed wage statements to employees, including information on hours worked or sales made, and introduces a rebuttable presumption that an employer has not paid the minimum wage if they fail to maintain proper payroll records. Additionally, it expands the definition of retaliatory actions against employees and others who assist them, creating a presumption of retaliation for adverse actions taken within 90 days of such activities.

Furthermore, the bill modifies the enforcement mechanisms for wage violations, making it mandatory for the director of the department of inspections, appeals, and licensing to investigate complaints and increasing the time frame for filing complaints from one year to three years. It also introduces provisions for inadvertent violations, allowing employers to avoid penalties if they can demonstrate good faith efforts to comply with the law. The bill stipulates that employers cannot require individuals to be current employees to receive earned commissions and ensures that no provision conflicts with federal law. Civil penalties for violations are set at a maximum of $500 per pay period, and the bill is set to take effect on January 1, 2026, with a requirement for the director to notify employers of the new regulations by September 1, 2025.

Statutes affected:
Introduced: 91A.5, 91A.6, 91A.8, 91A.3, 91A.10