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 requires them to obtain written authorization from employees in advance for such deductions. The bill also mandates that employers provide detailed written notifications to employees about their wages, including methods of calculation and pay periods. Additionally, it creates a rebuttable presumption that an employer has not paid the minimum wage if they fail to maintain proper payroll records.

Furthermore, the bill expands the director's authority to enforce wage payment laws by requiring them to employ wage investigators and mandating that they determine whether unpaid wages constitute an enforceable claim upon receiving a written complaint from an employee. It increases the time frame for filing complaints from one year to three years and broadens protections against retaliation for employees and others who assist in wage-related matters. The bill also introduces provisions for civil penalties against employers for violations and outlines conditions under which employers may avoid penalties for inadvertent violations. It prohibits employers from requiring individuals to be current employees to receive earned commissions and ensures that no provision conflicts with federal law. The bill is set to take effect on January 1, 2027, with a requirement for the director to notify employers of the new regulations by September 1, 2026.

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