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