Complete Bill History



Senate File 311      



                                    SENATE FILE       
                                    BY  COMMITTEE ON LABOR AND
                                        BUSINESS RELATIONS

                                    (SUCCESSOR TO SF 116)

                                         A BILL FOR

     1 An Act relating to wage payment collection issues arising
     2    between employers and individuals who provide services to
     3    employers, providing penalties and remedies, and including
     4    effective date provisions.
     5 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
       TLSB 1956SV (4) 84
       je/rj

PAG LIN



  1  1    Section 1.  Section 91A.5, subsection 1, unnumbered
  1  2 paragraph 1, Code 2011, is amended to read as follows:
  1  3    An employer shall have the burden to establish that a
  1  4 deduction from employee wages is lawful.  An employer shall not
  1  5 withhold or divert any portion of an employee's wages unless:
  1  6    Sec. 2.  Section 91A.5, subsection 1, paragraph b, Code 2011,
  1  7 is amended to read as follows:
  1  8    b.  The employer has obtains advance written authorization
  1  9 from the employee to so deduct for any lawful purpose accruing
  1 10 to the benefit of the employee.
  1 11    Sec. 3.  Section 91A.6, subsection 1, Code 2011, is amended
  1 12 to read as follows:
  1 13    1.  An employer shall after being notified by the
  1 14 commissioner pursuant to subsection 2 do the following:
  1 15    a.  Notify its employees in writing at the time of hiring
  1 16 what wages and regular paydays are designated by the employer.
  1 17    b.  Notify its employees in writing whose wages are
  1 18 determined based on a task, piece, mile, or load basis about
  1 19 the method used to calculate wages and when the wages are
  1 20 earned by the employees.
  1 21    b.  c.  Notify, at least one pay period prior to the
  1 22 initiation of any changes, its employees of any changes in
  1 23 the arrangements specified in this subsection 1 that reduce
  1 24 wages or alter the regular paydays. The notice shall either
  1 25 be in writing or posted at a place where employee notices are
  1 26 routinely posted.
  1 27    c.  d.  Make available to its employees upon written request,
  1 28 a written statement enumerating employment agreements and
  1 29 policies with regard to vacation pay, sick leave, reimbursement
  1 30 for expenses, retirement benefits, severance pay, or other
  1 31 comparable matters with respect to wages. Notice of such
  1 32 availability shall be given to each employee in writing or by a
  1 33 notice posted at a place where employee notices are routinely
  1 34 posted.
  1 35    d.  e.  Establish, maintain, and preserve for three
  2  1 calendar years the payroll records showing the hours worked,
  2  2 wages earned, and deductions made for each employee and
  2  3 any employment agreements entered into between an employer
  2  4 and employee.  Failure to do so shall raise a rebuttable
  2  5 presumption that the employer did not pay the required minimum
  2  6 wage under section 91D.1.
  2  7    Sec. 4.  Section 91A.6, subsection 2, Code 2011, is amended
  2  8 by striking the subsection.
  2  9    Sec. 5.  Section 91A.6, subsection 4, Code 2011, is amended
  2 10 by striking the subsection and inserting in lieu thereof the
  2 11 following:
  2 12    4.  a.  On each regular payday, the employer shall send to
  2 13 each employee by mail or shall provide at the employee's normal
  2 14 place of employment during normal employment hours a statement
  2 15 showing the wages earned by the employee, the deductions made
  2 16 for the employee, and the following information, as applicable:
  2 17    (1)  For each employee paid in whole or in part on an hourly
  2 18 basis, the statement shall show the hours the employee worked.
  2 19    (2)  For each employee paid based on a percentage of sales or
  2 20 based on a percentage of revenue generated for the employer,
  2 21 the statement shall include a list of the amount of each sale
  2 22 or the amount of revenue during the pay period.
  2 23    (3)  For each employee whose pay is based on the number
  2 24 of miles or loads performed, the statement shall include the
  2 25 applicable number performed during the pay period.
  2 26    b.  An employer who provides each employee access to view an
  2 27 electronic statement of the employee's earnings and provides
  2 28 the employee free and unrestricted access to a printer to print
  2 29 the employee's statement of earnings, if the employee chooses,
  2 30 is in compliance with this subsection.
  2 31    Sec. 6.  Section 91A.8, Code 2011, is amended to read as
  2 32 follows:
  2 33    91A.8  Damages recoverable by an employee.
  2 34    When it has been shown that an employer has intentionally
  2 35  failed to pay an employee wages or reimburse expenses pursuant
  3  1 to section 91A.3, whether as the result of a wage dispute or
  3  2 otherwise, the employer shall be liable to the employee for any
  3  3  the unpaid wages or expenses that are so intentionally failed
  3  4 to be paid or reimbursed, plus liquidated damages, court costs,
  3  5  and any attorney's attorney fees incurred in recovering the
  3  6 unpaid wages and determined to have been usual and necessary.
  3  7 In other instances the employer shall be liable only for
  3  8 unpaid wages or expenses, court costs and usual and necessary
  3  9 attorney's fees incurred in recovering the unpaid wages or
  3 10 expenses.
  3 11    Sec. 7.  Section 91A.10, subsection 5, Code 2011, is amended
  3 12 to read as follows:
  3 13    5.  An employer shall not discharge or in any other manner
  3 14 discriminate against any employee because the employee has
  3 15 filed a complaint, assigned a claim, or brought an action under
  3 16 this section or has cooperated in bringing any action against
  3 17 an employer.
  3 18    5.  a.  An employer or other person shall not discharge or
  3 19 in any other manner discriminate or retaliate against any of
  3 20 the following:
  3 21    (1)  An employee or other person for exercising any right
  3 22 provided under this chapter or any rules adopted pursuant to
  3 23 this chapter.
  3 24    (2)  Another employee or person for providing assistance to
  3 25 an employee or providing information regarding the employee or
  3 26 person.
  3 27    (3)  Another employee or person for testifying or planning
  3 28 to testify in any investigation or proceeding regarding the
  3 29 employee or person.
  3 30    b.  Taking adverse action against an employee or other person
  3 31 within ninety days of an employee's or other person's engaging
  3 32 in any of the activities in paragraph "a" raises a presumption
  3 33 that such action was retaliation, which may be rebutted by
  3 34 evidence that such action was taken for other permissible
  3 35 reasons.
  4  1    c.  Any employee may file a complaint with the commissioner
  4  2 alleging discharge, or discrimination, or retaliation within
  4  3 thirty days after such violation occurs. Upon receipt of the
  4  4 complaint, the commissioner shall cause an investigation to be
  4  5 made to the extent deemed appropriate. If the commissioner
  4  6 determines from the investigation that the provisions of this
  4  7 subsection have been violated, the commissioner shall bring
  4  8 an action in the appropriate district court against such
  4  9 person. The district court shall have jurisdiction, for cause
  4 10 shown, to restrain violations of this subsection and order all
  4 11 appropriate relief including rehiring or reinstatement of the
  4 12 employee to the former position with back pay.
  4 13    Sec. 8.  Section 91A.10, Code 2011, is amended by adding the
  4 14 following new subsection:
  4 15    NEW SUBSECTION.  6.  A civil action to enforce subsection 5
  4 16 may also be maintained in any court of competent jurisdiction
  4 17 by the commissioner or by any party injured by a violation
  4 18 of subsection 5.  An employer or other person who retaliates
  4 19 against an employee or other person in violation of subsection
  4 20 5 shall be required to pay the employee or other person
  4 21 an amount set by the commissioner or a court sufficient to
  4 22 compensate the employee or other person and to deter future
  4 23 violations, but not less than one hundred fifty dollars for
  4 24 each day that the violation occurred.
  4 25    Sec. 9.  NEW SECTION.  91A.15  Commissions earned date.
  4 26    An employer shall not require that a person be a current
  4 27 employee to be paid a commission that the person otherwise
  4 28 earned.
  4 29    Sec. 10.  EFFECTIVE DATE.  This Act takes effect January 1,
  4 30 2012.
  4 31                           EXPLANATION
  4 32    This bill relates to employers and individuals who perform
  4 33 labor and wage payment collection.
  4 34    Code section 91A.5 is amended to provide that the employer
  4 35 has the burden to establish that a deduction from employees'
  5  1 wages is lawful and must obtain written authorization for the
  5  2 deduction from the employee in advance.
  5  3    Code section 91A.6(1) is amended to remove the requirement
  5  4 that an employer be notified by the division of labor services
  5  5 of the department of workforce development before the employer
  5  6 is required to fulfill the requirements in subsection 1
  5  7 relating to employee wage and benefit information.  In Code
  5  8 section 91A.6(1)(b), the employer must notify employees in
  5  9 writing whose wages are determined based on a task, piece,
  5 10 mile, or load basis about the method to calculate wages, when
  5 11 wages are earned.  Code section 91A.6(1)(e) is amended to
  5 12 establish a rebuttable presumption that an employer did not
  5 13 pay the minimum wage if the employer does not maintain proper
  5 14 payroll records.
  5 15    Current Code section 91A.6(2), setting out certain employer
  5 16 compliance procedures, is stricken.
  5 17    Code section 91A.6(4) is amended so that the employer
  5 18 must send to each employee by mail, or at the place of
  5 19 business during the employee's working hours a statement of
  5 20 the employee's earnings, deductions made, and as applicable
  5 21 the following:  for an employee paid hourly, the number of
  5 22 hours worked during the pay period; for an employee paid on a
  5 23 percentage of sales or revenue generated, a list of sales or
  5 24 amount of revenue during the pay period; and for an employee
  5 25 paid based on the number of miles or loads performed, the
  5 26 applicable number performed during the pay period.  An employer
  5 27 who provides an electronic statement and gives employees free
  5 28 and unrestricted access to the statement is in compliance with
  5 29 the Code section.
  5 30    In Code section 91A.8, when any specified violation of Code
  5 31 chapter 91A occurs, an employer shall be liable for unpaid
  5 32 wages or expenses plus liquidated damages, court costs, and
  5 33 attorney fees incurred in recovering wages.
  5 34    Code section 91A.10(5), which is the subsection covering
  5 35 retaliatory actions by employers or others, is expanded
  6  1 to cover persons other than employees who act under Code
  6  2 chapter 91A with respect to an employee.  A 90=day period is
  6  3 established during which any action against an employee or
  6  4 other person is rebuttably presumed to be retaliatory.  New
  6  5 subsection 6 is created in Code section 91A.10 to allow the
  6  6 commissioner or any injured party to maintain a civil action in
  6  7 any court of proper jurisdiction.  An employer who retaliates
  6  8 against an employee or other person shall compensate the
  6  9 injured party an amount set by the commissioner or the court,
  6 10 but not less than $150 for each day of the violation.
  6 11    In new Code section 91A.15, an employer shall not require
  6 12 that an individual be a current employee to be paid an earned
  6 13 commission.
  6 14    The bill takes effect January 1, 2012.