91A.1 SHORT TITLE.
This chapter shall be known and may be referred to as the "Iowa
Wage Payment Collection Law". Section History: Early Fo
[C77, 79, 81, § 91A.1]
91A.2 DEFINITIONS.
As used in this chapter:
1. "Commissioner" means the labor commissioner or a designee.
2. "Days" means calendar days.
3. "Employee" means a natural person who is employed in this
state for wages by an employer. Employee also includes a commission
salesperson who takes orders or performs services on behalf of a
principal and who is paid on the basis of commissions but does not
include persons who purchase for their own account for resale. For
the purposes of this chapter, the following persons engaged in
agriculture are not employees:
a. The spouse of the employer and relatives of either the
employer or spouse residing on the premises of the employer.
b. A person engaged in agriculture as an owner-operator or
tenant-operator and the spouse or relatives of either who reside on
the premises while exchanging labor with the operator or for other
mutual benefit of any and all such persons.
c. Neighboring persons engaged in agriculture who are
exchanging labor or other services.
4. "Employer" means a person, as defined in chapter 4, who in
this state employs for wages a natural person. An employer does not
include a client, patient, customer, or other person who obtains
professional services from a licensed person who provides the
services on a fee service basis or as an independent contractor.
5. "Health benefit plan" means a plan or agreement provided
by an employer for employees for the provision of or payment for care
and treatment of sickness or injury.
6. "Liquidated damages" means the sum of five percent
multiplied by the amount of any wages that were not paid or of any
authorized expenses that were not reimbursed on a regular payday or
on another day pursuant to section 91A.3 multiplied by the total
number of days, excluding Sundays, legal holidays, and the first
seven days after the regular payday on which wages were not paid or
expenses were not reimbursed. However, such sum shall not exceed the
amount of the unpaid wages and shall not accumulate when an employer
is subject to a petition filed in bankruptcy.
7. "Wages" means compensation owed by an employer for:
a. Labor or services rendered by an employee, whether
determined on a time, task, piece, commission, or other basis of
calculation.
b. Vacation, holiday, sick leave, and severance payments
which are due an employee under an agreement with the employer or
under a policy of the employer.
c. Any payments to the employee or to a fund for the benefit
of the employee, including but not limited to payments for medical,
health, hospital, welfare, pension, or profit-sharing, which are due
an employee under an agreement with the employer or under a policy of
the employer. The assets of an employee in a fund for the benefit of
the employee, whether such assets were originally paid into the fund
by an employer or employee, are not wages.
d. Expenses incurred and recoverable under a health benefit
plan. Section History: Early Form
[C77, 79, 81, § 91A.2] Section History: Recent Form
84 Acts, ch 1129, § 2; 84 Acts, ch 1270, § 1; 85 Acts, ch 119, §1;
86 Acts, ch 1124, § 6, 7
Referred to in § 91B.1, 91B.2, 91E.1, 626.69
91A.3 MODE OF PAYMENT.
1. An employer shall pay all wages due its employees, less any
lawful deductions specified in section 91A.5, at least in monthly,
semimonthly, or biweekly installments on regular paydays which are at
consistent intervals from each other and which are designated in
advance by the employer. However, if any of these wages due its
employees are determined on a commission basis, the employer may,
upon agreement with the employee, pay only a credit against such
wages. If such credit is paid, the employer shall, at regular
intervals, pay any difference between a credit paid against wages
determined on a commission basis and such wages actually earned on a
commission basis. These regular intervals shall not be separated by
more than twelve months. A regular payday shall not be more than
twelve days, excluding Sundays and legal holidays, after the end of
the period in which the wages were earned. An employer and employee
may, upon written agreement which shall be maintained as a record,
vary the provisions of this subsection.
2. The wages paid under subsection 1 shall be paid in United
States currency or by written instrument issued by the employer and
negotiable on demand at full face value for such currency, unless the
employee has agreed in writing to receive a part of or all wages in
kind or in other form.
3. a. The wages paid under subsection 1 shall be paid at the
employee's normal place of employment during normal employment hours
or at a place and hour mutually agreed upon by the employer and
employee, or the employee may elect to have the wages sent for direct
deposit, on or by the regular payday of the employee, into a
financial institution designated by the employee. Upon written
request by the employee, wages due may be sent to the employee by
mail. The employer shall maintain a copy of the request for as long
as it is effective and for at least two years thereafter. An
employee hired on or after July 1, 2005, may be required, as a
condition of employment, to participate in direct deposit of the
employee's wages in a financial institution of the employee's choice
unless any of the following conditions exist:
(1) The costs to the employee of establishing and maintaining an
account for purposes of the direct deposit would effectively reduce
the employee's wages to a level below the minimum wage provided under
section 91D.1.
(2) The employee would incur fees charged to the employee's
account as a result of the direct deposit.
(3) The provisions of a collective bargaining agreement mutually
agreed upon by the employer and the employee organization prohibit
the employer from requiring an employee to sign up for direct deposit
as a condition of hire.
b. If the employer fails to pay an employee's wages on or by
the regular payday in accordance with this subsection, the employer
is liable for the amount of any overdraft charge if the overdraft is
created on the employee's account because of the employer's failure
to pay the wages on or by the regular payday. The overdraft charges
may be the basis for a claim under section 91A.10 and for damages
under section 91A.8.
4. The wages paid under subsection 1 may be delivered to a
designee of the employee who is so designated in writing or may be
sent to the employee by any reasonable means requested by the
employee in writing. A designee under this subsection shall not also
be an assignee or buyer of wages under section 539.4 nor a garnisher
of the employee under chapter 642, unless the designee complies with
the provisions of section 539.4 and chapter 642.
5. If an employee is absent from the normal place of employment
on the regular payday, the employer shall, upon demand of the
employee made within the first seven days following the regular
payday, pay the wages, less any lawful deductions specified in
section 91A.5, which were due on that regular payday. However, if
demand is not made within this seven-day period, the employer shall,
upon demand of the employee, pay the wages which were due on a
regular payday within the first seven days following the day on which
demand is made.
6. Expenses by the employee which are authorized by the employer
and incurred by the employee shall either be reimbursed in advance of
expenditure or be reimbursed not later than thirty days after the
employee's submission of an expense claim. If the employer refuses
to pay all or part of each claim, the employer shall submit to the
employee a written justification of such refusal within the same time
period in which expense claims are paid under this subsection.
7. If a farm labor contractor contracts with a person engaged in
the production of seed or feed grains to remove unwanted or
genetically deviant plants or corn tassels or to hand pollinate
plants, and fails to pay all wages due the employees of the farm
labor contractor, the person engaged in the production of seed or
feed grains shall also be liable to the employees for wages not paid
by the farm labor contractor. Section History: Early Form
[C77, 79, 81, § 91A.3] Section History: Recent Form
84 Acts, ch 1270, § 2; 99 Acts, ch 68, §18; 2005 Acts, ch 168,
§19, 23; 2006 Acts, ch 1083, §1, 2, 4; 2007 Acts, ch 29, §1; 2008
Acts, ch 1136, §1, 2
Referred to in § 91A.2, 91A.4, 91A.7, 91A.8
91A.4 EMPLOYMENT SUSPENSION OR TERMINATION -- HOW
WAGES ARE PAID.
When the employment of an employee is suspended or terminated, the
employer shall pay all wages earned, less any lawful deductions
specified in section 91A.5 by the employee up to the time of the
suspension or termination not later than the next regular payday for
the pay period in which the wages were earned as provided in section
91A.3. However, if any of these wages are the difference between a
credit paid against wages determined on a commission basis and the
wages actually earned on a commission basis, the employer shall pay
the difference not more than thirty days after the date of suspension
or termination. If vacations are due an employee under an agreement
with the employer or a policy of the employer establishing pro rata
vacation accrued, the increment shall be in proportion to the
fraction of the year which the employee was actually employed. Section History: Early Form
[C77, 79, 81, § 91A.4] Section History: Recent Form
95 Acts, ch 37, § 1
91A.5 DEDUCTIONS FROM WAGES.
1. An employer shall not withhold or divert any portion of an
employee's wages unless:
a. The employer is required or permitted to do so by state or
federal law or by order of a court of competent jurisdiction; or
b. The employer has written authorization from the employee
to so deduct for any lawful purpose accruing to the benefit of the
employee.
2. The following shall not be deducted from an employee's wages:
a. Cash shortage in a common money till, cash box, or
register operated by two or more employees or by an employee and an
employer. However, the employer and a full-time employee who is the
manager of an establishment may agree in writing signed by both
parties that the employee will be responsible for a cash shortage
that occurs within forty-five days prior to the most recent regular
payday. Not more than one such agreement shall be in effect per
establishment.
b. Losses due to acceptance by an employee on behalf of the
employer of checks which are subsequently dishonored if the employee
has been given the discretion to accept or reject such checks and the
employee does not abuse the discretion given.
c. Losses due to breakage, damage to property, default of
customer credit, or nonpayment for goods or services rendered so long
as such losses are not attributable to the employee's willful or
intentional disregard of the employer's interests.
d. Lost or stolen property, unless the property is equipment
specifically assigned to, and receipt acknowledged in writing by, the
employee from whom the deduction is made.
e. Gratuities received by an employee from customers of the
employer.
f. Costs of personal protective equipment, other than items
of clothing or footwear which may be used by an employee during
nonworking hours, needed to protect an employee from
employment-related hazards, unless provided otherwise in a collective
bargaining agreement.
g. Costs of more than twenty dollars for an employee's
relocation to the place of employment. This paragraph shall apply
only to an employer as defined in section 91E.1. Section History: Early Form
[C77, 79, 81, § 91A.5] Section History: Recent Form
90 Acts, ch 1134, §1; 90 Acts, ch 1136, § 7, 8
Referred to in § 91A.3, 91A.4, 91A.7
Central employee registry, see chapter 252G
91A.6 NOTICE AND RECORDKEEPING REQUIREMENTS.
1. An employer shall after being notified by the commissioner
pursuant to subsection 2:
a. Notify its employees in writing at the time of hiring what
wages and regular paydays are designated by the employer.
b. Notify, at least one pay period prior to the initiation of
any changes, its employees of any changes in the arrangements
specified in subsection 1 that reduce wages or alter the regular
paydays. The notice shall either be in writing or posted at a place
where employee notices are routinely posted.
c. Make available to its employees upon written request, a
written statement enumerating employment agreements and policies with
regard to vacation pay, sick leave, reimbursement for expenses,
retirement benefits, severance pay, or other comparable matters with
respect to wages. Notice of such availability shall be given to each
employee in writing or by a notice posted at a place where employee
notices are routinely posted.
d. Establish, maintain, and preserve for three calendar years
the payroll records showing the hours worked, wages earned, and
deductions made for each employee and any employment agreements
entered into between an employer and employee.
2. The commissioner shall notify an employer to comply with
subsection 1 if the employer has paid a claim for unpaid wages or
nonreimbursed authorized expenses and liquidated damages under
section 91A.10 or if the employer has been assessed a civil money
penalty under section 91A.12. However, a court may, when rendering a
judgment for wages or nonreimbursed authorized expenses and
liquidated damages or upholding a civil money penalty assessment,
order that an employer shall not be required to comply with the
provisions of subsection 1 or that an employer shall be required to
comply with the provisions of subsection 1 for a particular period of
time.
3. Within ten working days of a request by an employee, an
employer shall furnish to the employee a written, itemized statement
or access to a written, itemized statement as provided in subsection
4, listing the earnings and deductions made from the wages for each
pay period in which the deductions were made together with an
explanation of how the wages and deductions were computed.
4. On each regular payday, the employer shall send to each
employee by mail or shall provide at the employee's normal place of
employment during normal employment hours a statement showing the
hours the employee worked, the wages earned by the employee, and
deductions made for the employee. However, the employer need not
provide information on hours worked for employees who are exempt from
overtime under the federal Fair Labor Standards Act, as defined in 29
C.F.R. pt. 541, unless the employer has established a policy or
practice of paying to or on behalf of exempt employees overtime, a
bonus, or a payment based on hours worked, whereupon the employer
shall send or otherwise provide a statement to the exempt employees
showing the hours the employee worked or the payments made to the
employee by the employer, as applicable. An employer who provides
each employee access to view an electronic statement of the
employee's earnings and provides the employee free and unrestricted
access to a printer to print the employee's statement of earnings, if
the employee chooses, is in compliance with this subsection. Section History: Early Form
[C77, 79, 81, § 91A.6] Section History: Recent Form
2005 Acts, ch 168, §20, 21, 23; 2006 Acts, ch 1083, §3
91A.7 WAGE DISPUTES.
If there is a dispute between an employer and employee concerning
the amount of wages or expense reimbursement due, the employer shall,
without condition and pursuant to section 91A.3, pay all wages
conceded to be due and reimburse all expenses conceded to be due,
less any lawful deductions specified in section 91A.5. Payment of
wages or reimbursement of expenses under this section shall not
relieve the employer of any liability for the balance of wages or
expenses claimed by the employee. Section History: Early Form
[C77, 79, 81, § 91A.7]
91A.8 DAMAGES RECOVERABLE BY AN EMPLOYEE.
When it has been shown that an employer has intentionally failed
to pay an employee wages or reimburse expenses pursuant to section
91A.3, whether as the result of a wage dispute or otherwise, the
employer shall be liable to the employee for any wages or expenses
that are so intentionally failed to be paid or reimbursed, plus
liquidated damages, court costs and any attorney's fees incurred in
recovering the unpaid wages and determined to have been usual and
necessary. In other instances the employer shall be liable only for
unpaid wages or expenses, court costs and usual and necessary
attorney's fees incurred in recovering the unpaid wages or expenses.
Section History: Early Form
[C77, 79, 81, § 91A.8]
Referred to in § 91A.3, 91A.10
91A.9 GENERAL POWERS AND DUTIES OF THE
COMMISSIONER.
1. The commissioner shall administer and enforce the provisions
of this chapter. The commissioner may hold hearings and investigate
charges of violations of this chapter.
2. The commissioner may, consistent with due process of law,
enter any place of employment to inspect records concerning wages and
payrolls, to question the employer and employees, and to investigate
such facts, conditions, or matters as are deemed appropriate in
determining whether any person has violated the provisions of this
chapter. However, such entry by the commissioner shall only be in
response to a written complaint.
3. The commissioner may employ such qualified personnel as are
necessary for the enforcement of this chapter. Such personnel shall
be employed pursuant to chapter 8A, subchapter IV.
4. The commissioner shall, in consultation with the United States
department of labor, develop a database of the employers in this
state utilizing special certificates issued by the United States
secretary of labor as authorized under 29 U.S.C. § 214, and shall
maintain the database.
5. The commissioner shall promulgate, pursuant to chapter 17A,
any rules necessary to carry out the provisions of this chapter. Section History: Early Form
[C77, 79, 81, § 91A.9] Section History: Recent Form
2003 Acts, ch 145, §163; 2009 Acts, ch 136, §2
91A.10 SETTLEMENT OF CLAIMS AND SUITS FOR WAGES --
PROHIBITION AGAINST DISCHARGE OF EMPLOYEE.
1. Upon the written complaint of the employee involved, the
commissioner may determine whether wages have not been paid and may
constitute an enforceable claim. If for any reason the commissioner
decides not to make such determination, the commissioner shall so
notify the complaining employee within fourteen days of receipt of
the complaint. The commissioner shall otherwise notify the employee
of such determination within a reasonable time and if it is
determined that there is an enforceable claim, the commissioner
shall, with the consent of the complaining employee, take an
assignment in trust for the wages and for any claim for liquidated
damages without being bound by any of the technical rules respecting
the validity of the assignment. However, the commissioner shall not
accept any complaint for unpaid wages and liquidated damages after
one year from the date the wages became due and payable.
2. The commissioner, with the assistance of the office of the
attorney general if the commissioner requests such assistance, shall,
unless a settlement is reached under this subsection, commence a
civil action in any court of competent jurisdiction to recover for
the benefit of any employee any wage, expenses, and liquidated
damages' claims that have been assigned to the commissioner for
recovery. The commissioner may also request reasonable and necessary
attorneys' fees. With the consent of the assigning employee, the
commissioner may also settle a claim on behalf of the assigning
employee. Proceedings under this subsection and subsection 1 that
precede commencement of a civil action shall be conducted informally
without any party having a right to be heard before the commissioner.
The commissioner may join various assignments in one claim for the
purpose of settling or litigating their claims.
3. The provisions of subsections 1 and 2 shall not be construed
to prevent an employee from settling or bringing an action for
damages under section 91A.8 if the employee has not assigned the
claim under subsection 1.
4. Any recovery of attorney's fees, in the case of actions
brought under this section by the commissioner, shall be remitted by
the commissioner to the treasurer of state for deposit in the general
fund of the state. Also, the commissioner shall not be required to
pay any filing fee or other court costs.
5. An employer shall not discharge or in any other manner
discriminate against any employee because the employee has filed a
complaint, assigned a claim, or brought an action under this section
or has cooperated in bringing any action against an employer. Any
employee may file a complaint with the commissioner alleging
discharge or discrimination within thirty days after such violation
occurs. Upon receipt of the complaint, the commissioner shall cause
an investigation to be made to the extent deemed appropriate. If the
commissioner determines from the investigation that the provisions of
this subsection have been violated, the commissioner shall bring an
action in the appropriate district court against such person. The
district court shall have jurisdiction, for cause shown, to restrain
violations of this subsection and order all appropriate relief
including rehiring or reinstatement of the employee to the former
position with back pay. Section History: Early Form
[C77, 79, 81, § 91A.10] Section History: Recent Form
84 Acts, ch 1270, § 3; 90 Acts, ch 1136, § 9
Referred to in § 91A.3, 91A.6
91A.11 WAGE CLAIMS BROUGHT UNDER RECIPROCITY.
1. The commissioner may enter into reciprocal agreements with the
labor department or corresponding agency of any other state or its
representatives for the collection in such other states of claims or
judgments for wages and other demands based upon claims assigned to
the commissioner.
2. The commissioner may, to the extent provided for by any
reciprocal agreement entered into by law or with an agency of another
state as provided in this section, maintain actions in the courts of
such other state to the extent permitted by the laws of that state
for the collection of claims for wages, judgments and other demands
and may assign such claims, judgments and demands to the labor
department or agency of such other state for collection to the extent
that such an assignment may be permitted or provided for by the laws
of such state or by reciprocal agreement.
3. The commissioner may, upon the written consent of the labor
department or other corresponding agency of any other state or its
representatives, maintain actions in the courts of this state upon
assigned claims for wages, judgments and demands arising in such
other state in the same manner and to the same extent that such
actions by the commissioner are authorized when arising in this
state. However, such actions may be maintained only in cases in which
such other state by law or reciprocal agreement extends a like comity
to cases arising in this state. Section History: Early Form
[C77, 79, 81, § 91A.11]
91A.12 CIVIL PENALTIES.
1. Any employer who violates the provisions of this chapter or
the rules promulgated under it shall be subject to a civil money
penalty of not more than five hundred dollars per pay period for each
violation. The commissioner may recover such civil money penalty
according to the provisions of subsections 2 to 5. Any civil money
penalty recovered shall be deposited in the general fund of the
state.
2. The commissioner may propose that an employer be assessed a
civil money penalty by serving the employer with notice of such
proposal in the same manner as an original notice is served under the
rules of civil procedure. Upon service of such notice, the proposed
assessment shall be treated as a contested case under chapter 17A.
However, an employer must request a hearing within thirty days of
being served.
3. If an employer does not request a hearing pursuant to
subsection 2 or if the commissioner determines, after an appropriate
hearing, that an employer is in violation of this chapter, the
commissioner shall assess a civil money penalty which is consistent
with the provisions of subsection 1 and which is rendered with due
consideration for the penalty amount in terms of the size of the
employer's business, the gravity of the violation, the good faith of
the employer, and the history of previous violations.
4. An employer may seek judicial review of any assessment
rendered under subsection 3 by instituting proceedings for judicial
review pursuant to chapter 17A. However, such proceedings must be
instituted in the district court of the county in which the violation
or one of the violations occurred and within thirty days of the day
on which the employer was notified that an assessment has been
rendered. Also, an employer may be required, at the discretion of the
district court and upon instituting such proceedings, to deposit the
amount assessed with the clerk of the district court. Any moneys so
deposited shall either be returned to the employer or be forwarded to
the commissioner for deposit in the general fund of the state,
depending on the outcome of the judicial review, including any appeal
to the supreme court.
5. After the time for seeking judicial review has expired or
after all judicial review has been exhausted and the commissioner's
assessment has been upheld, the commissioner shall request the
attorney general to recover the assessed penalties in a civil action.
Section History: Early Form
[C77, 79, 81, § 91A.12] Section History: Recent Form
2009 Acts, ch 49, §1
Referred to in § 91A.6
91A.13 TRAVEL TIME TO WORKSITE -- WHEN COMPENSABLE.
Unless a collective bargaining agreement provides otherwise, an
employee is not entitled to compensation for the time that an
employee spends traveling to and from the worksite on transportation
provided by the employer, when during that time, the employee
performs no work, the transportation is provided by the employer as a
convenience for the employee, and the employee is not required by the
employer to use that means of transportation to the worksite. An
employee is entitled to compensation for the time that an employee
spends traveling between worksites if the travel is done during
working hours. Section History: Recent Form
2001 Acts, ch 121, §1
91A.14 FORMER EMPLOYEES.
The rights and obligations outlined in this chapter continue until
they are fulfilled, even though the employer-employee relationship
has been severed. Section History: Recent Form
2000 Acts, ch 1097, §3