Read the full stored bill text
Senate
File
2046
-
Introduced
SENATE
FILE
2046
BY
DONAHUE
,
STAED
,
HARDMAN
,
DREY
,
BLAKE
,
KNOX
,
BISIGNANO
,
TOWNSEND
,
PETERSEN
,
ZIMMER
,
WINCKLER
,
QUIRMBACH
,
DOTZLER
,
WEINER
,
TRONE
GARRIOTT
,
and
BENNETT
A
BILL
FOR
An
Act
relating
to
wage
payment
collection
issues
arising
1
between
employers
and
employees,
providing
penalties
and
2
remedies,
and
including
effective
date
provisions.
3
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
4
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DIVISION
I
1
WAGE
PAYMENT
COLLECTION
2
Section
1.
Section
91A.5,
subsection
1,
unnumbered
3
paragraph
1,
Code
2026,
is
amended
to
read
as
follows:
4
An
employer
shall
have
the
burden
to
establish
that
a
5
deduction
from
employee
wages
is
lawful.
An
employer
shall
not
6
withhold
or
divert
any
portion
of
an
employee’s
wages
unless:
7
Sec.
2.
Section
91A.5,
subsection
1,
paragraph
b,
Code
2026,
8
is
amended
to
read
as
follows:
9
b.
The
employer
has
obtains
advance
written
authorization
10
from
the
employee
to
so
deduct
for
any
lawful
purpose
accruing
11
to
the
benefit
of
the
employee.
12
Sec.
3.
Section
91A.6,
subsection
1,
Code
2026,
is
amended
13
to
read
as
follows:
14
1.
An
employer
shall
after
being
notified
by
the
director
15
pursuant
to
subsection
2
do
the
following
:
16
a.
Notify
its
employees
in
writing
at
the
time
of
hiring
17
what
wages
and
regular
paydays
are
designated
by
the
employer.
18
b.
Notify
its
employees
in
writing
whose
wages
are
19
determined
based
on
a
task,
piece,
mile,
or
load
basis
about
20
the
method
used
to
calculate
wages
and
when
the
wages
are
21
earned
by
the
employees.
22
b.
c.
Notify,
at
least
one
pay
period
prior
to
the
23
initiation
of
any
changes,
its
employees
of
any
changes
in
24
the
arrangements
specified
in
this
subsection
1
that
reduce
25
wages
or
alter
the
regular
paydays.
The
notice
shall
either
26
be
in
writing
or
posted
at
a
place
where
employee
notices
are
27
routinely
posted.
28
c.
d.
Make
available
to
its
employees
upon
written
request,
29
a
written
statement
enumerating
employment
agreements
and
30
policies
with
regard
to
vacation
pay,
sick
leave,
reimbursement
31
for
expenses,
retirement
benefits,
severance
pay,
or
other
32
comparable
matters
with
respect
to
wages.
Notice
of
such
33
availability
shall
be
given
to
each
employee
in
writing
or
by
a
34
notice
posted
at
a
place
where
employee
notices
are
routinely
35
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posted.
1
d.
e.
Establish,
maintain,
and
preserve
for
three
2
calendar
years
the
payroll
records
showing
the
hours
worked,
3
wages
earned,
and
deductions
made
for
each
employee
and
4
any
employment
agreements
entered
into
between
an
employer
5
and
employee.
Failure
to
do
so
shall
raise
a
rebuttable
6
presumption
that
the
employer
did
not
pay
the
required
minimum
7
wage
under
section
91D.1.
8
Sec.
4.
Section
91A.6,
subsection
2,
Code
2026,
is
amended
9
by
striking
the
subsection.
10
Sec.
5.
Section
91A.6,
subsection
4,
Code
2026,
is
amended
11
by
striking
the
subsection
and
inserting
in
lieu
thereof
the
12
following:
13
4.
a.
On
each
regular
payday,
the
employer
shall
provide
14
to
each
employee
a
statement
showing
the
wages
earned
by
15
the
employee,
the
deductions
made
for
the
employee,
and
the
16
following
information,
as
applicable:
17
(1)
For
each
employee
paid
in
whole
or
in
part
on
an
hourly
18
basis,
the
statement
shall
show
the
hours
the
employee
worked.
19
(2)
For
each
employee
paid
based
on
a
percentage
of
sales
or
20
based
on
a
percentage
of
revenue
generated
for
the
employer,
21
the
statement
shall
include
a
list
of
the
amount
of
each
sale
22
or
the
amount
of
revenue
during
the
pay
period.
23
(3)
For
each
employee
whose
pay
is
based
on
the
number
24
of
miles
or
loads
performed,
the
statement
shall
include
the
25
applicable
number
performed
during
the
pay
period.
26
b.
The
employer
shall
provide
the
statement
using
one
of
the
27
following
methods:
28
(1)
Sending
the
statement
to
an
employee
by
mail.
29
(2)
Providing
the
statement
to
an
employee
by
secure
30
electronic
transmission
or
by
other
secure
electronic
means.
31
If
an
employee
is
unable
to
receive
the
statement
by
this
32
method,
the
employee
shall
notify
the
employer
in
writing
at
33
least
one
pay
period
in
advance,
and
the
employer
shall
provide
34
the
statement
by
one
of
the
other
methods
listed
in
this
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paragraph
“b”
.
1
(3)
Providing
the
statement
to
the
employee
at
the
2
employee’s
normal
place
of
employment
during
normal
employment
3
hours.
4
(4)
Providing
each
employee
access
to
view
a
statement
5
of
the
employee’s
earnings
electronically
and
providing
the
6
employee
free
and
unrestricted
access
to
a
printer
to
print
the
7
statement.
8
Sec.
6.
Section
91A.8,
Code
2026,
is
amended
to
read
as
9
follows:
10
91A.8
Damages
recoverable
by
an
employee.
11
When
it
has
been
shown
that
an
employer
has
intentionally
12
failed
to
pay
an
employee
wages
or
reimburse
expenses
pursuant
13
to
section
91A.3
,
whether
as
the
result
of
a
wage
dispute
or
14
otherwise,
the
employer
shall
be
liable
to
the
employee
for
15
any
the
unpaid
wages
or
unreimbursed
expenses
that
are
so
16
intentionally
failed
to
be
paid
or
reimbursed
,
plus
liquidated
17
damages,
court
costs
,
and
any
attorney’s
attorney
fees
incurred
18
in
recovering
the
unpaid
wages
or
unreimbursed
expenses
19
and
determined
to
have
been
usual
and
necessary.
In
other
20
instances
the
employer
shall
be
liable
only
for
unpaid
wages
or
21
expenses,
court
costs
and
usual
and
necessary
attorney’s
fees
22
incurred
in
recovering
the
unpaid
wages
or
expenses.
23
Sec.
7.
Section
91A.9,
subsection
3,
Code
2026,
is
amended
24
to
read
as
follows:
25
3.
The
director
may
employ
such
qualified
personnel
as
are
26
necessary
for
the
enforcement
of
this
chapter
.
Such
personnel
27
shall
be
employed
pursuant
to
chapter
8A,
subchapter
IV
.
The
28
director
shall
employ
wage
investigators
for
the
enforcement
of
29
this
chapter.
30
Sec.
8.
Section
91A.10,
subsections
1
and
5,
Code
2026,
are
31
amended
to
read
as
follows:
32
1.
Upon
the
written
complaint
of
the
employee
involved,
the
33
director
may
shall
determine
whether
wages
have
not
been
paid
34
and
may
constitute
an
enforceable
claim.
If
for
any
reason
the
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director
decides
not
to
make
such
determination,
the
director
1
shall
so
notify
the
complaining
employee
within
fourteen
days
2
of
receipt
of
the
complaint.
The
director
shall
otherwise
3
notify
the
employee
of
such
determination
within
a
reasonable
4
time
and
if
it
is
determined
that
there
is
an
enforceable
5
claim,
the
director
shall,
with
the
consent
of
the
complaining
6
employee,
take
an
assignment
in
trust
for
the
wages
and
for
7
any
claim
for
liquidated
damages
without
being
bound
by
any
of
8
the
technical
rules
respecting
the
validity
of
the
assignment.
9
However,
the
director
shall
not
accept
any
complaint
for
unpaid
10
wages
and
liquidated
damages
after
one
year
three
years
from
11
the
date
the
wages
became
due
and
payable.
12
5.
An
employer
shall
not
discharge
or
in
any
other
manner
13
discriminate
against
any
employee
because
the
employee
has
14
filed
a
complaint,
assigned
a
claim,
or
brought
an
action
under
15
this
section
or
has
cooperated
in
bringing
any
action
against
16
an
employer.
17
5.
a.
An
employer
or
other
person
shall
not
discharge
or
18
in
any
other
manner
discriminate
or
retaliate
against
any
of
19
the
following:
20
(1)
An
employee
or
other
person
for
exercising
any
right
21
provided
under
this
chapter
or
any
rules
adopted
pursuant
to
22
this
chapter.
23
(2)
Another
employee
or
person
for
providing
assistance
to
24
an
employee
or
providing
information
regarding
the
employee
or
25
person.
26
(3)
Another
employee
or
person
for
testifying
or
planning
27
to
testify
in
any
investigation
or
proceeding
regarding
the
28
employee
or
person.
29
b.
Taking
adverse
action
against
an
employee
or
other
person
30
within
ninety
days
of
an
employee’s
or
other
person’s
engaging
31
in
any
of
the
activities
in
paragraph
“a”
raises
a
presumption
32
that
such
action
was
retaliation,
which
may
be
rebutted
by
33
evidence
that
such
action
was
taken
for
other
permissible
34
reasons.
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c.
Any
employee
may
file
a
complaint
with
the
director
1
alleging
discharge
,
or
discrimination
,
or
retaliation
within
2
thirty
days
after
such
violation
occurs.
Upon
receipt
of
the
3
complaint,
the
director
shall
cause
an
investigation
to
be
made
4
to
the
extent
deemed
appropriate.
If
the
director
determines
5
from
the
investigation
that
the
provisions
of
this
subsection
6
have
been
violated,
the
director
shall
bring
an
action
in
the
7
appropriate
district
court
against
such
person.
The
district
8
court
shall
have
jurisdiction,
for
cause
shown,
to
restrain
9
violations
of
this
subsection
and
order
all
appropriate
relief
10
including
rehiring
or
reinstatement
of
the
employee
to
the
11
former
position
with
back
pay.
12
Sec.
9.
Section
91A.10,
Code
2026,
is
amended
by
adding
the
13
following
new
subsection:
14
NEW
SUBSECTION
.
6.
A
civil
action
to
enforce
subsection
5
15
may
also
be
maintained
in
any
court
of
competent
jurisdiction
16
by
the
director
or
by
any
party
injured
by
a
violation
of
17
subsection
5.
An
employer
or
other
person
who
retaliates
18
against
an
employee
or
other
person
in
violation
of
subsection
19
5
shall
be
required
to
pay
the
employee
or
other
person
an
20
amount
set
by
the
director
or
a
court
sufficient
to
compensate
21
the
employee
or
other
person
and
to
deter
future
violations,
22
but
not
less
than
one
hundred
fifty
dollars
for
each
day
that
23
the
violation
occurred.
24
Sec.
10.
Section
91A.12,
subsections
1
and
2,
Code
2026,
are
25
amended
to
read
as
follows:
26
1.
Any
employer
who
violates
the
provisions
of
this
chapter
27
or
the
rules
promulgated
under
it
shall
be
subject
to
a
civil
28
money
penalty
of
not
more
than
five
hundred
dollars
per
pay
29
period
for
each
violation.
The
director
may
shall
recover
such
30
civil
money
penalty
according
to
the
provisions
of
subsections
31
2
through
5
.
Any
civil
money
penalty
recovered
shall
be
32
deposited
in
the
general
fund
of
the
state.
33
2.
The
director
may
shall
propose
that
an
employer
be
34
assessed
a
civil
money
penalty
by
serving
the
employer
with
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notice
of
such
proposal
in
the
same
manner
as
an
original
1
notice
is
served
under
the
rules
of
civil
procedure.
Upon
2
service
of
such
notice,
the
proposed
assessment
shall
be
3
treated
as
a
contested
case
under
chapter
17A
.
However,
an
4
employer
must
request
a
hearing
within
thirty
days
of
being
5
served.
6
Sec.
11.
NEW
SECTION
.
91A.12A
Inadvertent
violations.
7
If
an
employer
inadvertently
violates
the
provisions
of
8
this
chapter
or
the
rules
adopted
pursuant
to
this
chapter,
9
the
employer
shall
not
be
subject
to
liability
to
an
employee
10
pursuant
to
section
91A.8,
the
violation
shall
not
constitute
11
an
enforceable
claim
as
provided
in
section
91A.10,
and
the
12
employer
shall
not
be
subject
to
a
civil
money
penalty
pursuant
13
to
section
91A.12,
if
all
of
the
following
conditions
are
met:
14
1.
The
director
determines
that
the
violation
was
15
inadvertent
and
that
the
employer
attempted
in
good
faith
16
to
comply
with
the
provisions
of
this
chapter
and
the
rules
17
adopted
pursuant
to
this
chapter.
18
2.
The
director,
after
considering
any
history
of
19
violations
of
this
chapter
or
the
rules
adopted
pursuant
to
20
this
chapter
by
the
employer,
determines
that
the
violation
was
21
isolated
in
nature.
22
3.
The
employer
corrects
the
violation
to
the
satisfaction
23
of
the
director
within
fourteen
days
of
the
occurrence
of
the
24
violation.
25
Sec.
12.
NEW
SECTION
.
91A.16
Commissions
earned
date.
26
An
employer
shall
not
require
that
a
person
be
a
current
27
employee
to
be
paid
a
commission
that
the
person
otherwise
28
earned.
29
Sec.
13.
NEW
SECTION
.
91A.17
Inconsistency
with
federal
30
law.
31
A
provision
of
this
chapter
shall
not
apply
to
any
employer
32
or
employee
if
such
provision
would
conflict
with
federal
law
33
or
regulation.
34
Sec.
14.
EFFECTIVE
DATE.
This
division
of
this
Act
takes
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effect
January
1,
2027.
1
DIVISION
II
2
NOTIFICATION
REQUIREMENTS
3
Sec.
15.
NOTIFICATION
REQUIREMENTS.
The
director
of
the
4
department
of
inspections,
appeals,
and
licensing
shall
provide
5
for
the
notification
of
each
employer
in
this
state
of
the
6
requirements
for
employers
provided
in
this
Act
by
September
7
1,
2026.
Such
notification
shall
include
suggested
forms
and
8
procedures
that
employers
may
use
for
purposes
of
compliance
9
with
the
notice
and
recordkeeping
requirements
of
section
10
91A.6,
as
amended
by
this
Act.
11
EXPLANATION
12
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
13
the
explanation’s
substance
by
the
members
of
the
general
assembly.
14
This
bill
relates
to
the
collection
of
wages
from
employers
15
by
employees
under
Code
chapter
91A,
the
“Iowa
Wage
Payment
16
Collection
Law”.
17
The
bill
provides
that
an
employer
has
the
burden
to
18
establish
that
a
deduction
from
employees’
wages
is
lawful
and
19
that
the
employer
must
obtain
written
authorization
for
the
20
deduction
from
the
employee
in
advance.
21
The
bill
removes
the
requirement
that
an
employer
be
22
notified
by
the
director
of
the
department
of
inspections,
23
appeals,
and
licensing
before
the
employer
is
required
to
24
fulfill
requirements
relating
to
employee
wage
and
benefit
25
information.
The
bill
requires
an
employer
to
notify
employees
26
in
writing
whose
wages
are
determined
based
on
a
task,
piece,
27
mile,
or
load
basis
about
the
method
used
to
calculate
wages
28
and
when
wages
are
earned.
The
bill
establishes
a
rebuttable
29
presumption
that
an
employer
did
not
pay
the
minimum
wage
if
30
the
employer
does
not
maintain
proper
payroll
records.
31
The
bill
requires
an
employer
to
provide
to
each
employee
32
a
statement
of
the
employee’s
earnings,
deductions
made,
and
33
as
applicable
the
following:
for
an
employee
paid
hourly,
the
34
number
of
hours
worked
during
the
pay
period;
for
an
employee
35
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paid
on
a
percentage
of
sales
or
revenue
generated,
a
list
of
1
sales
or
amount
of
revenue
during
the
pay
period;
and
for
an
2
employee
paid
based
on
the
number
of
miles
or
loads
performed,
3
the
applicable
number
performed
during
the
pay
period.
4
The
bill
provides
that
when
any
specified
violation
of
Code
5
chapter
91A
occurs,
even
if
unintentional,
an
employer
shall
be
6
liable
for
unpaid
wages
or
expenses
plus
liquidated
damages,
7
court
costs,
and
attorney
fees
incurred
in
recovering
wages.
8
The
bill
requires
the
director
to
employ
wage
investigators
9
for
the
enforcement
of
Code
chapter
91A.
10
The
bill
requires
the
director,
upon
the
written
complaint
11
of
the
employee
involved,
to
determine
whether
wages
have
not
12
been
paid
and
may
constitute
an
enforceable
claim.
Under
13
current
law,
making
such
a
determination
is
discretionary.
14
The
bill
increases
the
period
after
which
the
director
is
15
prohibited
from
accepting
complaints
for
unpaid
wages
and
16
liquidated
damages
to
three
years
from
the
date
the
wages
17
became
due
and
payable.
Under
current
law,
the
period
is
one
18
year
from
that
date.
19
Prohibitions
on
retaliatory
actions
by
employers
or
20
others
are
expanded
to
cover
persons
other
than
employees
who
21
act
under
Code
chapter
91A
with
respect
to
an
employee.
A
22
90-day
period
is
established
during
which
any
action
against
23
an
employee
or
other
person
is
rebuttably
presumed
to
be
24
retaliatory.
The
bill
allows
the
director
or
any
injured
party
25
to
maintain
a
civil
action
in
any
court
of
proper
jurisdiction.
26
An
employer
who
retaliates
against
an
employee
or
other
27
person
shall
compensate
the
injured
party
an
amount
set
by
the
28
director
or
the
court,
but
not
less
than
$150
for
each
day
of
29
the
violation.
30
The
bill
modifies
language
relating
to
procedures
for
31
the
director
to
impose
civil
penalties
on
an
employer
for
32
violations
of
Code
chapter
91A
by
making
certain
actions
by
the
33
director
mandatory.
34
The
bill
provides
that
if
an
employer
inadvertently
violates
35
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the
provisions
of
Code
chapter
91A
or
the
rules
adopted
1
pursuant
to
Code
chapter
91A,
the
employer
shall
not
be
subject
2
to
certain
penalty
provisions
provided
in
Code
chapter
91A
3
if
certain
conditions
are
met.
The
first
condition
is
that
4
the
director
determines
that
the
violation
was
inadvertent
5
and
that
the
employer
attempted
in
good
faith
to
comply
with
6
the
provisions
of
Code
chapter
91A
and
the
rules
adopted
7
pursuant
to
Code
chapter
91A.
The
second
condition
is
that
8
the
director,
after
considering
any
history
of
violations
by
9
the
employer,
determines
that
the
violation
was
isolated
in
10
nature.
The
third
condition
is
that
the
employer
corrects
the
11
violation
to
the
satisfaction
of
the
director
within
14
days
of
12
the
occurrence
of
the
violation.
13
The
bill
prohibits
an
employer
from
requiring
an
individual
14
to
be
a
current
employee
to
be
paid
an
earned
commission.
15
The
bill
stipulates
that
a
provision
of
Code
chapter
91A
16
shall
not
apply
to
any
employer
or
employee
if
such
provision
17
would
conflict
with
federal
law
or
regulation.
18
The
bill
requires
the
director
to
provide
for
the
19
notification
of
each
employer
in
Iowa
of
the
requirements
for
20
employers
provided
in
the
bill
by
September
1,
2026.
Such
21
notification
shall
include
suggested
forms
and
procedures
that
22
employers
may
use
for
purposes
of
compliance
with
the
notice
23
and
recordkeeping
requirements
of
Code
chapter
91A
as
amended
24
by
the
bill.
25
An
employer
who
violates
Code
chapter
91A
is
subject
to
a
26
civil
penalty
of
not
more
than
$500
per
pay
period
for
each
27
violation.
28
The
bill,
except
for
the
provision
providing
for
29
notification
of
employees
in
Iowa
by
the
director,
takes
effect
30
January
1,
2027.
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