Concerning wage payment collection issues arising between employers and employees, providing penalties and remedies, and including effective date provisions

This bill relates to the collection of wages from employers by employees under Code chapter 91A, the “Iowa Wage Payment Collection Law”. The bill provides that an employer has the burden to establish that a deduction from employees’ wages is lawful and that the employer must obtain written authorization for the deduction from the employee in advance. The bill removes the requirement that an employer be notified by the division of labor services of the department of workforce development before the employer is required to fulfill requirements relating to employee wage and benefit information. The bill requires an employer to notify employees in writing whose wages are determined based on a task, piece, mile, or load basis about the method used to calculate wages and when wages are earned. The bill establishes a rebuttable presumption that an employer did not pay the minimum wage if the employer does not maintain proper payroll records. The bill requires an employer to provide to each employee a statement of the employee’s earnings, deductions made, and as applicable the following: for an employee paid hourly, the number of hours worked during the pay period; for an employee paid on a percentage of sales or revenue generated, a list of sales or amount of revenue during the pay period; and for an employee paid based on the number of miles or loads performed, the applicable number performed during the pay period. The bill provides that when any specified violation of Code chapter 91A occurs, even if unintentional, an employer shall be liable for unpaid wages or expenses plus liquidated damages, court costs, and attorney fees incurred in recovering wages. Prohibitions on retaliatory actions by employers or others are expanded to cover persons other than employees who act under Code chapter 91A with respect to an employee. A 90-day period is established during which any action against an employee or other person is rebuttably presumed to be retaliatory. The bill allows the labor commissioner or any injured party to maintain a civil action in any court of proper jurisdiction. An employer who retaliates against an employee or other person shall compensate the injured party an amount set by the labor commissioner or the court, but not less than $150 for each day of the violation. The bill prohibits an employer from requiring that an individual be a current employee to be paid an earned commission. An employer who violates Code chapter 91A is subject to a civil penalty of not more than $500 per pay period for each violation. The bill takes effect January 1, 2022.