Relating to 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. The bill requires the labor commissioner to employ wage investigators for the enforcement of Code chapter 91A, and to establish a statewide, toll-free telephone hotline for the purpose of receiving reports of violations of Code chapter 91A. 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 modifies language relating to procedures for the labor commissioner to impose civil penalties on an employer for violations of Code chapter 91A by making certain actions by the commissioner mandatory. The bill provides that if an employer erroneously violates the provisions of Code chapter 91A or the rules adopted pursuant to Code chapter 91A, the employer shall not be subject to certain penalty provisions provided in Code chapter 91A if certain conditions are met. The first condition is that the labor commissioner determines that the violation was erroneous and that the employer attempted in good faith to comply with the provisions of Code chapter 91A and the rules adopted pursuant to Code chapter 91A. The second condition is that the commissioner, after considering any history of violations by the employer, determines that the violation was isolated in nature. The third condition is that the employer corrects the violation to the satisfaction of the commissioner within days of the occurrence of the violation. The bill prohibits an employer from requiring that an individual be a current employee to be paid an earned commission. The bill stipulates that a provision of Code chapter 91A shall not apply to any employer or employee if such provision would conflict with federal law or regulation. The bill requires the labor commissioner to provide for the notification of each employer in Iowa of the requirements for employers provided in the bill by September 1, 2023. Such notification shall include suggested forms and procedures that employers may use for purposes of compliance with the notice and recordkeeping requirements of Code chapter 91A as amended by the bill. 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, except for the provision providing for notification of employees in Iowa by the labor commissioner, takes effect January 1, 2024.