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1 Thank you for downloading Agent 77 s STATE EMPLOYMENT REGULATIONS FOR IOWA. This form is provided to you as is. As provided, we believe it meets the requirements needed for state compliance, as applicable, at the time you download it. Any substantive change to the contents of this document may result in potential legal liability for you and your company. Agent 77, Inc. accepts no liability or responsibility for any of our documents that have had the contents altered beyond simply filling in the appropriate blanks and/or replacing place holder text and adding your company logo and information. This document is provided to you with the understanding it is not a legal or accounting opinion and should not be construed as such, and that Agent 77, Inc. is not engaged in the business of rendering legal or accounting services. If you need specific advice on any legal or accounting issue, the services of a competent professional should be sought. Please see for more information. This and all documents downloaded from our website are Copyright 2005, 2006, 2008, 2012, Agent 77, Inc. Reminder: Agent 77 s license prohibits you from copying and distributing this STATE EMPLOYMENT REGULATIONS FOR IOWA to anyone outside of your company. Doing so is a violation of this license and will result in the revocation of your subscription and/or prosecution under federal copyright laws as well as possible civil litigation. Please see for a copy of the current license agreement. Iowa Regs.doc

2 What s New STATE EMPLOYMENT REGULATIONS FOR IOWA Employers may now require new employees (but not existing employees) to participate in direct deposit of wages as a condition of employment, except in certain narrow circumstances. Employers who fail to electronically transmit payment to a direct deposit account on or by the regular payday are liable for any overdraft charges on the employee s account due to non-payment of wages Iowa minimum wage is $7.25 as of January 1, Tipped credit is no more than 40% of the minimum wage Changes were made to the following sections: Military Leave, Jury Duty, Child Labor, Discrimination and Payment of Wages. The following sections were added: Breast Feeding, New Hire Reporting, Access to Personnel Files, Job Reference Liability, Smoking and Disaster Services Leave Changes were made to the following section: State Continuation of Benefits. Iowa Regs.doc

3 Introduction STATE EMPLOYMENT REGULATIONS FOR IOWA Employment laws vary from state to state with some being more employee-friendly than others. Federal regulations set minimum standards of worker protections that all employers of a given size must meet. Individual states, however, are free to grant workers additional or expanded rights or protections above this federal minimum. Virtually all employers in the U.S. are subject to federal employment regulations. Only the smallest, strictly local employers are not subject to federal regulations. If an employer does any of the following, they are participating in interstate commerce and are subject to federal employment regulations: Production of goods for commerce, such as transportation or communication Use of mail over state lines Interstate communications using the telephone Use of the Internet over state lines Interstate communications using electronic mail Make purchases from out-of-state vendors Sell to customers in other states This summary of employment regulations does not include information for those few employers not subject to the federal minimum employment regulations. Many states have regulations for public employers that are different than those for employers in the private sector. This document also does not include information on regulations (federal and state) that apply only to public sector employers. In this document we summarize the workplace regulations and worker protections available in Iowa. Although not an exhaustive list, it covers the major topics small to mid-sized employers must deal with on a regular basis. Covered areas include: Wage, hour and overtime rules (including child labor and break rules); Leaves of absence (family leaves, voting time and jury duty); Discrimination and harassment regulations; and State rules on continuation of benefits. The federally mandated, but state run new-hire reporting requirements are covered under a separate document, available for download from Libretto or from the Agent 77 store. The following Quick View table summarizes these regulations. This is followed by a more detailed description of these regulations. Please be sure to read both carefully to understand your responsibilities under Iowa and federal law. Also, see the resources section below for reference websites and Libretto tools that can help you comply with these regulations. Iowa Regs.doc 1 of 8

4 QUICK VIEW OF STATE EMPLOYMENT REGULATIONS FOR IOWA Topic Minimum Wage Payment of Wages Overtime Work Hours and Breaks Child Labor Family Leave Iowa Regulation $7.25/ hour Training minimum wage for employees under 20 years old for the first 90 days is $6.35 / hour Maximum tipped employee credit is 40% of wages Some localities have a higher minimum Posting requirements apply Employees must be paid at least monthly, no more than 12 days after the close of the period. Final paychecks must be delivered no later than payday following termination. Employers may require new hires to participate in direct deposit as a condition of employment, except in certain circumstances. Vacation may be due as detailed below Non-exempt employees must be paid at least 1.5 times their regular rate for hours worked over 40 in a given week Iowa has no break time rules, except for minors. Employers employing minors under 16 must keep a Work Permit on file (issued by Superintendent of Schools). Required 30-minute break for every 5 hours worked Federal and Iowa law prohibit minors in certain occupations. See the U.S. Department of Labor and the Iowa Workforce Development Center for information on these prohibitions (contact information is in the reference section) See the details section below for restrictions on hours minors may work Federal law requires that employers with 50 or more employees must: Grant up to 12 weeks of unpaid family medical leave to employees who have completed a year of service or 1250 hours Grant leave for birth or adoption of a child, serious medical condition of the employee, to care for a family member with a serious medical condition, qualifying exigency for military leave and serious illness/injury of covered service member for military leave. Employee must be reinstated to same or equivalent position after completion of leave Benefits must be maintained during leave Iowa has separate laws regarding pregnancy, as detailed below. Iowa Regs.doc 2 of 8

5 QUICK VIEW OF STATE EMPLOYMENT REGULATIONS FOR IOWA Military Leave/Disaster Services Leave Voting Time Jury Duty Breast Feeding Rights New Hire Reporting Access to Personnel Files Job Reference Liability Employers must grant unlimited time for military leave Employee must be reinstated to same or equivalent position after completion of military leave Employers may not terminate or threaten to terminate any employee called to military service Special benefit rules apply for military leave Iowa has a separate leave law for employees who are members of the National Guard or U.S. Reserves Iowa has a separate law for certain volunteers that provides job protection. Up to 3 hours for general elections if employee does not have three hours during times when polls are open Request must be made prior to Election Day Employer can specify times for leave Pay may be deducted for non-exempt employees Leave is required, but is unpaid Employee must be reinstated to same position after completion of jury duty A woman may feed her child in any pubic place where she is authorized to be present. Employers are required to report new hires/rehires within 15 days of such hire/rehire. Employees are permitted access to certain information covering the employer/employee relationship. Employers are generally immune from liability form disclosing truthful information about a current/former employee. Smoking in the Workplace Smoking is prohibited in private workplaces. Posting provisions apply. Discrimination and Harassment State Mini-COBRA Prohibited based on national origin, race or color, religion, age (over 18), physical or mental disability, Aids and AIDS-related conditions, military service, or sex (including pregnancy, childbirth, and other pregnancy-related conditions) and sexual orientation or gender identity. Employers are prohibited from inquiring about genetic test results as a condition of employment. Details and contact information are listed below. Iowa Regs.doc 3 of 8

6 Wage, Hour and Overtime Rules Employers are subject to the federal minimum wage, hour and overtime rules through the Fair Labor Standards Act. This act specifies that businesses that do at least $500,000 in gross revenue, as well as all health care facilities and schools are subject to the federal rules. Also, employers involved in interstate commerce are subject to the federal rules. Minimum Wage Iowa minimum wage is $7.25 per hour. A special minimum of $6.35 per hour may be used for employees under 20 years old in the first 90 days of employment. Also, employers may apply a credit of up to 40% of the minimum for tipped employees (or a minimum wage of $4.35), provided that the total wages plus tips come to at least the minimum of $7.25 per hour. Employers subject to the minimum wage provisions must post a notice explaining the law, as prescribed by the Iowa Division of Labor, in conspicuous places in every establishment where such employees are employed. Be aware that certain local governments in Iowa have a higher minimum wage for employees in their jurisdictions. Be sure to contact your city or county government to see if there are any local minimum wage rules for your business. Overtime Any hours worked over 40 in a given week, non-exempt employees must be paid at least one and one-half times their regular pay. Exempt employee classes include: executive, administrative, professional, outside salespeople and computer professionals. (Use Libretto s FLSA Resource Package for help in determining whether a given employee is exempt). Payment of Wages Iowa law requires that employees be paid at least bi-weekly, monthly or semi-monthly and payment must be made no more than 12 days after the close of that period. Final paychecks must be delivered no later than payday following termination. Deductions from the final paycheck may not be made without the employee's written consent. Employers may require employees hired after July 1, 2005 to participate in direct deposit of wages as a condition of employment, unless: the employee would incur fees opening an account which would bring their earnings below the minimum wage rate; the employee would incur fees maintaining such an account; or a collective bargaining agreement prohibits the employer from requiring direct deposit. In addition, employers who fail to electronically transmit payment to a direct deposit account on or by the regular payday are liable for any overdraft charges on the employee s account due to non-payment of wages. If vacation is due to an employee under an agreement with the employer or a policy of the employer establishing pro rata vacations, the amount of vacation pay due as wages on termination must be proportionate to the fraction of the year that the employee was actually employed. Within ten (10) working days of an employee's request, employers must furnish the employee a written, itemized statement of earnings and deductions made from wages, along with an explanation of how they were computed. Work Hours and Breaks Iowa has no break time rules, except for minors (see below). Iowa Regs.doc 4 of 8

7 Child Labor Iowa child labor laws require all employers employing minors under the age of 16 to have Work Permits on file (issued by a local school official designated by the Iowa Workforce Development Center). Also, minors 16 years or older should show proof of age with a Certificate of Age (also issued by a local school official or the Iowa Workforce Development Center). Employers who employ minors under 16 years of age are subject to strict limits for hours worked per day and per week for their minor employees: 1. When school is in session, children 14 and 15 years of age may work: During non-school hours; Up to 4 hours per day, and Up to 28 hours per week. 2. When school is NOT in session (including summer vacations, holidays and weekends), children under the age of 16 may NOT work. More than 8 hours per day; nor More than 40 hours per week. 3. Daily hours of work may not be before 7:00 AM or after 7:00 PM except between June 1st and Labor Day when working hours may be extended to 9:00 PM. 4. Certain regulations apply to migratory laborers - please refer to the Department of Labor for details. Both federal and Iowa law prohibits minors from working in hazardous or certain other occupations. Please contact the U.S. Department of Labor or the Iowa Workforce Development Center for more information on restricted occupations for minor employees. Iowa law also requires that any minor be given a 30-minute break after working 5 consecutive hours. Leaves of Absence Family Medical Leave Federal law required that employers with 50 or more employees must grant up to 12 weeks of unpaid family medical leave to employees who have completed a year of service or 1250 hours. This leave must be granted for the birth or adoption of a child, serious medical condition of the employee, to care for a family member with a serious medical condition, qualifying exigency for military leave and serious illness/injury of covered service member for military leave. After completion of the leave the employee must be reinstated to the same or an equivalent position (as regards to salary, benefits and seniority). Also, benefits, such as health care coverage and retirement benefits, must be maintained during leave. Iowa specifies that employees are eligible for pregnancy leave for disabilities caused or contributed to by pregnancy, miscarriage, childbirth and recovery. Written and unwritten employment policies and practices shall be applied to disabilities due to giving birth or pregnancy on the same terms and conditions as they are applied to other temporary disabilities. If sick leave is unavailable or insufficient, employers must grant a leave of absence of the lesser of the length of the disability or eight (8) weeks. Employees must Iowa Regs.doc 5 of 8

8 provide timely notice of the period of leave requested and employers must approve any change in the period requested before the change is effective. Military Leave Federal law requires that employees must be granted unlimited time to serve in the military and must be restored to their position (or an equivalent position) within the company as if they had been on furlough. Also, employers may not terminate or threaten to terminate any employee called to military service, Please see Libretto s White Paper on USERRA for more details on military leave. Iowa provides that employers are required to grant leave to employees who are members of the National Guard or U.S. reserves when they are called up for military service, without reducing their rights to employment benefits. The period of absence for military leave may not adversely affect rights to vacation, sick leave or other employment benefits. Employees must be restored to the position held prior to the leave of absence or a position of like seniority, status and pay. Disaster Services Leave Volunteer firefighters, reserve peace officers, emergency medical care providers and other personnel having voluntary emergency services duties and who are not paid full time by the entity for which the services are performed are protected from termination when responding to an emergency. The employer may deduct from an employee's regular pay an amount for the time that the employee is absent from work performing duties as such a volunteer. Voting Time Employees in Iowa have the right to three contiguous hours in which to vote in general elections in which they are eligible to vote. If they do not have three hours of non-working time when polls are open, they must be granted the additional time (up to three hours) in which to vote, provided a request is made prior to election day. The employer may specify the hours during which an employee may vote. This time off may not be deducted from pay for non-exempt employees. Jury Duty Employers must provide leave for jury duty, but need not pay for the leave. Also, employers may not terminate or threaten to terminate any employee called to jury duty, and employees must be restored to their position within the company as if they had been on furlough. Employees covered by FLSA exemptions serving on a jury must be paid their full salary (minus jury stipend) or risk losing their exemption status. Other Employment Regulations: Breast Feeding A woman may breast feed her child in any public place where she is authorized to be present. New Hire Reporting Employers are required to report to the state a new hire or rehire's name, address, SSN, date of birth as well as the employer's name, address, FEIN and whether employee has dependent health coverage available, date employee qualifies for coverage and address to which withholding orders should be sent within 15 days of hire/rehire on a federal for W-4 or equivalent. The reports are provided to Centralized Employee Registry. Iowa Regs.doc 6 of 8

9 Access to Personnel Files Employees are permitted access to evaluations, disciplinary records and other information concerning employer/employee relations. An employee may not have access to employment references. Employers must permit an employee to obtain a copy of his/her personnel file. Job Reference Liability It is unlawful for an employer to prevent or attempt to prevent a discharged employee from obtaining new employment, except by furnishing, upon request, a written, truthful statement as to the cause of the discharge. It is also unlawful for any company to blacklist any discharged employee who may have voluntarily left the company's services. An employer that provides work-related information about a current/former employee is generally immune from civil liability if the information is requested or authorized by the employee or requested by a prospective employer and the information is provided in good faith and without malice. Smoking Smoking is prohibited in enclosed public places and places of employment, with limited exceptions. Employers must communicate smoking prohibitions to all employees and prospective employees upon application. Employers must also remove all ashtrays from areas where smoking is prohibited. Signs containing "No Smoking" must be clearly and conspicuously posted at every entrance and place of employment where smoking is prohibited. Discrimination and Harassment Iowa prohibits discrimination or harassment based on: National origin Race or color Age (over 18) Religion AIDS and AIDS-related conditions Military service Mental or physical disability, or Sex (including sexual harassment, pregnancy, childbirth, and other pregnancyrelated conditions) Sexual orientation or gender identity Also, employers are prohibited from inquiring or requiring genetic testing results as a condition of employment. Employers with more than 15 employees are also subject to GINA, which prohibits discrimination based on genetic testing. Although Iowa does not have a specific law relating to sexual harassment for private employers, those with 15 or more employees are subject to Title VII of the Civil Rights Act, as amended, which prohibits sexual harassment. Iowa Regs.doc 7 of 8

10 State Continuation of Benefits Continuation of benefits change frequently. Currently, continuation coverage requirements generally apply to employers that provide group health insurance to employees. Eligible employees have the right to continue coverage for up to nine (9) months. The link below will provide further information: Resources/Posters Iowa Workforce Development Center United States Department of Labor Centralized Employee Registry Iowa Civil Rights Commission Related Libretto Products FLSA Resource Package (for help in determining overtime exempt / non-exempt status of employees) Overtime Guidelines Break Period Guidelines Family Medical Leave of Absence Policy Military Leave of Absence Policy Jury Duty-Witness Leave Policy Voting Time Policy Prohibited Harassment and Nondiscrimination Policy & Employee Acknowledgement COBRA Continuation Coverage Policy General Notice of COBRA Continuation Coverage Rights COBRA Continuation Coverage Election Information. Notice And Form New Hire Reporting for Iowa Iowa Regs.doc 8 of 8

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