labor lawAdivision of labor law center

Under a new law, Iowa employers must have an employee’s written permission before mailing a paycheck.

A change in Iowa’s Wage Payment Collection Law took effect recently. The change amended the existing Iowa payment law. The new law requires that employers have a written request from an employee before wages can be sent by mail. The law applies to paychecks, but not to paystub information.

The previous law permitted employers to mail paychecks when an employee made a verbal request, or at the employer’s discretion. While requiring written permission is a best practice in the HR field, Iowa is one of the few states to make that policy law.

Even employers who have routinely paid workers by mail must now have written authorization to do so.

The amendment to Iowa Code 91A.3 was passed by the Iowa Legislature and signed by Governor Chet Culver.

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 The US Department of Labor recently announced a grant of more than $17 million to Iowa to aid workers in areas affected by flooding and tornadoes.

“Our hearts go out to Iowans who are suffering from the ongoing flooding and who were victims of the recent tornadoes, including last week’s tragic loss of life at a Boy Scout camp,” said US Secretary of Labor Elaine L. Chao.  “This $17 million grant will pay for temporary jobs to aid in the cleanup and recovery from these natural disasters and will provide humanitarian assistance to Iowans in need.” 

As of June 16, nearly one-third of the state was under water, and flooding continued. A June 11 tornado touched down in a Boy Scout camp, killing 4 and injuring many others. The severe thunderstorms affected many areas of the Midwest, causing flooding in the Missouri, Upper Mississippi, and Ohio River Basins.

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New changes to the Family and Medical Leave Act (FMLA) would, among other things, alter the process involving the medical certification of a worker’s health condition.

The new regulations are important changes for employers in Iowa.

They are important changes because employees may take as much as 12 weeks of job protected and unpaid leave under FMLA every 12 months, provided they or their immediate family members have a “serious health condition.” Employers are allowed to require that a healthcare provider certify the condition, and may even ask for a second or third opinion, provided they, the employers, pick up the costs of those additional opinions.

The new U.S. Department of Labor regulations allow an employer to contact a healthcare provider for clarification of a specific medical certification form, as long as both the employer and the provider abide by HIPAA medical privacy regulations. Employers, under the new rules, are not allowed to ask for information that is not on the medical certification form already. There is an optional U.S. Labor Department form, WH-380, that has been updated but is still optional. Providers may name both diagnosis and serious health condition, but supplying the diagnosis is strictly voluntary on the provider’s part.

The new rules would also permit an employer to request recertification of what is called an “ongoing condition” at least one per 6-month period in connection with an employee’s absence. Although the word “request” is used, employers have the right to deny an FMLA leave request if the employee does not comply.

Employers may require a new medical certification each year in the event of an ongoing serious health condition. If the worker, for example, must take a day off periodically under FMLA because of migraine headaches, the employer may require yearly recertification.

Under the old rules, there are two situations under which an employer may request recertification.

First, recertification may be requested after 30 days, provided that the worker is currently absent under FMLA.

Second, recertification may be requested if a healthcare provider named a time limit on a previous medical certification.

However, some providers list a condition as “lifetime” or its duration “unknown,” which effectively blocked recertification.

More Iowa FMLA Changes

Family and Medical Leave Act (FMLA) regulations permit employers to require many workers taking FMLA leave to present a “fitness-for-duty” certificate from a healthcare professional when the employee wishes to resume work.

Proposed changes to the FMLA rules would revise the “fitness-for-duty” regulations in two significant ways.

First, employers would be permitted to require that every certification specifically refer to the employee’s ability to perform the major tasks of his or her job. In other words, a warehouse worker whose job normally includes lifting heavy boxes could be required to provide a certificate showing he or she is capable once again of lifting heavy objects.

A second change is designed to eliminate abuse of FMLA regulations by some workers. The change applies to those employees who take intermittent leave. If what is called a “reasonable safety concern” exists, then the employer has the right to require a “fitness-for-duty” certificate each time the employee uses FMLA leave and proposes to return to work. “Carl,” for example, is a truck driver with intermittent migraine headaches that interfere with his vision. Because a driver with poor vision is a reasonable safety concern, his employer may require Carl to supply a certificate every time he plans to return to the job.

If there is no valid safety concern, then an employer does not have the right to require recertification in intermittent situations. For example, “Maria” is pregnant and must take intermittent time off for serious morning sickness. Because her health condition does not pose a health risk, her employer may not require a “fitness-for-duty” certificate each time she takes a few hours or a day of FMLA leave and proposes to return to work.

These and other proposed changes announced by the U.S. Labor Department would affect employers throughout the nation. Employers and others may comment on the changes until April 11, 2008. Then the regulations will be published in the National Register and officially become law.

Requiring a “fitness-for-duty” certificate is something an employer must apply fairly and uniformly to all workers in similar situations.

The U.S. Department of Labor on February 21, 2008 announced a $250,000 Regional Innovation Grant to the state of Iowa to assist the Cedar Valley region in expanding its economic development efforts.

“Local leaders in the Cedar Valley region will use this $250,000 grant to work together on plans for preparing the area’s workforce for 21st century jobs,” said Deputy Assistant Secretary for Employment and Training Douglas F. Small.

The grant comes in the wake of long-term downsizing at John Deere & Co. plants in the area. The funding will be used to develop strategies that incorporate the region’s assets and create economic advantages. State officials hope that these strategies will attract employers and competitive employment opportunities for Iowa workers.

The grant, awarded to Iowa’s Office of Workforce Development, will support efforts to re-examine the Cedar Valley region’s economic development approach and break down political boundaries among local leaders. Activities to be conducted include asset mapping studies, the establishment of new economic and talent development strategies, and strengthening educational efforts in science, technology, engineering and math.

In the mid 1980s, John Deere & Co. employed approximately 16,000 workers in the Cedar Valley region of Iowa. Over time, the company has cut its local workforce to approximately 8,000 jobs.

The Cedar Valley region includes the northeast Iowa counties of Black Hawk, Bremer, Buchanan, Butler, Grundy and Chickasaw.

Regional Innovation Grants are drawn from National Emergency Grant funds to assist state workforce agencies and local workforce investment boards, as well as their key partners, in the design and development of comprehensive and strategic regional plans focused on talent development that is aligned with the demands of the 21st century economy.

When a community suffers from “significant dislocation events”, that state can apply for a National Emergency Grant (NEG). The grant will provide time-limited monies to improve state and local service levels when the “event” creates a need greater than the community can handle.

NEGs are awarded by the U. S. Department of Labor through the discretion of the Labor Secretary. During the past couple of years, Labor Secretary Elaine L. Chao has awarded several emergency grants. A grant of $250,000 was awarded to SI WORKS a new program to help economic development and employee opportunities in twenty counties in southern Illinois.

In 2007, Secretary Chao awarded an NEG to the displaced workers of Lamar, Missouri, when the O’Sullivan Industries Plant closed its doors.

When a plant closes or is forced to lay off several workers requiring resources beyond the state’s capability, the state can apply for an Emergency Grant. As part of the grant application process, the state’s discretionary funds must be included as part of the state’s resources.

The U. S. Department of Labor awards different grants for different situations.

When employees are in danger of losing their healthcare insurance, a Trade-Health Coverage Infrastructure grant may be awarded. This grant assists workers eligible for TRA (Trade Realignment Assistance) or TAA (Trade Adjustment Assistance.

If an area suffers layoffs of more than 50 workers and is affected by federal trade policies, a Trade-WIA Dual Enrollment grants may be awarded.

Communities struck by natural disasters such as hurricanes, floods, wildfires, etc. are eligible for Disaster grants.

Regional Innovation grants serve partnerships between non-profit and government agencies and business, often to train laid-off workers for jobs in a new industry.

Regular NEGs apply to layoffs of over 50 workers. When a layoff of fewer than 50 severely affects a small or rural community, or if layoffs are industry-wide in a region, a Regular NEG may be awarded.

Information on the grant application process and the policies regarding NEGs can be obtained from local and state employment agencies. Communities are urged to being the application process quickly, to ensure funds are available.

Governor Chet Culver signed legislation into law on January 25, 2007 to raise the Iowa state minimum wage. The bump occurred in two steps. The first increase went into effect on April 1, 2007, raising the minimum from $5.15 per hour to $6.20 per hour. On January 1, 2008, the second increase took place, raising the minimum wage another $1.05 from $6.20 to $7.25 per hour.

In less than one year, Iowa’s minimum wage jumped a whopping $2.10 per hour. As a result of this increase, Iowa joins the top tier of states regarding state minimum wage rates.

The rate for workers who earn tips went up as well, to $4.35 per hour. In addition, several “named enterprises” are now covered by the Iowa state minimum wage. Several industries are included in this group, such as all public agencies, residential facilities for the ill, elderly or handicapped. Facilities for gifted children, schools and preschools are also included in this group and must pay the state minimum wage.

Public transportation employees who work in a venue subject to local and state regulations are entitled to the state minimum. Laundry, dry cleaning and construction employees also must receive the state minimum wage.

Some businesses with revenue less than $300,000 per year are exempt from the state minimum wage law. If those companies engage in interstate commerce, though, the federal minimum wage of $5.85 per hour applies.

Daycare center employees are usually covered by the minimum wage law, even if the yearly revenue is less than $300,000. If the daycare center is an in-home facility it could be exempt. In-home centers that employ only immediate family members or those with fewer than 6 children are exempt from the state minimum wage law.

These changes in the minimum wage law, both state and federal, require Iowa businesses to update their labor law posters. Employing a labor law poster service is one way a company can keep up with the changes. These services automatically send out updated posters whenever the law changes.

In all, fourteen states increased the minimum wage with the new year.

Vermont, Missouri and New Mexico are among the fourteen states to raise its state minimum wage as of January 1, 2008. The increases in these fourteen states, however, are just the beginning of a year full of changes.

The past year has been a busy one for minimum wage changes, with a number of changes on both the federal and state levels.

On May 24, 2007, President George W. Bush signed the Fair Minimum Wage Act of 2007 into law. This law set up increases in the federal minimum wage as a three-step system. On July 24, 2008, the second step of the Fair Minimum Wage Act’s system goes into effect. The federal minimum wage will go up from $5.85 to $6.55 per hour.

Texas, Oklahoma, Utah and several other states connect the increases in their state minimum wage rates to when the federal minimum wage goes up. So, when the federal minimum wage increases on July 24, 2008, the minimum wage rates in these states will be increased, too.

Minimum wage in the District of Columbia is also tied to the federal minimum wage. The D.C. law, however, requires its minimum to be at least $1.00 more than the federal rate. On July 24, 2008, therefore, D.C.’s minimum wage rate will become $7.55 per hour, exactly $1.00 greater than the federal minimum of $6.55 per hour.

Employers must be aware that when any labor laws change, either state or federal, they must update their labor law posters. For more information businesses can go to www.laborlawcenter.com.