The Iowa General Assembly has been busy this month passing an increase in the gas tax and considering a number of issues this week that could directly and negatively impact Iowa employers.
Both the Iowa House and Senate passed SF 257, which increases state fuel taxes by 10 cents per gallon along with other fee increases. This bill is aimed at increasing revenue to the constitutionally protected road-use tax fund to address the critical needs that have been identified regarding Iowa’s transportation infrastructure. The bill passed with bipartisan support in both chambers with a 28-21 vote in the Senate and a 53-46 vote in the House. The governor signed the legislation, and it went into effect March 1.
The Iowa Senate passed bills increasing the minimum wage and imposing further penalties on employers who take wages from their employees, both deliberately and inadvertently. The minimum wage increase bill, Senate File 269, passed with a vote of 27-22. The legislation increases the minimum wage to $8.00 per hour on July 1, 2015, and to $8.75 per hour on July 1, 2016. The bill will be referred to the House Labor Committee, where its future is uncertain.
The Senate also passed Senate File 39, the bill addressing wage payment collection issues, with a 26-23 party line vote. This bill will place the burden of proof on employers and includes penalties where the wages were taken accidentally (employers should immediately rectify any errors, of course; the proposed penalty is in addition to that action). Like the minimum wage proposal, this bill will be referred to the Labor Committee, where its future is uncertain.
