Rebuild Iowa Office Urges Employers To Learn and Obey Iowa's Labor Laws

DES MOINES – As Iowans continue to recover and rebuild disaster areas, it’s important to remind everyone to be conscious of contractors who may not be following Iowa’s laws related to wages, contractor registration and health and safety standards.

The Rebuild Iowa Office (RIO) and Iowa Workforce Development strongly urge Iowa business-owners, out-of-state business-owners and Iowans to review the necessary laws for operating in the state of Iowa.

Lt. Governor Patty Judge, the Executive Director of the Rebuild Iowa Office, says it is critical that all workforce issues be handled swiftly. "We appreciate those businesses that are here in good faith to help us rebuild areas devastated by flooding,” said Lt. Governor Judge. “However, we will not tolerate the exploitation of workers. These cases will be investigated and prosecuted to the fullest extent of the law."

Iowa Workforce Development has conducted extensive outreach efforts in the Cedar Rapids, Iowa City and Des Moines area to educate businesses, particularly those from out of state, on Iowa’s laws. Additionally, the agency is following-up on specific complaints as they arise.

“Iowans are concerned about the possible deceitful practices undertaken by a few companies as evident by the contacts the agency has received over the past few weeks,” indicated Iowa Labor Commissioner Dave Neil. “We will continue our ongoing education and outreach efforts across the state, particularly with out-of-state employers who may not be familiar with Iowa’s labor laws.”

Lt. Governor Judge and Labor Commissioner Neil strongly urge Iowans and businesses operating in the state to be aware of the following:

• The minimum wage in Iowa is $7.25 an hour.

• Iowa law requires workers be paid for every hour worked.

• Iowa law requires workers be paid for all fringe benefits, such as vacation pay, sick pay or food allowances that are promised by the employer.

• Iowa law places strict limits on what can be deducted from a worker’s wages.

• Individuals working in Iowa who feel they are not receiving the compensation promised or are not being paid minimum wage may submit a signed wage claim form to Iowa Workforce Development. The agency will process the claim and attempt to resolve it with the employer, or may file suit against the employer for wages, liquidated damages, court costs and attorney fees. Individuals may also file suit in small claims court or contact an attorney on their own.

• Employers must have written consent to mail an employee their paycheck.

• Construction contractors working in Iowa must register with Iowa Workforce Development, Division of Labor Services.

• Out-of-State contractors must have the appropriate bonds on file.

• Asbestos licenses and permits are required before a project can commence.

Individuals or businesses with concerns or questions about application of any of Iowa’s labor laws may access information at the following: