July 1, 2008

An amendment to the Iowa Wage Payment Collection Law (chapter 91A) became effective on July 1, 2008.  Under the Law, as amended, employers cannot mail paychecks to employees unless the employee has given prior written authorization to do so.  Please note that the amendment applies to paychecks, not paystubs, so employees participating in direct deposit programs are not affected by the amendment.

The purpose of the amendment was to ensure that employees receive wages in a timely fashion.  The law also makes an employer liable for any bank overdraft charges assessed an employee if the employer fails to pay an employee’s wages on or by a regularly scheduled payday.

Please contact an attorney in the Ahlers & Cooney Employment Practice Group for assistance on this, or any other, matter.

The Ahlers & Cooney Employment & Labor Law Practice Group


About Ahlers & Cooney's Client Alerts

Our Client Alerts are intended to provide occasional general comments on new developments in Federal and State law and regulations which we believe might be of interest to our clients. The Client Alerts should not be considered opinions of Ahlers & Cooney, P.C., and are not intended to provide legal advice as a substitute for seeking professional counsel. Readers should not under any circumstance act upon the information in this publication without seeking specific professional counsel. Ahlers & Cooney will be pleased to provide additional details regarding any article upon request. Additional copies of this Client Alert may be obtained by contacting any attorney in the Firm or by visiting the Firm's website at www.ahlerslaw.com.
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