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S1034aa.....................................by COMMERCE AND HUMAN RESOURCES
WAGE CLAIM LAW - Repeals, adds to and amends existing law to revise Idaho's
wage claim law by improving the Department of Labor's administrative
process for handling wage claims; to make the department's wage claim
decisions enforceable; and to provide for imposition of a state lien to
collect unpaid wages after an administrative decision becomes final.
01/22 Senate intro - 1st rdg - to printing
01/25 Rpt prt - to Com/HuRes
02/05 Rpt out - rec d/p - to 2nd rdg
02/08 Unanimous consent to refer to 14th ord
02/10 Rpt out amen - to engros
02/11 Rpt engros - 1st rdg - to 2nd rdg as amen
02/12 2nd rdg - to 3rd rdg as amen
02/15 3rd rdg as amen - PASSED - 28-0-7
AYES--Andreason, Boatright, Branch, Bunderson, Burtenshaw, Cameron,
Crow, Darrington, Davis, Deide, Dunklin, Frasure, Geddes, Hawkins,
Keough, Lee, McLaughlin, Richardson, Riggs, Risch, Sandy, Schroeder,
Sorensen, Stegner, Thorne, Twiggs, Wheeler, Whitworth
NAYS--None
Absent and excused--Danielson, Ingram, Ipsen, King, Noh, Parry,
Stennett
Floor Sponsor - McLaughlin
Title apvd - to House
02/16 House intro - 1st rdg as amen - to Comm/Hu Res
02/26 Rpt out - rec d/p - to 2nd rdg as amen
03/01 2nd rdg - to 3rd rdg as amen
03/02 3rd rdg as amen - PASSED - 61-1-8
AYES -- Alltus, Barraclough, Barrett, Bell, Bieter, Black, Boe,
Bruneel, Callister, Campbell, Clark, Crow, Cuddy, Deal, Denney,
Ellsworth, Field(13), Field(20), Gagner, Geddes, Gould, Hadley,
Hammond, Hansen(23), Henbest, Hornbeck, Jaquet, Judd, Kempton,
Kendell, Kunz, Lake, Limbaugh, Linford, Marley, McKague, Meyer,
Montgomery, Mortensen, Moyle, Pischner, Pomeroy, Reynolds, Ridinger,
Ringo, Robison, Sali, Schaefer, Sellman, Smith, Stevenson, Stoicheff,
Stone, Taylor, Tilman, Tippets, Trail, Watson, Wheeler, Williams,
Zimmermann
NAYS -- Wood
Absent and excused -- Chase, Hansen(29), Jones, Kellogg, Loertscher,
Mader, Smylie, Mr Speaker
Floor Sponsor - Ridinger
Title apvd - to Senate
03/03 To enrol
03/04 Rpt enrol - Pres signed - Sp signed
03/05 To Governor
03/11 Governor signed
Session Law Chapter 51
Effective: 07/01/99
S1034|||| LEGISLATURE OF THE STATE OF IDAHO |||| Fifty-fifth Legislature First Regular Session - 1999IN THE SENATE SENATE BILL NO. 1034, As Amended BY COMMERCE AND HUMAN RESOURCES COMMITTEE 1 AN ACT 2 RELATING TO CLAIMS FOR WAGES; AMENDING SECTION 44-1508, IDAHO CODE, TO REVISE 3 THE ENFORCEMENT PROVISIONS FOR MINIMUM WAGE CLAIMS AND TO MAKE TECHNICAL 4 CORRECTIONS; AMENDING SECTION 45-601, IDAHO CODE, TO ADD DEFINITIONS AND 5 TO MAKE TECHNICAL CORRECTIONS; AMENDING SECTION 45-602, IDAHO CODE, TO 6 REVISE THE PREFERENCE FOR EMPLOYEES' WAGES AND TO CORRECT TERMINOLOGY; 7 AMENDING SECTION 45-603, IDAHO CODE, TO REVISE THE PREFERENCE FOR WAGES 8 UPON THE DEATH OF THE EMPLOYER AND TO CORRECT TERMINOLOGY; AMENDING SEC- 9 TION 45-604, IDAHO CODE, TO CORRECT TERMINOLOGY; AMENDING SECTION 45-605, 10 IDAHO CODE, TO MAKE TECHNICAL CORRECTIONS; AMENDING SECTION 45-606, IDAHO 11 CODE, TO REVISE REQUIREMENTS FOR THE PAYMENT OF WAGES UPON SEPARATION AND 12 TO MAKE TECHNICAL CORRECTIONS; AMENDING SECTION 45-607, IDAHO CODE, TO 13 REVISE THE PENALTY PROVISIONS FOR FAILURE TO PAY WAGES; AMENDING SECTION 14 45-608, IDAHO CODE, TO REVISE REQUIREMENTS FOR PAY PERIODS AND TO MAKE 15 TECHNICAL CORRECTIONS; AMENDING SECTION 45-609, IDAHO CODE, TO MAKE TECH- 16 NICAL CORRECTIONS; AMENDING SECTION 45-610, IDAHO CODE, TO REVISE REQUIRE- 17 MENTS FOR RECORDKEEPING AND TO MAKE TECHNICAL CORRECTIONS; AMENDING SEC- 18 TION 45-611, IDAHO CODE, TO MAKE TECHNICAL CORRECTIONS; AMENDING SECTION 19 45-612, IDAHO CODE, TO DELETE OBSOLETE REFERENCES; AMENDING SECTION 20 45-613, IDAHO CODE, TO MAKE TECHNICAL CORRECTIONS AND TO PROVIDE CORRECT 21 REFERENCES; AMENDING SECTION 45-614, IDAHO CODE, TO PROVIDE THAT A WAGE 22 CLAIM MAY BE FILED IN THE DEPARTMENT OR IN COURT AND TO DELETE CONFLICTING 23 LANGUAGE; REPEALING SECTION 45-615, IDAHO CODE; AMENDING CHAPTER 6, TITLE 24 45, IDAHO CODE, BY THE ADDITION OF A NEW SECTION 45-615, IDAHO CODE, TO 25 PROVIDE FOR THE COLLECTION OF WAGES BY SUIT AND TO PROVIDE FOR ATTORNEY'S 26 FEES AND COSTS; AMENDING SECTION 45-616, IDAHO CODE, TO CORRECT TERMINOL- 27 OGY, TO PROVIDE FOR RETENTION IN THE DEPARTMENT'S ACCOUNT OF UNCLAIMED 28 WAGES AND TO MAKE TECHNICAL CORRECTIONS; REPEALING SECTION 45-617, IDAHO 29 CODE; AMENDING CHAPTER 6, TITLE 45, IDAHO CODE, BY THE ADDITION OF A NEW 30 SECTION 45-617, IDAHO CODE, TO PROVIDE ADMINISTRATIVE PROCEDURES FOR WAGE 31 CLAIMS; AMENDING CHAPTER 6, TITLE 45, IDAHO CODE, BY THE ADDITION OF A NEW 32 SECTION 45-618, IDAHO CODE, TO PROVIDE FOR ADMINISTRATIVE ENFORCEMENT AND 33 COLLECTION OF WAGE CLAIMS; AMENDING CHAPTER 6, TITLE 45, IDAHO CODE, BY 34 THE ADDITION OF A NEW SECTION 45-619, IDAHO CODE, TO PROVIDE FOR JUDICIAL 35 REVIEW; AMENDING CHAPTER 6, TITLE 45, IDAHO CODE, BY THE ADDITION OF A NEW 36 SECTION 45-620, IDAHO CODE, TO ALLOW THE DEPARTMENT TO FILE LIENS TO COL- 37 LECT WAGE CLAIMS; AMENDING CHAPTER 6, TITLE 45, IDAHO CODE, BY THE ADDI- 38 TION OF A NEW SECTION 45-621, IDAHO CODE, TO PROVIDE PROCEDURES FOR THE 39 COLLECTION OF AMOUNTS SECURED BY LIENS; AMENDING SECTION 45-1901, IDAHO 40 CODE, TO INCLUDE LIENS OF THE DEPARTMENT IN THE LIST OF STATE LIENS; 41 AMENDING SECTION 45-1902, IDAHO CODE, TO REVISE THE DEFINITION OF A 42 DEBTOR; AMENDING SECTION 45-1903, IDAHO CODE, TO INCLUDE A CODE REFERENCE; 43 AMENDING SECTION 45-1904, IDAHO CODE, TO PROVIDE FOR WAGE CLAIMS IN A 44 NOTICE OF LIEN; AND AMENDING SECTION 45-1905, IDAHO CODE, TO INCLUDE WAGE 45 CLAIMS WITHIN THE SCOPE OF THE SECTION. 2 1 Be It Enacted by the Legislature of the State of Idaho: 2 SECTION 1. That Section 44-1508, Idaho Code, be, and the same is hereby 3 amended to read as follows: 4 44-1508. ENFORCEMENT. (1) When the director of the department of labor 5 has reason to believe that an employer is engaged in an act or practice which 6 violates or will violate a provision of chapter 15, title 44, Idaho Code, he 7 may bring an action in a court of competent jurisdiction to enjoin the act or 8 practice, and to enforce compliance with the provisions of chapter 15, title 9 44, Idaho Code. Upon a proper showing, a permanent or temporary injunction or 10 restraining order shall be granted without bond. 11 (2) A claim for unpaid minimum wages as set forth in section 44-1502, 12 Idaho Code, may be treated as a claim for wages due and owing under chapter 6, 13 title 45, Idaho Code.Enforcement or suit under chapter 6, title 45,14Idaho Code, for unpaid minimum wages may be commenced by the employee or15employees affected, or by the department of labor whether a wage claim has16been filed with the department or not.Such claim shall not be subject 17 to the limitation contained in section 45-6157 (1), 18 Idaho Code, if brought by the department of labor. Any action for 19 such wages must be commenced in a court of competent jurisdiction within two 20 (2) years after the cause of action shall have accrued. 21 SECTION 2. That Section 45-601, Idaho Code, be, and the same is hereby 22 amended to read as follows: 23 45-601. DEFINITIONS. Whenever used in this chapter: 24 ( 1.) "Claimant" means an employee who 25 filed a wage claim with the department in accordance with this chapter and as 26 the director may prescribe. 27 (2) "Department" means the department of labor. 28 (3) "Director" means the director of the department of labor 29 .of the state of Idaho.302.(4) "Employee" means any person suffered or 31 permitted to work by an employer. 323.(5) "Employer" means any individual, partner- 33 ship, association, joint stock company, trust, corporation, the administrator 34 or executor of the estate of a deceased individual, or the receiver, trustee, 35 or successor of any of the same, employing any person. 36 (6) "Wage claim" means an employee's claim against an employer for 37 compensation for the employee's own personal services, and includes any wages, 38 penalties, or damages provided by law to employees with a claim for unpaid 39 wages. 404.(7) "Wages" means compensation for labor or 41 services rendered by an employee, whether the amount is determined on a time, 42 task, piece or commission basis. 43 SECTION 3. That Section 45-602, Idaho Code, be, and the same is hereby 44 amended to read as follows: 45 45-602. WAGES OFSERVANTS AND LABORERSEMPLOYEES 46 PREFERRED. In all assignments of property made by any person to 47 trustees or assignees, or in proceedings in insolvency,the48 an employee's wagesof the miners, mechanics, salesmen, servants,49clerks or laborersfor services rendered within sixty (60) days3 1nextpreceding such assignment, not exceedingone2 five hundredfiftydollars ($150 0 3 ),areis a preferred claims, and 4 must be paid by such trustees or assignees before any creditor or creditors 5 of the assignor or insolvent debtor:; provided, 6 that whenever any suchminer, mechanic, salesman, servant, clerk or7laboreremployee has filed a notice of lien against any 8 property of the assignor,hethe employee may elect 9 between the provisions of this section andhisthe 10 employee's lien. 11 SECTION 4. That Section 45-603, Idaho Code, be, and the same is hereby 12 amended to read as follows: 13 45-603. PREFERENCE OF WAGES -- DEATH OF EMPLOYER. In case of the death of 14 any employer, the wages of eachminer, mechanic, salesman, clerk, ser-15vant and laborer,employee for services rendered within 16 the sixty (60) daysnextpreceding the death of the employer, not 17 exceedingonefive hundredfiftydol- 18 lars ($150 0 ), rank in priority next after the 19 funeral expenses;, expenses of the last 20 sickness;, the charges and expenses of administering 21uponthe estate, and the allowance of thewidow22 surviving spouse andinfantminor chil- 23 dren, and must be paid before any other claims against the estate of the 24 deceased person. 25 SECTION 5. That Section 45-604, Idaho Code, be, and the same is hereby 26 amended to read as follows: 27 45-604. PREFERENCE OF WAGES ON EXECUTION AND ATTACHMENT. In cases of exe- 28 cutions, attachments and writs of similar nature, issued against any person or 29 his property, except for claims for labor done, anyminers, mechanics,30salesmen, servants, clerks or laborers,employee who31havehas claims against the defendant for labor done upon 32 the property levied on, may give notice of their claim and the amount thereof, 33 sworn to by the person making the claim, to the creditor orhis34 the creditor's agent or attorney and to the officer executing any 35 of such writs, at any time before the actual sale of the property levied upon; 36 and, unless such claim is disputed by the debtor or creditor, such officer 37 must pay to such person out of the proceeds of the sale of any property on 38 which such person has bestowed labor, the amounthesuch 39 person is entitled to receive for his services rendered within the 40 sixty (60) daysnextpreceding the levy of the writ. If any or 41 all other claims so presented and claiming preference under this section are 42 disputed by either the debtor or a creditor, the person presenting the same 43 must commence an action within ten (10) days for the recovery thereof, and 44 must prosecutehisthe action with due diligence or 45 be forever barred from any claim of priority of payment thereof, and the offi- 46 cer shall retain possession of so much of the proceeds of the sale as may be 47 necessary to satisfy such claim until the determination of such action, and in 48 case judgment be had for the claim or any part thereof, carrying costs, the 49 costs taxable therein shall likewise be a preferred claim with the same rank 50 as the original claim. 4 1 SECTION 6. That Section 45-605, Idaho Code, be, and the same is hereby 2 amended to read as follows: 3 45-605. DEBTOR OR CREDITOR MAY DISPUTE CLAIM. The debtor or creditor 4 intending to dispute a claim presented under the provisions ofthe last5section 45-604, Idaho Code , shall, within ten (10) days 6 after receiving notice of such claim, serve upon the claimant and the officer 7 executing the writ, a statement in writing, verified by the oath of the 8 debtor , or his agent or attorney, or the oath of the 9 person disputing such claim, or his agent or attorney, setting forth that no 10 part of said claim, or not exceeding a sum specified, is justly due from the 11 debtor to the claimant for services rendered within the sixty (60) days12nextpreceding the levy of the writ. If the claimant brings suit on a 13 claim which is disputed in part only, and fail s to recover a sum 14 exceeding that which was admitted to be due,hethe claim- 15 ant shall not recover costs, but costs shall be adjudged against16himthe claimant . 17 SECTION 7. That Section 45-606, Idaho Code, be, and the same is hereby 18 amended to read as follows: 19 45-606. PAYMENT OF WAGES UPON SEPARATION FROM EMPLOYMENT. ( 20 1.) Upon layoff, or upon termination of 21 employment by either the employer or employee, the employer shall pay or make 22 available at the usual place of payment all wages then due the employee by the 23 earlier of the next regularly scheduled payday or within ten (10) days of such 24 layoff or termination, weekends and holidays excluded. However, if the 25 employee makes written request upon the employer for earlier payment of wages, 26 all wages then due the employee shall be paid within forty-eight (48) hours 27 of the receipt of such request, weekends and holidays excluded. 28 ( 2.) Unless exempt from the minimum wage 29 requirements of chapter 15, title 44, Idaho Code, employees who are not being 30 paid on an hourly or salary basis must be paid at least the applicable minimum 31 wage for all hours worked in the pay period immediately preceding layoff or 32 termination from employment. The minimum wage payment shall be made within the 33 same time limitations provided for in subsection (1) of this section. Any 34 additional wages owed to employees shall be paid by the next regularly sched- 35 ule payday. 36 (3) The directorof the department of labormay, upon 37 application showing good and sufficient reasons, grant an employer a temporary 38 extension to any time limitation provided in this section. 39 SECTION 8. That Section 45-607, Idaho Code, be, and the same is hereby 40 amended to read as follows: 41 45-607. PENALTY FOR FAILURE TO PAY. Whenever an employer fails to pay all 42 wages then due an employee at the times due under section 45-606, Idaho Code, 43 then the employee'sregularwageshe would have been enti-44tled to had he rendered services in the manner as last employed,shall 45 continue at the same ratefrom the day wages are dueas if 46 services had been rendered in the manner as last employed until paid in 47 full or forthirty (30)fifteen (15) days, whichever 48 is less. However, in no event can the maximum penalty exceed seven hun- 49 dred fifty dollars ($750), and if the full amount of the wages are paid prior 50 to the filing of a lien pursuant to section 45-620, Idaho Code, the maximum 5 1 penalty shall not exceed five hundred dollars ($500). 2NoAny employee who secretes or absents himself 3 to avoid payment, or refuses to receivethe samepayment 4 when made available as provided for in section 45-606, Idaho Code, 5 shall not be entitled to any penalty under this chapter. 6Every employee shall have such lien and all other rights and reme-7dies for the protection and enforcement of such unpaid wages and penalties as8he would have been entitled to had he rendered services therefor in the manner9as last employed, including costs of suit and reasonable attorney's fees if a10demand is made, in writing, at least five (5) days before suit is brought, for11a sum not to exceed the amount found due by decision of the court or verdict12of the jury.13 SECTION 9. That Section 45-608, Idaho Code, be, and the same is hereby 14 amended to read as follows: 15 45-608. PAY PERIODS -- PENALTY. ( 1.) 16Every eE mployer s shall pay all 17 wages due tohistheir employees at least once dur- 18 ing each calendar month, on regular paydays designated in advance by the 19 employer, in lawful money of the United States or with checks on banks where 20 suitable arrangements are made for the cashing of such checks without charge 21 to the employee. Nothing contained herein shall prohibit an employer from 22 depositing wages due or to become due or an advanceonof 23 wages to be earned in an account in a bank, savings and loan associa- 24 tion or credit union of the employee's choice ,in the25state,provided that the employee has voluntarily authorized such 26 deposit. If the employee revokes such authorization for deposit, it shall be 27 deemed terminated and the provisions herein relating to the payment of wages 28 shall apply. 29 ( 2.) The end of the pay period for 30 which payment is made on a regular payday shall be not more thanten31(10)fifteen (15) days before such regular payday; pro- 32 vided that if the regular payday falls on a nonworkday payment shall be made 33 on a preceding workday. 34 ( 3.) The director may, upon appli- 35 cation showing good and sufficient reasons, permit an employer to withhold 36 payment of wages more than theten (10)fifteen (15) 37 day period as specified in subsection ( 2 ) of this 38 section. 39 ( 4.) The director may, pursuant to 40 his authority, levy a civil penalty upon any employer who has failed to obtain 41 the exemption provided in subsection ( 3 ) of this 42 section and who has beendulydetermined to have undertaken a 43 consistent pattern of untimely payment of wages to his employees. Such penalty 44 shall not exceed five hundred dollars ($500) for such employer per pay period. 45 SECTION 10. That Section 45-609, Idaho Code, be, and the same is hereby 46 amended to read as follows: 47 45-609. WITHHOLDING OF WAGES. (1) No employer may withhold 48 or divert any portion of an employee's wages unless: 491.(a) The employer is required or empowered to 50 do so by state or federal law,; or 512.(b) The employer has a written authorization 6 1byfrom the employee for deductions for a lawful 2 purpose. 3 (2) An employer shall furnish each employee with a statement 4 of deductions made fromhisthe employee's wages for 5 each pay period such deductions are made. The willful failure of any employer 6 to comply with the provisions of this subsection shall constitute a misde- 7 meanor. 8 SECTION 11. That Section 45-610, Idaho Code, be, and the same is hereby 9 amended to read as follows: 10 45-610. RECORDS TO BE KEPT BY EMPLOYER -- NOTICE TO EMPLOYEES. ( 11 1.) Employment records must be maintained for 12 a minimum period oftwo (2)three (3) years from the 13 last date of the employee's service. 14 ( 2.) Every employer shall15notify hisgive notice to its employees at the time of 16 hiring of the rate of pay and the usual day of payment, and shall provide such 17 information in writing to the employee upon the employee's request. 18 ( 3.) Every employer shall19notify hisgive notice to its employees of any reduction 20 in wages,prior to the work being performed and 21 shall provide such information in writing to the employee upon the employee's 22 request. 23 SECTION 12. That Section 45-611, Idaho Code, be, and the same is hereby 24 amended to read as follows: 25 45-611. WAGES THAT ARE IN DISPUTE. ( 1.) 26 In case of a dispute as to the amount of wages due an employee, the 27 employer shall pay, without condition and within the time set by this chapter, 28 all wages, or parts thereof, conceded by the employer to be due, leaving to 29 the employee all remedieshethe employee might 30 otherwise be entitled to, including those provided under this chapter, as to 31 any balance claimed. Whenever an employershallpay s 32 all wages not in dispute within the time limits set forth in section 45-606, 33 Idaho Code,thenno penalties may be assessed under this chapter, 34 unless it can be shown that the remaining balance of wages due were withheld 35 willfully, arbitrarily and without just cause. 36 ( 2.) The acceptance by an employee 37 of a check with any restrictive endorsement as payment under this section 38 shall not constitute a release or accord and satisfaction with respect to the 39 disputed amount. 40 SECTION 13. That Section 45-612, Idaho Code, be, and the same is hereby 41 amended to read as follows: 42 45-612. FILING FALSE CLAIM -- PENALTY. (1) Any person making a false 43 claim for wages or other compensation under this chapter, knowing the same to 44 be false, shall be guilty of a misdemeanor and shall be punishable by confine- 45 ment in the county jail for a period not to exceed six (6) months, or by a 46 fine, not to exceed one thousand dollars ($1,000), or both. 47 (2) Any employee initiating a civil proceeding to collect unpaid wages or 48 other compensation,either on his own behalf or through the director,49which is based in whole or in part on a false claim which the employee 7 1 knew to be false at the time the employee brought the action , 2or filed a claim with the director,shall be liable for 3 attorney's fees and costs incurred by the employer in defending against the 4 false claim, as well as any attorney's fees and costs, or other adminis-5trative costs incurred by the director in any investigation of or proceeding6to collect the wages or other compensation falsely claimed by the employee7. Proof of a criminal conviction under subsection (1) of this section 8 shall not be required for recovery of the fees and costs provided for in this 9 subsection. 10 SECTION 14. That Section 45-613, Idaho Code, be, and the same is hereby 11 amended to read as follows: 12 45-613. DISCHARGING OR RETALIATING AGAINST EMPLOYEES ASSERTING RIGHTS 13 UNDER THIS CHAPTER. No employer shall discharge or in any other manner retali- 14 ate against any employee because that employee has made a complaint to15histhe employer , or to thedirector16or his authorized representative,department, or filed suit 17 alleging thathethe employee has not been 18 paid in accordance with the provisions of this chapter, or because the 19 employee has testified or may be about to testify in an investigation or 20 hearing undertaken by the department .of labor.21The provisions of this section shall not be construed to otherwise 22 restrict the discipline or termination of an employee. 23 SECTION 15. That Section 45-614, Idaho Code, be, and the same is hereby 24 amended to read as follows: 25 45-614. COLLECTION OF WAGES -- LIMITATIONS. Any person shall have the 26 right to collectsalary,wages,overtime compensation,27penalties and liquidated damages provided by any law or pursuant to a 28 contract of employment, but any action thereon shall be filed either 29 with the department or commenced in a court of competent jurisdiction 30 within two (2) years after the cause of actionshall have31 accrued, provided, however, that in the event salary or wages have been paid 32 to any employee and such employee claims additional salary, wages,over-33time compensation,penalties or liquidated damages, because of work 34 done or services performed during his employment for the pay period covered by 35 said payment, any action therefor shall be commenced within six (6) months 36 from the accrual of the cause of action. It is further provided that if any 37 such cause of action has accrued prior to the effective date of this act, and 38 is not barred by existing law, action thereon may be commenced within six (6) 39 months from the effective date of this act. In the event an action is not com- 40 menced as herein provided, any remedy on the cause of action shall be forever 41 barred.The limitation periods provided herein shall be tolled during42the time a claim is pending before the director pursuant to section 45-616,43Idaho Code, for a period not to exceed six (6) months.44 SECTION 16. That Section 45-615, Idaho Code, be, and the same is hereby 45 repealed. 46 SECTION 17. That Chapter 6, Title 45, Idaho Code, be, and the same is 47 hereby amended by the addition thereto of a NEW SECTION , to be 48 known and designated as Section 45-615, Idaho Code, and to read as follows: 8 1 45-615. COLLECTION OF WAGE CLAIMS BY SUIT -- ATTORNEY'S FEES AND COSTS. 2 (1) As an alternative to filing a wage claim with the department, any person 3 may assert a wage claim arising under this chapter in any court of competent 4 jurisdiction or pursue any other remedy provided by law. 5 (2) Any judgment rendered by a court of competent jurisdiction for the 6 plaintiff in a suit filed pursuant to this section may include all costs and 7 attorney's fees reasonably incurred in connection with the proceedings and the 8 plaintiff shall be entitled to recover from the defendant either the unpaid 9 wages plus the penalties provided for in section 45-607, Idaho Code; or dam- 10 ages in the amount of three (3) times the unpaid wages found due and owing, 11 whichever is greater. 12 SECTION 18. That Section 45-616, Idaho Code, be, and the same is hereby 13 amended to read as follows: 14 45-616. ENFORCEMENT. ( 1.) The 15 director shall enforce and administer the provisions of this chapter . 16and tT he directoror his authorized17representatives areis empowered to hold hearings and 18 otherwisetoinvestigate violations or alleged violations of this 19 chapter and any rulesand regulations in forcepromulgated 20 pursuant thereto, andfurther,to issue orders for admin- 21 istrative remedies as authorized. 22 ( 2.) The directoror his23authorized representatives areis empowered to enter and 24 inspectsuchplaces, questionsuchemployees, and 25 investigatesuchfacts, conditions, or matters asthey26the director may deem appropriate to determine whether any 27 person has violated any provision of this chapter or any ruleor regula-28tion issuedpromulgated thereunder or which may aid in the 29 enforcement of the provisions of this chapter. 30 ( 3.) The directoror his31authorized representativeshall have the power to administer oaths and 32 examine witnesses under oath or otherwise, and issuecom-33pulsory processsubpoenas to compel the attendance of 34 witnesses,and the production ofpapers, books, accounts,35records, payrolls, documents, and testimony, and to take depositions and affi-36davitsany evidence deemed necessary in the administration 37 of this chapter. 38 ( 4.)In case of failure of39If any person fails to comply with any40compulsory processsubpoena lawfully issued, it shall be 41 the duty of the district court, on application by the director, to compel com- 42 pliance by citation for contempt. 43 ( 5.) An employer shall furnish to 44 the department the informationitthe department is 45 authorized to acquire under this section when the request is submitted in 46 writing. 47 (6) The department shall attempt for a period of not less than two 48 (2) years from the date of collection, to make payment of wages collected 49 under this chapter to the person entitled thereto. Wage claims collected by 50 the department that remain unclaimed for a period of more than two (2) years 51 from the date collected shall on June 30th of each year be forfeited and 52 retained in the department's account and used for the administration of this 53 chapter. 9 1 SECTION 19. That Section 45-617, Idaho Code, be, and the same is hereby 2 repealed. 3 SECTION 20. That Chapter 6, Title 45, Idaho Code, be, and the same is 4 hereby amended by the addition thereto of a NEW SECTION , to be 5 known and designated as Section 45-617, Idaho Code, and to read as follows: 6 45-617. ADMINISTRATIVE PROCEEDINGS FOR WAGE CLAIMS. (1) Wage claims filed 7 with the department, excluding potential penalties, are limited by the same 8 dollar amount that limits actions before the small claims department of the 9 magistrate's division of the district court. 10 (2) The contested case provisions of the Idaho administrative procedures 11 act, chapter 52, title 67, Idaho Code, are inapplicable to proceedings involv- 12 ing wage claims under this chapter. 13 (3) Once a wage claim has been properly filed with the department, the 14 provisions of this section shall provide the exclusive remedy for resolving 15 the wage claim. If at any time after the filing of the wage claim the depart- 16 ment determines that it lacks jurisdiction over the wage claim, the department 17 shall provide written notification of its determination to the claimant and 18 the employer. The claimant may then assert the wage claim in any court of 19 competent jurisdiction. In the event the department determines that it lacks 20 jurisdiction over the wage claim, the limitation periods provided for in sec- 21 tion 45-614, Idaho Code, shall be tolled from the date the wage claim was 22 filed with the department until the date notice that the department lacks 23 jurisdiction is mailed to the claimant, as provided in subsection (5) of this 24 section. 25 (4) A department compliance officer shall examine wage claims filed with 26 the department and, on the basis of the facts found, shall determine whether 27 the wage claimant is entitled to an award for unpaid wages and penalties. If 28 the compliance officer is unable to determine whether wages and penalties are 29 owed, the claim may be referred to a hearing officer for a determination. The 30 department may adjust the amount of penalties awarded for an employer's fail- 31 ure to comply with the requirements of section 45-606, Idaho Code. The 32 department may award no penalty, or may award a penalty in any amount up to 33 the maximum amount allowed under section 45-607, Idaho Code. No penalty shall 34 be awarded by the department unless a specific finding is made that wages were 35 withheld willfully, arbitrarily and without just cause. The department's 36 determination shall include findings of fact and conclusions of law. Before 37 the determination becomes final or an appeal is filed, the compliance or hear- 38 ing officer that issued the determination may, on their own motion, issue a 39 revised determination. The determination or revised determination shall become 40 a final determination unless, within fourteen (14) days after notice, as pro- 41 vided in subsection (5) of this section, an appeal is filed by the claimant or 42 the employer with the department. If an appeal is not timely filed, the amount 43 awarded by a final determination shall become immediately due and payable to 44 the department. A final determination may be enforced by the department in 45 accordance with section 45-618, Idaho Code. 46 (5) The claimant and the employer shall be entitled to prompt service of 47 notice of determinations and decisions. A notice shall be deemed served if 48 delivered to the person being served or if mailed to his last known address. 49 Service by mail shall be deemed complete on the date of mailing. The date 50 indicated on department determinations or decisions as the "date of mailing" 51 shall be presumed to be the date the document was deposited in the United 52 States mail, unless otherwise shown by a preponderance of competent evidence. 53 (6) An appeal from a wage claim determination shall be in writing, signed 10 1 by the appellant or the appellant's representative and shall contain words 2 that, by fair interpretation, request the appeal process for a specific deter- 3 mination of the department. The appeal may be filed by personal delivery, by 4 mail, or by fax to the wage and hour section of the department at the address 5 indicated on the wage claim determination. The date of personal delivery 6 shall be noted on the appeal and shall be deemed the date of filing. If 7 mailed, the appeal shall be deemed to be filed on the date of mailing as 8 determined by the postmark. A faxed appeal that is received by the wage and 9 hour section by 5:00 p.m. on a business day shall be deemed filed on that 10 date. A faxed appeal that is received by the wage and hour section on a week- 11 end, holiday or after 5:00 p.m. on a business day shall be deemed filed on the 12 next business day. 13 (7) To hear and decide appeals from determinations, the director shall 14 appoint appeals examiners who have been specifically trained to hear wage 15 claims. Unless the appeal is withdrawn, the appeals examiner shall affirm, 16 modify, set aside or reverse the determination involved, after affording the 17 claimant and the employer reasonable opportunity for a fair hearing, or may 18 refer a matter back to the compliance or hearing officer for further action. 19 The appeals examiner shall notify the claimant and the employer of his deci- 20 sion by serving notice in the same manner as provided in subsection (5) of 21 this section. The decision shall set forth findings of fact and conclusions of 22 law. The appeals examiner may, either upon application for rehearing by the 23 claimant, the employer, or on his own motion, rehear, affirm, modify, set 24 aside or reverse any prior decision on the basis of the evidence previously 25 submitted or on the basis of additional evidence; provided, that such applica- 26 tion or motion be made within ten (10) days after the date of service of the 27 decision. A complete record shall be kept of all proceedings in connection 28 with an appealed wage claim. All testimony at any hearing shall be recorded. 29 Witnesses subpoenaed by the appeals examiner shall be allowed fees at a rate 30 prescribed by the director. If the claimant or the employer formally requests 31 the appeals examiner to issue a subpoena for a witness whose evidence is 32 deemed necessary, the appeals examiner shall promptly issue the subpoena, 33 unless such request is determined to be unreasonable. Unless the claimant or 34 the employer, within fourteen (14) days after service of the decision of the 35 appeals examiner, seeks judicial review pursuant to section 45-619, Idaho 36 Code, or unless an application or motion is made for a rehearing of such deci- 37 sion, the decision of the appeals examiner shall become final and the amount 38 awarded by the decision shall become immediately due and payable to the 39 department. A decision that has become final may be enforced by the department 40 according to section 45-618, Idaho Code. 41 (8) No person acting on behalf of the director shall participate in any 42 case in which he has a direct or indirect personal interest. 43 (9) (a) Any right, fact, or matter in issue, directly based upon or nec- 44 essarily involved in a determination or decision of the appeals examiner 45 which has become final, shall be conclusive for all the purposes of this 46 chapter as between the claimant and the employer who had notice of such 47 determination or decision. Subject to judicial review as set forth in this 48 chapter, any determination or decision shall be conclusive for all pur- 49 poses of this chapter and shall not be subject to collateral attack irre- 50 spective of notice. 51 (b) No finding of fact or conclusion of law contained in a determination 52 or decision rendered pursuant to this chapter by an appeals examiner, a 53 court, or any other person authorized to make such determinations shall 54 have preclusive effect in any other action or proceeding, except proceed- 55 ings that are brought: 11 1 (i) Pursuant to this chapter; 2 (ii) To collect wage claims; or 3 (iii) To challenge the constitutionality of provisions of this chap- 4 ter or administrative proceedings under this chapter. 5 SECTION 21. That Chapter 6, Title 45, Idaho Code, be, and the same is 6 hereby amended by the addition thereto of a NEW SECTION , to be 7 known and designated as Section 45-618, Idaho Code, and to read as follows: 8 45-618. ADMINISTRATIVE ENFORCEMENT AND COLLECTION OF WAGE CLAIMS. (1) A 9 department determination, if not appealed to an appeals examiner; or a deci- 10 sion of the appeals examiner, if judicial review is not sought; or a court 11 order following judicial review, may be enforced by the department according 12 to section 45-620, Idaho Code. 13 (2) If at any time the department determines, in its sole discretion, 14 that a wage claim upon which a lien was filed pursuant to section 45-620, 15 Idaho Code, is no longer collectable, the department shall: 16 (a) Transfer the state lien from the central lien filing system of the 17 secretary of state to the district court in the county of the debtor's 18 last known address. A lien transferred pursuant to this subsection shall 19 be entered in the judgment docket of the district court and recorded as a 20 transferred lien with the effective date of the lien being the date it was 21 initially filed with the secretary of state. 22 (b) Notify the claimant in writing, at the claimant's last known address, 23 that the lien has been transferred and advise the claimant that no further 24 action will be maintained by the department on the wage claim, and that 25 from the date of the transfer, it shall be the claimant's sole responsi- 26 bility to maintain and enforce the lien. 27 (3) A lien transferred pursuant to this section shall be enforceable by 28 the claimant in the same manner and with the same effect as if the lien had 29 been a judgment of the district court. 30 SECTION 22. That Chapter 6, Title 45, Idaho Code, be, and the same is 31 hereby amended by the addition thereto of a NEW SECTION , to be 32 known and designated as Section 45-619, Idaho Code, and to read as follows: 33 45-619. JUDICIAL REVIEW. (1) A claimant or employer aggrieved by a final 34 decision of the appeals examiner may obtain judicial review of the decision 35 pursuant to the provisions of chapter 52, title 67, Idaho Code, and the provi- 36 sions of this section. 37 (2) If the employer files a petition for judicial review in a court of 38 competent jurisdiction contesting the appeals examiner's decision, the 39 employer, not later than the twenty-eighth day after the date the appeals 40 examiner's decision became final, shall either: 41 (a) Deposit the full amount awarded to the claimant with the department, 42 to be placed by the department in an interest-bearing escrow account of a 43 fully insured financial institution; or 44 (b) Post a bond, written by a fidelity, surety, guaranty, title or trust 45 company authorized to do business in the state of Idaho. The bond must be 46 in the full amount of the appeals examiner's decision and shall state that 47 the company issuing or executing the bond agrees to pay to the department 48 on behalf of the employer all sums found to be due and owing by the 49 employer by reason of the outcome of the appeal, within thirty (30) days 50 of the filing of the court's decision. A copy of the bond shall be served 51 upon the department and the claimant; or 12 1 (c) File an affidavit of inability to either post a bond or send to the 2 department the amount awarded to the claimant. 3 (3) The employer's failure to timely post a bond or send the amount 4 required by subsection (2) of this section shall constitute a waiver of the 5 right to judicial review. 6 (4) If, after judicial review, it is determined that some or all of the 7 wages are not owed or the penalty is reduced or is not assessed, the depart- 8 ment shall remit the appropriate amount to the employer, plus the interest 9 accrued on the escrowed amount, or collect from the bond only the amount 10 awarded by the court on appeal, up to the maximum amount of the bond. 11 SECTION 23. That Chapter 6, Title 45, Idaho Code, be, and the same is 12 hereby amended by the addition thereto of a NEW SECTION , to be 13 known and designated as Section 45-620, Idaho Code, and to read as follows: 14 45-620. LIENS. (1) Upon the failure of any person to pay any amount when 15 due pursuant to section 45-617, Idaho Code, the department may file with the 16 office of the secretary of state, as provided in chapter 19, title 45, Idaho 17 Code, a notice of lien. 18 (2) Upon delivery to the secretary of state, the notice of lien shall be 19 filed and maintained in accordance with chapter 19, title 45, Idaho Code. When 20 such notice is duly filed, all amounts due shall constitute a lien upon the 21 entire interest, legal or equitable, in any property of such person, real or 22 personal, tangible or intangible, not exempt from execution, situated in the 23 state. Such lien may be enforced by the director or by any sheriff of the var- 24 ious counties in the same manner as a judgment of the district court duly 25 docketed and the amount secured by the lien shall bear interest at the rate of 26 the state statutory legal limit on judgments. The foregoing remedy shall be in 27 addition to all other remedies provided by law. 28 (3) In any suit or action involving the title to real or personal prop- 29 erty against which the state has a perfected lien, the state shall be made a 30 party to such suit or action. 31 SECTION 24. That Chapter 6, Title 45, Idaho Code, be, and the same is 32 hereby amended by the addition thereto of a NEW SECTION , to be 33 known and designated as Section 45-621, Idaho Code, and to read as follows: 34 45-621. COLLECTION OF LIEN AMOUNTS. (1) In addition to all other remedies 35 or actions provided by this chapter, it shall be lawful for the director or 36 his agent to collect any amounts secured by liens created pursuant to this 37 chapter by seizure and sale of the property of any person liable for such 38 amounts who fails to pay the same within thirty (30) days from the mailing of 39 notice and demand for payment thereof. 40 (2) Property exempt from seizure shall be the same property that is 41 exempt from execution as otherwise allowed by law. 42 (3) In exercising his authority under subsection (1) of this section, the 43 director may levy, or by his warrant, authorize any of his representatives, a 44 sheriff or deputy to levy upon, seize and sell any nonexempt property belong- 45 ing to any person liable for the amounts secured by the lien. 46 (4) When a warrant is issued by the department for the collection of any 47 amount due pursuant to a lien authorized by this chapter, it shall be directed 48 to any authorized representative of the department, or to any sheriff or dep- 49 uty, and any such warrant shall have the same force and effect as a writ of 50 execution. It may be levied and sale made pursuant to it in the same manner 51 and with the same force and effect as a levy and sale pursuant to a writ of 13 1 execution. Upon the completion of his services pursuant to said warrant, the 2 sheriff or deputy shall receive the same fees and expenses as are provided by 3 law for services related to a writ of execution. All such fees and expenses 4 shall be an obligation of the person liable for the amounts due and shall be 5 collected from such person by virtue of the warrant. Any warrant issued by the 6 director shall contain, at a minimum, the name and address of the liable per- 7 son; the nature of the underlying liability; the date the liability was incur- 8 red; the amount of the liability secured by the lien; the amount of any pen- 9 alty, interest or other amount due under the lien; and the interest rate on 10 the lien. 11 (5) Whenever any property that is seized and sold by virtue of the fore- 12 going provisions is not sufficient to satisfy the claim of the state for which 13 seizure is made, any other property subject to seizure shall be seized and 14 sold until the amount due from such person, together with all expenses, is 15 fully paid. 16 (6) All persons are required, on demand of a representative of the 17 department, a sheriff or deputy acting pursuant to this chapter, to produce 18 all documentary evidence and statements relating to the property or rights in 19 the property subject to seizure. 20 (7) Upon the filing of a state lien pursuant to section 45-620, Idaho 21 Code, the department may collect on the lien in the same manner and to the 22 same extent as the department collects tax liabilities and overpayment of ben- 23 efits as provided by section 63-3077A, Idaho Code. 24 SECTION 25. That Section 45-1901, Idaho Code, be, and the same is hereby 25 amended to read as follows: 26 45-1901. PURPOSE AND SCOPE. (1) The purpose of this chapter is to provide 27 a system for filing notices of liens in favor of or enforced by the state of 28 Idaho with the office of the secretary of state. 29 (2) The scope of this chapter is limited to liens in the real and per- 30 sonal property of: 31 (a) Taxpayers or other persons against whom the state tax commission has 32 liens pursuant to title 63, Idaho Code, for unpaid personal or corporation 33 income tax, sales tax, employee withholding taxes, fuel tax, or any other 34 amounts due under statutes administered by the commission, plus interest, 35 penalties and additional amounts; 36 (b) Persons against whom the department of labor has liens pursuant to 37 chapter 13, title 72, Idaho Code, for unpaid employment security contribu- 38 tions, plus interest and penalties; 39 (c) Persons liable for overpayment of benefits against whom the depart- 40 ment of labor has liens pursuant to chapter 13, title 72, Idaho Code, for 41 overpayment of benefits, plus interest; 42 (d) Persons against whom the department of labor has liens for wage 43 claims pursuant to chapter 6, title 45, Idaho Code; 44 (e) Individuals who are subject to liens for child support delin- 45 quency pursuant to chapter 12, title 7, Idaho Code; and 46 (ef ) Individuals who are subject to liens pur- 47 suant to chapter 2, title 56, Idaho Code, for medical assistance, or the 48 estates of such individuals. 49 SECTION 26. That Section 45-1902, Idaho Code, be, and the same is hereby 50 amended to read as follows: 51 45-1902. DEFINITIONS. (1) "Debtor" means a taxpayer or other person 14 1 against whom there is a final unpaid tax assessment collectible by the state 2 tax commission, a person against whom the department of labor has a lien for 3 a wage claim, unpaid contributions or overpayment of benefits, an 4 individual who is subject to a lien for child support delinquency, or an indi- 5 vidual who is subject to a lien for medical assistance. 6 (2) "Delivered" means transmission to and receipt by the secretary of 7 state of a notice of lien or other notice in any medium to which the filing 8 agency and the secretary of state have agreed. 9 (3) "Filing agency" means the state tax commission, the department of 10 labor or the department of health and welfare. 11 (4) "Person" means an individual, organization or legal entity. 12 SECTION 27. That Section 45-1903, Idaho Code, be, and the same is hereby 13 amended to read as follows: 14 45-1903. CREATION OF LIEN -- ATTACHMENT. Creation and attachment of liens 15 for which notices are filed pursuant to this chapter are governed by the pro- 16 visions of chapter 6 of title 45, title 63, chapter 13 of title 17 72, chapter 12 of title 7, and chapter 2 of title 56, Idaho Code. 18 SECTION 28. That Section 45-1904, Idaho Code, be, and the same is hereby 19 amended to read as follows: 20 45-1904. NOTICE OF LIEN -- CONTENT -- DELIVERY. (1) The notice of lien 21 shall include: 22 (a) The name and last known address of the debtor; 23 (b) The name and address of the filing agency; 24 (c) The basis for the lien, including, but not limited to, income tax, 25 sales tax, employment security contributions, payments in lieu of contri- 26 butions, overpayment of benefits, wage claims, a child sup- 27 port delinquency or medical assistance; 28 (d) Such other information as may be required by the relevant provisions 29 under which the lien was created and attached, or as may be agreed by the 30 filing agency and the secretary of state. 31 (2) The notice of lien will be delivered to and receipt will be acknowl- 32 edged by the secretary of state in a medium and format to which the filing 33 agency and the secretary of state have agreed. 34 (3) Each notice of lien shall be authenticated by the filing agency in a 35 manner to which the filing agency and the secretary of state have agreed. 36 (4) A notice of lien is filed when it complies with subsection (1) of 37 this section and has been delivered to and receipt acknowledged by the secre- 38 tary of state. 39 SECTION 29. That Section 45-1905, Idaho Code, be, and the same is hereby 40 amended to read as follows: 41 45-1905. EFFECT OF NOTICE -- PRIORITY. (1) When a notice of lien is 42 filed, the state lien is perfected in all of the existing and after-acquired 43 property of the debtor, both real and personal, tangible and intangible, to 44 which the lien attaches pursuant to the relevant provisions of chapter 6 45 of title 45, title 63, chapter 13 of title 72, chapter 12 of title 7, 46 or chapter 2 of title 56, Idaho Code. 47 (2) As to personal property, the perfected lien shall have the same pri- 48 ority as a security interest which becomes perfected under chapter 9, title 49 28, Idaho Code, at the same time the notice of lien is filed. 15 1 (3) As to real property, the perfected lien shall have the same priority 2 as a mortgage which is recorded at the same time the notice of lien is filed. 3 (4) Nothing herein limits the authority of the state tax commission to 4 subordinate its lien to another lien in the manner provided by section 5 63-3055, Idaho Code.
AS1034|||| LEGISLATURE OF THE STATE OF IDAHO |||| Fifty-fifth Legislature First Regular Session - 1999Moved by Davis Seconded by IN THE SENATE SENATE AMENDMENTS TO S.B. NO. 1034 1 AMENDMENT TO SECTION 1 2 On page 2 of the printed bill, in lines 18 through 20, delete "3labor. Any action for such wages must be commenced in a court of competent4jurisdiction within two (2) years after the cause of action shall have accrued5." and insert: "labor. Any action for such wages must be 6 commenced in a court of competent jurisdiction within two (2) years after the 7 cause of action shall have accrued.". 8 AMENDMENTS TO SECTION 22 9 On page 11, in line 13, delete "." and insert: "; or"; following line 13 10 insert: 11 "(c) File an affidavit of inability to either post a bond or send to the 12 department the amount awarded to the claimant."; 13 and in line 14, following "(3)", delete the remainder of the line, delete line 14 15 and insert: "The". 15 AMENDMENT TO SECTION 24 16 On page 12, in line 3 following "execution", delete the remainder of the 17 line and insert: "as otherwise allowed by law.".
STATEMENT OF PURPOSE
RS 08576
This bill is a major rewrite of Idaho's Wage Claim Law. Its main purpose is to improve
the Department of Labor's administrative process for handling wage claims, to make
the Department's wage claim decisions enforceable, and to reallocate limited resources
to collect unpaid wages by filing a state lien as soon as an administrative decision
becomes final, rather than re-litigatmg that decision in district court.
Additional changes were made to make the law easier to understand and adrninister,
including:
1) Adding definitions for "claimant", "department" and "wage claim."
2) Amending the payment upon separation requirements to cover employees that are
paid on a piece rate or commission basis.
3) Amending the wage payment provisions to allow for the direct deposit of wages in
out-of-state financial institutions and allow a fifteen-day period between the end of
the pay period and the regular payday.
4) Reducing the penalty provisions for failure to pay wages.
5) Clarifying that employees could file wage claims with either the Department or the
District Court.
FISCAL NOTE
This bill will be revenue neutral. Additional expenses the Department will incur by
having the Department's Appeals Bureau hear wage claim appeals, and the expense of
promulgating rules, are estimated to be less than the cost savings that will occur from
eliminating the necessity of re-litigating wage claim cases in district court.
Contact
Name: Dwight Johnson
Agency: Department of Labor
Phone: 334-6402
S 1034
Statement of Pu~pose/Fiscal Note - I