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H0042........................................................by MR. SPEAKER
Requested by Idaho Department of Labor
WAGE CLAIM LAW - Amends, adds to and repeals existing law to provide a
recodification of the wage claim law and the Department of Labor's
administrative process in administration of the wage claim law.
01/11 House intro - 1st rdg - to printing
01/11 Rpt prt - to St Aff
H0042|||| LEGISLATURE OF THE STATE OF IDAHO |||| Fifty-fifth Legislature First Regular Session - 1999IN THE HOUSE OF REPRESENTATIVES HOUSE BILL NO. 42 BY MR. SPEAKER Requested by: Department of Labor 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 FOR 5 "CLAIMANT," "DEPARTMENT" AND "WAGE CLAIM," TO REVISE THE DEFINITION OF 6 "WAGES" AND TO MAKE TECHNICAL CORRECTIONS; AMENDING SECTION 45-602, IDAHO 7 CODE, TO REVISE THE PREFERENCE FOR EMPLOYEES' WAGES; AMENDING SECTION 8 45-603, IDAHO CODE, TO REVISE THE PREFERENCE FOR WAGES UPON THE DEATH OF 9 THE EMPLOYER; AMENDING SECTION 45-604, IDAHO CODE, TO REVISE THE PREFER- 10 ENCE FOR WAGES ON EXECUTION AND ATTACHMENT; AMENDING SECTION 45-605, IDAHO 11 CODE, TO MAKE TECHNICAL CORRECTIONS; AMENDING SECTION 45-606, IDAHO CODE, 12 TO REVISE REQUIREMENTS FOR THE PAYMENT OF WAGES UPON SEPARATION AND TO 13 MAKE TECHNICAL CORRECTIONS; AMENDING SECTION 45-607, IDAHO CODE, TO REVISE 14 THE PENALTY PROVISIONS FOR FAILURE TO PAY WAGES; AMENDING SECTION 45-608, 15 IDAHO CODE, TO REVISE REQUIREMENTS FOR PAY PERIODS AND TO MAKE TECHNICAL 16 CORRECTIONS; AMENDING SECTION 45-609, IDAHO CODE, TO MAKE TECHNICAL COR- 17 RECTIONS; AMENDING SECTION 45-610, IDAHO CODE, TO REVISE REQUIREMENTS FOR 18 RECORDKEEPING AND TO MAKE TECHNICAL CORRECTIONS; AMENDING SECTION 45-611, 19 IDAHO CODE, TO MAKE TECHNICAL CORRECTIONS; AMENDING SECTION 45-612, IDAHO 20 CODE, TO REVISE THE PENALTY PROVISIONS FOR FILING A FALSE CLAIM; AMENDING 21 SECTION 45-613, IDAHO CODE, TO MAKE TECHNICAL CORRECTIONS; AMENDING SEC- 22 TION 45-614, IDAHO CODE, TO REVISE THE LIMITATION PERIOD FOR FILING WAGE 23 CLAIMS; 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 FOR ATTORNEY'S FEES AND 26 COSTS; AMENDING SECTION 45-616, IDAHO CODE, TO REVISE THE AUTHORITY AND 27 DUTIES OF THE DIRECTOR AND TO MAKE TECHNICAL CORRECTIONS; REPEALING SEC- 28 TION 45-617, IDAHO CODE; AMENDING CHAPTER 6, TITLE 45, IDAHO CODE, BY THE 29 ADDITION OF A NEW SECTION 45-617, IDAHO CODE, TO PROVIDE ADMINISTRATIVE 30 PROCEDURES FOR WAGE CLAIMS; AMENDING CHAPTER 6, TITLE 45, IDAHO CODE, BY 31 THE ADDITION OF A NEW SECTION 45-618, IDAHO CODE, TO PROVIDE FOR ADMINIS- 32 TRATIVE ENFORCEMENT AND COLLECTION OF WAGE CLAIMS; AMENDING CHAPTER 6, 33 TITLE 45, IDAHO CODE, BY THE ADDITION OF A NEW SECTION 45-619, IDAHO CODE, 34 TO PROVIDE FOR JUDICIAL REVIEW; AMENDING CHAPTER 6, TITLE 45, IDAHO CODE, 35 BY THE ADDITION OF A NEW SECTION 45-620, IDAHO CODE, TO ALLOW THE DEPART- 36 MENT TO FILE LIENS TO COLLECT WAGE CLAIMS; AMENDING CHAPTER 6, TITLE 45, 37 IDAHO CODE, BY THE ADDITION OF A NEW SECTION 45-621, IDAHO CODE, TO PRO- 38 VIDE PROCEDURES FOR THE COLLECTION OF LIENS; AMENDING SECTION 45-1901, 39 IDAHO CODE, TO REVISE THE SCOPE OF STATE LIENS; AMENDING SECTION 45-1902, 40 IDAHO CODE, TO REVISE THE DEFINITION OF A DEBTOR; AMENDING SECTION 41 45-1903, IDAHO CODE, TO REVISE THE PROVISIONS FOR THE CREATION OF A LIEN; 42 AMENDING SECTION 45-1904, IDAHO CODE, TO REVISE THE PROVISIONS FOR NOTICE 43 OF LIEN; AND AMENDING SECTION 45-1905, IDAHO CODE, TO REVISE THE SCOPE OF 44 STATE LIENS. 45 Be It Enacted by the Legislature of the State of Idaho: 2 1 SECTION 1. That Section 44-1508, Idaho Code, be, and the same is hereby 2 amended to read as follows: 3 44-1508. ENFORCEMENT. (1) When the director of the department of labor 4 has reason to believe that an employer is engaged in an act or practice which 5 violates or will violate a provision of chapter 15, title 44, Idaho Code, he 6 may bring an action in a court of competent jurisdiction to enjoin the act or 7 practice, and to enforce compliance with the provisions of chapter 15, title 8 44, Idaho Code. Upon a proper showing, a permanent or temporary injunction or 9 restraining order shall be granted without bond. 10 (2) A claim for unpaid minimum wages as set forth in section 44-1502, 11 Idaho Code, may be treated as a claim for wages due and owing under chapter 6, 12 title 45, Idaho Code.Enforcement or suit under chapter 6, title 45,13Idaho Code, for unpaid minimum wages may be commenced by the employee or14employees affected, or by the department of labor whether a wage claim has15been filed with the department or not.Such claim shall not be subject 16 to the limitation contained in section 45-6157 (1), 17 Idaho Code, if brought by the department of labor. Any action for such18wages must be commenced in a court of competent jurisdiction within two (2)19years after the cause of action shall have accrued. 20 SECTION 2. That Section 45-601, Idaho Code, be, and the same is hereby 21 amended to read as follows: 22 45-601. DEFINITIONS. Whenever used in this chapter: 23 ( 1.) "Claimant" means an employee who 24 filed a wage claim with the department in accordance with this chapter and as 25 the director may prescribe. 26 (2) "Department" means the department of labor. 27 (3) "Director" means the director of the department of labor 28 .of the state of Idaho.292.(4) "Employee" means any person suffered or 30 permitted to work by an employer. 313.(5) "Employer" means any individual, partner- 32 ship, association, joint stock company, trust, corporation, the administrator 33 or executor of the estate of a deceased individual, or the receiver, trustee, 34 or successor of any of the same, employing any person. 35 (6) "Wage claim" means an employee's claim against an employer for 36 compensation for the employee's own personal services, and includes any wages, 37 penalties, or damages provided by law to employees with a claim for unpaid 38 wages. 394.(7) "Wages" means compensation for labor or 40 services rendered by an employee, whether the amount is determined on a time, 41 task, piece or commission basis. Wages include vacation pay, bonuses and 42 other amounts promised by the employer, but only when the employer has a writ- 43 ten policy or an established practice of making such payments. For purposes of 44 wage claims filed with the department pursuant to section 45-617, Idaho Code, 45 wages do not include sick pay or severance pay. 46 SECTION 3. That Section 45-602, Idaho Code, be, and the same is hereby 47 amended to read as follows: 48 45-602. WAGES OFSERVANTS AND LABORERSEMPLOYEES 49 PREFERRED. In all assignments of property made by any person to 50 trustees or assignees, or in proceedings in insolvency,the3 1 an employee's wagesof the miners, mechanics, salesmen, servants,2clerks or laborersfor services rendered within sixty (60) days3nextpreceding such assignment, not exceedingone4 five hundredfiftydollars ($150 0 5 ),areis a preferred claims, and 6 must be paid by such trustees or assignees before any creditor or creditors of 7 the assignor or insolvent debtor:; provided, that 8 whenever any suchminer, mechanic, salesman, servant, clerk or laborer9employee has filed a notice of lien against any property 10 of the assignor,hethe employee may elect between 11 the provisions of this section andhisthe employee's 12 lien. 13 SECTION 4. That Section 45-603, Idaho Code, be, and the same is hereby 14 amended to read as follows: 15 45-603. PREFERENCE OF WAGES -- DEATH OF EMPLOYER. In case of the death of 16 any employer, the wages of eachminer, mechanic, salesman, clerk, ser-17vant and laborer,employee for services rendered within 18 the sixty (60) daysnextpreceding the death of the employer, not 19 exceedingonefive hundredfiftydol- 20 lars ($150 0 ), rank in priority next after the 21 funeral expenses;, expenses of the last 22 sickness;, the charges and expenses of administering 23uponthe estate, and the allowance of thewidow24 surviving spouse andinfantminor chil- 25 dren, and must be paid before any other claims against the estate of the 26 deceased person. 27 SECTION 5. That Section 45-604, Idaho Code, be, and the same is hereby 28 amended to read as follows: 29 45-604. PREFERENCE OF WAGES ON EXECUTION AND ATTACHMENT. In cases of exe- 30 cutions, attachments and writs of similar nature, issued against any person or 31 his property, except for claims for labor done, anyminers, mechanics,32salesmen, servants, clerks or laborers,employee who33havehas claims against the defendant for labor done upon 34 the property levied on, may give notice of their claim and the amount thereof, 35 sworn to by the person making the claim, to the creditor orhis36 the creditor's agent or attorney and to the officer executing any 37 of such writs, at any time before the actual sale of the property levied upon; 38 and, unless such claim is disputed by the debtor or creditor, such officer 39 must pay to such person out of the proceeds of the sale of any property on 40 which such person has bestowed labor, the amounthesuch 41 person is entitled to receive forhisservices rendered 42 within the sixty (60) daysnextpreceding the levy of the writ. 43 If any or all other claims so presented and claiming preference under this 44 section are disputed by either the debtor or a creditor, the person presenting 45 the same must commence an action within ten (10) days for the recovery 46 thereof, and must prosecutehisthe action with due 47 diligence or be forever barred from any claim of priority of payment thereof, 48 and the officer shall retain possession of so much of the proceeds of the sale 49 as may be necessary to satisfy such claim until the determination of such 50 action, and in case judgment be had for the claim or any part thereof, carry- 51 ing costs, the costs taxable therein shall likewise be a preferred claim with 4 1 the same rank as the original claim. 2 SECTION 6. That Section 45-605, Idaho Code, be, and the same is hereby 3 amended to read as follows: 4 45-605. DEBTOR OR CREDITOR MAY DISPUTE CLAIM. The debtor or creditor 5 intending to dispute a claim presented under the provisions ofthe last6section 45-604, Idaho Code , shall, within ten (10) days 7 after receiving notice of such claim, serve upon the claimant and the officer 8 executing the writ, a statement in writing, verified by the oath of the debtor 9 or the person disputing such claim, orhisby their 10 agent or attorney, setting forth that no part of said claim, or not exceeding 11 a sum specified, is justly due from the debtor to the claimant for services 12 rendered within the sixty (60) daysnextpreceding the levy of 13 the writ. If the claimant brings suit on a claim which is disputed in part 14 only, and fail s to recover a sum exceeding that which was admit- 15 ted to be due,hethe claimant shall not recover 16 costs, but costs shall be adjudged againsthimthe claimant 17 . 18 SECTION 7. That Section 45-606, Idaho Code, be, and the same is hereby 19 amended to read as follows: 20 45-606. PAYMENT OF WAGES UPON SEPARATION FROM EMPLOYMENT. ( 21 1.) Upon layoff, or upon termination of 22 employment by either the employer or employee, the employer shall pay or make 23 available at the usual place of payment all wages then due the employee by the 24 earlier of the next regularly scheduled payday or within ten (10) days of such 25 layoff or termination, weekends and holidays excluded. However, if the 26 employee makes written request upon the employer for earlier payment of wages, 27 all wages then due the employee shall be paid within forty-eight (48) hours 28 of the receipt of such request, weekends and holidays excluded. 29 ( 2.) Unless exempt from the minimum wage 30 requirements of chapter 15, title 44, Idaho Code, employees being paid on a 31 piece rate or commission basis must be paid at least the applicable minimum 32 wage for all hours worked in the pay period immediately preceding layoff or 33 termination from employment. The minimum wage payment shall be made within the 34 same time limitations provided for in subsection (1) of this section. Any 35 additional wages owed to employees shall be paid by the next regularly sched- 36 uled payday. 37 (3) The directorof the department of labormay, upon 38 application showing good and sufficient reasons, grant an employer a temporary 39 extension to any time limitation provided in this section. 40 SECTION 8. That Section 45-607, Idaho Code, be, and the same is hereby 41 amended to read as follows: 42 45-607. PENALTY FOR FAILURE TO PAY. Whenever an employer fails to pay all 43 wages then due an employee at the times due under section 45-606, Idaho Code, 44 then the employee'sregularwages ,he would45have been entitled to had he rendered services in the manner as last employed46excluding vacation pay, bonuses and other amounts promised by the 47 employer , shall continue at the same ratefrom the day wages are48dueas if services had been rendered in the manner as last 49 employed until paid in full or for thirty (30) days, whichever is less. 5 1NoAny employee who secretes or absents himself 2 to avoid payment, or refuses to receivethe samepayment 3 when made available as provided for in section 45-606, Idaho Code, 4 shall not be entitled to any penalty under this chapter. 5Every employee shall have such lien and all other rights and reme-6dies for the protection and enforcement of such unpaid wages and penalties as7he would have been entitled to had he rendered services therefor in the manner8as last employed, including costs of suit and reasonable attorney's fees if a9demand is made, in writing, at least five (5) days before suit is brought, for10a sum not to exceed the amount found due by decision of the court or verdict11of the jury.12 SECTION 9. That Section 45-608, Idaho Code, be, and the same is hereby 13 amended to read as follows: 14 45-608. PAY PERIODS -- PENALTY. ( 1.) 15Every eE mployer s shall pay all 16 wages due tohistheir employees at least once dur- 17 ing each calendar month, on regular paydays designated in advance by the 18 employer, in lawful money of the United States or with checks on banks where 19 suitable arrangements are made for the cashing of such checks without charge 20 to the employee. Nothing contained herein shall prohibit an employer from 21 depositing wages due or to become due or in advanceonof 22 wages to be earned in an account in a bank, savings and loan associa- 23 tion or credit union of the employee's choice ,in the24state,provided that the employee has voluntarily authorized such 25 deposit. If the employee revokes such authorization for deposit, it shall be 26 deemed terminated and the provisions herein relating to the payment of wages 27 shall apply. 28 ( 2.) The end of the pay period for 29 which payment is made on a regular payday shall be not more thanten30(10)fifteen (15) days before such regular payday; pro- 31 vided that if the regular payday falls on a nonworkday payment shall be made 32 on a preceding workday. 33 ( 3.) The director may, upon appli- 34 cation showing good and sufficient reasons, permit an employer to withhold 35 payment of wages more than theten (10)fifteen (15) 36 day period as specified in subsection ( 2 ) of this 37 section. 38 ( 4.) The director may, pursuant to 39 his authority, levy a civil penalty upon any employer who has failed to obtain 40 the exemption provided in subsection ( 3 ) of this 41 section and who has beendulydetermined to have undertaken a 42 consistent pattern of untimely payment of wages to his employees. Such penalty 43 shall not exceed five hundred dollars ($500) for such employer per pay period. 44 SECTION 10. That Section 45-609, Idaho Code, be, and the same is hereby 45 amended to read as follows: 46 45-609. WITHHOLDING OF WAGES. (1) No employer may withhold 47 or divert any portion of an employee's wages unless: 481.(a) The employer is required or empowered to 49 do so by state or federal law,; or 502.(b) The employer has a written authorization 51 by the employee for deductions for a lawful purpose. 6 1 (2) An employer shall furnish each employee with a statement 2 of deductions made fromhisthe employee's wages for 3 each pay period such deductions are made. The willful failure of any employer 4 to comply with the provisions of this subsection shall constitute a misde- 5 meanor. 6 SECTION 11. That Section 45-610, Idaho Code, be, and the same is hereby 7 amended to read as follows: 8 45-610. RECORDS TO BE KEPT BY EMPLOYER -- NOTICE TO EMPLOYEES. ( 9 1.) Employment records must be maintained for 10 a minimum period oftwo (2)three (3) years from the 11 last date of the employee's service. 12 ( 2.) Every employer shall notify 13 his employees at the time of hiring of the rate of pay and the usual day of 14 payment, and shall provide such information in writing to the employee upon 15 the employee's request. 16 ( 3.) Every employer shall17notify hisgive notice to its employees of any reduction 18 in wages,prior to the work being performed and 19 shall provide such information in writing to the employee upon the employee's 20 request. 21 SECTION 12. That Section 45-611, Idaho Code, be, and the same is hereby 22 amended to read as follows: 23 45-611. WAGES THAT ARE IN DISPUTE. ( 1.) 24 In case of a dispute as to the amount of wages due an employee, the 25 employer shall pay, without condition and within the time set by this chapter, 26 all wages, or parts thereof, conceded by the employer to be due, leaving to 27 the employee all remedieshethe employee might 28 otherwise be entitled to, including those provided under this chapter, as to 29 any balance claimed. Whenever an employershallpay s 30 all wages not in dispute within the time limits set forth in section 45-606, 31 Idaho Code,thenno penalties may be assessed under this chapter, 32 unless it can be shown that the remaining balance of wages due were withheld 33 willfully, arbitrarily and without just cause. 34 ( 2.) The acceptance by an employee 35 of a check with any restrictive endorsement as payment under this section 36 shall not constitute a release or accord and satisfaction with respect to the 37 disputed amount. 38 SECTION 13. That Section 45-612, Idaho Code, be, and the same is hereby 39 amended to read as follows: 40 45-612. FILING FALSE CLAIM -- PENALTY. (1) Any person making a false 41 claim for wages or other compensation under this chapter, knowing the same to 42 be false, shall be guilty of a misdemeanor and shall be punishable by confine- 43 ment in the county jail for a period not to exceed six (6) months, or by a 44 fine, not to exceed one thousand dollars ($1,000), or both. 45 (2) Any employee initiating a civil proceeding to collect unpaid wages or 46 other compensation,either on his own behalf or through the director,47which is based in whole or in part on a false claim which the employee 48 knew to be false at the time the employee brought the action , 49or filed a claim with the director,shall be liable for 7 1 attorney's fees and costs incurred by the employer in defending against the 2 false claim, as well as any attorney's fees and costs, or other adminis-3trative costs incurred by the director in any investigation of or proceeding4to collect the wages or other compensation falsely claimed by the employee5. Proof of a criminal conviction under subsection (1) of this section 6 shall not be required for recovery of the fees and costs provided for in this 7 subsection. 8 SECTION 14. That Section 45-613, Idaho Code, be, and the same is hereby 9 amended to read as follows: 10 45-613. DISCHARGING OR RETALIATING AGAINST EMPLOYEES ASSERTING RIGHTS 11 UNDER THIS CHAPTER. No employer shall discharge or in any other manner retali- 12 ate against any employee because that employee has made a complaint to13histhe employer or to thedirector or his autho-14rized representative,department thathe15 the employee has not been paid in accordance with the provisions 16 of this chapter, or because the employee has testified or may be about to tes- 17 tify in an investigation or hearing undertaken by the 18 department .of labor.The provisions of this section 19 shall not be construed to otherwise restrict the discipline or termination of 20 an employee. 21 SECTION 15. That Section 45-614, Idaho Code, be, and the same is hereby 22 amended to read as follows: 23 45-614. COLLECTION OF WAGES -- LIMITATIONS. Any person shall have the 24 right to collectsalary,wages,overtime compensation,25penalties and liquidated damages provided by any law or pursuant to a 26 contract of employment, but any action thereon shall be filed either 27 with the department or commenced in a court of competent jurisdiction 28 withintwo (2)one (1) yearsafter the 29 cause of actionshall haveaccrued, provided, however, that30in the event salary or wages have been paid to any employee and such employee31claims additional salary, wages, overtime compensation, penalties or liqui-32dated damages, because of work done or services performed during his employ-33ment for the pay period covered by said payment, any action therefor shall be34commenced within six (6) months from the accrual of the cause of action. It is35further provided that if any such cause of action has accrued prior to the36effective date of this act, and is not barred by existing law, action thereon37may be commenced within six (6) months from the effective date of this act38. In the event an action is not commenced as herein provided, any remedy 39 on the cause of action shall be forever barred.The limitation periods40provided herein shall be tolled during the time a claim is pending before the41director pursuant to section 45-616, Idaho Code, for a period not to exceed42six (6) months.43 SECTION 16. That Section 45-615, Idaho Code, be, and the same is hereby 44 repealed. 45 SECTION 17. That Chapter 6, Title 45, Idaho Code, be, and the same is 46 hereby amended by the addition thereto of a NEW SECTION , to be 47 known and designated as Section 45-615, Idaho Code, and to read as follows: 48 45-615. COLLECTION OF WAGE CLAIMS BY SUIT -- ATTORNEY'S FEES AND COSTS. 8 1 (1) As an alternative to filing a wage claim with the department, any person 2 may assert a wage claim arising under this chapter in any court of competent 3 jurisdiction or pursue any other remedy provided by law. 4 (2) Any judgment rendered by a court of competent jurisdiction for the 5 plaintiff in a suit filed pursuant to this section may include all costs and 6 attorney's fees reasonably incurred in connection with the proceedings and the 7 plaintiff shall be entitled to recover from the defendant either the unpaid 8 wages plus the penalties provided for in section 45-607, Idaho Code; or dam- 9 ages in the amount of three (3) times the unpaid wages found due and owing, 10 whichever is greater. 11 SECTION 18. That Section 45-616, Idaho Code, be, and the same is hereby 12 amended to read as follows: 13 45-616. ENFORCEMENT. ( 1.) The 14 director shall enforce and administer the provisions of this chapter . 15and tT he directoror his authorized16representatives areis empowered to hold hearings and 17 otherwisetoinvestigate violations or alleged violations of this 18 chapter and any rulesand regulations in forcepursuant thereto, 19 andfurther,to issue orders for administrative remedies as 20 authorized. 21 ( 2.) The directoror his22authorized representatives areis empowered to enter and 23 inspectsuchplaces, questionsuchemployees, and 24 investigatesuchfacts, conditions, or matters asthey25the director may deem appropriate to determine whether any 26 person has violated any provision of this chapter or any ruleor regula-27tionissued thereunder or which may aid in the enforcement of the pro- 28 visions of this chapter. 29 ( 3.) The directoror his30authorized representativeshall have the power to administer oaths and 31 examine witnesses under oath or otherwise, and issuecom-32pulsory processsubpoenas to compel the attendance of 33 witnesses,and the production ofpapers, books, accounts,34records, payrolls, documents, and testimony, and to take depositions and affi-35davitsany evidence deemed necessary in the administration 36 of this chapter. 37 ( 4.)In case of failure of38If any person fails to comply with any39compulsory processsubpoena lawfully issued, it shall be 40 the duty of the district court, on application by the director, to compel com- 41 pliance by citation for contempt. 42 ( 5.) An employer shall furnish to 43 the department the informationitthe department is 44 authorized to acquire under this section when the request is submitted in 45 writing. 46 (6) The department shall attempt for a period of not less than two 47 (2) years from the date of collection, to make payment of wages collected 48 under this chapter to the person entitled thereto. Wage claims collected by 49 the department that remain unclaimed for a period of more than two (2) years 50 from the date collected shall on June 30 of each year be forfeited and 51 retained in the department's account and used for the administration of this 52 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 procedure 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, in its sole discretion, that it lacks jurisdiction over the 17 wage claim, the department shall provide written notification of its determi- 18 nation to the claimant and the employer. The claimant may then assert the wage 19 claim in any court of competent jurisdiction. 20 (4) A department compliance officer shall examine wage claims filed with 21 the department and, on the basis of the facts found, shall determine whether 22 the wage claimant is entitled to an award for unpaid wages and penalties. If 23 the compliance officer is unable to determine whether wages and penalties are 24 owed, the claim may be referred to a hearing officer for a determination. The 25 department may adjust the amount of penalties awarded for an employer's fail- 26 ure to comply with the requirements of section 45-606, Idaho Code. The penalty 27 awarded by the department may be in any amount up to the maximum amount 28 allowed under section 45-607, Idaho Code. The department's determination shall 29 include findings of fact and conclusions of law. Before the determination 30 becomes final or an appeal is filed, the compliance or hearing officer that 31 issued the determination may, on their own motion, issue a revised determina- 32 tion. The determination or revised determination shall become a final determi- 33 nation unless, within fourteen (14) days after notice, as provided in subsec- 34 tion (5) of this section, an appeal is filed by the claimant or the employer 35 with the department. If an appeal is not timely filed, the amount awarded by a 36 final determination shall become immediately due and payable to the depart- 37 ment. A final determination may be enforced by the department in accordance 38 with section 45-618, Idaho Code. 39 (5) The claimant and the employer shall be entitled to prompt service of 40 notice of determinations and decisions. A notice shall be deemed served if 41 delivered to the person being served or if mailed to his last known address. 42 Service by mail shall be deemed complete on the date of mailing. The date 43 indicated on department determinations or decisions as the "date of mailing" 44 shall be presumed to be the date the document was deposited in the United 45 States mail, unless otherwise shown by a preponderance of competent evidence. 46 (6) An appeal from a wage claim determination shall be in writing, signed 47 by the appellant or the appellant's representative and shall contain words 48 that, by fair interpretation, request the appeal process for a specific deter- 49 mination of the department. The appeal may be filed by personal delivery, by 50 mail, or by fax to the wage and hour section of the department at the address 51 indicated on the wage claim determination. The date of personal delivery shall 52 be noted on the appeal and shall be deemed the date of filing. If mailed, the 53 appeal shall be deemed to be filed on the date of mailing as determined by the 10 1 postmark. A faxed appeal that is received by the wage and hour section by 5:00 2 p.m. on a business day shall be deemed filed on that date. A faxed appeal that 3 is received by the wage and hour section on a weekend, holiday or after 5:00 4 p.m. on a business day shall be deemed filed on the next business day. 5 (7) To hear and decide appeals from determinations, the director shall 6 appoint appeals examiners who have been specifically trained to hear wage 7 claims. Unless the appeal is withdrawn, the appeals examiner shall affirm, 8 modify, set aside or reverse the determination involved, after affording the 9 claimant and the employer reasonable opportunity for a fair hearing, or may 10 refer a matter back to the compliance or hearing officer for further action. 11 The appeals examiner shall notify the claimant and the employer of his deci- 12 sion by serving notice in the same manner as provided in subsection (5) of 13 this section. The decision shall set forth findings of fact and conclusions of 14 law. The appeals examiner may, either upon application for rehearing by the 15 claimant, the employer, or on his own motion, rehear, affirm, modify, set 16 aside or reverse any prior decision on the basis of the evidence previously 17 submitted or on the basis of additional evidence; provided, that such applica- 18 tion or motion be made within ten (10) days after the date of service of the 19 decision. A complete record shall be kept of all proceedings in connection 20 with an appealed wage claim. All testimony at any hearing shall be recorded. 21 Witnesses subpoenaed by the appeals examiner shall be allowed fees at a rate 22 prescribed by the director. If the claimant or the employer formally requests 23 the appeals examiner to issue a subpoena for a witness whose evidence is 24 deemed necessary, the appeals examiner shall promptly issue the subpoena, 25 unless such request is determined to be unreasonable. Unless the claimant or 26 the employer, within fourteen (14) days after service of the decision of the 27 appeals examiner, seeks judicial review pursuant to section 45-619, Idaho 28 Code, or unless an application or motion is made for a rehearing of such deci- 29 sion, the decision of the appeals examiner shall become final and the amount 30 awarded by the decision shall become immediately due and payable to the 31 department. A decision that has become final may be enforced by the department 32 according to section 45-618, Idaho Code. 33 (8) No person acting on behalf of the director shall participate in any 34 case in which he has a direct or indirect personal interest. 35 (9) (a) Any right, fact, or matter in issue, directly based upon or nec- 36 essarily involved in a determination or decision of the appeals examiner 37 which has become final, shall be conclusive for all the purposes of this 38 chapter as between the claimant and the employer who had notice of such 39 determination or decision. Subject to judicial review as set forth in this 40 chapter, any determination or decision shall be conclusive for all pur- 41 poses of this chapter and shall not be subject to collateral attack irre- 42 spective of notice. 43 (b) No finding of fact or conclusion of law contained in a determination 44 or decision rendered pursuant to this chapter by an appeals examiner, a 45 court, or any other person authorized to make such determinations shall 46 have preclusive effect in any other action or proceeding, except proceed- 47 ings that are brought: 48 (i) Pursuant to this chapter; 49 (ii) To collect wage claims; or 50 (iii) To challenge the constitutionality of provisions of this chap- 51 ter or administrative proceedings under this chapter. 52 SECTION 21. That Chapter 6, Title 45, Idaho Code, be, and the same is 53 hereby amended by the addition thereto of a NEW SECTION , to be 54 known and designated as Section 45-618, Idaho Code, and to read as follows: 11 1 45-618. ADMINISTRATIVE ENFORCEMENT AND COLLECTION OF WAGE CLAIMS. (1) A 2 department determination, if not appealed to an appeals examiner; or a deci- 3 sion of the appeals examiner, if judicial review is not sought; or a court 4 order following judicial review, may be enforced by the department according 5 to section 45-620, Idaho Code. 6 (2) If at any time the department determines, in its sole discretion, 7 that a wage claim upon which a lien was filed pursuant to section 45-620, 8 Idaho Code, is no longer collectible, the department shall: 9 (a) Transfer the state lien from the central lien filing system of the 10 secretary of state to the district court in the county of the debtor's 11 last known address. A lien transferred pursuant to this subsection shall 12 be entered in the judgment docket of the district court and recorded as a 13 transferred lien with the effective date of the lien being the date it was 14 initially filed with the secretary of state. 15 (b) Notify the claimant in writing, at the claimant's last known address, 16 that the lien has been transferred and advise the claimant that no further 17 action will be maintained by the department on the wage claim, and that 18 from the date of the transfer, it shall be the claimant's sole responsi- 19 bility to maintain and enforce the lien. 20 (3) A lien transferred pursuant to this section shall be enforceable by 21 the claimant in the same manner and with the same effect as if the lien had 22 been a judgment of the district court. 23 SECTION 22. That Chapter 6, Title 45, Idaho Code, be, and the same is 24 hereby amended by the addition thereto of a NEW SECTION , to be 25 known and designated as Section 45-619, Idaho Code, and to read as follows: 26 45-619. JUDICIAL REVIEW. (1) The claimant or the employer aggrieved by a 27 final decision of the appeals examiner may obtain judicial review of the deci- 28 sion pursuant to the provisions of chapter 52, title 67, Idaho Code, and the 29 provisions of this subsection. 30 (2) If the employer files a petition for judicial review in a court of 31 competent jurisdiction contesting the appeals examiner's decision, the 32 employer shall deposit with the department, to be placed by the department in 33 an interest-bearing escrow account of a fully insured financial institution, 34 the full amount awarded to the claimant not later than the twenty-eighth day 35 after the date the appeals examiner's decision became final. 36 (3) Unless the employer files an affidavit of inability to pay with the 37 clerk of the district court within the period specified in subsection (2) of 38 this section, failure to timely send the amount required by subsection (2) of 39 this section shall constitute a waiver of the right to judicial review. 40 (4) If, after judicial review, it is determined that some or all of the 41 wages are not owed or the penalty is reduced or is not assessed, the depart- 42 ment shall remit the appropriate amount to the employer, plus the interest 43 accrued on the escrowed amount. 44 SECTION 23. That Chapter 6, Title 45, Idaho Code, be, and the same is 45 hereby amended by the addition thereto of a NEW SECTION , to be 46 known and designated as Section 45-620, Idaho Code, and to read as follows: 47 45-620. LIENS. (1) Upon the failure of any person to pay any amount when 48 due pursuant to section 45-617, Idaho Code, the department may file with the 49 office of the secretary of state, as provided in chapter 19, title 45, Idaho 50 Code, a notice of lien. 51 (2) Upon delivery to the secretary of state, the notice of lien shall be 12 1 filed and maintained in accordance with chapter 19, title 45, Idaho Code. When 2 such notice is duly filed, all amounts due shall constitute a lien upon the 3 entire interest, legal or equitable, in any property of such person, real or 4 personal, tangible or intangible, not exempt from execution, situated in the 5 state. Such lien may be enforced by the director or by any sheriff of the var- 6 ious counties in the same manner as a judgment of the district court duly 7 docketed and the amount secured by the lien shall bear interest at the rate of 8 the state statutory legal limit on judgments. The foregoing remedy shall be in 9 addition to all other remedies provided by law. 10 (3) In any suit or action involving the title to real or personal prop- 11 erty against which the state has a perfected lien, the state shall be made a 12 party to such suit or action. 13 SECTION 24. That Chapter 6, Title 45, Idaho Code, be, and the same is 14 hereby amended by the addition thereto of a NEW SECTION , to be 15 known and designated as Section 45-621, Idaho Code, and to read as follows: 16 45-621. COLLECTION OF LIEN AMOUNTS. (1) In addition to all other remedies 17 or actions provided by this chapter, it shall be lawful for the director or 18 his agent to collect any amounts secured by liens created pursuant to this 19 chapter by seizure and sale of the property of any person liable for such 20 amounts who fails to pay the same within thirty (30) days from the mailing of 21 notice and demand for payment thereof. 22 (2) Property exempt from seizure shall be the same property that is 23 exempt from execution under the provisions of chapter 6, title 11, Idaho Code. 24 (3) In exercising his authority under subsection (1) of this section, the 25 director may levy, or by his warrant, authorize any of his representatives, a 26 sheriff or deputy to levy upon, seize and sell any nonexempt property belong- 27 ing to any person liable for the amounts secured by the lien. 28 (4) When a warrant is issued by the department for the collection of any 29 amount due pursuant to a lien authorized by this chapter, it shall be directed 30 to any authorized representative of the department, or to any sheriff or dep- 31 uty, and any such warrant shall have the same force and effect as a writ of 32 execution. It may be levied and sale made pursuant to it in the same manner 33 and with the same force and effect as a levy and sale pursuant to a writ of 34 execution. Upon the completion of his services pursuant to said warrant, the 35 sheriff or deputy shall receive the same fees and expenses as are provided by 36 law for services related to a writ of execution. All such fees and expenses 37 shall be an obligation of the person liable for the amounts due and shall be 38 collected from such person by virtue of the warrant. Any warrant issued by the 39 director shall contain, at a minimum, the name and address of the liable per- 40 son; the nature of the underlying liability; the date the liability was incur- 41 red; the amount of the liability secured by the lien; the amount of any pen- 42 alty, interest or other amount due under the lien; and the interest rate on 43 the lien. 44 (5) Whenever any property that is seized and sold by virtue of the fore- 45 going provisions is not sufficient to satisfy the claim of the state for which 46 seizure is made, any other property subject to seizure shall be seized and 47 sold until the amount due from such person, together with all expenses, is 48 fully paid. 49 (6) All persons are required, on demand of a representative of the 50 department, a sheriff or deputy acting pursuant to this chapter, to produce 51 all documentary evidence and statements relating to the property or rights in 52 the property subject to seizure. 53 (7) Upon the filing of a state lien pursuant to section 45-620, Idaho 13 1 Code, the department may collect on the lien in the same manner and to the 2 same extent as the department collects tax liabilities and overpayment of ben- 3 efits as provided by section 63-3077A, Idaho Code. 4 SECTION 25. That Section 45-1901, Idaho Code, be, and the same is hereby 5 amended to read as follows: 6 45-1901. PURPOSE AND SCOPE. (1) The purpose of this chapter is to provide 7 a system for filing notices of liens in favor of or enforced by the state of 8 Idaho with the office of the secretary of state. 9 (2) The scope of this chapter is limited to liens in the real and per- 10 sonal property of: 11 (a) Taxpayers or other persons against whom the state tax commission has 12 liens pursuant to title 63, Idaho Code, for unpaid personal or corporation 13 income tax, sales tax, employee withholding taxes, fuel tax, or any other 14 amounts due under statutes administered by the commission, plus interest, 15 penalties and additional amounts; 16 (b) Persons against whom the department of labor has liens pursuant to 17 chapter 13, title 72, Idaho Code, for unpaid employment security contribu- 18 tions, plus interest and penalties; 19 (c) Persons liable for overpayment of benefits against whom the depart- 20 ment of labor has liens pursuant to chapter 13, title 72, Idaho Code, for 21 overpayment of benefits, plus interest; 22 (d) Persons against whom the department of labor has liens pursuant 23 to chapter 6, title 45, Idaho Code, for wage claims; 24 (e) Individuals who are subject to liens for child support delin- 25 quency pursuant to chapter 12, title 7, Idaho Code; and 26 (ef ) Individuals who are subject to liens pur- 27 suant to chapter 2, title 56, Idaho Code, for medical assistance, or the 28 estates of such individuals. 29 SECTION 26. That Section 45-1902, Idaho Code, be, and the same is hereby 30 amended to read as follows: 31 45-1902. DEFINITIONS. (1) "Debtor" means a taxpayer or other person 32 against whom there is a final unpaid tax assessment collectible by the state 33 tax commission, a person against whom the department of labor has a lien for 34 a wage claim, unpaid contributions or overpayment of benefits, an 35 individual who is subject to a lien for child support delinquency, or an indi- 36 vidual who is subject to a lien for medical assistance. 37 (2) "Delivered" means transmission to and receipt by the secretary of 38 state of a notice of lien or other notice in any medium to which the filing 39 agency and the secretary of state have agreed. 40 (3) "Filing agency" means the state tax commission, the department of 41 labor or the department of health and welfare. 42 (4) "Person" means an individual, organization or legal entity. 43 SECTION 27. That Section 45-1903, Idaho Code, be, and the same is hereby 44 amended to read as follows: 45 45-1903. CREATION OF LIEN -- ATTACHMENT. Creation and attachment of liens 46 for which notices are filed pursuant to this chapter are governed by the pro- 47 visions of chapter 6 of title 45, title 63, chapter 13 of title 48 72, chapter 12 of title 7, and chapter 2 of title 56, Idaho Code. 14 1 SECTION 28. That Section 45-1904, Idaho Code, be, and the same is hereby 2 amended to read as follows: 3 45-1904. NOTICE OF LIEN -- CONTENT -- DELIVERY. (1) The notice of lien 4 shall include: 5 (a) The name and last known address of the debtor; 6 (b) The name and address of the filing agency; 7 (c) The basis for the lien, including, but not limited to, income tax, 8 sales tax, employment security contributions, payments in lieu of contri- 9 butions, overpayment of benefits, wage claims, a child sup- 10 port delinquency or medical assistance; 11 (d) Such other information as may be required by the relevant provisions 12 under which the lien was created and attached, or as may be agreed by the 13 filing agency and the secretary of state. 14 (2) The notice of lien will be delivered to and receipt will be acknowl- 15 edged by the secretary of state in a medium and format to which the filing 16 agency and the secretary of state have agreed. 17 (3) Each notice of lien shall be authenticated by the filing agency in a 18 manner to which the filing agency and the secretary of state have agreed. 19 (4) A notice of lien is filed when it complies with subsection (1) of 20 this section and has been delivered to and receipt acknowledged by the secre- 21 tary of state. 22 SECTION 29. That Section 45-1905, Idaho Code, be, and the same is hereby 23 amended to read as follows: 24 45-1905. EFFECT OF NOTICE -- PRIORITY. (1) When a notice of lien is 25 filed, the state lien is perfected in all of the existing and after-acquired 26 property of the debtor, both real and personal, tangible and intangible, to 27 which the lien attaches pursuant to the relevant provisions of chapter 6 28 of title 45, title 63, chapter 13 of title 72, chapter 12 of title 7, 29 or chapter 2 of title 56, Idaho Code. 30 (2) As to personal property, the perfected lien shall have the same pri- 31 ority as a security interest which becomes perfected under chapter 9, title 32 28, Idaho Code, at the same time the notice of lien is filed. 33 (3) As to real property, the perfected lien shall have the same priority 34 as a mortgage which is recorded at the same time the notice of lien is filed. 35 (4) Nothing herein limits the authority of the state tax commission to 36 subordinate its lien to another lien in the manner provided by section 37 63-3055, Idaho Code.
STATEMENT OF PURPOSE
RS08431C1
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-litigating
that decision in district court.
Additional changes were made to make the law easier to understand
and administer, including:
1) Clarifying the definition of "wages" and 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) Allowing the direct deposit of wages in out-of-state financial
institutions and allowing a fifteen-day period between the end
of the pay period and the regular payday.
4) Removing the 2 year/6 month distinction between no pay and
partial pay wage claims in favor of a 1 year statute of limitation
for all wage claims.
5) Allowing employees to file wage claims with either the
Department or the District Court and giving the court the
discretion to award attorney fees in civil cases.
FISCAL IMPACT
This bill will be revenue neutral. Additional expenses the
Department will incur by having the Department's Appeals Bureau
hear wage claim cases, 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
Statement of Purpose/Fiscal Impact H 4