Iowa Code 94A.4 – Prohibitions
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1. A person shall not require an employee to pay a fee as a condition of application with an employer or an employment agency.
Terms Used In Iowa Code 94A.4
- Commissioner: means the labor commissioner, appointed pursuant to section 91. See Iowa Code 94A.1
- Contract: A legal written agreement that becomes binding when signed.
- Employee: means a person who seeks employment or who obtains employment through an employment agency. See Iowa Code 94A.1
- Employer: means a person who seeks one or more employees or who obtains one or more employees. See Iowa Code 94A.1
- Employment agency: means a person who brings together those desiring to employ and those desiring employment and who receives a fee, privilege, or other consideration directly or indirectly from an employee for the service. See Iowa Code 94A.1
- following: when used by way of reference to a chapter or other part of a statute mean the next preceding or next following chapter or other part. See Iowa Code 4.1
- person: means individual, corporation, limited liability company, government or governmental subdivision or agency, business trust, estate, trust, partnership or association, or any other legal entity. See Iowa Code 4.1
- state: when applied to the different parts of the United States, includes the District of Columbia and the territories, and the words "United States" may include the said district and territories. See Iowa Code 4.1
- year: means twelve consecutive months. See Iowa Code 4.1
2. An employee shall not be required to pay a fee to an employer as a condition of hire.
3. An employer shall not require an employee to reimburse the employer for a fee the employer paid to an employment agency or other person or entity when the employee was hired.
4. An employment agency shall not do any of the following:
a. Send an employee or an application of an employee to an employer who has not applied to the employment agency for help or labor.
b. Through false notice, advertisement, or other means, fraudulently promise or deceive a person seeking help or employment with regard to the service to be rendered by the employment agency.
c. Divide a fee received from an employee with an employer or any member of an employer’s staff. The division of fees between one or more employment agencies that provided services is not prohibited.
d. Charge an employee any fee greater than the fee schedule on file with the commissioner without prior consent of the commissioner.
e. Charge a fee greater than fifteen percent of the employee’s annual gross earnings.
f. Require an employee to pay a fee in advance of earnings. If an employee wishes to pay a fee in advance of earnings, the contract between the employee and employment agency shall state that any advance payment by the employee is voluntary. If an employee works less than one year at the referred employment, the employment agency shall refund any amount in excess of fifteen percent of the employee’s gross earnings from the referred employment.