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SF 355

A bill for an act relating to overtime pay earned by state employees.

2025-2026 Regular Session Introduced by Liz Bennett and 11 co-sponsors

SF 355 allows Iowa state employees earning under $125,000 to receive overtime pay, ensuring fair compensation for extra hours worked beyond their standard schedule.

Subcommittee: Driscoll, Lofgren, and Townsend.
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Bill Summary · SF 355

Summary of SF 355: Overtime Pay for State Employees

Bill Number: SF 355
Introduced On: February 18, 2025
Current Status: Subcommittee: Driscoll, Lofgren, and Townsend
Classification: Bill
Subject Areas: Appropriations, Labor and Employment, Salaries and Wages, State Employees

Purpose and Intent

The primary purpose of SF 355 is to amend existing laws regarding overtime pay for state employees in Iowa. The bill aims to ensure that certain state employees who earn less than $125,000 annually and are not covered by the federal Fair Labor Standards Act (FLSA) are eligible for overtime compensation. This change seeks to provide fairer compensation for state employees who may be working beyond their standard hours without receiving overtime pay.

Key Provisions

  1. Amendment to Section 70A.1:

    • The bill amends Section 70A.1 of the Iowa Code to clarify the salary structure for state employees.
    • Salaries provided in appropriation acts will replace existing statutory salaries for specified positions.

  2. Overtime Eligibility:

    • State employees earning an annual salary of less than $125,000 who are not covered by the FLSA will be eligible for overtime pay.
    • Overtime will be compensated at a rate of one and one-half times the employee's regular hourly rate.

  3. Salary Calculation:

    • Salaries for eligible state employees will be calculated on an hourly basis for those covered by the overtime provisions.
    • The bill specifies that salaries should be divided by the number of pay periods in the fiscal year to determine the applicable rate.

Impact

  • Affected Individuals: The bill primarily impacts state employees in Iowa who earn less than $125,000 annually and are not currently covered by the FLSA's overtime provisions. This includes various positions within state government that may require additional hours beyond the standard workweek.

  • Financial Implications: By allowing overtime pay, the bill may increase the overall payroll costs for the state, depending on the number of employees who qualify for overtime under the new provisions.

Procedural Aspects

  • Subcommittee Review: The bill has been referred to a subcommittee consisting of members Driscoll, Lofgren, and Townsend for further consideration.
  • Next Steps: Following subcommittee review, the bill may be subject to amendments and further legislative action before it can be enacted.

This summary provides an overview of SF 355, highlighting its intent to enhance overtime pay eligibility for certain state employees, the key provisions involved, and the potential impacts on state employment practices.

Compiled from official sources — confirm details with the bill’s official record.

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