WAGE AND HOUR DEMAND LETTER
State of Iowa
Iowa Wage Payment Collection Law / Fair Labor Standards Act Claims
[ATTORNEY/FIRM LETTERHEAD]
[Firm Name]
[Address Line 1]
[City, Iowa ZIP]
Tel: [Phone Number]
Fax: [Fax Number]
[Attorney Email]
[Iowa State Bar Number]
VIA CERTIFIED MAIL, RETURN RECEIPT REQUESTED
AND VIA EMAIL TO: [recipient_email]
[Date]
[Employer Contact Name]
[Title]
[Company Legal Name]
[Company Address]
[City, State ZIP]
Copy to:
[Company General Counsel, if known]
[Registered Agent, if different]
Re: Wage and Hour Violations - [Client Full Name]
[and All Similarly Situated Employees - if collective/class action contemplated]
Demand for Unpaid Wages Under Iowa and Federal Law
CONFIDENTIAL SETTLEMENT COMMUNICATION PURSUANT TO FRE 408 AND IOWA R. EVID. 5.408
Dear [Mr./Ms./Mx. Last Name]:
This firm has been retained by [Client Full Name] ("our client") to pursue claims for unpaid wages against [Company Legal Name] ("[Company Short Name]" or "the Company") arising from violations of the Iowa Wage Payment Collection Law, Iowa Code Chapter 91A, the Iowa Minimum Wage Law, Iowa Code Chapter 91D, and the Fair Labor Standards Act ("FLSA"), 29 U.S.C. Section 201 et seq.
Please direct all further communications regarding this matter to our office.
I. IOWA-SPECIFIC LEGAL FRAMEWORK
A. Applicable Wage and Hour Law
Iowa's minimum wage matches the federal minimum wage. Iowa does not have a state overtime law, so overtime claims must be pursued under the FLSA. However, Iowa's Wage Payment Collection Law provides significant penalties for failure to pay wages.
Key Legal Framework:
| Category | Iowa/Federal Requirement | Citation |
|---|---|---|
| Minimum Wage | $7.25/hour | Iowa Code Section 91D.1 |
| Overtime | 1.5x regular rate after 40 hours/week (FLSA only) | 29 U.S.C. Section 207 |
| Tipped Minimum | $4.35/hour (with tip credit) | Iowa Code Section 91D.1(1)(b) |
| Payment Frequency | Monthly minimum; semi-monthly/bi-weekly typical | Iowa Code Section 91A.3 |
B. Statute of Limitations
| Claim Type | Limitations Period | Citation |
|---|---|---|
| Iowa Wage Claims | 2 years | Iowa Code Section 614.1(4) |
| FLSA (standard) | 2 years | 29 U.S.C. Section 255(a) |
| FLSA (willful) | 3 years | 29 U.S.C. Section 255(a) |
| Iowa Contract (written) | 10 years | Iowa Code Section 614.1(5) |
C. Iowa Wage Payment Requirements
Wage Payment Timing:
- Iowa Code Section 91A.3: Wages must be paid at least monthly on regular paydays
- Iowa Code Section 91A.3: Most hourly employees must be paid at least bi-weekly or semi-monthly
- Iowa Code Section 91A.4: Final wages due on next regular payday
Payroll Deductions:
- Iowa Code Section 91A.5: Deductions permitted only with written authorization
- Cannot deduct for cash shortages, breakage, or loss of employer property unless due to willful or intentional disregard of employer's interests
- Deductions must be for employee's benefit
D. Enforcement Mechanisms
Administrative:
- Iowa Division of Labor Services, Wage Claim Unit
- File complaint: 150 Des Moines Street, Des Moines, IA 50309
- Phone: (515) 281-3606
- Administrative investigation available for claims up to $6,500
Private Right of Action:
- Iowa Code Section 91A.8: Private action for unpaid wages
- Liquidated damages and attorney's fees available
- FLSA: 29 U.S.C. Section 216(b) provides private right of action
E. Iowa Penalty Provisions
| Remedy | Standard | Citation |
|---|---|---|
| Back Wages | Full unpaid amount | Iowa Code Section 91A.8 |
| Liquidated Damages | 5% per day (capped at amount equal to wages owed) | Iowa Code Section 91A.8 |
| Attorney's Fees | Reasonable fees for prevailing plaintiff | Iowa Code Section 91A.8 |
| Court Costs | Recoverable | Iowa Code Section 91A.8 |
F. Tip Credit Rules (Iowa)
Iowa has its own tip credit rules:
| Requirement | Standard |
|---|---|
| Cash wage minimum | $4.35/hour (60% of minimum wage) |
| Tip credit maximum | $2.90/hour |
| Total must equal | $7.25/hour minimum |
| Notice required | Yes |
| Tip pooling | Valid only among customarily tipped employees |
II. INTRODUCTION AND SUMMARY OF CLAIMS
Our client was employed by [Company Short Name] as a [Job Title] from [Start Date] to [End Date / Present], working at [Work Location(s)] in Iowa. During this employment, [Company Short Name] violated Iowa and federal wage laws by:
[ ] Failing to pay the minimum wage of $7.25 per hour
[ ] Failing to pay overtime compensation at 1.5 times the regular rate for hours worked over 40 per week (FLSA)
[ ] Misclassifying our client as exempt from overtime when [he/she/they] should have been classified as non-exempt
[ ] Misclassifying our client as an independent contractor when [he/she/they] was an employee entitled to wage protections
[ ] Failing to pay for all hours worked, including:
[ ] Off-the-clock work before/after shifts
[ ] Uncompensated meal periods during which work was performed
[ ] Time spent on required pre-shift or post-shift activities
[ ] Travel time that should have been compensated
[ ] Training time
[ ] On-call time
[ ] Failing to pay wages on regular paydays as required by Iowa Code Section 91A.3
[ ] Failing to pay final wages timely upon separation
[ ] Making unlawful deductions from wages
[ ] Unlawful tip pooling or tip credit violations
These violations entitle our client to liquidated damages under Iowa law.
III. FACTUAL BACKGROUND
A. Employment Relationship
| Category | Details |
|---|---|
| Employee Name | [Client Full Name] |
| Job Title(s) | [Title(s)] |
| Dates of Employment | [Start Date] to [End Date / Present] |
| Work Location(s) | [Address(es) in Iowa] |
| Primary Duties | [Describe job duties] |
| Rate of Pay | $[Amount] per [hour/week/year] |
| Classification | [Exempt / Non-Exempt / Independent Contractor] |
| Pay Frequency | [Weekly / Bi-weekly / Semi-monthly / Monthly] |
| Supervisor(s) | [Name(s) and Title(s)] |
B. Hours Worked
Our client regularly worked the following schedule:
Typical Weekly Schedule:
| Day | Scheduled Hours | Actual Hours Worked | Unpaid Time |
|---|---|---|---|
| Monday | [X:XX - X:XX] | [X:XX - X:XX] | [X hours] |
| Tuesday | [X:XX - X:XX] | [X:XX - X:XX] | [X hours] |
| Wednesday | [X:XX - X:XX] | [X:XX - X:XX] | [X hours] |
| Thursday | [X:XX - X:XX] | [X:XX - X:XX] | [X hours] |
| Friday | [X:XX - X:XX] | [X:XX - X:XX] | [X hours] |
| Saturday | [X:XX - X:XX] | [X:XX - X:XX] | [X hours] |
| Sunday | [X:XX - X:XX] | [X:XX - X:XX] | [X hours] |
| Weekly Total | [X hours] | [X hours] | [X hours] |
Average overtime hours per week not compensated at 1.5x rate: [X hours]
C. Specific Wage Violations
[Detail specific violations as applicable - off-the-clock work, misclassification, tip violations, etc.]
IV. LEGAL ANALYSIS
A. Coverage Under Iowa and Federal Law
Iowa Wage Payment Collection Law Coverage:
Iowa Code Chapter 91A applies to all employers in Iowa. [Company Short Name] is a covered employer.
FLSA Coverage:
[Company Short Name] is subject to the FLSA because it is an enterprise engaged in commerce with annual gross sales of at least $500,000. 29 U.S.C. Section 203(s)(1)(A). [Alternatively, describe individual coverage.]
B. Minimum Wage Violation (Iowa Code Section 91D.1)
Iowa law requires covered employers to pay employees at least $7.25 per hour. By [describe violation], [Company Short Name] failed to pay our client the required minimum wage.
C. Overtime Violation (29 U.S.C. Section 207)
The FLSA requires employers to pay non-exempt employees overtime at a rate of 1.5 times the regular rate for all hours worked over 40 in a workweek. Note: Iowa does not have a state overtime law.
Our client worked an average of [X hours] per week. [Company Short Name] failed to pay overtime compensation for an average of [X overtime hours] per week.
D. Wage Payment Violations (Iowa Code Section 91A)
[Company Short Name] violated Iowa's Wage Payment Collection Law by:
- [Failing to pay wages on regular paydays]
- [Failing to pay final wages on next regular payday]
- [Making unauthorized deductions]
E. Liquidated Damages
Under Iowa Code Section 91A.8, our client is entitled to liquidated damages of 5% of unpaid wages per day, up to an amount equal to the unpaid wages (effectively double damages).
V. DAMAGES CALCULATION
A. Iowa and Federal Damages
Relevant Period: [Date - 2/3 years prior] to [End Date / Present]
Total Weeks in Period: [X weeks]
1. Unpaid Overtime (FLSA)
| Period | Avg. OT Hours/Week | Regular Rate | OT Rate (1.5x) | Unpaid OT/Week | Weeks | Total |
|---|---|---|---|---|---|---|
| [Period 1] | [X] | $[X.XX] | $[X.XX] | $[X.XX] | [X] | $[Amount] |
| Unpaid Overtime Subtotal | $[Amount] |
2. Unpaid Minimum Wage
| Period | Hours Below MW | Shortfall/Hour | Weeks | Total |
|---|---|---|---|---|
| [Period] | [X] | $[X.XX] | [X] | $[Amount] |
| Minimum Wage Subtotal | $[Amount] |
3. Off-the-Clock Work
| Activity | Hours/Week | Rate | Weeks | Total |
|---|---|---|---|---|
| [Pre-shift work] | [X] | $[X.XX] | [X] | $[Amount] |
| Off-the-Clock Subtotal | $[Amount] |
4. Iowa Liquidated Damages (5% per day, capped)
| Wages Owed | Days Late | 5% Daily Rate | Total (capped at wages owed) |
|---|---|---|---|
| $[Amount] | [X days] | 5% | $[Amount] |
B. Summary of Damages
| Category | Amount |
|---|---|
| Unpaid Wages | $[Amount] |
| Iowa Liquidated Damages (5%/day, max = wages) | $[Amount] |
| or FLSA Liquidated Damages (equal to wages) | $[Amount] |
| Pre-Judgment Interest | $[Amount] |
| Attorney's Fees (estimated) | $[Amount] |
| Costs (estimated) | $[Amount] |
| TOTAL INDIVIDUAL DAMAGES | $[Amount] |
C. Collective/Class Action Exposure
| Category | Individual | Estimated Class Size | Total Exposure |
|---|---|---|---|
| Unpaid Wages | $[Amount] | [X employees] | $[Amount] |
| Liquidated Damages | $[Amount] | [X employees] | $[Amount] |
| Collective/Class Exposure | $[Amount] |
VI. SETTLEMENT DEMAND
Based on the foregoing, we demand that [Company Short Name] pay $[Settlement Demand Amount] to settle all claims of [Client Full Name].
This demand includes:
- Unpaid wages
- Liquidated damages under Iowa law
- Pre-judgment interest
- Attorney's fees and costs incurred to date
This demand will remain open for twenty-one (21) days from the date of this letter, expiring on [Response Deadline Date].
VII. RESPONSE AND LITIGATION
If we do not receive a satisfactory response by the deadline, we will file suit in:
[ ] United States District Court for the Northern District of Iowa
[ ] United States District Court for the Southern District of Iowa
[ ] Iowa District Court, [County]
The Complaint will seek:
1. Unpaid minimum wages under Iowa Code Section 91D.1 and 29 U.S.C. Section 206
2. Unpaid overtime under 29 U.S.C. Section 207
3. Wage payment violations under Iowa Code Chapter 91A
4. Liquidated damages under Iowa Code Section 91A.8
5. Attorney's fees and costs
6. FLSA collective action certification / Iowa class certification
VIII. DOCUMENT PRESERVATION
LITIGATION HOLD NOTICE
[Company Short Name] must immediately preserve all documents and ESI relevant to these claims, including:
[ ] Time and attendance records
[ ] Payroll records and pay stubs
[ ] Personnel files and job descriptions
[ ] Employee handbooks and policies
[ ] Scheduling records
[ ] Communications regarding pay practices
[ ] Training materials
[ ] Prior Iowa Division of Labor investigations
[ ] Tip records (if applicable)
Spoliation of evidence will result in severe sanctions.
IX. CONFIDENTIALITY
This letter is a confidential settlement communication protected under Federal Rule of Evidence 408 and Iowa Rule of Evidence 5.408.
We look forward to your prompt response.
Sincerely,
[Attorney Name]
[Title]
[Firm Name]
[Iowa State Bar No.]
Enclosures:
[ ] Authorization to Represent
[ ] Pay stubs / wage statements (sample)
[ ] Time records (if available)
cc: [Client Name] (via email)
IOWA-SPECIFIC PRACTICE NOTES
[ ] Minimum Wage Matches Federal: Iowa's $7.25 minimum wage equals the federal minimum
[ ] No State Overtime Law: Iowa does not have a state overtime statute; use FLSA for overtime claims
[ ] 5% Daily Penalty: Iowa Code Section 91A.8 provides 5% per day liquidated damages (capped at amount equal to wages owed)
[ ] Higher Tipped Minimum: Iowa's tipped minimum ($4.35) is higher than federal ($2.13)
[ ] Administrative Claim Limit: Iowa Division of Labor handles claims up to $6,500; larger claims require court action
[ ] Federal Court Venue:
- Northern District (Cedar Rapids, Sioux City): Northern Iowa
- Southern District (Des Moines, Davenport): Southern Iowa
[ ] State Courts: Iowa District Courts in each county
[ ] Iowa Division of Labor Contact:
- Address: 150 Des Moines Street, Des Moines, IA 50309
- Phone: (515) 281-3606
- Website: iowadivisionoflabor.gov
[ ] Preemption Note: Iowa law does not permit municipalities to set higher minimum wages (Iowa Code Section 91D.7)