STATEHOUSE – House Bill (HB) 1126 authored by State Representative Dave Ober (R-Albion) passed out of the House this week with a 91-3 vote.
HB 1126 ensures that an employer who fails to make timely wage payments to an employee in bad faith may be ordered by a court to pay damages of at least 10 percent of the unpaid wage per day including a reasonable fee for the employee’s attorney, not exceeding 200 percent of the original unpaid wages.
“The Indiana Department of Labor receives 2,000 wage payment complaints each year,” said Rep. Ober. “This bill helps those employees get their back wages while protecting businesses that make an honest clerical error from frivolous law suits and ridiculous penalties. It also makes wage payment disputes subject to a judge’s discretion, preventing employers from falling prey to trial lawyers looking to make a buck.”
This bill also allows employees to assign a portion of their wages toward the purchase or use of uniforms or necessary equipment up to $2,500 per year, reimbursement for education or employee skills training, or an advance in payroll or vacation pay.
“The second part of this legislation is already common practice, but now will be solidified into state statute, granting both employees and employers greater flexibility in assigning wages for a specific purpose,” Rep. Ober said.
The bill now moves to the Senate for consideration.
Rep. David Ober represents all of Noble County and portions of Allen, Elkhart, LaGrange and Whitley counties.