Uniform Rental Bill Signed by Indiana Governor

Posted May 7, 2019 at 1:25 pm




Legislation introduced on behalf of TRSA recently passed both chambers of the Indiana General Assembly and has been signed into law by Gov. Eric Holcomb (R). The new law allows for employers to deduct the cost of uniform rental from an employees’ paycheck. The law goes into effect on July 1.

“We are excited to get this across the finish line,” said Kevin Schwalb, TRSA’s vice president of government relations and certifications. “While this may have seemed like an easy fix from the beginning, it has been a constant negotiation. There were some sticking points where TRSA was able to keep our interests represented while other industries were not so fortunate.”

At one point, an amendment was introduced by State Sen. David Niezgodski (D) which would allow for the rental of uniforms only if they did NOT contain a company logo, which would affect a significant majority of uniform-rental programs. TRSA was able to negotiate that language out of the bill while keeping the legislative process on track.

The Indiana Wage Assignment Act of 2015 lays out what items are allowable for deducting wages from an employee’s paycheck. One of the items laid out in the legislation is the purchase of uniforms; however, the rental of uniforms was not included in the statute. While the actual language specifically mentions only the purchasing of uniforms, the Indiana Department of Labor’s Wage and Hour Division previously interpreted that the law allows for both the purchase and rental of uniforms. This confusion caused lawsuits to be levied against employers and laundry providers for inappropriately deducting employee wages.

Working with Indiana State Sen. Phil Boots (R), and Reps. Heath VanNatter (R) and Doug Gutwein (R), TRSA was able to introduce legislation – SB 99 – to reform the Act by getting the rental of uniforms included in the law.

TRSA appreciates all the help provided by the Indiana State Chamber of Commerce throughout this process.

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