Court of Appeals Addresses Issues of Rate, Penalty and Costs
In Vitzthum v. KLM Acquisition Corp. , No. 13-1441 (Iowa App. Oct. 1, 2014), the court of appeals addressed questions related to the correct rate, the imposition of penalties and costs. The court affirms the rate questions, finds that there was substantial evidence to support the denial of penalties and affirms the costs findings of the commissioner. At the appeal level, the commissioner found that the higher rate urged by claimant ($305.29) was correct, but refused to impose penalties for the underpayment of rate on the employer. The district court affirmed this amount, but remanded for further fact-finding on the issue of penalty benefits based on the underpayment of the correct weekly rate after July 1, 2009, the date the new penalty statute (section 86.13(4)) went into effect. The court concludes that the rate was correctly determined, finding that the usual calculation method in section 85.36(6) controlled. The employer had argued that its payment of wages was...