June 2025 Iowa Q&A Roundup

Q       If we send an employee to another country for a three-month assignment, are we required to pay overtime under the Fair Labor Standards Act (FLSA), or can we just pay a daily rate? Must we follow the pay regulations of the country the employee will be working in?

In general, when employees are working in another country, you need to be aware of and follow the stricter payroll practices. There are also issues of payroll tax, which will likely be due in the country they’re working in. There can be factors that mitigate the “local rules,” but this is state- and country-specific.

Q       Can we deny someone employment based on the person’s preemployment drug screen test that was positive for cannabis if cannabis is legal in our state?

This can be a conundrum because cannabis may be legal in your state but remains federally illegal. What actions you can take without significant risk may depend on the structure of the state statute legalizing cannabis, whether the use of the drug is for a medical condition, and the nature of your industry. The rules can be different in health care because of Drug Enforcement Administration (DEA) considerations and for certain safety-sensitive functions.