House File 129 - Introduced




                                 HOUSE FILE       
                                 BY  ANDERSON, M. SMITH,
                                     STAED, KACENA, HANSON,
                                     HUNTER, MILLER, THEDE,
                                     and STECKMAN

                                      A BILL FOR

  1 An Act relating to wage discrimination under the Iowa civil
  2    rights Act of 1965 and in state contracting, making
  3    penalties applicable, and establishing an equal pay task
  4    force.
  5 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
    TLSB 2010HH (2) 87
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PAG LIN



  1  1    Section 1.  NEW SECTION.  19B.7A  State contracts ==== race and
  1  2 gender compensation reporting.
  1  3    1.  For purposes of ensuring compliance with chapter 216
  1  4 and this chapter, a nonstate party to a contract for goods or
  1  5 services with the state shall submit the following information
  1  6 regarding each of its employees in a report to the department
  1  7 of administrative services and the civil rights commission
  1  8 annually by January 1:
  1  9    a.  Total annual compensation.
  1 10    b.  Occupation.
  1 11    c.  Sex.
  1 12    d.  Race.
  1 13    e.  Length of employment.
  1 14    f.  Highest level of education attained.
  1 15    g.  Years of experience relevant to the employee's job.
  1 16    2.  Names of employees shall not be included in the report.
  1 17    Sec. 2.  Section 216.6A, Code 2017, is amended by adding the
  1 18 following new subsections:
  1 19    NEW SUBSECTION.  2A.  It shall be an unfair or discriminatory
  1 20 practice for any employer or agent of any employer to do any of
  1 21 the following:
  1 22    a.  Require, as a condition of employment, that an employee
  1 23 refrain from disclosing, discussing, or sharing information
  1 24 about the amount of the employee's wages, benefits, or other
  1 25 compensation or from inquiring, discussing, or sharing
  1 26 information about any other employee's wages, benefits, or
  1 27 other compensation.
  1 28    b.  Require, as a condition of employment, that an employee
  1 29 sign a waiver or other document that requires an employee to
  1 30 refrain from engaging in any of the activities permitted under
  1 31 paragraph "a".
  1 32    c.  Discriminate or retaliate against an employee for
  1 33 engaging in any of the activities permitted under paragraph "a".
  1 34    d.  Seek salary history information, including but not
  1 35 limited to information on compensation and benefits, from
  2  1 a potential employee as a condition of a job interview or
  2  2 employment. This paragraph shall not be construed to prohibit
  2  3 a prospective employer from asking a prospective employee what
  2  4 salary level the prospective employee would require in order to
  2  5 accept a job.
  2  6    e.  Release the salary history, including but not limited
  2  7 to information on compensation and benefits, of any current
  2  8 or former employee to any prospective employer in response to
  2  9 a request as part of an interview or hiring process without
  2 10 written authorization from such current or former employee.
  2 11    f.  Publish, list, or post within the employer's
  2 12 organization, with any employment agency, job=listing
  2 13 service, or internet site, or in any other public manner, an
  2 14 advertisement to recruit candidates for hire or independent
  2 15 contractors to fill a position within the employer's
  2 16 organization without including the minimum rate of pay of the
  2 17 position. The rate of pay may be by the hour, shift, day, week,
  2 18 salary, piece, commission, or other applicable rate. The rate
  2 19 of pay shall include overtime and allowances, if any, claimed
  2 20 as part of the minimum wage, including but not limited to
  2 21 tipped wages.
  2 22    g.  Pay a newly hired employee at less than the rate of pay
  2 23 advertised for the employee's position under paragraph "f".
  2 24    NEW SUBSECTION.  5.  The commission shall establish a
  2 25 statewide, toll=free telephone hotline for the purpose of
  2 26 receiving reports of violations of this section.
  2 27    Sec. 3.  Section 216.6A, subsection 3, Code 2016, is amended
  2 28 to read as follows:
  2 29    3.  a.  It shall be an affirmative defense to a claim arising
  2 30 under this section if any of the following applies:
  2 31    a.  (1)  Payment of wages is made pursuant to a seniority
  2 32 system.
  2 33    b.  (2)  Payment of wages is made pursuant to a merit system.
  2 34    c.  (3)  Payment of wages is made pursuant to a system which
  2 35 measures earnings by quantity or quality of production.
  3  1    d.  (4)  Pay differential is based on any other bona fide
  3  2  factor other than the age, race, creed, color, sex, sexual
  3  3 orientation, gender identity, national origin, religion,
  3  4 or disability of such employee, including but not limited
  3  5 to a bona fide factor relating to education, training, or
  3  6 experience.  This defense shall apply only if the employer
  3  7 demonstrates that the factor is not based on or derived from
  3  8 a differential in compensation based on age, race, creed,
  3  9 color, sex, sexual orientation, gender identity, national
  3 10 origin, religion, or disability; is job related with respect
  3 11 to the position in question; and is consistent with a business
  3 12 necessity. For purposes of this subparagraph, "business
  3 13 necessity" means an overriding legitimate business purpose
  3 14 such that the factor relied upon effectively fulfills the
  3 15 business purpose it is supposed to serve. This affirmative
  3 16 defense shall not apply if the employee demonstrates that an
  3 17 alternative business practice exists that would serve the same
  3 18 business purpose without producing the wage differential.
  3 19    b.  An affirmative defense under this subsection is not
  3 20 applicable unless one or more of the defenses listed in
  3 21 paragraph "a" account for the entire pay differential that is
  3 22 the subject of the claim.
  3 23    Sec. 4.  EQUAL PAY TASK FORCE AND REPORT.
  3 24    1.  An equal pay task force is created. The task force shall
  3 25 consist of the following members:
  3 26    a.  The director of the civil rights commission, or the
  3 27 director's designee.
  3 28    b.  The director of the department of human rights, or the
  3 29 director's designee.
  3 30    c.  An employee of the labor market information division
  3 31 of the department of workforce development designated by the
  3 32 director of the department.
  3 33    d.  A representative of the association of business and
  3 34 industry, appointed by the president of the association.
  3 35    e.  A member of a statewide labor organization appointed by
  4  1 the president of the organization.
  4  2    f.  Two representatives of organizations whose objectives
  4  3 include the elimination of pay disparities between men and
  4  4 women and minorities and nonminorities and that have undertaken
  4  5 advocacy, educational, or legislative initiatives in pursuit
  4  6 of such objectives appointed by the director of the civil
  4  7 rights commission in consultation with the leadership of those
  4  8 organizations.
  4  9    g.  Two representatives of postsecondary education
  4 10 institutions who have experience and expertise in the
  4 11 collection and analysis of data concerning pay disparities
  4 12 between men and women and minorities and nonminorities
  4 13 and whose research has been used in efforts to promote the
  4 14 elimination of such disparities appointed by the director of
  4 15 the civil rights commission in consultation with the leadership
  4 16 of those institutions.
  4 17    h.  Four members of the general assembly serving as
  4 18 ex officio, nonvoting members, one representative to be
  4 19 appointed by the speaker of the house of representatives, one
  4 20 representative to be appointed by the minority leader of the
  4 21 house of representatives, one senator to be appointed by the
  4 22 majority leader of the senate, and one senator to be appointed
  4 23 by the minority leader of the senate.
  4 24    2.  The task force shall study all of the following:
  4 25    a.  The extent of wage disparities, both in the public and
  4 26 private sectors, between men and women and between minorities
  4 27 and nonminorities.
  4 28    b.  Factors that cause, or which tend to cause, such
  4 29 disparities, including segregation between women and
  4 30 men and between minorities and nonminorities across and
  4 31 within occupations, payment of lower wages for work in
  4 32 female=dominated occupations, child=rearing responsibilities,
  4 33 the number of women who are heads of households, education,
  4 34 hours worked, and years on the job.
  4 35    c.  The consequences of such disparities on the economy and
  5  1 affected families.
  5  2    d.  Actions likely to lead to the elimination and prevention
  5  3 of such disparities.
  5  4    3.  The civil rights commission shall provide staffing
  5  5 services for the task force.
  5  6    4.  The voting members shall elect a chairperson from the
  5  7 voting membership of the task force. A majority of the voting
  5  8 members of the task force constitutes a quorum.
  5  9    5.  Voting members of the task force shall receive
  5 10 reimbursement for actual expenses incurred while serving
  5 11 in their official capacity only if they are not eligible
  5 12 for reimbursement by the organization that they represent.
  5 13 Legislative members shall be paid the per diem and expenses
  5 14 specified in section 2.10.
  5 15    6.  The task force shall submit a report regarding its
  5 16 findings and its recommendations regarding potential actions
  5 17 for the elimination and prevention of disparities in wages
  5 18 between men and women and minorities and nonminorities to the
  5 19 governor and the general assembly no later than December 21,
  5 20 2018.
  5 21                           EXPLANATION
  5 22 The inclusion of this explanation does not constitute agreement with
  5 23 the explanation's substance by the members of the general assembly.
  5 24    This bill relates to wage discrimination under Iowa Code
  5 25 chapter 216, the Iowa civil rights Act of 1965, and state
  5 26 contracting, and establishes an equal pay task force.
  5 27    WAGE DISCRIMINATION IN STATE CONTRACTING.  The bill requires
  5 28 a nonstate party to a contract for goods or services with the
  5 29 state to submit certain information regarding each of its
  5 30 employees in a report to the department of administrative
  5 31 services and the civil rights commission annually by January 1
  5 32 for purposes of ensuring compliance with Code chapters 19B and
  5 33 216. The required information is an employee's total annual
  5 34 compensation, occupation, sex, race, length of employment,
  5 35 highest level of education attained, and years of experience
  6  1 relevant to the employee's job. Names of employees shall not
  6  2 be included in the report.
  6  3    WAGE DISCRIMINATION IN EMPLOYMENT.  The bill establishes
  6  4 additional unfair or discriminatory practices relating to wages
  6  5 under Code section 216.6A.  Penalty and remedial provisions
  6  6 for discriminatory employment practices, including penalties
  6  7 specific to wage discrimination, are applicable under Code
  6  8 chapter 216 to violations of these requirements.
  6  9    The bill prohibits an employer from requiring that an
  6 10 employee refrain from disclosing, discussing, or sharing
  6 11 information about the amount of the employee's wages, benefits,
  6 12 or other compensation or from inquiring, discussing, or sharing
  6 13 information about any other employee's wages, benefits, or
  6 14 other compensation as a condition of employment. The bill
  6 15 prohibits an employer from requiring that an employee sign a
  6 16 waiver or other document that requires an employee to refrain
  6 17 from engaging in any of those activities as a condition of
  6 18 employment. The bill prohibits an employer from discriminating
  6 19 or retaliating against an employee for engaging in any of the
  6 20 activities.
  6 21    The bill prohibits an employer from seeking salary history
  6 22 information from a potential employee as a condition of a job
  6 23 interview or employment. This provision shall not be construed
  6 24 to prohibit a prospective employer from asking a prospective
  6 25 employee what salary level the prospective employee would
  6 26 require in order to accept a job.
  6 27    The bill prohibits an employer from releasing the salary
  6 28 history of any current or former employee to any prospective
  6 29 employer in response to a request as part of an interview or
  6 30 hiring process without written authorization from such current
  6 31 or former employee.
  6 32    The bill prohibits an employer from publishing, listing, or
  6 33 posting within the employer's organization, with any employment
  6 34 agency, job=listing service, or internet site, or in any other
  6 35 public manner, an advertisement to recruit candidates for
  7  1 hire or independent contractors to fill a position within the
  7  2 employer's organization without including the minimum rate of
  7  3 pay of the position. The rate of pay shall include overtime
  7  4 and allowances, if any, claimed as part of the minimum wage,
  7  5 including but not limited to tipped wages. The bill prohibits
  7  6 an employer from paying a newly hired employee at less than the
  7  7 rate of pay advertised for the employee's position.
  7  8    Under current law, an employer has an affirmative defense
  7  9 to a claim under Code section 216.6A if a pay differential
  7 10 is based on any other factor other than prohibited wage
  7 11 discrimination. The bill provides that an employer has an
  7 12 affirmative defense to a claim under Code section 216.6A if a
  7 13 pay differential is based on any other bona fide factor other
  7 14 than prohibited discrimination, including but not limited
  7 15 to a bona fide factor relating to education, training, or
  7 16 experience. However, this defense shall only apply if the
  7 17 employer demonstrates that the factor is not based on or
  7 18 derived from prohibited wage discrimination, is job related
  7 19 with respect to the position in question, and is consistent
  7 20 with a business necessity. The bill defines "business
  7 21 necessity" as an overriding legitimate business purpose
  7 22 such that the factor relied upon effectively fulfills the
  7 23 business purpose it is supposed to serve. This affirmative
  7 24 defense shall not apply if the employee demonstrates that an
  7 25 alternative business practice exists that would serve the same
  7 26 business purpose without producing the wage differential.
  7 27    The bill provides that affirmative defenses to a claim under
  7 28 Code section 216.6A are not applicable unless one or more of
  7 29 the defenses account for the entire pay differential that is
  7 30 the subject of the claim.
  7 31    The bill also requires the civil rights commission to
  7 32 establish a statewide, toll=free telephone hotline for the
  7 33 purpose of receiving reports of violations of Code section
  7 34 216.6A.
  7 35    EQUAL PAY TASK FORCE.  The bill creates an equal pay task
  8  1 force to study the extent of discriminatory wage disparities
  8  2 in the public and private sectors, the factors that cause
  8  3 such disparities, the consequences of such disparities, and
  8  4 actions likely to lead to the elimination and prevention of
  8  5 such disparities.
  8  6    The bill establishes the membership of the task force,
  8  7 including ex officio, nonvoting legislative members. The civil
  8  8 rights commission shall provide staffing services for the task
  8  9 force.
  8 10    The task force shall submit a report regarding its findings
  8 11 and its recommendations regarding potential actions for the
  8 12 elimination and prevention of discriminatory wage disparities
  8 13 to the governor and the general assembly no later than December
  8 14 21, 2018.
       LSB 2010HH (2) 87
       je/rj