Bill Text: IA SF139 | 2021-2022 | 89th General Assembly | Introduced


Bill Title: A bill for an act relating to wage discrimination under the Iowa civil rights Act of 1965, making penalties applicable, and establishing an equal pay task force.

Spectrum: Partisan Bill (Democrat 13-0)

Status: (Introduced) 2021-01-26 - Subcommittee: Schultz, Brown, and Jochum. S.J. 161. [SF139 Detail]

Download: Iowa-2021-SF139-Introduced.html
Senate File 139 - Introduced SENATE FILE 139 BY BOULTON , GIDDENS , BOLKCOM , BISIGNANO , TRONE GARRIOTT , MATHIS , JOCHUM , QUIRMBACH , PETERSEN , J. SMITH , WAHLS , RAGAN , and DOTZLER A BILL FOR An Act relating to wage discrimination under the Iowa civil 1 rights Act of 1965, making penalties applicable, and 2 establishing an equal pay task force. 3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 4 TLSB 1509XS (3) 89 je/rn
S.F. 139 Section 1. Section 216.6A, Code 2021, is amended by adding 1 the following new subsection: 2 NEW SUBSECTION . 2A. It shall be an unfair or discriminatory 3 practice for any employer or agent of any employer to do any of 4 the following: 5 a. Require, as a condition of employment, that an employee 6 refrain from disclosing, discussing, or sharing information 7 about the amount of the employee’s wages, benefits, or other 8 compensation or from inquiring, discussing, or sharing 9 information about any other employee’s wages, benefits, or 10 other compensation. 11 b. Require, as a condition of employment, that an employee 12 sign a waiver or other document that requires an employee to 13 refrain from engaging in any of the activities permitted under 14 paragraph “a” . 15 c. Discriminate or retaliate against an employee for 16 engaging in any of the activities permitted under paragraph “a” . 17 d. Seek salary history information, including but not 18 limited to information on compensation and benefits, from 19 a potential employee as a condition of a job interview or 20 employment. This paragraph shall not be construed to prohibit 21 a prospective employer from asking a prospective employee what 22 salary level the prospective employee would require in order to 23 accept a job. 24 e. Release the salary history, including but not limited 25 to information on compensation and benefits, of any current 26 or former employee to any prospective employer in response to 27 a request as part of an interview or hiring process without 28 written authorization from such current or former employee. 29 Sec. 2. Section 216.6A, subsection 3, Code 2021, is amended 30 to read as follows: 31 3. a. It shall be an affirmative defense to a claim arising 32 under this section if any of the following applies: 33 a. (1) Payment of wages is made pursuant to a seniority 34 system. 35 -1- LSB 1509XS (3) 89 je/rn 1/ 6
S.F. 139 b. (2) Payment of wages is made pursuant to a merit system. 1 c. (3) Payment of wages is made pursuant to a system which 2 measures earnings by quantity or quality of production. 3 d. (4) Pay differential is based on any other factor other 4 than the age, race, creed, color, sex, sexual orientation, 5 gender identity, national origin, religion, or disability 6 of such employee , including but not limited to a bona fide 7 factor relating to education, training, or experience . 8 This affirmative defense shall apply only if the employer 9 demonstrates that the factor is not based on or derived from 10 a differential in compensation based on age, race, creed, 11 color, sex, sexual orientation, gender identity, national 12 origin, religion, or disability; is job-related with respect 13 to the position in question; and is consistent with a business 14 necessity. For purposes of this subparagraph, “business 15 necessity” means an overriding legitimate business purpose 16 such that the factor relied upon effectively fulfills the 17 business purpose it is supposed to serve. This affirmative 18 defense shall not apply if the employee demonstrates that an 19 alternative business practice exists that would serve the same 20 business purpose without producing the wage differential. 21 b. An affirmative defense under this subsection is not 22 applicable unless one or more of the affirmative defenses 23 listed in paragraph “a” account for the entire pay differential 24 that is the subject of the claim. 25 Sec. 3. EQUAL PAY TASK FORCE AND REPORT. 26 1. An equal pay task force is created. The task force shall 27 consist of the following members: 28 a. The director of the civil rights commission, or the 29 director’s designee. 30 b. The director of the department of human rights, or the 31 director’s designee. 32 c. The director of the department of workforce development, 33 or the director’s designee. 34 d. An employee of the labor market information division 35 -2- LSB 1509XS (3) 89 je/rn 2/ 6
S.F. 139 of the department of workforce development designated by the 1 director of the department. 2 e. A representative of the association of business and 3 industry, appointed by the president of the association. 4 f. A member of a statewide labor organization appointed by 5 the president of the organization. 6 g. Two representatives of organizations whose objectives 7 include the elimination of pay disparities between men and 8 women and minorities and nonminorities and that have undertaken 9 advocacy, educational, or legislative initiatives in pursuit 10 of such objectives appointed by the director of the civil 11 rights commission in consultation with the leadership of those 12 organizations. 13 h. Two representatives of postsecondary education 14 institutions who have experience and expertise in the 15 collection and analysis of data concerning pay disparities 16 between men and women and minorities and nonminorities 17 and whose research has been used in efforts to promote the 18 elimination of such disparities appointed by the director of 19 the civil rights commission in consultation with the leadership 20 of those institutions. 21 i. Four members of the general assembly serving as 22 ex officio, nonvoting members, one representative to be 23 appointed by the speaker of the house of representatives, one 24 representative to be appointed by the minority leader of the 25 house of representatives, one senator to be appointed by the 26 majority leader of the senate, and one senator to be appointed 27 by the minority leader of the senate. 28 2. Membership of the task force specified in subsection 1, 29 paragraphs “d” through “h”, shall comply with section 69.16A. 30 3. The task force shall study all of the following: 31 a. The extent of wage disparities, both in the public and 32 private sectors, between men and women and between minorities 33 and nonminorities. 34 b. Factors that cause, or which tend to cause, such 35 -3- LSB 1509XS (3) 89 je/rn 3/ 6
S.F. 139 disparities, including segregation between women and 1 men and between minorities and nonminorities across and 2 within occupations, payment of lower wages for work in 3 female-dominated occupations, child-rearing responsibilities, 4 the number of women who are heads of households, education, 5 hours worked, and years on the job. 6 c. The consequences of such disparities on the economy and 7 affected families. 8 d. Actions likely to lead to the elimination and prevention 9 of such disparities. 10 4. The department of workforce development shall provide 11 staffing services for the task force. 12 5. The voting members shall elect a chairperson from the 13 voting membership of the task force. A majority of the voting 14 members of the task force constitutes a quorum. 15 6. Voting members of the task force shall receive 16 reimbursement for actual expenses incurred while serving 17 in their official capacity only if they are not eligible 18 for reimbursement by the organization that they represent. 19 Legislative members shall be paid the per diem and expenses 20 specified in section 2.10. 21 7. The task force shall submit a report regarding its 22 findings and its recommendations regarding potential actions 23 for the elimination and prevention of disparities in wages 24 between men and women and minorities and nonminorities to the 25 governor and the general assembly no later than December 16, 26 2022. 27 EXPLANATION 28 The inclusion of this explanation does not constitute agreement with 29 the explanation’s substance by the members of the general assembly. 30 This bill relates to wage discrimination under Code chapter 31 216, the Iowa civil rights Act of 1965, and establishes an 32 equal pay task force. 33 WAGE DISCRIMINATION IN EMPLOYMENT. The bill establishes 34 additional unfair or discriminatory practices relating to wages 35 -4- LSB 1509XS (3) 89 je/rn 4/ 6
S.F. 139 under Code section 216.6A. Penalty and remedial provisions 1 for discriminatory employment practices, including penalties 2 specific to wage discrimination, are applicable under Code 3 chapter 216 to violations of these requirements. 4 The bill prohibits an employer from requiring that an 5 employee refrain from disclosing, discussing, or sharing 6 information about the amount of the employee’s wages, benefits, 7 or other compensation or from inquiring, discussing, or sharing 8 information about any other employee’s wages, benefits, or 9 other compensation as a condition of employment. The bill 10 prohibits an employer from requiring that an employee sign a 11 waiver or other document that requires an employee to refrain 12 from engaging in any of those activities as a condition of 13 employment. The bill prohibits an employer from discriminating 14 or retaliating against an employee for engaging in any of the 15 activities. 16 The bill prohibits an employer from seeking salary history 17 information from a potential employee as a condition of a job 18 interview or employment. This provision shall not be construed 19 to prohibit a prospective employer from asking a prospective 20 employee what salary level the prospective employee would 21 require in order to accept a job. 22 The bill prohibits an employer from releasing the salary 23 history of any current or former employee to any prospective 24 employer in response to a request as part of an interview or 25 hiring process without written authorization from such current 26 or former employee. 27 Under current law, an employer has an affirmative defense 28 to a claim under Code section 216.6A if a pay differential 29 is based on any other factor other than prohibited wage 30 discrimination. The bill provides that an employer has an 31 affirmative defense to a claim under Code section 216.6A if a 32 pay differential is based on any other bona fide factor other 33 than prohibited discrimination, including but not limited 34 to a bona fide factor relating to education, training, or 35 -5- LSB 1509XS (3) 89 je/rn 5/ 6
S.F. 139 experience. However, this defense shall only apply if the 1 employer demonstrates that the factor is not based on or 2 derived from prohibited wage discrimination, is job-related 3 with respect to the position in question, and is consistent 4 with a business necessity. The bill defines “business 5 necessity” as an overriding legitimate business purpose 6 such that the factor relied upon effectively fulfills the 7 business purpose it is supposed to serve. This affirmative 8 defense shall not apply if the employee demonstrates that an 9 alternative business practice exists that would serve the same 10 business purpose without producing the wage differential. 11 The bill provides that affirmative defenses to a claim under 12 Code section 216.6A are not applicable unless one or more of 13 the defenses account for the entire pay differential that is 14 the subject of the claim. 15 EQUAL PAY TASK FORCE. The bill creates an equal pay task 16 force to study the extent of discriminatory wage disparities 17 in the public and private sectors, the factors that cause 18 such disparities, the consequences of such disparities, and 19 actions likely to lead to the elimination and prevention of 20 such disparities. 21 The bill establishes the membership of the task force, 22 including ex officio, nonvoting legislative members. The 23 department of workforce development shall provide staffing 24 services for the task force. 25 The task force shall submit a report regarding its findings 26 and its recommendations regarding potential actions for the 27 elimination and prevention of discriminatory wage disparities 28 to the governor and the general assembly no later than December 29 16, 2022. 30 -6- LSB 1509XS (3) 89 je/rn 6/ 6
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