Bill Text: IA SF2193 | 2015-2016 | 86th 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. (Formerly SSB 3071.)

Spectrum: Committee Bill

Status: (Introduced - Dead) 2016-03-10 - Referred to Labor and Business Relations. S.J. 471. [SF2193 Detail]

Download: Iowa-2015-SF2193-Introduced.html
Senate File 2193 - Introduced




                                 SENATE FILE       
                                 BY  COMMITTEE ON LABOR AND
                                     BUSINESS RELATIONS

                                 (SUCCESSOR TO SSB
                                     3071)

                                      A BILL FOR

  1 An Act relating to wage discrimination under the Iowa civil
  2    rights Act of 1965, making penalties applicable, and
  3    establishing an equal pay task force.
  4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
    TLSB 5384SV (1) 86
    je/rj

PAG LIN



  1  1    Section 1.  Section 216.6A, Code 2016, is amended by adding
  1  2 the following new subsection:
  1  3    NEW SUBSECTION.  2A.  It shall be an unfair or discriminatory
  1  4 practice for any employer or agent of any employer to do any of
  1  5 the following:
  1  6    a.  Require, as a condition of employment, that an employee
  1  7 refrain from disclosing, discussing, or sharing information
  1  8 about the amount of the employee's wages, benefits, or other
  1  9 compensation or from inquiring, discussing, or sharing
  1 10 information about any other employee's wages, benefits, or
  1 11 other compensation.
  1 12    b.  Require, as a condition of employment, that an employee
  1 13 sign a waiver or other document that requires an employee to
  1 14 refrain from engaging in any of the activities permitted under
  1 15 paragraph "a".
  1 16    c.  Discriminate or retaliate against an employee for
  1 17 engaging in any of the activities permitted under paragraph "a".
  1 18    d.  Seek salary history information, including but not
  1 19 limited to information on compensation and benefits, from
  1 20 a potential employee as a condition of a job interview or
  1 21 employment. This paragraph shall not be construed to prohibit
  1 22 a prospective employer from asking a prospective employee what
  1 23 salary level the prospective employee would require in order to
  1 24 accept a job.
  1 25    e.  Release the salary history, including but not limited
  1 26 to information on compensation and benefits, of any current
  1 27 or former employee to any prospective employer in response to
  1 28 a request as part of an interview or hiring process without
  1 29 written authorization from such current or former employee.
  1 30    f.  Publish, list, or post within the employer's
  1 31 organization, with any employment agency, job=listing
  1 32 service, or internet site, or in any other public manner, an
  1 33 advertisement to recruit candidates for hire or independent
  1 34 contractors to fill a position within the employer's
  1 35 organization without including the minimum rate of pay of the
  2  1 position. The rate of pay may be by the hour, shift, day, week,
  2  2 salary, piece, commission, or other applicable rate. The rate
  2  3 of pay shall include overtime and allowances, if any, claimed
  2  4 as part of the minimum wage, including but not limited to
  2  5 tipped wages.
  2  6    g.  Pay a newly hired employee at less than the rate of pay
  2  7 advertised for the employee's position under paragraph "f".
  2  8    Sec. 2.  Section 216.6A, subsection 3, Code 2016, is amended
  2  9 to read as follows:
  2 10    3.  a.  It shall be an affirmative defense to a claim arising
  2 11 under this section if any of the following applies:
  2 12    a.  (1)  Payment of wages is made pursuant to a seniority
  2 13 system.
  2 14    b.  (2)  Payment of wages is made pursuant to a merit system.
  2 15    c.  (3)  Payment of wages is made pursuant to a system which
  2 16 measures earnings by quantity or quality of production.
  2 17    d.  (4)  Pay differential is based on any other bona fide
  2 18  factor other than the age, race, creed, color, sex, sexual
  2 19 orientation, gender identity, national origin, religion,
  2 20 or disability of such employee, including but not limited
  2 21 to a bona fide factor relating to education, training, or
  2 22 experience.  This defense shall apply only if the employer
  2 23 demonstrates that the factor is not based on or derived from
  2 24 a differential in compensation based on age, race, creed,
  2 25 color, sex, sexual orientation, gender identity, national
  2 26 origin, religion, or disability; is job related with respect
  2 27 to the position in question; and is consistent with a business
  2 28 necessity. For purposes of this subparagraph, "business
  2 29 necessity" means an overriding legitimate business purpose
  2 30 such that the factor relied upon effectively fulfills the
  2 31 business purpose it is supposed to serve. This affirmative
  2 32 defense shall not apply if the employee demonstrates that an
  2 33 alternative business practice exists that would serve the same
  2 34 business purpose without producing the wage differential.
  2 35    b.  An affirmative defense under this subsection is not
  3  1 applicable unless one or more of the defenses listed in
  3  2 paragraph "a" account for the entire pay differential that is
  3  3 the subject of the claim.
  3  4    Sec. 3.  EQUAL PAY TASK FORCE AND REPORT.
  3  5    1.  An equal pay task force is created. The task force shall
  3  6 consist of the following members:
  3  7    a.  The director of the civil rights commission, or the
  3  8 director's designee.
  3  9    b.  The director of the department of human rights, or the
  3 10 director's designee.
  3 11    c.  An employee of the labor market information division
  3 12 of the department of workforce development designated by the
  3 13 director of the department.
  3 14    d.  A representative of the association of business and
  3 15 industry, appointed by the president of the association.
  3 16    e.  A member of a statewide labor organization appointed by
  3 17 the president of the organization.
  3 18    f.  Two representatives of organizations whose objectives
  3 19 include the elimination of pay disparities between men and
  3 20 women and minorities and nonminorities and that have undertaken
  3 21 advocacy, educational, or legislative initiatives in pursuit
  3 22 of such objectives appointed by the director of the civil
  3 23 rights commission in consultation with the leadership of those
  3 24 organizations.
  3 25    g.  Two representatives of postsecondary education
  3 26 institutions who have experience and expertise in the
  3 27 collection and analysis of data concerning pay disparities
  3 28 between men and women and minorities and nonminorities
  3 29 and whose research has been used in efforts to promote the
  3 30 elimination of such disparities appointed by the director of
  3 31 the civil rights commission in consultation with the leadership
  3 32 of those institutions.
  3 33    h.  Four members of the general assembly serving as
  3 34 ex officio, nonvoting members, one representative to be
  3 35 appointed by the speaker of the house of representatives, one
  4  1 representative to be appointed by the minority leader of the
  4  2 house of representatives, one senator to be appointed by the
  4  3 majority leader of the senate, and one senator to be appointed
  4  4 by the minority leader of the senate.
  4  5    2.  The task force shall study all of the following:
  4  6    a.  The extent of wage disparities, both in the public and
  4  7 private sectors, between men and women and between minorities
  4  8 and nonminorities.
  4  9    b.  Factors that cause, or which tend to cause, such
  4 10 disparities, including segregation between women and
  4 11 men and between minorities and nonminorities across and
  4 12 within occupations, payment of lower wages for work in
  4 13 female=dominated occupations, child=rearing responsibilities,
  4 14 the number of women who are heads of households, education,
  4 15 hours worked, and years on the job.
  4 16    c.  The consequences of such disparities on the economy and
  4 17 affected families.
  4 18    d.  Actions likely to lead to the elimination and prevention
  4 19 of such disparities.
  4 20    3.  The civil rights commission shall provide staffing
  4 21 services for the task force.
  4 22    4.  The voting members shall elect a chairperson from the
  4 23 voting membership of the task force. A majority of the voting
  4 24 members of the task force constitutes a quorum.
  4 25    5.  Voting members of the task force shall receive
  4 26 reimbursement for actual expenses incurred while serving
  4 27 in their official capacity only if they are not eligible
  4 28 for reimbursement by the organization that they represent.
  4 29 Legislative members shall be paid the per diem and expenses
  4 30 specified in section 2.10.
  4 31    6.  The task force shall submit a report regarding its
  4 32 findings and its recommendations regarding potential actions
  4 33 for the elimination and prevention of disparities in wages
  4 34 between men and women and minorities and nonminorities to the
  4 35 governor and the general assembly no later than December 22,
  5  1 2017.
  5  2                           EXPLANATION
  5  3 The inclusion of this explanation does not constitute agreement with
  5  4 the explanation's substance by the members of the general assembly.
  5  5    This bill relates to wage discrimination under Iowa Code
  5  6 chapter 216, the Iowa civil rights Act of 1965, and establishes
  5  7 an equal pay task force.
  5  8    WAGE DISCRIMINATION IN EMPLOYMENT.  The bill establishes
  5  9 additional unfair or discriminatory practices relating to wages
  5 10 under Code section 216.6A.  Penalty and remedial provisions
  5 11 for discriminatory employment practices, including penalties
  5 12 specific to wage discrimination, are applicable under Code
  5 13 chapter 216 to violations of these requirements.
  5 14    The bill prohibits an employer from requiring that an
  5 15 employee refrain from disclosing, discussing, or sharing
  5 16 information about the amount of the employee's wages, benefits,
  5 17 or other compensation or from inquiring, discussing, or sharing
  5 18 information about any other employee's wages, benefits, or
  5 19 other compensation as a condition of employment. The bill
  5 20 prohibits an employer from requiring that an employee sign a
  5 21 waiver or other document that requires an employee to refrain
  5 22 from engaging in any of those activities as a condition of
  5 23 employment. The bill prohibits an employer from discriminating
  5 24 or retaliating against an employee for engaging in any of the
  5 25 activities.
  5 26    The bill prohibits an employer from seeking salary history
  5 27 information from a potential employee as a condition of a job
  5 28 interview or employment. This provision shall not be construed
  5 29 to prohibit a prospective employer from asking a prospective
  5 30 employee what salary level the prospective employee would
  5 31 require in order to accept a job.
  5 32    The bill prohibits an employer from releasing the salary
  5 33 history of any current or former employee to any prospective
  5 34 employer in response to a request as part of an interview or
  5 35 hiring process without written authorization from such current
  6  1 or former employee.
  6  2    The bill prohibits an employer from publishing, listing, or
  6  3 posting within the employer's organization, with any employment
  6  4 agency, job=listing service, or internet site, or in any other
  6  5 public manner, an advertisement to recruit candidates for
  6  6 hire or independent contractors to fill a position within the
  6  7 employer's organization without including the minimum rate of
  6  8 pay of the position. The rate of pay shall include overtime
  6  9 and allowances, if any, claimed as part of the minimum wage,
  6 10 including but not limited to tipped wages. The bill prohibits
  6 11 an employer from paying a newly hired employee at less than the
  6 12 rate of pay advertised for the employee's position.
  6 13    Under current law, an employer has an affirmative defense
  6 14 to a claim under Code section 216.6A if a pay differential
  6 15 is based on any other factor other than prohibited wage
  6 16 discrimination. The bill provides that an employer has an
  6 17 affirmative defense to a claim under Code section 216.6A if a
  6 18 pay differential is based on any other bona fide factor other
  6 19 than prohibited discrimination, including but not limited
  6 20 to a bona fide factor relating to education, training, or
  6 21 experience. However, this defense shall only apply if the
  6 22 employer demonstrates that the factor is not based on or
  6 23 derived from prohibited wage discrimination, is job related
  6 24 with respect to the position in question, and is consistent
  6 25 with a business necessity. The bill defines "business
  6 26 necessity" as an overriding legitimate business purpose
  6 27 such that the factor relied upon effectively fulfills the
  6 28 business purpose it is supposed to serve. This affirmative
  6 29 defense shall not apply if the employee demonstrates that an
  6 30 alternative business practice exists that would serve the same
  6 31 business purpose without producing the wage differential.
  6 32    The bill provides that affirmative defenses to a claim under
  6 33 Code section 216.6A are not applicable unless one or more of
  6 34 the defenses account for the entire pay differential that is
  6 35 the subject of the claim.
  7  1 EQUAL PAY TASK FORCE.  The bill creates an equal pay task
  7  2 force to study the extent of discriminatory wage disparities
  7  3 in the public and private sectors, the factors that cause
  7  4 such disparities, the consequences of such disparities, and
  7  5 actions likely to lead to the elimination and prevention of
  7  6 such disparities.
  7  7    The bill establishes the membership of the task force,
  7  8 including ex officio, nonvoting legislative members. The civil
  7  9 rights commission shall provide staffing services for the task
  7 10 force.
  7 11    The task force shall submit a report regarding its findings
  7 12 and its recommendations regarding potential actions for the
  7 13 elimination and prevention of discriminatory wage disparities
  7 14 to the governor and the general assembly no later than December
  7 15 22, 2017.
       LSB 5384SV (1) 86
       je/rj
feedback