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 12a.(1) Payment of wages is made pursuant to a seniority 2 13 system. 2 14b.(2) Payment of wages is made pursuant to a merit system. 2 15c.(3) Payment of wages is made pursuant to a system which 2 16 measures earnings by quantity or quality of production. 2 17d.(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