Bill Text: MN HF2373 | 2013-2014 | 88th Legislature | Engrossed
Bill Title: Equal pay certificate required as a condition for public contracts, data classified, report required, and money appropriated.
Spectrum: Partisan Bill (Democrat 10-0)
Status: (Introduced - Dead) 2014-03-31 - Committee report, to adopt as amended and re-refer to Ways and Means [HF2373 Detail]
Download: Minnesota-2013-HF2373-Engrossed.html
1.2relating to state government; requiring certificates of equal pay as a condition
1.3for certain public contracts; classifying data; requiring a report; appropriating
1.4money;amending Minnesota Statutes 2012, section 13.552, by adding a
1.5subdivision; proposing coding for new law in Minnesota Statutes, chapter 363A.
1.6BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.7 Section 1. Minnesota Statutes 2012, section 13.552, is amended by adding a
1.8subdivision to read:
1.9 Subd. 7. Equal pay certificate of compliance. Access to data relating to equal pay
1.10certificates of compliance is governed by section 363A.44.
1.11 Sec. 2. [363A.44] EQUAL PAY CERTIFICATE OF COMPLIANCE.
1.12 Subdivision 1. Equal pay certificate of compliance. No department or agency of
1.13the state may execute a contract in excess of $500,000 with a business that has 50 or more
1.14full-time employees in this state or a state where the business has its primary place of
1.15business on a single working day during the previous 12 months unless the business has
1.16an equal pay certificate of compliance. This section does not apply to a contract with the
1.17Department of Human Services for the primary purpose of providing health care services.
1.18The commissioner shall issue an equal pay certificate of compliance to a business that
1.19submits to the commissioner a statement that:
1.20(1) its compensation policies or practices are based on the principle of equal pay
1.21for equal work, and are in compliance with Title VII of the Civil Rights Act of 1964, the
1.22Equal Pay Act of 1963, the Minnesota Human Rights Act, and the Minnesota Equal
1.23Pay for Equal Work Law;
2.1(2) its wage schedules and other compensation formulas are not related to, or based
2.2on, the sex of its employees;
2.3(3) it does not restrict employees of one sex to certain job classifications and makes
2.4retention and promotion of qualified employees without regard to sex;
2.5(4) its contributions to insurance, pensions, and other benefit plans are not related
2.6to, or based on, the sex of its employees;
2.7(5) for the job classes expected to perform work under the contract, within each of
2.8the major job categories in the EEO-1 employee information report, the compensation for
2.9its female employees is not consistently below the compensation for its male employees,
2.10taking into account factors such as requirements of specific job classes within each major
2.11category, length of service, experience, and market conditions.
2.12 Subd. 2. Application; issuance; duration. A business applying for a certificate
2.13of compliance must pay a $150 fee to the commissioner. The commissioner must issue
2.14a business an equal pay certificate of compliance, or a statement of why the application
2.15was rejected, within 15 days of receipt of the application and the filing fee. An equal pay
2.16certificate of compliance is valid for four years. Proceeds of the filing fee are appropriated
2.17to the commissioner for purposes of this section.
2.18 Subd. 3. Conditions; audit. (a) As a condition of receiving an equal pay certificate
2.19of compliance, and as a condition of the contract that is subject to this section, a business
2.20must agree that:
2.21(1) the commissioner may audit the business' compliance with this section; and
2.22(2) the commissioner or the agency entering into the contract may void a contract if
2.23the commissioner determines that the business is not in compliance with items specified in
2.24subdivision 1, clauses (1) to (5).
2.25(b) As a condition of receiving an equal pay certificate of compliance, and as a
2.26condition of the contract that is subject to this section, a business must agree that as part of
2.27an audit, the business will provide the commissioner the following information with respect
2.28to employees in each of the major job categories in the EEO-1 employee information report:
2.29(1) number of male employees;
2.30(2) number of female employees;
2.31(3) salaries paid to male employees and to female employees within each major
2.32job category;
2.33(4) information on performance payments, benefits, or other elements of
2.34compensation, if requested by the commissioner as part of a determination as to whether
2.35these elements of compensation are different for male and female employees;
2.36(5) average length of service for male and female employees in each job category; and
3.1(6) other information identified by the business or by the commissioner, as needed,
3.2to determine compliance with items specified in subdivision 1, clauses (1) to (5).
3.3 Subd. 4. Compliance plan; revocation of certificate. If the commissioner
3.4determines that a business that has an equal pay certificate of compliance is not in
3.5compliance with subdivision 1, clauses (1) to (5), the commissioner may require the
3.6business to implement an equal pay certificate of compliance plan as a condition of
3.7retaining its certificate of compliance. The commissioner may suspend or revoke a
3.8certificate if the commissioner determines that the business is not in compliance with
3.9items specified in subdivision 1, clauses (1) to (5).
3.10 Subd. 5. Voiding of contract. Prior to taking action to void a contract, the
3.11commissioner must first demonstrate that no undue hardship would occur to the state and
3.12that obtaining wages and benefits due to employees of the business is an insufficient
3.13remedy. Multiple violations of the law or evidence of deliberate intent to discriminate by
3.14the certificate holder may be sufficient justification for the commissioner to void a contract.
3.15 Subd. 6. Administrative review. A business may obtain a hearing when the
3.16commissioner issues an order directing a contract voided or an equal pay certificate of
3.17compliance revoked by filing a written request for a hearing with the department within
3.1820 days after service of the notice of sanction. The hearing shall be a contested case
3.19proceeding pursuant to sections 14.57 to 14.69.
3.20 Subd. 7. Technical assistance. The commissioner must provide technical assistance
3.21to any business that requests assistance.
3.22 Subd. 8. Access to data. Data submitted to the commissioner by a contractor or
3.23potential contractor for purposes of obtaining a certificate of compliance under this section,
3.24or in response to an audit under this section, are private data on individuals or nonpublic
3.25data with respect to persons other than Department of Human Rights employees. The
3.26commissioner's decision to grant, not grant, revoke, or suspend a certificate of compliance
3.27is public data.
3.28EFFECTIVE DATE.This section is effective August 1, 2014, and applies to a
3.29contract for which a state department or agency issues a solicitation on or after that date.
3.30 Sec. 3. REPORT.
3.31The commissioner of human rights shall report to the governor and the chairs and
3.32ranking minority members of the committees in the senate and the house of representatives
3.33with primary jurisdiction over the department by January 31, 2016. The report shall
3.34indicate the number of equal pay certificates issued, the number of audits conducted, and a
4.1summary of its auditing efforts. The commissioner shall consult with the Office on the
4.2Economic Status of Women in preparing the report.
1.3for certain public contracts; classifying data; requiring a report; appropriating
1.4money;amending Minnesota Statutes 2012, section 13.552, by adding a
1.5subdivision; proposing coding for new law in Minnesota Statutes, chapter 363A.
1.6BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.7 Section 1. Minnesota Statutes 2012, section 13.552, is amended by adding a
1.8subdivision to read:
1.9 Subd. 7. Equal pay certificate of compliance. Access to data relating to equal pay
1.10certificates of compliance is governed by section 363A.44.
1.11 Sec. 2. [363A.44] EQUAL PAY CERTIFICATE OF COMPLIANCE.
1.12 Subdivision 1. Equal pay certificate of compliance. No department or agency of
1.13the state may execute a contract in excess of $500,000 with a business that has 50 or more
1.14full-time employees in this state or a state where the business has its primary place of
1.15business on a single working day during the previous 12 months unless the business has
1.16an equal pay certificate of compliance. This section does not apply to a contract with the
1.17Department of Human Services for the primary purpose of providing health care services.
1.18The commissioner shall issue an equal pay certificate of compliance to a business that
1.19submits to the commissioner a statement that:
1.20(1) its compensation policies or practices are based on the principle of equal pay
1.21for equal work, and are in compliance with Title VII of the Civil Rights Act of 1964, the
1.22Equal Pay Act of 1963, the Minnesota Human Rights Act, and the Minnesota Equal
1.23Pay for Equal Work Law;
2.1(2) its wage schedules and other compensation formulas are not related to, or based
2.2on, the sex of its employees;
2.3(3) it does not restrict employees of one sex to certain job classifications and makes
2.4retention and promotion of qualified employees without regard to sex;
2.5(4) its contributions to insurance, pensions, and other benefit plans are not related
2.6to, or based on, the sex of its employees;
2.7(5) for the job classes expected to perform work under the contract, within each of
2.8the major job categories in the EEO-1 employee information report, the compensation for
2.9its female employees is not consistently below the compensation for its male employees,
2.10taking into account factors such as requirements of specific job classes within each major
2.11category, length of service, experience, and market conditions.
2.12 Subd. 2. Application; issuance; duration. A business applying for a certificate
2.13of compliance must pay a $150 fee to the commissioner. The commissioner must issue
2.14a business an equal pay certificate of compliance, or a statement of why the application
2.15was rejected, within 15 days of receipt of the application and the filing fee. An equal pay
2.16certificate of compliance is valid for four years. Proceeds of the filing fee are appropriated
2.17to the commissioner for purposes of this section.
2.18 Subd. 3. Conditions; audit. (a) As a condition of receiving an equal pay certificate
2.19of compliance, and as a condition of the contract that is subject to this section, a business
2.20must agree that:
2.21(1) the commissioner may audit the business' compliance with this section; and
2.22(2) the commissioner or the agency entering into the contract may void a contract if
2.23the commissioner determines that the business is not in compliance with items specified in
2.24subdivision 1, clauses (1) to (5).
2.25(b) As a condition of receiving an equal pay certificate of compliance, and as a
2.26condition of the contract that is subject to this section, a business must agree that as part of
2.27an audit, the business will provide the commissioner the following information with respect
2.28to employees in each of the major job categories in the EEO-1 employee information report:
2.29(1) number of male employees;
2.30(2) number of female employees;
2.31(3) salaries paid to male employees and to female employees within each major
2.32job category;
2.33(4) information on performance payments, benefits, or other elements of
2.34compensation, if requested by the commissioner as part of a determination as to whether
2.35these elements of compensation are different for male and female employees;
2.36(5) average length of service for male and female employees in each job category; and
3.1(6) other information identified by the business or by the commissioner, as needed,
3.2to determine compliance with items specified in subdivision 1, clauses (1) to (5).
3.3 Subd. 4. Compliance plan; revocation of certificate. If the commissioner
3.4determines that a business that has an equal pay certificate of compliance is not in
3.5compliance with subdivision 1, clauses (1) to (5), the commissioner may require the
3.6business to implement an equal pay certificate of compliance plan as a condition of
3.7retaining its certificate of compliance. The commissioner may suspend or revoke a
3.8certificate if the commissioner determines that the business is not in compliance with
3.9items specified in subdivision 1, clauses (1) to (5).
3.10 Subd. 5. Voiding of contract. Prior to taking action to void a contract, the
3.11commissioner must first demonstrate that no undue hardship would occur to the state and
3.12that obtaining wages and benefits due to employees of the business is an insufficient
3.13remedy. Multiple violations of the law or evidence of deliberate intent to discriminate by
3.14the certificate holder may be sufficient justification for the commissioner to void a contract.
3.15 Subd. 6. Administrative review. A business may obtain a hearing when the
3.16commissioner issues an order directing a contract voided or an equal pay certificate of
3.17compliance revoked by filing a written request for a hearing with the department within
3.1820 days after service of the notice of sanction. The hearing shall be a contested case
3.19proceeding pursuant to sections 14.57 to 14.69.
3.20 Subd. 7. Technical assistance. The commissioner must provide technical assistance
3.21to any business that requests assistance.
3.22 Subd. 8. Access to data. Data submitted to the commissioner by a contractor or
3.23potential contractor for purposes of obtaining a certificate of compliance under this section,
3.24or in response to an audit under this section, are private data on individuals or nonpublic
3.25data with respect to persons other than Department of Human Rights employees. The
3.26commissioner's decision to grant, not grant, revoke, or suspend a certificate of compliance
3.27is public data.
3.28EFFECTIVE DATE.This section is effective August 1, 2014, and applies to a
3.29contract for which a state department or agency issues a solicitation on or after that date.
3.30 Sec. 3. REPORT.
3.31The commissioner of human rights shall report to the governor and the chairs and
3.32ranking minority members of the committees in the senate and the house of representatives
3.33with primary jurisdiction over the department by January 31, 2016. The report shall
3.34indicate the number of equal pay certificates issued, the number of audits conducted, and a
4.1summary of its auditing efforts. The commissioner shall consult with the Office on the
4.2Economic Status of Women in preparing the report.
