Senate File 255
SENATE FILE
BY DOTZLER, RAGAN, HATCH,
DVORSKY, CONNOLLY, GRONSTAL,
BOLKCOM, BLACK, SENG,
COURTNEY, WARNSTADT, STEWART,
HOLVECK, KREIMAN, DEARDEN,
and BEALL
(COMPANION TO LSB 2681HH BY
T. TAYLOR)
Passed Senate, Date Passed House, Date
Vote: Ayes Nays Vote: Ayes Nays
Approved
A BILL FOR
1 An Act relating to wage discrimination by providing for the
2 determination of wage discrimination, applicable remedies, and
3 providing an effective date.
4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
5 TLSB 2681SS 80
6 kh/cf/24
PAG LIN
1 1 Section 1. NEW SECTION. 91F.1 DEFINITIONS.
1 2 As used in this chapter, unless the context otherwise
1 3 provides:
1 4 1. "Employ" means to engage or permit to work.
1 5 2. "Employee" means a person employed by an employer and
1 6 includes all of an employer's year=round employees, whether
1 7 working full=time or part=time, and any temporary employee
1 8 employed by an employer for a period of at least three months.
1 9 "Employee" shall not include an individual employed by the
1 10 individual's parent, spouse, or child.
1 11 3. "Employer" means a person who employs three or more
1 12 persons and includes the state and all political subdivisions
1 13 of the state.
1 14 4. "Equivalent jobs" means jobs or occupations that are
1 15 equal within the meaning of the federal Equal Pay Act of 1963,
1 16 29 U.S.C. } 206(d), or jobs or occupations that are dissimilar
1 17 but whose requirements are equivalent, when viewed as a
1 18 composite of skills, effort, responsibility, and working
1 19 conditions, or jobs or occupations that are equally productive
1 20 and have equal value for an employer.
1 21 5. "Labor organization" means an organization that exists
1 22 for the purpose, in whole or in part, of collective bargaining
1 23 or of dealing with employers concerning grievances, terms of
1 24 conditions of employment, or of other mutual aid or protection
1 25 in connection with employment.
1 26 6. "Market rates" means the rates that employers within a
1 27 prescribed geographic area actually pay, or are reported to
1 28 pay, for specific jobs, as determined by formal or informal
1 29 surveys, wage studies, or other means.
1 30 7. "Wages" and "wage rates" include all compensation in
1 31 any form that an employer provides to employees in payment for
1 32 work done or services rendered, including but not limited to
1 33 base pay, bonuses, commissions, awards, tips, or various forms
1 34 of nonmonetary compensation if provided in lieu of or in
1 35 addition to monetary compensation and that have economic value
2 1 to an employee.
2 2 Sec. 2. NEW SECTION. 91F.2 WAGE DISCRIMINATION
2 3 PROHIBITION.
2 4 1. It shall be an unlawful employment practice in
2 5 violation of this chapter for an employer to discriminate
2 6 between employees on the basis of sex, race, or national
2 7 origin by doing any of the following:
2 8 a. Paying wages to employees at a rate less than the rate
2 9 paid to employees of the opposite sex or of a different race
2 10 or national origin for work in equivalent jobs.
2 11 b. Paying wages to employees in a job that is dominated by
2 12 employees of a particular sex, race, or national origin at a
2 13 rate less than the rate at which such employer pays to
2 14 employees in another job that is dominated by employees of the
2 15 opposite sex or of a different race or national origin, for
2 16 work on equivalent jobs.
2 17 2. An employer may pay different wage rates to employees
2 18 where such payments are made pursuant to any of the following:
2 19 a. A bona fide seniority or merit system.
2 20 b. A system that measures earnings by quantity or quality
2 21 of production.
2 22 c. A bona fide factor other than sex, race, or national
2 23 origin. However, wage differentials based on varying market
2 24 rates for equivalent jobs or based on the differing economic
2 25 benefits to the employer of equivalent jobs shall not be
2 26 considered to be based on a bona fide factor other than sex,
2 27 race, or national origin.
2 28 3. An employer who is paying wages in violation of this
2 29 section shall not, in order to comply with the provisions of
2 30 this section, reduce the wage of any employee.
2 31 4. A labor organization or its agents representing
2 32 employees of an employer having employees subject to any
2 33 provision of this chapter shall not cause or attempt to cause
2 34 such an employer to discriminate against an employee in
2 35 violation of subsection 1.
3 1 5. The labor commissioner shall adopt rules specifying the
3 2 criteria for determining whether a job is dominated by
3 3 employees of a particular sex, race, or national origin.
3 4 Criteria shall include, but not be limited to, factors such as
3 5 whether the job has ever been formally classified as or
3 6 traditionally considered to be a male or female or white or
3 7 minority job; whether a history of discrimination based on
3 8 sex, race, or national origin exists with regard to wages,
3 9 assignment, or access to jobs, or other terms and conditions
3 10 of employment; and the demographic composition of the
3 11 workforce in equivalent jobs. The rules shall not include a
3 12 list of jobs.
3 13 Sec. 3. NEW SECTION. 91F.3 OTHER PROHIBITED ACTS.
3 14 It shall be an unlawful employment practice in violation of
3 15 this chapter for an employer to do any of the following:
3 16 1. Take adverse actions or otherwise discriminate against
3 17 an individual because such individual has opposed any act or
3 18 practice made unlawful by this chapter; has sought to enforce
3 19 rights protected under this chapter; or has testified,
3 20 assisted, or participated in any manner in an investigation,
3 21 hearing, or other proceeding to enforce this chapter.
3 22 2. Discharge or in any other manner discriminate against,
3 23 coerce, intimidate, threaten, or interfere with an employee or
3 24 another person because the employee inquired about, disclosed,
3 25 compared, or otherwise discussed the employee's wages or the
3 26 wages of any other employee, or because the employee
3 27 exercised, enjoyed, aided, or encouraged another person to
3 28 exercise or enjoy any right granted or protected by this
3 29 chapter.
3 30 Sec. 4. NEW SECTION. 91F.4 WAGE DISCLOSURE,
3 31 RECORDKEEPING, AND REPORTING REQUIREMENTS.
3 32 1. Upon commencement of an individual's employment and at
3 33 least annually thereafter, the individual's employer subject
3 34 to this chapter shall provide to the employee a written
3 35 statement sufficient to inform the employee of the employee's
4 1 job title, wage rate, and how the wage is calculated. This
4 2 notice shall be supplemented whenever an employee is promoted
4 3 or reassigned to a different position with the employer.
4 4 However, the employer is not required to issue supplemental
4 5 notifications for temporary reassignments that are no greater
4 6 than three months in duration.
4 7 2. An employer subject to this chapter shall make and
4 8 preserve records that document the wages paid to employees and
4 9 that document and support the method, system, calculations,
4 10 and other bases used to establish, adjust, and determine the
4 11 wage rates paid to employees. An employer subject to this
4 12 chapter shall preserve the records for such periods of time
4 13 and shall make reports from the records as shall be prescribed
4 14 by rules or orders of the labor commissioner.
4 15 3. The rules adopted under this chapter, relating to the
4 16 form of reports required by subsection 2, shall provide for
4 17 protection of the confidentiality of employees, and shall
4 18 expressly require that reports shall not include the names or
4 19 other identifying information from which readers could discern
4 20 the identities of employees. The rules may also identify
4 21 circumstances that warrant a prohibition on disclosure of
4 22 reports or information identifying the employer.
4 23 4. The labor commissioner may use the information and data
4 24 collected pursuant to subsection 2 for statistical and
4 25 research purposes, and may compile and publish such studies,
4 26 analyses, reports, and surveys based on the information and
4 27 data, as appropriate.
4 28 Sec. 5. NEW SECTION. 91F.5 REMEDIES AND ENFORCEMENT.
4 29 1. a. In an action in which a court finds that an
4 30 employer has engaged in acts that violate this chapter, the
4 31 court shall award to an affected employee or employees
4 32 monetary relief, including back pay in an amount equal to the
4 33 difference between the employee's actual earnings and what the
4 34 employee would have earned but for the employer's unlawful
4 35 practices, and an additional amount in compensatory and
5 1 punitive damages, as appropriate.
5 2 b. In an action in which a court finds that an employer
5 3 has engaged in acts that violate this chapter, the court shall
5 4 enjoin the employer from continuing to discriminate against an
5 5 affected employee or employees and shall direct the employer
5 6 to comply with this chapter, and may order the employer to
5 7 take such additional affirmative steps as are necessary,
5 8 including reinstatement or reclassification of an affected
5 9 employee or employees, to ensure an end to unlawful
5 10 discrimination.
5 11 c. In an action in which an affected employee or employees
5 12 prevail in their claims against an employer, the court shall,
5 13 in addition to any judgment awarded to the plaintiffs, order
5 14 the employer to pay a reasonable attorney fee, reasonable
5 15 expert witness fees, and costs of the action.
5 16 2. a. An action to recover the damages or equitable
5 17 relief prescribed in subsection 1 may be maintained against an
5 18 employer in any court of competent jurisdiction by one or more
5 19 employees or their representative on their own behalf or on
5 20 their own behalf and on the behalf of other employees
5 21 similarly situated.
5 22 b. (1) The labor commissioner shall receive, investigate,
5 23 and attempt to resolve complaints of violations of this
5 24 chapter.
5 25 (2) If the labor commissioner is unable to reach a
5 26 voluntary resolution of a complaint, the labor commissioner
5 27 may bring an action in any court of competent jurisdiction to
5 28 recover the equitable and monetary relief described in
5 29 subsection 1.
5 30 (3) Any sums recovered by the labor commissioner pursuant
5 31 to this paragraph shall be paid directly to each employee
5 32 affected by the employer's unlawful acts.
5 33 c. An action may be brought under this section not later
5 34 than two years after the date of the last event constituting
5 35 the alleged violation for which the action is brought.
6 1 Sec. 6. EFFECTIVE DATE. This Act, being deemed of
6 2 immediate importance, takes effect upon enactment.
6 3 EXPLANATION
6 4 This bill creates a new Code chapter governing wage
6 5 discrimination.
6 6 The bill makes it unlawful for an employer to pay wages
6 7 that discriminate between employees based on sex, race, or
6 8 national origin unless the differences are due to a valid
6 9 factor unrelated to sex, race, or national origin. The bill
6 10 also makes it unlawful for an employer to take action against
6 11 a person exercising their rights pursuant to this new chapter.
6 12 The bill requires employers, on an annual basis, to provide
6 13 employees with information on how the employees' wage is
6 14 calculated. The bill also requires employers to maintain
6 15 records concerning wages paid to employees.
6 16 The bill permits an affected employee to maintain an action
6 17 against an employer who violates this chapter and to obtain
6 18 damages, seek an injunction, and be awarded witness and
6 19 attorney fees and costs. The bill also permits employees to
6 20 maintain an action on behalf of other employees. In addition,
6 21 the labor commissioner is granted the authority to resolve
6 22 complaints arising out of this chapter and to maintain a civil
6 23 action for monetary and equitable relief on behalf of
6 24 employees.
6 25 The bill takes effect upon enactment.
6 26 LSB 2681SS 80
6 27 kh/cf/24.1