S.F. 340 Section 1. Section 216.6A, Code 2017, 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 f. Publish, list, or post within the employer’s 30 organization, with any employment agency, job-listing 31 service, or internet site, or in any other public manner, an 32 advertisement to recruit candidates for hire or independent 33 contractors to fill a position within the employer’s 34 organization without including the minimum rate of pay of the 35 -1- LSB 2072XS (3) 87 je/rj 1/ 7

S.F. 340 position. The rate of pay may be by the hour, shift, day, week, 1 salary, piece, commission, or other applicable rate. The rate 2 of pay shall include overtime and allowances, if any, claimed 3 as part of the minimum wage, including but not limited to 4 tipped wages. 5 g. Pay a newly hired employee at less than the rate of pay 6 advertised for the employee’s position under paragraph “f” . 7 Sec. 2. Section 216.6A, subsection 3, Code 2017, is amended 8 to read as follows: 9 3. a. It shall be an affirmative defense to a claim arising 10 under this section if any of the following applies: 11 a. (1) Payment of wages is made pursuant to a seniority 12 system. 13 b. (2) Payment of wages is made pursuant to a merit system. 14 c. (3) Payment of wages is made pursuant to a system which 15 measures earnings by quantity or quality of production. 16 d. (4) Pay differential is based on any other factor other 17 than the age, race, creed, color, sex, sexual orientation, 18 gender identity, national origin, religion, or disability 19 of such employee , including but not limited to a bona fide 20 factor relating to education, training, or experience . 21 This affirmative defense shall apply only if the employer 22 demonstrates that the factor is not based on or derived from 23 a differential in compensation based on age, race, creed, 24 color, sex, sexual orientation, gender identity, national 25 origin, religion, or disability; is job related with respect 26 to the position in question; and is consistent with a business 27 necessity. For purposes of this subparagraph, “business 28 necessity” means an overriding legitimate business purpose 29 such that the factor relied upon effectively fulfills the 30 business purpose it is supposed to serve. This affirmative 31 defense shall not apply if the employee demonstrates that an 32 alternative business practice exists that would serve the same 33 business purpose without producing the wage differential. 34 b. An affirmative defense under this subsection is not 35 -2- LSB 2072XS (3) 87 je/rj 2/ 7

S.F. 340 applicable unless one or more of the affirmative defenses 1 listed in paragraph “a” account for the entire pay differential 2 that is the subject of the claim. 3 Sec. 3. EQUAL PAY TASK FORCE AND REPORT. 4 1. An equal pay task force is created. The task force shall 5 consist of the following members: 6 a. The director of the civil rights commission, or the 7 director’s designee. 8 b. The director of the department of human rights, or the 9 director’s designee. 10 c. The director of the department of workforce development, 11 or the director’s designee. 12 d. An employee of the labor market information division 13 of the department of workforce development designated by the 14 director of the department. 15 e. A representative of the association of business and 16 industry, appointed by the president of the association. 17 f. A member of a statewide labor organization appointed by 18 the president of the organization. 19 g. Two representatives of organizations whose objectives 20 include the elimination of pay disparities between men and 21 women and minorities and nonminorities and that have undertaken 22 advocacy, educational, or legislative initiatives in pursuit 23 of such objectives appointed by the director of the civil 24 rights commission in consultation with the leadership of those 25 organizations. 26 h. Two representatives of postsecondary education 27 institutions who have experience and expertise in the 28 collection and analysis of data concerning pay disparities 29 between men and women and minorities and nonminorities 30 and whose research has been used in efforts to promote the 31 elimination of such disparities appointed by the director of 32 the civil rights commission in consultation with the leadership 33 of those institutions. 34 i. Four members of the general assembly serving as 35 -3- LSB 2072XS (3) 87 je/rj 3/ 7

S.F. 340 ex officio, nonvoting members, one representative to be 1 appointed by the speaker of the house of representatives, one 2 representative to be appointed by the minority leader of the 3 house of representatives, one senator to be appointed by the 4 majority leader of the senate, and one senator to be appointed 5 by the minority leader of the senate. 6 2. Membership of the task force specified in subsection 1, 7 paragraphs “d” through “h”, shall comply with section 69.16A. 8 3. The task force shall study all of the following: 9 a. The extent of wage disparities, both in the public and 10 private sectors, between men and women and between minorities 11 and nonminorities. 12 b. Factors that cause, or which tend to cause, such 13 disparities, including segregation between women and 14 men and between minorities and nonminorities across and 15 within occupations, payment of lower wages for work in 16 female-dominated occupations, child-rearing responsibilities, 17 the number of women who are heads of households, education, 18 hours worked, and years on the job. 19 c. The consequences of such disparities on the economy and 20 affected families. 21 d. Actions likely to lead to the elimination and prevention 22 of such disparities. 23 4. The department of workforce development shall provide 24 staffing services for the task force. 25 5. The voting members shall elect a chairperson from the 26 voting membership of the task force. A majority of the voting 27 members of the task force constitutes a quorum. 28 6. Voting members of the task force shall receive 29 reimbursement for actual expenses incurred while serving 30 in their official capacity only if they are not eligible 31 for reimbursement by the organization that they represent. 32 Legislative members shall be paid the per diem and expenses 33 specified in section 2.10. 34 7. The task force shall submit a report regarding its 35 -4- LSB 2072XS (3) 87 je/rj 4/ 7

S.F. 340 findings and its recommendations regarding potential actions 1 for the elimination and prevention of disparities in wages 2 between men and women and minorities and nonminorities to the 3 governor and the general assembly no later than December 21, 4 2018. 5 EXPLANATION 6 The inclusion of this explanation does not constitute agreement with 7 the explanation’s substance by the members of the general assembly. 8 This bill relates to wage discrimination under Iowa Code 9 chapter 216, the Iowa civil rights Act of 1965, and establishes 10 an equal pay task force. 11 WAGE DISCRIMINATION IN EMPLOYMENT. The bill establishes 12 additional unfair or discriminatory practices relating to wages 13 under Code section 216.6A. Penalty and remedial provisions 14 for discriminatory employment practices, including penalties 15 specific to wage discrimination, are applicable under Code 16 chapter 216 to violations of these requirements. 17 The bill prohibits an employer from requiring that an 18 employee refrain from disclosing, discussing, or sharing 19 information about the amount of the employee’s wages, benefits, 20 or other compensation or from inquiring, discussing, or sharing 21 information about any other employee’s wages, benefits, or 22 other compensation as a condition of employment. The bill 23 prohibits an employer from requiring that an employee sign a 24 waiver or other document that requires an employee to refrain 25 from engaging in any of those activities as a condition of 26 employment. The bill prohibits an employer from discriminating 27 or retaliating against an employee for engaging in any of the 28 activities. 29 The bill prohibits an employer from seeking salary history 30 information from a potential employee as a condition of a job 31 interview or employment. This provision shall not be construed 32 to prohibit a prospective employer from asking a prospective 33 employee what salary level the prospective employee would 34 require in order to accept a job. 35 -5- LSB 2072XS (3) 87 je/rj 5/ 7

S.F. 340 The bill prohibits an employer from releasing the salary 1 history of any current or former employee to any prospective 2 employer in response to a request as part of an interview or 3 hiring process without written authorization from such current 4 or former employee. 5 The bill prohibits an employer from publishing, listing, or 6 posting within the employer’s organization, with any employment 7 agency, job-listing service, or internet site, or in any other 8 public manner, an advertisement to recruit candidates for 9 hire or independent contractors to fill a position within the 10 employer’s organization without including the minimum rate of 11 pay of the position. The rate of pay shall include overtime 12 and allowances, if any, claimed as part of the minimum wage, 13 including but not limited to tipped wages. The bill prohibits 14 an employer from paying a newly hired employee at less than the 15 rate of pay advertised for the employee’s position. 16 Under current law, an employer has an affirmative defense 17 to a claim under Code section 216.6A if a pay differential 18 is based on any other factor other than prohibited wage 19 discrimination. The bill provides that an employer has an 20 affirmative defense to a claim under Code section 216.6A if a 21 pay differential is based on any other bona fide factor other 22 than prohibited discrimination, including but not limited 23 to a bona fide factor relating to education, training, or 24 experience. However, this defense shall only apply if the 25 employer demonstrates that the factor is not based on or 26 derived from prohibited wage discrimination, is job related 27 with respect to the position in question, and is consistent 28 with a business necessity. The bill defines “business 29 necessity” as an overriding legitimate business purpose 30 such that the factor relied upon effectively fulfills the 31 business purpose it is supposed to serve. This affirmative 32 defense shall not apply if the employee demonstrates that an 33 alternative business practice exists that would serve the same 34 business purpose without producing the wage differential. 35 -6- LSB 2072XS (3) 87 je/rj 6/ 7

S.F. 340 The bill provides that affirmative defenses to a claim under 1 Code section 216.6A are not applicable unless one or more of 2 the defenses account for the entire pay differential that is 3 the subject of the claim. 4 EQUAL PAY TASK FORCE. The bill creates an equal pay task 5 force to study the extent of discriminatory wage disparities 6 in the public and private sectors, the factors that cause 7 such disparities, the consequences of such disparities, and 8 actions likely to lead to the elimination and prevention of 9 such disparities. 10 The bill establishes the membership of the task force, 11 including ex officio, nonvoting legislative members. The 12 department of workforce development shall provide staffing 13 services for the task force. 14 The task force shall submit a report regarding its findings 15 and its recommendations regarding potential actions for the 16 elimination and prevention of discriminatory wage disparities 17 to the governor and the general assembly no later than December 18 21, 2018. 19 -7- LSB 2072XS (3) 87 je/rj 7/ 7