SF 340 (LSB 2072XS (3) 87)

SENATE FILE 340

BY  BOULTON, QUIRMBACH, HORN, TAYLOR, DVORSKY, DOTZLER, BOWMAN, LYKAM, JOCHUM, HOGG, RAGAN, BOLKCOM, and PETERSEN

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.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  Section 216.6A, Code 2017, is amended by adding the following new subsection:
   NEW SUBSECTION.  2A.  It shall be an unfair or discriminatory practice for any employer or agent of any employer to do any of the following:
   a.  Require, as a condition of employment, that an employee refrain from disclosing, discussing, or sharing information about the amount of the employee’s wages, benefits, or other compensation or from inquiring, discussing, or sharing information about any other employee’s wages, benefits, or other compensation.
   b.  Require, as a condition of employment, that an employee sign a waiver or other document that requires an employee to refrain from engaging in any of the activities permitted under paragraph “a”.
   c.  Discriminate or retaliate against an employee for engaging in any of the activities permitted under paragraph “a”.
   d.  Seek salary history information, including but not limited to information on compensation and benefits, from a potential employee as a condition of a job interview or employment. This paragraph shall not be construed to prohibit a prospective employer from asking a prospective employee what salary level the prospective employee would require in order to accept a job.
   e.  Release the salary history, including but not limited to information on compensation and benefits, of any current or former employee to any prospective employer in response to a request as part of an interview or hiring process without written authorization from such current or former employee.
   f.  Publish, list, or post within the employer’s organization, with any employment agency, job-listing service, or internet site, or in any other public manner, an advertisement to recruit candidates for hire or independent contractors to fill a position within the employer’s organization without including the minimum rate of pay of the position. The rate of pay may be by the hour, shift, day, week, salary, piece, commission, or other applicable rate. The rate of pay shall include overtime and allowances, if any, claimed as part of the minimum wage, including but not limited to tipped wages.
   g.  Pay a newly hired employee at less than the rate of pay advertised for the employee’s position under paragraph “f”.
    Sec. 2.  Section 216.6A, subsection 3, Code 2017, is amended to read as follows:
   3.  a.  It shall be an affirmative defense to a claim arising under this section if any of the following applies:
   a.  (1)  Payment of wages is made pursuant to a seniority system.
   b.  (2)  Payment of wages is made pursuant to a merit system.
   c.  (3)  Payment of wages is made pursuant to a system which measures earnings by quantity or quality of production.
   d.  (4)  Pay differential is based on any other factor other than the age, race, creed, color, sex, sexual orientation, gender identity, national origin, religion, or disability of such employee, including but not limited to a bona fide factor relating to education, training, or experience.  This affirmative defense shall apply only if the employer demonstrates that the factor is not based on or derived from a differential in compensation based on age, race, creed, color, sex, sexual orientation, gender identity, national origin, religion, or disability; is job related with respect to the position in question; and is consistent with a business necessity. For purposes of this subparagraph, “business necessity” means an overriding legitimate business purpose such that the factor relied upon effectively fulfills the business purpose it is supposed to serve. This affirmative defense shall not apply if the employee demonstrates that an alternative business practice exists that would serve the same business purpose without producing the wage differential.
   b.  An affirmative defense under this subsection is not applicable unless one or more of the affirmative defenses listed in paragraph “a” account for the entire pay differential that is the subject of the claim.
    Sec. 3.  EQUAL PAY TASK FORCE AND REPORT.
   1.  An equal pay task force is created. The task force shall consist of the following members:
   a.  The director of the civil rights commission, or the director’s designee.
   b.  The director of the department of human rights, or the director’s designee.
   c.  The director of the department of workforce development, or the director’s designee.
   d.  An employee of the labor market information division of the department of workforce development designated by the director of the department.
   e.  A representative of the association of business and industry, appointed by the president of the association.
   f.  A member of a statewide labor organization appointed by the president of the organization.
   g.  Two representatives of organizations whose objectives include the elimination of pay disparities between men and women and minorities and nonminorities and that have undertaken advocacy, educational, or legislative initiatives in pursuit of such objectives appointed by the director of the civil rights commission in consultation with the leadership of those organizations.
   h.  Two representatives of postsecondary education institutions who have experience and expertise in the collection and analysis of data concerning pay disparities between men and women and minorities and nonminorities and whose research has been used in efforts to promote the elimination of such disparities appointed by the director of the civil rights commission in consultation with the leadership of those institutions.
   i.  Four members of the general assembly serving as ex officio, nonvoting members, one representative to be appointed by the speaker of the house of representatives, one representative to be appointed by the minority leader of the house of representatives, one senator to be appointed by the majority leader of the senate, and one senator to be appointed by the minority leader of the senate.
   2.  Membership of the task force specified in subsection 1, paragraphs “d” through “h”, shall comply with section 69.16A.
   3.  The task force shall study all of the following:
   a.  The extent of wage disparities, both in the public and private sectors, between men and women and between minorities and nonminorities.
   b.  Factors that cause, or which tend to cause, such disparities, including segregation between women and men and between minorities and nonminorities across and within occupations, payment of lower wages for work in female-dominated occupations, child-rearing responsibilities, the number of women who are heads of households, education, hours worked, and years on the job.
   c.  The consequences of such disparities on the economy and affected families.
   d.  Actions likely to lead to the elimination and prevention of such disparities.
   4.  The department of workforce development shall provide staffing services for the task force.
   5.  The voting members shall elect a chairperson from the voting membership of the task force. A majority of the voting members of the task force constitutes a quorum.
   6.  Voting members of the task force shall receive reimbursement for actual expenses incurred while serving in their official capacity only if they are not eligible for reimbursement by the organization that they represent. Legislative members shall be paid the per diem and expenses specified in section 2.10.
   7.  The task force shall submit a report regarding its findings and its recommendations regarding potential actions for the elimination and prevention of disparities in wages between men and women and minorities and nonminorities to the governor and the general assembly no later than December 21, 2018.
EXPLANATION
The inclusion of this explanation does not constitute agreement with
the explanation’s substance by the members of the general assembly.
   This bill relates to wage discrimination under Iowa Code chapter 216, the Iowa civil rights Act of 1965, and establishes an equal pay task force.
   WAGE DISCRIMINATION IN EMPLOYMENT. The bill establishes additional unfair or discriminatory practices relating to wages under Code section 216.6A. Penalty and remedial provisions for discriminatory employment practices, including penalties specific to wage discrimination, are applicable under Code chapter 216 to violations of these requirements.
   The bill prohibits an employer from requiring that an employee refrain from disclosing, discussing, or sharing information about the amount of the employee’s wages, benefits, or other compensation or from inquiring, discussing, or sharing information about any other employee’s wages, benefits, or other compensation as a condition of employment. The bill prohibits an employer from requiring that an employee sign a waiver or other document that requires an employee to refrain from engaging in any of those activities as a condition of employment. The bill prohibits an employer from discriminating or retaliating against an employee for engaging in any of the activities.
   The bill prohibits an employer from seeking salary history information from a potential employee as a condition of a job interview or employment. This provision shall not be construed to prohibit a prospective employer from asking a prospective employee what salary level the prospective employee would require in order to accept a job.
   The bill prohibits an employer from releasing the salary history of any current or former employee to any prospective employer in response to a request as part of an interview or hiring process without written authorization from such current or former employee.
   The bill prohibits an employer from publishing, listing, or posting within the employer’s organization, with any employment agency, job-listing service, or internet site, or in any other public manner, an advertisement to recruit candidates for hire or independent contractors to fill a position within the employer’s organization without including the minimum rate of pay of the position. The rate of pay shall include overtime and allowances, if any, claimed as part of the minimum wage, including but not limited to tipped wages. The bill prohibits an employer from paying a newly hired employee at less than the rate of pay advertised for the employee’s position.
   Under current law, an employer has an affirmative defense to a claim under Code section 216.6A if a pay differential is based on any other factor other than prohibited wage discrimination. The bill provides that an employer has an affirmative defense to a claim under Code section 216.6A if a pay differential is based on any other bona fide factor other than prohibited discrimination, including but not limited to a bona fide factor relating to education, training, or experience. However, this defense shall only apply if the employer demonstrates that the factor is not based on or derived from prohibited wage discrimination, is job related with respect to the position in question, and is consistent with a business necessity. The bill defines “business necessity” as an overriding legitimate business purpose such that the factor relied upon effectively fulfills the business purpose it is supposed to serve. This affirmative defense shall not apply if the employee demonstrates that an alternative business practice exists that would serve the same business purpose without producing the wage differential.
   The bill provides that affirmative defenses to a claim under Code section 216.6A are not applicable unless one or more of the defenses account for the entire pay differential that is the subject of the claim.
   EQUAL PAY TASK FORCE. The bill creates an equal pay task force to study the extent of discriminatory wage disparities in the public and private sectors, the factors that cause such disparities, the consequences of such disparities, and actions likely to lead to the elimination and prevention of such disparities.
   The bill establishes the membership of the task force, including ex officio, nonvoting legislative members. The department of workforce development shall provide staffing services for the task force.
   The task force shall submit a report regarding its findings and its recommendations regarding potential actions for the elimination and prevention of discriminatory wage disparities to the governor and the general assembly no later than December 21, 2018.