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Senate File 396 - IntroducedA Bill ForAn Act 1relating to wage discrimination under the Iowa civil
2rights Act of 1965, making penalties applicable, and
3establishing an equal pay task force.
4BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1 Section 1. Section 216.6A, Code 2023, is amended by adding
2the following new subsection:
3 NEW SUBSECTION. 2A. It shall be an unfair or discriminatory
4practice for any employer or agent of any employer to do any of
5the following:
6a. Require, as a condition of employment, that an employee
7refrain from disclosing, discussing, or sharing information
8about the amount of the employee’s wages, benefits, or other
9compensation or from inquiring, discussing, or sharing
10information about any other employee’s wages, benefits, or
11other compensation.
12b. Require, as a condition of employment, that an employee
13sign a waiver or other document that requires an employee to
14refrain from engaging in any of the activities permitted under
15paragraph “a”.
16c. Discriminate or retaliate against an employee for
17engaging in any of the activities permitted under paragraph “a”.
18d. Seek salary history information, including but not
19limited to information on compensation and benefits, from
20a potential employee as a condition of a job interview or
21employment. This paragraph shall not be construed to prohibit
22a prospective employer from asking a prospective employee what
23salary level the prospective employee would require in order to
24accept a job.
25e. Release the salary history, including but not limited
26to information on compensation and benefits, of any current
27or former employee to any prospective employer in response to
28a request as part of an interview or hiring process without
29written authorization from such current or former employee.
30f. Publish, list, or post within the employer’s
31organization, with any employment agency, job-listing
32service, or internet site, or in any other public manner, an
33advertisement to recruit candidates for hire or independent
34contractors to fill a position within the employer’s
35organization without including the minimum rate of pay of the
-1-1position. The rate of pay may be by the hour, shift, day, week,
2salary, piece, commission, or other applicable rate. The rate
3of pay shall include overtime and allowances, if any, claimed
4as part of the minimum wage, including but not limited to
5tipped wages.
6g. Pay a newly hired employee at less than the rate of pay
7advertised for the employee’s position under paragraph “f”.
8 Sec. 2. Section 216.6A, subsection 3, Code 2023, is amended
9to read as follows:
103. a. It shall be an affirmative defense to a claim arising
11under this section if any of the following applies:
12a. (1) Payment of wages is made pursuant to a seniority
13system.
14b. (2) Payment of wages is made pursuant to a merit system.
15c. (3) Payment of wages is made pursuant to a system which
16measures earnings by quantity or quality of production.
17d. (4) Pay differential is based on any other bona fide
18 factor other than the age, race, creed, color, sex, sexual
19orientation, gender identity, national origin, religion,
20or disability of such employee, including but not limited
21to a bona fide factor relating to education, training, or
22experience. This defense shall apply only if the employer
23demonstrates that the factor is not based on or derived from
24a differential in compensation based on age, race, creed,
25color, sex, sexual orientation, gender identity, national
26origin, religion, or disability; is job related with respect
27to the position in question; and is consistent with a business
28necessity. For purposes of this subparagraph, “business
29necessity” means an overriding legitimate business purpose
30such that the factor relied upon effectively fulfills the
31business purpose it is supposed to serve. This affirmative
32defense shall not apply if the employee demonstrates that an
33alternative business practice exists that would serve the same
34business purpose without producing the wage differential.
35b. An affirmative defense under this subsection is not
-2-1applicable unless one or more of the defenses listed in
2paragraph “a” account for the entire pay differential that is
3the subject of the claim.
4 Sec. 3. EQUAL PAY TASK FORCE AND REPORT.
51. An equal pay task force is created. The task force shall
6consist of the following members:
7a. The director of the civil rights commission, or the
8director’s designee.
9b. The director of the department of human rights, or the
10director’s designee.
11c. An employee of the labor market information division
12of the department of workforce development designated by the
13director of the department.
14d. A representative of the association of business and
15industry, appointed by the president of the association.
16e. A member of a statewide labor organization appointed by
17the president of the organization.
18f. Two representatives of organizations whose objectives
19include the elimination of pay disparities between men and
20women and minorities and nonminorities and that have undertaken
21advocacy, educational, or legislative initiatives in pursuit
22of such objectives appointed by the director of the civil
23rights commission in consultation with the leadership of those
24organizations.
25g. Two representatives of postsecondary education
26institutions who have experience and expertise in the
27collection and analysis of data concerning pay disparities
28between men and women and minorities and nonminorities
29and whose research has been used in efforts to promote the
30elimination of such disparities appointed by the director of
31the civil rights commission in consultation with the leadership
32of those institutions.
33h. Four members of the general assembly serving as
34ex officio, nonvoting members, one representative to be
35appointed by the speaker of the house of representatives, one
-3-1representative to be appointed by the minority leader of the
2house of representatives, one senator to be appointed by the
3majority leader of the senate, and one senator to be appointed
4by the minority leader of the senate.
52. The task force shall study all of the following:
6a. The extent of wage disparities, both in the public and
7private sectors, between men and women and between minorities
8and nonminorities.
9b. Factors that cause, or which tend to cause, such
10disparities, including segregation between women and
11men and between minorities and nonminorities across and
12within occupations, payment of lower wages for work in
13female-dominated occupations, child-rearing responsibilities,
14the number of women who are heads of households, education,
15hours worked, and years on the job.
16c. The consequences of such disparities on the economy and
17affected families.
18d. Actions likely to lead to the elimination and prevention
19of such disparities.
203. The civil rights commission shall provide staffing
21services for the task force.
224. The voting members shall elect a chairperson from the
23voting membership of the task force. A majority of the voting
24members of the task force constitutes a quorum.
255. Voting members of the task force shall receive
26reimbursement for actual expenses incurred while serving
27in their official capacity only if they are not eligible
28for reimbursement by the organization that they represent.
29Legislative members shall be paid the per diem and expenses
30specified in section 2.10.
316. The task force shall submit a report regarding its
32findings and its recommendations regarding potential actions
33for the elimination and prevention of disparities in wages
34between men and women and minorities and nonminorities to the
35governor and the general assembly no later than December 29,
-4-12023.
2EXPLANATION
3The inclusion of this explanation does not constitute agreement with
4the explanation’s substance by the members of the general assembly.
5This bill relates to wage discrimination under Iowa Code
6chapter 216, the Iowa civil rights Act of 1965, and establishes
7an equal pay task force.
8WAGE DISCRIMINATION IN EMPLOYMENT. The bill establishes
9additional unfair or discriminatory practices relating to wages
10under Code section 216.6A. Penalty and remedial provisions
11for discriminatory employment practices, including penalties
12specific to wage discrimination, are applicable under Code
13chapter 216 to violations of these requirements.
14The bill prohibits an employer from requiring that an
15employee refrain from disclosing, discussing, or sharing
16information about the amount of the employee’s wages, benefits,
17or other compensation or from inquiring, discussing, or sharing
18information about any other employee’s wages, benefits, or
19other compensation as a condition of employment. The bill
20prohibits an employer from requiring that an employee sign a
21waiver or other document that requires an employee to refrain
22from engaging in any of those activities as a condition of
23employment. The bill prohibits an employer from discriminating
24or retaliating against an employee for engaging in any of the
25activities.
26The bill prohibits an employer from seeking salary history
27information from a potential employee as a condition of a job
28interview or employment. This provision shall not be construed
29to prohibit a prospective employer from asking a prospective
30employee what salary level the prospective employee would
31require in order to accept a job.
32The bill prohibits an employer from releasing the salary
33history of any current or former employee to any prospective
34employer in response to a request as part of an interview or
35hiring process without written authorization from such current
-5-1or former employee.
2The bill prohibits an employer from publishing, listing, or
3posting within the employer’s organization, with any employment
4agency, job-listing service, or internet site, or in any other
5public manner, an advertisement to recruit candidates for
6hire or independent contractors to fill a position within the
7employer’s organization without including the minimum rate of
8pay of the position. The rate of pay shall include overtime
9and allowances, if any, claimed as part of the minimum wage,
10including but not limited to tipped wages. The bill prohibits
11an employer from paying a newly hired employee at less than the
12rate of pay advertised for the employee’s position.
13Under current law, an employer has an affirmative defense
14to a claim under Code section 216.6A if a pay differential
15is based on any other factor other than prohibited wage
16discrimination. The bill provides that an employer has an
17affirmative defense to a claim under Code section 216.6A if a
18pay differential is based on any other bona fide factor other
19than prohibited discrimination, including but not limited
20to a bona fide factor relating to education, training, or
21experience. However, this defense shall only apply if the
22employer demonstrates that the factor is not based on or
23derived from prohibited wage discrimination, is job related
24with respect to the position in question, and is consistent
25with a business necessity. The bill defines “business
26necessity” as an overriding legitimate business purpose
27such that the factor relied upon effectively fulfills the
28business purpose it is supposed to serve. This affirmative
29defense shall not apply if the employee demonstrates that an
30alternative business practice exists that would serve the same
31business purpose without producing the wage differential.
32The bill provides that affirmative defenses to a claim under
33Code section 216.6A are not applicable unless one or more of
34the defenses account for the entire pay differential that is
35the subject of the claim.
-6- 1EQUAL PAY TASK FORCE. The bill creates an equal pay task
2force to study the extent of discriminatory wage disparities
3in the public and private sectors, the factors that cause
4such disparities, the consequences of such disparities, and
5actions likely to lead to the elimination and prevention of
6such disparities.
7The bill establishes the membership of the task force,
8including ex officio, nonvoting legislative members. The civil
9rights commission shall provide staffing services for the task
10force.
11The task force shall submit a report regarding its findings
12and its recommendations regarding potential actions for the
13elimination and prevention of discriminatory wage disparities
14to the governor and the general assembly no later than December
1529, 2023.
-7-je/rn
2rights Act of 1965, making penalties applicable, and
3establishing an equal pay task force.
4BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1 Section 1. Section 216.6A, Code 2023, is amended by adding
2the following new subsection:
3 NEW SUBSECTION. 2A. It shall be an unfair or discriminatory
4practice for any employer or agent of any employer to do any of
5the following:
6a. Require, as a condition of employment, that an employee
7refrain from disclosing, discussing, or sharing information
8about the amount of the employee’s wages, benefits, or other
9compensation or from inquiring, discussing, or sharing
10information about any other employee’s wages, benefits, or
11other compensation.
12b. Require, as a condition of employment, that an employee
13sign a waiver or other document that requires an employee to
14refrain from engaging in any of the activities permitted under
15paragraph “a”.
16c. Discriminate or retaliate against an employee for
17engaging in any of the activities permitted under paragraph “a”.
18d. Seek salary history information, including but not
19limited to information on compensation and benefits, from
20a potential employee as a condition of a job interview or
21employment. This paragraph shall not be construed to prohibit
22a prospective employer from asking a prospective employee what
23salary level the prospective employee would require in order to
24accept a job.
25e. Release the salary history, including but not limited
26to information on compensation and benefits, of any current
27or former employee to any prospective employer in response to
28a request as part of an interview or hiring process without
29written authorization from such current or former employee.
30f. Publish, list, or post within the employer’s
31organization, with any employment agency, job-listing
32service, or internet site, or in any other public manner, an
33advertisement to recruit candidates for hire or independent
34contractors to fill a position within the employer’s
35organization without including the minimum rate of pay of the
-1-1position. The rate of pay may be by the hour, shift, day, week,
2salary, piece, commission, or other applicable rate. The rate
3of pay shall include overtime and allowances, if any, claimed
4as part of the minimum wage, including but not limited to
5tipped wages.
6g. Pay a newly hired employee at less than the rate of pay
7advertised for the employee’s position under paragraph “f”.
8 Sec. 2. Section 216.6A, subsection 3, Code 2023, is amended
9to read as follows:
103. a. It shall be an affirmative defense to a claim arising
11under this section if any of the following applies:
12a. (1) Payment of wages is made pursuant to a seniority
13system.
14b. (2) Payment of wages is made pursuant to a merit system.
15c. (3) Payment of wages is made pursuant to a system which
16measures earnings by quantity or quality of production.
17d. (4) Pay differential is based on any other bona fide
18 factor other than the age, race, creed, color, sex, sexual
19orientation, gender identity, national origin, religion,
20or disability of such employee, including but not limited
21to a bona fide factor relating to education, training, or
22experience. This defense shall apply only if the employer
23demonstrates that the factor is not based on or derived from
24a differential in compensation based on age, race, creed,
25color, sex, sexual orientation, gender identity, national
26origin, religion, or disability; is job related with respect
27to the position in question; and is consistent with a business
28necessity. For purposes of this subparagraph, “business
29necessity” means an overriding legitimate business purpose
30such that the factor relied upon effectively fulfills the
31business purpose it is supposed to serve. This affirmative
32defense shall not apply if the employee demonstrates that an
33alternative business practice exists that would serve the same
34business purpose without producing the wage differential.
35b. An affirmative defense under this subsection is not
-2-1applicable unless one or more of the defenses listed in
2paragraph “a” account for the entire pay differential that is
3the subject of the claim.
4 Sec. 3. EQUAL PAY TASK FORCE AND REPORT.
51. An equal pay task force is created. The task force shall
6consist of the following members:
7a. The director of the civil rights commission, or the
8director’s designee.
9b. The director of the department of human rights, or the
10director’s designee.
11c. An employee of the labor market information division
12of the department of workforce development designated by the
13director of the department.
14d. A representative of the association of business and
15industry, appointed by the president of the association.
16e. A member of a statewide labor organization appointed by
17the president of the organization.
18f. Two representatives of organizations whose objectives
19include the elimination of pay disparities between men and
20women and minorities and nonminorities and that have undertaken
21advocacy, educational, or legislative initiatives in pursuit
22of such objectives appointed by the director of the civil
23rights commission in consultation with the leadership of those
24organizations.
25g. Two representatives of postsecondary education
26institutions who have experience and expertise in the
27collection and analysis of data concerning pay disparities
28between men and women and minorities and nonminorities
29and whose research has been used in efforts to promote the
30elimination of such disparities appointed by the director of
31the civil rights commission in consultation with the leadership
32of those institutions.
33h. Four members of the general assembly serving as
34ex officio, nonvoting members, one representative to be
35appointed by the speaker of the house of representatives, one
-3-1representative to be appointed by the minority leader of the
2house of representatives, one senator to be appointed by the
3majority leader of the senate, and one senator to be appointed
4by the minority leader of the senate.
52. The task force shall study all of the following:
6a. The extent of wage disparities, both in the public and
7private sectors, between men and women and between minorities
8and nonminorities.
9b. Factors that cause, or which tend to cause, such
10disparities, including segregation between women and
11men and between minorities and nonminorities across and
12within occupations, payment of lower wages for work in
13female-dominated occupations, child-rearing responsibilities,
14the number of women who are heads of households, education,
15hours worked, and years on the job.
16c. The consequences of such disparities on the economy and
17affected families.
18d. Actions likely to lead to the elimination and prevention
19of such disparities.
203. The civil rights commission shall provide staffing
21services for the task force.
224. The voting members shall elect a chairperson from the
23voting membership of the task force. A majority of the voting
24members of the task force constitutes a quorum.
255. Voting members of the task force shall receive
26reimbursement for actual expenses incurred while serving
27in their official capacity only if they are not eligible
28for reimbursement by the organization that they represent.
29Legislative members shall be paid the per diem and expenses
30specified in section 2.10.
316. The task force shall submit a report regarding its
32findings and its recommendations regarding potential actions
33for the elimination and prevention of disparities in wages
34between men and women and minorities and nonminorities to the
35governor and the general assembly no later than December 29,
-4-12023.
2EXPLANATION
3The inclusion of this explanation does not constitute agreement with
4the explanation’s substance by the members of the general assembly.
5This bill relates to wage discrimination under Iowa Code
6chapter 216, the Iowa civil rights Act of 1965, and establishes
7an equal pay task force.
8WAGE DISCRIMINATION IN EMPLOYMENT. The bill establishes
9additional unfair or discriminatory practices relating to wages
10under Code section 216.6A. Penalty and remedial provisions
11for discriminatory employment practices, including penalties
12specific to wage discrimination, are applicable under Code
13chapter 216 to violations of these requirements.
14The bill prohibits an employer from requiring that an
15employee refrain from disclosing, discussing, or sharing
16information about the amount of the employee’s wages, benefits,
17or other compensation or from inquiring, discussing, or sharing
18information about any other employee’s wages, benefits, or
19other compensation as a condition of employment. The bill
20prohibits an employer from requiring that an employee sign a
21waiver or other document that requires an employee to refrain
22from engaging in any of those activities as a condition of
23employment. The bill prohibits an employer from discriminating
24or retaliating against an employee for engaging in any of the
25activities.
26The bill prohibits an employer from seeking salary history
27information from a potential employee as a condition of a job
28interview or employment. This provision shall not be construed
29to prohibit a prospective employer from asking a prospective
30employee what salary level the prospective employee would
31require in order to accept a job.
32The bill prohibits an employer from releasing the salary
33history of any current or former employee to any prospective
34employer in response to a request as part of an interview or
35hiring process without written authorization from such current
-5-1or former employee.
2The bill prohibits an employer from publishing, listing, or
3posting within the employer’s organization, with any employment
4agency, job-listing service, or internet site, or in any other
5public manner, an advertisement to recruit candidates for
6hire or independent contractors to fill a position within the
7employer’s organization without including the minimum rate of
8pay of the position. The rate of pay shall include overtime
9and allowances, if any, claimed as part of the minimum wage,
10including but not limited to tipped wages. The bill prohibits
11an employer from paying a newly hired employee at less than the
12rate of pay advertised for the employee’s position.
13Under current law, an employer has an affirmative defense
14to a claim under Code section 216.6A if a pay differential
15is based on any other factor other than prohibited wage
16discrimination. The bill provides that an employer has an
17affirmative defense to a claim under Code section 216.6A if a
18pay differential is based on any other bona fide factor other
19than prohibited discrimination, including but not limited
20to a bona fide factor relating to education, training, or
21experience. However, this defense shall only apply if the
22employer demonstrates that the factor is not based on or
23derived from prohibited wage discrimination, is job related
24with respect to the position in question, and is consistent
25with a business necessity. The bill defines “business
26necessity” as an overriding legitimate business purpose
27such that the factor relied upon effectively fulfills the
28business purpose it is supposed to serve. This affirmative
29defense shall not apply if the employee demonstrates that an
30alternative business practice exists that would serve the same
31business purpose without producing the wage differential.
32The bill provides that affirmative defenses to a claim under
33Code section 216.6A are not applicable unless one or more of
34the defenses account for the entire pay differential that is
35the subject of the claim.
-6- 1EQUAL PAY TASK FORCE. The bill creates an equal pay task
2force to study the extent of discriminatory wage disparities
3in the public and private sectors, the factors that cause
4such disparities, the consequences of such disparities, and
5actions likely to lead to the elimination and prevention of
6such disparities.
7The bill establishes the membership of the task force,
8including ex officio, nonvoting legislative members. The civil
9rights commission shall provide staffing services for the task
10force.
11The task force shall submit a report regarding its findings
12and its recommendations regarding potential actions for the
13elimination and prevention of discriminatory wage disparities
14to the governor and the general assembly no later than December
1529, 2023.
-7-je/rn