Senate File 69 - Introduced



                                       SENATE FILE       
                                       BY  DOTZLER


    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 2059SS 81
  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.  "Employee" means a person employed by an employer and
  1  5 includes all of an employer's year=round employees, whether
  1  6 working full=time or part=time, and any temporary employee
  1  7 employed by an employer for a period of at least three months.
  1  8 "Employee" shall not include an individual employed by the
  1  9 individual's parent, spouse, or child.
  1 10    2.  "Employer" means a person who employs three or more
  1 11 persons and includes the state and all political subdivisions
  1 12 of the state.
  1 13    3.  "Equivalent jobs" means jobs or occupations that are
  1 14 equal within the meaning of 29 U.S.C. } 206(d), or jobs or
  1 15 occupations that are dissimilar but whose requirements are
  1 16 equivalent, when viewed as a composite of skills, effort,
  1 17 responsibility, and working conditions, or jobs or occupations
  1 18 that are equally productive and have equal value for an
  1 19 employer.
  1 20    4.  "Labor organization" means an organization that exists
  1 21 for the purpose, in whole or in part, of collective bargaining
  1 22 or of dealing with employers concerning grievances, terms of
  1 23 conditions of employment, or of other mutual aid or protection
  1 24 in connection with employment.
  1 25    5.  "Market rates" means the rates that employers within a
  1 26 prescribed geographic area actually pay, or are reported to
  1 27 pay, for specific jobs, as determined by formal or informal
  1 28 surveys, wage studies, or other means.
  1 29    6.  "Wages" and "wage rates" include all compensation in
  1 30 any form that an employer provides to employees in payment for
  1 31 work done or services rendered, including but not limited to
  1 32 base pay, bonuses, commissions, awards, tips, or various forms
  1 33 of nonmonetary compensation if provided in lieu of or in
  1 34 addition to monetary compensation and that have economic value
  1 35 to an employee.
  2  1    Sec. 2.  NEW SECTION.  91F.2  WAGE DISCRIMINATION
  2  2 PROHIBITION.
  2  3    1.  It shall be an unlawful employment practice in
  2  4 violation of this chapter for an employer to discriminate
  2  5 between employees on the basis of sex, race, or national
  2  6 origin by doing any of the following:
  2  7    a.  Paying wages to employees at a rate less than the rate
  2  8 paid to employees of the opposite sex or of a different race
  2  9 or national origin for work in equivalent jobs.
  2 10    b.  Paying wages to employees in a job that is dominated by
  2 11 employees of a particular sex, race, or national origin at a
  2 12 rate less than the rate at which such employer pays to
  2 13 employees in another job that is dominated by employees of the
  2 14 opposite sex or of a different race or national origin, for
  2 15 work on equivalent jobs.
  2 16    2.  An employer may pay different wage rates to employees
  2 17 where such payments are made pursuant to any of the following:
  2 18    a.  A bona fide seniority or merit system.
  2 19    b.  A system that measures earnings by quantity or quality
  2 20 of production.
  2 21    c.  A bona fide factor other than sex, race, or national
  2 22 origin.  However, wage differentials based on varying market
  2 23 rates for equivalent jobs or based on the differing economic
  2 24 benefits to the employer of equivalent jobs shall not be
  2 25 considered to be based on a bona fide factor other than sex,
  2 26 race, or national origin.
  2 27    3.  An employer who is paying wages in violation of this
  2 28 section shall not, in order to comply with the provisions of
  2 29 this section, reduce the wage of any employee.
  2 30    4.  A labor organization or its agents representing
  2 31 employees of an employer having employees subject to any
  2 32 provision of this chapter shall not cause or attempt to cause
  2 33 such an employer to discriminate against an employee in
  2 34 violation of subsection 1.
  2 35    5.  The labor commissioner shall adopt rules specifying the
  3  1 criteria for determining whether a job is dominated by
  3  2 employees of a particular sex, race, or national origin.
  3  3 Criteria shall include, but not be limited to, factors such as
  3  4 whether the job has ever been formally classified as or
  3  5 traditionally considered to be a male or female or white or
  3  6 minority job; whether a history of discrimination based on
  3  7 sex, race, or national origin exists with regard to wages,
  3  8 assignment, or access to jobs, or other terms and conditions
  3  9 of employment; and the demographic composition of the
  3 10 workforce in equivalent jobs.  The rules shall not include a
  3 11 list of jobs.
  3 12    Sec. 3.  NEW SECTION.  91F.3  OTHER PROHIBITED ACTS.
  3 13    It shall be an unlawful employment practice in violation of
  3 14 this chapter for an employer to do any of the following:
  3 15    1.  Take adverse actions or otherwise discriminate against
  3 16 an individual because such individual has opposed any act or
  3 17 practice made unlawful by this chapter; has sought to enforce
  3 18 rights protected under this chapter; or has testified,
  3 19 assisted, or participated in any manner in an investigation,
  3 20 hearing, or other proceeding to enforce this chapter.
  3 21    2.  Discharge or in any other manner discriminate against,
  3 22 coerce, intimidate, threaten, or interfere with an employee or
  3 23 another person because the employee inquired about, disclosed,
  3 24 compared, or otherwise discussed the employee's wages or the
  3 25 wages of any other employee, or because the employee
  3 26 exercised, enjoyed, aided, or encouraged another person to
  3 27 exercise or enjoy any right granted or protected by this
  3 28 chapter.
  3 29    Sec. 4.  NEW SECTION.  91F.4  WAGE DISCLOSURE,
  3 30 RECORDKEEPING, AND REPORTING REQUIREMENTS.
  3 31    1.  Upon commencement of an individual's employment and at
  3 32 least annually thereafter, the individual's employer subject
  3 33 to this chapter shall provide to the employee a written
  3 34 statement sufficient to inform the employee of the employee's
  3 35 job title, wage rate, and how the wage is calculated.  This
  4  1 notice shall be supplemented whenever an employee is promoted
  4  2 or reassigned to a different position with the employer.
  4  3 However, the employer is not required to issue supplemental
  4  4 notifications for temporary reassignments that are no greater
  4  5 than three months in duration.
  4  6    2.  An employer subject to this chapter shall make and
  4  7 preserve records that document the wages paid to employees and
  4  8 that document and support the method, system, calculations,
  4  9 and other bases used to establish, adjust, and determine the
  4 10 wage rates paid to employees.  An employer subject to this
  4 11 chapter shall preserve the records for such periods of time
  4 12 and shall make reports from the records as shall be prescribed
  4 13 by rules or orders of the labor commissioner.
  4 14    3.  The rules adopted under this chapter, relating to the
  4 15 form of reports required by subsection 2, shall provide for
  4 16 protection of the confidentiality of employees, and shall
  4 17 expressly require that reports shall not include the names or
  4 18 other identifying information from which readers could discern
  4 19 the identities of employees.  The rules may also identify
  4 20 circumstances that warrant a prohibition on disclosure of
  4 21 reports or information identifying the employer.
  4 22    4.  The labor commissioner may use the information and data
  4 23 collected pursuant to subsection 2 for statistical and
  4 24 research purposes, and may compile and publish such studies,
  4 25 analyses, reports, and surveys based on the information and
  4 26 data, as appropriate.
  4 27    Sec. 5.  NEW SECTION.  91F.5  REMEDIES AND ENFORCEMENT.
  4 28    1.  a.  In an action in which a court finds that an
  4 29 employer has engaged in acts that violate this chapter, the
  4 30 court shall award to an affected employee or employees
  4 31 monetary relief, including back pay in an amount equal to the
  4 32 difference between the employee's actual earnings and what the
  4 33 employee would have earned but for the employer's unlawful
  4 34 practices, and an additional amount in compensatory and
  4 35 punitive damages, as appropriate.
  5  1    b.  In an action in which a court finds that an employer
  5  2 has engaged in acts that violate this chapter, the court shall
  5  3 enjoin the employer from continuing to discriminate against an
  5  4 affected employee or employees and shall direct the employer
  5  5 to comply with this chapter, and may order the employer to
  5  6 take such additional affirmative steps as are necessary,
  5  7 including reinstatement or reclassification of an affected
  5  8 employee or employees, to ensure an end to unlawful
  5  9 discrimination.
  5 10    c.  In an action in which an affected employee or employees
  5 11 prevail in their claims against an employer, the court shall,
  5 12 in addition to any judgment awarded to the plaintiffs, order
  5 13 the employer to pay a reasonable attorney fee, reasonable
  5 14 expert witness fees, and costs of the action.
  5 15    2.  a.  An action to recover the damages or equitable
  5 16 relief prescribed in subsection 1 may be maintained against an
  5 17 employer in any court of competent jurisdiction by one or more
  5 18 employees or their representative on their own behalf or on
  5 19 their own behalf and on the behalf of other employees
  5 20 similarly situated.
  5 21    b.  (1)  The labor commissioner shall receive, investigate,
  5 22 and attempt to resolve complaints of violations of this
  5 23 chapter.
  5 24    (2)  If the labor commissioner is unable to reach a
  5 25 voluntary resolution of a complaint, the labor commissioner
  5 26 may bring an action in any court of competent jurisdiction to
  5 27 recover the equitable and monetary relief described in
  5 28 subsection 1.
  5 29    (3)  Any sums recovered by the labor commissioner pursuant
  5 30 to this paragraph "b" shall be paid directly to each employee
  5 31 affected by the employer's unlawful acts.
  5 32    c.  An action may be brought under this section not later
  5 33 than two years after the date of the last event constituting
  5 34 the alleged violation for which the action is brought.
  5 35    Sec. 6.  EFFECTIVE DATE.  This Act, being deemed of
  6  1 immediate importance, takes effect upon enactment.
  6  2                           EXPLANATION
  6  3    This bill creates a new Code chapter governing wage
  6  4 discrimination.
  6  5    The bill makes it unlawful for an employer to pay wages
  6  6 that discriminate between employees based on sex, race, or
  6  7 national origin unless the differences are due to a valid
  6  8 factor unrelated to sex, race, or national origin.  The bill
  6  9 also makes it unlawful for an employer to take action against
  6 10 a person exercising their rights pursuant to this new chapter.
  6 11    The bill requires employers, on an annual basis, to provide
  6 12 employees with information on how the employees' wage is
  6 13 calculated.  The bill also requires employers to maintain
  6 14 records concerning wages paid to employees.
  6 15    The bill permits an affected employee to maintain an action
  6 16 against an employer who violates this chapter and to obtain
  6 17 damages, seek an injunction, and be awarded witness and
  6 18 attorney fees and costs.  The bill also permits employees to
  6 19 maintain an action on behalf of other employees.  In addition,
  6 20 the labor commissioner is granted the authority to resolve
  6 21 complaints arising out of this chapter and to maintain a civil
  6 22 action for monetary and equitable relief on behalf of
  6 23 employees.
  6 24    The bill takes effect upon enactment.
  6 25 LSB 2059SS 81
  6 26 kh/cf/24