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