Senate File 137 - Introduced
SENATE FILE
BY COMMITTEE ON STATE GOVERNMENT
(SUCCESSOR TO SSB 1089)
Passed Senate, Date Passed House, Date
Vote: Ayes Nays Vote: Ayes Nays
Approved
A BILL FOR
1 An Act providing that wage discrimination is an unfair employment
2 practice under the Iowa civil rights Act and providing an
3 enhanced remedy.
4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
5 TLSB 1394SV 83
6 ec/nh/24
PAG LIN
1 1 Section 1. Section 216.2, subsection 15, Code 2009, is
1 2 amended to read as follows:
1 3 15. "Unfair practice" or "discriminatory practice" means
1 4 those practices specified as unfair or discriminatory in
1 5 sections 216.6, 216.6A, 216.7, 216.8, 216.8A, 216.9, 216.10,
1 6 216.11, and 216.11A.
1 7 Sec. 2. NEW SECTION. 216.6A ADDITIONAL UNFAIR OR
1 8 DISCRIMINATORY PRACTICE == WAGE DISCRIMINATION IN EMPLOYMENT.
1 9 1. a. The general assembly finds that the practice of
1 10 discriminating against any employee because of the age, race,
1 11 creed, color, sex, sexual orientation, gender identity,
1 12 national origin, religion, or disability of such employee by
1 13 paying wages to such employee at a rate less than the rate
1 14 paid to other employees does all of the following:
1 15 (1) Unjustly discriminates against the person receiving
1 16 the lesser rate.
1 17 (2) Leads to low employee morale, high turnover, and
1 18 frequent labor unrest.
1 19 (3) Discourages employees paid at lesser wage rates from
1 20 training for higher level jobs.
1 21 (4) Curtails employment opportunities, decreases
1 22 employees' mobility, and increases labor costs.
1 23 (5) Impairs purchasing power and threatens the maintenance
1 24 of an adequate standard of living by such employees and their
1 25 families.
1 26 (6) Prevents optimum utilization of the state's available
1 27 labor resources.
1 28 (7) Threatens the well=being of citizens of this state and
1 29 adversely affects the general welfare.
1 30 b. The general assembly declares that it is the policy of
1 31 this state to correct and, as rapidly as possible, to
1 32 eliminate, discriminatory wage practices based on age, race,
1 33 creed, color, sex, sexual orientation, gender identity,
1 34 national origin, religion, and disability.
1 35 2. a. It shall be an unfair or discriminatory practice
2 1 for any employer or agent of any employer to discriminate
2 2 against any employee because of the age, race, creed, color,
2 3 sex, sexual orientation, gender identity, national origin,
2 4 religion, or disability of such employee by paying wages to
2 5 such employee at a rate less than the rate paid to other
2 6 employees who are employed within the same establishment for
2 7 equal work on jobs, the performance of which requires equal
2 8 skill, effort, and responsibility, and which are performed
2 9 under similar working conditions. An employer or agent of an
2 10 employer who is paying wages to an employee at a rate less
2 11 than the rate paid to other employees in violation of this
2 12 section shall not remedy the violation by reducing the wage
2 13 rate of any employee.
2 14 b. For purposes of this subsection, an unfair or
2 15 discriminatory practice occurs when a discriminatory pay
2 16 decision or other practice is adopted, when an individual
2 17 becomes subject to a discriminatory pay decision or other
2 18 practice, or when an individual is affected by application of
2 19 a discriminatory pay decision or other practice, including
2 20 each time wages, benefits, or other compensation is paid,
2 21 resulting in whole or in part from such a decision or other
2 22 practice.
2 23 3. It shall be an affirmative defense for a claim arising
2 24 under this section if any of the following applies:
2 25 a. Payment of wages is made pursuant to a seniority
2 26 system.
2 27 b. Payment of wages is made pursuant to a merit system.
2 28 c. Payment of wages is made pursuant to a system which
2 29 measures earnings by quantity or quality of production.
2 30 d. Pay differential is based on any other factor other
2 31 than the age, race, creed, color, sex, sexual orientation,
2 32 gender identity, national origin, religion, or disability of
2 33 such employee.
2 34 4. This section shall not apply to any employer who
2 35 regularly employs less than four individuals. For purposes of
3 1 this subsection, individuals who are members of the employer's
3 2 family shall not be counted as employees.
3 3 Sec. 3. Section 216.15, subsection 8, paragraph a,
3 4 subparagraph (8), Code 2009, is amended to read as follows:
3 5 (8) (a) Payment to the complainant of damages for an
3 6 injury caused by the discriminatory or unfair practice which
3 7 damages shall include but are not limited to actual damages,
3 8 court costs and reasonable attorney fees.
3 9 (b) For an unfair or discriminatory practice relating to
3 10 wage discrimination pursuant to section 216.6A, damages under
3 11 this subparagraph (8) include but are not limited to court
3 12 costs, reasonable attorney fees, and an amount equal to twice
3 13 the wage differential paid to another employee compared to the
3 14 complainant for the period of time for which the complainant
3 15 has been discriminated against, or, in instances of willful
3 16 violation, an amount equal to three times the wage
3 17 differential paid to another employee as compared to the
3 18 complainant for the applicable period of time.
3 19 EXPLANATION
3 20 This bill provides that discrimination against any employee
3 21 on the basis of pay because of the age, race, creed, color,
3 22 sex, sexual orientation, gender identity, national origin,
3 23 religion, or disability of such employee is an unfair
3 24 employment practice under the Iowa civil rights Act. The bill
3 25 provides that an unfair or discriminatory practice occurs
3 26 relative to wage discrimination when a discriminatory pay
3 27 decision is made, when an individual becomes subject to a
3 28 discriminatory pay decision, or when an individual is affected
3 29 by application of a discriminatory pay decision or other
3 30 practice, including each time wages, benefits, or other
3 31 compensation is paid, resulting in whole or in part from such
3 32 a decision or practice. The bill provides that it shall be an
3 33 affirmative defense to a claim if payment of wages is made
3 34 pursuant to a seniority system, a merit system, a system which
3 35 measures earnings by quantity or quality of production, or is
4 1 based on any other factor other than the age, race, creed,
4 2 color, sex, sexual orientation, gender identity, national
4 3 origin, religion, or disability of such employee. The bill
4 4 also provides that the bill does not apply to employers who
4 5 regularly employ fewer than four individuals. The bill does
4 6 provide that reducing the wage rate of an employee does not
4 7 remedy any potential violation for wage discrimination.
4 8 The bill also authorizes the civil rights commission to
4 9 award damages to a person subject to wage discrimination in an
4 10 amount double the wage differential paid to any other employee
4 11 compared to the complainant for the period of time for which
4 12 the complainant has been discriminated, and, in instances of
4 13 willful violation, up to three times that wage differential
4 14 amount.
4 15 LSB 1394SV 83
4 16 ec/nh/24