S.F. 2259 Section 1. FINDINGS —— PURPOSE. 1 1. The general assembly finds that denial of employment 2 opportunities to individuals because of their status as 3 unemployed is discriminatory and burdens commerce by doing one 4 or more of the following: 5 a. Reducing personal consumption and undermining economic 6 stability and growth. 7 b. Squandering human capital essential to the state’s 8 economic vibrancy and growth. 9 c. Increasing demands for unemployment insurance benefits, 10 reducing unemployment trust fund assets, and leading to higher 11 payroll taxes for employers, or cuts in unemployment insurance 12 benefits for jobless workers, or both. 13 d. Imposing additional burdens on publicly funded health 14 and welfare programs. 15 e. Depressing income, property, and other tax revenues that 16 the states and local governments rely on to support operations 17 and institutions essential to commerce. 18 2. The purposes of this Act are all of the following: 19 a. To prohibit employers and employment agencies from 20 disqualifying an individual from employment opportunities 21 because of that individual’s status as unemployed. 22 b. To prohibit employers and employment agencies from 23 publishing or posting any advertisement or announcement for 24 an employment opportunity that indicates that an individual’s 25 status as unemployed disqualifies that individual for the 26 opportunity. 27 c. To eliminate the burdens imposed on commerce due to the 28 exclusion of such individuals from employment. 29 Sec. 2. NEW SECTION . 730A.1 Unemployment status 30 discrimination in employment prohibited. 31 1. For the purposes of this section, “status as unemployed” 32 means that an individual, at the time of application for 33 employment or at the time of action alleged to violate this 34 section, does not have a job, is available for work, and is 35 -1- LSB 5090SV (2) 84 je/rj 1/ 5

S.F. 2259 searching for work. 1 2. It shall be unlawful for an employer to do any of the 2 following: 3 a. Publish in print, on the internet, or in any other 4 medium, an advertisement or announcement for an employee for 5 any job that includes any of the following: 6 (1) Any provision stating or indicating that an 7 individual’s status as unemployed disqualifies the individual 8 for any employment opportunity. 9 (2) Any provision stating or indicating that the employer 10 will not consider or hire an individual for any employment 11 opportunity based on that individual’s status as unemployed. 12 b. Fail or refuse to consider for employment, or fail or 13 refuse to hire, an individual as an employee because of the 14 individual’s status as unemployed. 15 c. Direct or request that an employment agency take an 16 individual’s status as unemployed into account to disqualify 17 an applicant for consideration, screening, or referral for 18 employment as an employee. 19 3. It shall be unlawful for an employment agency to do any 20 of the following: 21 a. Publish in print, on the internet, or in any other 22 medium, an advertisement or announcement for any vacancy in a 23 job, as an employee, that includes any of the following: 24 (1) Any provision stating or indicating that an 25 individual’s status as unemployed disqualifies the individual 26 for any employment opportunity. 27 (2) Any provision stating or indicating that the employment 28 agency or an employer will not consider or hire an individual 29 for any employment opportunity based on that individual’s 30 status as unemployed. 31 b. Screen, fail or refuse to consider, or fail or refuse to 32 refer an individual for employment as an employee because of 33 the individual’s status as unemployed. 34 c. Limit, segregate, or classify any individual in any 35 -2- LSB 5090SV (2) 84 je/rj 2/ 5

S.F. 2259 manner that would limit or tend to limit the individual’s 1 access to information about jobs, or consideration, screening, 2 or referral for jobs, as an employee, solely because of an 3 individual’s status as unemployed. 4 4. a. An employer who violates this section shall cease 5 and desist from further violations and shall pay the following 6 civil penalty: 7 (1) For a first violation, not more than one thousand 8 dollars. 9 (2) For a second violation, not more than five thousand 10 dollars. 11 (3) For a third or subsequent violation, not more than ten 12 thousand dollars. 13 b. In addition, an employer found to have violated 14 this section shall be assessed the costs of the action to 15 enforce the civil penalty, including the reasonable costs of 16 investigation and attorney fees. 17 5. A civil action to enforce this provision shall be by 18 equitable proceedings instituted by the attorney general. 19 6. Penalties ordered pursuant to this section shall be paid 20 to the treasurer of state for deposit in the general fund of 21 the state. 22 7. a. This section shall not be construed to preclude 23 an employer or employment agency from considering an 24 individual’s employment history, or from examining the reasons 25 underlying an individual’s status as unemployed, in assessing 26 an individual’s ability to perform a job or in otherwise 27 making employment decisions about that individual. Such 28 consideration or examination may include an assessment of 29 whether an individual’s employment history in a similar or 30 related job for a period of time reasonably proximate to the 31 time of consideration of the individual for new employment is 32 job-related or consistent with business necessity in relation 33 to that new employment. 34 b. This section shall not be construed to create a private 35 -3- LSB 5090SV (2) 84 je/rj 3/ 5

S.F. 2259 right of action against an employer who has violated, or is 1 alleged to have violated, this section. 2 EXPLANATION 3 This bill prohibits employment discrimination based on an 4 individual’s status as unemployed. The bill defines “status as 5 unemployed” as an individual who, at the time of application 6 for employment or at the time of an alleged violation, does not 7 have a job, is available for work, and is searching for work. 8 The bill prohibits an employer from engaging in certain 9 employment practices. An employer is prohibited from 10 publishing an advertisement or announcement for employment that 11 includes any provision stating that an individual’s status 12 as unemployed disqualifies the individual for any employment 13 opportunity or any provision stating that the employer 14 will not consider or hire an individual for any employment 15 opportunity based on that individual’s status as unemployed. 16 An employer is prohibited from failing or refusing to consider 17 for employment or failing or refusing to hire an individual 18 because of the individual’s status as unemployed. An employer 19 is prohibited from directing or requesting that an employment 20 agency take an individual’s status as unemployed into account 21 to disqualify an applicant for consideration, screening, or 22 referral for employment. 23 The bill also prohibits an employment agency from engaging 24 in certain employment practices. An employment agency is 25 prohibited from publishing an advertisement or announcement 26 for any vacancy in a job that includes any provision stating 27 that an individual’s status as unemployed disqualifies the 28 individual for any employment opportunity or any provision 29 stating that the employment agency or an employer will not 30 consider or hire an individual for any employment opportunity 31 based on that individual’s status as unemployed. An employment 32 agency is prohibited from screening, or failing or refusing to 33 consider, or failing or refusing to refer an individual for 34 employment because of the individual’s status as unemployed. 35 -4- LSB 5090SV (2) 84 je/rj 4/ 5

S.F. 2259 An employment agency is prohibited from limiting, segregating, 1 or classifying an individual in any manner that would limit 2 the individual’s access to information about jobs, or 3 consideration, screening, or referral for jobs solely because 4 of the individual’s status as unemployed. 5 The bill provides that a first violation carries a civil 6 penalty of not more than $1,000, a second violation not more 7 than $5,000, and a third or subsequent violation not more 8 than $10,000. In addition to the civil penalty, an employer 9 shall be assessed the costs of enforcement. The bill shall be 10 enforced by a civil action instituted by the attorney general. 11 The bill is not to be construed to preclude an employer 12 or employment agency from considering an individual’s 13 employment history, or from examining the reasons underlying 14 an individual’s status as unemployed, in assessing an 15 individual’s ability to perform a job or in otherwise making 16 employment decisions about that individual. Such consideration 17 or examination may include an assessment of whether an 18 individual’s employment history in a similar or related job 19 for a period of time reasonably proximate to the time of 20 consideration for new employment is job-related or consistent 21 with business necessity in relation to that new employment. 22 The bill is not to be construed to create a private right 23 of action against an employer for a violation or alleged 24 violation. 25 -5- LSB 5090SV (2) 84 je/rj 5/ 5