House File 146 - Introduced HOUSE FILE 146 BY STAED , WINCKLER , HUNTER , LENSING , KURTH , ANDERSON , DONAHUE , MASCHER , OLDSON , KACENA , and R. SMITH A BILL FOR An Act relating to wage discrimination under the Iowa civil 1 rights Act of 1965 and in state contracting, making 2 penalties applicable, and establishing an equal pay task 3 force. 4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 5 TLSB 1810YH (3) 88 je/rn

H.F. 146 Section 1. NEW SECTION . 19B.7A State contracts —— race and 1 gender compensation reporting. 2 1. For purposes of ensuring compliance with chapter 216 3 and this chapter, a nonstate party to a contract for goods or 4 services with the state shall submit the following information 5 regarding each of its employees in a report to the department 6 of administrative services and the civil rights commission 7 annually by January 1: 8 a. Total annual compensation. 9 b. Occupation. 10 c. Sex. 11 d. Race. 12 e. Length of employment. 13 f. Highest level of education attained. 14 g. Years of experience relevant to the employee’s job. 15 2. Names of employees shall not be included in the report. 16 Sec. 2. Section 216.6A, Code 2019, is amended by adding the 17 following new subsections: 18 NEW SUBSECTION . 2A. It shall be an unfair or discriminatory 19 practice for any employer or agent of any employer to do any of 20 the following: 21 a. Require, as a condition of employment, that an employee 22 refrain from disclosing, discussing, or sharing information 23 about the amount of the employee’s wages, benefits, or other 24 compensation or from inquiring, discussing, or sharing 25 information about any other employee’s wages, benefits, or 26 other compensation. 27 b. Require, as a condition of employment, that an employee 28 sign a waiver or other document that requires an employee to 29 refrain from engaging in any of the activities permitted under 30 paragraph “a” . 31 c. Discriminate or retaliate against an employee for 32 engaging in any of the activities permitted under paragraph “a” . 33 d. Seek salary history information, including but not 34 limited to information on compensation and benefits, from 35 -1- LSB 1810YH (3) 88 je/rn 1/ 8

H.F. 146 a potential employee as a condition of a job interview or 1 employment. This paragraph shall not be construed to prohibit 2 a prospective employer from asking a prospective employee what 3 salary level the prospective employee would require in order to 4 accept a job. 5 e. Release the salary history, including but not limited 6 to information on compensation and benefits, of any current 7 or former employee to any prospective employer in response to 8 a request as part of an interview or hiring process without 9 written authorization from such current or former employee. 10 f. Publish, list, or post within the employer’s 11 organization, with any employment agency, job-listing 12 service, or internet site, or in any other public manner, an 13 advertisement to recruit candidates for hire or independent 14 contractors to fill a position within the employer’s 15 organization without including the minimum rate of pay of the 16 position. The rate of pay may be by the hour, shift, day, week, 17 salary, piece, commission, or other applicable rate. The rate 18 of pay shall include overtime and allowances, if any, claimed 19 as part of the minimum wage, including but not limited to 20 tipped wages. 21 g. Pay a newly hired employee at less than the rate of pay 22 advertised for the employee’s position under paragraph “f” . 23 NEW SUBSECTION . 5. The commission shall establish a 24 statewide, toll-free telephone hotline for the purpose of 25 receiving reports of violations of this section. 26 Sec. 3. Section 216.6A, subsection 3, Code 2019, is amended 27 to read as follows: 28 3. a. It shall be an affirmative defense to a claim arising 29 under this section if any of the following applies: 30 a. (1) Payment of wages is made pursuant to a seniority 31 system. 32 b. (2) Payment of wages is made pursuant to a merit system. 33 c. (3) Payment of wages is made pursuant to a system which 34 measures earnings by quantity or quality of production. 35 -2- LSB 1810YH (3) 88 je/rn 2/ 8

H.F. 146 d. (4) Pay differential is based on any other bona fide 1 factor other than the age, race, creed, color, sex, sexual 2 orientation, gender identity, national origin, religion, 3 or disability of such employee , including but not limited 4 to a bona fide factor relating to education, training, or 5 experience . This defense shall apply only if the employer 6 demonstrates that the factor is not based on or derived from 7 a differential in compensation based on age, race, creed, 8 color, sex, sexual orientation, gender identity, national 9 origin, religion, or disability; is job related with respect 10 to the position in question; and is consistent with a business 11 necessity. For purposes of this subparagraph, “business 12 necessity” means an overriding legitimate business purpose 13 such that the factor relied upon effectively fulfills the 14 business purpose it is supposed to serve. This affirmative 15 defense shall not apply if the employee demonstrates that an 16 alternative business practice exists that would serve the same 17 business purpose without producing the wage differential. 18 b. An affirmative defense under this subsection is not 19 applicable unless one or more of the defenses listed in 20 paragraph “a” account for the entire pay differential that is 21 the subject of the claim. 22 Sec. 4. EQUAL PAY TASK FORCE AND REPORT. 23 1. An equal pay task force is created. The task force shall 24 consist of the following members: 25 a. The director of the civil rights commission, or the 26 director’s designee. 27 b. The director of the department of human rights, or the 28 director’s designee. 29 c. An employee of the labor market information division 30 of the department of workforce development designated by the 31 director of the department. 32 d. A representative of the association of business and 33 industry, appointed by the president of the association. 34 e. A member of a statewide labor organization appointed by 35 -3- LSB 1810YH (3) 88 je/rn 3/ 8

H.F. 146 the president of the organization. 1 f. Two representatives of organizations whose objectives 2 include the elimination of pay disparities between men and 3 women and minorities and nonminorities and that have undertaken 4 advocacy, educational, or legislative initiatives in pursuit 5 of such objectives appointed by the director of the civil 6 rights commission in consultation with the leadership of those 7 organizations. 8 g. Two representatives of postsecondary education 9 institutions who have experience and expertise in the 10 collection and analysis of data concerning pay disparities 11 between men and women and minorities and nonminorities 12 and whose research has been used in efforts to promote the 13 elimination of such disparities appointed by the director of 14 the civil rights commission in consultation with the leadership 15 of those institutions. 16 h. Four members of the general assembly serving as 17 ex officio, nonvoting members, one representative to be 18 appointed by the speaker of the house of representatives, one 19 representative to be appointed by the minority leader of the 20 house of representatives, one senator to be appointed by the 21 majority leader of the senate, and one senator to be appointed 22 by the minority leader of the senate. 23 2. The task force shall study all of the following: 24 a. The extent of wage disparities, both in the public and 25 private sectors, between men and women and between minorities 26 and nonminorities. 27 b. Factors that cause, or which tend to cause, such 28 disparities, including segregation between women and 29 men and between minorities and nonminorities across and 30 within occupations, payment of lower wages for work in 31 female-dominated occupations, child-rearing responsibilities, 32 the number of women who are heads of households, education, 33 hours worked, and years on the job. 34 c. The consequences of such disparities on the economy and 35 -4- LSB 1810YH (3) 88 je/rn 4/ 8

H.F. 146 affected families. 1 d. Actions likely to lead to the elimination and prevention 2 of such disparities. 3 3. The civil rights commission shall provide staffing 4 services for the task force. 5 4. The voting members shall elect a chairperson from the 6 voting membership of the task force. A majority of the voting 7 members of the task force constitutes a quorum. 8 5. Voting members of the task force shall receive 9 reimbursement for actual expenses incurred while serving 10 in their official capacity only if they are not eligible 11 for reimbursement by the organization that they represent. 12 Legislative members shall be paid the per diem and expenses 13 specified in section 2.10. 14 6. The task force shall submit a report regarding its 15 findings and its recommendations regarding potential actions 16 for the elimination and prevention of disparities in wages 17 between men and women and minorities and nonminorities to the 18 governor and the general assembly no later than December 18, 19 2020. 20 EXPLANATION 21 The inclusion of this explanation does not constitute agreement with 22 the explanation’s substance by the members of the general assembly. 23 This bill relates to wage discrimination under Code chapter 24 216, the Iowa civil rights Act of 1965, and state contracting, 25 and establishes an equal pay task force. 26 WAGE DISCRIMINATION IN STATE CONTRACTING. The bill requires 27 a nonstate party to a contract for goods or services with the 28 state to submit certain information regarding each of its 29 employees in a report to the department of administrative 30 services and the civil rights commission annually by January 1 31 for purposes of ensuring compliance with Code chapters 19B and 32 216. The required information is an employee’s total annual 33 compensation, occupation, sex, race, length of employment, 34 highest level of education attained, and years of experience 35 -5- LSB 1810YH (3) 88 je/rn 5/ 8

H.F. 146 relevant to the employee’s job. Names of employees shall not 1 be included in the report. 2 WAGE DISCRIMINATION IN EMPLOYMENT. The bill establishes 3 additional unfair or discriminatory practices relating to wages 4 under Code section 216.6A. Penalty and remedial provisions 5 for discriminatory employment practices, including penalties 6 specific to wage discrimination, are applicable under Code 7 chapter 216 to violations of these requirements. 8 The bill prohibits an employer from requiring that an 9 employee refrain from disclosing, discussing, or sharing 10 information about the amount of the employee’s wages, benefits, 11 or other compensation or from inquiring, discussing, or sharing 12 information about any other employee’s wages, benefits, or 13 other compensation as a condition of employment. The bill 14 prohibits an employer from requiring that an employee sign a 15 waiver or other document that requires an employee to refrain 16 from engaging in any of those activities as a condition of 17 employment. The bill prohibits an employer from discriminating 18 or retaliating against an employee for engaging in any of the 19 activities. 20 The bill prohibits an employer from seeking salary history 21 information from a potential employee as a condition of a job 22 interview or employment. This provision shall not be construed 23 to prohibit a prospective employer from asking a prospective 24 employee what salary level the prospective employee would 25 require in order to accept a job. 26 The bill prohibits an employer from releasing the salary 27 history of any current or former employee to any prospective 28 employer in response to a request as part of an interview or 29 hiring process without written authorization from such current 30 or former employee. 31 The bill prohibits an employer from publishing, listing, or 32 posting within the employer’s organization, with any employment 33 agency, job-listing service, or internet site, or in any other 34 public manner, an advertisement to recruit candidates for 35 -6- LSB 1810YH (3) 88 je/rn 6/ 8

H.F. 146 hire or independent contractors to fill a position within the 1 employer’s organization without including the minimum rate of 2 pay of the position. The rate of pay shall include overtime 3 and allowances, if any, claimed as part of the minimum wage, 4 including but not limited to tipped wages. The bill prohibits 5 an employer from paying a newly hired employee at less than the 6 rate of pay advertised for the employee’s position. 7 Under current law, an employer has an affirmative defense 8 to a claim under Code section 216.6A if a pay differential 9 is based on any other factor other than prohibited wage 10 discrimination. The bill provides that an employer has an 11 affirmative defense to a claim under Code section 216.6A if a 12 pay differential is based on any other bona fide factor other 13 than prohibited discrimination, including but not limited 14 to a bona fide factor relating to education, training, or 15 experience. However, this defense shall only apply if the 16 employer demonstrates that the factor is not based on or 17 derived from prohibited wage discrimination, is job related 18 with respect to the position in question, and is consistent 19 with a business necessity. The bill defines “business 20 necessity” as an overriding legitimate business purpose 21 such that the factor relied upon effectively fulfills the 22 business purpose it is supposed to serve. This affirmative 23 defense shall not apply if the employee demonstrates that an 24 alternative business practice exists that would serve the same 25 business purpose without producing the wage differential. 26 The bill provides that affirmative defenses to a claim under 27 Code section 216.6A are not applicable unless one or more of 28 the defenses account for the entire pay differential that is 29 the subject of the claim. 30 The bill also requires the civil rights commission to 31 establish a statewide, toll-free telephone hotline for the 32 purpose of receiving reports of violations of Code section 33 216.6A. 34 EQUAL PAY TASK FORCE. The bill creates an equal pay task 35 -7- LSB 1810YH (3) 88 je/rn 7/ 8

H.F. 146 force to study the extent of discriminatory wage disparities 1 in the public and private sectors, the factors that cause 2 such disparities, the consequences of such disparities, and 3 actions likely to lead to the elimination and prevention of 4 such disparities. 5 The bill establishes the membership of the task force, 6 including ex officio, nonvoting legislative members. The civil 7 rights commission shall provide staffing services for the task 8 force. 9 The task force shall submit a report regarding its findings 10 and its recommendations regarding potential actions for the 11 elimination and prevention of discriminatory wage disparities 12 to the governor and the general assembly no later than December 13 18, 2020. 14 -8- LSB 1810YH (3) 88 je/rn 8/ 8