Senate File 396 - Introduced SENATE FILE 396 BY PETERSEN , TRONE GARRIOTT , WEINER , JOCHUM , DONAHUE , CELSI , WINCKLER , DOTZLER , GIDDENS , BISIGNANO , KNOX , BOULTON , WAHLS , BENNETT , QUIRMBACH , and T. TAYLOR A BILL FOR An Act relating to wage discrimination under the Iowa civil 1 rights Act of 1965, making penalties applicable, and 2 establishing an equal pay task force. 3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 4 TLSB 2172XS (3) 90 je/rn
S.F. 396 Section 1. Section 216.6A, Code 2023, is amended by adding 1 the following new subsection: 2 NEW SUBSECTION . 2A. It shall be an unfair or discriminatory 3 practice for any employer or agent of any employer to do any of 4 the following: 5 a. Require, as a condition of employment, that an employee 6 refrain from disclosing, discussing, or sharing information 7 about the amount of the employee’s wages, benefits, or other 8 compensation or from inquiring, discussing, or sharing 9 information about any other employee’s wages, benefits, or 10 other compensation. 11 b. Require, as a condition of employment, that an employee 12 sign a waiver or other document that requires an employee to 13 refrain from engaging in any of the activities permitted under 14 paragraph “a” . 15 c. Discriminate or retaliate against an employee for 16 engaging in any of the activities permitted under paragraph “a” . 17 d. Seek salary history information, including but not 18 limited to information on compensation and benefits, from 19 a potential employee as a condition of a job interview or 20 employment. This paragraph shall not be construed to prohibit 21 a prospective employer from asking a prospective employee what 22 salary level the prospective employee would require in order to 23 accept a job. 24 e. Release the salary history, including but not limited 25 to information on compensation and benefits, of any current 26 or former employee to any prospective employer in response to 27 a request as part of an interview or hiring process without 28 written authorization from such current or former employee. 29 f. Publish, list, or post within the employer’s 30 organization, with any employment agency, job-listing 31 service, or internet site, or in any other public manner, an 32 advertisement to recruit candidates for hire or independent 33 contractors to fill a position within the employer’s 34 organization without including the minimum rate of pay of the 35 -1- LSB 2172XS (3) 90 je/rn 1/ 7
S.F. 396 position. The rate of pay may be by the hour, shift, day, week, 1 salary, piece, commission, or other applicable rate. The rate 2 of pay shall include overtime and allowances, if any, claimed 3 as part of the minimum wage, including but not limited to 4 tipped wages. 5 g. Pay a newly hired employee at less than the rate of pay 6 advertised for the employee’s position under paragraph “f” . 7 Sec. 2. Section 216.6A, subsection 3, Code 2023, is amended 8 to read as follows: 9 3. a. It shall be an affirmative defense to a claim arising 10 under this section if any of the following applies: 11 a. (1) Payment of wages is made pursuant to a seniority 12 system. 13 b. (2) Payment of wages is made pursuant to a merit system. 14 c. (3) Payment of wages is made pursuant to a system which 15 measures earnings by quantity or quality of production. 16 d. (4) Pay differential is based on any other bona fide 17 factor other than the age, race, creed, color, sex, sexual 18 orientation, gender identity, national origin, religion, 19 or disability of such employee , including but not limited 20 to a bona fide factor relating to education, training, or 21 experience . This defense shall apply only if the employer 22 demonstrates that the factor is not based on or derived from 23 a differential in compensation based on age, race, creed, 24 color, sex, sexual orientation, gender identity, national 25 origin, religion, or disability; is job related with respect 26 to the position in question; and is consistent with a business 27 necessity. For purposes of this subparagraph, “business 28 necessity” means an overriding legitimate business purpose 29 such that the factor relied upon effectively fulfills the 30 business purpose it is supposed to serve. This affirmative 31 defense shall not apply if the employee demonstrates that an 32 alternative business practice exists that would serve the same 33 business purpose without producing the wage differential. 34 b. An affirmative defense under this subsection is not 35 -2- LSB 2172XS (3) 90 je/rn 2/ 7
S.F. 396 applicable unless one or more of the defenses listed in 1 paragraph “a” account for the entire pay differential that is 2 the subject of the claim. 3 Sec. 3. EQUAL PAY TASK FORCE AND REPORT. 4 1. An equal pay task force is created. The task force shall 5 consist of the following members: 6 a. The director of the civil rights commission, or the 7 director’s designee. 8 b. The director of the department of human rights, or the 9 director’s designee. 10 c. An employee of the labor market information division 11 of the department of workforce development designated by the 12 director of the department. 13 d. A representative of the association of business and 14 industry, appointed by the president of the association. 15 e. A member of a statewide labor organization appointed by 16 the president of the organization. 17 f. Two representatives of organizations whose objectives 18 include the elimination of pay disparities between men and 19 women and minorities and nonminorities and that have undertaken 20 advocacy, educational, or legislative initiatives in pursuit 21 of such objectives appointed by the director of the civil 22 rights commission in consultation with the leadership of those 23 organizations. 24 g. Two representatives of postsecondary education 25 institutions who have experience and expertise in the 26 collection and analysis of data concerning pay disparities 27 between men and women and minorities and nonminorities 28 and whose research has been used in efforts to promote the 29 elimination of such disparities appointed by the director of 30 the civil rights commission in consultation with the leadership 31 of those institutions. 32 h. Four members of the general assembly serving as 33 ex officio, nonvoting members, one representative to be 34 appointed by the speaker of the house of representatives, one 35 -3- LSB 2172XS (3) 90 je/rn 3/ 7
S.F. 396 representative to be appointed by the minority leader of the 1 house of representatives, one senator to be appointed by the 2 majority leader of the senate, and one senator to be appointed 3 by the minority leader of the senate. 4 2. The task force shall study all of the following: 5 a. The extent of wage disparities, both in the public and 6 private sectors, between men and women and between minorities 7 and nonminorities. 8 b. Factors that cause, or which tend to cause, such 9 disparities, including segregation between women and 10 men and between minorities and nonminorities across and 11 within occupations, payment of lower wages for work in 12 female-dominated occupations, child-rearing responsibilities, 13 the number of women who are heads of households, education, 14 hours worked, and years on the job. 15 c. The consequences of such disparities on the economy and 16 affected families. 17 d. Actions likely to lead to the elimination and prevention 18 of such disparities. 19 3. The civil rights commission shall provide staffing 20 services for the task force. 21 4. The voting members shall elect a chairperson from the 22 voting membership of the task force. A majority of the voting 23 members of the task force constitutes a quorum. 24 5. Voting members of the task force shall receive 25 reimbursement for actual expenses incurred while serving 26 in their official capacity only if they are not eligible 27 for reimbursement by the organization that they represent. 28 Legislative members shall be paid the per diem and expenses 29 specified in section 2.10. 30 6. The task force shall submit a report regarding its 31 findings and its recommendations regarding potential actions 32 for the elimination and prevention of disparities in wages 33 between men and women and minorities and nonminorities to the 34 governor and the general assembly no later than December 29, 35 -4- LSB 2172XS (3) 90 je/rn 4/ 7
S.F. 396 2023. 1 EXPLANATION 2 The inclusion of this explanation does not constitute agreement with 3 the explanation’s substance by the members of the general assembly. 4 This bill relates to wage discrimination under Iowa Code 5 chapter 216, the Iowa civil rights Act of 1965, and establishes 6 an equal pay task force. 7 WAGE DISCRIMINATION IN EMPLOYMENT. The bill establishes 8 additional unfair or discriminatory practices relating to wages 9 under Code section 216.6A. Penalty and remedial provisions 10 for discriminatory employment practices, including penalties 11 specific to wage discrimination, are applicable under Code 12 chapter 216 to violations of these requirements. 13 The bill prohibits an employer from requiring that an 14 employee refrain from disclosing, discussing, or sharing 15 information about the amount of the employee’s wages, benefits, 16 or other compensation or from inquiring, discussing, or sharing 17 information about any other employee’s wages, benefits, or 18 other compensation as a condition of employment. The bill 19 prohibits an employer from requiring that an employee sign a 20 waiver or other document that requires an employee to refrain 21 from engaging in any of those activities as a condition of 22 employment. The bill prohibits an employer from discriminating 23 or retaliating against an employee for engaging in any of the 24 activities. 25 The bill prohibits an employer from seeking salary history 26 information from a potential employee as a condition of a job 27 interview or employment. This provision shall not be construed 28 to prohibit a prospective employer from asking a prospective 29 employee what salary level the prospective employee would 30 require in order to accept a job. 31 The bill prohibits an employer from releasing the salary 32 history of any current or former employee to any prospective 33 employer in response to a request as part of an interview or 34 hiring process without written authorization from such current 35 -5- LSB 2172XS (3) 90 je/rn 5/ 7
S.F. 396 or former employee. 1 The bill prohibits an employer from publishing, listing, or 2 posting within the employer’s organization, with any employment 3 agency, job-listing service, or internet site, or in any other 4 public manner, an advertisement to recruit candidates for 5 hire or independent contractors to fill a position within the 6 employer’s organization without including the minimum rate of 7 pay of the position. The rate of pay shall include overtime 8 and allowances, if any, claimed as part of the minimum wage, 9 including but not limited to tipped wages. The bill prohibits 10 an employer from paying a newly hired employee at less than the 11 rate of pay advertised for the employee’s position. 12 Under current law, an employer has an affirmative defense 13 to a claim under Code section 216.6A if a pay differential 14 is based on any other factor other than prohibited wage 15 discrimination. The bill provides that an employer has an 16 affirmative defense to a claim under Code section 216.6A if a 17 pay differential is based on any other bona fide factor other 18 than prohibited discrimination, including but not limited 19 to a bona fide factor relating to education, training, or 20 experience. However, this defense shall only apply if the 21 employer demonstrates that the factor is not based on or 22 derived from prohibited wage discrimination, is job related 23 with respect to the position in question, and is consistent 24 with a business necessity. The bill defines “business 25 necessity” as an overriding legitimate business purpose 26 such that the factor relied upon effectively fulfills the 27 business purpose it is supposed to serve. This affirmative 28 defense shall not apply if the employee demonstrates that an 29 alternative business practice exists that would serve the same 30 business purpose without producing the wage differential. 31 The bill provides that affirmative defenses to a claim under 32 Code section 216.6A are not applicable unless one or more of 33 the defenses account for the entire pay differential that is 34 the subject of the claim. 35 -6- LSB 2172XS (3) 90 je/rn 6/ 7
S.F. 396 EQUAL PAY TASK FORCE. The bill creates an equal pay task 1 force to study the extent of discriminatory wage disparities 2 in the public and private sectors, the factors that cause 3 such disparities, the consequences of such disparities, and 4 actions likely to lead to the elimination and prevention of 5 such disparities. 6 The bill establishes the membership of the task force, 7 including ex officio, nonvoting legislative members. The civil 8 rights commission shall provide staffing services for the task 9 force. 10 The task force shall submit a report regarding its findings 11 and its recommendations regarding potential actions for the 12 elimination and prevention of discriminatory wage disparities 13 to the governor and the general assembly no later than December 14 29, 2023. 15 -7- LSB 2172XS (3) 90 je/rn 7/ 7