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House File 188 - IntroducedA Bill ForAn Act 1relating to wage discrimination under the Iowa civil
2rights Act of 1965 and in state contracting, making
3penalties applicable, and establishing an equal pay task
4force.
5BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1 Section 1. NEW SECTION. 19B.7A State contracts — race and
2gender compensation reporting.
31. For purposes of ensuring compliance with chapter 216
4and this chapter, a nonstate party to a contract for goods or
5services with the state shall submit the following information
6regarding each of its employees in a report to the department
7of administrative services and the civil rights commission
8annually by January 1:
9a. Total annual compensation.
10b. Occupation.
11c. Sex.
12d. Race.
13e. Length of employment.
14f. Highest level of education attained.
15g. Years of experience relevant to the employee’s job.
162. Names of employees shall not be included in the report.
17 Sec. 2. Section 216.6A, Code 2021, is amended by adding the
18following new subsections:
19 NEW SUBSECTION. 2A. It shall be an unfair or discriminatory
20practice for any employer or agent of any employer to do any of
21the following:
22a. Require, as a condition of employment, that an employee
23refrain from disclosing, discussing, or sharing information
24about the amount of the employee’s wages, benefits, or other
25compensation or from inquiring, discussing, or sharing
26information about any other employee’s wages, benefits, or
27other compensation.
28b. Require, as a condition of employment, that an employee
29sign a waiver or other document that requires an employee to
30refrain from engaging in any of the activities permitted under
31paragraph “a”.
32c. Discriminate or retaliate against an employee for
33engaging in any of the activities permitted under paragraph “a”.
34d. Seek salary history information, including but not
35limited to information on compensation and benefits, from
-1-1a potential employee as a condition of a job interview or
2employment. This paragraph shall not be construed to prohibit
3a prospective employer from asking a prospective employee what
4salary level the prospective employee would require in order to
5accept a job.
6e. Release the salary history, including but not limited
7to information on compensation and benefits, of any current
8or former employee to any prospective employer in response to
9a request as part of an interview or hiring process without
10written authorization from such current or former employee.
11f. Publish, list, or post within the employer’s
12organization, with any employment agency, job-listing
13service, or internet site, or in any other public manner, an
14advertisement to recruit candidates for hire or independent
15contractors to fill a position within the employer’s
16organization without including the minimum rate of pay of the
17position. The rate of pay may be by the hour, shift, day, week,
18salary, piece, commission, or other applicable rate. The rate
19of pay shall include overtime and allowances, if any, claimed
20as part of the minimum wage, including but not limited to
21tipped wages.
22g. Pay a newly hired employee at less than the rate of pay
23advertised for the employee’s position under paragraph “f”.
24 NEW SUBSECTION. 5. The commission shall establish a
25statewide, toll-free telephone hotline for the purpose of
26receiving reports of violations of this section.
27 Sec. 3. Section 216.6A, subsection 3, Code 2021, is amended
28to read as follows:
293. a. It shall be an affirmative defense to a claim arising
30under this section if any of the following applies:
31a. (1) Payment of wages is made pursuant to a seniority
32system.
33b. (2) Payment of wages is made pursuant to a merit system.
34c. (3) Payment of wages is made pursuant to a system which
35measures earnings by quantity or quality of production.
-2- 1d. (4) Pay differential is based on any other bona fide
2 factor other than the age, race, creed, color, sex, sexual
3orientation, gender identity, national origin, religion,
4or disability of such employee, including but not limited
5to a bona fide factor relating to education, training, or
6experience. This defense shall apply only if the employer
7demonstrates that the factor is not based on or derived from
8a differential in compensation based on age, race, creed,
9color, sex, sexual orientation, gender identity, national
10origin, religion, or disability; is job-related with respect
11to the position in question; and is consistent with a business
12necessity. For purposes of this subparagraph, “business
13necessity” means an overriding legitimate business purpose
14such that the factor relied upon effectively fulfills the
15business purpose it is supposed to serve. This affirmative
16defense shall not apply if the employee demonstrates that an
17alternative business practice exists that would serve the same
18business purpose without producing the wage differential.
19b. An affirmative defense under this subsection is not
20applicable unless one or more of the defenses listed in
21paragraph “a” account for the entire pay differential that is
22the subject of the claim.
23 Sec. 4. EQUAL PAY TASK FORCE AND REPORT.
241. An equal pay task force is created. The task force shall
25consist of the following members:
26a. The director of the civil rights commission, or the
27director’s designee.
28b. The director of the department of human rights, or the
29director’s designee.
30c. An employee of the labor market information division
31of the department of workforce development designated by the
32director of the department.
33d. A representative of the association of business and
34industry, appointed by the president of the association.
35e. A member of a statewide labor organization appointed by
-3-1the president of the organization.
2f. Two representatives of organizations whose objectives
3include the elimination of pay disparities between men and
4women and minorities and nonminorities and that have undertaken
5advocacy, educational, or legislative initiatives in pursuit
6of such objectives appointed by the director of the civil
7rights commission in consultation with the leadership of those
8organizations.
9g. Two representatives of postsecondary education
10institutions who have experience and expertise in the
11collection and analysis of data concerning pay disparities
12between men and women and minorities and nonminorities
13and whose research has been used in efforts to promote the
14elimination of such disparities appointed by the director of
15the civil rights commission in consultation with the leadership
16of those institutions.
17h. Four members of the general assembly serving as
18ex officio, nonvoting members, one representative to be
19appointed by the speaker of the house of representatives, one
20representative to be appointed by the minority leader of the
21house of representatives, one senator to be appointed by the
22majority leader of the senate, and one senator to be appointed
23by the minority leader of the senate.
242. The task force shall study all of the following:
25a. The extent of wage disparities, both in the public and
26private sectors, between men and women and between minorities
27and nonminorities.
28b. Factors that cause, or which tend to cause, such
29disparities, including segregation between women and
30men and between minorities and nonminorities across and
31within occupations, payment of lower wages for work in
32female-dominated occupations, child-rearing responsibilities,
33the number of women who are heads of households, education,
34hours worked, and years on the job.
35c. The consequences of such disparities on the economy and
-4-1affected families.
2d. Actions likely to lead to the elimination and prevention
3of such disparities.
43. The civil rights commission shall provide staffing
5services for the task force.
64. The voting members shall elect a chairperson from the
7voting membership of the task force. A majority of the voting
8members of the task force constitutes a quorum.
95. Voting members of the task force shall receive
10reimbursement for actual expenses incurred while serving
11in their official capacity only if they are not eligible
12for reimbursement by the organization that they represent.
13Legislative members shall be paid the per diem and expenses
14specified in section 2.10.
156. The task force shall submit a report regarding its
16findings and its recommendations regarding potential actions
17for the elimination and prevention of disparities in wages
18between men and women and minorities and nonminorities to the
19governor and the general assembly no later than December 18,
202022.
21EXPLANATION
22The inclusion of this explanation does not constitute agreement with
23the explanation’s substance by the members of the general assembly.
24This bill relates to wage discrimination under Iowa Code
25chapter 216, the Iowa civil rights Act of 1965, and state
26contracting, and establishes an equal pay task force.
27WAGE DISCRIMINATION IN STATE CONTRACTING. The bill requires
28a nonstate party to a contract for goods or services with the
29state to submit certain information regarding each of its
30employees in a report to the department of administrative
31services and the civil rights commission annually by January 1
32for purposes of ensuring compliance with Code chapters 19B and
33216. The required information is an employee’s total annual
34compensation, occupation, sex, race, length of employment,
35highest level of education attained, and years of experience
-5-1relevant to the employee’s job. Names of employees shall not
2be included in the report.
3WAGE DISCRIMINATION IN EMPLOYMENT. The bill establishes
4additional unfair or discriminatory practices relating to wages
5under Code section 216.6A. Penalty and remedial provisions
6for discriminatory employment practices, including penalties
7specific to wage discrimination, are applicable under Code
8chapter 216 to violations of these requirements.
9The bill prohibits an employer from requiring that an
10employee refrain from disclosing, discussing, or sharing
11information about the amount of the employee’s wages, benefits,
12or other compensation or from inquiring, discussing, or sharing
13information about any other employee’s wages, benefits, or
14other compensation as a condition of employment. The bill
15prohibits an employer from requiring that an employee sign a
16waiver or other document that requires an employee to refrain
17from engaging in any of those activities as a condition of
18employment. The bill prohibits an employer from discriminating
19or retaliating against an employee for engaging in any of the
20activities.
21The bill prohibits an employer from seeking salary history
22information from a potential employee as a condition of a job
23interview or employment. This provision shall not be construed
24to prohibit a prospective employer from asking a prospective
25employee what salary level the prospective employee would
26require in order to accept a job.
27The bill prohibits an employer from releasing the salary
28history of any current or former employee to any prospective
29employer in response to a request as part of an interview or
30hiring process without written authorization from such current
31or former employee.
32The bill prohibits an employer from publishing, listing, or
33posting within the employer’s organization, with any employment
34agency, job-listing service, or internet site, or in any other
35public manner, an advertisement to recruit candidates for
-6-1hire or independent contractors to fill a position within the
2employer’s organization without including the minimum rate of
3pay of the position. The rate of pay shall include overtime
4and allowances, if any, claimed as part of the minimum wage,
5including but not limited to tipped wages. The bill prohibits
6an employer from paying a newly hired employee at less than the
7rate of pay advertised for the employee’s position.
8Under current law, an employer has an affirmative defense
9to a claim under Code section 216.6A if a pay differential
10is based on any other factor other than prohibited wage
11discrimination. The bill provides that an employer has an
12affirmative defense to a claim under Code section 216.6A if a
13pay differential is based on any other bona fide factor other
14than prohibited discrimination, including but not limited
15to a bona fide factor relating to education, training, or
16experience. However, this defense shall only apply if the
17employer demonstrates that the factor is not based on or
18derived from prohibited wage discrimination, is job related
19with respect to the position in question, and is consistent
20with a business necessity. The bill defines “business
21necessity” as an overriding legitimate business purpose
22such that the factor relied upon effectively fulfills the
23business purpose it is supposed to serve. This affirmative
24defense shall not apply if the employee demonstrates that an
25alternative business practice exists that would serve the same
26business purpose without producing the wage differential.
27The bill provides that affirmative defenses to a claim under
28Code section 216.6A are not applicable unless one or more of
29the defenses account for the entire pay differential that is
30the subject of the claim.
31The bill also requires the civil rights commission to
32establish a statewide, toll-free telephone hotline for the
33purpose of receiving reports of violations of Code section
34216.6A.
35EQUAL PAY TASK FORCE. The bill creates an equal pay task
-7-1force to study the extent of discriminatory wage disparities
2in the public and private sectors, the factors that cause
3such disparities, the consequences of such disparities, and
4actions likely to lead to the elimination and prevention of
5such disparities.
6The bill establishes the membership of the task force,
7including ex officio, nonvoting legislative members. The civil
8rights commission shall provide staffing services for the task
9force.
10The task force shall submit a report regarding its findings
11and its recommendations regarding potential actions for the
12elimination and prevention of discriminatory wage disparities
13to the governor and the general assembly no later than December
1418, 2022.
-8-cm/rn
2rights Act of 1965 and in state contracting, making
3penalties applicable, and establishing an equal pay task
4force.
5BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1 Section 1. NEW SECTION. 19B.7A State contracts — race and
2gender compensation reporting.
31. For purposes of ensuring compliance with chapter 216
4and this chapter, a nonstate party to a contract for goods or
5services with the state shall submit the following information
6regarding each of its employees in a report to the department
7of administrative services and the civil rights commission
8annually by January 1:
9a. Total annual compensation.
10b. Occupation.
11c. Sex.
12d. Race.
13e. Length of employment.
14f. Highest level of education attained.
15g. Years of experience relevant to the employee’s job.
162. Names of employees shall not be included in the report.
17 Sec. 2. Section 216.6A, Code 2021, is amended by adding the
18following new subsections:
19 NEW SUBSECTION. 2A. It shall be an unfair or discriminatory
20practice for any employer or agent of any employer to do any of
21the following:
22a. Require, as a condition of employment, that an employee
23refrain from disclosing, discussing, or sharing information
24about the amount of the employee’s wages, benefits, or other
25compensation or from inquiring, discussing, or sharing
26information about any other employee’s wages, benefits, or
27other compensation.
28b. Require, as a condition of employment, that an employee
29sign a waiver or other document that requires an employee to
30refrain from engaging in any of the activities permitted under
31paragraph “a”.
32c. Discriminate or retaliate against an employee for
33engaging in any of the activities permitted under paragraph “a”.
34d. Seek salary history information, including but not
35limited to information on compensation and benefits, from
-1-1a potential employee as a condition of a job interview or
2employment. This paragraph shall not be construed to prohibit
3a prospective employer from asking a prospective employee what
4salary level the prospective employee would require in order to
5accept a job.
6e. Release the salary history, including but not limited
7to information on compensation and benefits, of any current
8or former employee to any prospective employer in response to
9a request as part of an interview or hiring process without
10written authorization from such current or former employee.
11f. Publish, list, or post within the employer’s
12organization, with any employment agency, job-listing
13service, or internet site, or in any other public manner, an
14advertisement to recruit candidates for hire or independent
15contractors to fill a position within the employer’s
16organization without including the minimum rate of pay of the
17position. The rate of pay may be by the hour, shift, day, week,
18salary, piece, commission, or other applicable rate. The rate
19of pay shall include overtime and allowances, if any, claimed
20as part of the minimum wage, including but not limited to
21tipped wages.
22g. Pay a newly hired employee at less than the rate of pay
23advertised for the employee’s position under paragraph “f”.
24 NEW SUBSECTION. 5. The commission shall establish a
25statewide, toll-free telephone hotline for the purpose of
26receiving reports of violations of this section.
27 Sec. 3. Section 216.6A, subsection 3, Code 2021, is amended
28to read as follows:
293. a. It shall be an affirmative defense to a claim arising
30under this section if any of the following applies:
31a. (1) Payment of wages is made pursuant to a seniority
32system.
33b. (2) Payment of wages is made pursuant to a merit system.
34c. (3) Payment of wages is made pursuant to a system which
35measures earnings by quantity or quality of production.
-2- 1d. (4) Pay differential is based on any other bona fide
2 factor other than the age, race, creed, color, sex, sexual
3orientation, gender identity, national origin, religion,
4or disability of such employee, including but not limited
5to a bona fide factor relating to education, training, or
6experience. This defense shall apply only if the employer
7demonstrates that the factor is not based on or derived from
8a differential in compensation based on age, race, creed,
9color, sex, sexual orientation, gender identity, national
10origin, religion, or disability; is job-related with respect
11to the position in question; and is consistent with a business
12necessity. For purposes of this subparagraph, “business
13necessity” means an overriding legitimate business purpose
14such that the factor relied upon effectively fulfills the
15business purpose it is supposed to serve. This affirmative
16defense shall not apply if the employee demonstrates that an
17alternative business practice exists that would serve the same
18business purpose without producing the wage differential.
19b. An affirmative defense under this subsection is not
20applicable unless one or more of the defenses listed in
21paragraph “a” account for the entire pay differential that is
22the subject of the claim.
23 Sec. 4. EQUAL PAY TASK FORCE AND REPORT.
241. An equal pay task force is created. The task force shall
25consist of the following members:
26a. The director of the civil rights commission, or the
27director’s designee.
28b. The director of the department of human rights, or the
29director’s designee.
30c. An employee of the labor market information division
31of the department of workforce development designated by the
32director of the department.
33d. A representative of the association of business and
34industry, appointed by the president of the association.
35e. A member of a statewide labor organization appointed by
-3-1the president of the organization.
2f. Two representatives of organizations whose objectives
3include the elimination of pay disparities between men and
4women and minorities and nonminorities and that have undertaken
5advocacy, educational, or legislative initiatives in pursuit
6of such objectives appointed by the director of the civil
7rights commission in consultation with the leadership of those
8organizations.
9g. Two representatives of postsecondary education
10institutions who have experience and expertise in the
11collection and analysis of data concerning pay disparities
12between men and women and minorities and nonminorities
13and whose research has been used in efforts to promote the
14elimination of such disparities appointed by the director of
15the civil rights commission in consultation with the leadership
16of those institutions.
17h. Four members of the general assembly serving as
18ex officio, nonvoting members, one representative to be
19appointed by the speaker of the house of representatives, one
20representative to be appointed by the minority leader of the
21house of representatives, one senator to be appointed by the
22majority leader of the senate, and one senator to be appointed
23by the minority leader of the senate.
242. The task force shall study all of the following:
25a. The extent of wage disparities, both in the public and
26private sectors, between men and women and between minorities
27and nonminorities.
28b. Factors that cause, or which tend to cause, such
29disparities, including segregation between women and
30men and between minorities and nonminorities across and
31within occupations, payment of lower wages for work in
32female-dominated occupations, child-rearing responsibilities,
33the number of women who are heads of households, education,
34hours worked, and years on the job.
35c. The consequences of such disparities on the economy and
-4-1affected families.
2d. Actions likely to lead to the elimination and prevention
3of such disparities.
43. The civil rights commission shall provide staffing
5services for the task force.
64. The voting members shall elect a chairperson from the
7voting membership of the task force. A majority of the voting
8members of the task force constitutes a quorum.
95. Voting members of the task force shall receive
10reimbursement for actual expenses incurred while serving
11in their official capacity only if they are not eligible
12for reimbursement by the organization that they represent.
13Legislative members shall be paid the per diem and expenses
14specified in section 2.10.
156. The task force shall submit a report regarding its
16findings and its recommendations regarding potential actions
17for the elimination and prevention of disparities in wages
18between men and women and minorities and nonminorities to the
19governor and the general assembly no later than December 18,
202022.
21EXPLANATION
22The inclusion of this explanation does not constitute agreement with
23the explanation’s substance by the members of the general assembly.
24This bill relates to wage discrimination under Iowa Code
25chapter 216, the Iowa civil rights Act of 1965, and state
26contracting, and establishes an equal pay task force.
27WAGE DISCRIMINATION IN STATE CONTRACTING. The bill requires
28a nonstate party to a contract for goods or services with the
29state to submit certain information regarding each of its
30employees in a report to the department of administrative
31services and the civil rights commission annually by January 1
32for purposes of ensuring compliance with Code chapters 19B and
33216. The required information is an employee’s total annual
34compensation, occupation, sex, race, length of employment,
35highest level of education attained, and years of experience
-5-1relevant to the employee’s job. Names of employees shall not
2be included in the report.
3WAGE DISCRIMINATION IN EMPLOYMENT. The bill establishes
4additional unfair or discriminatory practices relating to wages
5under Code section 216.6A. Penalty and remedial provisions
6for discriminatory employment practices, including penalties
7specific to wage discrimination, are applicable under Code
8chapter 216 to violations of these requirements.
9The bill prohibits an employer from requiring that an
10employee refrain from disclosing, discussing, or sharing
11information about the amount of the employee’s wages, benefits,
12or other compensation or from inquiring, discussing, or sharing
13information about any other employee’s wages, benefits, or
14other compensation as a condition of employment. The bill
15prohibits an employer from requiring that an employee sign a
16waiver or other document that requires an employee to refrain
17from engaging in any of those activities as a condition of
18employment. The bill prohibits an employer from discriminating
19or retaliating against an employee for engaging in any of the
20activities.
21The bill prohibits an employer from seeking salary history
22information from a potential employee as a condition of a job
23interview or employment. This provision shall not be construed
24to prohibit a prospective employer from asking a prospective
25employee what salary level the prospective employee would
26require in order to accept a job.
27The bill prohibits an employer from releasing the salary
28history of any current or former employee to any prospective
29employer in response to a request as part of an interview or
30hiring process without written authorization from such current
31or former employee.
32The bill prohibits an employer from publishing, listing, or
33posting within the employer’s organization, with any employment
34agency, job-listing service, or internet site, or in any other
35public manner, an advertisement to recruit candidates for
-6-1hire or independent contractors to fill a position within the
2employer’s organization without including the minimum rate of
3pay of the position. The rate of pay shall include overtime
4and allowances, if any, claimed as part of the minimum wage,
5including but not limited to tipped wages. The bill prohibits
6an employer from paying a newly hired employee at less than the
7rate of pay advertised for the employee’s position.
8Under current law, an employer has an affirmative defense
9to a claim under Code section 216.6A if a pay differential
10is based on any other factor other than prohibited wage
11discrimination. The bill provides that an employer has an
12affirmative defense to a claim under Code section 216.6A if a
13pay differential is based on any other bona fide factor other
14than prohibited discrimination, including but not limited
15to a bona fide factor relating to education, training, or
16experience. However, this defense shall only apply if the
17employer demonstrates that the factor is not based on or
18derived from prohibited wage discrimination, is job related
19with respect to the position in question, and is consistent
20with a business necessity. The bill defines “business
21necessity” as an overriding legitimate business purpose
22such that the factor relied upon effectively fulfills the
23business purpose it is supposed to serve. This affirmative
24defense shall not apply if the employee demonstrates that an
25alternative business practice exists that would serve the same
26business purpose without producing the wage differential.
27The bill provides that affirmative defenses to a claim under
28Code section 216.6A are not applicable unless one or more of
29the defenses account for the entire pay differential that is
30the subject of the claim.
31The bill also requires the civil rights commission to
32establish a statewide, toll-free telephone hotline for the
33purpose of receiving reports of violations of Code section
34216.6A.
35EQUAL PAY TASK FORCE. The bill creates an equal pay task
-7-1force to study the extent of discriminatory wage disparities
2in the public and private sectors, the factors that cause
3such disparities, the consequences of such disparities, and
4actions likely to lead to the elimination and prevention of
5such disparities.
6The bill establishes the membership of the task force,
7including ex officio, nonvoting legislative members. The civil
8rights commission shall provide staffing services for the task
9force.
10The task force shall submit a report regarding its findings
11and its recommendations regarding potential actions for the
12elimination and prevention of discriminatory wage disparities
13to the governor and the general assembly no later than December
1418, 2022.
-8-cm/rn