Senate File 139 - IntroducedA Bill ForAn Act 1relating to wage discrimination under the Iowa civil
2rights Act of 1965, making penalties applicable, and
3establishing an equal pay task force.
4BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1   Section 1.  Section 216.6A, Code 2021, is amended by adding
2the following new subsection:
3   NEW SUBSECTION.  2A.  It shall be an unfair or discriminatory
4practice for any employer or agent of any employer to do any of
5the following:
   6a.  Require, as a condition of employment, that an employee
7refrain from disclosing, discussing, or sharing information
8about the amount of the employee’s wages, benefits, or other
9compensation or from inquiring, discussing, or sharing
10information about any other employee’s wages, benefits, or
11other compensation.
   12b.  Require, as a condition of employment, that an employee
13sign a waiver or other document that requires an employee to
14refrain from engaging in any of the activities permitted under
15paragraph “a”.
   16c.  Discriminate or retaliate against an employee for
17engaging in any of the activities permitted under paragraph “a”.
   18d.  Seek salary history information, including but not
19limited to information on compensation and benefits, from
20a potential employee as a condition of a job interview or
21employment. This paragraph shall not be construed to prohibit
22a prospective employer from asking a prospective employee what
23salary level the prospective employee would require in order to
24accept a job.
   25e.  Release the salary history, including but not limited
26to information on compensation and benefits, of any current
27or former employee to any prospective employer in response to
28a request as part of an interview or hiring process without
29written authorization from such current or former employee.
30   Sec. 2.  Section 216.6A, subsection 3, Code 2021, is amended
31to read as follows:
   323.  a.  It shall be an affirmative defense to a claim arising
33under this section if any of the following applies:
   34a.    (1)  Payment of wages is made pursuant to a seniority
35system.
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   1b.    (2)  Payment of wages is made pursuant to a merit system.
   2c.    (3)  Payment of wages is made pursuant to a system which
3measures earnings by quantity or quality of production.
   4d.    (4)  Pay differential is based on any other factor other
5than the age, race, creed, color, sex, sexual orientation,
6gender identity, national origin, religion, or disability
7of such employee, including but not limited to a bona fide
8factor relating to education, training, or experience
.
 9This affirmative defense shall apply only if the employer
10demonstrates that the factor is not based on or derived from
11a differential in compensation based on age, race, creed,
12color, sex, sexual orientation, gender identity, national
13origin, religion, or disability; is job-related with respect
14to the position in question; and is consistent with a business
15necessity. For purposes of this subparagraph, “business
16necessity”
means an overriding legitimate business purpose
17such that the factor relied upon effectively fulfills the
18business purpose it is supposed to serve. This affirmative
19defense shall not apply if the employee demonstrates that an
20alternative business practice exists that would serve the same
21business purpose without producing the wage differential.

   22b.  An affirmative defense under this subsection is not
23applicable unless one or more of the affirmative defenses
24listed in paragraph “a” account for the entire pay differential
25that is the subject of the claim.
26   Sec. 3.  EQUAL PAY TASK FORCE AND REPORT.
   271.  An equal pay task force is created. The task force shall
28consist of the following members:
   29a.  The director of the civil rights commission, or the
30director’s designee.
   31b.  The director of the department of human rights, or the
32director’s designee.
   33c.  The director of the department of workforce development,
34or the director’s designee.
   35d.  An employee of the labor market information division
-2-1of the department of workforce development designated by the
2director of the department.
   3e.  A representative of the association of business and
4industry, appointed by the president of the association.
   5f.  A member of a statewide labor organization appointed by
6the president of the organization.
   7g.  Two representatives of organizations whose objectives
8include the elimination of pay disparities between men and
9women and minorities and nonminorities and that have undertaken
10advocacy, educational, or legislative initiatives in pursuit
11of such objectives appointed by the director of the civil
12rights commission in consultation with the leadership of those
13organizations.
   14h.  Two representatives of postsecondary education
15institutions who have experience and expertise in the
16collection and analysis of data concerning pay disparities
17between men and women and minorities and nonminorities
18and whose research has been used in efforts to promote the
19elimination of such disparities appointed by the director of
20the civil rights commission in consultation with the leadership
21of those institutions.
   22i.  Four members of the general assembly serving as
23ex officio, nonvoting members, one representative to be
24appointed by the speaker of the house of representatives, one
25representative to be appointed by the minority leader of the
26house of representatives, one senator to be appointed by the
27majority leader of the senate, and one senator to be appointed
28by the minority leader of the senate.
   292.  Membership of the task force specified in subsection 1,
30paragraphs “d” through “h”, shall comply with section 69.16A.
   313.  The task force shall study all of the following:
   32a.  The extent of wage disparities, both in the public and
33private sectors, between men and women and between minorities
34and nonminorities.
   35b.  Factors that cause, or which tend to cause, such
-3-1disparities, including segregation between women and
2men and between minorities and nonminorities across and
3within occupations, payment of lower wages for work in
4female-dominated occupations, child-rearing responsibilities,
5the number of women who are heads of households, education,
6hours worked, and years on the job.
   7c.  The consequences of such disparities on the economy and
8affected families.
   9d.  Actions likely to lead to the elimination and prevention
10of such disparities.
   114.  The department of workforce development shall provide
12staffing services for the task force.
   135.  The voting members shall elect a chairperson from the
14voting membership of the task force. A majority of the voting
15members of the task force constitutes a quorum.
   166.  Voting members of the task force shall receive
17reimbursement for actual expenses incurred while serving
18in their official capacity only if they are not eligible
19for reimbursement by the organization that they represent.
20Legislative members shall be paid the per diem and expenses
21specified in section 2.10.
   227.  The task force shall submit a report regarding its
23findings and its recommendations regarding potential actions
24for the elimination and prevention of disparities in wages
25between men and women and minorities and nonminorities to the
26governor and the general assembly no later than December 16,
272022.
28EXPLANATION
29The inclusion of this explanation does not constitute agreement with
30the explanation’s substance by the members of the general assembly.
   31This bill relates to wage discrimination under Code chapter
32216, the Iowa civil rights Act of 1965, and establishes an
33equal pay task force.
   34WAGE DISCRIMINATION IN EMPLOYMENT. The bill establishes
35additional unfair or discriminatory practices relating to wages
-4-1under Code section 216.6A. Penalty and remedial provisions
2for discriminatory employment practices, including penalties
3specific to wage discrimination, are applicable under Code
4chapter 216 to violations of these requirements.
   5The bill prohibits an employer from requiring that an
6employee refrain from disclosing, discussing, or sharing
7information about the amount of the employee’s wages, benefits,
8or other compensation or from inquiring, discussing, or sharing
9information about any other employee’s wages, benefits, or
10other compensation as a condition of employment. The bill
11prohibits an employer from requiring that an employee sign a
12waiver or other document that requires an employee to refrain
13from engaging in any of those activities as a condition of
14employment. The bill prohibits an employer from discriminating
15or retaliating against an employee for engaging in any of the
16activities.
   17The bill prohibits an employer from seeking salary history
18information from a potential employee as a condition of a job
19interview or employment. This provision shall not be construed
20to prohibit a prospective employer from asking a prospective
21employee what salary level the prospective employee would
22require in order to accept a job.
   23The bill prohibits an employer from releasing the salary
24history of any current or former employee to any prospective
25employer in response to a request as part of an interview or
26hiring process without written authorization from such current
27or former employee.
   28Under current law, an employer has an affirmative defense
29to a claim under Code section 216.6A if a pay differential
30is based on any other factor other than prohibited wage
31discrimination. The bill provides that an employer has an
32affirmative defense to a claim under Code section 216.6A if a
33pay differential is based on any other bona fide factor other
34than prohibited discrimination, including but not limited
35to a bona fide factor relating to education, training, or
-5-1experience. However, this defense shall only apply if the
2employer demonstrates that the factor is not based on or
3derived from prohibited wage discrimination, is job-related
4with respect to the position in question, and is consistent
5with a business necessity. The bill defines “business
6necessity” as an overriding legitimate business purpose
7such that the factor relied upon effectively fulfills the
8business purpose it is supposed to serve. This affirmative
9defense shall not apply if the employee demonstrates that an
10alternative business practice exists that would serve the same
11business purpose without producing the wage differential.
   12The bill provides that affirmative defenses to a claim under
13Code section 216.6A are not applicable unless one or more of
14the defenses account for the entire pay differential that is
15the subject of the claim.
   16EQUAL PAY TASK FORCE. The bill creates an equal pay task
17force to study the extent of discriminatory wage disparities
18in the public and private sectors, the factors that cause
19such disparities, the consequences of such disparities, and
20actions likely to lead to the elimination and prevention of
21such disparities.
   22The bill establishes the membership of the task force,
23including ex officio, nonvoting legislative members. The
24department of workforce development shall provide staffing
25services for the task force.
   26The task force shall submit a report regarding its findings
27and its recommendations regarding potential actions for the
28elimination and prevention of discriminatory wage disparities
29to the governor and the general assembly no later than December
3016, 2022.
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