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Senate File 340 - 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 2017, 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.
30f. Publish, list, or post within the employer’s
31organization, with any employment agency, job-listing
32service, or internet site, or in any other public manner, an
33advertisement to recruit candidates for hire or independent
34contractors to fill a position within the employer’s
35organization without including the minimum rate of pay of the
-1-1position. The rate of pay may be by the hour, shift, day, week,
2salary, piece, commission, or other applicable rate. The rate
3of pay shall include overtime and allowances, if any, claimed
4as part of the minimum wage, including but not limited to
5tipped wages.
6g. Pay a newly hired employee at less than the rate of pay
7advertised for the employee’s position under paragraph “f”.
8 Sec. 2. Section 216.6A, subsection 3, Code 2017, is amended
9to read as follows:
103. a. It shall be an affirmative defense to a claim arising
11under this section if any of the following applies:
12a. (1) Payment of wages is made pursuant to a seniority
13system.
14b. (2) Payment of wages is made pursuant to a merit system.
15c. (3) Payment of wages is made pursuant to a system which
16measures earnings by quantity or quality of production.
17d. (4) Pay differential is based on any other factor other
18than the age, race, creed, color, sex, sexual orientation,
19gender identity, national origin, religion, or disability
20of such employee, including but not limited to a bona fide
21factor relating to education, training, or experience.
22This affirmative defense shall apply only if the employer
23demonstrates that the factor is not based on or derived from
24a differential in compensation based on age, race, creed,
25color, sex, sexual orientation, gender identity, national
26origin, religion, or disability; is job related with respect
27to the position in question; and is consistent with a business
28necessity. For purposes of this subparagraph, “business
29necessity” means an overriding legitimate business purpose
30such that the factor relied upon effectively fulfills the
31business purpose it is supposed to serve. This affirmative
32defense shall not apply if the employee demonstrates that an
33alternative business practice exists that would serve the same
34business purpose without producing the wage differential.
35b. An affirmative defense under this subsection is not
-2-1applicable unless one or more of the affirmative defenses
2listed in paragraph “a” account for the entire pay differential
3that is the subject of the claim.
4 Sec. 3. EQUAL PAY TASK FORCE AND REPORT.
51. An equal pay task force is created. The task force shall
6consist of the following members:
7a. The director of the civil rights commission, or the
8director’s designee.
9b. The director of the department of human rights, or the
10director’s designee.
11c. The director of the department of workforce development,
12or the director’s designee.
13d. An employee of the labor market information division
14of the department of workforce development designated by the
15director of the department.
16e. A representative of the association of business and
17industry, appointed by the president of the association.
18f. A member of a statewide labor organization appointed by
19the president of the organization.
20g. Two representatives of organizations whose objectives
21include the elimination of pay disparities between men and
22women and minorities and nonminorities and that have undertaken
23advocacy, educational, or legislative initiatives in pursuit
24of such objectives appointed by the director of the civil
25rights commission in consultation with the leadership of those
26organizations.
27h. Two representatives of postsecondary education
28institutions who have experience and expertise in the
29collection and analysis of data concerning pay disparities
30between men and women and minorities and nonminorities
31and whose research has been used in efforts to promote the
32elimination of such disparities appointed by the director of
33the civil rights commission in consultation with the leadership
34of those institutions.
35i. Four members of the general assembly serving as
-3-1ex officio, nonvoting members, one representative to be
2appointed by the speaker of the house of representatives, one
3representative to be appointed by the minority leader of the
4house of representatives, one senator to be appointed by the
5majority leader of the senate, and one senator to be appointed
6by the minority leader of the senate.
72. Membership of the task force specified in subsection 1,
8paragraphs “d” through “h”, shall comply with section 69.16A.
93. The task force shall study all of the following:
10a. The extent of wage disparities, both in the public and
11private sectors, between men and women and between minorities
12and nonminorities.
13b. Factors that cause, or which tend to cause, such
14disparities, including segregation between women and
15men and between minorities and nonminorities across and
16within occupations, payment of lower wages for work in
17female-dominated occupations, child-rearing responsibilities,
18the number of women who are heads of households, education,
19hours worked, and years on the job.
20c. The consequences of such disparities on the economy and
21affected families.
22d. Actions likely to lead to the elimination and prevention
23of such disparities.
244. The department of workforce development shall provide
25staffing services for the task force.
265. The voting members shall elect a chairperson from the
27voting membership of the task force. A majority of the voting
28members of the task force constitutes a quorum.
296. Voting members of the task force shall receive
30reimbursement for actual expenses incurred while serving
31in their official capacity only if they are not eligible
32for reimbursement by the organization that they represent.
33Legislative members shall be paid the per diem and expenses
34specified in section 2.10.
357. The task force shall submit a report regarding its
-4-1findings and its recommendations regarding potential actions
2for the elimination and prevention of disparities in wages
3between men and women and minorities and nonminorities to the
4governor and the general assembly no later than December 21,
52018.
6EXPLANATION
7The inclusion of this explanation does not constitute agreement with
8the explanation’s substance by the members of the general assembly.
9This bill relates to wage discrimination under Iowa Code
10chapter 216, the Iowa civil rights Act of 1965, and establishes
11an equal pay task force.
12WAGE DISCRIMINATION IN EMPLOYMENT. The bill establishes
13additional unfair or discriminatory practices relating to wages
14under Code section 216.6A. Penalty and remedial provisions
15for discriminatory employment practices, including penalties
16specific to wage discrimination, are applicable under Code
17chapter 216 to violations of these requirements.
18The bill prohibits an employer from requiring that an
19employee refrain from disclosing, discussing, or sharing
20information about the amount of the employee’s wages, benefits,
21or other compensation or from inquiring, discussing, or sharing
22information about any other employee’s wages, benefits, or
23other compensation as a condition of employment. The bill
24prohibits an employer from requiring that an employee sign a
25waiver or other document that requires an employee to refrain
26from engaging in any of those activities as a condition of
27employment. The bill prohibits an employer from discriminating
28or retaliating against an employee for engaging in any of the
29activities.
30The bill prohibits an employer from seeking salary history
31information from a potential employee as a condition of a job
32interview or employment. This provision shall not be construed
33to prohibit a prospective employer from asking a prospective
34employee what salary level the prospective employee would
35require in order to accept a job.
-5- 1The bill prohibits an employer from releasing the salary
2history of any current or former employee to any prospective
3employer in response to a request as part of an interview or
4hiring process without written authorization from such current
5or former employee.
6The bill prohibits an employer from publishing, listing, or
7posting within the employer’s organization, with any employment
8agency, job-listing service, or internet site, or in any other
9public manner, an advertisement to recruit candidates for
10hire or independent contractors to fill a position within the
11employer’s organization without including the minimum rate of
12pay of the position. The rate of pay shall include overtime
13and allowances, if any, claimed as part of the minimum wage,
14including but not limited to tipped wages. The bill prohibits
15an employer from paying a newly hired employee at less than the
16rate of pay advertised for the employee’s position.
17Under current law, an employer has an affirmative defense
18to a claim under Code section 216.6A if a pay differential
19is based on any other factor other than prohibited wage
20discrimination. The bill provides that an employer has an
21affirmative defense to a claim under Code section 216.6A if a
22pay differential is based on any other bona fide factor other
23than prohibited discrimination, including but not limited
24to a bona fide factor relating to education, training, or
25experience. However, this defense shall only apply if the
26employer demonstrates that the factor is not based on or
27derived from prohibited wage discrimination, is job related
28with respect to the position in question, and is consistent
29with a business necessity. The bill defines “business
30necessity” as an overriding legitimate business purpose
31such that the factor relied upon effectively fulfills the
32business purpose it is supposed to serve. This affirmative
33defense shall not apply if the employee demonstrates that an
34alternative business practice exists that would serve the same
35business purpose without producing the wage differential.
-6- 1The bill provides that affirmative defenses to a claim under
2Code section 216.6A are not applicable unless one or more of
3the defenses account for the entire pay differential that is
4the subject of the claim.
5EQUAL PAY TASK FORCE. The bill creates an equal pay task
6force to study the extent of discriminatory wage disparities
7in the public and private sectors, the factors that cause
8such disparities, the consequences of such disparities, and
9actions likely to lead to the elimination and prevention of
10such disparities.
11The bill establishes the membership of the task force,
12including ex officio, nonvoting legislative members. The
13department of workforce development shall provide staffing
14services for the task force.
15The task force shall submit a report regarding its findings
16and its recommendations regarding potential actions for the
17elimination and prevention of discriminatory wage disparities
18to the governor and the general assembly no later than December
1921, 2018.
-7-je/rj
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 2017, 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.
30f. Publish, list, or post within the employer’s
31organization, with any employment agency, job-listing
32service, or internet site, or in any other public manner, an
33advertisement to recruit candidates for hire or independent
34contractors to fill a position within the employer’s
35organization without including the minimum rate of pay of the
-1-1position. The rate of pay may be by the hour, shift, day, week,
2salary, piece, commission, or other applicable rate. The rate
3of pay shall include overtime and allowances, if any, claimed
4as part of the minimum wage, including but not limited to
5tipped wages.
6g. Pay a newly hired employee at less than the rate of pay
7advertised for the employee’s position under paragraph “f”.
8 Sec. 2. Section 216.6A, subsection 3, Code 2017, is amended
9to read as follows:
103. a. It shall be an affirmative defense to a claim arising
11under this section if any of the following applies:
12a. (1) Payment of wages is made pursuant to a seniority
13system.
14b. (2) Payment of wages is made pursuant to a merit system.
15c. (3) Payment of wages is made pursuant to a system which
16measures earnings by quantity or quality of production.
17d. (4) Pay differential is based on any other factor other
18than the age, race, creed, color, sex, sexual orientation,
19gender identity, national origin, religion, or disability
20of such employee, including but not limited to a bona fide
21factor relating to education, training, or experience.
22This affirmative defense shall apply only if the employer
23demonstrates that the factor is not based on or derived from
24a differential in compensation based on age, race, creed,
25color, sex, sexual orientation, gender identity, national
26origin, religion, or disability; is job related with respect
27to the position in question; and is consistent with a business
28necessity. For purposes of this subparagraph, “business
29necessity” means an overriding legitimate business purpose
30such that the factor relied upon effectively fulfills the
31business purpose it is supposed to serve. This affirmative
32defense shall not apply if the employee demonstrates that an
33alternative business practice exists that would serve the same
34business purpose without producing the wage differential.
35b. An affirmative defense under this subsection is not
-2-1applicable unless one or more of the affirmative defenses
2listed in paragraph “a” account for the entire pay differential
3that is the subject of the claim.
4 Sec. 3. EQUAL PAY TASK FORCE AND REPORT.
51. An equal pay task force is created. The task force shall
6consist of the following members:
7a. The director of the civil rights commission, or the
8director’s designee.
9b. The director of the department of human rights, or the
10director’s designee.
11c. The director of the department of workforce development,
12or the director’s designee.
13d. An employee of the labor market information division
14of the department of workforce development designated by the
15director of the department.
16e. A representative of the association of business and
17industry, appointed by the president of the association.
18f. A member of a statewide labor organization appointed by
19the president of the organization.
20g. Two representatives of organizations whose objectives
21include the elimination of pay disparities between men and
22women and minorities and nonminorities and that have undertaken
23advocacy, educational, or legislative initiatives in pursuit
24of such objectives appointed by the director of the civil
25rights commission in consultation with the leadership of those
26organizations.
27h. Two representatives of postsecondary education
28institutions who have experience and expertise in the
29collection and analysis of data concerning pay disparities
30between men and women and minorities and nonminorities
31and whose research has been used in efforts to promote the
32elimination of such disparities appointed by the director of
33the civil rights commission in consultation with the leadership
34of those institutions.
35i. Four members of the general assembly serving as
-3-1ex officio, nonvoting members, one representative to be
2appointed by the speaker of the house of representatives, one
3representative to be appointed by the minority leader of the
4house of representatives, one senator to be appointed by the
5majority leader of the senate, and one senator to be appointed
6by the minority leader of the senate.
72. Membership of the task force specified in subsection 1,
8paragraphs “d” through “h”, shall comply with section 69.16A.
93. The task force shall study all of the following:
10a. The extent of wage disparities, both in the public and
11private sectors, between men and women and between minorities
12and nonminorities.
13b. Factors that cause, or which tend to cause, such
14disparities, including segregation between women and
15men and between minorities and nonminorities across and
16within occupations, payment of lower wages for work in
17female-dominated occupations, child-rearing responsibilities,
18the number of women who are heads of households, education,
19hours worked, and years on the job.
20c. The consequences of such disparities on the economy and
21affected families.
22d. Actions likely to lead to the elimination and prevention
23of such disparities.
244. The department of workforce development shall provide
25staffing services for the task force.
265. The voting members shall elect a chairperson from the
27voting membership of the task force. A majority of the voting
28members of the task force constitutes a quorum.
296. Voting members of the task force shall receive
30reimbursement for actual expenses incurred while serving
31in their official capacity only if they are not eligible
32for reimbursement by the organization that they represent.
33Legislative members shall be paid the per diem and expenses
34specified in section 2.10.
357. The task force shall submit a report regarding its
-4-1findings and its recommendations regarding potential actions
2for the elimination and prevention of disparities in wages
3between men and women and minorities and nonminorities to the
4governor and the general assembly no later than December 21,
52018.
6EXPLANATION
7The inclusion of this explanation does not constitute agreement with
8the explanation’s substance by the members of the general assembly.
9This bill relates to wage discrimination under Iowa Code
10chapter 216, the Iowa civil rights Act of 1965, and establishes
11an equal pay task force.
12WAGE DISCRIMINATION IN EMPLOYMENT. The bill establishes
13additional unfair or discriminatory practices relating to wages
14under Code section 216.6A. Penalty and remedial provisions
15for discriminatory employment practices, including penalties
16specific to wage discrimination, are applicable under Code
17chapter 216 to violations of these requirements.
18The bill prohibits an employer from requiring that an
19employee refrain from disclosing, discussing, or sharing
20information about the amount of the employee’s wages, benefits,
21or other compensation or from inquiring, discussing, or sharing
22information about any other employee’s wages, benefits, or
23other compensation as a condition of employment. The bill
24prohibits an employer from requiring that an employee sign a
25waiver or other document that requires an employee to refrain
26from engaging in any of those activities as a condition of
27employment. The bill prohibits an employer from discriminating
28or retaliating against an employee for engaging in any of the
29activities.
30The bill prohibits an employer from seeking salary history
31information from a potential employee as a condition of a job
32interview or employment. This provision shall not be construed
33to prohibit a prospective employer from asking a prospective
34employee what salary level the prospective employee would
35require in order to accept a job.
-5- 1The bill prohibits an employer from releasing the salary
2history of any current or former employee to any prospective
3employer in response to a request as part of an interview or
4hiring process without written authorization from such current
5or former employee.
6The bill prohibits an employer from publishing, listing, or
7posting within the employer’s organization, with any employment
8agency, job-listing service, or internet site, or in any other
9public manner, an advertisement to recruit candidates for
10hire or independent contractors to fill a position within the
11employer’s organization without including the minimum rate of
12pay of the position. The rate of pay shall include overtime
13and allowances, if any, claimed as part of the minimum wage,
14including but not limited to tipped wages. The bill prohibits
15an employer from paying a newly hired employee at less than the
16rate of pay advertised for the employee’s position.
17Under current law, an employer has an affirmative defense
18to a claim under Code section 216.6A if a pay differential
19is based on any other factor other than prohibited wage
20discrimination. The bill provides that an employer has an
21affirmative defense to a claim under Code section 216.6A if a
22pay differential is based on any other bona fide factor other
23than prohibited discrimination, including but not limited
24to a bona fide factor relating to education, training, or
25experience. However, this defense shall only apply if the
26employer demonstrates that the factor is not based on or
27derived from prohibited wage discrimination, is job related
28with respect to the position in question, and is consistent
29with a business necessity. The bill defines “business
30necessity” as an overriding legitimate business purpose
31such that the factor relied upon effectively fulfills the
32business purpose it is supposed to serve. This affirmative
33defense shall not apply if the employee demonstrates that an
34alternative business practice exists that would serve the same
35business purpose without producing the wage differential.
-6- 1The bill provides that affirmative defenses to a claim under
2Code section 216.6A are not applicable unless one or more of
3the defenses account for the entire pay differential that is
4the subject of the claim.
5EQUAL PAY TASK FORCE. The bill creates an equal pay task
6force to study the extent of discriminatory wage disparities
7in the public and private sectors, the factors that cause
8such disparities, the consequences of such disparities, and
9actions likely to lead to the elimination and prevention of
10such disparities.
11The bill establishes the membership of the task force,
12including ex officio, nonvoting legislative members. The
13department of workforce development shall provide staffing
14services for the task force.
15The task force shall submit a report regarding its findings
16and its recommendations regarding potential actions for the
17elimination and prevention of discriminatory wage disparities
18to the governor and the general assembly no later than December
1921, 2018.
-7-je/rj