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IA SF187

IA SF187
A bill for an act relating to wage discrimination under the Iowa civil rights Act of 1965 and making penalties applicable.


summary

Introduced
02/03/2025
In Committee
02/03/2025
Crossed Over
Passed
Dead

Introduced Session

91st General Assembly

Bill Summary

This bill relates to wage discrimination under Code chapter 216, the Iowa civil rights Act of 1965. The bill establishes additional unfair or discriminatory practices relating to wages under Code section 216.6A. Penalty and remedial provisions for discriminatory employment practices, including penalties specific to wage discrimination, are applicable under Code chapter 216 to violations of these requirements. The bill prohibits an employer from requiring an employee to refrain from disclosing, discussing, or sharing information about the amount of the employee’s wages, benefits, or other compensation or from inquiring, discussing, or sharing information about any other employee’s wages, benefits, or other compensation as a condition of employment. The bill prohibits an employer from requiring an employee to sign a waiver or other document that requires an employee to refrain from engaging in any of those activities as a condition of employment. The bill prohibits an employer from discriminating or retaliating against an employee for engaging in any of the activities. The bill prohibits an employer from seeking salary history information from a potential employee as a condition of a job interview or employment. This provision shall not be construed to prohibit a prospective employer from asking a prospective employee what salary level the prospective employee would require in order to accept a job. The bill prohibits an employer from releasing the salary history of any current or former employee to any prospective employer in response to a request as part of an interview or hiring process without written authorization from such current or former employee. The bill prohibits an employer from publishing, listing, or posting within the employer’s organization, with any employment agency, job-listing service, or internet site, or in any other public manner, an advertisement to recruit candidates for hire or independent contractors to fill a position within the employer’s organization without including the minimum rate of pay of the position. The rate of pay shall include overtime and allowances, if any, claimed as part of the minimum wage, including but not limited to tipped wages. The bill prohibits an employer from paying a newly hired employee at less than the rate of pay advertised for the employee’s position. Under current law, an employer has an affirmative defense to a claim under Code section 216.6A if a pay differential is based on any other factor other than prohibited wage discrimination. The bill provides that an employer has an affirmative defense to a claim under Code section 216.6A if a pay differential is based on any other bona fide factor other than prohibited discrimination, including but not limited to a bona fide factor relating to education, training, or experience. However, this affirmative defense shall only apply if the employer demonstrates that the factor is not based on or derived from prohibited wage discrimination, is job related with respect to the position in question, and is consistent with a business necessity. The bill defines “business necessity” as an overriding legitimate business purpose such that the factor relied upon effectively fulfills the business purpose it is supposed to serve. This affirmative defense shall not apply if the employee demonstrates that an alternative business practice exists that would serve the same business purpose without producing the wage differential. The bill provides that affirmative defenses to a claim under Code section 216.6A are not applicable unless one or more of the defenses account for the entire pay differential that is the subject of the claim.

AI Summary

This bill, known as the "Pay Transparency and Fairness Act," proposes significant changes to wage discrimination protections under the Iowa Civil Rights Act. The bill introduces several new provisions that aim to prevent wage discrimination and promote salary transparency. Employers would be prohibited from preventing employees from discussing their wages, requiring employees to sign waivers restricting wage discussions, or retaliating against employees who share compensation information. The bill also bars employers from seeking salary history from potential employees and requires job postings to include the minimum rate of pay for a position. Additionally, the legislation modifies existing defenses for wage differentials, stipulating that pay differences must be based on legitimate, job-related factors that are not derived from discrimination and are consistent with a demonstrable business necessity. Employers would need to prove that any wage differences are entirely justified by factors such as seniority, merit, production quality, or other bona fide employment-related considerations, and that no alternative business practices could achieve the same purpose without creating a wage disparity. These provisions are designed to reduce wage discrimination and increase transparency in employment compensation practices.

Committee Categories

Labor and Employment

Sponsors (12)

Last Action

Subcommittee: Driscoll, Donahue, and Taylor. S.J. 194. (on 02/04/2025)

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