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Senate
File
187
-
Introduced
SENATE
FILE
187
BY
PETERSEN
,
DONAHUE
,
BISIGNANO
,
TRONE
GARRIOTT
,
TOWNSEND
,
STAED
,
QUIRMBACH
,
WINCKLER
,
WEINER
,
DOTZLER
,
BLAKE
,
and
BENNETT
A
BILL
FOR
An
Act
relating
to
wage
discrimination
under
the
Iowa
civil
1
rights
Act
of
1965
and
making
penalties
applicable.
2
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
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Section
1.
SHORT
TITLE.
This
Act
shall
be
known
and
may
be
1
cited
as
the
“Pay
Transparency
and
Fairness
Act”.
2
Sec.
2.
Section
216.6A,
Code
2025,
is
amended
by
adding
the
3
following
new
subsection:
4
NEW
SUBSECTION
.
2A.
It
shall
be
an
unfair
or
discriminatory
5
practice
for
any
employer
or
agent
of
any
employer
to
do
any
of
6
the
following:
7
a.
Require,
as
a
condition
of
employment,
that
an
employee
8
refrain
from
disclosing,
discussing,
or
sharing
information
9
about
the
amount
of
the
employee’s
wages,
benefits,
or
other
10
compensation
or
from
inquiring,
discussing,
or
sharing
11
information
about
any
other
employee’s
wages,
benefits,
or
12
other
compensation.
13
b.
Require,
as
a
condition
of
employment,
that
an
employee
14
sign
a
waiver
or
other
document
that
requires
an
employee
to
15
refrain
from
engaging
in
any
of
the
activities
permitted
under
16
paragraph
“a”
.
17
c.
Discriminate
or
retaliate
against
an
employee
for
18
engaging
in
any
of
the
activities
permitted
under
paragraph
“a”
.
19
d.
Seek
salary
history
information,
including
but
not
20
limited
to
information
on
compensation
and
benefits,
from
21
a
potential
employee
as
a
condition
of
a
job
interview
or
22
employment.
This
paragraph
shall
not
be
construed
to
prohibit
23
a
prospective
employer
from
asking
a
prospective
employee
what
24
salary
level
the
prospective
employee
would
require
in
order
to
25
accept
a
job.
26
e.
Release
the
salary
history,
including
but
not
limited
27
to
information
on
compensation
and
benefits,
of
any
current
28
or
former
employee
to
any
prospective
employer
in
response
to
29
a
request
as
part
of
an
interview
or
hiring
process
without
30
written
authorization
from
such
current
or
former
employee.
31
f.
Publish,
list,
or
post
within
the
employer’s
32
organization,
with
any
employment
agency,
job-listing
33
service,
or
internet
site,
or
in
any
other
public
manner,
an
34
advertisement
to
recruit
candidates
for
hire
or
independent
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contractors
to
fill
a
position
within
the
employer’s
1
organization
without
including
the
minimum
rate
of
pay
of
the
2
position.
The
rate
of
pay
may
be
by
the
hour,
shift,
day,
week,
3
salary,
piece,
commission,
or
other
applicable
rate.
The
rate
4
of
pay
shall
include
overtime
and
allowances,
if
any,
claimed
5
as
part
of
the
minimum
wage,
including
but
not
limited
to
6
tipped
wages.
7
g.
Pay
a
newly
hired
employee
at
less
than
the
rate
of
pay
8
advertised
for
the
employee’s
position
under
paragraph
“f”
.
9
Sec.
3.
Section
216.6A,
subsection
3,
Code
2025,
is
amended
10
to
read
as
follows:
11
3.
a.
It
shall
be
an
affirmative
defense
to
a
claim
arising
12
under
this
section
if
any
of
the
following
applies:
13
a.
(1)
Payment
of
wages
is
made
pursuant
to
a
seniority
14
system.
15
b.
(2)
Payment
of
wages
is
made
pursuant
to
a
merit
system.
16
c.
(3)
Payment
of
wages
is
made
pursuant
to
a
system
which
17
that
measures
earnings
by
quantity
or
quality
of
production.
18
d.
(4)
Pay
differential
is
based
on
any
other
bona
fide
19
factor
other
than
the
age,
race,
creed,
color,
sex,
sexual
20
orientation,
gender
identity,
national
origin,
religion,
21
or
disability
of
such
employee
,
including
but
not
limited
22
to
a
bona
fide
factor
relating
to
education,
training,
or
23
experience
.
This
affirmative
defense
shall
apply
only
if
24
the
employer
demonstrates
that
the
factor
is
not
based
on
or
25
derived
from
a
differential
in
compensation
based
on
age,
26
race,
creed,
color,
sex,
sexual
orientation,
gender
identity,
27
national
origin,
religion,
or
disability;
is
job
related
with
28
respect
to
the
position
in
question;
and
is
consistent
with
29
a
business
necessity.
For
purposes
of
this
subparagraph,
30
“business
necessity”
means
an
overriding
legitimate
business
31
purpose
such
that
the
factor
relied
upon
effectively
fulfills
32
the
business
purpose
it
is
supposed
to
serve.
This
affirmative
33
defense
shall
not
apply
if
the
employee
demonstrates
that
an
34
alternative
business
practice
exists
that
would
serve
the
same
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business
purpose
without
producing
the
wage
differential.
1
b.
An
affirmative
defense
under
this
subsection
is
not
2
applicable
unless
one
or
more
of
the
defenses
listed
in
3
paragraph
“a”
account
for
the
entire
pay
differential
that
is
4
the
subject
of
the
claim.
5
EXPLANATION
6
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
7
the
explanation’s
substance
by
the
members
of
the
general
assembly.
8
This
bill
relates
to
wage
discrimination
under
Code
chapter
9
216,
the
Iowa
civil
rights
Act
of
1965.
10
The
bill
establishes
additional
unfair
or
discriminatory
11
practices
relating
to
wages
under
Code
section
216.6A.
12
Penalty
and
remedial
provisions
for
discriminatory
employment
13
practices,
including
penalties
specific
to
wage
discrimination,
14
are
applicable
under
Code
chapter
216
to
violations
of
these
15
requirements.
16
The
bill
prohibits
an
employer
from
requiring
an
employee
17
to
refrain
from
disclosing,
discussing,
or
sharing
information
18
about
the
amount
of
the
employee’s
wages,
benefits,
or
other
19
compensation
or
from
inquiring,
discussing,
or
sharing
20
information
about
any
other
employee’s
wages,
benefits,
or
21
other
compensation
as
a
condition
of
employment.
The
bill
22
prohibits
an
employer
from
requiring
an
employee
to
sign
a
23
waiver
or
other
document
that
requires
an
employee
to
refrain
24
from
engaging
in
any
of
those
activities
as
a
condition
of
25
employment.
The
bill
prohibits
an
employer
from
discriminating
26
or
retaliating
against
an
employee
for
engaging
in
any
of
the
27
activities.
28
The
bill
prohibits
an
employer
from
seeking
salary
history
29
information
from
a
potential
employee
as
a
condition
of
a
job
30
interview
or
employment.
This
provision
shall
not
be
construed
31
to
prohibit
a
prospective
employer
from
asking
a
prospective
32
employee
what
salary
level
the
prospective
employee
would
33
require
in
order
to
accept
a
job.
34
The
bill
prohibits
an
employer
from
releasing
the
salary
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history
of
any
current
or
former
employee
to
any
prospective
1
employer
in
response
to
a
request
as
part
of
an
interview
or
2
hiring
process
without
written
authorization
from
such
current
3
or
former
employee.
4
The
bill
prohibits
an
employer
from
publishing,
listing,
or
5
posting
within
the
employer’s
organization,
with
any
employment
6
agency,
job-listing
service,
or
internet
site,
or
in
any
other
7
public
manner,
an
advertisement
to
recruit
candidates
for
8
hire
or
independent
contractors
to
fill
a
position
within
the
9
employer’s
organization
without
including
the
minimum
rate
of
10
pay
of
the
position.
The
rate
of
pay
shall
include
overtime
11
and
allowances,
if
any,
claimed
as
part
of
the
minimum
wage,
12
including
but
not
limited
to
tipped
wages.
The
bill
prohibits
13
an
employer
from
paying
a
newly
hired
employee
at
less
than
the
14
rate
of
pay
advertised
for
the
employee’s
position.
15
Under
current
law,
an
employer
has
an
affirmative
defense
16
to
a
claim
under
Code
section
216.6A
if
a
pay
differential
17
is
based
on
any
other
factor
other
than
prohibited
wage
18
discrimination.
The
bill
provides
that
an
employer
has
an
19
affirmative
defense
to
a
claim
under
Code
section
216.6A
if
a
20
pay
differential
is
based
on
any
other
bona
fide
factor
other
21
than
prohibited
discrimination,
including
but
not
limited
22
to
a
bona
fide
factor
relating
to
education,
training,
or
23
experience.
However,
this
affirmative
defense
shall
only
24
apply
if
the
employer
demonstrates
that
the
factor
is
not
25
based
on
or
derived
from
prohibited
wage
discrimination,
is
26
job
related
with
respect
to
the
position
in
question,
and
27
is
consistent
with
a
business
necessity.
The
bill
defines
28
“business
necessity”
as
an
overriding
legitimate
business
29
purpose
such
that
the
factor
relied
upon
effectively
fulfills
30
the
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
The
bill
provides
that
affirmative
defenses
to
a
claim
under
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Code
section
216.6A
are
not
applicable
unless
one
or
more
of
1
the
defenses
account
for
the
entire
pay
differential
that
is
2
the
subject
of
the
claim.
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