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: 3 TLSB 1528XS (5) 91 je/js
S.F. 187 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 employees wages, benefits, or other 10 compensation or from inquiring, discussing, or sharing 11 information about any other employees 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 employers 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 35 -1- LSB 1528XS (5) 91 je/js 1/ 5
S.F. 187 contractors to fill a position within the employers 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 employees 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 35 -2- LSB 1528XS (5) 91 je/js 2/ 5
S.F. 187 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 explanations 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 employees wages, benefits, or other 19 compensation or from inquiring, discussing, or sharing 20 information about any other employees 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 35 -3- LSB 1528XS (5) 91 je/js 3/ 5
S.F. 187 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 employers 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 employers 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 employees 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 35 -4- LSB 1528XS (5) 91 je/js 4/ 5
S.F. 187 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. 3 -5- LSB 1528XS (5) 91 je/js 5/ 5