HLS 12RS-916 ORIGINAL Page 1 of 6 CODING: Words in struck through type are deletions from existing law; words underscored are additions. Regular Session, 2012 HOUSE BILL NO. 573 BY REPRESENTATIVE NORTON EMPLOYMENT/WAGES: Creates the Equal Pay for Women Act AN ACT1 To enact Chapter 6-A of Title 23 of the Louisiana Revised Statutes of 1950, to be comprised2 of R.S. 23:661 through 668, relative to payment of wages; to provide for definitions;3 to provide for prohibited acts constituting unequal pay; to provide for a complaint4 procedure; to provide for damages; to limit actions of employees; to require certain5 records be kept by employers; and to provide for related matters.6 Be it enacted by the Legislature of Louisiana:7 Section 1. Chapter 6-A of Title 23 of the Louisiana Revised Statutes of 1950,8 comprised of R.S. 23:661 through 668, is hereby enacted to read as follows:9 CHAPTER 6-A. LOUISIANA EQUAL PAY FOR WOMEN ACT10 §661. Short title; citation11 This Chapter shall constitute and be known as the "Louisiana Equal Pay for12 Women Act" and may be cited as such.13 §662. Declaration of public policy14 The public policy of this state is declared to be that the practice of paying15 wages to employees of one sex at a lesser rate than the rate paid to employees of the16 opposite sex for comparable work on jobs which have comparable requirements17 unjustly discriminates against the person receiving the lesser rate, leads to low18 worker morale, threatens the well-being of citizens of this state, and adversely affects19 the general welfare. It is therefore declared to be the policy of this state through the20 HLS 12RS-916 ORIGINAL HB NO. 573 Page 2 of 6 CODING: Words in struck through type are deletions from existing law; words underscored are additions. exercise of its police power to correct and, as rapidly as possible, to eliminate1 discriminatory wage practices based on sex.2 §663. Definitions3 As used in this Chapter, the following terms shall have the definitions4 ascribed in this Section unless the context indicates otherwise:5 (1) "Employee" means any individual permitted to work by an employer.6 (2) "Employer" means an individual, partnership, corporation, association,7 business, trust, person, labor organization as defined in this Section, or entity for8 whom four or more employees are gainfully employed within the state and includes9 the state of Louisiana, any state officer, any department or agency, any unit of local10 government, and any school district.11 (3) "Labor organization" means any organization which exists for the12 purpose, in whole or in part, of collective bargaining or of dealing with employers13 concerning grievances, terms or conditions of employment, or other mutual aid or14 protection in connection with employment.15 §664. Prohibited acts16 A. No employer may discriminate against an employee on the basis of sex17 by paying wages to an employee at a rate less than that of another employee for the18 same or substantially similar work on jobs in which their performance requires equal19 skill, effort, education, and responsibility and which are performed under similar20 working conditions including time worked in the position.21 B. No labor organization or its agent representing employees or an employer22 shall cause or attempt to cause an employer to discriminate against an employee in23 violation of this Chapter.24 C. Nothing in Subsection A or B of this Section shall prohibit the payment25 of different wage rates to employees where such payment is made pursuant to the26 following:27 (1) A seniority system.28 (2) A merit system.29 HLS 12RS-916 ORIGINAL HB NO. 573 Page 3 of 6 CODING: Words in struck through type are deletions from existing law; words underscored are additions. (3) A system that measures earnings by quantity or quality of production.1 (4) A differential based on a bona fide factor other than sex, such as2 education, training, or experience, except that this clause shall apply only to either3 of the following:4 (a) The employer demonstrates that such factor is job related with respect to5 the position in question.6 (b) The employer demonstrates that it furthers a legitimate business purpose,7 except if the employee demonstrates that an alternative employment practice exists8 that would serve the same business purpose without producing such differential and9 that the employer has refused to adopt such alternative practice and such factor was10 actually applied and used reasonably in light of the asserted justification.11 D. An employer who is paying wages in violation of this Chapter may not,12 to comply with this Chapter, reduce the wages of any other employee.13 E. It shall be unlawful for any person to discharge or in any other manner14 discriminate against any individual because the individual:15 (1) Has filed any charge or has instituted or caused to be instituted any16 proceeding pursuant to or related to this Chapter.17 (2) Has given or is about to give any information in connection with any18 inquiry or proceeding relating to any right provided pursuant to this Chapter.19 (3) Has testified or is about to testify in any inquiry or proceeding relating20 to any right provided pursuant to this Chapter.21 §665. Complaint procedure22 A. An employee who believes that an employer is in violation of this23 Chapter shall submit written notice of the violation to the employer. An employer24 who receives such written notice from an employee shall have ninety days from25 receipt of the notice to remedy any violation of this Chapter. If an employer26 remedies the violation within the time provided herein, the employee may not bring27 any action against the employer pursuant to this Chapter.28 HLS 12RS-916 ORIGINAL HB NO. 573 Page 4 of 6 CODING: Words in struck through type are deletions from existing law; words underscored are additions. B. If an employer fails to remedy a violation of this Chapter within the time1 provided herein, the employee may institute a civil suit in a district court of2 competent jurisdiction. The employee shall include in the suit a copy of the written3 notice received by the employer prior to the filing of this action.4 §666. Liquidated damages5 A. An employer who violates the provisions of this Chapter shall be liable6 to the affected employees in the amount of their unpaid wages and an additional7 amount of one-half of unpaid wages in liquidated damages as well as reasonable8 attorney fees and costs.9 B. In the event that such damages are appropriate, an employer who violates10 the provisions of this Chapter shall be liable to the affected employees for11 employment, reinstatement, promotion, and any benefits lost.12 C. The award of monetary relief shall be limited to those violations which13 have occurred within a thirty-six-month period prior to the employee's written notice.14 D. The plaintiff may not be awarded monetary relief for losses incurred15 between the time of the district court's final decision and the final determination of16 any higher appellate court, as the case may be.17 E. Interim earnings by the employee discriminated against shall operate to18 reduce the monetary relief otherwise allowable.19 F. Nothing in this Chapter prevents the settlement of a claim by agreement20 of the employer and employee for a lesser amount.21 G. An employee found by a court to have brought a frivolous claim under22 this Chapter shall be held liable to the defendant for reasonable damages incurred as23 a result of the claim, reasonable attorney fees, and court costs.24 §667. Limitation of actions25 A. Any action to recover unpaid wages and liquidated damages based on a26 violation as provided for in this Chapter shall be commenced within one year of the27 date that an employee knows that his employer is in violation of this Chapter.28 HLS 12RS-916 ORIGINAL HB NO. 573 Page 5 of 6 CODING: Words in struck through type are deletions from existing law; words underscored are additions. B. This one-year period shall be suspended during the ninety-day period in1 which the employer has to respond to the employee's written notice.2 §668. Records to be kept by employers3 An employer subject to any provision of this Chapter shall make and preserve4 records that document the name, address, occupation of each employee, and the5 wages paid to each employee. These records shall be preserved for a period of not6 less than three years.7 DIGEST The digest printed below was prepared by House Legislative Services. It constitutes no part of the legislative instrument. The keyword, one-liner, abstract, and digest do not constitute part of the law or proof or indicia of legislative intent. [R.S. 1:13(B) and 24:177(E)] Norton HB No. 573 Abstract: Creates the "Louisiana Equal Pay for Women Act". Proposed law provides that the public policy of this state is declared to be that paying unequal wages based on sex unjustly discriminates against the person receiving the lesser rate, leads to low morale, threatens the well-being of the citizens of this state, and adversely affects the general welfare. Proposed law defines certain terms used within proposed law, including "employee" and "labor organization". Proposed law makes it unlawful for an employer who employs four or more employees to pay wages to an employee at a rate less than the rate at which the employer pays wages to another employee of the opposite sex for the same or substantially similar work. Proposed law makes it unlawful for a labor organization or its agent to cause or attempt to cause an employer to pay wages to an employee at a rate less than the rate at which the employer pays wages to another employee of the opposite sex for the same or substantially similar work. Proposed law allows exceptions for instances where pay is made under a seniority system, a merit system, a system that measures earnings by quantity or quality of production, or a differential based on a factor other than sex as long as such system is job related or furthers a legitimate business purpose. Proposed law provides that the legitimate business purpose may serve as an exception unless the employee can show that some alternative business practice could have been utilized without producing such a differential and the employer refused to adopt such alternative practice. Proposed law prohibits an employer from reducing an employee's pay in order to comply with proposed law. Proposed law declares it unlawful for a person to discharge or discriminate against an individual who has filed any charges, given any information, or testified in any inquiry relating to any right provided under proposed law. HLS 12RS-916 ORIGINAL HB NO. 573 Page 6 of 6 CODING: Words in struck through type are deletions from existing law; words underscored are additions. Proposed law provides that an employee who believes that his employer has violated a provision of proposed law may provide written notice to the employer of the violation. Proposed law provides that an employer who receives written notice of a violation shall have 90 days to remedy the violation. Proposed law further provides that if the employer remedies the violation within the 90 days, the employee may not bring an action against the employer. Proposed law provides that if the employer fails to remedy the violation, the employee may file an action in a court of competent jurisdiction. Proposed law further provides that a copy of the written notice received by the employer be included in the suit. Proposed law provides that an employer in violation of the provisions of proposed law may be liable for damages inclusive of unpaid wages, an amount of 1/2 of unpaid wages in liquidated damages, reasonable attorney fees, costs, employment, reinstatement, promotion, and any benefits lost. Proposed law provides that monetary relief for a violation of proposed law is limited to a 36- month period prior to the employee's written notice. Proposed law provides that said monetary relief cannot be awarded for losses incurred between the time of the district court's final decision and the final determination of any higher appellate court, as the case may be. Proposed law provides that interim earnings by the employee shall reduce the amount of damages. Proposed law provides that the employer and employee may settle for a lesser amount of damages. Proposed law provides an employer with reasonable damages, attorney fees, and court costs when an employee is found by a court to have brought a frivolous claim. Proposed law provides for a one-year prescriptive period in bringing any action to recover from the time the employee knows about the violation. Proposed law provides for a suspension of this period during the 90-day period in which the employer has to respond to the employee's written notice. Proposed law requires employers to make and preserve records that document names, addresses, occupations of employees, and their wages. The records shall be preserved for not less than three years. (Adds R.S. 23:661-668)