SLS 12RS-725 ORIGINAL Page 1 of 7 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. Regular Session, 2012 SENATE BILL NO. 568 BY SENATOR PETERSON EMPLOYMENT. Creates the Equal Pay for Women Act. (gov sig) AN ACT1 To enact Chapter 1-A of Title 42 of the Louisiana Revised Statutes of 1950, to be comprised2 of R.S. 42:5 through 5.7, relative to payment of wages to certain public employees;3 to provide for a declaration of public policy; to provide for definitions; to provide for4 prohibited acts constituting unequal pay; to provide for a complaint procedure; to5 provide for damages; to limit actions of employees; to require certain records be kept6 by employers; and to provide for related matters.7 Be it enacted by the Legislature of Louisiana:8 Section 1. Chapter 1-A of Title 42 of the Louisiana Revised Statutes of 1950,9 comprised of R.S. 42:5 through 5.7, is hereby enacted to read as follows:10 CHAPTER 1-A. LOUISIANA EQUAL PAY FOR WOMEN ACT11 §5. Short title; citation12 This Chapter shall constitute and be known as the "Louisiana Equal Pay13 for Women Act" and may be cited as such.14 §5.1. Declaration of public policy15 The public policy of this state is declared to be that the practice of paying16 wages to employees of one sex at a lesser rate than the rate paid to employees17 SB NO. 568 SLS 12RS-725 ORIGINAL Page 2 of 7 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. of the opposite sex for comparable work on jobs which have comparable1 requirements unjustly discriminates against the person receiving the lesser rate,2 leads to low worker morale, threatens the well-being of citizens of this state, and3 adversely affects the general welfare. It is therefore declared to be the policy of4 this state through the exercise of its police power to correct and, as rapidly as5 possible, to eliminate discriminatory wage practices based on sex.6 §5.2. Definitions7 As used in this Chapter, the following terms shall have the definitions8 ascribed in this Section unless the context indicates otherwise:9 (1)(a) "Public Employee" means any individual who is:10 (i) An administrative officer or official of a governmental entity who is11 not filling an elective office.12 (ii) Appointed by any elected official when acting in an official capacity,13 and the appointment is to a post or position wherein the appointee is to serve the14 governmental entity or an agency thereof, either as a member of an agency or15 as an employee thereof.16 (iii) Engaged in the performance of a governmental function.17 (iv) Under the supervision or authority of an elected official or another18 employee of the governmental entity.19 (b) "Public employee" does not mean anyone whose public service is20 limited to periodic duty in the National Guard pursuant to 32 U.S.C.A. 502.21 (2) "Employer" means the state of Louisiana, any state officer, any22 department or agency, any political subdivision, any unit of local government,23 and any school district.24 (3) "Labor organization" means any organization which exists for the25 purpose, in whole or in part, of collective bargaining or of dealing with26 employers concerning grievances, terms or conditions of employment, or other27 mutual aid or protection in connection with employment.28 §5.3. Prohibited acts29 SB NO. 568 SLS 12RS-725 ORIGINAL Page 3 of 7 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. A. No employer may discriminate against an employee on the basis of1 sex by paying wages to an employee at a rate less than that of another employee2 for the same or substantially similar work on jobs in which their performance3 requires equal skill, effort, education, and responsibility and which are4 performed under similar working conditions including time worked in the5 position.6 B. No labor organization or its agent representing employees or an7 employer shall cause or attempt to cause an employer to discriminate against8 an employee in violation of this Chapter.9 C. Nothing in Subsection (A) or (B) of this Section shall prohibit the10 payment of different wage rates to employees where such payment is made11 pursuant to the following:12 (1) A seniority system.13 (2) A merit system.14 (3) A system that measures earnings by quantity or quality of15 production.16 (4) A differential based on a bona fide factor other than sex, such as17 education, training, or experience, except that this clause shall apply only to18 either of the following:19 (a) The employer demonstrates that such factor is job-related with20 respect to the position in question.21 (b) The employer demonstrates that it furthers a legitimate government22 purpose, except if the employee demonstrates that an alternative employment23 practice exists that would serve the same government purpose without24 producing such differential and that the employer has refused to adopt such25 alternative practice and such factor was actually applied and used reasonably26 in light of the asserted justification.27 D. An employer who is paying wages in violation of this Chapter may28 not, to comply with this Chapter, reduce the wages of any other employee.29 SB NO. 568 SLS 12RS-725 ORIGINAL Page 4 of 7 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. E. It shall be unlawful for any person to discharge or in any other1 manner discriminate against any individual because the individual has done any2 of the following:3 (1) Filed any charge or has instituted or caused to be instituted any4 proceeding pursuant to or related to this Chapter.5 (2) Given or is about to give any information in connection with any6 inquiry or proceeding relating to any right provided pursuant to this Chapter.7 (3) Testified or is about to testify in any inquiry or proceeding relating8 to any right provided pursuant to this Chapter.9 §5.4. Complaint procedure10 A. An employee who believes that an employer is in violation of this11 Chapter shall submit written notice of the violation to the employer. An12 employer who receives such written notice from an employee shall have ninety13 days from receipt of the notice to remedy any violation of this Chapter. If an14 employer remedies the violation within the time provided herein, the employee15 may not bring any action against the employer pursuant to this Chapter.16 B. If an employer fails to remedy a violation of this Chapter within the17 time provided herein, the employee may institute a civil suit in a district court18 of competent jurisdiction. The employee shall include in the suit a copy of the19 written notice received by the employer prior to the filing of this action.20 §5.5. Damages; liquidated damages21 A. An employer who violates the provisions of this Chapter shall be22 liable to the affected employee in the amount of their unpaid wages and an23 additional amount of one-half of unpaid wages in liquidated damages as well as24 reasonable attorney fees and costs.25 B. In the event that such damages are appropriate, an employer who26 violates the provisions of this Chapter shall be liable to the affected employees27 for employment, reinstatement, promotion, and any benefits lost.28 C. The award of monetary relief shall be limited to those violations29 SB NO. 568 SLS 12RS-725 ORIGINAL Page 5 of 7 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. which have occurred within a thirty-six-month period prior to the employee's1 written notice.2 D. The plaintiff may not be awarded monetary relief for losses incurred3 between the time of the district court's final decision and the final determination4 of any higher appellate court, as the case may be.5 E. Interim earnings by the employee discriminated against shall operate6 to reduce the monetary relief otherwise allowable.7 F. Nothing in this Chapter prevents the settlement of a claim by8 agreement of the employer and employee for a lesser amount.9 G. An employee found by a court to have brought a frivolous claim10 under this Chapter shall be held liable to the defendant for reasonable damages11 incurred as a result of the claim, reasonable attorney fees, and court costs.12 §5.6. Limitation of actions13 A. Any action to recover unpaid wages and liquidated damages based14 on a violation as provided for in this Chapter shall be commenced within one15 year of the date that an employee knows that his employer is in violation of this16 Chapter.17 B. This one-year period shall be suspended during the ninety-day period18 in which the employer has to respond to the employee's written notice.19 §5.7. Records to be kept by employers20 An employer subject to any provision of this Chapter shall make and21 preserve records that document the name, address, occupation of each22 employee, and the wages paid to each employee. These records shall be23 preserved for a period of not less than three years.24 Section 2. This Act shall become effective upon signature by the governor or, if not25 signed by the governor, upon expiration of the time for bills to become law without signature26 by the governor, as provided by Article III, Section 18 of the Constitution of Louisiana. If27 vetoed by the governor and subsequently approved by the legislature, this Act shall become28 effective on the day following such approval.29 SB NO. 568 SLS 12RS-725 ORIGINAL Page 6 of 7 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. The original instrument and the following digest, which constitutes no part of the legislative instrument, were prepared by Carla S. Roberts. DIGEST 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. Provides for the state to eliminate discriminatory wage practices based on sex, cites proposed law as the "Louisiana Equal Pay for Women Act". Proposed law provides for the following definitions: (1)(a)"Public Employee" means any individual who is: (i)A non-elected administrative officer or official of a governmental entity. (ii)Appointed by any elected official when acting in an official capacity to a post or position wherein the appointee is to serve the governmental entity or an agency thereof, either as a member of an agency or as an employee thereof. (iii)Engaged in the performance of a governmental function. (iv)Under the supervision or authority of an elected official or another employee of the governmental entity. (b)Excludes anyone whose public service is limited to periodic duty in the National Guard. (2)"Employer" means the state of Louisiana, any state officer, any department or agency, any political subdivision, any unit of local government, and any school district. (3)"Labor organization" means any organization which exists for the purpose, in whole or in part, of collective bargaining or of dealing with employers concerning grievances, terms or conditions of employment, or other mutual aid or protection in connection with employment. Proposed law prohibits an employer from paying 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 prohibits a labor organization 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 governmental purpose. Proposed law provides that the legitimate governmental purpose may serve as an exception unless the employee can show that some alternative governmental practice could have been utilized without producing such a differential and the employer refused to adopt such alternative practice. SB NO. 568 SLS 12RS-725 ORIGINAL Page 7 of 7 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. Proposed law prohibits an employer from reducing another employee's pay in order to comply with proposed law. Proposed law prohibits an employer from discharging or discriminating against an individual who has filed any charges, given any information, or testified in any inquiry relating to any right provided under proposed law. 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. Provides that such employer shall have 90 days to remedy the violation. 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 district court of competent jurisdiction. Proposed law provides that an employer who violates proposed law may be liable for damages inclusive of unpaid wages, an amount of one-half of unpaid wages in liquidated damages, reasonable attorney fees, costs, employment, reinstatement, promotion, and any benefits lost. Proposed law limits the award of monetary relief to violation occurring within a 36-month period prior to the employee's written notice. Prohibits award for monetary relief for losses incurred between the time of the district court's final decision and the final determination of any higher appellate court. Proposed law provides that interim earnings by the employee shall reduce the amount of damages. Further 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 for a three-year period records that document names, addresses, occupations of employees, and their wages. Effective upon signature of governor or lapse of time for gubernatorial action. (Adds R.S. 42:5 through 5.7)