HLS 13RS-681 ORIGINAL Page 1 of 7 CODING: Words in struck through type are deletions from existing law; words underscored are additions. Regular Session, 2013 HOUSE BILL NO. 453 BY REPRESENTATIVE NORTON Prefiled pursuant to Article III, Section 2(A)(4)(b)(i) of the Constitution of Louisiana. 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 HLS 13RS-681 ORIGINAL HB NO. 453 Page 2 of 7 CODING: Words in struck through type are deletions from existing law; words underscored are additions. the general welfare. It is therefore declared to be the policy of this state through the1 exercise of its police power to correct and, as rapidly as possible, to eliminate2 discriminatory wage practices based on sex.3 §663. Definitions4 As used in this Chapter, the following terms shall have the definitions5 ascribed in this Section unless the context indicates otherwise:6 (1) "Commission" means the Louisiana Commission on Human Rights.7 (2) "Employee" means any individual permitted to work by an employer.8 (3) "Employer" means an individual, partnership, corporation, association,9 business, trust, person, labor organization as defined in this Section, or entity for10 whom fifteen or more employees are gainfully employed within the state and11 includes the state of Louisiana, any state officer, any department or agency, any unit12 of local government, and any school district.13 (4) "Labor organization" means any organization which exists for the14 purpose, in whole or in part, of collective bargaining or of dealing with employers15 concerning grievances, terms or conditions of employment, or other mutual aid or16 protection in connection with employment.17 §664. Prohibited acts18 A. No employer may discriminate against an employee on the basis of sex19 by paying wages to an employee at a rate less than that of another employee for the20 same or substantially similar work on jobs in which their performance requires equal21 skill, effort, education, and responsibility and which are performed under similar22 working conditions including time worked in the position.23 B. No labor organization or its agent representing employees or an employer24 shall cause or attempt to cause an employer to discriminate against an employee in25 violation of this Chapter.26 C. Nothing in Subsection A or B of this Section shall prohibit the payment27 of different wage rates to employees where such payment is made pursuant to the28 following:29 HLS 13RS-681 ORIGINAL HB NO. 453 Page 3 of 7 CODING: Words in struck through type are deletions from existing law; words underscored are additions. (1) A seniority system.1 (2) A merit system.2 (3) A system that measures earnings by quantity or quality of production.3 (4) A differential based on a bona fide factor other than sex, such as4 education, training, or experience, except that this clause shall apply only to either5 of the following:6 (a) The employer demonstrates that such factor is job related with respect to7 the position in question.8 (b) The employer demonstrates that it furthers a legitimate business purpose,9 except if the employee demonstrates that an alternative employment practice exists10 that would serve the same business purpose without producing such differential and11 that the employer has refused to adopt such alternative practice and such factor was12 actually applied and used reasonably in light of the asserted justification.13 D. An employer who is paying wages in violation of this Chapter may not,14 to comply with this Chapter, reduce the wages of any other employee.15 E. It shall be unlawful for an employer to interfere with, restrain, or deny the16 exercise of, or attempt to exercise, any right provided pursuant to this Chapter. It17 shall be unlawful for any employer to discharge or in any other manner discriminate18 against any individual for inquiring about, disclosing, comparing, or otherwise19 discussing the employee's wages or the wages of any other employee, or aiding or20 encouraging any person to exercise his rights pursuant to this Chapter.21 F. It shall be unlawful for any person to discharge or in any other manner22 discriminate against any individual because the individual:23 (1) Has filed any charge or has instituted or caused to be instituted any24 proceeding pursuant to or related to this Chapter.25 (2) Has given or is about to give any information in connection with any26 inquiry or proceeding relating to any right provided pursuant to this Chapter.27 (3) Has testified or is about to testify in any inquiry or proceeding relating28 to any right provided pursuant to this Chapter.29 HLS 13RS-681 ORIGINAL HB NO. 453 Page 4 of 7 CODING: Words in struck through type are deletions from existing law; words underscored are additions. §665. Complaint procedure1 A. An employee who believes that an employer is in violation of this2 Chapter shall submit written notice of the violation to the employer. An employer3 who receives such written notice from an employee shall have sixty days from4 receipt of the notice to remedy any violation of this Chapter. If an employer5 remedies the violation within the time provided herein, the employee may not bring6 any action against the employer pursuant to this Chapter.7 B. If an employee fails to remedy a violation of this Chapter within the time8 provided herein, the employee may file a complaint with the commission requesting9 an investigation of the complaint pursuant to R.S. 51:2257.10 C. If the commission finds evidence of discriminatory action on the part of11 the employer, but fails to resolve the dispute, or fails to render a decision on the12 dispute, the employee may institute a civil suit in a district court of competent13 jurisdiction. The employee shall include in the suit a copy of the written notices14 received by the employer and the commission prior to the filing of this action, as15 well as any correspondence the employee received from the employer and the16 commission in response to the complaint.17 §666. Liquidated damages18 A. An employer who violates the provisions of this Chapter shall be liable19 to the affected employees in the amount of their unpaid wages and an additional20 amount of one-half of unpaid wages in liquidated damages as well as reasonable21 attorney fees and costs.22 B. In the event that such damages are appropriate, an employer who violates23 the provisions of this Chapter shall be liable to the affected employees for24 employment, reinstatement, promotion, and any benefits lost.25 C. The award of monetary relief shall be limited to those violations which26 have occurred within a thirty-six-month period prior to the employee's written notice.27 HLS 13RS-681 ORIGINAL HB NO. 453 Page 5 of 7 CODING: Words in struck through type are deletions from existing law; words underscored are additions. D. The plaintiff may not be awarded monetary relief for losses incurred1 between the time of the district court's final decision and the final determination of2 any higher appellate court, as the case may be.3 E. Interim earnings by the employee discriminated against shall operate to4 reduce the monetary relief otherwise allowable.5 F. Nothing in this Chapter prevents the settlement of a claim by agreement6 of the employer and employee for a lesser amount.7 G. An employee found by a court to have brought a frivolous claim under8 this Chapter shall be held liable to the defendant for reasonable damages incurred as9 a result of the claim, reasonable attorney fees, and court costs.10 §667. Limitation of actions11 A. Any action to recover unpaid wages and liquidated damages based on a12 violation as provided for in this Chapter shall be commenced within one year of the13 date that an employee knows that his employer is in violation of this Chapter.14 B. This one-year period shall be suspended during the ninety-day period in15 which the employer has to respond to the employee's written notice.16 §668. Records to be kept by employers17 An employer subject to any provision of this Chapter shall make and preserve18 records that document the name, address, occupation of each employee, and the19 wages paid to each employee. These records shall be preserved for a period of not20 less than three years.21 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. 453 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. HLS 13RS-681 ORIGINAL HB NO. 453 Page 6 of 7 CODING: Words in struck through type are deletions from existing law; words underscored are additions. Proposed law provides for definitions. 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. 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 60 days to remedy the violation. Proposed law further provides that if the employer remedies the violation within the 60 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 a complaint with the Louisiana Commission on Human Rights pursuant to present law (R.S. 51:2257 et seq.). Proposed law provides that if the commission fails to resolve the dispute, 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 ½ 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. HLS 13RS-681 ORIGINAL HB NO. 453 Page 7 of 7 CODING: Words in struck through type are deletions from existing law; words underscored are additions. 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)