1 | 1 | | 85R7081 JSC-D |
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2 | 2 | | By: Johnson of Dallas H.B. No. 290 |
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3 | 3 | | Substitute the following for H.B. No. 290: |
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4 | 4 | | By: Collier C.S.H.B. No. 290 |
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5 | 5 | | |
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6 | 6 | | |
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7 | 7 | | A BILL TO BE ENTITLED |
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8 | 8 | | AN ACT |
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9 | 9 | | relating to a prohibition on sex discrimination in compensation. |
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10 | 10 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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11 | 11 | | SECTION 1. Subchapter C, Chapter 21, Labor Code, is amended |
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12 | 12 | | by adding Section 21.1061 to read as follows: |
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13 | 13 | | Sec. 21.1061. SEX DISCRIMINATION IN COMPENSATION. For |
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14 | 14 | | purposes of this chapter, a violation of Chapter 24 is considered to |
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15 | 15 | | be discrimination on the basis of sex. |
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16 | 16 | | SECTION 2. Subtitle A, Title 2, Labor Code, is amended by |
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17 | 17 | | adding Chapter 24 to read as follows: |
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18 | 18 | | CHAPTER 24. EMPLOYMENT DISCRIMINATION REGARDING COMPENSATION |
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19 | 19 | | Sec. 24.001. DEFINITIONS. In this chapter: |
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20 | 20 | | (1) "Applicant" means a person who has made an oral or |
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21 | 21 | | written application with an employer, or has sent a resume or other |
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22 | 22 | | correspondence to an employer, indicating an interest in |
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23 | 23 | | employment. |
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24 | 24 | | (2) "Commission" means the Texas Workforce |
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25 | 25 | | Commission. |
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26 | 26 | | (3) "Employee" and "employer" have the meanings |
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27 | 27 | | assigned by Section 21.002. |
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28 | 28 | | (4) "Wages" has the meaning assigned by Section |
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29 | 29 | | 61.001. |
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30 | 30 | | Sec. 24.002. EMPLOYER INQUIRIES INTO AND CONSIDERATION OF |
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31 | 31 | | WAGE HISTORY INFORMATION. (a) An employer may not: |
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32 | 32 | | (1) include a question regarding an applicant's wage |
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33 | 33 | | history information on an employment application form; |
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34 | 34 | | (2) inquire into or consider an applicant's wage |
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35 | 35 | | history information; or |
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36 | 36 | | (3) obtain an applicant's wage history information |
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37 | 37 | | from a previous employer of the applicant, unless the wages in that |
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38 | 38 | | previous employment position are subject to disclosure under |
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39 | 39 | | Chapter 552, Government Code. |
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40 | 40 | | (b) Notwithstanding Subsection (a), an applicant may |
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41 | 41 | | provide written authorization to a prospective employer to confirm |
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42 | 42 | | the applicant's wage history, including benefits or other |
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43 | 43 | | compensation, only after the prospective employer has made a |
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44 | 44 | | written offer of employment to the applicant that includes the |
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45 | 45 | | applicant's wage and benefit information for the position. |
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46 | 46 | | Sec. 24.003. PROHIBITION AGAINST DISCRIMINATION IN WAGES. |
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47 | 47 | | (a) For purposes of this section, "business necessity" means an |
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48 | 48 | | overriding legitimate business purpose such that the factor relied |
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49 | 49 | | upon in determining wage differential effectively fulfills the |
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50 | 50 | | business purpose the factor is intended to serve. |
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51 | 51 | | (b) An employer commits an unlawful employment practice in |
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52 | 52 | | violation of this chapter and Chapter 21 if the employer |
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53 | 53 | | discriminates among employees on the basis of sex by paying wages to |
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54 | 54 | | an employee at a rate less than the rate at which the employer pays |
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55 | 55 | | wages to another employee of the opposite sex for the same or |
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56 | 56 | | substantially similar work on jobs, the performance of which |
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57 | 57 | | requires equal or substantially similar skill, effort, and |
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58 | 58 | | responsibility, and which are performed under similar working |
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59 | 59 | | conditions, except where the payment is made under one of the |
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60 | 60 | | following factors: |
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61 | 61 | | (1) a seniority system; |
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62 | 62 | | (2) a merit system; |
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63 | 63 | | (3) a system that measures earnings by quantity or |
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64 | 64 | | quality of production; or |
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65 | 65 | | (4) a differential based on a bona fide factor other |
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66 | 66 | | than sex. |
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67 | 67 | | (c) A seniority system described by Subsection (b)(1) may |
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68 | 68 | | not deduct from the employee's service time any leave that the |
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69 | 69 | | employee took under the Family and Medical Leave Act of 1993 (29 |
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70 | 70 | | U.S.C. Section 2601 et seq.) or other applicable family or medical |
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71 | 71 | | leave to which the employee is entitled. |
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72 | 72 | | (d) The exception provided by Subsection (b)(4) applies |
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73 | 73 | | only if the employer demonstrates that the factor: |
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74 | 74 | | (1) is not based on or derived from a differential |
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75 | 75 | | based on sex in compensation; |
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76 | 76 | | (2) is related to the position in question; and |
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77 | 77 | | (3) is consistent with business necessity. |
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78 | 78 | | (e) Notwithstanding Subsection (d), the exception provided |
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79 | 79 | | by Subsection (b)(4) does not apply if the employee demonstrates |
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80 | 80 | | that an alternative business practice exists that would serve the |
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81 | 81 | | same business purpose without producing a wage differential. |
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82 | 82 | | (f) An employer may not enter into an agreement with an |
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83 | 83 | | employee that provides that the employer may pay the employee a wage |
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84 | 84 | | at a rate that is in violation of this section. |
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85 | 85 | | Sec. 24.004. OTHER PROHIBITED ACTS. (a) An employer |
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86 | 86 | | commits an unlawful employment practice in violation of this |
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87 | 87 | | chapter and Chapter 21 if the employer: |
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88 | 88 | | (1) takes an adverse action or otherwise discriminates |
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89 | 89 | | against a person because the person has: |
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90 | 90 | | (A) opposed an act or practice made unlawful by |
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91 | 91 | | this chapter; |
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92 | 92 | | (B) sought to enforce rights protected under this |
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93 | 93 | | chapter; or |
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94 | 94 | | (C) testified, assisted, or participated in any |
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95 | 95 | | manner in an investigation, hearing, or other proceeding to enforce |
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96 | 96 | | this chapter; or |
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97 | 97 | | (2) discharges or in any other manner discriminates |
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98 | 98 | | against, coerces, intimidates, threatens, or interferes with an |
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99 | 99 | | employee or other person because the person: |
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100 | 100 | | (A) inquired about, disclosed, compared, or |
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101 | 101 | | otherwise discussed an employee's wages; or |
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102 | 102 | | (B) exercised or enjoyed, or aided or encouraged |
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103 | 103 | | another person to exercise or enjoy, any right granted or protected |
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104 | 104 | | by this chapter. |
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105 | 105 | | (b) This section does not require an employee to disclose |
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106 | 106 | | the employee's wages. |
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107 | 107 | | Sec. 24.005. NOTICE BY EMPLOYER REQUIRED. Each employer |
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108 | 108 | | shall post in conspicuous places on the premises of the employer |
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109 | 109 | | where notices to employees and applicants for employment are |
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110 | 110 | | customarily posted a notice, prepared or approved by the |
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111 | 111 | | commission, setting forth the pertinent provisions of this chapter |
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112 | 112 | | and information relating to the enforcement of this chapter. |
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113 | 113 | | Sec. 24.006. COMPLAINT; ENFORCEMENT. (a) A person |
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114 | 114 | | aggrieved by an unlawful employment practice under this chapter may |
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115 | 115 | | file a complaint with the commission. A complaint filed under this |
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116 | 116 | | section is subject to Subchapters E and F, Chapter 21. |
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117 | 117 | | (b) The commission shall enforce this chapter in accordance |
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118 | 118 | | with Chapter 21. |
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119 | 119 | | Sec. 24.007. EMPLOYER SELF-EVALUATION; AFFIRMATIVE |
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120 | 120 | | DEFENSE. (a) An employer is encouraged to periodically perform a |
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121 | 121 | | self-evaluation of the employer's business practices and |
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122 | 122 | | compensation to ensure that the employer is in compliance with this |
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123 | 123 | | chapter. |
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124 | 124 | | (b) In a civil action filed under Subchapter F, Chapter 21, |
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125 | 125 | | by a person aggrieved by an unlawful employment practice under this |
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126 | 126 | | chapter, it is an affirmative defense to liability for compensatory |
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127 | 127 | | or punitive damages under Section 21.2585 that: |
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128 | 128 | | (1) the employer performed a self-evaluation of the |
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129 | 129 | | employer's business practices and compensation in the three-year |
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130 | 130 | | period preceding the date of the conduct that is the basis of the |
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131 | 131 | | complaint; and |
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132 | 132 | | (2) the employer has in good faith demonstrated that, |
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133 | 133 | | following the date of the evaluation under Subdivision (1), the |
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134 | 134 | | employer has made reasonable progress toward eliminating |
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135 | 135 | | compensation differentials based on sex. |
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136 | 136 | | (c) This section does not require an employer to perform a |
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137 | 137 | | self-evaluation or subject an employer to any penalty for failing |
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138 | 138 | | to perform a self-evaluation. |
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139 | 139 | | Sec. 24.008. WAGE RECORDS REQUIREMENT. Each employer shall |
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140 | 140 | | compile and maintain for a period of at least three years records |
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141 | 141 | | that contain: |
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142 | 142 | | (1) the wage paid to each employee; and |
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143 | 143 | | (2) the method, system, computations, and other |
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144 | 144 | | factors used to establish, adjust, and determine the wage rates |
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145 | 145 | | paid to the employee. |
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146 | 146 | | SECTION 3. The changes in law made by this Act apply only to |
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147 | 147 | | an unlawful employment practice with regard to discrimination in |
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148 | 148 | | payment of compensation that occurs on or after January 1, 2018. |
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149 | 149 | | SECTION 4. This Act takes effect January 1, 2018. |
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