HB295 By Representatives Clarke, Alexander, Drummond, Warren, Givan, Forte, Melton, Morrow, Beech, McCampbell, Knight, Lawrence, Scott, Buskey, Grimsley, Boyd, Black, Hall, Daniels, Bracy, Moore (M), Rogers, Robinson, Ford, McClammy, England, Bandy and Howard RFD Commerce and Small Business Rd 1 24-FEB-16

SYNOPSIS: Existing federal law requires employers to pay men and women equally for doing the same work.

This bill would prohibit an employer from paying any of its employees at wage rates less than those paid to employees of the opposite sex for substantially similar work when viewed as a composite of skill, effort, and responsibility, as specified.

This bill would allow the employer to affirmatively demonstrate that a wage differential is based upon one or more specified factors, including a seniority system, a merit system, a system that measures earnings by quantity or quality of production, or a bona fide factor other than sex, as specified.

This bill would also require the employer to demonstrate that each factor relied upon is applied reasonably and that the one or more factors relied upon account for the entire differential.

This bill would prohibit an employer from discharging, or in any manner discriminating or retaliating against, any employee by reason of any action taken by the employee to invoke or assist in any manner the enforcement of these provisions.

This bill would allow an employee who has been discharged, discriminated against, or retaliated against because of wage inequality to file a complaint with the Alabama Department of Labor and to provide the procedure for an investigation of the complaint.

This bill would require the department to enforce its provisions.

This bill would provide that an employer may not prohibit an employee from disclosing the employee's own wages, discussing the wages of others, inquiring about another employee's wages, or aiding or encouraging any other employee to exercise his or her rights under these provisions.

This bill would require an employer to maintain a record of wages paid to his or her employee for a certain amount of time.

A BILL TO BE ENTITLED AN ACT

Relating to wages; to prohibit an employer from paying any of its employees at wage rates less than those paid to employees of the opposite sex for substantially similar work; to require an employer to affirmatively demonstrate that a wage differential is based upon one or more specified factors; to prohibit an employer from discharging or in any manner discriminating against or retaliating against an employee for the enforcement of these provisions; to provide for enforcement of the bill; to provide that an employer may not prohibit an employee from disclosing the employee's own wages, discussing the wages of others, inquiring about another employee's wages, or aiding or encouraging any other employee to exercise his or her rights under these provisions; and to require an employer to maintain a record of wages paid to his or her employee for a certain amount of time.

BE IT ENACTED BY THE LEGISLATURE OF ALABAMA:

Section 1. (a) An employer may not pay any of its employees at wage rates less than the rates paid to employees of the opposite sex for substantially similar work, when viewed as a composite of skill, effort, and responsibility, and performed under similar working conditions, except where the employer demonstrates:

(1) The wage differential is based upon one or more of the following factors:

a. A seniority system.

b. A merit system.

c. A system that measures earnings by quantity or quality of production.

d. A bona fide factor other than sex, such as education, training, or experience. This factor shall apply only if the employer demonstrates that the factor is not based on or derived from a sex-based differential in compensation, is job-related with respect to the position in question, and is consistent with a business necessity. For purposes of this subparagraph, "business necessity" means an overriding legitimate business purpose such that the factor relied upon effectively fulfills the business purpose it is supposed to serve. This defense shall not apply if the employee demonstrates that an alternative business practice exists that would serve the same business purpose without producing the wage differential.

(2) Each factor relied upon is applied reasonably.

(3) The one or more factors relied upon account for the entire wage differential.

(b) Any employer who violates subsection (a) is liable to the employee affected in the amount of the wages, and interest thereon, of which the employee is deprived by reason of the violation, and an additional equal amount as liquidated damages.

(c) The Alabama Department of Labor shall administer and enforce this section. If the department finds that an employer has violated this section, it may supervise the payment of wages, interest, and damages found to be due and unpaid to employees under this section.

(d) Every employer shall maintain records of the wages and wage rates, job classifications, and other terms and conditions of employment of the persons employed by the employer. All of the records shall be kept on file for a period of three years.

(e) If an employee recovers amounts due the employee under subsection (b), and also files a complaint or brings an action under subsection (d) of Section 206 of Title 29 of the United States Code which results in an additional recovery under federal law for the same violation, the employee shall return to the employer the amounts recovered under subsection (b), or the amounts recovered under federal law, whichever is less.

(f)(1) An employer may not discharge, or in any manner discriminate against or retaliate against, any employee by reason of any action taken by the employee to invoke or assist in any manner the enforcement of this section. An employer may not prohibit an employee from disclosing the employee's own wages, discussing the wages of others, inquiring about another employee's wages, or aiding or encouraging any other employee to exercise his or her rights under this section. Nothing in this section creates an obligation to disclose wages.

(2) Any employee who has been discharged, discriminated against or retaliated against, in the terms and conditions of his or her employment because the employee engaged in any conduct delineated in this section may recover in a civil action reinstatement and reimbursement for lost wages and work benefits caused by the acts of the employer, including interest thereon, as well as appropriate equitable relief.

(3) A civil action brought under this subsection may be commenced no later than one year after the cause of action occurs.

Section 2. This act shall become effective on the first day of the third month following its passage and approval by the Governor, or its otherwise becoming law.

Business and Labor

Discrimination

Employment

Compensation