The Pay Transparency and Fairness Act amends the Iowa Civil Rights Act of 1965 to address wage discrimination by establishing new unfair or discriminatory practices related to employee compensation. Key provisions include prohibiting employers from requiring employees to refrain from discussing their wages or the wages of others, seeking salary history from potential employees, and releasing salary history without written consent. Additionally, employers must include the minimum rate of pay in job advertisements and cannot pay newly hired employees less than the advertised rate.

The bill also modifies the affirmative defense provisions for employers facing claims of wage discrimination. It clarifies that an employer can defend against such claims if the pay differential is based on bona fide factors unrelated to prohibited discrimination, such as education or experience, provided that these factors are job-related and consistent with a business necessity. The bill emphasizes that these defenses must account for the entire pay differential in question, ensuring that wage discrimination is effectively addressed and penalized under the law.

Statutes affected:
Introduced: 216.6A