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 wages. 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 outlines penalties for violations of these requirements.

Furthermore, the bill modifies the affirmative defense provisions for employers facing claims of wage discrimination. It specifies 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, training, or experience. However, the employer must demonstrate that these factors are not derived from wage discrimination and are job-related, consistent with a business necessity. The bill clarifies that affirmative defenses are only applicable if they account for the entire pay differential in question.

Statutes affected:
Introduced: 216.6A