SENATE BILL NO. 332

A bill to amend 1976 PA 453, entitled

"Elliott-Larsen civil rights act,"

by amending section 209 (MCL 37.2209) and by adding section 209a.

the people of the state of michigan enact:

Sec. 209. A contract to which the this state , or a political subdivision , or an agency thereof of this state is a party shall must contain a covenant by the contractor and his subcontractors not to discriminate against an employee or applicant for employment with respect to hire, tenure, terms, conditions, or privileges of employment, or a matter directly or indirectly related to employment, because of race, color, religion, national origin, age, sex, height, weight, or marital status. Breach of this covenant or failure to comply with section 209a may be regarded as a material breach of the contract.

Sec. 209a. (1) This state or a political subdivision or agency of this state shall not enter into a contract described in section 209 for more than $500,000.00 with a business that had 40 or more full-time employees in this state on any day during the previous 12 months unless the business submits an equal pay certificate or certifies in writing that it is exempt under subsection (2).

(2) This section does not apply to any of the following:

(a) A business with respect to a specific contract if the state purchasing director or the equivalent purchasing officer for a local unit of government determines that application of this section would cause undue hardship to the contracting entity.

(b) A contract for vocational training or a contract for goods or services provided by any of the following:

(i) A health insurer regulated under the insurance code of 1956, 1956 PA 218, MCL 500.100 to 500.8302.

(ii) An insurer created under the nonprofit health care corporation reform act, 1980 PA 350, MCL 550.1101 to 550.1704.

(iii) A program for medical assistance established under title XIX of the social security act, 42 USC 1396 to 1396w-5.

(iv) A nursing home licensed under article 17 of the public health code, 1978 PA 368, MCL 333.20101 to 333.22260.

(3) The department shall issue an equal pay certificate to a business that pays a $150.00 filing fee and submits an equal pay compliance statement as described in this section. An equal pay certificate issued by the department is valid for 4 years. The proceeds from the fees collected under this subsection must be deposited in an equal pay certificate special revenue account in the state treasury. Money in the account is appropriated to the department for the purposes of issuing equal pay certificates. An equal pay compliance statement must be signed by the chairperson of the board or chief executive officer of the business certifying all of the following:

(a) The business is in compliance with all of the following:

(i) Title VII of the civil rights act of 1964, 42 USC 2000e to 2000e-17.

(ii) 29 USC 206(d).

(iii) Section 556 of the Michigan penal code, 1931 PA 328, MCL 750.556.

(b) There is not an appreciable difference between the average compensation of its female and male employees within each of the major job categories in the EEO-1 employee information report for which an employee is expected to perform work under the contract, taking into account factors such as length of service, requirements of specific jobs, experience, skill, effort, responsibility, working conditions of the job, or other mitigating factors.

(c) The business does not restrict employees of a certain sex to certain job classifications and makes retention and promotion decisions without regard to sex.

(d) Wage and benefit disparities are corrected when identified to ensure compliance with the laws cited in subdivision (a) and with subdivision (b).

(e) The interval at which the business evaluates wages and benefits to ensure compliance with the laws cited in subdivision (a) and with subdivision (b).

(4) The equal pay compliance statement must also indicate which of the following the business utilizes in setting compensation and benefits:

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