2017 -- S 0583

========

LC000999

========

     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2017

____________

A N   A C T

RELATING TO LABOR AND LABOR RELATIONS -- FAIR EMPLOYMENT PRACTICES

     Introduced By: Senators Goldin, Goodwin, Sosnowski, Paiva Weed, and Coyne

     Date Introduced: March 15, 2017

     Referred To: Senate Labor

     It is enacted by the General Assembly as follows:

     SECTION 1. Legislative findings and intent. It is the intent of the general assembly to

combat wage discrimination based on sex by strengthening and closing gaps in existing wage

discrimination laws.

     SECTION 2. Sections 28-6-17, 28-6-18, 28-6-19, 28-6-20 and 28-6-21 of the General

Laws in Chapter 28-6 entitled "Wage Discrimination Based on Sex" are hereby amended to read

as follows:

     28-6-17. Definitions.

     As used in this chapter:

     (a)(1) "Director" means the director of labor and training.

     (b)(2) "Employee" as used in §§ 28-6-17 -- 28-6-21 means any person employed for hire

by any employer in any lawful employment, but does not include persons engaged in domestic

service in the home of the employer, or employees of any social club, fraternal, charitable,

educational, religious, scientific, or literary association, no part of the net earnings of which

inures to the benefit of any private individual suffered or permitted to work by an employer. For

the purposes of this chapter, and independent contractors and subcontractors shall not be

considered employees.

     (c)(3) "Employer" includes any person acting in the interest of an employer directly or

indirectly.

     (d)(4) "Employment" means any employment under contract of hire, expressed or

implied, written or oral, including all contracts entered into by helpers and assistants of

employees, whether paid by employer or employee, if employed with the knowledge, actual or

constructive, of the employer in which all or the greater part of the work is to be performed

within the state.

     (5) "Wage" means all amounts at which the labor or service rendered is recompensed,

whether the amount is fixed or ascertained on a time, task, piece, commission basis, or other

method of calculating the amount, and includes benefits.

     (6) "Wage history" means the wages paid to an applicant for employment by the

applicant's current employer and/or previous employer or employers.

     28-6-18. Wage differentials based on sex prohibited.

     (a) No employer shall discriminate in the payment of wages as between the sexes or shall

pay any female in his or her employ salary or wage rates less than the rates paid to male

employees for equal work or work on the same operations comparable work when viewed as a

composite of skill, effort, and responsibility, and performed under similar working conditions,

except where the employer meets the standards set forth out in subsection (b) of this section.

     (b) Nothing contained in this section shall prohibit a variation in rates of pay based upon

either difference in:

     (1) Seniority, experience, training, skill, or ability;

     (2) Duties and services performed, either regularly or occasionally;

     (3) The shift or time of day worked; or

     (4) Availability for other operations or any other reasonable differentiation except

difference in sex.

     (c) Except as provided in this section, any provision in any contract, agreement, or

understanding entered into after passage of this act establishing a variation in rates of pay as

between the sexes, shall be null and void.

     (b) A wage differential is permitted when the employer demonstrates:

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

     (i) A seniority system; provided, however, that time spent on leave due to a pregnancy-

related condition or parental, family and medical leave, shall not reduce seniority;

     (ii) A merit system;

     (iii) A system that measures earnings by quantity or quality of production, and the

employer demonstrates that the system is fair, and is not being used as a pretext for wage

differential based on sex;

     (iv) A bona fide factor other than sex such as education, training, or experience. This

LC000999 - Page 2 of 9

factor shall apply only if the employer demonstrates that the factor is:

     (A) Not based on or derived from a sex-based differential in compensation;

     (B) Is job-related with respect to the position in question; and

     (C) Is consistent with a business necessity. For purposes of this subsection, "business

necessity" means essential to effective job performance. 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 and that the employer has refused to

adopt such alternative practice.

     (2) Each factor is relied upon reasonably.

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

     (c) An individual's wage history cannot, by itself, justify an otherwise unlawful wage

differential.

     (d) An employer who discriminates in violation of this chapter shall not, in order to

comply with the provisions of this section, reduce the wage rate of any employee.

     (e) The agreement of an employee to work for less than the wage to which the employee

is entitled under this chapter is not a defense to an action under this chapter.

     (f)(1) No employer shall prohibit an employee from inquiring about, discussing, or

disclosing the wages of such employee or another employee, or retaliate against an employee who

engages in such activities. No employer shall require an employee to enter into a waiver or other

agreement that purports to deny an employee the right to disclose or discuss their wages. An

employer shall not prohibit an employee from aiding or encouraging any other employee to

exercise their rights under this subsection.

     (2) Nothing in this subsection shall require an employee to disclose their wages.

     (3) This subsection shall not apply in instances in which an employee who has access to

the wage information of other employees as a part of the employee's essential job functions

discloses the wages of other employees to individuals who do not otherwise have access to such

information, unless the disclosure is in response to a complaint or charge or in furtherance of an

investigation, proceeding, hearing, or action under this chapter, including an investigation

conducted by the employer.

     (4) Nothing in this section shall be construed to limit the rights of an employee under any

other provision of law or collective bargaining agreement.

     (g)(1) No employer shall rely on the wage history of an applicant for employment in

considering them for employment, including, but not limited to, requiring that an applicant's prior

wages satisfy minimum or maximum criteria as a condition of being considered for employment;

LC000999 - Page 3 of 9

     (2) No employer shall rely on the wage history of an applicant for employment in

determining the wages the applicant is to be paid by the employer upon hire; provided, that an

employer may rely on wage history if it is voluntarily provided by an applicant for employment,

after the employer makes an offer of employment with an offer of wages to the applicant, to

support a wage higher than the wage offered by the employer;

     (3) No employer shall seek from an applicant for employment or their current or former

employer the wage history of the applicant; provided, however, that an employer may seek to

confirm an applicant's wage history when an offer of employment with compensation has been

made to the applicant, and the applicant has responded to the offer by providing wage history to

support a wage higher than that offered by the employer. Under these circumstances, the

employer may only seek to confirm wage history after obtaining written authorization by the

applicant for employment to do so.

     (h) An employer shall provide an applicant for employment the wage range for the

position for which the applicant is applying upon the applicant's request. An employer shall

provide an employee the wage range for the employee's job title and for comparable jobs upon

hire and, thereafter, annually and upon request.

     (i) No employer shall discharge or in any other manner discriminate or retaliate against

any applicant for employment or employee because the applicant or employee has opposed a

practice made unlawful by this chapter, or because the applicant or employee has made a charge

or filed any complaint to the employer, the director of labor and training, or any other person,

under or related to §§28-6-17 through 28-6-21, or instituted or caused to be instituted any

investigation, proceeding, hearing, or action under or related to §§28-6-17 through 28-6-21, or

has testified or is planning to testify, or has assisted, or participated in any manner in any such

investigation, proceeding, or hearing under §§28-6-17 through 28-6-21. No employer shall

coerce, intimidate, threaten, or interfere with any individual in the exercise or enjoyment of, or on

account of them having exercised or enjoyed, or on account of their having aided or encouraged

any other individual in the exercise or enjoyment of, any right granted or protected by §§28-6-17

through 28-6-21.

     (j) Except as provided in this section, any provision in any contract, agreement, or

understanding entered into after passage of this chapter establishing a variation in rates of pay as

between the sexes, shall be null and void.

     (k) Posting of statutory provisions. – Every employer subject to this chapter shall post in

a conspicuous place or places on their premises a notice to be prepared or approved by the

director, which shall set forth excerpts of this chapter, and any other relevant information which

LC000999 - Page 4 of 9

the director deems necessary to explain the chapter. Any employer who does not comply with the

provisions of this section shall be punished by a fine of not less than one hundred dollars ($100),

nor more than five hundred dollars ($500).

     (l) Every employer shall keep a true and accurate record of hours worked and wages paid

each pay period to each employee in any form that may be prescribed by the director. The

employer shall keep the records on file for at least three (3) years after the entry of the record.

     28-6-19. Enforcement of provisions.

     (a) The director of labor and training shall have the power and it shall be his or her duty

to carry out the provisions of §§ 28-6-17 -- 28-6-21.

     (b) In carrying out these provisions, the director shall have the same powers and duties as

set forth in chapter 14 of title 28 to investigate, inspect, subpoena, and enforce through

administrative hearings complaints.

     (c) The director shall be entitled to the same rights and remedies set forth in chapter 14 of

title 28 for an employer's effort to obstruct the director, and authorized representatives in the

performance of their duties, or for any person's failure to comply with any lawfully issued

subpoena, or subpoena duces tecum, or on the refusal of any witness to testify to any matter

regarding which they may be lawfully interrogated.

     (d) An applicant for employment, employee, or former employee, for and on behalf of

themselves and other similarly situated individuals, or any organization representing such an

applicant, employee, or former employee, aggrieved by a violation of §28-6-18 may file a

complaint with the director of labor and training.

     (e) The department of labor and training and the commission for human rights shall

cooperate in the investigation of charges filed under this section when the allegations are

jurisdictional with both agencies.

     (f) All claims under this chapter must be filed with the director within three (3) years

after the discriminatory practice declared unlawful by §28-6-18. A discriminatory practice occurs

when a discriminatory compensation decision or other practice is adopted, when an individual

becomes subject to a discriminatory compensation decision or other practice, or when an

individual is affected by application of a discriminatory compensation decision or other practice,

including each time wages, benefits, or other compensation is paid, resulting in whole or in part

from such a decision or other practice.

     (g) For a violation of §§28-6-18(a) through (e), an aggrieved party shall be entitled to

recover any unpaid wages and/or benefits; compensatory damages; liquidated damages in an

amount up to three (3) times the amount of unpaid wages and/or benefits owed exclusive of

LC000999 - Page 5 of 9

interest; and where the aggrieved party demonstrates that the employer acted with malice or

reckless indifference, punitive damages as may be appropriate; as well as an award of appropriate

equitable relief, including reinstatement of employment, fringe benefits and seniority rights, and

reasonable attorneys' fees, expert fees and other litigation costs.

     (h) For a violation of §§28-6-18(f) through (i), an aggrieved party shall be entitled to

recover any compensatory damages; special damages not to exceed ten thousand dollars

($10,000); where the aggrieved party demonstrates that the employer acted with malice or

reckless indifference, punitive damages as may be appropriate; other equitable relief as may be

appropriate; and the costs of the action and reasonable attorney's fees. If special damages are

available, an aggrieved party may only recover compensatory damages to the extent such

damages exceed the amount of special damages.

     28-6-20. Civil liability of employer for sex differential -- Actions.

     An employer who violates the provisions of § 28-6-18 shall be liable to the employee or

employees affected in the amount of their unpaid wages, and in an additional equal amount of

liquidated damages. An action to recover the liability may be maintained in any court of

competent jurisdiction by any one or more employees for and in behalf of himself or herself or

themselves and other similarly situated employees. At the request of any employee paid less than

the wage to which he or she is entitled under §§ 28-6-17 -- 28-6-21, the director of labor and

training may take an assignment of the wage claim in trust for the assigning employee and may

bring any legal action necessary to collect the claim, and the liquidated damages provided for

above. The director of labor and training shall not be required to pay the filing fee or other costs

in connection with the action. The director of labor and training shall have the power to join

various claimants against the employer in one cause of action.

     (a) Any applicant for employment, employee, or former employee, for and on behalf of

themselves and other similarly situated individuals, or any organization representing the

applicant, employee, or former employee, aggrieved by a violation of §28-6-18, may file a civil

action in any court of competent jurisdiction to obtain relief. A civil action under this chapter

must be filed within three (3) years after the discriminatory practice declared unlawful by §28-6-

18. A discriminatory practice occurs when a discriminatory compensation decision or other

practice is adopted, when an individual becomes subject to a discriminatory compensation

decision or other practice, or when an individual is affected by application of a discriminatory

compensation decision or other practice, including each time wages, benefits, or other

compensation is paid, resulting in whole or in part from such a decision or other practice.

     (b) For a violation of §§28-6-18(a) through (e), an aggrieved party shall be entitled to

LC000999 - Page 6 of 9

recover any unpaid wages and/or benefits; compensatory damages; liquidated damages in an

amount up to three (3) times the amount of unpaid wages and/or benefits owed exclusive of

interest; and where the aggrieved party demonstrates that the employer acted with malice or

reckless indifference, punitive damages as may be appropriate; as well as an award of appropriate

equitable relief, including reinstatement of employment, fringe benefits and seniority rights, and

reasonable attorneys' fees, expert fees and other litigation costs.

     (c) For a violation of §§28-6-18(f) through (i), an aggrieved party shall be entitled to

recover any compensatory damages; special damages not to exceed ten thousand dollars

($10,000); where the aggrieved party demonstrates that the employer acted with malice or

reckless indifference, punitive damages as may be appropriate; other equitable relief as may be

appropriate; and the costs of the action and reasonable attorneys' fees. If special damages are

available, an aggrieved party may only recover compensatory damages to the extent such

damages exceed the amount of special damages.

     (d) An aggrieved applicant for employment, employee, or former employee may not file

a civil action under this section if they have also filed a complaint with the director of labor and

training and the director has issued a notice of an administrative hearing pursuant to §28-6-19.

     (e) The filing of a civil action under this section shall not preclude the director of labor

and training from investigating the matter and/or referring the matter to the attorney general.

     28-6-21. Penalty for violations Civil penalty for violations.

     Any employer who violates any provision of §§ 28-6-17 -- 28-6-21, or who discharges or

in any other manner discriminates against any employee because the employee has made any

complaint to his or her employer, the director of labor and training, or any other person, or

instituted or caused to be instituted any proceeding under or related to §§ 28-6-17 -- 28-6-21, or

has testified or is about to testify in any proceeding, shall, upon conviction, be punished by a fine

of not more than two hundred dollars ($200) or by imprisonment for not more than six (6)

months, or by both fine and imprisonment.

     (a) Any employer who violates §§28-6-18(a) - (b), in addition to any other relief to which

any department or any aggrieved party may be entitled for such a violation, shall be liable for a

civil penalty in an amount up to three (3) times the amount of the total wages found to be due,

exclusive of interest, which shall be payable directly to the aggrieved party. The order may

further direct that an administrative penalty be paid to the department of labor and training in the

amount up to one time the amount of the total wages found to be due.

     (b) In determining the amount of any penalty imposed under this section, the director or

the court shall consider the size of the employer's business, the good faith of the employer, the

LC000999 - Page 7 of 9

gravity of the violation, the history of previous violations, and whether or not the violation was an

innocent mistake or willful. Further, in determining an employer's good faith, the director or the

court should consider whether the failure to pay equal wages was made intentionally and on

purpose.

     (c) Any employer who violates §§28-6-18(c) through (f), shall, in addition to any other

relief to which any department or any aggrieved party may be entitled for such a violation shall

be liable for a fine of not more than two hundred dollars ($200).

     (d) At the request of any party aggrieved by a violation of §28-6-18 , the director of labor

and training may take an assignment of the claim in trust for the assigning aggrieved party and

may bring any legal action necessary to collect the claim, and the damages provided for above.

The director of labor and training shall not be required to pay the filing fee or other costs in

connection with the action. The director of labor and training shall have the power to join various

claimants against the employer in one cause of action.

     SECTION 3. This act shall take effect upon passage.

========

LC000999

========

LC000999 - Page 8 of 9

EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N   A C T

RELATING TO LABOR AND LABOR RELATIONS -- FAIR EMPLOYMENT PRACTICES

***

     This act would provide protections against wage differentials based upon the sex of the

employee. The act would also provide that where wage differentials do exist, employers must

justify said differentials based on bona fide factors other than sex. The act would further provide

that an aggrieved party shall be entitled to recover any unpaid wages and/or benefits,

compensatory damages, and liquidated damages in an amount up to three (3) times the amount of

unpaid wages and/or benefits owed, as well as an award of appropriate equitable relief, including

reinstatement of employment, fringe benefits and seniority rights.

     This act would take effect upon passage.

========

LC000999

========

LC000999 - Page 9 of 9