2019 -- H 5917

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LC002152

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2019

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A N   A C T

RELATING TO LABOR AND LABOR RELATIONS -- WAGE FAIRNESS ACT

     Introduced By: Representatives Ruggiero, Donovan, Shekarchi, Blazejewski, and
Williams

     Date Introduced: March 28, 2019

     Referred To: House Labor

     It is enacted by the General Assembly as follows:

     SECTION 1. Legislative findings and intent.

     It is the intent of this general assembly to combat wage discrimination based on race,

color, religion, ethnicity, gender, national origin, sexual orientation, gender identity or expression,

disability or by age by closing the gaps in income inequity. Wage variance based on prior wage

history is one of the causes of wage discrimination for women and men. Salary history creates a

substantial probability that if a person is underpaid at their first job it will continue throughout

their career and this should not be a factor in setting compensation.

     SECTION 2. The title of Chapter 28-6 of the General Laws entitled "Wage

Discrimination Based on Sex" is hereby amended to read as follows:

CHAPTER 28-6

Wage Discrimination Based on Sex

CHAPTER 28-6

WAGE FAIRNESS ACT

     SECTION 3. Sections 28-6-17, 28-6-18 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.

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

     (b) "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.

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

indirectly.

     (d) "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.

     (e) "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, or commission basis, or other

method of calculating the amount, and includes benefits, but shall not include, gratuities as

defined in § 28-12-5 or overtime pay as defined in § 28-12-4.1. 

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

applicant's current employer and/or previous employer or employers. "Wage history" does not

include any objective measure of the applicant's productivity such as revenue, sales, or other

production reports.

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

protected characteristics 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 pay any of its employees at a wage rate

less than the rate paid to employees of another race, color, or gender for equal work, except where

the employer meets the standards set forth 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.

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     (d)(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. However, employees who have access to the

compensation information of other employees or applicants as a part of their essential job

functions cannot disclose the pay of other employees or applicants to individuals who do not

otherwise have access to compensation information, unless the disclosure is:

     (i) In response to a formal complaint or charge;

     (ii) In furtherance of an investigation, proceeding, hearing, or action, including an

investigation conducted by the employer; or

     (iii) Consistent with the employer's legal duty to furnish information.

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

     (3) Nothing in this section shall be construed to limit the rights of an employee provided

by any other provision of law or collective bargaining agreement.

     (e) No employer shall:

     (1) 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;

     (2) Rely on the wage history of an applicant for employment in determining the wages

such applicant is to be paid by the employer upon hire; provided, that an employer may rely on

wage history, if it is voluntarily, and without prompting, 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) Seek from an applicant for employment or their current or former employer the wage

history of the applicant; provided, however, that an employer may inquire about an applicant's

past performance as well as whether the applicant will have to forfeit deferred compensation or

unvested equity from their current employer and the value and structure of the deferred

compensation or unvested equity, request documentation to verify the applicant's representation,

and consider such information in making the applicant an offer. An employer may seek to

confirm an applicant's wage history only after 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.

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     (f) Subsection (e) of this section shall not apply to:

     (1) Any actions taken by an employer, employment agency, or employee or agent thereof

pursuant to any federal, state or local law that specifically authorizes the disclosure or verification

of salary history for employment purposes, or specifically requires knowledge of salary history to

determine an employee's compensation;

     (2) Applicants for internal transfer or promotion with their current employer;

     (3) Any attempt by an employer, employment agency, or employee or agent thereof, to

verify an applicant's disclosure of non-salary related information or conduct a background check;

provided, that if such verification or background check discloses the applicant's salary history,

such disclosure shall not be relied upon for purposes of determining the salary, benefits or other

compensation of such applicant during the hiring process, including the negotiation of a contract;

or

     (4) Public employee positions for which salary, benefits or other compensation are

determined pursuant to procedures established by collective bargaining.

     (g) Every employer subject to this chapter shall post in a conspicuous place or places on

its 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 the director deems necessary to explain this

chapter. Any employer who does not comply with the provisions of this section shall be punished

by a fine of not more than five hundred dollars ($500).

     28-6-21. 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) five hundred dollars ($500) or by imprisonment for

not more than six (6) months, or by both fine and imprisonment.

     SECTION 4. This act shall take effect on October 1, 2020.

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N   A C T

RELATING TO LABOR AND LABOR RELATIONS -- WAGE FAIRNESS ACT

***

     This wage fairness act would prohibit employers from asking job applicants about salary

history. It would also prohibit discrimination in payment of wages, and would allow employees to

discuss their salary with co-employees.

     This act would take effect on October 1, 2020.

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