Citations Affected: IC 22-1; IC 34-11-2-13.
Synopsis: Equivalent jobs and wage discrimination. Provides that an
employer may not discriminate against an employee on the basis of sex,
race, or national origin by paying a wage less than the wage paid to an
employee of another sex, race, or national origin for work in an
equivalent job. Requires an employer to keep certain records of wages
paid to an employee and to provide certain documentation to the
employee, including an annual statement of how the wages were
calculated. Requires the department of labor to adopt rules, including
specification of certain criteria for determining whether a job is
dominated by employees of one sex, a particular race, or a particular
national origin. Allows an employee claiming wage discrimination to
file a complaint with the civil rights commission. Authorizes a civil
action against an employer that fails to comply with certain wage
reporting requirements or that takes certain discriminatory actions.
Provides for damages against the employer in certain circumstances.
Makes conforming changes.
Effective: Upon passage.
January 9, 2006, read first time and referred to Committee on Pensions and Labor.
A BILL FOR AN ACT to amend the Indiana Code concerning labor
income, profits, losses, expenditures, or any part thereof obtained
him the commissioner or other person in the discharge of his
(3) Except as otherwise provided by law, employ, promote, and remove clerks, inspectors, and other employees as needed or as the service of the department of labor may require, and with the approval of the governor, within the appropriation
provided, fix their compensation and to assign to them their
duties. Employees of the department are covered by IC 4-15-2.
(4) Promote the voluntary arbitration, mediation, and conciliation of disputes between employers and employees, for the purpose of avoiding strikes, lockouts, boycotts, blacklists, discrimination, and legal proceedings in matters of employment. The commissioner may appoint temporary boards of arbitration, provide for the payment of the necessary expenses of the boards, order reasonable compensation paid to each member engaged in arbitration, prescribe and adopt rules of procedure for arbitration boards, conduct investigations and hearings, publish reports and advertisements, and do all other things convenient and necessary to accomplish the purpose of this chapter. The commissioner may designate an employee of the department to act as chief mediator and may detail other employees, from time to time, to act as
assistants for the purpose of executing this chapter. Any employee
of the department who may act on a temporary board shall serve
without extra compensation.
particular race, or a particular national origin, at a rate or
compensation less than the rate or compensation at which the
employer pays to employees in an equivalent job that is
dominated by employees of the opposite sex, a different race,
or a dissimilar national origin.
Sec. 9. Notwithstanding section 8 of this chapter, an employer may pay different wages to employees if the payments are made under a:
(1) seniority or merit system;
(2) system that measures earnings by quantity or quality of production; or
(3) differential based on any other factor other than sex, race, or national origin.
Sec. 10. An employer that pays different wages in violation of section 8 of this chapter may not reduce the wages of an employee to comply with section 8 of this chapter.
Sec. 11. A labor organization or an agent of a labor organization representing employees subject to this chapter may not cause or attempt to cause an employer to discriminate against an employee in violation of section 8 of this chapter.
Sec. 12. The department shall adopt rules under IC 4-22-2 to implement this chapter. The rules must include criteria for determining whether a job is dominated by employees of one (1) sex, a particular race, or a particular national origin. The criteria for determination must include:
(1) whether the job has been formally classified or traditionally considered to be performed by:
(A) a man or a woman; and
(B) a Caucasian or a member of a minority race;
(2) whether there is a history of discrimination against women or individuals of a particular race or a particular national origin regarding wages, assignment, or access to jobs, or other terms or conditions of employment;
(3) the demographic composition of the workforce in equivalent jobs; and
(4) a determination of the geographic area used in determining market rates.
The rules must provide a time frame for retention of records by the employer concerning the wages paid to a specific employee and the method, system, calculations, and bases used to establish, adjust, and determine the wages paid to the employees of the employer. The rules must provide for protection of the privacy of employees
and must require that reports not include the names of employees
or other identifying information.
Sec. 13. (a) Upon commencement of an employee's employment and at least annually thereafter, an employer shall provide to the employee a written statement informing the employee of the job title of the employee, the employee's wage, and how the employee's wage is calculated.
(b) An employer shall make and preserve records, as required by rules adopted under section 12 of this chapter, that document the wages paid to employees and support the method, system, calculations, and bases used to establish, adjust, and determine the wage rates paid to employees.
(c) An employer shall preserve the records for the period required by rules adopted under section 12 of this chapter and shall make reports from the records as requested by the department.
Sec. 14. The department may use the information and data from reports submitted under section 13(c) of this chapter for statistical and research purposes, subject to IC 22-1-1-8(2).
Sec. 15. It is an unfair employment practice for an employer to:
(1) take adverse action or otherwise discriminate against an individual because the indivdual:
(A) has opposed an act or practice made unlawful by this chapter;
(B) has sought to enforce rights protected under this chapter; or
(C) has testified, assisted, or participated in an investigation, a hearing, or another proceeding to enforce this chapter; or
(2) discharge, discriminate against, coerce, intimidate, threaten, or interfere with an employee or another person because:
(A) the employee inquired about, disclosed, compared, or discussed the employee's wages or the wages of another employee; or
(B) the employee exercised, aided, or encouraged another person to exercise a right granted or protected by this chapter.
Sec. 16. An aggrieved person may file a complaint with the civil rights commission under IC 22-9-1-6(e) if the person alleges a discriminatory practice under section 8, 10, or 11 of this chapter. The civil rights commission shall determine whether the complaint
requires action to be taken under IC 22-9-1-6.
Sec. 17. (a) An aggrieved person alleging a violation of section 13(a), 15(1), or 15(2) of this chapter may file a civil action in a circuit or superior court in the county where the violation is alleged to have occurred.
(b) The department may file a civil action in a circuit or superior court in the county where a violation of section 13(b) or 13(c) of this chapter is alleged to have occurred.
(c) If the court finds against an employer in an action under this chapter, the court shall award the individual or the department reasonable compensatory and punitive damages if appropriate, reasonable attorney's fees, appropriate expert witness fees, interest on unpaid wages at the legal rate of interest, and costs of the action.
(d) If in an action under this chapter, the court finds against the employer for a violation of section 13(a), 13(b), or 13(c) of this chapter but within its ruling makes a finding that:
(1) no substantive violation of underlying law has been found; and
(2) the violation is the initial violation of section 13 of this chapter by the employer;
the court may not award any damages or any penalties to the prevailing party.
(e) A civil action under this chapter must be filed not later than two (2) years after the date of the last event constituting the alleged violation for which the action is brought.
(f) The procedures and requirements for an appeal under IC 22-9-8 apply to this chapter.