SENATE BILL No. 362
DIGEST OF INTRODUCED BILL
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 11, 2007, read first time and referred to Committee on Pensions and Labor.
First Regular Session 115th General Assembly (2007)
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between statutes enacted by the 2006 Regular Session of the General Assembly.
SENATE BILL No. 362
A BILL FOR AN ACT to amend the Indiana Code concerning labor
Be it enacted by the General Assembly of the State of Indiana:
SOURCE: IC 22-1-1-8; (07)IN0362.1.1. -->
SECTION 1. IC 22-1-1-8 IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE UPON PASSAGE]: Sec. 8. The commissioner of labor
may do the following:
(1) Make or cause to be made all necessary inspections to see that
all of the laws and rules enacted or adopted for that purpose and
that the department is required to enforce are promptly and
effectively administered and executed.
(2) Collect, collate, and publish statistical and other information
relating to working conditions in this state and to the enforcement
of this chapter and IC 22-1-6
and such rules as may be necessary
to the advancement of the purposes of this chapter, but no
publicity of any information involving the name or identity of any
employer, employee, or other person, firm, limited liability
company, or corporation shall be given. It shall be unlawful for
the commissioner or any person to divulge, or to make known in
any way not provided by law, to any
person the operation, style of
work, or apparatus of any employer, or the amount or sources of
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.
SOURCE: IC 22-1-6; (07)IN0362.1.2. -->
SECTION 2. IC 22-1-6 IS ADDED TO THE INDIANA CODE AS
CHAPTER TO READ AS FOLLOWS [EFFECTIVE UPON
Chapter 6. Wage Discrimination
Sec. 1. As used in this chapter, "department" refers to the
department of labor created by IC 22-1-1-1.
Sec. 2. (a) As used in this chapter, "employee" means an
individual employed by an employer.
(b) The term does not include an employee employed by an
employer for less than three (3) months.
Sec. 3. (a) As used in this chapter, "employer" means a person
employing six (6) or more employees within Indiana.
(b) The term does not include a nonprofit corporation or
association that is exempt from federal income taxation under
(2) 501(c)(4)(A); or
of the Internal Revenue Code.
Sec. 4. As used in this chapter, "equivalent jobs" means jobs or
occupations that are:
(1) equal within the meaning of the federal Equal Pay Act of
1963 (29 U.S.C. 206(d)); or
(2) dissimilar but whose qualifications are equivalent, when
viewed as a composite of:
(C) responsibility; and
(D) working conditions.
Sec. 5. As used in this chapter, "market rate" means the rate
that employers within a prescribed geographic area actually pay
or are reported to pay for specific jobs, as determined by:
(1) formal or informal survey;
(2) wage study; or
(3) other means.
Sec. 6. As used in this chapter, "person" means an individual, a
partnership, an association, an organization, a limited liability
company, a corporation, a labor organization, a cooperative, a
fiduciary trustee, a trustee in bankruptcy, a receiver, the state, a
municipal corporation (as defined in IC 36-1-2-10), or a legal
representative of any of these persons.
Sec. 7. As used in this chapter, "wages" means compensation in
a form that an employer provides to an employee in return for
work performed or services rendered, including:
(1) base pay;
(2) a bonus;
(3) a commission;
(4) an award;
(5) tips; or
(6) nonmonetary compensation if:
(A) it is provided instead of or in addition to monetary
(B) it has economic value to the employee.
Sec. 8. An employer may not discriminate among employees on
the basis of sex, race, or national origin by paying wages to
(1) at a rate or compensation less than the rate or
compensation paid to employees of the opposite sex, a
different race, or a dissimilar national origin for work in an
equivalent job; or
(2) in a job that is dominated by employees of one (1) sex, a
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
(1) seniority or merit system;
(2) system that measures earnings by quantity or quality of
(3) differential based on any factor other than sex, race, or
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. (a) 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.
(b) The rules must do the following:
(1) 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.
(2) Provide for protection of the privacy of employees and
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:
(1) the job title of the employee;
(2) the employee's wage; and
(3) 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:
(1) document the wages paid to employees; and
(2) support the method, system, calculations, and bases used
to establish, adjust, and determine the wage rates paid to
(c) An employer shall:
(1) preserve the records for the period required by rules
adopted under section 12 of this chapter; and
(2) make reports from the records as requested by the
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 a
person because the person:
(A) has opposed an act or practice made unlawful by this
(B) has sought to enforce rights protected under this
(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
(A) the employee inquired about, disclosed, compared, or
discussed the employee's wages or the wages of another
(B) the employee exercised or aided or encouraged another
person to exercise a right granted or protected by this
Sec. 16. An aggrieved employee 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 employee 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 aggrieved employee or the
(1) reasonable compensatory and punitive damages if
(2) reasonable attorney's fees;
(3) appropriate expert witness fees;
(4) interest on unpaid wages at the legal rate of interest; and
(5) 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 in its ruling makes a finding that:
(1) no substantive violation of underlying law has been found;
(2) the violation is the initial violation of section 13 of this
chapter by the employer;
the court may not award any damages to the prevailing party. The
court may award reasonable attorney's fees, appropriate expert
witness fees, interest on unpaid wages at the legal rate of interest,
and the costs of the action to the aggrieved employee or the
(e) A civil action under this chapter must be commenced 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.
SOURCE: IC 34-11-2-13; (07)IN0362.1.3. -->
SECTION 3. IC 34-11-2-13 IS ADDED TO THE INDIANA CODE
AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE
UPON PASSAGE]: Sec. 13. A civil action under IC 22-1-6 for a
violation of wage discrimination laws must be commenced not later
than two (2) years after the date of the last event constituting the
alleged violation in accordance with IC 22-1-6-17(e).
SOURCE: ; (07)IN0362.1.4. -->
SECTION 4. [EFFECTIVE UPON PASSAGE] (a)
Notwithstanding IC 22-1-6-12, as added by this act, the department
of labor shall carry out the duties imposed upon it under
IC 22-1-6-12, as added by this act, under interim written guidelines
approved by the commissioner of labor.
(b) This SECTION expires on the earlier of the following:
(1) The date rules are adopted under IC 22-1-6-12, as added
by this act.
(2) December 31, 2008.
SOURCE: ; (07)IN0362.1.5. -->
SECTION 5. An emergency is declared for this act.