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2018 SESSION

18104684D
HOUSE BILL NO. 1089
Offered January 10, 2018
Prefiled January 10, 2018
A BILL to amend the Code of Virginia by adding in Chapter 3 of Title 40.1 an article numbered 1.2, consisting of sections numbered 40.1-28.13 through 40.1-28.17, and to repeal § 40.1-28.6 of the Code of Virginia, relating to the Virginia Equal Pay Act.
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Patrons-- Boysko, Ayala, Turpin, Bagby, Convirs-Fowler, Gooditis, Hope, Krizek, Levine, Mullin, Plum, Price, Rasoul, Rodman, Sickles, Simon and Tyler
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Referred to Committee on Commerce and Labor
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Be it enacted by the General Assembly of Virginia:

1. That the Code of Virginia is amended by adding in Chapter 3 of Title 40.1 an article numbered 1.2, consisting of sections numbered 40.1-28.13 through 40.1-28.17, as follows:

Article 1.2.
Virginia Equal Pay Act.

§ 40.1-28.13. Definitions.

As used in this article, unless the context requires a different meaning:

"Business necessity" means an overriding legitimate business purpose such that the factor relied upon effectively fulfills the business purpose it is supposed to serve.

"Protected class" means a group of persons distinguished by race, color, religion, sex, sexual orientation, national origin, marital status, veteran status, disability, or age.

§ 40.1-28.14. Discrimination prohibited; employee right to discuss wages; retaliation prohibited.

A. No employer shall discriminate between employees on the basis of membership in a protected class in the payment of wages or other compensation for substantially similar work, except where the employer demonstrates that:

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

a. A bona fide seniority system, provided that time spent on leave due to a pregnancy-related condition and protected parental, family, and medical leave shall not reduce seniority;

b. A bona fide merit system;

c. A bona fide system that measures earnings by quantity or quality of production;

d. Education, training, or experience to the extent that such factors are reasonably related to the particular job in question; or

e. Any other bona fide factor other than on the basis of membership in a protected class. This factor shall apply only if the employer demonstrates that the factor is not based on or derived from a protected class-based differential in compensation, is job related with respect to the position in question, and is consistent with a business necessity. 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;

2. Each factor relied upon is applied reasonably; and

3. The one or more factors relied upon account for the entire wage differential.

B. No employer shall discriminate between employees by providing less favorable employment opportunities on the basis of membership in a protected class by:

1. Assigning or directing the employee into a less favorable career track, if career tracks are offered, or position;

2. Failing to provide information about promotions or advancement in the full range of career tracks offered by the employer; or

3. Limiting or depriving an employee of employment opportunities that would otherwise be available to the employee but for the employee's membership in a protected class.

C. No employer shall limit an employee's right to discuss wages by:

1. Prohibiting an employee from inquiring about, discussing, or disclosing the wages of the employee or another employee;

2. Requiring an employee to sign a waiver or any other document that purports to deny the employee the right to disclose or discuss the employee's wages; or

3. Taking any adverse employment action against an employee for:

a. Inquiring about another employee's wages;

b. Disclosing the employee's own wages;

c. Discussing another employee's wages if those wages have been disclosed voluntarily;

d. Asking the employer to provide a reason for the employee's wages; or

e. Aiding or encouraging another employee's exercise of rights under this section.

D. No employer shall infringe on a prospective, current, or former employee's right to not disclose wage or salary history by:

1. Relying on the wage or salary history of a prospective employee in determining the wages or salary for such individual;

2. Seeking, requesting, or requiring the wage or salary history of a prospective employee or current or former employee as a condition to be interviewed, or as a condition of continuing to be considered for an offer of employment, or as a condition of employment or promotion;

3. Seeking, requesting, or requiring the wage or salary history of a prospective, current, or former employee from a current or former employer; or

4. Retaliating against in any way, including refusing to interview, hire, promote, or otherwise employ, a prospective, current, or former employee due to the employee's prior wage or salary history, the employee's lack of providing prior wage or salary history in accordance with this section, or the employee's filing of a complaint alleging a violation of this article.

E. No employer shall discharge or in any manner retaliate against any employee because the employee (i) opposed any act or practice made unlawful by this chapter; (ii) made or indicated an intent to make a complaint or otherwise caused to be instituted any proceeding under this chapter; or (iii) testified or is about to testify, assist, or participate in any manner in an investigation or proceeding under this article.

F. An employer who is paying a wage in violation of this article may not reduce another wage in order to comply with this chapter.

G. Nothing in this section shall be construed to (i) create an obligation to disclose wages or (ii) prevent a prospective, current, or former employee from voluntarily disclosing wage or salary history, including for the purposes of negotiating wages or salary.

§ 40.1-28.15. Requirements for advertisements; records.

A. Every employer shall include the following in a job advertisement to recruit candidates for hire or as independent contractors to fill a position within the organization: (i) the minimum rate of pay for the position advertised; (ii) whether the position is paid by the hour, shift, day, week, salary, piece, commission, or other pay; (iii) overtime pay, if any; (iv) and allowances, if any, claimed as part of the minimum wage, including tip, meal, or lodging allowances.

B. Every employer shall maintain records of the wages and wage rates, job classifications, and other terms and conditions of employment of the persons employed by the employer. Such records shall be kept on file for a period of three years.

§ 40.1-28.16. Rights of action under article.

A. For purposes of administration and enforcement, any amounts owed to any employee that have been withheld in violation of this article shall be deemed to be unpaid wages or unpaid overtime compensation, and the employee whose wages have been wrongfully withheld in violation of this article shall have a right of action therefor to recover:

1. The difference between the amount of wages paid and the maximum wage paid any other employee for substantially similar work;

2. Compensatory damages;

3. Punitive damages, if the violation is found to be intentional or committed with reckless indifference to the employee's rights under this chapter;

4. Reasonable attorney fees and costs; and

5. Any other legal and equitable relief as may be appropriate, including employment reinstatement and promotion.

B. Action to recover such wages, damages, and legal or equitable relief may be maintained in any court of competent jurisdiction by any one or more employees for and on behalf of himself or themselves and other employees similarly situated.

C. Any agreement between the employer and an employee to work for less than the wage to which such employee is entitled under this chapter shall not be a defense to an action. An employee's previous wage or salary history shall not be a defense to an action.

D. At the request of any employee paid less than the wage to which he is entitled under this article and due any damages as a result of a violation, the Commissioner may take an assignment of such wage and damages claim for collection and shall bring any legal action necessary to collect such claim. The Commissioner shall not be required to pay for the filing fee or other costs in connection with such action. The Commissioner shall have the power to join various claimants against the employer in one cause of action.

§ 40.1-28.17. Enforcement of article; civil penalties.

A. Any employer who violates this article is subject to the following civil penalties not to exceed (i) $2,500 for a first violation; (ii) $3,000 for a second violation; and (iii) $5,000 for a third or subsequent violation. In determining the amount of a civil penalty to be assessed, a court of competent jurisdiction shall consider the severity of the violation.

B. Every action under this article shall be brought within two years after the right to bring the same shall have accrued, unless the violation is a willful violation, in which case the action shall be brought within three years from the date of violation. For the purposes of this article, a violation occurs when:

1. A discriminatory wage decision or practice is adopted;

2. An individual is subject to a discriminatory wage decision or practice; or

3. An individual is affected by application of a discriminatory wage decision or practice, including each time wages paid result, in whole or in part, from a discriminatory wage decision or practice.

2. That § 40.1-28.6 of the Code of Virginia is repealed.