Bill Text: HI HB1909 | 2016 | Regular Session | Introduced
Bill Title: Pay Equity; Gender Discrimination
Spectrum: Moderate Partisan Bill (Democrat 10-3)
Status: (Engrossed - Dead) 2016-03-15 - Re-Referred to JDL, WAM. [HB1909 Detail]
Download: Hawaii-2016-HB1909-Introduced.html
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HOUSE OF REPRESENTATIVES |
H.B. NO. |
1909 |
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TWENTY-EIGHTH LEGISLATURE, 2016 |
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STATE OF HAWAII |
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A BILL FOR AN ACT
relating to equal pay.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. The legislature finds that pay disparity persists between men and women who do similar work. The Institute for Women's Policy Research reports that if the pace of change continues at the same rate as it has since 1960, women and men will not reach pay parity until 2058.
The legislature further finds that action should be taken to encourage greater gender equality in the workplace. Since first enacting laws against employment discrimination based on sex decades ago, it has been the intent of the legislature to promote gender equality in the workplace. California has taken the initiative to improve equal pay by enacting the Fair Pay Act of 2015. Hawaii should follow suit to effect its intentions to promote gender equality in the work place and close the pay gap between men and women.
Existing Hawaii law generally prohibits an employer from paying an employee at wage rates less than the rates paid to employees of the opposite sex in the same establishment for equal work on jobs when the performance requires equal skill, effort, and responsibility, and the jobs are performed under similar working conditions.
The legislature finds that in 2014, the gender wage gap in Hawaii stood at 14.2 cents on the dollar. A woman working full-time and year-round earned an average of 85.8 cents to every dollar a man earned. This wage gap extends across almost all occupations reporting in Hawaii. The gap is far worse for women of color: African American women in Hawaii make only 73.4 cents for every dollar a white male makes; Latina women make only 61.3 cents for every dollar a white male makes; and Asian American women make only 73.3 cents for every dollar a white male makes.
While Hawaii's gender wage gap is lower than the national average of 79 cents to the dollar, the persistent disparity in earnings still has a significant impact on the economic security and welfare of thousands of working women and their families. Collectively, women working full-time in Hawaii lose approximately $1,673,175,520 each year due to the gender wage gap. The wage gap contributes to the higher statewide poverty rate among women, which stands at 11.7 per cent, compared to approximately seven per cent for men. The poverty rate for female-headed families is extremely high at 26.8 per cent, and 14.7 per cent of Hawaii's children live in poverty.
The legislature also finds that pay secrecy undermines efforts to close the pay gap. A 2010 Institute for Women's Policy Research/Rockefeller Survey of Economic Security reported that 23.1 per cent of private sector workers reported that discussion of wages and salaries was formally prohibited, and an additional 38.1 per cent reported that such discussion was discouraged by managers. Pay secrecy inhibits workers from pursuing claims of pay discrimination because women cannot challenge wage discrimination that they do not know exists. The federal government and many states have taken action to end wage secrecy by prohibiting retaliation against employees who discuss wages. Hawaii can also take this step by banning wage secrecy and banning retaliation against employees who disclose or discuss their wages.
The legislature finds that to eliminate the gender wage gap in Hawaii, the State's equal pay provisions and laws regarding wage disclosures must be improved. The purpose of this Act is to encourage equal pay between men and women by:
(1) Ensuring that employees performing substantially similar work are paid equally;
(2) Changing the requirement of "equal work" to "substantially similar work";
(3) Providing employer affirmative defenses in cases where pay differentials are caused by bona fide seniority systems, bona fide merit systems, and bona fide occupational qualifications;
(4) Ensuring that any legitimate, non-sex related factor relied upon are applied and operate in a non-discriminatory manner;
(5) Eliminating the "same establishment" provision, which prevented employees from being able to compare their salary to that of a coworker who did the same job in a different physical location; and
(6) Prohibiting retaliation or discrimination against employees who disclose, discuss, or inquire about their own or co-workers' wages for the purpose of exercising rights under the law.
SECTION 2. Section 378-2.3, Hawaii Revised Statutes, is amended to read as follows:
"[[]§378-2.3[]] Equal
pay; sex discrimination. (a) No employer shall discriminate
between employees because of sex, by paying wages to employees [in an
establishment] at a rate less than the rate at which the employer pays
wages to employees of the opposite sex [in the establishment] for [equal
work on jobs the performance of which requires equal] substantially
similar work in terms of skill, effort, and responsibility, [and that
are] performed under similar working conditions[. Payment differentials
resulting from:], except where the employer demonstrates the wage
differential is based upon one of the following factors:
(1) A bona fide seniority system; provided that it is established by a collective bargaining agreement, civil service requirement, or formal employer policy that treats employees who do substantially similar work equally;
(2) A bona fide merit system; provided that it is being operated and applied in a nondiscriminatory manner, and that it measures merit objectively and consistently across positions involving substantially similar work; or
[(3) A system that measures earnings by
quantity or quality of production;
(4)] (3) A bona fide occupational
qualification; [or] provided that it does not have a disparate impact
based on sex and that the qualification is necessary to the position.
[(5) A differential based on any other
permissible factor other than sex
do not violate this section.]
(b) An employer shall not prohibit an employee from disclosing the employee's wages, discussing and inquiring about the wages of other employees, or aiding or encouraging any other employee to exercise rights under this section."
SECTION 2. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.
SECTION 3. This Act shall take effect on July 1, 2016.
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INTRODUCED BY: |
_____________________________ |
Report Title:
Pay Equity; Gender Discrimination
Description:
Amends the provisions for equal pay and sex discrimination for substantially similar work. Clarifies the employer defenses. Prohibits employer actions regarding wage disclosure.
The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.
