HF 2373

3rd Engrossment - 88th Legislature (2013 - 2014) Posted on 03/31/2014 03:12pm

A bill for an act
relating to state government; requiring certificates of equal pay as a condition
for certain public contracts; classifying data; requiring a report; appropriating
money; amending Minnesota Statutes 2012, section 13.552, by adding a
subdivision; proposing coding for new law in Minnesota Statutes, chapter 363A.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Minnesota Statutes 2012, section 13.552, is amended by adding a
subdivision to read:

new text begin Subd. 7. new text end

new text begin Equal pay certificate of compliance. new text end

new text begin Access to data relating to equal pay
certificates of compliance is governed by section 363A.44.
new text end

Sec. 2.

new text begin [363A.44] EQUAL PAY CERTIFICATE OF COMPLIANCE.
new text end

new text begin Subdivision 1. new text end

new text begin Equal pay certificate of compliance. new text end

new text begin No department or agency of
the state may execute a contract in excess of $500,000 with a business that has 50 or more
full-time employees in this state or a state where the business has its primary place of
business on a single working day during the previous 12 months unless the business has
an equal pay certificate of compliance. This section does not apply to a contract with the
Department of Human Services for the primary purpose of providing health care services.
The commissioner shall issue an equal pay certificate of compliance to a business that
submits to the commissioner a statement that:
new text end

new text begin (1) its compensation policies or practices are based on the principle of equal pay
for equal work, and are in compliance with Title VII of the Civil Rights Act of 1964, the
Equal Pay Act of 1963, the Minnesota Human Rights Act, and the Minnesota Equal
Pay for Equal Work Law;
new text end

new text begin (2) its wage schedules and other compensation formulas are not related to, or based
on, the sex of its employees;
new text end

new text begin (3) it does not restrict employees of one sex to certain job classifications and makes
retention and promotion of qualified employees without regard to sex;
new text end

new text begin (4) its contributions to insurance, pensions, and other benefit plans are not related
to, or based on, the sex of its employees;
new text end

new text begin (5) for the job classes expected to perform work under the contract, within each of
the major job categories in the EEO-1 employee information report, the compensation for
its female employees is not consistently below the compensation for its male employees,
taking into account factors such as requirements of specific job classes within each major
category, length of service, experience, and market conditions.
new text end

new text begin Subd. 2. new text end

new text begin Application; issuance; duration. new text end

new text begin A business applying for a certificate
of compliance must pay a $150 fee to the commissioner. The commissioner must issue
a business an equal pay certificate of compliance, or a statement of why the application
was rejected, within 15 days of receipt of the application and the filing fee. An equal pay
certificate of compliance is valid for four years. Proceeds of the filing fee are appropriated
to the commissioner for purposes of this section.
new text end

new text begin Subd. 3. new text end

new text begin Conditions; audit. new text end

new text begin (a) As a condition of receiving an equal pay certificate
of compliance, and as a condition of the contract that is subject to this section, a business
must agree that:
new text end

new text begin (1) the commissioner may audit the business' compliance with this section; and
new text end

new text begin (2) the commissioner or the agency entering into the contract may void a contract if
the commissioner determines that the business is not in compliance with items specified in
subdivision 1, clauses (1) to (5).
new text end

new text begin (b) As a condition of receiving an equal pay certificate of compliance, and as a
condition of the contract that is subject to this section, a business must agree that as part of
an audit, the business will provide the commissioner the following information with respect
to employees in each of the major job categories in the EEO-1 employee information report:
new text end

new text begin (1) number of male employees;
new text end

new text begin (2) number of female employees;
new text end

new text begin (3) salaries paid to male employees and to female employees within each major
job category;
new text end

new text begin (4) information on performance payments, benefits, or other elements of
compensation, if requested by the commissioner as part of a determination as to whether
these elements of compensation are different for male and female employees;
new text end

new text begin (5) average length of service for male and female employees in each job category; and
new text end

new text begin (6) other information identified by the business or by the commissioner, as needed,
to determine compliance with items specified in subdivision 1, clauses (1) to (5).
new text end

new text begin Subd. 4. new text end

new text begin Compliance plan; revocation of certificate. new text end

new text begin If the commissioner
determines that a business that has an equal pay certificate of compliance is not in
compliance with subdivision 1, clauses (1) to (5), the commissioner may require the
business to implement an equal pay certificate of compliance plan as a condition of
retaining its certificate of compliance. The commissioner may suspend or revoke a
certificate if the commissioner determines that the business is not in compliance with
items specified in subdivision 1, clauses (1) to (5).
new text end

new text begin Subd. 5. new text end

new text begin Voiding of contract. new text end

new text begin Prior to taking action to void a contract, the
commissioner must first demonstrate that no undue hardship would occur to the state and
that obtaining wages and benefits due to employees of the business is an insufficient
remedy. Multiple violations of the law or evidence of deliberate intent to discriminate by
the certificate holder may be sufficient justification for the commissioner to void a contract.
new text end

new text begin Subd. 6. new text end

new text begin Administrative review. new text end

new text begin A business may obtain a hearing when the
commissioner issues an order directing a contract voided or an equal pay certificate of
compliance revoked by filing a written request for a hearing with the department within
20 days after service of the notice of sanction. The hearing shall be a contested case
proceeding pursuant to sections 14.57 to 14.69.
new text end

new text begin Subd. 7. new text end

new text begin Technical assistance. new text end

new text begin The commissioner must provide technical assistance
to any business that requests assistance.
new text end

new text begin Subd. 8. new text end

new text begin Access to data. new text end

new text begin Data submitted to the commissioner by a contractor or
potential contractor for purposes of obtaining a certificate of compliance under this section,
or in response to an audit under this section, are private data on individuals or nonpublic
data with respect to persons other than Department of Human Rights employees. The
commissioner's decision to grant, not grant, revoke, or suspend a certificate of compliance
is public data.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2014, and applies to a
contract for which a state department or agency issues a solicitation on or after that date.
new text end

Sec. 3. new text begin REPORT.
new text end

new text begin The commissioner of human rights shall report to the governor and the chairs and
ranking minority members of the committees in the senate and the house of representatives
with primary jurisdiction over the department by January 31, 2016. The report shall
indicate the number of equal pay certificates issued, the number of audits conducted, and a
summary of its auditing efforts. The commissioner shall consult with the Office on the
Economic Status of Women in preparing the report.
new text end