ARIZONA STATE SENATE
Phoenix, Arizona
employment; equal
wages
Adds compensatory and punitive damages to the damages which may be recovered by an employee in a wage discrimination lawsuit, and expands such suits to cover discrimination based on race. Creates an Equal Pay Committee to study and report on the factors for wage disparity based on gender and race in the both public and private sectors.
Current Arizona statute prohibits wage discrimination based on sex. Wage discrimination based on race, however, is not addressed in Arizona statute. Two federal laws protect workers against wage discrimination. The Equal Pay Act of 1963 prohibits unequal pay for equal or substantially equal work performed by men and women. Title VII of the Civil Rights Act of 1964 prohibits wage discrimination on the basis of race, color, sex, religion or national origin. According to the National Committee on Pay Equity, seven states have statutes addressing equal pay for both race and gender.
According to the National Conference of State Legislatures, several states utilize differing forms of equal pay commissions to study and report on the implementation of gender and/or race wage discrimination prohibition in the public and/or private sector. Furthermore, the Center for Policy Alternatives (CPA) has drafted model legislation aimed at reducing the wage gap based on race and gender. The model legislation also institutes an equal pay committee to address the problem of unequal pay. According to CPA, 13 states, including Arizona, are considering legislation based on this model. S.B. 1278 incorporates several provisions of the model legislation including creation of an Equal Pay Committee, a prohibition against wage discrimination based on race, the stipulation that employers found liable for wage discrimination may be responsible for compensatory and punitive damages in addition to a penalty paid to the Industrial Commission (Commission).
There may be a fiscal impact associated with the provision of this bill relating to the reimbursement of expenses for members on the Equal Pay Committee.
Provisions
Equal
Pay Committee
1. Establishes a nine-member Equal Pay Committee (Committee) to study specified factors for, and consequences of, wage disparities based on gender and race in both the public and private sectors and its impact on families and the economy.
2. Prescribes the membership of the Committee.
3. Requires the Committee to submit an annual report of its findings and recommendations to the Governor and Legislature by December 10 of each year.
4. Limits the terms of office of the Committee members to three years and two consecutive terms.
5. Qualifies members of the Committee for reimbursements of expenses only.
6. Requires the Commission to provide staff and support services to the Committee.
7. Requires the Governor to appoint members no later than ninety days after the general effective date.
8. Specifies the initial terms of the appointed members and requires the Governor to make subsequent appointments.
9. Expands, to discrimination based on race, the prohibition on wage discrimination.
10. Entitles employees who have been violated under equal wage rate statute to recover compensatory and punitive damages from their employer in a civil action.
11. Requires employers found liable under equal wage rate statute to pay a penalty to the Commission equal to ten percent of the total damages awarded to the employee. Requires the Commission to deposit the penalties collected in the newly established equal wage fund.
12. Establishes the equal wage fund consisting of penalties received by the Commission resulting from wage discrimination. Authorizes the Commission to use the monies in the equal wage fund to administer and enforce wage discrimination provisions. Monies are non-lapsing and the fund is continuously appropriated.
13. Makes technical and conforming changes.
14. Provides for a general effective date.
Prepared by Senate Staff
February 15, 2002