SENATE BILL No. 338

 

 

May 21, 2019, Introduced by Senators BAYER, MOSS, POLEHANKI, ALEXANDER, WOJNO, GEISS, IRWIN, MCMORROW, HERTEL, BRINKS, HOLLIER, MCCANN, BULLOCK, SANTANA, ANANICH and CHANG and referred to the Committee on Government Operations.

 

 

 

     A bill to amend 1976 PA 453, entitled

 

"Elliott-Larsen civil rights act,"

 

by amending section 209 (MCL 37.2209) and by adding section 209a.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 209. A contract to which the this state , or a political

 

subdivision , or an agency thereof of this state is a party shall

 

must contain a covenant by the contractor and his subcontractors

 

not to discriminate against an employee or applicant for employment

 

with respect to hire, tenure, terms, conditions, or privileges of

 

employment, or a matter directly or indirectly related to

 

employment, because of race, color, religion, national origin, age,

 

sex, height, weight, or marital status. Breach of this covenant or

 

failure to comply with section 209a may be regarded as a material

 

breach of the contract.

 


     Sec. 209a. (1) This state or a political subdivision or agency

 

of this state shall not enter into a contract described in section

 

209 for more than $500,000.00 with a business that had 40 or more

 

full-time employees in this state on any day during the previous 12

 

months unless the business submits an equal pay certificate or

 

certifies in writing that it is exempt under subsection (2).

 

     (2) This section does not apply to a business with respect to

 

a specific contract if the state purchasing director or the

 

equivalent purchasing officer for a local unit of government

 

determines that application of this section would cause undue

 

hardship to the contracting entity. This section does not apply to

 

a contract for vocational training or a contract for goods or

 

services provided by a health insurer regulated under the insurance

 

code of 1956, 1956 PA 218, MCL 500.100 to 500.8302; by an insurer

 

created under the nonprofit health care corporation reform act,

 

1980 PA 350, MCL 550.1101 to 550.1704; by a program for medical

 

assistance established under title XIX of the social security act,

 

42 USC 1396 to 1396w-5; or by a nursing home licensed under article

 

17 of the public health code, 1978 PA 368, MCL 333.20101 to

 

333.22260.

 

     (3) The department shall issue an equal pay certificate to a

 

business that pays a $150.00 filing fee and submits an equal pay

 

compliance statement as described in this section. An equal pay

 

certificate issued by the department is valid for 4 years. The

 

proceeds from the fees collected under this subsection must be

 

deposited in an equal pay certificate special revenue account in

 

the state treasury. Money in the account is appropriated to the


department for the purposes of issuing equal pay certificates. An

 

equal pay compliance statement must be signed by the chairperson of

 

the board or chief executive officer of the business certifying all

 

of the following:

 

     (a) The business is in compliance with title VII of the civil

 

rights act of 1964, 42 USC 2000e to 2000e-17; 29 USC 206(d); and

 

section 556 of the Michigan penal code, 1931 PA 328, MCL 750.556.

 

     (b) There is not an appreciable difference between the average

 

compensation of its female and male employees within each of the

 

major job categories in the EEO-1 employee information report for

 

which an employee is expected to perform work under the contract,

 

taking into account factors such as length of service, requirements

 

of specific jobs, experience, skill, effort, responsibility,

 

working conditions of the job, or other mitigating factors.

 

     (c) The business does not restrict employees of a certain sex

 

to certain job classifications and makes retention and promotion

 

decisions without regard to sex.

 

     (d) Wage and benefit disparities are corrected when identified

 

to ensure compliance with the laws cited in subdivision (a) and

 

with subdivision (b).

 

     (e) The interval at which the business evaluates wages and

 

benefits to ensure compliance with the laws cited in subdivision

 

(a) and with subdivision (b).

 

     (4) The equal pay compliance statement must also indicate

 

which of the following the business utilizes in setting

 

compensation and benefits:

 

     (a) A market pricing approach.


     (b) State prevailing wage or union contract requirements.

 

     (c) A performance pay system.

 

     (d) An internal analysis.

 

     (e) An alternative approach. If the business uses an

 

alternative approach, the business shall provide a description of

 

its approach.

 

     (5) The department's receipt of the equal pay compliance

 

statement does not establish compliance with the laws set forth in

 

subsection (3)(a).

 

     (6) The department shall issue an equal pay certificate, or a

 

statement of why the application was rejected, within 15 days after

 

receipt of the application. An application may be rejected only if

 

it does not comply with subsection (3).

 

     (7) The department may suspend or revoke an equal pay

 

certificate for a business if the business fails to make a good-

 

faith effort to comply with the laws identified in subsection

 

(3)(a), fails to make a good-faith effort to comply with this

 

section, or has multiple violations of this section or the laws

 

identified in subsection (3)(a). Proceedings for suspending or

 

revoking a certificate are subject to the administrative procedures

 

act of 1969, 1969 PA 306, MCL 24.201 to 24.328. Before suspending

 

or revoking a certificate, the department shall work with the

 

business to reconcile wages and benefits due to employees. Upon

 

notice that the department has suspended or revoked the certificate

 

of a business that holds a contract subject to this section or if

 

the contracting public entity learns that a contract was awarded to

 

a business that is not in compliance with this section, the


contracting public entity may void, abridge, or terminate the

 

contract.

 

     (8) Upon request, the department shall provide technical

 

assistance to a business in complying with this section.

 

     (9) Upon a request from the department to enable it to fulfill

 

its duties under this section, a business shall provide all of the

 

following information with respect to employees expected to perform

 

work under a contract described in section 209 in each of the major

 

job categories in the EEO-1 employee information report:

 

     (a) The number of male employees.

 

     (b) The number of female employees.

 

     (c) The average annualized salaries paid to male employees and

 

to female employees, in the manner most consistent with the

 

employer's compensation system, within each major job category.

 

     (d) Performance payments, benefits, or other elements of

 

compensation, in the manner most consistent with the employer's

 

compensation system, if requested by the department for use in

 

determining whether compensation is different for male and female

 

employees.

 

     (e) Average length of service for male and female employees in

 

each major job category.

 

     (f) Other information identified by the business or by the

 

department, as needed, to determine compliance with items specified

 

in subsection (3).

 

     (10) Data submitted to the department related to equal pay

 

certificates are confidential and are exempt from disclosure under

 

the freedom of information act, 1976 PA 442, MCL 15.231 to 15.246,


to persons other than department employees. The department's

 

decision to issue, not issue, revoke, or suspend an equal pay

 

certificate is not confidential or exempt from disclosure.

 

     Enacting section 1. This amendatory act takes effect 90 days

 

after the date it is enacted into law.