April 21, 2015, Introduced by Reps. Driskell, Sarah Roberts, Derek Miller, Liberati, Darany, Faris, Chang, Plawecki, Pagan, Smiley, Greig, Chirkun, Durhal, Hovey-Wright, Gay-Dagnogo, Banks, Love, Geiss, Moss, Irwin, Cochran, Townsend, Zemke, Brinks, Hoadley, Brunner, Dillon, LaVoy, Garrett, Wittenberg, Guerra and Singh and referred to the Committee on Commerce and Trade.
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 state, a political
subdivision, or an agency thereof is a party shall 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 an 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. An equal pay certificate issued by the
department is valid for 4 years.
(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 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, chapter
531, 49 Stat 620, 42 USC 1396 to 1396f, 1396g-1 to 1396r-6, and
1396r-8 to 1396v; or by a nursing home licensed under article 17 of
the public health code, 1978 PA 368, MCL 333.20101 to 333.22260.
(3) A business may apply for an equal pay certificate by
paying a $150.00 filing fee and submitting an equal pay compliance
statement to the department. The proceeds from the fees collected
under this subsection shall 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
this section. The department shall issue an equal pay certificate
of compliance to a business that submits a statement 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; the equal pay act of
1963, 29 USC 206(d); and section 556 of the Michigan penal code,
1931 PA 328, MCL 750.556.
(b) The average compensation for its female employees is not
consistently below the average compensation for its 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 1 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 to determine what level of wages
and benefits to pay its employees. 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 of
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 also seek to
conciliate with the business regarding 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 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 and applies to any
solicitation or contract executed after it takes effect.