By: Joseph H. Laverty

Effective July 1, 2009, the Iowa Civil Rights Act was amended to permit employees in Iowa, for the first time, to file equal pay claims under state law and will expose employers to significant liability if the employee would be successful. Under the new "Fair Pay" law, Iowa Code §216.6A, it is now an unlawful employment act to pay employees a different wage for "equal work on jobs, the performance of which requires equal skill, effort and responsibility, and which are performed under similar working conditions" because of the employee's age, race, creed, color, sex, sexual orientation, gender identity, national origin, religion or disability. This new Iowa law is similar, but not identical, to the federal Ledbetter Fair Pay Act. Iowa's new statute is likely to fuel an increase in litigation and companies would be wise to consider auditing compensation decisions, reviewing compensation practices, developing specific criteria for compensation decisions, reviewing past documents dealing with compensation decisions, reviewing retention practices, training supervisors and managers and correcting discriminatory pay practices.

Questions? Please contact WS Shareholder and Senior Attorney Joseph H. Laverty at (563) 333-9102 or jolaverty@wesselssherman.com.