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Legislative News and Views - Rep. Carly Melin (DFL)

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New law to reduce gender pay gap goes into effect Friday, August 1

Thursday, July 31, 2014

ST. PAUL, MN – A new state law to reduce the gender pay gap and improve economic security for women and their families goes into effect on Friday, August 1.

The signature piece of the Women’s Economic Security Act approved by state lawmakers with strong bipartisan support earlier this year becomes law this week. The law requires businesses with more than 40 employees seeking state contracts over $500,000 to obtain an equal pay certificate of compliance from the Minnesota Department of Human Rights. Businesses must state that they are in compliance with existing equal pay laws and that average compensation for female employees is not below average compensation for male employees within major job categories as defined in the EEO-1 employee information report

State Representative Carly Melin (DFL – Hibbing), the law’s chief author, says the law will help narrow the gender pay gap between men and women in Minnesota.

“Women in Minnesota earn on average just 80 cents for every dollar men earn,” said Melin. “In Greater Minnesota, that gap grows even wider. By building a broad coalition that put women and their families ahead of special interests, we are beginning to close the gender pay gap and build a brighter future for all Minnesotans. Over the coming years, ensuring equal pay for all women in our great state must be a top priority at the legislature. Ending discrimination in pay will help build an economy that works for all of us.”

Most provisions in the Women’s Economic Security Act went into effect the day after Governor Dayton signed the bill into law on Mother’s Day. Beginning October 5, unemployment insurance eligibility will be expanded from victims of domestic violence to also include victims of stalking and sexual assault. A report on the potential for a state-administered plan for workers without access to workplace retirement savings plans; along with other alternative private sector options is due back to the Legislature by January 15, 2015.

Women’s Economic Security Act provisions already in effect:

-Unpaid leave under the Minnesota Parental Leave Act expanded from 6 weeks to 12 weeks and female employees allowed to use unpaid leave for pregnancy-related needs.

-Employers required to provide reasonable accommodations to an employee for health conditions related to pregnancy or childbirth if she so requests, with the advice of her licensed health care provider, unless the employer demonstrates that the accommodation would impose an undue hardship on the operation of the employer's business.

-Employers required to provide reasonable unpaid break time each day to an employee who needs to express breast milk for her infant child. The break time must, if possible, run concurrently with any break time already provided to the employee. An employer is not required to provide break time if it would unduly disrupt the operations of the employer.

-Employees allowed to voluntarily disclose and discuss their compensation without fear of retaliation from their employers.

-Equal employment treatment required regardless of “familial status” (Pregnant women and parents and legal guardians of children under 18 who live with them). 

-Employees allowed to use existing earned sick leave to recover from sexual assault, domestic violence, or stalking.

 -Support expanded for employers; workforce organizations; and others to recruit, prepare, place and retain women in nontraditional occupations and apprenticeships, especially low income and older women.

-Support expanded for the development of high economic impact women-owned businesses in nontraditional industries.

-Grandparents allowed to use existing earned sick leave to care for an ill or injured grandchild.