Amends TCA Title 50.

Generally, present law prohibits sex-based wage discrimination. The wage discrimination laws do not apply to local government entities and their employees, and to certain employees who are covered by federal law concerning equal pay. However, local governments, in their capacities as employers, are subject to provisions of present law concerning human rights, which generally prohibit discriminatory practices based on race, creed, color, religion, sex, age or national origin. This bill makes the prohibition against sex-based wage discrimination applicable to all employers and employees in Tennessee. Under present law, wage differentials between employees of the opposite sex are permissible only if such differentials are based on a system of seniority, merit, quality, or quantity of production, or any "other reasonable differential" that is based on a factor other than sex. This bill replaces the "other reasonable differentials" exception with wage rate differentials based on "a bona fide factor other than sex, such as education, training, or experience". In order to establish that a wage rate differential was based on a bona fide factor other than sex, for purposes of establishing a legal defense, this bill requires the employer to demonstrate that: (1) The factor is not based on or derived from a sex-based differential in compensation, is job-related with respect to the position in question, and is consistent with a business necessity; (2) The factor is applied and used reasonably in light of the asserted justification; and (3) One or more factors relied upon account for the entire wage differential. Under this bill, an employer will not be able to demonstrate that a factor is consistent with a business necessity under (1), if the employee demonstrates that an existing alternative employment practice would serve the same business necessity without producing the differential and the employer refuses to adopt the alternative practice. Present law generally prohibits employers from discharging or discriminating against any employee by reason of any action taken by the employee to invoke or assist in any manner the enforcement of the prohibition against sex-based wage discrimination. This bill instead prohibits employers from prohibiting an employee from disclosing, discussing, or inquiring about wages, or waiving the right to do so, and from penalizing any employee who inquires about the wages. This bill specifies that an employer or employee is not required to disclose the amount of wages paid to an employee. This bill requires the commissioner of labor and workforce development to develop guidelines for employers to evaluate job categories based on objective criteria so that the employers may voluntarily compare wages paid for different jobs and determine if the pay scales adequately and fairly compensate men and women. Present law authorizes the commissioner of labor and workforce development to endeavor to eliminate sex-based wage discrimination practices by informal methods of conference, conciliation and persuasion, and to supervise the payment of wages owing to any employee under this part. This bill makes the development of such practices a requirement and additionally requires the commissioner to develop guidelines to enable employers to evaluate job categories based on objective criteria and make the guidelines available to the governor, the speaker of the senate, and the speaker of the house of representatives no later than September 1, 2023. Under present law, those employers who violate the wage discrimination laws are liable to the employees affected in the amount of their unpaid wages. Where violations are committed knowingly, up to an additional equal amount of unpaid wages may be awarded as liquidated damages. On a second distinct violation, the employer is liable for up to an additional two times the amount of unpaid wages as liquidated damages for a knowing violation. On a third distinct violation, the employer is liable for up to an additional three times the amount of unpaid wages as liquidated damages for a knowing violation. A court may also assess reasonable fees and costs of the action to the defendant. This bill removes the requirement that a second, third, or subsequent violation must be made knowingly in order to trigger the liquidated damages multipliers. Under this bill, employers will additionally be liable for any compensatory or punitive damages deemed appropriate, except that the federal and state government and their political subdivisions will not be liable for punitive damages. This bill specifies that an action brought to enforce the prohibition against sex-based wage discrimination may be maintained as a class action. This bill also specifies that an employer who violates the prohibition against sex-based wage discrimination is subject to injunctive and other appropriate relief, including, but not limited to, the rehiring or reinstatement of the employee to the employee's former position with back pay. Under present law, the statute of limitations for an action alleging sex-based wage discrimination is no later than two years after the cause of action occurs. The full text of this bill specifies when an action is considered commenced and when a violation occurs.