California Equal Pay Law Got Some New Changes
California employers must now provide equal pay to all workers, regardless of gender, if they perform “substantially similar” work. The Fair Pay Act, effective at the beginning of this year, has attracted significant attention from employers and employees alike.
The Fair Pay Act amended California Labor Code section 1197.5, previously known as the California Equal Pay Act. That law generally prohibited employers from paying lower wages to employees of one sex compared to employees of the opposite sex.
Previously, the Equal Pay Act applied only when employees (a) worked at the same establishment and (b) performed “equal work” requiring “equal” skill, effort, and responsibility under similar conditions.
The Fair Pay Act removed the “equal work” requirement. Now, employers cannot pay lower wages to employees of one gender compared to the opposite gender when workers perform substantially similar work, considering skill, effort, responsibility, and working conditions as a whole.
Additionally, the Act eliminates the “same establishment” requirement. Employers must pay equal wages to employees performing substantially similar work across the entire business. The law still allows pay differences based on seniority, merit, or the quality or quantity of production.
To prevent costly claims, employers should carefully review payroll, employment records, and policies to identify potential wage disparities. Furthermore, consulting an experienced employment law attorney can help ensure compliance and reduce risk.
From our Modesto, California offices, our employment law attorneys represent clients throughout the San Francisco Bay Area and Northern California. Contact Van Egmond & Heitlinger, APC today to schedule an initial consultation with an experienced Modesto employment law attorney.