Working people in California have a wide range of rights and protections under the state’s employment laws. That includes the right to be paid fairly, regardless of race, ethnicity, or gender.
The California Fair Pay Act, which took effect in 2016, is an important tool for combating workplace discrimination across the Golden State. It gives workers who believe they have been shortchanged because of their race, gender, or ethnicity the right to take action.
At Justice Law Corporation, our California equal pay lawyers fight to get people the full pay they are entitled to under this and other laws. An attorney at our firm can help you understand your rights under the California Fair Pay Act, determine whether you have a claim, and maximize your compensation. We are experienced lawyers who focus exclusively on workers’ rights cases.
It is crucial that anyone who works for a living in California understands his or her rights. Here is what you need to know.
How the California Fair Pay Act Works
The California Fair Pay Act was enacted as an amendment to a state employment law that has been on the books for decades. It is specifically aimed at closing the wage gap among workers based on race, gender, and ethnicity.
The law requires employers to pay employees the same for substantially similar work. It also gives employees more effective tools to enforce their rights on the job and bans employers from retaliating against them.
These cases often center on differences in hourly or weekly pay or annual salaries. But they can also include other forms of compensation, such as:
- Overtime
- Paid time off
- Health benefits
- 401(k) contributions
- Stock options
- Profit sharing
- Travel and expense reimbursements
One of the most significant aspects of the law is that it shifts the burden to employers to explain differences in pay for workers doing substantially similar work. Once an employee shows such a disparity, it is on the employer to prove that the difference is justified by one or more of the permissible factors, like education, training, or experience. The employer must also demonstrate that these factors are applied reasonably and account for the entire wage difference.
The California law is broader than the federal Equal Pay Act, a civil rights law covering workers across the country. While that law requires equal pay for equal work performed in the same establishment, the California Fair Pay Act allows employees alleging violations to compare their pay with that of workers across a broader range of job titles and locations. That is, as long as the work they are performing is substantially similar.
Substantially Similar Work
To prove discrimination under the California Fair Pay Act, an employee must show that he or she is being paid less than co-workers for substantially similar work. That means work that is generally comparable across three factors.
- Skill: The experience, training, education, and ability required to perform the job.
- Effort: The mental or physical exertion needed to perform the job duties as a whole.
- Responsibility: The degree of accountability, including whether the employee supervises others.
- Working conditions: The physical conditions, regardless of location.
Employees may be performing substantially similar work even if they have very different job titles and work in different places. What matters are the actual job duties. They do not need to be identical, but simply comparable.
Employer Defenses
Although the law increased the burden on employers to explain pay differences, there are a number of valid reasons they can give to defend fair pay claims.
- Seniority: Employers may lawfully pay more to workers with longer tenure, such as someone who has been with the company for a decade, than to a colleague who has been on the job for two years. Seniority systems reward loyalty and institutional knowledge. They cannot, however, be used to mask discrimination.
- Merit: Some workers may simply do their jobs better than their peers, justifying higher pay. Merit-based differences must be based on bona fide factors and are usually determined through performance evaluations and goal-based metrics.
- Production: Similar to merit systems, production pay scales reward employees for the quality or quantity of their work. For instance, employees in sales positions are often paid commissions based on volume.
- Other factors: job-related factors such as education, training, or experience.
Talking About Pay
The law also gives employees the right to ask their employers questions about pay and to share pay information with their co-workers.
This is a crucial protection. Employers often get away with pay discrimination by keeping their workers in the dark about how their pay stacks up.
The law specifically bans employers in California from retaliating against workers who exercise their rights on the job. That means your employer cannot fire, demote or otherwise punish you for asking about pay, talking about pay with co-workers or pursuing a claim for pay discrimination.
Salary History
Employers have also historically used salary history to underpay their workers. The California Fair Pay Act aims to prevent employers from keeping certain workers at lower pay levels simply because they were underpaid in previous positions.
The law prohibits employers from relying solely on pay history to justify pay rates. It also bans them from asking job applicants about their previous pay.
Our California Equal Pay Lawyers Can Help
If you believe that you are being discriminated against on the job, whether it is by being underpaid or in other terms and conditions, you do not need to go it alone.
A California equal pay lawyer at Justice Law Corporation can help you evaluate your claim and understand your rights and options. We have a strong track record of optimal results through verdicts and settlements for the people that we represent.
Our office is conveniently located in Pasadena. Contact us at (818) 230-7502 to schedule a free consultation with a California equal pay lawyer.
