In addition, employers are prohibited from using prior salary to justify any sex-, race-, or ethnicity-based pay difference.Įffective January 1, 2018, the Equal Pay Act covers public employers. The provisions, protections, procedures, and remedies relating to race- or ethnicity-based claims are identical to the ones relating to sex. California law now prohibits an employer from paying its employees less than employees of the opposite sex, or of another race, or of another ethnicity for substantially similar work. Effective January 1, 2017, Governor Brown signed a bill that added race and ethnicity as protected categories. Each year since then has brought further amendments to the Equal Pay Act.

Have there been more changes to the Equal Pay Act since January 1, 2016? These provisions were effective January 1, 2016.

Extending the number of years that employers must maintain wage and other employment-related records from two years to three years.ģ.

Explicitly stating that retaliation against employees who seek to enforce the law is illegal, and making it illegal for employers to prohibit employees from discussing or inquiring about their co-workers’ wages.

Ensuring that any legitimate factors relied upon by the employer for pay inequities are applied reasonably and account for the entire pay difference.

Making it more difficult for employers to justify inequities in pay through the “bona fide factor other than sex” defense.

Eliminating the requirement that the employees being compared work at the “same establishment.”.

Requiring equal pay for employees who perform “substantially similar work,” when viewed as a composite of skill, effort, and responsibility.

What were the most significant changes to the Equal Pay Act? However, in 2015, Governor Brown signed the California Fair Pay Act, which strengthened the Equal Pay Act in a number of ways and signaled California’s commitment to achieving real gender pay equity. No, for decades now, the California Equal Pay Act has prohibited an employer from paying its employees less than employees of the opposite sex for equal work. California Equal Pay Act (Labor Code section 1197.5) and Labor Code section 432.3 California Equal Pay Act: Frequently Asked Questions 1.

When is the act