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CALIFORNIA LAW: Right to Discuss Pay, Bans on Salary History, and Pay Equity

The Equal Pay Act (EPA) passed in The Golden State for the first time during the 1940s. Former California Governor Jerry Brown updated the EPA and expanded it by providing the California Fair Pay Act (FPA) in 2015, which empowered the EPA in a number of ways and underscored the state’s commitment to achieving gender pay equity.

Countries are considering pay equity laws and transparency laws to reduce the gender wage gap and correct related economic disparities that have existed virtually in perpetuity.

Before examining laws, processing related terms and the most common forms of wage gaps and disparities millions of Americans face is beneficial.

What Wage Gaps and Related Disparities are Workers Facing in California?

A wage gap refers to a difference in earnings between two groups of workers, for example, men and women. The difference also brings to mind the word “disparity.” A disparity is, in essence, any “great difference”; there are, for example, ethnic and racial disparities, but there are also economic disparities. Moreover, income disparities are interconnected with racial, gender, and occupation factors, resulting in these wage gaps. The gender wage gap, racial and ethnic wage gaps, and occupational wage gaps are different types of wage gaps (again, disparities in pay between various groups or one group and many others).

Disparities in California and across The US are present in various domains. The focus on decreasing wage gaps affects many other areas of life and many groups.

Issues of wage gaps and economic disparities were already inches from the US forefront. The current financial landscape, inflation, and everyone’s dreaded trip to the painful gas pump have elevated the discussion of wage gaps and the need for transparency into the spotlight. Concepts of pay transparency make it much easier to identify and address gender wage gaps in the workplace and why the two are often now brought up in dialogue together. Frequently, employees wonder what their rights are when discussing wages, salary history inquiries by employers, and how California’s laws affect their rights.

Can employers pay employees working essentially the same position or job lower wages than employees of another race or gender?

CA Labor Code Section 1197.5 sections (a) and (b) include the California FPA. Since 2016 this law has prohibited employers from paying employees lesser wages than those received by employees of other races or genders for essentially equivalent or similar work and tasks. California FPA law protects employees when discussing and comparing their salaries with coworkers. Employers must now pay employees equally for work performed with “substantially similar skill, effort, and responsibility.”

Moreover, upon receiving less than the wage to which the employee is entitled under subdivisions (a) or (b), an employee may file a complaint with the division. According to Labor Code 1197.5 subdivision (k) (1), employers may not prohibit or penalize any employee for assisting or encouraging other employees to exercise their rights under 1197.5 or any other EPA and FPA statutes. The updated laws provide employees ampler protections than they previously had under the EPA.

Can an Employer determine my salary based on what I made at other jobs?

The salary history knowledge of an applicant for employment shall not be used by an employer in deciding whether or not to offer work to the applicant, according to CA Labor Code 432.3 (a).

Furthermore, subdivisions (b) and (c) state employers are not permitted to directly or indirectly request candidate salary history information or date, including pay and benefits. Employers must supply the pay scale for a position at reasonable request.

Note: Labor code 432.3 (f) states that no provision of this section shall prohibit a prospective employer from considering or relying on an applicant’s voluntarily disclosed salary history in determining the applicant’s salary.

Can an employer prevent me from discussing wages with other coworkers?

In addition to employers no longer having the power to restrict employees from discussing their wages and working conditions, the power to freely disclose, withhold, or discuss these elements is now transferred to the employee. According to Labor Code Section 232, subsections (a) and (b), employers cannot prevent employees from discussing or disclosing wages or refusing to agree not to disclose wages. Employers cannot force their employees to sign or abide by a document or agreement that prohibits them from disclosing or discussing working conditions, wages, and salaries. Furthermore, Labor Code 232.5 (c) establishes that employers are not permitted to terminate, punish, or otherwise discriminate against employees who choose to disclose their employer’s working conditions or their own wages.

However, it is crucial to note that employees must not divulge any proprietary knowledge, information, or data under CA Labor Code 232.5 subsection (d). Employees are prohibited from revealing trade secrets and details unless their employer explicitly consents.

Equal Pay and Other Related Cases and Complaints

Employees of California have the right to file cases related to equal pay through the Department of Fair Employment and Housing (DFEH). Another possibility is filing a complaint with the Labor Commissioner’s Office or the DFEH regarding sex, race, and ethnicity based wage discrimination.

If your employer violated any of the laws and statutes discussed, you have the right to act. If you have witnessed or experienced any form of workplace discrimination, you are entitled to take legal action and may be entitled to compensation.

Please do not hesitate to contact our offices and consult with experienced and compassionate employment litigation and workplace discrimination lawyers. Besides being complex, cases must also be navigated carefully, accurately, and efficiently to ensure fair and appropriate outcomes.

An experienced employment lawyer like those at SANFORD A. KASSEL, A Professional Law Corporation have years of experience, a comprehensive understanding of the law, and can help you successfully navigate your case.

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