Many employers in the San Diego region are concerned about the impact of the California Fair Pay Act, and the changes that went into effect at the first of the year. What does a San Diego employer need to know about the California Fair Pay Act? Generally speaking, the law is the tightest interpretation of “equal pay for equal work” in the US, and there is to be absolutely no discernible difference in pay between any employees who are doing essentially the same work, unless clearly defined and documentable “factors” are present. The interpretation of these factors has been significantly narrowed in the new legislation, and it is important for you to work with the attorneys at the Watkins Firm to ensure your company is in full compliance with the letter and spirit of the law.
What Factors May Justify a Difference in Pay under California’s Fair Pay Act?
There are three primary factors that may justify a difference in pay between employees:
- Merit Based Factors
- Seniority
- A System Based Upon Measured Quantity or Quality of Work (i.e. quotas)
There is a major change that should concern all California employers with multiple shifts, or multiple office locations: differences in location or shift are no longer acceptable factors under the new law in order to justify pay between a man and a woman, or employees doing essentially the same work. Job titles cannot be deployed in order to justify pay differential. If the employees are doing “essentially the same work” then the only justification for a differential in pay must be contained within the factors identified under the new law.
It is also important to note that any employee may ask another employee about their compensation package or earnings, without fear of reprisal or retaliation by their employer or management.
The new California Fair Pay Act will have a significant impact on many employers across the State of California, as well as those national firms who have offices or locations within California. All employers should contact the Watkins Firm for a review of their employment policies and procedures, classifications and pay structures. Learn about the new changes that have gone into effect, and protect yourself against exposure to lawsuits from employees or external government agencies. The new California Fair Pay Act was definitely implemented to eliminate pay differential between genders, however, the implications of “fair pay for essentially the same work” has much broader implications for California employers. Contact the experienced lawyers for employers at the Watkins Firm for a free and substantive consultation at 858-535-1511.
