The new California Fair Pay Act that took effect January 1st of this year brings substantial new requirements for California employers who pay employees various rates based upon different shifts and offices located in more expensive cities.  The new law specifically addresses these situations and places tight restrictions upon the reasons employers can legally use to justify a difference in pay for employees who are performing essentially the same work.

These new requirements present additional challenges for employers who are attempting to encourage employment around the clock, or who wish to take advantage of employment in less expensive areas of the State of California or across the nation.  These laws apply not only to California based employers, but corporations and businesses who have offices in multiple states including California.  The penalties for violations associated with pay variances based upon different shifts and offices are quite steep.

The wage and hour attorneys at the Watkins Firm guide our business clients and help them to stay abreast of changing laws and regulations for employers in 2016.  The “lawyers for employers” help our clients to develop and implement new strategies to come into compliance with Fair Pay Act requirements, while reflecting the business and financial realities of the work at hand.

It is also important to note that the new law specifically addresses an employee’s right to question others throughout the organization about their rate of pay, and benefit packages.  California employers can no longer prohibit employees from asking other workers about their compensation packages, and management practices, policies and procedures must be updated to reflect the new regulations associated with this behavior.  Variances in pay may only be justified by a few “factors” established in the new law including seniority, and performance or quality of work over time.

If you have questions about the new California Fair Pay Act or the ability to pay workers for different shifts and locations in more expensive areas of the state we invite you to call for a free and comprehensive consultation at 858-535-1511.