California Takes the Lead in Enhancing Protections for Gender Wage Equality & Wage Transparency
APPLIES TO All California Employers and Employees |
EFFECTIVE January 1, 2016 |
QUESTIONS? Contact HR On-Call (888) 378-2456 |
On October 6, 2015, Governor Brown signed into law Senate Bill (SB) 358, referred to as the Fair Pay Act. The Act amends Labor Code Section 1197.5 to require that employers prove wage disparities among men and women are not gender based. The Act also penalizes employers for preventing employees from discussing wages. Finally, it increases recordkeeping requirements. These requirements apply both to California employers and companies with employees in California. Although the changes become effective January 1, 2016, employers need to prepare for the effects the changes will create. Additionally, the Act may lead to increased litigation, because the hurdles are being lowered for plaintiffs to bring lawsuits. It may also be a gateway for new class action lawsuits, because attorneys will likely be looking for systemic gender wage disparity within individual companies.