Are You a Woman Paid Less than A Man in California for the Same Work?

California’s Equal Pay Act

California’s Equal Pay Act makes it illegal for an employer in California to pay any employee less than another employee of the opposite sex for the same or “substantial similar” work.

If you have a valid Equal Pay Act claim, your employer may be required to pay you twice the pay differential, plus interest. The law also allows you to recover your attorney’s fees and costs of bringing a lawsuit. The Equal Pay Act carries a statute of limitations of two years for non-willful violation and three years for willful violations.

The California Equal Pay Act Also Covers Race and Ethnicity

In 2015, the legislature amended the Equal Pay Act to extend to race and ethnicity. Because of this amendment, it is also illegal in California to pay any employee of one race or ethnicity less than an employee of another race or ethnicity for similar work.

Substantial Recovery Is Available

A valid Equal Pay Act claim can result in a substantial monetary recovery. The law allows the employee to recover:

• The pay differential plus “liquidated damages” equal to the pay differential (2x the pay differential)
• Attorney’s Fees and Costs.

Effectively, the Equal Pay Act allows the employee to recover twice the pay differential plus their attorney’s fees and costs of suit.

For example, if a woman is paid $50,000 for substantially similar work as a man who is paid $75,000, the woman could recover up to $50,000 in pay differential ($25,000 for two years), plus another $50,000 as “liquidated damages” for a total recovery of $100,000. Recovery could be greater for a willful violation.

In reality, the employer’s liability would be far greater because this example does not include attorney’s fees.

What Is the Statute of Limitations for an Equal Pay Act Claim?

The employee must bring his or her suit within two years. If the violation is “willful,” meaning that the employer was aware of the fact that the employee was aware of the discriminatory pay differential, the limitations period is three years.

Are their Defenses to an Equal Pay Act Claim?

Yes. The Equal Pay Act allows the employer to avoid liability if it can show that the differential is the result of: (1) a seniority system, (2) a merit system, (3) a system that measures earnings by quality or quantity of production (e.g., piece work), or (4) a legitimate factor other than gender, race, or ethnicity such as education, training, or experience.

For the final exemption to apply, the factor other than gender, race, or ethnicity must be related to the job in question and “must be consistent with business necessity.” For example, if a male employee has a collage degree and is paid more than a female employee without a degree for work unrelated to the degree, the exemption may not apply.

Can I Ask A Co-Worker How Much He or She Is Paid?

Yes! Under California law, employees have the right to share salary and wage information if they wish. An employer policy in California that prohibits employees from sharing pay information is illegal. It is also illegal for the employer to retaliate against employees for sharing pay information.

Can An Employer Ask Me How Much I Was Paid in a Current or Past Job?

No! Effective January 1, 2018, Labor Code section 432.3 prohibits employers from seeking any information concerning an applicant’s salary history information, including benefits.

The law also prohibits employers from relying on an applicant’s salary history as a factor in determining what salary or hourly rate to offer.

Legal Counsel for Equal Pay Act Claims

If your employer is paying you less than another employee of a different gender, race, or ethnicity, and you believe you may have a valid claim under the California Equal Pay Act, contact the Law Offices of Corbett H. Williams today to protect your employee rights.