California’s laws on San Francisco wage gaps are among the most progressive in the United States, aiming to address and reduce pay disparities based on gender, race, and other protected characteristics. The state has enacted several key pieces of legislation to ensure equal pay for substantially similar work, regardless of an employee’s gender, race, or ethnicity. Here are the main provisions of California’s wage gap laws:
- California Equal Pay Act (Labor Code Section 1197.5): This law prohibits an employer from paying any of its San Francisco employees wage rates that are less than the rates paid to employees of the opposite sex, or another race or ethnicity, for substantially similar work, when viewed as a composite of skill, effort, and responsibility, and performed under similar working conditions. The law also prohibits wage discrimination based on gender in addition to race or ethnicity.
- Salary History Ban: To combat San Francisco wage discrimination, California law (AB 168) prohibits San Francisco employers from asking job applicants about their salary history. Employers cannot rely on prior salary information as a factor in determining whether to offer employment or what salary to offer. However, if a job applicant voluntarily, and without prompting, discloses their salary history, an employer may consider that information in determining the salary for that applicant.
- Pay Transparency (SB 973): California requires certain San Francisco employers (those with 100 or more employees) to report pay data by gender, race, and ethnicity to the California Department of Fair Employment and Housing (DFEH). This requirement aims to identify and address potentially discriminatory pay practices.
- Protections Against Retaliation: The law protects San Francisco employees who disclose, discuss, or inquire about their own or their co-workers’ wages for the purpose of enforcing equal pay laws. Employers are prohibited from retaliating against employees for engaging in these protected activities.
- Right to Equal Pay for Equal Work: San Francisco employees have the right to be paid equally for work that is substantially similar to the work of employees of the opposite sex, or another race or ethnicity, in the same establishment. Any pay differences must be justifiable based on a bona fide factor other than sex, race, or ethnicity, such as seniority, merit, quantity or quality of production, or a necessary business-related reason.
- Enforcement and Remedies: San Francisco employees who believe they have been paid less than employees of the opposite sex, or another race or ethnicity, for substantially similar work can file a complaint with the California Labor Commissioner’s Office or pursue a civil lawsuit. Remedies may include unpaid wages, interest, and an equal amount as liquidated damages, among other potential remedies.
These laws reflect California’s commitment to reducing the San Francisco wage gap and promoting gender, race, and ethnicity equality in the workplace. Employers in California must be diligent in evaluating their pay practices to ensure compliance with these robust protections.
