Overtime, Wage Theft, & Unlawful Pay > Wage Gap
A wage gap is a difference in earnings between employees or groups of workers. It may be unlawful when it involves unequal pay for substantially similar work without a legally permitted justification, or compensation discrimination based on a protected characteristic. A pay difference alone does not automatically establish a legal violation.
California’s Equal Pay Act, Labor Code section 1197.5, generally prohibits lower wage rates than those paid to employees of another sex, race, or ethnicity for substantially similar work under similar working conditions, unless a lawful justification explains the disparity.
The Fair Employment and Housing Act (FEHA) separately prohibits compensation discrimination based on protected characteristics, including religion, disability, and age 40 or older. Its employment discrimination provisions generally cover employers with five or more employees.
Yes. Under the Equal Pay Act, permitted explanations may include seniority, merit, production-based systems, or qualifying job-related factors. The employer must satisfy the legal requirements and account for the entire disparity. Actual duties, rather than job titles alone, guide the work comparison.
Preserve pay statements, compensation policies, job descriptions, performance reviews, and relevant communications you are lawfully entitled to keep. Document your responsibilities and any explanation given for the difference. An attorney can assess comparable work, possible discrimination, and applicable deadlines.
Legal sources: California Labor Commissioner: Equal Pay Act and Pay Transparency FAQs and California Civil Rights Department: Employment Discrimination Protections.
Concerned about an unexplained wage gap or discriminatory pay? Matern Law Group can review your circumstances and explain your legal options.
California’s laws on 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:
These laws reflect California’s commitment to reducing the 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.
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