What Is the Name of California’s Broader Pay Equity Law?

equity

California's broader pay is called the California Fair Pay Act (CFPA). It was signed into law in 2015 and went into effect on January 1, 2023.

 

The CFPA requires employers to provide equal pay for “substantially similar work” regardless of gender, race, or ethnicity, and it also prohibits employers from retaliating against who discuss or inquire about their wages. The law has since been amended to include the requirement for employers to provide pay scale information to job applicants and current employees.

 

As of January 1, 2021, California employers are required to provide job applicants with a pay scale or pay range for the position they are applying for upon request. This requirement is part of California's broader pay equity law, which aims to close the gender pay gap by promoting transparency around compensation.

 

Under the law, which applies to employers with 100 or more employees, if an applicant asks for the pay scale for a particular position, the employer must provide a pay range that corresponds to the position's classification, along with a justification for any deviation from that range. The employer must also provide the pay scale to current employees upon request.

 

If an employer fails to provide the required pay scale information, the applicant or employee may be able to bring a civil action to recover damages and penalties. Employers should ensure that they have appropriate policies and procedures in place to comply with this requirement.

 

See California Pay Transparency Law Senate Bill (SB) 1162

 

Here are just a couple of more references to cite, and there are tons more:

https://californiapayroll.com/blog/californias-new-pay-transparency-act-sb-1162-requirements/

https://ogletree.com/insights/californias-new-pay-transparency-law-pay-data-reporting-obligation-changes-for-2023