San Diego Employers with Multiple Offices Should Heed Changes in California’s Fair Pay Act

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What are the new changes in California’s fair pay act that went into effect January 1?  How could those changes affect San Diego employers with multiple offices throughout the region or across the state?  Even employers who manage a single site location may find issues if their rates of pay are different based upon the shift being worked or a job title.  What do you need to know to protect your business?

The lawyers for employers at the Watkins Firm keep our clients abreast of all changes in federal, state and local employment law, including changes in California’s Fair Pay Act.  The best way to describe the essence of recent changes could be summarized in this way:

If employees are doing essentially the same work, they must be paid the same wages regardless of gender, physical location, shift or associated job title. 

For instance, if a company had offices in San Diego, Temecula, Palo Alto, San Francisco, Sacramento and Redding they would not be able to justify a differential in pay based upon the expense of living in one location versus another.

Employees now also have the right to ask other employees how much they make.  This law negates many corporate employment policies that forbid this practice, and any disciplinary action taken in these cases could expose you to litigation and heavy economic penalties.

The changes in California’s Fair Pay Act provide specific “factors” that are valid for justifying a differential in pay.  These include:

  • A Merit System
  • A Seniority System
  • A System Based Upon Measured Quantity or Quality of Production, or
  • A “bona fide” factor other than gender, including but not limited to education, experience or training

San Diego and California employers must be cautious about how their work force is paid, and prepare for California agency audits looking for violations as a source of revenue for the state.  Employees may become much more gregarious in their attempts to discern what others make within the company, and use differentials as the basis for an employment dispute.

The experienced legal team at the Watkins Firm provides sound counsel and advise to our clients regarding the changes in California’s Fair Pay Act and updating internal policies and pay structures to come into compliance with this new law.  We defend employers when they are accused of wrongdoing by an employee, and help to resolve disputes before they become expensive and time consuming litigation.

We invite you to contact us for a complimentary and substantive consultation at 858-535-1511.  We will work with you to review internal policies and procedures, and ensure your company’s compliance with all federal, state and local employment laws.