Fair Pay Act

The Fair Pay Act

The graphic below includes the text of the Fair Pay Act verbatim; the additions are descriptive headings and graphic elements.

The California Fair Pay Act (effective January 1, 2016) revises the California Equal Pay Act (Lab. Code § 1197.5).

Key points:

  • The revision eases the evidentiary burden for plaintiffs. Where the Equal Pay Act required a plaintiff to show that he or she performs work “equal” to that of a higher-paid employee of the opposite sex, the Fair Pay Act only requires that the plaintiff performs “substantially similar” work. The revision also eliminates the requirement that the wage differential be in the “same establishment.”
  • Under the revised Act, the employer has the burden of establishing that the wage differential is based on a factor (or factors) unrelated to gender.
  • Under the revised Act, employers cannot prohibit employees from discussing their wages, or the wages of others.
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