Compliance Bulletin

State Enhances Equal Pay Law
October 19, 2015

Governor Jerry Brown signed into law SB 358 which bolsters an existing state statute requiring equal pay for equal work (Labor Code Section 1197.5). An employer may not pay wages that are less than those paid to employees of the opposite sex “for substantially similar work, when viewed as a composite of skill, effort, and responsibility.” The bill makes it harder to rely on exceptions by requiring employers to affirmatively demonstrate that any wage differential is based on specified permissible factors. It also enhances prohibitions against preventing employees from disclosing their own wages. See CBA’s Regulatory Compliance Bulletin for more information.