Strategies for Complying with the Fair Pay Act

By lfsuser on October 12, 2015

On October 6, 2015, Gov. Brown signed Senate Bill (SB) 358 (the “Fair Pay Act”). The Bill makes a number of changes to existing law as discussed in our previous blog. The Fair Pay Act will take effect on January 1, 2016 and will be one of the strongest equal pay laws in the nation. Once in effect, employers may begin to see more complaints filed with the California Division of Labor Standards Enforcement (DLSE) and in court alleging failure to provide equal pay.

Employers may consider taking several steps to reduce the risk of noncompliance, including:

  • Review employee handbooks to ensure their provisions are consistent with the newly-amended statute.
    Confirm there is an adequate internal complaint procedure to bring to light and address any wage differential issues.
  • Review employees’ job descriptions and current salaries to ensure any pay differentials are completely accounted for by any or all of the factors enumerated in the Fair Pay Act.
  • Update internal record retention requirements to reflect the new three-year retention period for records of the wages and wage rates, job classifications, and other terms and conditions of employment of the persons employed by the employer.
  • Remind supervisors of employees’ right to ask co-workers about their compensation for the purpose of ascertaining their rights under the amended statute.

This communication may be considered advertising in some jurisdictions. It is intended to provide general information about legal developments and is not legal advice. If you have questions about the contents of this alert, please contact Oleg I. Albert at (415) 697-2000 or oalbert@aghwlaw.com.