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California Fair Pay Act Case Study

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The strict new California Fair Pay Act will soon become effective: January 1, 2016. California employers will be subject to what is being called the strictest and most aggressive equal pay law in the entire United States. Governor Jerry Brown signed the California Fair Pay Act (“Act”), Senate Bill 35, in October 2015. The new law is intended to increase the wage equality and transparency requirements of California labor law. The Act will be an amendment to Section 1197.5 of the current California Labor Code in relation to private employment.

According to the new law, employers will be prohibited from paying their employees of opposite sex a lower pay rate when the job duties are “substantially similar.” Previously, laws were in place protecting

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