Senate Bill 642 Expands Protections Under California’s Equal Pay Act

Minnis & Smallets LLP recently testified before the California State Senate Labor, Public Employment, and Retirement Committee in support of Senate Bill 642 (SB 642), a pivotal piece of legislation aimed at enhancing protections under California’s Equal Pay Act. Under this amendment, employees would receive greater safeguards against pay discrimination, therefore furthering workplace equity for all workers in California.

California’s Equal Pay Act and Its Current Protections

California’s Equal Pay Act is one of the most comprehensive labor laws addressing wage disparities. It prohibits employers from paying employees less than their coworkers of the opposite gender for substantially similar work, considering skill, effort and responsibility under similar working conditions. This law also allows employees to challenge pay discrimination based on race or ethnicity. While these provisions are significant, important gaps remain, and wage inequities persist. This highlights the continuing need for robust legal protections like those introduced in SB 642.

An Overview of Senate Bill 642

Senate Bill 642 is designed to strengthen the California Equal Pay Act and provide greater protections for employees experiencing wage disparities. This bill not only reinforces the existing law but also addresses critical loopholes and provides new pathways for employees to enforce their rights.

Strengthening Existing Protections

One key enhancement in SB 642 is the clarification of what constitutes wages. By aligning California’s definition of wages with federal standards, the bill ensures that all forms of compensation, including bonuses and stock options, are included when assessing pay equity. This closes potential loopholes that allow employers to circumvent the law under narrow interpretations of wages.

The bill also extends the statute of limitations under the Equal Pay Act. Under current law, workers generally have two years to challenge disparities or three years in cases of willful violations. SB 642 increases these timelines to three years and four years, respectively. Additionally, it incorporates the “continuing violations” doctrine, allowing employees to recover lost pay for ongoing discriminatory practices beyond the standard limitations period.

Introducing New Measures to Ensure Pay Equity

SB 642 tackles outdated language in the Equal Pay Act by removing binary references to gender. This change addresses pay discrimination experienced by all employees and ensures the law is inclusive of today’s diverse workforce.

Another innovative measure in the bill introduces restrictions on pay ranges in public job postings. This provision aims to limit excessively broad salary ranges, which can obscure an employer’s actual pay practices. By restricting ranges to no more than 10% above and below the mean pay for a position, SB 642 ensures greater transparency in hiring practices.

Taking Action Against Pay Discrimination

Minnis & Smallets LLP commends the proposed reforms under SB 642 and continues to stand as a trusted legal resource for employees navigating workplace inequities. Pay disparities are not just a matter of fairness but also impact long-term financial security for workers across California.

Employees experiencing wage discrimination deserve the chance to pursue justice and seek equitable resolutions. For assistance in addressing an employment issue, contact Minnis & Smallets LLP. We provide personalized legal representation and are dedicated to protecting the rights of employees.