Giambrone Law Comments California Fair Pay Act

California lawmakers have recently introduced a bill to put an end to race-based wage discrimination, expanding a recent law that granted gender pay equity in the state.

SB 1063 (California Fair Pay Act), that is the name of the bill, provides that employers are legally required to pay, for “substantially similar” work, ethnic minorities employees the same wage that is normally paid to white employees. The bill also grants protection to employees asking for wage information.

Recent studies had pointed out that African American employees receive a significantly lower wages in comparison to their Caucasian colleagues. They are, as a matter of fact, paid only 75% of what Caucasian employees are paid. Even more significant is the wage divide between men and women, especially if said women belong to an ethnic minority. For every dollar that a Caucasian male earns, an African American woman makes 63 cents. Hispanic and Latina women are paid even less, as they make 54 cents for every dollar a Caucasian man earns. On the contrary, Asian women are paid 90% of what Caucasian male are paid.

For the first time in American legislation, the wording “substantially similar work” is included in the California Fair Pay Act, compared to “equal work”, the previous wording included in the act. The latter allowed employers to take advantage of a loophole that allowed pay discrimination on the basis of job title.

After the introduction of the bill several companies in California have started an internal audit to ensure equal payments between men and women and employees belonging to different ethnic groups. It has been pointed out, however, that it may not be as easy as expected, considering HR systems and personnel often lack the information required to group “substantially similar” jobs under the same paying conditions.

Nicoletta Neglia, Associate in the Employment Department at Giambrone International Law Practice commented: “ California Pay Act is a significant step towards a labour market that recognises all employees as equals and helps businesses in the State abolish the pay gap between men and women, especially those who belong to ethnic minorities. I hope to see this new regulation throughout the Country and in all other Countries in the world”.

Our specialist team at Giambrone International Law Practice provides employees with bespoke advice and representation. We have an excellent success rate in bringing all types of employment related claims, whether in the employment tribunal or courts. We will work closely with you and offer flexible fee arrangements to suit your budget.

For more information, please click here.