It’s Women’s History Month: Time to Close the Pay Gap
For decades, women have taken home smaller paychecks than their male counterparts. The current discrepancy for California women amounts to a staggering $87 billion a year. Overall, California women earn 88 cents for every dollar earned by a man; that figure plummets to 42 cents for California Latinx women.
Nationwide, women earned 84 cents for every dollar earned by a man in 2020, according to Pew Research Center. (This analysis examined median hourly earnings for both full- and part-time workers.) While the gap per dollar may not sound that huge, it means a woman would have to work 42 extra days to achieve a man’s earnings. That gap has changed little during the past 15 years, though it is smaller for women ages 25 to 34 than for women overall.
Fortunately, that’s not the end of the story. For Women’s History Month, we wanted to highlight the new protections California women now have when they suspect disparate pay.
The state is beefing up its efforts to address equal pay, including some new initiatives, which we’ll explain below. But in the meantime, it’s worth a refresher on your rights.
So what are my rights?
California’s progress thus far has been a journey. For decades, the state’s Equal Pay Act had prohibited unequal pay for equal work done by employees of the opposite sex. The Fair Pay Act strengthened that law as it applied to gender, taking effect in 2016, which also is when the California Pay Equity Task Force formed. In 2017, another law extended those protections to include race and ethnicity.
Importantly, you can’t be prevented from discussing wages — yours or others’ — and it’s illegal for employers to retaliate against those who do. That protection from retaliation also applies to those who help or encourage others to seek protections under the Equal Pay Act.
Notably, state Labor Code section 432.3, which took effect a few years ago, bars employers from asking about compensation history, including pay and benefits. Employers also can’t use that information in determining whether to offer a job or what compensation to offer. Such practices were viewed as perpetuating previous wage gaps. A law signed in 2020 sought more transparency, mandating statewide pay data reporting for private employers of 100 or more.
New changes
The latest: The state signed the California Equal Pay Pledge, joining companies such as Airbnb, Apple, Gap Inc., Intel, Salesforce, and Twitter. Companies that sign the Equal Pay Pledge agree to analyze hiring and promotion procedures annually, aiming to reduce unconscious bias and structural barriers, plus promote best practices to address the gender pay gap.
As the state’s largest employer, the government is trying to lead by example. The state also created a new Chief Equity Officer position to champion equity in state hiring and other procedures. And in Gov. Gavin Newsom’s new California Blueprint proposal, he recommends $1.4 million “to improve awareness of state pay equity rights and inform enforcement efforts against those that violate equal pay laws.”
What if I’m a victim?
According to state law, employees who have been the victims of discrimination can recover the difference in wages, interest, and an equal amount as liquidated damages. They also can recoup any attorney’s fees and costs if the matter goes to court.
You may file a claim if you’re being paid less for substantially similar work than an employee of the opposite sex or of another race or ethnicity. This is true even if the person has a different job title; the key component is the work itself. Note that wages can encompass all forms of compensation or benefits.
Employees may file claims in court, with the Labor Commissioner’s Office, and potentially also with the California Department of Fair Employment and Housing (such as if you believe you’ve been denied a promotion based on a protected status). Claims must be filed within two years of a violation (three years if it’s willful), but each unequal paycheck is considered a violation for the purposes of filing deadlines.
If you demonstrate a discrepancy, it is up to your employer to prove a legitimate reason as to the entire difference in wages. Legitimate reasons may include seniority, merit, productivity as measured systematically, and/or a genuine reason other than sex, race or ethnicity (perhaps education, training, or experience).
Under state law, you have many protections. Don’t let the gender wage gap continue to the next generation — challenge it!
If you suspect that you’re the victim of wage discrimination, contact the skilled employment attorneys at Berman North. We provide personalized, client-focused representation to find the best solution for you.