California laws with respect to equal pay and salary history, explained by Cyrus Batchan
The Californer/10028052

LOS ANGELES - April 17, 2019 - Californer -- The California Equal Pay Act has been in force since 1949, prohibiting employers from paying employees who perform the same work different wages based on the employee's gender.  Despite the law, however, female workers' wages continue to stagnate behind their male co-workers, estimated at 80% of the male co-workers' wages.  As such, California legislature has continued to pass legislative initiatives and updates aimed at remedying this disparity.

One of the provisions of the California Equal Pay Act received further clarification with a recent legislative update.  The law required employers to provide a pay scale for the position sought to an applicant upon reasonable request.  Previously, the key terms such as "applicant" and "reasonable request" were undefined by the statute.  A recent update has provided definition for these terms.  "Applicant" is defined as "an individual who is seeking employment with the employer and is not currently employed with that employer in any capacity or position."  "Reasonable request" is defined as a "request made after an applicant has completed an initial interview with the employer."

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There are certain acceptable reasons for disparity in pay.  For example, employers may pay similarly situated employees differently based on seniority or merit system.  Different pay may also be justified on quantity or quality of work.  There is also the broad catch-all of a "bona fide factor other than sex, race, or ethnicity."  Employer relying on such bona fide factor would have to show some reasonable basis for disparity in pay based on business necessity.  Also, employers may not prohibit employees from discussing their salary amongst themselves.

With continued focus on pay equality, entrepreneurs will have to ensure their pay structure and hiring practices comply with relevant state and federal requirements, notes Cyrus Batchan.

*** Cyrus Leon Batchan is a business consultant in Sherman Oaks, California. He has significant "hands on" experience with hospitality businesses. Currently, he is involved in the hospitality businesses Lock & Key, Nightshade, Skylight Nha Trang, and East-West Brewery (as Advisor).

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