Equal Pay and Discrimination Against Women

Many workers still earn less than white men in similar jobs despite progress in civil rights and a more diverse workforce. Data from the U.S. Census Bureau in 2020 shows that women make 82 cents for every dollar men earn. There are wage differences among racial and ethnic groups. Women of color earn far less than white individuals. These gaps are particularly striking in the finance, healthcare, and manufacturing sectors.

California has strong laws to address these pay gaps. Employees who are paid less than their colleagues for similar work can contact a sexual harassment lawyer. We at Empower Sexual Harassment Attorneys can guide you in pursuing justice under state and federal laws. The U.S. Equal Pay Act and California Fair Pay Act ensure equal pay for similar work, regardless of gender. Our experienced California Equal Pay Act attorneys can assist you in asserting your rights under these laws.

Federal Equal Pay Act

The US Congress passed the Equal Pay Act in 1963. This federal law prevents wage discrimination because of gender. It does not cover pay differences related to ethnicity or race. Most employers in the private and public sectors must follow the EPA rules. This Act makes it illegal to pay employees of one gender less than those of the opposite sex or gender. The rule applies to the same work that requires effort, equal skill, and responsibility under a similar condition.

The Federal EPA covers all types of compensation, including:

• Wages.
• Overtime.
• Salaries.
• Benefits.
• Bonuses.
• Gasoline allowances.
• Holiday and vacation pay.
• Travel expense reimbursements.

The Federal EPA allows specific reasons for pay differences under the rule. An employer may justify a pay gap if it is founded on:

• Systems that measure earnings based on quality and quantity of work.
• Employee seniority.
• Merit.
• Any reason other than gender.

However, if an employer cannot provide evidence that one of the exceptions applies, they may incur penalties for not addressing pay gaps based on gender or race. Under the Federal EPA, it is against the law to have pay differences between employees of different genders or races. This law applies even if these differences are based on previous pay rates or unintentional.

California’s Equal Pay Act

California established the EPA in 1949 to ensure equal pay for different sexual orientations. In 2015, California’s Governor Jerry Brown enhanced the pay protections by introducing the Fair Pay Act, which extended equal pay privileges to people of various ethnicities or races. Since then, California’s pay equity laws have grown to provide even more protections than those at the federal level.

The FPA requires the following:

• Extending the time an employer should keep income and job-related documentation from 3 years to 3 years.
• Employers cannot retaliate against workers who follow the law, nor can they stop workers from asking or talking about their pay with others.
• The rule makes it harder for employers to justify pay differences based on reasons aside from gender.
• Employers must provide reasonable arguments for any reasonable factors they use to explain wage differences and must consider the overall pay gap.
• The law no longer requires that workers who are compared for equal wages must be at the exact workplace.
• Workers doing similar jobs must receive equal pay, considering their responsibilities, effort, and skills.
• Employers cannot ask job candidates about their previous salaries.
• Employers can only give different wages based on seniority, work standard or duration differences, or other job-related reasons unrelated to race, ethnicity, or gender.

The California Fair Pay Act aims to eliminate pay gaps among workers of other genders, ethnicities, or races who perform similar work. This Act prohibits employers from paying one gender lower than another for “substantially comparable work.”

This type of work involves jobs that demand nearly the same level of responsibility, effort, and skills and work in comparable working conditions. These jobs do not require you to have identical details. They do not need to be exact copies of each other.

For example, consider two individuals: Individual A works at a fine dining restaurant, while Individual B runs a small food cart. Despite working in different environments, both individuals require similar culinary skills. They exert comparable physical and mental effort in prepping the food. They also share responsibilities for maintaining quality and food safety. While their specific tasks may vary, a broader look shows their jobs are alike.

The FPA allows workers in California to talk about their salaries with coworkers. Employers cannot retaliate against workers for these discussions. This policy aims to help uncover and fix issues related to unfair pay and the gender wage gap. Additionally, the law mandates that employers provide wage scales to job applicants upon request and maintain records of job titles and their corresponding wages. This requirement for transparency aims to combat potential discriminatory pay methods.

Employer Reasons for Work Pay Differences

California and Federal Equal Pay laws allow for legal pay differences among workers of different races, ethnicities, or genders, even if they do similar work. Here are four valid reasons an employer could use to explain pay differences according to the Equal Pay Act:

Pay Based on Seniority

A seniority system can justify pay differences based on an employee’s length of service. For example, an employee with ten years of vast experience can earn more than a new team member in the same role. This kind of pay structure is common in various industries, especially those with labor union agreements and strict hierarchies, like law firms.

Pay Based on an Employee’s Performance

In a merit-based system, an employee’s performance determines their pay. Employers can justify higher salaries for those who excel compared to their peers, such as receiving outstanding performance reviews. However, biased reviews may give employees grounds for equal pay and discrimination claims.

Pay Linked to Production Levels

In this plan, earnings depend on the quality or amount of work produced. For example, in a sales position, a team member who sells more products may earn higher commissions based on their sales volume.

Compensation Linked To Valid Reasons Not Related to Ethnicity, Race, or Sex

California law permits pay differences based on legitimate factors unrelated to ethnicity, sex, or race. It can include aspects like training, experience, or education, provided they are relevant to the job and essential for the position.

If an employer in California cannot show documented evidence that a pay difference is due to one of these valid reasons, affected employees may have strong cases.

Differences Between State and Federal EPA Laws

Both California and federal EPAs outlaw wage discrimination. Nevertheless, California’s law is more comprehensive. It makes wage discrimination founded on ethnicity, gender, and race illegal, while federal laws only address gender-based wage discrimination.

Another important distinction between these laws is how they compare a complainant’s work to that of a comparator. The federal Equal Pay Act requires equal labor for jobs that demand equal effort, responsibility, and skill under similar working conditions. In contrast, California law has more straightforward requirements. The comparator’s work must be significantly comparable to the complainant’s in effort, responsibility, and skill. Despite these differences, both laws are often analyzed similarly.

Numerous working women, especially women of color, still struggle with gender pay inequality despite the existence of the California and federal Equal Pay Acts. The United States Labor Department’s latest earnings report shows a 20% pay wage between men and women in the final quarter of 2018. The gap undermines the empowerment and equality goals that the Equal Pay Act is designed to promote.

California has lowered its earnings gap to under 17 percent since implementing the FPA in 2016. However, some companies still engage in unfair practices that discriminate against female employees. These unfair wage practices have serious effects on women and their loved ones. Lower wages mean less retirement income for women, longer times to pay off loans than men, and a tendency to be pushed into lower paying jobs.

If you experience pay discrimination due to your gender, you can seek compensation. Under the EPA laws, employers should give equal pay to women and men doing similar jobs. They can be considered negligent and held liable if they do not meet this requirement.

What Should You Do When You Experience Gender Wage Discrimination

When your employer pays you less compared to your male coworkers, you can file a complaint with the state’s Labor Commissioner’s Office. Another option is to sue your employer. To make your case stronger, consider following these steps:

• Know your rights—familiarize yourself with federal, local, and state laws about equal wages to determine if you have a valid claim.
• Gather evidence—gather information to support your case. Include detailed pay records for all employees and their genders. Note any discriminatory comments made. Document the job obligations and qualifications for each position.
• Reach out to your labor union—inform your union representative about the issue if you belong to a trade union. They may assist you by handling your concerns, speaking with your manager, or guiding you in building a strong case.
• Seek advice from an employment attorney—consult a lawyer focusing on gender wage discrimination. They can give you legal advice and explain how to seek justice and compensation.

Types of Wages That Should Be Equal

Equal wage laws state that the following types of pay should be the same for men and women at work as well as for employees of all ethnicities and races:

• Bonuses.
• Employer-sponsored healthcare.
• Hourly wages.
• Life insurance.
• Overtime pay.
• Retirement benefits.
• Reimbursement for expenses.
• Salaries.
• Stock options.
• Sick leave.
• Vacation pay.
• Travel costs and accommodations.

How to Demonstrate Equal Wage Discrimination in Your Workplace

To determine if unequal pay exists, various methods are used to compare whether jobs are substantially similar. When courts review job details, they will look at these factors:

• Location—Unequal pay can occur even if jobs are not at the exact site, especially in companies with multiple locations.
• Responsibility—The level of accountability in each role.
• Work environment—This includes workplace hazards and conditions.
• Effort—The mental and physical effort needed for each position. The quality or quantity of work may also influence pay structures.
• Skill status—The experience, education, training, and abilities required for each job, not employees’ skills. Seniority and merit can justify different pay rates.

The strength of an equal wage claim often relies on the proof you can gather. Your lawyer can help collect witness accounts, videos, records, and other necessary proof for your pay discrimination case. They can assist you in obtaining the compensation and benefits you deserve.

Compensation You Can Receive After an Equal Pay and Discrimination Claim

If you believe you have been treated unfairly at work because of your sex, you should seek legal assistance right away. A lawyer can examine your case and fight for you to receive the compensation you are entitled to from your employer. The compensation your attorney may seek includes the following:

• Court expenses and legal fees.
• Any unpaid wages, bonuses, or benefits you must have received.
• Interest on any unpaid wages.
• The amount of liquidated damages.
• Any missed promotions, if relevant.

You may qualify for punitive damages when your employer intentionally underpaid you because of your gender. Punitive damages are intended to hold the employer accountable for their actions. In serious cases, they could be liable to criminal accusations.

The Statute of Limitations for Filing a Wage Discrimination Claim

You must file an unequal wage lawsuit within 2 years from the infringement date in California. If the wage discrimination was deliberate, you have 36  months to file (CA Labor Code Section 1197.5(i)).

Each paycheck that demonstrates unequal pay counts as a violation for determining the time limitation to file a lawsuit. You can file a lawsuit for the California EPA infringement with the Office of the Labor Commissioner or take your case to court. You are not required to submit a lawsuit with the California Labor Commissioner before the court.

You should submit your claim to the California Department of Fair Employment and Housing when you have wage discrimination issues, like not securing a promotion due to gender. It is separate from any claims related to an Equal Pay Act violation. The DFEH is responsible for protecting state residents from job enforcement and discrimination against civil rights laws in the state.

If you believe you faced retaliation for filing a California EPA claim, you have 6 months from the date of the retaliation to file a lawsuit with the California Labor Commissioner’s Office. Also, you can take legal action within twelve months of the retaliation (Labor Code section 1197.5 (k)(3)). Remember, you should not file a retaliation lawsuit with the California Labor Commissioner’s Office before starting a lawsuit.

EPA Violations Versus Discrimination Claims

You can file some EPA claims as a discrimination claim under federal Title VII of the California Fair Employment and Housing Act (FEHA).

Title VII  and the EPA ban wage discrimination based on sex, but they have different requirements for defenses and proof for employers. To prove a case under the EPA, the complainant must show that the defendant pays different salaries to workers of the other gender for the same work. You must demonstrate that the jobs require effort, responsibility, and equal skill and work under similar conditions.

When the plaintiff establishes a basic case, employers are responsible for explaining the wage difference. The employer must show that the difference is due to merit systems, seniority systems, systems based on production quality or quantity, or any other reason unrelated to sex.

To win a case under Title VII, the complainant must demonstrate that their employer discriminated against their pay due to their sex. This law is more comprehensive than the EPA, which focuses solely on pay differences for equal work. Title VII also accepts the defenses allowed by the EPA, meaning that justifications allowed under the EPA are also valid in Title VII cases.

Both laws provide options for remedies like injunctive relief, back pay, and attorney fees. For cases involving the EPA, the court should determine if the defendant acted “willfully” to choose the right remedy.

Under the FEHA, plaintiffs with discrimination claims can also pursue punitive damages.

Other Pay Protections for Employees in California

California law provides extra rights for employees regarding pay equity. The following are some key protections that employees should be aware of.

Pay Transparency

The California Labor Code (LC) 432.3 sets clear rules for employers regarding the sharing of pay scale details in job ads. This law prevents employers from considering an applicant’s past salary when hiring and mandates that employers with fifteen or more workers include pay scales in their job listings.

According to the law, employers must provide pay scales to applicants or employees who ask for them. The law also specifies penalties for not following these rules, which can include fines. Colorado, Washington, and New York City have similar regulations. Employers must include a salary range in the job ads and may need to offer wage information to workers.

Retaliation Is Not Allowed

Both federal and state laws make it illegal for employers to retaliate against employees who exercise their rights under the Equal Pay Act. This rule means employers cannot penalize you for participating in activities protected by the EPA. These activities include:

• Talking about pay with coworkers.
• Inquiring about colleagues’ salaries.
• Filing complaints related to the EPA.

Employers could retaliate in various ways. While firing is a common form of retaliation, it can include demotion, harassment, negative performance reviews, and other negative actions.

Employees must meet three conditions to prove retaliation under the California EPA: They must show they participated in protected activities, prove the employer took adverse action against them, and link the action to their participation. However, under Senate Bill 497, there is a presumption of retaliation if employers take adverse actions against employees within ninety days of asserting their rights under the California EPA.

How Equal Pay and Discrimination Attorneys Can Assist

A lawyer who understands Federal and California pay equity regulations can help by:

• Examining pay disparities—A lawyer can review your work tasks, performance, and qualifications alongside those of higher-paid colleagues from different races, genders, or ethnic groups. They can also review your employer’s documents and pay practices to identify possible discrimination patterns.
• Countering employer justifications—A skilled EPA attorney knows the typical reasons employers use to justify illegal pay gaps. Your legal counsel can help refute these reasons with evidence and arguments highlighting their flaws.
• Gathering proof of discrimination—An attorney’s ability to collect evidence is crucial for developing a solid lawsuit for pay inequality. Your lawyer has the resources to gather necessary documents, such as job descriptions, payroll records, past performance reviews, and internal policies.
• Secure fair compensation—With the support of a knowledgeable lawyer, employees can obtain financial relief, including back pay for lost earnings and coverage for legal expenses.
• File legal lawsuits—A lawyer can guide you through filing a wage discrimination case before the deadlines set by California or federal law.

A professional pay discrimination lawyer is crucial for protecting your legal rights and ensuring you receive the settlement you deserve.

Contact a California Employment Attorney Near Me

Gender pay discrimination against women in the workplace is a major problem that has lasted for many years in the U.S. Fortunately, laws such as the Equal Pay Act and California Fair Pay Act give workers ways to tackle this issue. You may have a strong case if you show that you earn less than colleagues doing similar work and that the pay difference depends on your gender, ethnicity, or race. Your first step should be contacting a qualified equal-pay attorney to discuss your situation.

At Empower Sexual Harassment Attorneys, we have passionately represented victims of wage inequality and their families throughout California, advocating for their rights in claims and lawsuits. Our fair pay attorneys are dedicated to helping victims fight for pay equality and take legal action against employers who mistreat them. Call us at 619-800-7245, no matter your job or location in San Diego, California. We will evaluate your case and do everything possible to help you recover the compensation you deserve and achieve equal pay with your peers.