Senate Bill 642 amends the definition of “pay scale” under Section 432.2 of the state Labor Code. The update definition is a “good faith estimate” of the hourly or salary wage range reasonably expected to be paid by the employer. The bill also changes the equal pay provisions found in section 1197.5 of the Labor Code.
Employers are prohibited from paying wages lower than rates paid to employees of “another sex” for substantially similar work. The law extends the time for civil action to be taken from two to three years after the last date the cause of action occurs and entitles employees to obtain relief under the equal pay law. Additionally, it offers clarification of “wages” and “wage rates” to include all forms of pay (salary, allowances, reimbursement, insurance, stock and stock options, bonuses, overtime pay, etc.)
This article is informational and does not constitute legal or financial advice. Consult with an employment lawyer or accountant for additional clarification on how these changes impact your company.
