California’s new Fair Pay Act went into effect on January 1, 2016, mandating that equal wages be paid to male and female employees who perform “substantially similar work”. It is recommended that California employers take steps to ensure compliance with the significant changes brought on by the new Act. These employers, will need to prove that any “wage differentials” exist due to one of four factors, including but not limited to seniority of the employee or a merit system.
Employers from the state of California should review their records and complete an internal wage audit to confirm they are within the provisions of the law.
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