New Equal Pay Act obligations
The California Equal Pay Act took effect in 2016 to address disparities in pay based on gender. Now this law is seeing more changes for 2017. Effective January 1, 2017, the Equal Pay Act has been expanded to address pay disparities based on race and ethnicity as well. Accordingly, an employer must be able to prove that any pay differential between employees of different genders, races or ethnicities for substantially similar work is based on factors such as seniority, a merit system, pay based on quantity or quality of production or another bona fide factor such as education, training or experience.