California Equal Pay Checklist

State:
Multi-State
Control #:
US-AHI-047
Format:
Word; 
Rich Text
Instant download

Description

This AHI checklist helps a company ensure that they are providing equal pay for their employees.
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FAQ

"Fair" in this context means wages must be comparable to what other companies in the same field pay, as well as what you are paying employees within your company doing the same job. Salaries must also correspond to the employee's sense of his worth, based on his efforts, education and experience.

Provides that an employer cannot prohibit workers from disclosing their wages, discussing the wages of others, or inquiring about others' wages; prohibits employers from relying on an employee's prior salary to justify the sex-, race-, or ethnicity- based pay difference.

The Equal Pay Act of 1963, amending the Fair Labor Standards Act, protects against wage discrimination based on sex. The Equal Pay Act (EPA) protects both men and women.

Fair compensation does not mean everyone at the company is paid the same amount. Rather, fair compensation is paying employees an appropriate amount according to their performance, experience, and job requirements.

Here are five ways you can ensure equal pay on your team:Prevent salary disparities before making new hires.Review employee compensation on a regular basis.Separate compensation reviews from performance reviews.Disclose salary ranges for different positions and levels.Advocate for your people.

Have An Honest Conversation.Stay On Top Of The Market.Utilize Salary Surveys And Research.Balance Expertise, Potential And Market Value.Ask And Individualize.Know What Matters To Them.Have A Clear Compensation Strategy.Pay What It's Worth To You.More items...?

The EPA's four affirmative defenses allow unequal pay for equal work when the wages are set "pursuant to (i) a seniority system; (ii) a merit system; (iii) a system which measures earnings by quantity or quality of production; or (iv)any other factor other than sex."

In 2015, Governor Jerry Brown signed the California Equal Pay Act, a piece of legislation determined to expand existing anti-discrimination laws in California workplaces. The Act prohibits employers from forbidding employees from discussing their wages or the wages of other employees.

The Equal Pay Act requires that men and women in the same workplace be given equal pay for equal work. The jobs need not be identical, but they must be substantially equal. Job content (not job titles) determines whether jobs are substantially equal.

Employee wages are calculated by dividing total tips by weeks worked, then dividing that total by hours worked to get the tip rate. The tip rate is then added to the hourly rate; the sum of these is the total wages earned and must be equal to or more than the minimum wage.

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California Equal Pay Checklist