Amended IN Senate April 10, 2025 CALIFORNIA LEGISLATURE 20252026 REGULAR SESSION Senate Bill No. 642Introduced by Senator LimnFebruary 20, 2025An act to amend Sections 432.3 and 1197.5 of the Labor Code, relating to employment. LEGISLATIVE COUNSEL'S DIGESTSB 642, as amended, Limn. Employment: payment of wages.Existing law requires an employer, upon reasonable request, to provide the pay scale for a position to an applicant applying for the position. Existing law requires an employer with 15 or more employees to include the pay scale for a position in any job posting. Existing law also requires an employer with 15 or more employees that engages a third party to announce, post, publish, or otherwise make known a job posting to provide the pay scale to the third party and requires the third party to include the pay scale in the job posting. Existing law establishes certain civil penalties for a violation of those provisions, provides for enforcement by the Labor Commissioner of the Division of Labor Standards Enforcement, and makes violation of certain provisions a crime.This bill would require the pay scale provided for purposes of those provisions tobe no more than 10% above or below the mean pay rate within the salary or hourly wage range. By expanding the scope of an existing crime, this bill would impose a state-mandated local program.Existing law imposes varying requirements upon employers to share the pay scale for a position with an applicant or in a job posting, as provided. Existing law defines pay scale as the salary or hourly wage range that the employer reasonably expects to pay for the position.This bill would revise the definition of pay scale to mean an estimate of this expected wage range that is made in good faith.Existing law prohibits an employer from paying its employees at wage rates less than the rates paid to employees of the opposite sex or another race or ethnicity for substantially similar work, except under specified circumstances. Existing law requires a civil action to recover wages for a violation of those provisions to be commenced no later than 2 years after the cause of action occurs or, if the cause of action arises out of a willful violation, no later than 3 years after the cause of action occurs.This bill would prohibit an employer from paying employees at wage rates less than the rates paid to employees of another sex instead of the opposite sex, and would require a civil action to recover wages to be commenced no later than 3 years after the cause of action occurs or 4 years if the cause of action arises out of a willful violation.This bill would specify that a cause of action occurs when a discriminatory compensation decision or practice is adopted, when an individual becomes subject to the decision or practice, or when an individual is affected by the application of the decision or practice. The bill would make a series of discriminatory wage payments actionable as a continuing violation if the discriminatory wage payments arise from an ongoing discriminatory compensation decision or practice. The bill would define wages, wage rates, and sex for purposes of those provisions.The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.This bill would provide that no reimbursement is required by this act for a specified reason.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: YESNO Bill TextThe people of the State of California do enact as follows:SECTION 1. Section 432.3 of the Labor Code is amended to read:432.3. (a) An employer shall not rely on the salary history information of an applicant for employment as a factor in determining whether to offer employment to an applicant or what salary to offer an applicant.(b) An employer shall not, orally or in writing, personally or through an agent, seek salary history information, including compensation and benefits, about an applicant for employment.(c) (1) An employer, upon reasonable request, shall provide the pay scale for a position to an applicant applying for employment. The pay scale provided in any job posting shall be no more than 10 percent above or below the mean pay rate within the salary or hourly wage range.(2) An employer, upon request, shall provide an employee the pay scale for the position in which the employee is currently employed.(3) An employer with 15 or more employees shall include the pay scale for a position in any job posting. The pay scale provided in any job posting shall be more than 10 percent above or below the mean pay rate within the salary or hourly wage range.(4) An employer shall maintain records of a job title and wage rate history for each employee for the duration of the employment plus three years after the end of the employment in order for the Labor Commissioner to determine if there is still a pattern of wage discrepancy. These records shall be open to inspection by the Labor Commissioner.(5) An employer with 15 or more employees that engages a third party to announce, post, publish, or otherwise make known a job posting shall provide the pay scale to the third party. The third party shall include the pay scale in the job posting. The pay scale provided in the job posting shall be no more than 10 percent above or below the mean pay rate within the salary or hourly wage range.(d) (1) A person who claims to be aggrieved by a violation of this section may file a written complaint with the Labor Commissioner within one year after the date the person learned of the violation. The complaint shall state the name and address of the employer and shall provide a detailed account of the alleged violation, as may be required by the Labor Commissioner.(2) A person who claims to be aggrieved by a violation of this section may also bring a civil action for injunctive relief and any other relief that the court deems appropriate.(3) The Labor Commissioner shall promptly investigate complaints alleging violation of this section.(4) Upon finding that an employer has violated this section, the Labor Commissioner may order the employer to pay a civil penalty of no less than one hundred dollars ($100) and no more than ten thousand dollars ($10,000) per violation. The Labor Commissioner shall determine the amount of the penalty based on the totality of the circumstances, including, but not limited to, whether the employer has previously violated this section. For a first violation of subdivision (c), no penalty shall be assessed upon demonstration by the employer that all job postings for open positions have been updated to include the pay scale as required by this section.(5) If an employer fails to keep records in violation of this section, there shall be a rebuttable presumption in favor of the employees claim.(e) Section 433 does not apply to this section.(f) This section does not apply to salary history information disclosable to the public pursuant to federal or state law, including the California Public Records Act (Division 10 (commencing with Section 7920.000) of Title 1 of the Government Code) or the federal Freedom of Information Act (Section 552 of Title 5 of the United States Code).(g) This section applies to all employers, including state and local government employers and the Legislature.(h) Nothing in this section shall prohibit an applicant from voluntarily and without prompting disclosing salary history information to a prospective employer.(i) If an applicant voluntarily and without prompting discloses salary history information to a prospective employer, nothing in this section shall prohibit that employer from considering or relying on that voluntarily disclosed salary history information in determining the salary for that applicant.(j) Nothing in this section shall prohibit an employer from asking an applicant about the applicants salary expectation for the position being applied for.(k) Consistent with Section 1197.5, nothing in this section shall be construed to allow prior salary to justify any disparity in compensation.(l) All civil penalties collected pursuant to this section shall be deposited into the Labor Enforcement and Compliance Fund for distribution to the Division of Labor Standards Enforcement. Upon appropriation by the Legislature, these funds may be expended by the division to cover reasonable ongoing costs of administering and enforcing this section.(m) For purposes of this section, all of the following shall apply:(1) Pay scale means a good faith estimate of the salary or hourly wage range that the employer reasonably expects to pay for the position.(2) Applicant or applicant for employment means an individual who is seeking employment with the employer and is not currently employed with that employer in any capacity or position.SEC. 2. Section 1197.5 of the Labor Code is amended to read:1197.5. (a) An employer shall not pay any of its employees at wage rates less than the rates paid to employees of another sex for substantially similar work, when viewed as a composite of skill, effort, and responsibility, and performed under similar working conditions, except where the employer demonstrates:(1) The wage differential is based upon one or more of the following factors:(A) A seniority system.(B) A merit system.(C) A system that measures earnings by quantity or quality of production.(D) A bona fide factor other than sex, such as education, training, or experience. This factor shall apply only if the employer demonstrates that the factor is not based on or derived from a sex-based differential in compensation, is job related with respect to the position in question, and is consistent with a business necessity. For purposes of this subparagraph, business necessity means an overriding legitimate business purpose such that the factor relied upon effectively fulfills the business purpose it is supposed to serve. This defense shall not apply if the employee demonstrates that an alternative business practice exists that would serve the same business purpose without producing the wage differential.(2) Each factor relied upon is applied reasonably.(3) The one or more factors relied upon account for the entire wage differential.(4) Prior salary shall not justify any disparity in compensation. Nothing in this section shall be interpreted to mean that an employer may not make a compensation decision based on a current employees existing salary, so long as any wage differential resulting from that compensation decision is justified by one or more of the factors in this subdivision.(b) An employer shall not pay any of its employees at wage rates less than the rates paid to employees of another race or ethnicity for substantially similar work, when viewed as a composite of skill, effort, and responsibility, and performed under similar working conditions, except where the employer demonstrates:(1) The wage differential is based upon one or more of the following factors:(A) A seniority system.(B) A merit system.(C) A system that measures earnings by quantity or quality of production.(D) A bona fide factor other than race or ethnicity, such as education, training, or experience. This factor shall apply only if the employer demonstrates that the factor is not based on or derived from a race- or ethnicity-based differential in compensation, is job related with respect to the position in question, and is consistent with a business necessity. For purposes of this subparagraph, business necessity means an overriding legitimate business purpose such that the factor relied upon effectively fulfills the business purpose it is supposed to serve. This defense shall not apply if the employee demonstrates that an alternative business practice exists that would serve the same business purpose without producing the wage differential.(2) Each factor relied upon is applied reasonably.(3) The one or more factors relied upon account for the entire wage differential.(4) Prior salary shall not justify any disparity in compensation. Nothing in this section shall be interpreted to mean that an employer may not make a compensation decision based on a current employees existing salary, so long as any wage differential resulting from that compensation decision is justified by one or more of the factors listed in this subdivision.(c) Any employer who violates subdivision (a) or (b) is liable to the employee affected in the amount of the wages, and interest thereon, of which the employee is deprived by reason of the violation, and an additional equal amount as liquidated damages.(d) The Division of Labor Standards Enforcement shall administer and enforce this section. If the division finds that an employer has violated this section, it may supervise the payment of wages and interest found to be due and unpaid to employees under subdivision (a) or (b). Acceptance of payment in full made by an employer and approved by the division shall constitute a waiver on the part of the employee of the employees cause of action under subdivision (h).(e) Every employer shall maintain records of the wages and wage rates, job classifications, and other terms and conditions of employment of the persons employed by the employer. All of the records shall be kept on file for a period of three years.(f) Any employee may file a complaint with the division that the wages paid are less than the wages to which the employee is entitled under subdivision (a) or (b) or that the employer is in violation of subdivision (k). The complaint shall be investigated as provided in subdivision (b) of Section 98.7. The division shall keep confidential the name of any employee who submits to the division a complaint regarding an alleged violation of subdivision (a), (b), or (k) until the division establishes the validity of the complaint, unless the division must abridge confidentiality to investigate the complaint. The name of the complaining employee shall remain confidential if the complaint is withdrawn before the confidentiality is abridged by the division. The division shall take all proceedings necessary to enforce the payment of any sums found to be due and unpaid to these employees.(g) The department or division may commence and prosecute, unless otherwise requested by the employee or affected group of employees, a civil action on behalf of the employee and on behalf of a similarly affected group of employees to recover unpaid wages and liquidated damages under subdivision (a) or (b), and in addition shall be entitled to recover costs of suit. The consent of any employee to the bringing of any action shall constitute a waiver on the part of the employee of the employees cause of action under subdivision (h) unless the action is dismissed without prejudice by the department or the division, except that the employee may intervene in the suit or may initiate independent action if the suit has not been determined within 180 days from the date of the filing of the complaint.(h) An employee receiving less than the wage to which the employee is entitled under this section may recover in a civil action the balance of the wages, including interest thereon, and an equal amount as liquidated damages, together with the costs of the suit and reasonable attorneys fees, notwithstanding any agreement to work for a lesser wage.(i) (1) A civil action to recover wages under subdivision (a) or (b) may be commenced no later than three years after the cause of action occurs, except that a cause of action arising out of a willful violation may be commenced no later than four years after the cause of action occurs.(2) For purposes of this subdivision, a cause of action occurs when any of the following occur:(A) A discriminatory compensation decision or other practice is adopted.(B) An individual becomes subject to a discriminatory compensation decision or other practice.(C) When an individual is affected by application of a discriminatory compensation decision or other practice, including each time wages, benefits, or other compensation is paid, resulting in whole or in part from the decision or other practice.(3) A series of discriminatory wage payments shall be actionable as a continuing violation if the discriminatory wage payments arise in whole or in part from an ongoing discriminatory compensation decision or practice.(j) If an employee recovers amounts due to the employee under subdivision (c), and also files a complaint or brings an action under subdivision (d) of Section 206 of Title 29 of the United States Code which results in an additional recovery under federal law for the same violation, the employee shall return to the employer the amounts recovered under subdivision (c), or the amounts recovered under federal law, whichever is less.(k) (1) An employer shall not discharge, or in any manner discriminate or retaliate against, any employee by reason of any action taken by the employee to invoke or assist in any manner the enforcement of this section. If an employer engages in any action prohibited by this section within 90 days of the protected activity specified in this section, there shall be a rebuttable presumption in favor of the employees claim. An employer shall not prohibit an employee from disclosing the employees own wages, discussing the wages of others, inquiring about another employees wages, or aiding or encouraging any other employee to exercise their rights under this section. Nothing in this section creates an obligation to disclose wages.(2) Any employee who has been discharged, discriminated or retaliated against, in the terms and conditions of their employment because the employee engaged in any conduct delineated in this section may recover in a civil action reinstatement and reimbursement for lost wages and work benefits caused by the acts of the employer, including interest thereon, as well as appropriate equitable relief.(3) A civil action brought under this subdivision may be commenced no later than one year after the cause of action occurs.(l) As used in this section:(1) Employer includes public and private employers. Section 1199.5 does not apply to a public employer.(2) Sex has the same meaning as defined in Section 12926 of the Government Code.(3) Wages and wage rates include all forms of pay, including, but not limited to, salary, overtime pay, bonuses, stock, stock options, profit sharing and bonus plans, life insurance, vacation and holiday pay, cleaning or gasoline allowances, hotel accommodations, reimbursement for travel expenses, and benefits.SEC. 3.No reimbursement is required by this act pursuant to Section 6 of Article XIII B of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIII B of the California Constitution.
Amended IN Senate April 10, 2025 CALIFORNIA LEGISLATURE 20252026 REGULAR SESSION Senate Bill No. 642Introduced by Senator LimnFebruary 20, 2025An act to amend Sections 432.3 and 1197.5 of the Labor Code, relating to employment. LEGISLATIVE COUNSEL'S DIGESTSB 642, as amended, Limn. Employment: payment of wages.Existing law requires an employer, upon reasonable request, to provide the pay scale for a position to an applicant applying for the position. Existing law requires an employer with 15 or more employees to include the pay scale for a position in any job posting. Existing law also requires an employer with 15 or more employees that engages a third party to announce, post, publish, or otherwise make known a job posting to provide the pay scale to the third party and requires the third party to include the pay scale in the job posting. Existing law establishes certain civil penalties for a violation of those provisions, provides for enforcement by the Labor Commissioner of the Division of Labor Standards Enforcement, and makes violation of certain provisions a crime.This bill would require the pay scale provided for purposes of those provisions tobe no more than 10% above or below the mean pay rate within the salary or hourly wage range. By expanding the scope of an existing crime, this bill would impose a state-mandated local program.Existing law imposes varying requirements upon employers to share the pay scale for a position with an applicant or in a job posting, as provided. Existing law defines pay scale as the salary or hourly wage range that the employer reasonably expects to pay for the position.This bill would revise the definition of pay scale to mean an estimate of this expected wage range that is made in good faith.Existing law prohibits an employer from paying its employees at wage rates less than the rates paid to employees of the opposite sex or another race or ethnicity for substantially similar work, except under specified circumstances. Existing law requires a civil action to recover wages for a violation of those provisions to be commenced no later than 2 years after the cause of action occurs or, if the cause of action arises out of a willful violation, no later than 3 years after the cause of action occurs.This bill would prohibit an employer from paying employees at wage rates less than the rates paid to employees of another sex instead of the opposite sex, and would require a civil action to recover wages to be commenced no later than 3 years after the cause of action occurs or 4 years if the cause of action arises out of a willful violation.This bill would specify that a cause of action occurs when a discriminatory compensation decision or practice is adopted, when an individual becomes subject to the decision or practice, or when an individual is affected by the application of the decision or practice. The bill would make a series of discriminatory wage payments actionable as a continuing violation if the discriminatory wage payments arise from an ongoing discriminatory compensation decision or practice. The bill would define wages, wage rates, and sex for purposes of those provisions.The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.This bill would provide that no reimbursement is required by this act for a specified reason.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: YESNO
Amended IN Senate April 10, 2025
Amended IN Senate April 10, 2025
CALIFORNIA LEGISLATURE 20252026 REGULAR SESSION
Senate Bill
No. 642
Introduced by Senator LimnFebruary 20, 2025
Introduced by Senator Limn
February 20, 2025
An act to amend Sections 432.3 and 1197.5 of the Labor Code, relating to employment.
LEGISLATIVE COUNSEL'S DIGEST
## LEGISLATIVE COUNSEL'S DIGEST
SB 642, as amended, Limn. Employment: payment of wages.
Existing law requires an employer, upon reasonable request, to provide the pay scale for a position to an applicant applying for the position. Existing law requires an employer with 15 or more employees to include the pay scale for a position in any job posting. Existing law also requires an employer with 15 or more employees that engages a third party to announce, post, publish, or otherwise make known a job posting to provide the pay scale to the third party and requires the third party to include the pay scale in the job posting. Existing law establishes certain civil penalties for a violation of those provisions, provides for enforcement by the Labor Commissioner of the Division of Labor Standards Enforcement, and makes violation of certain provisions a crime.This bill would require the pay scale provided for purposes of those provisions tobe no more than 10% above or below the mean pay rate within the salary or hourly wage range. By expanding the scope of an existing crime, this bill would impose a state-mandated local program.Existing law imposes varying requirements upon employers to share the pay scale for a position with an applicant or in a job posting, as provided. Existing law defines pay scale as the salary or hourly wage range that the employer reasonably expects to pay for the position.This bill would revise the definition of pay scale to mean an estimate of this expected wage range that is made in good faith.Existing law prohibits an employer from paying its employees at wage rates less than the rates paid to employees of the opposite sex or another race or ethnicity for substantially similar work, except under specified circumstances. Existing law requires a civil action to recover wages for a violation of those provisions to be commenced no later than 2 years after the cause of action occurs or, if the cause of action arises out of a willful violation, no later than 3 years after the cause of action occurs.This bill would prohibit an employer from paying employees at wage rates less than the rates paid to employees of another sex instead of the opposite sex, and would require a civil action to recover wages to be commenced no later than 3 years after the cause of action occurs or 4 years if the cause of action arises out of a willful violation.This bill would specify that a cause of action occurs when a discriminatory compensation decision or practice is adopted, when an individual becomes subject to the decision or practice, or when an individual is affected by the application of the decision or practice. The bill would make a series of discriminatory wage payments actionable as a continuing violation if the discriminatory wage payments arise from an ongoing discriminatory compensation decision or practice. The bill would define wages, wage rates, and sex for purposes of those provisions.The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.This bill would provide that no reimbursement is required by this act for a specified reason.
Existing law requires an employer, upon reasonable request, to provide the pay scale for a position to an applicant applying for the position. Existing law requires an employer with 15 or more employees to include the pay scale for a position in any job posting. Existing law also requires an employer with 15 or more employees that engages a third party to announce, post, publish, or otherwise make known a job posting to provide the pay scale to the third party and requires the third party to include the pay scale in the job posting. Existing law establishes certain civil penalties for a violation of those provisions, provides for enforcement by the Labor Commissioner of the Division of Labor Standards Enforcement, and makes violation of certain provisions a crime.
This bill would require the pay scale provided for purposes of those provisions tobe no more than 10% above or below the mean pay rate within the salary or hourly wage range. By expanding the scope of an existing crime, this bill would impose a state-mandated local program.
Existing law imposes varying requirements upon employers to share the pay scale for a position with an applicant or in a job posting, as provided. Existing law defines pay scale as the salary or hourly wage range that the employer reasonably expects to pay for the position.
This bill would revise the definition of pay scale to mean an estimate of this expected wage range that is made in good faith.
Existing law prohibits an employer from paying its employees at wage rates less than the rates paid to employees of the opposite sex or another race or ethnicity for substantially similar work, except under specified circumstances. Existing law requires a civil action to recover wages for a violation of those provisions to be commenced no later than 2 years after the cause of action occurs or, if the cause of action arises out of a willful violation, no later than 3 years after the cause of action occurs.
This bill would prohibit an employer from paying employees at wage rates less than the rates paid to employees of another sex instead of the opposite sex, and would require a civil action to recover wages to be commenced no later than 3 years after the cause of action occurs or 4 years if the cause of action arises out of a willful violation.
This bill would specify that a cause of action occurs when a discriminatory compensation decision or practice is adopted, when an individual becomes subject to the decision or practice, or when an individual is affected by the application of the decision or practice. The bill would make a series of discriminatory wage payments actionable as a continuing violation if the discriminatory wage payments arise from an ongoing discriminatory compensation decision or practice. The bill would define wages, wage rates, and sex for purposes of those provisions.
The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.
This bill would provide that no reimbursement is required by this act for a specified reason.
## Digest Key
## Bill Text
The people of the State of California do enact as follows:SECTION 1. Section 432.3 of the Labor Code is amended to read:432.3. (a) An employer shall not rely on the salary history information of an applicant for employment as a factor in determining whether to offer employment to an applicant or what salary to offer an applicant.(b) An employer shall not, orally or in writing, personally or through an agent, seek salary history information, including compensation and benefits, about an applicant for employment.(c) (1) An employer, upon reasonable request, shall provide the pay scale for a position to an applicant applying for employment. The pay scale provided in any job posting shall be no more than 10 percent above or below the mean pay rate within the salary or hourly wage range.(2) An employer, upon request, shall provide an employee the pay scale for the position in which the employee is currently employed.(3) An employer with 15 or more employees shall include the pay scale for a position in any job posting. The pay scale provided in any job posting shall be more than 10 percent above or below the mean pay rate within the salary or hourly wage range.(4) An employer shall maintain records of a job title and wage rate history for each employee for the duration of the employment plus three years after the end of the employment in order for the Labor Commissioner to determine if there is still a pattern of wage discrepancy. These records shall be open to inspection by the Labor Commissioner.(5) An employer with 15 or more employees that engages a third party to announce, post, publish, or otherwise make known a job posting shall provide the pay scale to the third party. The third party shall include the pay scale in the job posting. The pay scale provided in the job posting shall be no more than 10 percent above or below the mean pay rate within the salary or hourly wage range.(d) (1) A person who claims to be aggrieved by a violation of this section may file a written complaint with the Labor Commissioner within one year after the date the person learned of the violation. The complaint shall state the name and address of the employer and shall provide a detailed account of the alleged violation, as may be required by the Labor Commissioner.(2) A person who claims to be aggrieved by a violation of this section may also bring a civil action for injunctive relief and any other relief that the court deems appropriate.(3) The Labor Commissioner shall promptly investigate complaints alleging violation of this section.(4) Upon finding that an employer has violated this section, the Labor Commissioner may order the employer to pay a civil penalty of no less than one hundred dollars ($100) and no more than ten thousand dollars ($10,000) per violation. The Labor Commissioner shall determine the amount of the penalty based on the totality of the circumstances, including, but not limited to, whether the employer has previously violated this section. For a first violation of subdivision (c), no penalty shall be assessed upon demonstration by the employer that all job postings for open positions have been updated to include the pay scale as required by this section.(5) If an employer fails to keep records in violation of this section, there shall be a rebuttable presumption in favor of the employees claim.(e) Section 433 does not apply to this section.(f) This section does not apply to salary history information disclosable to the public pursuant to federal or state law, including the California Public Records Act (Division 10 (commencing with Section 7920.000) of Title 1 of the Government Code) or the federal Freedom of Information Act (Section 552 of Title 5 of the United States Code).(g) This section applies to all employers, including state and local government employers and the Legislature.(h) Nothing in this section shall prohibit an applicant from voluntarily and without prompting disclosing salary history information to a prospective employer.(i) If an applicant voluntarily and without prompting discloses salary history information to a prospective employer, nothing in this section shall prohibit that employer from considering or relying on that voluntarily disclosed salary history information in determining the salary for that applicant.(j) Nothing in this section shall prohibit an employer from asking an applicant about the applicants salary expectation for the position being applied for.(k) Consistent with Section 1197.5, nothing in this section shall be construed to allow prior salary to justify any disparity in compensation.(l) All civil penalties collected pursuant to this section shall be deposited into the Labor Enforcement and Compliance Fund for distribution to the Division of Labor Standards Enforcement. Upon appropriation by the Legislature, these funds may be expended by the division to cover reasonable ongoing costs of administering and enforcing this section.(m) For purposes of this section, all of the following shall apply:(1) Pay scale means a good faith estimate of the salary or hourly wage range that the employer reasonably expects to pay for the position.(2) Applicant or applicant for employment means an individual who is seeking employment with the employer and is not currently employed with that employer in any capacity or position.SEC. 2. Section 1197.5 of the Labor Code is amended to read:1197.5. (a) An employer shall not pay any of its employees at wage rates less than the rates paid to employees of another sex for substantially similar work, when viewed as a composite of skill, effort, and responsibility, and performed under similar working conditions, except where the employer demonstrates:(1) The wage differential is based upon one or more of the following factors:(A) A seniority system.(B) A merit system.(C) A system that measures earnings by quantity or quality of production.(D) A bona fide factor other than sex, such as education, training, or experience. This factor shall apply only if the employer demonstrates that the factor is not based on or derived from a sex-based differential in compensation, is job related with respect to the position in question, and is consistent with a business necessity. For purposes of this subparagraph, business necessity means an overriding legitimate business purpose such that the factor relied upon effectively fulfills the business purpose it is supposed to serve. This defense shall not apply if the employee demonstrates that an alternative business practice exists that would serve the same business purpose without producing the wage differential.(2) Each factor relied upon is applied reasonably.(3) The one or more factors relied upon account for the entire wage differential.(4) Prior salary shall not justify any disparity in compensation. Nothing in this section shall be interpreted to mean that an employer may not make a compensation decision based on a current employees existing salary, so long as any wage differential resulting from that compensation decision is justified by one or more of the factors in this subdivision.(b) An employer shall not pay any of its employees at wage rates less than the rates paid to employees of another race or ethnicity for substantially similar work, when viewed as a composite of skill, effort, and responsibility, and performed under similar working conditions, except where the employer demonstrates:(1) The wage differential is based upon one or more of the following factors:(A) A seniority system.(B) A merit system.(C) A system that measures earnings by quantity or quality of production.(D) A bona fide factor other than race or ethnicity, such as education, training, or experience. This factor shall apply only if the employer demonstrates that the factor is not based on or derived from a race- or ethnicity-based differential in compensation, is job related with respect to the position in question, and is consistent with a business necessity. For purposes of this subparagraph, business necessity means an overriding legitimate business purpose such that the factor relied upon effectively fulfills the business purpose it is supposed to serve. This defense shall not apply if the employee demonstrates that an alternative business practice exists that would serve the same business purpose without producing the wage differential.(2) Each factor relied upon is applied reasonably.(3) The one or more factors relied upon account for the entire wage differential.(4) Prior salary shall not justify any disparity in compensation. Nothing in this section shall be interpreted to mean that an employer may not make a compensation decision based on a current employees existing salary, so long as any wage differential resulting from that compensation decision is justified by one or more of the factors listed in this subdivision.(c) Any employer who violates subdivision (a) or (b) is liable to the employee affected in the amount of the wages, and interest thereon, of which the employee is deprived by reason of the violation, and an additional equal amount as liquidated damages.(d) The Division of Labor Standards Enforcement shall administer and enforce this section. If the division finds that an employer has violated this section, it may supervise the payment of wages and interest found to be due and unpaid to employees under subdivision (a) or (b). Acceptance of payment in full made by an employer and approved by the division shall constitute a waiver on the part of the employee of the employees cause of action under subdivision (h).(e) Every employer shall maintain records of the wages and wage rates, job classifications, and other terms and conditions of employment of the persons employed by the employer. All of the records shall be kept on file for a period of three years.(f) Any employee may file a complaint with the division that the wages paid are less than the wages to which the employee is entitled under subdivision (a) or (b) or that the employer is in violation of subdivision (k). The complaint shall be investigated as provided in subdivision (b) of Section 98.7. The division shall keep confidential the name of any employee who submits to the division a complaint regarding an alleged violation of subdivision (a), (b), or (k) until the division establishes the validity of the complaint, unless the division must abridge confidentiality to investigate the complaint. The name of the complaining employee shall remain confidential if the complaint is withdrawn before the confidentiality is abridged by the division. The division shall take all proceedings necessary to enforce the payment of any sums found to be due and unpaid to these employees.(g) The department or division may commence and prosecute, unless otherwise requested by the employee or affected group of employees, a civil action on behalf of the employee and on behalf of a similarly affected group of employees to recover unpaid wages and liquidated damages under subdivision (a) or (b), and in addition shall be entitled to recover costs of suit. The consent of any employee to the bringing of any action shall constitute a waiver on the part of the employee of the employees cause of action under subdivision (h) unless the action is dismissed without prejudice by the department or the division, except that the employee may intervene in the suit or may initiate independent action if the suit has not been determined within 180 days from the date of the filing of the complaint.(h) An employee receiving less than the wage to which the employee is entitled under this section may recover in a civil action the balance of the wages, including interest thereon, and an equal amount as liquidated damages, together with the costs of the suit and reasonable attorneys fees, notwithstanding any agreement to work for a lesser wage.(i) (1) A civil action to recover wages under subdivision (a) or (b) may be commenced no later than three years after the cause of action occurs, except that a cause of action arising out of a willful violation may be commenced no later than four years after the cause of action occurs.(2) For purposes of this subdivision, a cause of action occurs when any of the following occur:(A) A discriminatory compensation decision or other practice is adopted.(B) An individual becomes subject to a discriminatory compensation decision or other practice.(C) When an individual is affected by application of a discriminatory compensation decision or other practice, including each time wages, benefits, or other compensation is paid, resulting in whole or in part from the decision or other practice.(3) A series of discriminatory wage payments shall be actionable as a continuing violation if the discriminatory wage payments arise in whole or in part from an ongoing discriminatory compensation decision or practice.(j) If an employee recovers amounts due to the employee under subdivision (c), and also files a complaint or brings an action under subdivision (d) of Section 206 of Title 29 of the United States Code which results in an additional recovery under federal law for the same violation, the employee shall return to the employer the amounts recovered under subdivision (c), or the amounts recovered under federal law, whichever is less.(k) (1) An employer shall not discharge, or in any manner discriminate or retaliate against, any employee by reason of any action taken by the employee to invoke or assist in any manner the enforcement of this section. If an employer engages in any action prohibited by this section within 90 days of the protected activity specified in this section, there shall be a rebuttable presumption in favor of the employees claim. An employer shall not prohibit an employee from disclosing the employees own wages, discussing the wages of others, inquiring about another employees wages, or aiding or encouraging any other employee to exercise their rights under this section. Nothing in this section creates an obligation to disclose wages.(2) Any employee who has been discharged, discriminated or retaliated against, in the terms and conditions of their employment because the employee engaged in any conduct delineated in this section may recover in a civil action reinstatement and reimbursement for lost wages and work benefits caused by the acts of the employer, including interest thereon, as well as appropriate equitable relief.(3) A civil action brought under this subdivision may be commenced no later than one year after the cause of action occurs.(l) As used in this section:(1) Employer includes public and private employers. Section 1199.5 does not apply to a public employer.(2) Sex has the same meaning as defined in Section 12926 of the Government Code.(3) Wages and wage rates include all forms of pay, including, but not limited to, salary, overtime pay, bonuses, stock, stock options, profit sharing and bonus plans, life insurance, vacation and holiday pay, cleaning or gasoline allowances, hotel accommodations, reimbursement for travel expenses, and benefits.SEC. 3.No reimbursement is required by this act pursuant to Section 6 of Article XIII B of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIII B of the California Constitution.
The people of the State of California do enact as follows:
## The people of the State of California do enact as follows:
SECTION 1. Section 432.3 of the Labor Code is amended to read:432.3. (a) An employer shall not rely on the salary history information of an applicant for employment as a factor in determining whether to offer employment to an applicant or what salary to offer an applicant.(b) An employer shall not, orally or in writing, personally or through an agent, seek salary history information, including compensation and benefits, about an applicant for employment.(c) (1) An employer, upon reasonable request, shall provide the pay scale for a position to an applicant applying for employment. The pay scale provided in any job posting shall be no more than 10 percent above or below the mean pay rate within the salary or hourly wage range.(2) An employer, upon request, shall provide an employee the pay scale for the position in which the employee is currently employed.(3) An employer with 15 or more employees shall include the pay scale for a position in any job posting. The pay scale provided in any job posting shall be more than 10 percent above or below the mean pay rate within the salary or hourly wage range.(4) An employer shall maintain records of a job title and wage rate history for each employee for the duration of the employment plus three years after the end of the employment in order for the Labor Commissioner to determine if there is still a pattern of wage discrepancy. These records shall be open to inspection by the Labor Commissioner.(5) An employer with 15 or more employees that engages a third party to announce, post, publish, or otherwise make known a job posting shall provide the pay scale to the third party. The third party shall include the pay scale in the job posting. The pay scale provided in the job posting shall be no more than 10 percent above or below the mean pay rate within the salary or hourly wage range.(d) (1) A person who claims to be aggrieved by a violation of this section may file a written complaint with the Labor Commissioner within one year after the date the person learned of the violation. The complaint shall state the name and address of the employer and shall provide a detailed account of the alleged violation, as may be required by the Labor Commissioner.(2) A person who claims to be aggrieved by a violation of this section may also bring a civil action for injunctive relief and any other relief that the court deems appropriate.(3) The Labor Commissioner shall promptly investigate complaints alleging violation of this section.(4) Upon finding that an employer has violated this section, the Labor Commissioner may order the employer to pay a civil penalty of no less than one hundred dollars ($100) and no more than ten thousand dollars ($10,000) per violation. The Labor Commissioner shall determine the amount of the penalty based on the totality of the circumstances, including, but not limited to, whether the employer has previously violated this section. For a first violation of subdivision (c), no penalty shall be assessed upon demonstration by the employer that all job postings for open positions have been updated to include the pay scale as required by this section.(5) If an employer fails to keep records in violation of this section, there shall be a rebuttable presumption in favor of the employees claim.(e) Section 433 does not apply to this section.(f) This section does not apply to salary history information disclosable to the public pursuant to federal or state law, including the California Public Records Act (Division 10 (commencing with Section 7920.000) of Title 1 of the Government Code) or the federal Freedom of Information Act (Section 552 of Title 5 of the United States Code).(g) This section applies to all employers, including state and local government employers and the Legislature.(h) Nothing in this section shall prohibit an applicant from voluntarily and without prompting disclosing salary history information to a prospective employer.(i) If an applicant voluntarily and without prompting discloses salary history information to a prospective employer, nothing in this section shall prohibit that employer from considering or relying on that voluntarily disclosed salary history information in determining the salary for that applicant.(j) Nothing in this section shall prohibit an employer from asking an applicant about the applicants salary expectation for the position being applied for.(k) Consistent with Section 1197.5, nothing in this section shall be construed to allow prior salary to justify any disparity in compensation.(l) All civil penalties collected pursuant to this section shall be deposited into the Labor Enforcement and Compliance Fund for distribution to the Division of Labor Standards Enforcement. Upon appropriation by the Legislature, these funds may be expended by the division to cover reasonable ongoing costs of administering and enforcing this section.(m) For purposes of this section, all of the following shall apply:(1) Pay scale means a good faith estimate of the salary or hourly wage range that the employer reasonably expects to pay for the position.(2) Applicant or applicant for employment means an individual who is seeking employment with the employer and is not currently employed with that employer in any capacity or position.
SECTION 1. Section 432.3 of the Labor Code is amended to read:
### SECTION 1.
432.3. (a) An employer shall not rely on the salary history information of an applicant for employment as a factor in determining whether to offer employment to an applicant or what salary to offer an applicant.(b) An employer shall not, orally or in writing, personally or through an agent, seek salary history information, including compensation and benefits, about an applicant for employment.(c) (1) An employer, upon reasonable request, shall provide the pay scale for a position to an applicant applying for employment. The pay scale provided in any job posting shall be no more than 10 percent above or below the mean pay rate within the salary or hourly wage range.(2) An employer, upon request, shall provide an employee the pay scale for the position in which the employee is currently employed.(3) An employer with 15 or more employees shall include the pay scale for a position in any job posting. The pay scale provided in any job posting shall be more than 10 percent above or below the mean pay rate within the salary or hourly wage range.(4) An employer shall maintain records of a job title and wage rate history for each employee for the duration of the employment plus three years after the end of the employment in order for the Labor Commissioner to determine if there is still a pattern of wage discrepancy. These records shall be open to inspection by the Labor Commissioner.(5) An employer with 15 or more employees that engages a third party to announce, post, publish, or otherwise make known a job posting shall provide the pay scale to the third party. The third party shall include the pay scale in the job posting. The pay scale provided in the job posting shall be no more than 10 percent above or below the mean pay rate within the salary or hourly wage range.(d) (1) A person who claims to be aggrieved by a violation of this section may file a written complaint with the Labor Commissioner within one year after the date the person learned of the violation. The complaint shall state the name and address of the employer and shall provide a detailed account of the alleged violation, as may be required by the Labor Commissioner.(2) A person who claims to be aggrieved by a violation of this section may also bring a civil action for injunctive relief and any other relief that the court deems appropriate.(3) The Labor Commissioner shall promptly investigate complaints alleging violation of this section.(4) Upon finding that an employer has violated this section, the Labor Commissioner may order the employer to pay a civil penalty of no less than one hundred dollars ($100) and no more than ten thousand dollars ($10,000) per violation. The Labor Commissioner shall determine the amount of the penalty based on the totality of the circumstances, including, but not limited to, whether the employer has previously violated this section. For a first violation of subdivision (c), no penalty shall be assessed upon demonstration by the employer that all job postings for open positions have been updated to include the pay scale as required by this section.(5) If an employer fails to keep records in violation of this section, there shall be a rebuttable presumption in favor of the employees claim.(e) Section 433 does not apply to this section.(f) This section does not apply to salary history information disclosable to the public pursuant to federal or state law, including the California Public Records Act (Division 10 (commencing with Section 7920.000) of Title 1 of the Government Code) or the federal Freedom of Information Act (Section 552 of Title 5 of the United States Code).(g) This section applies to all employers, including state and local government employers and the Legislature.(h) Nothing in this section shall prohibit an applicant from voluntarily and without prompting disclosing salary history information to a prospective employer.(i) If an applicant voluntarily and without prompting discloses salary history information to a prospective employer, nothing in this section shall prohibit that employer from considering or relying on that voluntarily disclosed salary history information in determining the salary for that applicant.(j) Nothing in this section shall prohibit an employer from asking an applicant about the applicants salary expectation for the position being applied for.(k) Consistent with Section 1197.5, nothing in this section shall be construed to allow prior salary to justify any disparity in compensation.(l) All civil penalties collected pursuant to this section shall be deposited into the Labor Enforcement and Compliance Fund for distribution to the Division of Labor Standards Enforcement. Upon appropriation by the Legislature, these funds may be expended by the division to cover reasonable ongoing costs of administering and enforcing this section.(m) For purposes of this section, all of the following shall apply:(1) Pay scale means a good faith estimate of the salary or hourly wage range that the employer reasonably expects to pay for the position.(2) Applicant or applicant for employment means an individual who is seeking employment with the employer and is not currently employed with that employer in any capacity or position.
432.3. (a) An employer shall not rely on the salary history information of an applicant for employment as a factor in determining whether to offer employment to an applicant or what salary to offer an applicant.(b) An employer shall not, orally or in writing, personally or through an agent, seek salary history information, including compensation and benefits, about an applicant for employment.(c) (1) An employer, upon reasonable request, shall provide the pay scale for a position to an applicant applying for employment. The pay scale provided in any job posting shall be no more than 10 percent above or below the mean pay rate within the salary or hourly wage range.(2) An employer, upon request, shall provide an employee the pay scale for the position in which the employee is currently employed.(3) An employer with 15 or more employees shall include the pay scale for a position in any job posting. The pay scale provided in any job posting shall be more than 10 percent above or below the mean pay rate within the salary or hourly wage range.(4) An employer shall maintain records of a job title and wage rate history for each employee for the duration of the employment plus three years after the end of the employment in order for the Labor Commissioner to determine if there is still a pattern of wage discrepancy. These records shall be open to inspection by the Labor Commissioner.(5) An employer with 15 or more employees that engages a third party to announce, post, publish, or otherwise make known a job posting shall provide the pay scale to the third party. The third party shall include the pay scale in the job posting. The pay scale provided in the job posting shall be no more than 10 percent above or below the mean pay rate within the salary or hourly wage range.(d) (1) A person who claims to be aggrieved by a violation of this section may file a written complaint with the Labor Commissioner within one year after the date the person learned of the violation. The complaint shall state the name and address of the employer and shall provide a detailed account of the alleged violation, as may be required by the Labor Commissioner.(2) A person who claims to be aggrieved by a violation of this section may also bring a civil action for injunctive relief and any other relief that the court deems appropriate.(3) The Labor Commissioner shall promptly investigate complaints alleging violation of this section.(4) Upon finding that an employer has violated this section, the Labor Commissioner may order the employer to pay a civil penalty of no less than one hundred dollars ($100) and no more than ten thousand dollars ($10,000) per violation. The Labor Commissioner shall determine the amount of the penalty based on the totality of the circumstances, including, but not limited to, whether the employer has previously violated this section. For a first violation of subdivision (c), no penalty shall be assessed upon demonstration by the employer that all job postings for open positions have been updated to include the pay scale as required by this section.(5) If an employer fails to keep records in violation of this section, there shall be a rebuttable presumption in favor of the employees claim.(e) Section 433 does not apply to this section.(f) This section does not apply to salary history information disclosable to the public pursuant to federal or state law, including the California Public Records Act (Division 10 (commencing with Section 7920.000) of Title 1 of the Government Code) or the federal Freedom of Information Act (Section 552 of Title 5 of the United States Code).(g) This section applies to all employers, including state and local government employers and the Legislature.(h) Nothing in this section shall prohibit an applicant from voluntarily and without prompting disclosing salary history information to a prospective employer.(i) If an applicant voluntarily and without prompting discloses salary history information to a prospective employer, nothing in this section shall prohibit that employer from considering or relying on that voluntarily disclosed salary history information in determining the salary for that applicant.(j) Nothing in this section shall prohibit an employer from asking an applicant about the applicants salary expectation for the position being applied for.(k) Consistent with Section 1197.5, nothing in this section shall be construed to allow prior salary to justify any disparity in compensation.(l) All civil penalties collected pursuant to this section shall be deposited into the Labor Enforcement and Compliance Fund for distribution to the Division of Labor Standards Enforcement. Upon appropriation by the Legislature, these funds may be expended by the division to cover reasonable ongoing costs of administering and enforcing this section.(m) For purposes of this section, all of the following shall apply:(1) Pay scale means a good faith estimate of the salary or hourly wage range that the employer reasonably expects to pay for the position.(2) Applicant or applicant for employment means an individual who is seeking employment with the employer and is not currently employed with that employer in any capacity or position.
432.3. (a) An employer shall not rely on the salary history information of an applicant for employment as a factor in determining whether to offer employment to an applicant or what salary to offer an applicant.(b) An employer shall not, orally or in writing, personally or through an agent, seek salary history information, including compensation and benefits, about an applicant for employment.(c) (1) An employer, upon reasonable request, shall provide the pay scale for a position to an applicant applying for employment. The pay scale provided in any job posting shall be no more than 10 percent above or below the mean pay rate within the salary or hourly wage range.(2) An employer, upon request, shall provide an employee the pay scale for the position in which the employee is currently employed.(3) An employer with 15 or more employees shall include the pay scale for a position in any job posting. The pay scale provided in any job posting shall be more than 10 percent above or below the mean pay rate within the salary or hourly wage range.(4) An employer shall maintain records of a job title and wage rate history for each employee for the duration of the employment plus three years after the end of the employment in order for the Labor Commissioner to determine if there is still a pattern of wage discrepancy. These records shall be open to inspection by the Labor Commissioner.(5) An employer with 15 or more employees that engages a third party to announce, post, publish, or otherwise make known a job posting shall provide the pay scale to the third party. The third party shall include the pay scale in the job posting. The pay scale provided in the job posting shall be no more than 10 percent above or below the mean pay rate within the salary or hourly wage range.(d) (1) A person who claims to be aggrieved by a violation of this section may file a written complaint with the Labor Commissioner within one year after the date the person learned of the violation. The complaint shall state the name and address of the employer and shall provide a detailed account of the alleged violation, as may be required by the Labor Commissioner.(2) A person who claims to be aggrieved by a violation of this section may also bring a civil action for injunctive relief and any other relief that the court deems appropriate.(3) The Labor Commissioner shall promptly investigate complaints alleging violation of this section.(4) Upon finding that an employer has violated this section, the Labor Commissioner may order the employer to pay a civil penalty of no less than one hundred dollars ($100) and no more than ten thousand dollars ($10,000) per violation. The Labor Commissioner shall determine the amount of the penalty based on the totality of the circumstances, including, but not limited to, whether the employer has previously violated this section. For a first violation of subdivision (c), no penalty shall be assessed upon demonstration by the employer that all job postings for open positions have been updated to include the pay scale as required by this section.(5) If an employer fails to keep records in violation of this section, there shall be a rebuttable presumption in favor of the employees claim.(e) Section 433 does not apply to this section.(f) This section does not apply to salary history information disclosable to the public pursuant to federal or state law, including the California Public Records Act (Division 10 (commencing with Section 7920.000) of Title 1 of the Government Code) or the federal Freedom of Information Act (Section 552 of Title 5 of the United States Code).(g) This section applies to all employers, including state and local government employers and the Legislature.(h) Nothing in this section shall prohibit an applicant from voluntarily and without prompting disclosing salary history information to a prospective employer.(i) If an applicant voluntarily and without prompting discloses salary history information to a prospective employer, nothing in this section shall prohibit that employer from considering or relying on that voluntarily disclosed salary history information in determining the salary for that applicant.(j) Nothing in this section shall prohibit an employer from asking an applicant about the applicants salary expectation for the position being applied for.(k) Consistent with Section 1197.5, nothing in this section shall be construed to allow prior salary to justify any disparity in compensation.(l) All civil penalties collected pursuant to this section shall be deposited into the Labor Enforcement and Compliance Fund for distribution to the Division of Labor Standards Enforcement. Upon appropriation by the Legislature, these funds may be expended by the division to cover reasonable ongoing costs of administering and enforcing this section.(m) For purposes of this section, all of the following shall apply:(1) Pay scale means a good faith estimate of the salary or hourly wage range that the employer reasonably expects to pay for the position.(2) Applicant or applicant for employment means an individual who is seeking employment with the employer and is not currently employed with that employer in any capacity or position.
432.3. (a) An employer shall not rely on the salary history information of an applicant for employment as a factor in determining whether to offer employment to an applicant or what salary to offer an applicant.
(b) An employer shall not, orally or in writing, personally or through an agent, seek salary history information, including compensation and benefits, about an applicant for employment.
(c) (1) An employer, upon reasonable request, shall provide the pay scale for a position to an applicant applying for employment. The pay scale provided in any job posting shall be no more than 10 percent above or below the mean pay rate within the salary or hourly wage range.
(2) An employer, upon request, shall provide an employee the pay scale for the position in which the employee is currently employed.
(3) An employer with 15 or more employees shall include the pay scale for a position in any job posting. The pay scale provided in any job posting shall be more than 10 percent above or below the mean pay rate within the salary or hourly wage range.
(4) An employer shall maintain records of a job title and wage rate history for each employee for the duration of the employment plus three years after the end of the employment in order for the Labor Commissioner to determine if there is still a pattern of wage discrepancy. These records shall be open to inspection by the Labor Commissioner.
(5) An employer with 15 or more employees that engages a third party to announce, post, publish, or otherwise make known a job posting shall provide the pay scale to the third party. The third party shall include the pay scale in the job posting. The pay scale provided in the job posting shall be no more than 10 percent above or below the mean pay rate within the salary or hourly wage range.
(d) (1) A person who claims to be aggrieved by a violation of this section may file a written complaint with the Labor Commissioner within one year after the date the person learned of the violation. The complaint shall state the name and address of the employer and shall provide a detailed account of the alleged violation, as may be required by the Labor Commissioner.
(2) A person who claims to be aggrieved by a violation of this section may also bring a civil action for injunctive relief and any other relief that the court deems appropriate.
(3) The Labor Commissioner shall promptly investigate complaints alleging violation of this section.
(4) Upon finding that an employer has violated this section, the Labor Commissioner may order the employer to pay a civil penalty of no less than one hundred dollars ($100) and no more than ten thousand dollars ($10,000) per violation. The Labor Commissioner shall determine the amount of the penalty based on the totality of the circumstances, including, but not limited to, whether the employer has previously violated this section. For a first violation of subdivision (c), no penalty shall be assessed upon demonstration by the employer that all job postings for open positions have been updated to include the pay scale as required by this section.
(5) If an employer fails to keep records in violation of this section, there shall be a rebuttable presumption in favor of the employees claim.
(e) Section 433 does not apply to this section.
(f) This section does not apply to salary history information disclosable to the public pursuant to federal or state law, including the California Public Records Act (Division 10 (commencing with Section 7920.000) of Title 1 of the Government Code) or the federal Freedom of Information Act (Section 552 of Title 5 of the United States Code).
(g) This section applies to all employers, including state and local government employers and the Legislature.
(h) Nothing in this section shall prohibit an applicant from voluntarily and without prompting disclosing salary history information to a prospective employer.
(i) If an applicant voluntarily and without prompting discloses salary history information to a prospective employer, nothing in this section shall prohibit that employer from considering or relying on that voluntarily disclosed salary history information in determining the salary for that applicant.
(j) Nothing in this section shall prohibit an employer from asking an applicant about the applicants salary expectation for the position being applied for.
(k) Consistent with Section 1197.5, nothing in this section shall be construed to allow prior salary to justify any disparity in compensation.
(l) All civil penalties collected pursuant to this section shall be deposited into the Labor Enforcement and Compliance Fund for distribution to the Division of Labor Standards Enforcement. Upon appropriation by the Legislature, these funds may be expended by the division to cover reasonable ongoing costs of administering and enforcing this section.
(m) For purposes of this section, all of the following shall apply:
(1) Pay scale means a good faith estimate of the salary or hourly wage range that the employer reasonably expects to pay for the position.
(2) Applicant or applicant for employment means an individual who is seeking employment with the employer and is not currently employed with that employer in any capacity or position.
SEC. 2. Section 1197.5 of the Labor Code is amended to read:1197.5. (a) An employer shall not pay any of its employees at wage rates less than the rates paid to employees of another sex for substantially similar work, when viewed as a composite of skill, effort, and responsibility, and performed under similar working conditions, except where the employer demonstrates:(1) The wage differential is based upon one or more of the following factors:(A) A seniority system.(B) A merit system.(C) A system that measures earnings by quantity or quality of production.(D) A bona fide factor other than sex, such as education, training, or experience. This factor shall apply only if the employer demonstrates that the factor is not based on or derived from a sex-based differential in compensation, is job related with respect to the position in question, and is consistent with a business necessity. For purposes of this subparagraph, business necessity means an overriding legitimate business purpose such that the factor relied upon effectively fulfills the business purpose it is supposed to serve. This defense shall not apply if the employee demonstrates that an alternative business practice exists that would serve the same business purpose without producing the wage differential.(2) Each factor relied upon is applied reasonably.(3) The one or more factors relied upon account for the entire wage differential.(4) Prior salary shall not justify any disparity in compensation. Nothing in this section shall be interpreted to mean that an employer may not make a compensation decision based on a current employees existing salary, so long as any wage differential resulting from that compensation decision is justified by one or more of the factors in this subdivision.(b) An employer shall not pay any of its employees at wage rates less than the rates paid to employees of another race or ethnicity for substantially similar work, when viewed as a composite of skill, effort, and responsibility, and performed under similar working conditions, except where the employer demonstrates:(1) The wage differential is based upon one or more of the following factors:(A) A seniority system.(B) A merit system.(C) A system that measures earnings by quantity or quality of production.(D) A bona fide factor other than race or ethnicity, such as education, training, or experience. This factor shall apply only if the employer demonstrates that the factor is not based on or derived from a race- or ethnicity-based differential in compensation, is job related with respect to the position in question, and is consistent with a business necessity. For purposes of this subparagraph, business necessity means an overriding legitimate business purpose such that the factor relied upon effectively fulfills the business purpose it is supposed to serve. This defense shall not apply if the employee demonstrates that an alternative business practice exists that would serve the same business purpose without producing the wage differential.(2) Each factor relied upon is applied reasonably.(3) The one or more factors relied upon account for the entire wage differential.(4) Prior salary shall not justify any disparity in compensation. Nothing in this section shall be interpreted to mean that an employer may not make a compensation decision based on a current employees existing salary, so long as any wage differential resulting from that compensation decision is justified by one or more of the factors listed in this subdivision.(c) Any employer who violates subdivision (a) or (b) is liable to the employee affected in the amount of the wages, and interest thereon, of which the employee is deprived by reason of the violation, and an additional equal amount as liquidated damages.(d) The Division of Labor Standards Enforcement shall administer and enforce this section. If the division finds that an employer has violated this section, it may supervise the payment of wages and interest found to be due and unpaid to employees under subdivision (a) or (b). Acceptance of payment in full made by an employer and approved by the division shall constitute a waiver on the part of the employee of the employees cause of action under subdivision (h).(e) Every employer shall maintain records of the wages and wage rates, job classifications, and other terms and conditions of employment of the persons employed by the employer. All of the records shall be kept on file for a period of three years.(f) Any employee may file a complaint with the division that the wages paid are less than the wages to which the employee is entitled under subdivision (a) or (b) or that the employer is in violation of subdivision (k). The complaint shall be investigated as provided in subdivision (b) of Section 98.7. The division shall keep confidential the name of any employee who submits to the division a complaint regarding an alleged violation of subdivision (a), (b), or (k) until the division establishes the validity of the complaint, unless the division must abridge confidentiality to investigate the complaint. The name of the complaining employee shall remain confidential if the complaint is withdrawn before the confidentiality is abridged by the division. The division shall take all proceedings necessary to enforce the payment of any sums found to be due and unpaid to these employees.(g) The department or division may commence and prosecute, unless otherwise requested by the employee or affected group of employees, a civil action on behalf of the employee and on behalf of a similarly affected group of employees to recover unpaid wages and liquidated damages under subdivision (a) or (b), and in addition shall be entitled to recover costs of suit. The consent of any employee to the bringing of any action shall constitute a waiver on the part of the employee of the employees cause of action under subdivision (h) unless the action is dismissed without prejudice by the department or the division, except that the employee may intervene in the suit or may initiate independent action if the suit has not been determined within 180 days from the date of the filing of the complaint.(h) An employee receiving less than the wage to which the employee is entitled under this section may recover in a civil action the balance of the wages, including interest thereon, and an equal amount as liquidated damages, together with the costs of the suit and reasonable attorneys fees, notwithstanding any agreement to work for a lesser wage.(i) (1) A civil action to recover wages under subdivision (a) or (b) may be commenced no later than three years after the cause of action occurs, except that a cause of action arising out of a willful violation may be commenced no later than four years after the cause of action occurs.(2) For purposes of this subdivision, a cause of action occurs when any of the following occur:(A) A discriminatory compensation decision or other practice is adopted.(B) An individual becomes subject to a discriminatory compensation decision or other practice.(C) When an individual is affected by application of a discriminatory compensation decision or other practice, including each time wages, benefits, or other compensation is paid, resulting in whole or in part from the decision or other practice.(3) A series of discriminatory wage payments shall be actionable as a continuing violation if the discriminatory wage payments arise in whole or in part from an ongoing discriminatory compensation decision or practice.(j) If an employee recovers amounts due to the employee under subdivision (c), and also files a complaint or brings an action under subdivision (d) of Section 206 of Title 29 of the United States Code which results in an additional recovery under federal law for the same violation, the employee shall return to the employer the amounts recovered under subdivision (c), or the amounts recovered under federal law, whichever is less.(k) (1) An employer shall not discharge, or in any manner discriminate or retaliate against, any employee by reason of any action taken by the employee to invoke or assist in any manner the enforcement of this section. If an employer engages in any action prohibited by this section within 90 days of the protected activity specified in this section, there shall be a rebuttable presumption in favor of the employees claim. An employer shall not prohibit an employee from disclosing the employees own wages, discussing the wages of others, inquiring about another employees wages, or aiding or encouraging any other employee to exercise their rights under this section. Nothing in this section creates an obligation to disclose wages.(2) Any employee who has been discharged, discriminated or retaliated against, in the terms and conditions of their employment because the employee engaged in any conduct delineated in this section may recover in a civil action reinstatement and reimbursement for lost wages and work benefits caused by the acts of the employer, including interest thereon, as well as appropriate equitable relief.(3) A civil action brought under this subdivision may be commenced no later than one year after the cause of action occurs.(l) As used in this section:(1) Employer includes public and private employers. Section 1199.5 does not apply to a public employer.(2) Sex has the same meaning as defined in Section 12926 of the Government Code.(3) Wages and wage rates include all forms of pay, including, but not limited to, salary, overtime pay, bonuses, stock, stock options, profit sharing and bonus plans, life insurance, vacation and holiday pay, cleaning or gasoline allowances, hotel accommodations, reimbursement for travel expenses, and benefits.
SEC. 2. Section 1197.5 of the Labor Code is amended to read:
### SEC. 2.
1197.5. (a) An employer shall not pay any of its employees at wage rates less than the rates paid to employees of another sex for substantially similar work, when viewed as a composite of skill, effort, and responsibility, and performed under similar working conditions, except where the employer demonstrates:(1) The wage differential is based upon one or more of the following factors:(A) A seniority system.(B) A merit system.(C) A system that measures earnings by quantity or quality of production.(D) A bona fide factor other than sex, such as education, training, or experience. This factor shall apply only if the employer demonstrates that the factor is not based on or derived from a sex-based differential in compensation, is job related with respect to the position in question, and is consistent with a business necessity. For purposes of this subparagraph, business necessity means an overriding legitimate business purpose such that the factor relied upon effectively fulfills the business purpose it is supposed to serve. This defense shall not apply if the employee demonstrates that an alternative business practice exists that would serve the same business purpose without producing the wage differential.(2) Each factor relied upon is applied reasonably.(3) The one or more factors relied upon account for the entire wage differential.(4) Prior salary shall not justify any disparity in compensation. Nothing in this section shall be interpreted to mean that an employer may not make a compensation decision based on a current employees existing salary, so long as any wage differential resulting from that compensation decision is justified by one or more of the factors in this subdivision.(b) An employer shall not pay any of its employees at wage rates less than the rates paid to employees of another race or ethnicity for substantially similar work, when viewed as a composite of skill, effort, and responsibility, and performed under similar working conditions, except where the employer demonstrates:(1) The wage differential is based upon one or more of the following factors:(A) A seniority system.(B) A merit system.(C) A system that measures earnings by quantity or quality of production.(D) A bona fide factor other than race or ethnicity, such as education, training, or experience. This factor shall apply only if the employer demonstrates that the factor is not based on or derived from a race- or ethnicity-based differential in compensation, is job related with respect to the position in question, and is consistent with a business necessity. For purposes of this subparagraph, business necessity means an overriding legitimate business purpose such that the factor relied upon effectively fulfills the business purpose it is supposed to serve. This defense shall not apply if the employee demonstrates that an alternative business practice exists that would serve the same business purpose without producing the wage differential.(2) Each factor relied upon is applied reasonably.(3) The one or more factors relied upon account for the entire wage differential.(4) Prior salary shall not justify any disparity in compensation. Nothing in this section shall be interpreted to mean that an employer may not make a compensation decision based on a current employees existing salary, so long as any wage differential resulting from that compensation decision is justified by one or more of the factors listed in this subdivision.(c) Any employer who violates subdivision (a) or (b) is liable to the employee affected in the amount of the wages, and interest thereon, of which the employee is deprived by reason of the violation, and an additional equal amount as liquidated damages.(d) The Division of Labor Standards Enforcement shall administer and enforce this section. If the division finds that an employer has violated this section, it may supervise the payment of wages and interest found to be due and unpaid to employees under subdivision (a) or (b). Acceptance of payment in full made by an employer and approved by the division shall constitute a waiver on the part of the employee of the employees cause of action under subdivision (h).(e) Every employer shall maintain records of the wages and wage rates, job classifications, and other terms and conditions of employment of the persons employed by the employer. All of the records shall be kept on file for a period of three years.(f) Any employee may file a complaint with the division that the wages paid are less than the wages to which the employee is entitled under subdivision (a) or (b) or that the employer is in violation of subdivision (k). The complaint shall be investigated as provided in subdivision (b) of Section 98.7. The division shall keep confidential the name of any employee who submits to the division a complaint regarding an alleged violation of subdivision (a), (b), or (k) until the division establishes the validity of the complaint, unless the division must abridge confidentiality to investigate the complaint. The name of the complaining employee shall remain confidential if the complaint is withdrawn before the confidentiality is abridged by the division. The division shall take all proceedings necessary to enforce the payment of any sums found to be due and unpaid to these employees.(g) The department or division may commence and prosecute, unless otherwise requested by the employee or affected group of employees, a civil action on behalf of the employee and on behalf of a similarly affected group of employees to recover unpaid wages and liquidated damages under subdivision (a) or (b), and in addition shall be entitled to recover costs of suit. The consent of any employee to the bringing of any action shall constitute a waiver on the part of the employee of the employees cause of action under subdivision (h) unless the action is dismissed without prejudice by the department or the division, except that the employee may intervene in the suit or may initiate independent action if the suit has not been determined within 180 days from the date of the filing of the complaint.(h) An employee receiving less than the wage to which the employee is entitled under this section may recover in a civil action the balance of the wages, including interest thereon, and an equal amount as liquidated damages, together with the costs of the suit and reasonable attorneys fees, notwithstanding any agreement to work for a lesser wage.(i) (1) A civil action to recover wages under subdivision (a) or (b) may be commenced no later than three years after the cause of action occurs, except that a cause of action arising out of a willful violation may be commenced no later than four years after the cause of action occurs.(2) For purposes of this subdivision, a cause of action occurs when any of the following occur:(A) A discriminatory compensation decision or other practice is adopted.(B) An individual becomes subject to a discriminatory compensation decision or other practice.(C) When an individual is affected by application of a discriminatory compensation decision or other practice, including each time wages, benefits, or other compensation is paid, resulting in whole or in part from the decision or other practice.(3) A series of discriminatory wage payments shall be actionable as a continuing violation if the discriminatory wage payments arise in whole or in part from an ongoing discriminatory compensation decision or practice.(j) If an employee recovers amounts due to the employee under subdivision (c), and also files a complaint or brings an action under subdivision (d) of Section 206 of Title 29 of the United States Code which results in an additional recovery under federal law for the same violation, the employee shall return to the employer the amounts recovered under subdivision (c), or the amounts recovered under federal law, whichever is less.(k) (1) An employer shall not discharge, or in any manner discriminate or retaliate against, any employee by reason of any action taken by the employee to invoke or assist in any manner the enforcement of this section. If an employer engages in any action prohibited by this section within 90 days of the protected activity specified in this section, there shall be a rebuttable presumption in favor of the employees claim. An employer shall not prohibit an employee from disclosing the employees own wages, discussing the wages of others, inquiring about another employees wages, or aiding or encouraging any other employee to exercise their rights under this section. Nothing in this section creates an obligation to disclose wages.(2) Any employee who has been discharged, discriminated or retaliated against, in the terms and conditions of their employment because the employee engaged in any conduct delineated in this section may recover in a civil action reinstatement and reimbursement for lost wages and work benefits caused by the acts of the employer, including interest thereon, as well as appropriate equitable relief.(3) A civil action brought under this subdivision may be commenced no later than one year after the cause of action occurs.(l) As used in this section:(1) Employer includes public and private employers. Section 1199.5 does not apply to a public employer.(2) Sex has the same meaning as defined in Section 12926 of the Government Code.(3) Wages and wage rates include all forms of pay, including, but not limited to, salary, overtime pay, bonuses, stock, stock options, profit sharing and bonus plans, life insurance, vacation and holiday pay, cleaning or gasoline allowances, hotel accommodations, reimbursement for travel expenses, and benefits.
1197.5. (a) An employer shall not pay any of its employees at wage rates less than the rates paid to employees of another sex for substantially similar work, when viewed as a composite of skill, effort, and responsibility, and performed under similar working conditions, except where the employer demonstrates:(1) The wage differential is based upon one or more of the following factors:(A) A seniority system.(B) A merit system.(C) A system that measures earnings by quantity or quality of production.(D) A bona fide factor other than sex, such as education, training, or experience. This factor shall apply only if the employer demonstrates that the factor is not based on or derived from a sex-based differential in compensation, is job related with respect to the position in question, and is consistent with a business necessity. For purposes of this subparagraph, business necessity means an overriding legitimate business purpose such that the factor relied upon effectively fulfills the business purpose it is supposed to serve. This defense shall not apply if the employee demonstrates that an alternative business practice exists that would serve the same business purpose without producing the wage differential.(2) Each factor relied upon is applied reasonably.(3) The one or more factors relied upon account for the entire wage differential.(4) Prior salary shall not justify any disparity in compensation. Nothing in this section shall be interpreted to mean that an employer may not make a compensation decision based on a current employees existing salary, so long as any wage differential resulting from that compensation decision is justified by one or more of the factors in this subdivision.(b) An employer shall not pay any of its employees at wage rates less than the rates paid to employees of another race or ethnicity for substantially similar work, when viewed as a composite of skill, effort, and responsibility, and performed under similar working conditions, except where the employer demonstrates:(1) The wage differential is based upon one or more of the following factors:(A) A seniority system.(B) A merit system.(C) A system that measures earnings by quantity or quality of production.(D) A bona fide factor other than race or ethnicity, such as education, training, or experience. This factor shall apply only if the employer demonstrates that the factor is not based on or derived from a race- or ethnicity-based differential in compensation, is job related with respect to the position in question, and is consistent with a business necessity. For purposes of this subparagraph, business necessity means an overriding legitimate business purpose such that the factor relied upon effectively fulfills the business purpose it is supposed to serve. This defense shall not apply if the employee demonstrates that an alternative business practice exists that would serve the same business purpose without producing the wage differential.(2) Each factor relied upon is applied reasonably.(3) The one or more factors relied upon account for the entire wage differential.(4) Prior salary shall not justify any disparity in compensation. Nothing in this section shall be interpreted to mean that an employer may not make a compensation decision based on a current employees existing salary, so long as any wage differential resulting from that compensation decision is justified by one or more of the factors listed in this subdivision.(c) Any employer who violates subdivision (a) or (b) is liable to the employee affected in the amount of the wages, and interest thereon, of which the employee is deprived by reason of the violation, and an additional equal amount as liquidated damages.(d) The Division of Labor Standards Enforcement shall administer and enforce this section. If the division finds that an employer has violated this section, it may supervise the payment of wages and interest found to be due and unpaid to employees under subdivision (a) or (b). Acceptance of payment in full made by an employer and approved by the division shall constitute a waiver on the part of the employee of the employees cause of action under subdivision (h).(e) Every employer shall maintain records of the wages and wage rates, job classifications, and other terms and conditions of employment of the persons employed by the employer. All of the records shall be kept on file for a period of three years.(f) Any employee may file a complaint with the division that the wages paid are less than the wages to which the employee is entitled under subdivision (a) or (b) or that the employer is in violation of subdivision (k). The complaint shall be investigated as provided in subdivision (b) of Section 98.7. The division shall keep confidential the name of any employee who submits to the division a complaint regarding an alleged violation of subdivision (a), (b), or (k) until the division establishes the validity of the complaint, unless the division must abridge confidentiality to investigate the complaint. The name of the complaining employee shall remain confidential if the complaint is withdrawn before the confidentiality is abridged by the division. The division shall take all proceedings necessary to enforce the payment of any sums found to be due and unpaid to these employees.(g) The department or division may commence and prosecute, unless otherwise requested by the employee or affected group of employees, a civil action on behalf of the employee and on behalf of a similarly affected group of employees to recover unpaid wages and liquidated damages under subdivision (a) or (b), and in addition shall be entitled to recover costs of suit. The consent of any employee to the bringing of any action shall constitute a waiver on the part of the employee of the employees cause of action under subdivision (h) unless the action is dismissed without prejudice by the department or the division, except that the employee may intervene in the suit or may initiate independent action if the suit has not been determined within 180 days from the date of the filing of the complaint.(h) An employee receiving less than the wage to which the employee is entitled under this section may recover in a civil action the balance of the wages, including interest thereon, and an equal amount as liquidated damages, together with the costs of the suit and reasonable attorneys fees, notwithstanding any agreement to work for a lesser wage.(i) (1) A civil action to recover wages under subdivision (a) or (b) may be commenced no later than three years after the cause of action occurs, except that a cause of action arising out of a willful violation may be commenced no later than four years after the cause of action occurs.(2) For purposes of this subdivision, a cause of action occurs when any of the following occur:(A) A discriminatory compensation decision or other practice is adopted.(B) An individual becomes subject to a discriminatory compensation decision or other practice.(C) When an individual is affected by application of a discriminatory compensation decision or other practice, including each time wages, benefits, or other compensation is paid, resulting in whole or in part from the decision or other practice.(3) A series of discriminatory wage payments shall be actionable as a continuing violation if the discriminatory wage payments arise in whole or in part from an ongoing discriminatory compensation decision or practice.(j) If an employee recovers amounts due to the employee under subdivision (c), and also files a complaint or brings an action under subdivision (d) of Section 206 of Title 29 of the United States Code which results in an additional recovery under federal law for the same violation, the employee shall return to the employer the amounts recovered under subdivision (c), or the amounts recovered under federal law, whichever is less.(k) (1) An employer shall not discharge, or in any manner discriminate or retaliate against, any employee by reason of any action taken by the employee to invoke or assist in any manner the enforcement of this section. If an employer engages in any action prohibited by this section within 90 days of the protected activity specified in this section, there shall be a rebuttable presumption in favor of the employees claim. An employer shall not prohibit an employee from disclosing the employees own wages, discussing the wages of others, inquiring about another employees wages, or aiding or encouraging any other employee to exercise their rights under this section. Nothing in this section creates an obligation to disclose wages.(2) Any employee who has been discharged, discriminated or retaliated against, in the terms and conditions of their employment because the employee engaged in any conduct delineated in this section may recover in a civil action reinstatement and reimbursement for lost wages and work benefits caused by the acts of the employer, including interest thereon, as well as appropriate equitable relief.(3) A civil action brought under this subdivision may be commenced no later than one year after the cause of action occurs.(l) As used in this section:(1) Employer includes public and private employers. Section 1199.5 does not apply to a public employer.(2) Sex has the same meaning as defined in Section 12926 of the Government Code.(3) Wages and wage rates include all forms of pay, including, but not limited to, salary, overtime pay, bonuses, stock, stock options, profit sharing and bonus plans, life insurance, vacation and holiday pay, cleaning or gasoline allowances, hotel accommodations, reimbursement for travel expenses, and benefits.
1197.5. (a) An employer shall not pay any of its employees at wage rates less than the rates paid to employees of another sex for substantially similar work, when viewed as a composite of skill, effort, and responsibility, and performed under similar working conditions, except where the employer demonstrates:(1) The wage differential is based upon one or more of the following factors:(A) A seniority system.(B) A merit system.(C) A system that measures earnings by quantity or quality of production.(D) A bona fide factor other than sex, such as education, training, or experience. This factor shall apply only if the employer demonstrates that the factor is not based on or derived from a sex-based differential in compensation, is job related with respect to the position in question, and is consistent with a business necessity. For purposes of this subparagraph, business necessity means an overriding legitimate business purpose such that the factor relied upon effectively fulfills the business purpose it is supposed to serve. This defense shall not apply if the employee demonstrates that an alternative business practice exists that would serve the same business purpose without producing the wage differential.(2) Each factor relied upon is applied reasonably.(3) The one or more factors relied upon account for the entire wage differential.(4) Prior salary shall not justify any disparity in compensation. Nothing in this section shall be interpreted to mean that an employer may not make a compensation decision based on a current employees existing salary, so long as any wage differential resulting from that compensation decision is justified by one or more of the factors in this subdivision.(b) An employer shall not pay any of its employees at wage rates less than the rates paid to employees of another race or ethnicity for substantially similar work, when viewed as a composite of skill, effort, and responsibility, and performed under similar working conditions, except where the employer demonstrates:(1) The wage differential is based upon one or more of the following factors:(A) A seniority system.(B) A merit system.(C) A system that measures earnings by quantity or quality of production.(D) A bona fide factor other than race or ethnicity, such as education, training, or experience. This factor shall apply only if the employer demonstrates that the factor is not based on or derived from a race- or ethnicity-based differential in compensation, is job related with respect to the position in question, and is consistent with a business necessity. For purposes of this subparagraph, business necessity means an overriding legitimate business purpose such that the factor relied upon effectively fulfills the business purpose it is supposed to serve. This defense shall not apply if the employee demonstrates that an alternative business practice exists that would serve the same business purpose without producing the wage differential.(2) Each factor relied upon is applied reasonably.(3) The one or more factors relied upon account for the entire wage differential.(4) Prior salary shall not justify any disparity in compensation. Nothing in this section shall be interpreted to mean that an employer may not make a compensation decision based on a current employees existing salary, so long as any wage differential resulting from that compensation decision is justified by one or more of the factors listed in this subdivision.(c) Any employer who violates subdivision (a) or (b) is liable to the employee affected in the amount of the wages, and interest thereon, of which the employee is deprived by reason of the violation, and an additional equal amount as liquidated damages.(d) The Division of Labor Standards Enforcement shall administer and enforce this section. If the division finds that an employer has violated this section, it may supervise the payment of wages and interest found to be due and unpaid to employees under subdivision (a) or (b). Acceptance of payment in full made by an employer and approved by the division shall constitute a waiver on the part of the employee of the employees cause of action under subdivision (h).(e) Every employer shall maintain records of the wages and wage rates, job classifications, and other terms and conditions of employment of the persons employed by the employer. All of the records shall be kept on file for a period of three years.(f) Any employee may file a complaint with the division that the wages paid are less than the wages to which the employee is entitled under subdivision (a) or (b) or that the employer is in violation of subdivision (k). The complaint shall be investigated as provided in subdivision (b) of Section 98.7. The division shall keep confidential the name of any employee who submits to the division a complaint regarding an alleged violation of subdivision (a), (b), or (k) until the division establishes the validity of the complaint, unless the division must abridge confidentiality to investigate the complaint. The name of the complaining employee shall remain confidential if the complaint is withdrawn before the confidentiality is abridged by the division. The division shall take all proceedings necessary to enforce the payment of any sums found to be due and unpaid to these employees.(g) The department or division may commence and prosecute, unless otherwise requested by the employee or affected group of employees, a civil action on behalf of the employee and on behalf of a similarly affected group of employees to recover unpaid wages and liquidated damages under subdivision (a) or (b), and in addition shall be entitled to recover costs of suit. The consent of any employee to the bringing of any action shall constitute a waiver on the part of the employee of the employees cause of action under subdivision (h) unless the action is dismissed without prejudice by the department or the division, except that the employee may intervene in the suit or may initiate independent action if the suit has not been determined within 180 days from the date of the filing of the complaint.(h) An employee receiving less than the wage to which the employee is entitled under this section may recover in a civil action the balance of the wages, including interest thereon, and an equal amount as liquidated damages, together with the costs of the suit and reasonable attorneys fees, notwithstanding any agreement to work for a lesser wage.(i) (1) A civil action to recover wages under subdivision (a) or (b) may be commenced no later than three years after the cause of action occurs, except that a cause of action arising out of a willful violation may be commenced no later than four years after the cause of action occurs.(2) For purposes of this subdivision, a cause of action occurs when any of the following occur:(A) A discriminatory compensation decision or other practice is adopted.(B) An individual becomes subject to a discriminatory compensation decision or other practice.(C) When an individual is affected by application of a discriminatory compensation decision or other practice, including each time wages, benefits, or other compensation is paid, resulting in whole or in part from the decision or other practice.(3) A series of discriminatory wage payments shall be actionable as a continuing violation if the discriminatory wage payments arise in whole or in part from an ongoing discriminatory compensation decision or practice.(j) If an employee recovers amounts due to the employee under subdivision (c), and also files a complaint or brings an action under subdivision (d) of Section 206 of Title 29 of the United States Code which results in an additional recovery under federal law for the same violation, the employee shall return to the employer the amounts recovered under subdivision (c), or the amounts recovered under federal law, whichever is less.(k) (1) An employer shall not discharge, or in any manner discriminate or retaliate against, any employee by reason of any action taken by the employee to invoke or assist in any manner the enforcement of this section. If an employer engages in any action prohibited by this section within 90 days of the protected activity specified in this section, there shall be a rebuttable presumption in favor of the employees claim. An employer shall not prohibit an employee from disclosing the employees own wages, discussing the wages of others, inquiring about another employees wages, or aiding or encouraging any other employee to exercise their rights under this section. Nothing in this section creates an obligation to disclose wages.(2) Any employee who has been discharged, discriminated or retaliated against, in the terms and conditions of their employment because the employee engaged in any conduct delineated in this section may recover in a civil action reinstatement and reimbursement for lost wages and work benefits caused by the acts of the employer, including interest thereon, as well as appropriate equitable relief.(3) A civil action brought under this subdivision may be commenced no later than one year after the cause of action occurs.(l) As used in this section:(1) Employer includes public and private employers. Section 1199.5 does not apply to a public employer.(2) Sex has the same meaning as defined in Section 12926 of the Government Code.(3) Wages and wage rates include all forms of pay, including, but not limited to, salary, overtime pay, bonuses, stock, stock options, profit sharing and bonus plans, life insurance, vacation and holiday pay, cleaning or gasoline allowances, hotel accommodations, reimbursement for travel expenses, and benefits.
1197.5. (a) An employer shall not pay any of its employees at wage rates less than the rates paid to employees of another sex for substantially similar work, when viewed as a composite of skill, effort, and responsibility, and performed under similar working conditions, except where the employer demonstrates:
(1) The wage differential is based upon one or more of the following factors:
(A) A seniority system.
(B) A merit system.
(C) A system that measures earnings by quantity or quality of production.
(D) A bona fide factor other than sex, such as education, training, or experience. This factor shall apply only if the employer demonstrates that the factor is not based on or derived from a sex-based differential in compensation, is job related with respect to the position in question, and is consistent with a business necessity. For purposes of this subparagraph, business necessity means an overriding legitimate business purpose such that the factor relied upon effectively fulfills the business purpose it is supposed to serve. This defense shall not apply if the employee demonstrates that an alternative business practice exists that would serve the same business purpose without producing the wage differential.
(2) Each factor relied upon is applied reasonably.
(3) The one or more factors relied upon account for the entire wage differential.
(4) Prior salary shall not justify any disparity in compensation. Nothing in this section shall be interpreted to mean that an employer may not make a compensation decision based on a current employees existing salary, so long as any wage differential resulting from that compensation decision is justified by one or more of the factors in this subdivision.
(b) An employer shall not pay any of its employees at wage rates less than the rates paid to employees of another race or ethnicity for substantially similar work, when viewed as a composite of skill, effort, and responsibility, and performed under similar working conditions, except where the employer demonstrates:
(1) The wage differential is based upon one or more of the following factors:
(A) A seniority system.
(B) A merit system.
(C) A system that measures earnings by quantity or quality of production.
(D) A bona fide factor other than race or ethnicity, such as education, training, or experience. This factor shall apply only if the employer demonstrates that the factor is not based on or derived from a race- or ethnicity-based differential in compensation, is job related with respect to the position in question, and is consistent with a business necessity. For purposes of this subparagraph, business necessity means an overriding legitimate business purpose such that the factor relied upon effectively fulfills the business purpose it is supposed to serve. This defense shall not apply if the employee demonstrates that an alternative business practice exists that would serve the same business purpose without producing the wage differential.
(2) Each factor relied upon is applied reasonably.
(3) The one or more factors relied upon account for the entire wage differential.
(4) Prior salary shall not justify any disparity in compensation. Nothing in this section shall be interpreted to mean that an employer may not make a compensation decision based on a current employees existing salary, so long as any wage differential resulting from that compensation decision is justified by one or more of the factors listed in this subdivision.
(c) Any employer who violates subdivision (a) or (b) is liable to the employee affected in the amount of the wages, and interest thereon, of which the employee is deprived by reason of the violation, and an additional equal amount as liquidated damages.
(d) The Division of Labor Standards Enforcement shall administer and enforce this section. If the division finds that an employer has violated this section, it may supervise the payment of wages and interest found to be due and unpaid to employees under subdivision (a) or (b). Acceptance of payment in full made by an employer and approved by the division shall constitute a waiver on the part of the employee of the employees cause of action under subdivision (h).
(e) Every employer shall maintain records of the wages and wage rates, job classifications, and other terms and conditions of employment of the persons employed by the employer. All of the records shall be kept on file for a period of three years.
(f) Any employee may file a complaint with the division that the wages paid are less than the wages to which the employee is entitled under subdivision (a) or (b) or that the employer is in violation of subdivision (k). The complaint shall be investigated as provided in subdivision (b) of Section 98.7. The division shall keep confidential the name of any employee who submits to the division a complaint regarding an alleged violation of subdivision (a), (b), or (k) until the division establishes the validity of the complaint, unless the division must abridge confidentiality to investigate the complaint. The name of the complaining employee shall remain confidential if the complaint is withdrawn before the confidentiality is abridged by the division. The division shall take all proceedings necessary to enforce the payment of any sums found to be due and unpaid to these employees.
(g) The department or division may commence and prosecute, unless otherwise requested by the employee or affected group of employees, a civil action on behalf of the employee and on behalf of a similarly affected group of employees to recover unpaid wages and liquidated damages under subdivision (a) or (b), and in addition shall be entitled to recover costs of suit. The consent of any employee to the bringing of any action shall constitute a waiver on the part of the employee of the employees cause of action under subdivision (h) unless the action is dismissed without prejudice by the department or the division, except that the employee may intervene in the suit or may initiate independent action if the suit has not been determined within 180 days from the date of the filing of the complaint.
(h) An employee receiving less than the wage to which the employee is entitled under this section may recover in a civil action the balance of the wages, including interest thereon, and an equal amount as liquidated damages, together with the costs of the suit and reasonable attorneys fees, notwithstanding any agreement to work for a lesser wage.
(i) (1) A civil action to recover wages under subdivision (a) or (b) may be commenced no later than three years after the cause of action occurs, except that a cause of action arising out of a willful violation may be commenced no later than four years after the cause of action occurs.
(2) For purposes of this subdivision, a cause of action occurs when any of the following occur:
(A) A discriminatory compensation decision or other practice is adopted.
(B) An individual becomes subject to a discriminatory compensation decision or other practice.
(C) When an individual is affected by application of a discriminatory compensation decision or other practice, including each time wages, benefits, or other compensation is paid, resulting in whole or in part from the decision or other practice.
(3) A series of discriminatory wage payments shall be actionable as a continuing violation if the discriminatory wage payments arise in whole or in part from an ongoing discriminatory compensation decision or practice.
(j) If an employee recovers amounts due to the employee under subdivision (c), and also files a complaint or brings an action under subdivision (d) of Section 206 of Title 29 of the United States Code which results in an additional recovery under federal law for the same violation, the employee shall return to the employer the amounts recovered under subdivision (c), or the amounts recovered under federal law, whichever is less.
(k) (1) An employer shall not discharge, or in any manner discriminate or retaliate against, any employee by reason of any action taken by the employee to invoke or assist in any manner the enforcement of this section. If an employer engages in any action prohibited by this section within 90 days of the protected activity specified in this section, there shall be a rebuttable presumption in favor of the employees claim. An employer shall not prohibit an employee from disclosing the employees own wages, discussing the wages of others, inquiring about another employees wages, or aiding or encouraging any other employee to exercise their rights under this section. Nothing in this section creates an obligation to disclose wages.
(2) Any employee who has been discharged, discriminated or retaliated against, in the terms and conditions of their employment because the employee engaged in any conduct delineated in this section may recover in a civil action reinstatement and reimbursement for lost wages and work benefits caused by the acts of the employer, including interest thereon, as well as appropriate equitable relief.
(3) A civil action brought under this subdivision may be commenced no later than one year after the cause of action occurs.
(l) As used in this section:
(1) Employer includes public and private employers. Section 1199.5 does not apply to a public employer.
(2) Sex has the same meaning as defined in Section 12926 of the Government Code.
(3) Wages and wage rates include all forms of pay, including, but not limited to, salary, overtime pay, bonuses, stock, stock options, profit sharing and bonus plans, life insurance, vacation and holiday pay, cleaning or gasoline allowances, hotel accommodations, reimbursement for travel expenses, and benefits.
No reimbursement is required by this act pursuant to Section 6 of Article XIII B of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIII B of the California Constitution.