In 2015, Governor Jerry Brown signed into law the California Fair Pay Act (CFPA or Act) to close the historic wage gap between women and men by: 1) requiring the use of bona fide factors to set wages; 2) expanding wage comparisons beyond local worksites; and 3) protecting employees’ right to inquire about and discuss their wages. Since its enactment, several amendments have broadened and clarified the Act. In addition to gender, now the CFPA also bars wage gaps based on race and ethnicity for performance of substantially similar work. Another amendment to the Act clarifies that prior salary cannot, by itself, justify any disparity in compensation under the bona fide factor exception. Further, an employer is required, upon reasonable request, to provide the pay scale for a position to an applicant for employment. As amended, the Act also defines “employer” to mean both public and private employers, except public employers would not be subject to the misdemeanor provision for reducing the wages of any employee to comply with the CFPA’s prohibition. This article examines the gender-based wage gap, development of fair pay law, requirements under the California Fair Pay Act, new requirements for pay data reporting, and best practices for compliance.
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