Fair Pay Act
Oftentimes, there can be a gap in pay between individuals who perform similar job duties. Sometimes, the only difference between the employees is their gender. In an attempt to close the pay gap between women and men, the California State Senate recently passed a piece of legislation aimed at closing this gap in pay.
Legislation
The bill, if signed by Governor Jerry Brown, would allow workers who perform similar jobs to receive equal or similar pay, regardless of their job titles. For example, a male employee who works for a hotel as a janitor may potentially earn more money than a female worker who is a room housekeeper. If the legislation is enacted, then both individuals would be considered to have the same job title and thus be eligible to earn the same amount of money. At the same time, workers would have the ability and right to inquire about and discuss wages earned by fellow employees without retaliation from their place of employment.
Application to Businesses
The proposed legislation applies to both public and private companies. In addition, the bill would apply to employees who work for the same company but at different locations from one another. At the same time, the legislation would require businesses to show that any pay discrepancy is based on merit, seniority or another non-gender based factor that would be considered a legitimate necessity. A “legitimate anecessity” could possibly be paying an individual a higher salary based on specific expertise in a certain area, such as computer networking, that nobody else in the company possesses.
How the Act Affects Businesses
If signed into law by Governor Brown, the Fair Pay Act could potentially result in higher wages being paid to all employees. At the same time, it could also mean that companies would have to charge their customers higher prices to compensate for the increase in wages. Furthermore, businesses may have to deal with workers that could be unhappy with their wages.
However, the Fair Pay Act can help shield employees from retaliation when inquiring about wages and salaries. The workers can also make sure that they are earning an equal amount to their peers, regardless of their gender.
Conclusion
It can be useful for a business owner or company to speak with a business attorney if they are unsure about the how the Fair Pay Act works. Doing so will allow the employer to ensure that they are paying their workers correctly. In addition, the lawyer can explain how to properly classify employees and job descriptions so that there would not be any pay differentials. Furthermore, an attorney can explain how to put processes in place that would both make salary information readily available to all workers and describe the process to obtain this information.