Los Angeles Equal Pay Act Attorneys

Los Angeles Equal Pay Act Attorneys

Representing Your Right to Fair Pay

Despite advances in civil rights laws and an increasingly diverse workforce, many workers continue to earn less than white men in comparable roles. According to U.S. Census Bureau data from 2020, women earn approximately 82 cents for every dollar earned by men. Disparities also exist between different racial and ethnic groups, with members of more than one disadvantaged class (for instance, women of color) earning significantly less than their white counterparts. These gaps are more dramatic in certain fields, including finance, healthcare, and manufacturing. 

California has some of the nation’s strongest laws to combat these disparities. When an employee learns they are paid less than their peers for comparable work, they should contact a Los Angeles Equal Pay Act attorney to chart a path towards justice under state and federal laws. The U.S. Equal Pay Act and California Fair Pay Act aim to ensure that employees are paid equally for substantially similar work, regardless of their gender. Our skilled California Equal Pay Act attorneys can help you enforce your rights under these laws.

• Background on Race and Gender-Based Pay Gaps
• Federal Equal Pay Laws
• The California Equal Pay Act
• Employer Justifications for Pay Differences
• Differences Between State and Federal Equal Pay Laws
• Equal Pay Act Violations vs. Discrimination Claims
• Additional Pay Protections for California Employees
• How Los Angeles Equal Pay Act Attorneys Can Help
• How to Fix Pay Gaps

Contact us now at (213) 465-4802 so you can rely on our zealous Los Angeles Equal Pay Act lawyers at King & Siegel LLP for detailed answers to your questions.

Background on Race and Gender-Based Pay Gaps

Gender- and race-based pay gaps are common and affect workers across industries. Studies show that, in 2020, Black workers earned around 76 cents for every dollar earned by white workers, while Hispanic workers earned around 73 cents for every dollar earned by white workers.

Gender and race-based pay gaps are common and affect workers across industries. Studies show that, in 2020, Black workers earned around 76 cents for every dollar earned by white workers, while Hispanic workers earned around 73 cents for every dollar earned by white workers.

As noted above, US Census data shows that women as a class earn approximately 82 cents for each dollar earned by white men; some studies show an even greater gap. These gaps are wider in certain fields, especially fields where men are historically dominant and masculine traits are particularly prized. In 2020, the National Women’s Law Center reported that women working as financial managers earned 65.3 cents for every dollar earned by men in the same roles.

The pay gap is compounded when examining both gender and race. Hispanic or Latina women earned around 57 cents, Black women earned around 63 cents, Asian American women earned around 85 cents, and Native women earned about 57 cents for each dollar earned by white, non-Hispanic men. These gaps translate into an annual median wage loss of $22,692 for Black women, $29,724 for Latinas, and $28,797 for Native women.

Mothers of all races pay a steep price for having children. Many younger, childless women enter the workforce at or near pay parity with male peers. Studies consistently show that women are penalized for having children, while men are rewarded for it. Supervisors assume that mothers are flakey, uncommitted, and unreliable, while they assume that fathers are stable, reliable providers. The American Sociological Review reported in 2018 that women’s earnings decreased by around 4% per child. Men’s wages increase as they have children.

Members of the LGBTQ+ community illustrate the many fascinating and intersectional dynamics that underpin the gender-based pay gap. Economists have conducted studies comparing the earnings of lesbian women and gay men to those of straight women and men. The findings mostly indicate that lesbian women tend to earn more than straight women, while gay men tend to earn less than straight men. In another study conducted with a sample of workers in the Netherlands, researchers found that transgender women experienced a reduction in wages following their transition. These researchers found that there is a “transition penalty” for all trans workers, which offsets the earnings gain of female-to-male workers but “amplifies the earnings loss of [male-to-female] workers.”  

Persistent disparities in pay based on gender and race continue to affect employment and income across different demographics, as demonstrated by these statistics. It is crucial to make efforts to rectify these gaps and strive towards equitable compensation in the workforce.

The Federal Equal Pay Act

In 1963, Congress passed the Equal Pay Act (EPA). The federal EPA prohibits wage discrimination based on sex. It does not address pay gaps based on race or ethnicity. Virtually all public- and private-sector employers are subject to the Equal Pay Act. The federal EPA prohibits paying employees of the “opposite sex” a lower rate for “equal work” on jobs that require “equal skill, effort, and responsibility, which are performed under similar working conditions.”

The EPA applies to all forms of pay, including:

• Wages,
• Salaries,
• Overtime,
• Bonuses,
• Benefits,
• Vacation and holiday pay,
• Gasoline allowances, and
• Travel expense reimbursement.

The federal EPA specifies that certain justificactions for unequal pay are allowed under the law. A pay difference may be lawful if it’s based on:

• Employee seniority,
• Merit,
• A system that measures earnings by quality or quality of production, or
• A factor other than sex.

However, without documented proof that one of these exceptions applies, an employer can face penalties for failing to correct gendered or race-based pay gaps. 

Under the EPA, differences in pay between workers of different races or genders are illegal even if they are unintentional or based on past pay discrepancies. This is important because past pay discrepancies have long been used to justify ongoing pay gaps.

Case law makes clear that the federal EPA does not require “proof of intentional discrimination.” Ledbetter v. Goodyear Tire & Rubber Co., 550 U.S. 618, 640 (2007). The employer is presumptively liable once the plaintiff makes an initial showing of unequal pay. Corning Glass Works v. Brennan, 417 U.S. 188, 195 (1974). Then, the employer bears the burden of proving that one of the four exceptions applies.

The California Equal Pay Act

California’s equal pay law predates the federal version. The Equal Pay Act of California was adopted in 1949 to promote pay parity between genders. In 2015, Governor Jerry Brown significantly strengthened its protections by adding the Fair Pay Act and expanding equal pay rights to members of different races or ethnicities. Since then, California pay equity legislation has expanded to offer even further protections than federal law. 

Today, the California Equal Pay Act bans pay inequality based on sex, race, and ethnicity for all public- and private-sector employers. Under the act, employers must ensure employees of different sexes, races, and ethnicities receive the same wage rate for performing “substantially similar work.” 

“Substantially similar work” refers to jobs that require almost identical levels of skill, effort, and responsibility, conducted in comparable working circumstances. Two jobs don’t have to be exactly identical in terms of specifics to be “substantially similar.” 

Let’s illustrate this by considering the jobs of two chefs. Chef A operates in an upscale restaurant, whereas Chef B runs a more modest-sized food cart. Despite these differing setups, the skill (culinary expertise), effort (physical and mental exertion in food preparation), and responsibility (overseeing food safety and delivering consistent quality) required by both chefs are markedly similar. The specifications of their duties may differ, but an examination of the tasks from a broader perspective reveals that the work they do is “substantially similar”.

California’s Equal Pay Act even requires employers to provide equal pay for substantially similar work for employees who don’t work in the same location or have the same job title.

However, like the federal EPA, California’s law allows employers to justify pay differences in certain situations. These justifications are discussed in greater depth below.

Employer Justifications for Pay Differences

The federal and California Equal Pay Acts recognize situations when pay differences between employees of different genders, races, or ethnicities are legal, even if the employees perform substantially similar work. 

The following are the four legitimate reasons a California employer can use to justify pay differences under the EPA: 

• Compensation is based on a seniority system. Pay differentials can be justified under a seniority system where the length of service in a company may determine the employee’s pay. For instance, an employee with 10 years of experience may earn higher pay than a new hire in the same position. This type of compensation system is common in many industries, including those with union protections and in strict “lock-step” hierarchies, such as associates in law firms. 
• Compensation is based on employee merit. In a merit system, payroll is linked to the employee’s performance or ability. Employers may justify higher wages for employees who perform better than their coworkers in measurable ways, e.g., receiving exceptional performance reviews. (Notably, if these reviews are manipulated in a discriminatory way, employees may still have equal pay claims as well as discrimination claims.)
• Compensation is linked to the quantity or quality of production. Under this system, earnings are measured by the amount or caliber of production output. For example, in a sales role, a person who sells more units of a given product (i.e., quantity) may earn more income through commission.
• Compensation is linked to a bona fide factor other than sex, race, or ethnicity. California law also allows pay differentials based on any legitimate factor unrelated to sex, race, or ethnicity. These could include factors such as education, training, or experience, as long as they are deemed business-related and necessary for the role.

If a California employer doesn’t have documented proof that one of these reasons is behind a sex-, race-, or ethnicity-based pay difference, the employees affected likely have viable claims.

Differences Between State and Federal Equal Pay Laws 

Both the California and federal Equal Pay Acts prohibit wage discrimination, but the California statute is broader in scope. The California statute prohibits wage discrimination based on race, ethnicity, and sex, while the federal statute only addresses sex-based wage discrimination. This distinction is noted in the analysis of California’s new pay equity data reports, which states that the California Fair Pay Act “protects employees from pay discrimination based on their race or color and their ethnicity in addition to their sex.”

Another key difference between the two statutes is the standard for comparing the plaintiff’s job to the comparator’s. The federal Equal Pay Act requires “equal work on jobs the performance of which requires equal skill, effort, and responsibility, and which are performed under similar working conditions.” However, the California statute requires only that the comparator’s job be “substantially similar” to the plaintiff’s when “viewed as a composite of skill, effort, and responsibility.” This distinction is noted in several cases.

Despite these differences, the two statutes are often subject to the same analysis. For example, in Davis v. Inmar, Inc., the court notes that the California Equal Pay Act is “nearly identical to the federal statute and subject to the same analysis.” Similarly, in Green v. Par Pools, Inc., the court notes that the California statute is “nearly identical to the federal Equal Pay Act” and that it is “appropriate to rely on federal authorities construing the federal statute.”

Equal Pay Act Violations vs. Discrimination Claims

Some, but not all, claims under the Equal Pay Act may also be brought as discrimination claims under the federal Title VII or the California Fair Employment and Housing Act. 

The Equal Pay Act and Title VII both prohibit sex-based wage discrimination, but they differ in terms of the burdens of proof and defenses available to employers. Under the Equal Pay Act, the plaintiff must establish a prima facie case of wage discrimination by demonstrating that the employer pays different wages to employees of the opposite sex for equal work. This requires showing that the jobs in question require equal skill, effort, and responsibility, and are performed under similar working conditions. Once the plaintiff makes out a prima facie case, the burden shifts to the employer to justify the wage differential by proving that the disparity results from a seniority system, a merit system, a system measuring earnings by quantity or quality of production, or a differential based on any other factor other than sex.

Under Title VII, the plaintiff must show that the employer discriminated against her with respect to compensation because of her sex. This is a broader prohibition than the Equal Pay Act, which only prohibits wage disparities for equal work. However, Title VII incorporates the Equal Pay Act’s defenses by reference, meaning that differentiations permitted by the Equal Pay Act are also approved in Title VII cases.

Remedies under both laws may include back pay, injunctive relief, and attorney’s fees. Under the Equal Pay Act, the court must assess whether the defendant’s conduct was “willful” in order to determine the appropriate remedy.

Plaintiffs with discrimination claims under California’s Fair Employment and Housing Act may also seek punitive damages.

Additional Pay Protections for California Employees

California law grants employees additional rights when it comes to pay equity. Here are some important protections Los Angeles employees should know about.

Pay Transparency

California’s Labor Code § 432.3 sets out specific requirements for employers regarding the disclosure of pay scale information in job postings. The statute prohibits employers from relying on an applicant’s salary history when making hiring decisions and requires employers with 15 or more employees to include a pay scale in job postings. Additionally, the statute requires employers to provide the pay scale to an applicant or employee upon request. The statute also outlines the consequences for violating these requirements, including civil penalties.

Similar laws have been enacted in New York City, Colorado, and Washington. These laws generally require employers to disclose salary ranges in job postings, and some also require employers to provide wage statement information to employees.

Retaliation Is Illegal

State and federal law prohibits retaliation based on an employee’s exercise of rights under state or federal Equal Pay Acts. This means that it’s illegal for an employer to punish you for engaging in actions protected under the Equal Pay Act. These protected actions include:

• Discussing wages with coworkers,
• Asking colleagues about their compensation, and
• Filing a complaint under the Equal Pay Act.

Employers can retaliate against employees in many different ways. Firing is one of the most common forms of retaliation, but illegal employer backlash can also include demotion, poor performance reviews, harassment, and other adverse employment actions.

To establish a retaliation claim under the California Equal Pay Act, an employee must generally show that they engaged in a protected activity, that the employer subjected them to an adverse employment action, and that there is a causal link between the protected activity and the employer’s action. However, under SB 497, a rebuttable presumption of retaliation arises if the employer takes adverse action against the employee within 90 days of the employee invoking or assisting in the enforcement of the Equal Pay Act.

How Los Angeles Equal Pay Act Attorneys Can Help

Los Angeles employees may find it intimidating to speak out about pay discrimination. That’s why seeking support from a qualified Equal Pay Act attorney is critical.

A lawyer experienced with California and federal pay equity laws can help:

• Investigate pay disparity. An attorney can examine your job duties, qualifications, and performance in relation to your higher-paid coworkers of a different race, sex, or ethnicity. A legal professional can also analyze your employer’s records and pay policies to uncover patterns of potential discrimination.
• Collect evidence of discrimination. A lawyer’s evidence-gathering skills are essential for building a strong case for pay disparity. Your attorney has the time and resources to collect the documentation needed to prove compensation discrimination, such as payroll records, job descriptions, past performance evaluations, and internal handbooks.
• Challenge employer justifications. An experienced EPA attorney understands the common excuses employers give to hide illegal pay disparities. Your advocate can help overcome these excuses with arguments and evidence that show their inconsistencies.
• File legal claims. An attorney can help you navigate the legal process of filing an unequal wage claim before the deadlines set down by federal or California law. 
• Secure compensation. With the help of an experienced advocate, employees can recover financial relief, such as back pay for lost wages and the cost of legal fees. 

Ultimately, the knowledge and support of an experienced pay discrimination attorney are vital to protecting your rights and ensuring you recover the compensation you’re owed.

How to Fix the Gender and Race-Based Pay Gap

In order to achieve equal pay, we must first acknowledge that there is an issue. Pay transparency laws are a significant step in the right direction, and more jurisdictions should enact them. Similarly, setting wages based on salary history should be prohibited nationwide.

Employees should also be encouraged to freely discuss their wages. Pay gaps thrive in secret; publicly available salary scales make it more likely that those who are disadvantaged will be able to bargain in their own self-interest. If bargaining fails, they will have the information needed to determine whether they have legal claims.

Contact Us Today for a Free Case Review

If you believe you’ve experienced unequal pay due to your gender, race, or ethnicity, our team of Equal Pay Act and Fair Pay Act attorneys is here to help. We offer a free consultation to discuss your case.

Our experienced legal team also handles other types of employment law cases, including cases relating to:

• Discrimination,
• Sexual Harassment,
• Medical & Disability Leave,
• Stock Disputes,
• Wrongful Termination,
• Whistleblowers,
• Wage & Hour Violations, and
• Workplace Retaliation.

If you have been wronged in the workplace, call King & Siegel, LLP now for a free consultation! We offer a free case evaluation and work on a contingency basis, which means you don’t pay us unless you win.