Just less than a year ago, California adopted the Fair Pay Act (“FPA”), which took effect on January 1, 2016 and created some of the strongest equal pay protections in the nation. On September 30, 2016, Governor Jerry Brown signed two bills that expand the law even further.
What many were hoping would bring clarity to California’s Fair Pay Act, further left employers in the dark on how to interpret the Act.
On April 29, 2015, Plaintiff Lynne Coates filed a class action lawsuit against Farmers alleging gender discrimination claims under Title VII and California’s Fair Employment and Housing Act, as well as violations of the federal and California equal pay acts and California’s Private Attorneys General Act. Coates claimed that Farmers systematically discriminated against female attorney employees and that its “common compensation and promotion policies and practices resulted in lower pay and unequal promotions for female attorneys.”
Three months after the California Fair Pay Act took effect on January 1, 2016, the California Division of Labor Standards Enforcement (“DLSE”) has issued answers to FAQs about the new law, which by all counts is the most employee-friendly equal pay law in the nation. But for California employers who anxiously have been awaiting official guidance on the Act’s many new terms and standards, the FAQs provide little satisfaction. Rather, they focus more on informing employees on how to bring a claim. Nor has the DLSE otherwise spoken publicly about how it plans to enforce the new law; instead, the agency appears to be taking its time and exercising caution as it potentially sets the stage for the rest of the nation.