Statistical Implications Of The California Fair Pay Act

Law360, New York (October 22, 2015, 11:10 AM EDT) -- The California Fair Pay Act amends Section 1197.5 of the California Labor Code by requiring employers in California to "not pay any of its employees at wage rates less than the rates paid to employees of the opposite sex for substantially similar work, when viewed as a composite of skill, effort, and responsibility, and performed under similar working conditions ..." However, a wage gap may be allowed if the employer is able to demonstrate that the differential is based upon one or more of the following factors: seniority system, merit system, quantity and quality of production, or a bona fide factor...

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