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ARTICLE · 17 OCTOBER 2016

California Expands Pay Equity, Limits Pay Stub Requirements

Thompson Coburn LLP
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Employers with employees or facilities in California should take note of several recent employment laws signed by California Governor Jerry Brown in recent months.

United StatesEmployment and HR
John Viola
John Viola
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Employers with employees or facilities in California should take note of several recent employment laws signed by California Governor Jerry Brown in recent months.

Pay equity

On September 30, 2016, Governor Brown expanded California's pay equity rules by signing AB-1676. AB-1676 prohibits the use of prior salary, by itself, to set employees' pay and is intended to close the wage gap between employees of different genders and races. On the same day, Governor Brown also signed SB-1063, which prohibits employers from paying an employee less than co-employees based on race or ethnicity for substantially similar work. Employers should consider reviewing their pay structures to ensure they comply with the new laws.

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