Disparities Persist in California Pay Rates 

A troubling March 15, 2022 report shows California’s largest employers have yet to ensure adequate equal employment opportunities in their hiring and pay practices.

Responsible for enforcing this state’s equal pay laws, the Department of Fair Employment & Housing (DFEH), on survey of businesses together employing some 6.3 million workers, has found:

• Women are overrepresented among low-wage workers and administrative support, sales and service workers;
• Hispanics and Blacks are also overrepresented among low-wage workers; while
• Men are overrepresented high-wage workers and executives, managers and craft workers.

DFEH Director Kevin Kish stated, “Today’s report reinforces the need for employers to review their compensation and other employment practices to correct pay disparities and ensure equal opportunity in their workplaces. DFEH will continue to vigorously enforce California’s equal pay and antidiscrimination laws.”

As a reminder, covered employers (100+ on payroll) must submit 2021 pay data reports by April 1, 2022.

Take-Aways:

All California employers should consider conducting internal wage and hour audits of their job advertising, interviewing, pay scales and other hiring and retention practices with the assistance of an experienced employment law attorney.

For further information, please contact Tim Bowles, Cindy Bamforth or Helena Kobrin.

See also:

• Management’s Best Foot Forward – Workplace Policy Handbook & Forms for 2022(February 18, 2022)
• Understanding California’s Equal Pay Act – Labor Commissioner Issues Frequently – Asked Questions on Workplace Gender Parity (April 22, 2016)
• California Labor Laws 2016: Fair Pay Act Aims To Level The Playing Field – Law Mandates Equal Pay Between Genders for Equal or Substantially Similar Work(November 18, 2015)

Cindy Bamforth
March 25, 2022