California Fair Pay Act – Labor Code 1197.5

Prohibits employers from paying anyone less for “substantially similar” work based on a person’s race, ethnicity or gender.

Disparity in pay cannot be based solely on prior pay

There are a few ways to justify wage differentials: seniority, merit*, production, bona fide factor*

Labor Code §432.3 & AB 2282

• Employers may not seek salary history on a candidate – either orally or in writing
• Salary history may not be considered in deciding to extend an offer, or not.
• Salary history may not be considered to justify pay differential
• Employer is required to provide a salary range to an applicant, upon request, once they have completed an initial interview with the employer. This is considered a “reasonable request”.
• Employers can ask an applicant about their salary expectations for the position, not their salary history. Use caution when inquiring about salary expectations.

*JOB DESCRIPTIONS AND PERFORMANCE EVALUATIONS

1. What tool can employers use to ensure that employees know what is expected of them?

2. What tool can employers use to document employee’s skills and growth in their position?

3. What tool can employers use to different level of job expertise?

The answer to #1 is a Job Description

The answer to #2 is a Job Description based Performance Evaluation

The answer to #3 is a Job Description based Performance Evaluation

If you do not do performance evaluations or if you use the same evaluation for everyone or any performance evaluation that is not specific to the employee’s job, are you really evaluating the employee’s skills, abilities and performance?

Does your performance evaluation show you and the employee:

1. Areas that the employee excels in?
2. Areas that they need more training in?
3. How the employee’s skills compares to others in the same position?
4. How the employee views their performance compared to how the supervisor views their performance?
5. Is it dynamic – changes as the job changes?
6. Can it be used as a “bona fide factor” in justifying wage differential with others in substantially similar positions?
7. Can it be used as a justification for wage differential based on merit?
8. Does it include goals that ensures that the employee has clearly defined priorities for growth for the next year?

I have developed a model for a job description based performance evaluation.  Each evaluation is based on the individual’s job description and is a tool to assist managers:

1. In determining where more training is needed
2. In determining where the employee excels
3. In determining how the employee views their performance
4. In ensuring that the job description based evaluation changes from year to year as the organization changes
5. In ensuring they have a tool that can be used as a ‘bona fide factor’ in justifying wage differentials
6. In justifying merit for a wage increase and/or differential
7. In tracking and developing new individualized and job based goals annually

Contact me for more details – betty@bbaker.biz