California Equal Pay & Pay Scale Disclosure

Direct answer: California’s Equal Pay Act (Labor Code section 1197.5) bars paying you less than coworkers of another sex, race, or ethnicity for substantially similar work, unless the employer proves an allowed justification for the entire gap. Labor Code section 432.3 separately limits salary-history use and requires pay-scale disclosures—including posted ranges for many employers with 15 or more employees. MAGISA LAW represents employees.

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Labor Code section 1197.5 — equal pay

Section 1197.5 prohibits an employer from paying employees of one sex less than employees of another sex, and employees of one race or ethnicity less than employees of another race or ethnicity, for substantially similar work when viewed as a composite of skill, effort, and responsibility, performed under similar working conditions—unless the employer demonstrates that the entire wage differential is based on a seniority system, a merit system, a system measuring earnings by quantity or quality of production, or a bona fide factor other than sex, race, or ethnicity that meets the statute’s job-related and business-necessity tests, applied reasonably. Prior salary shall not justify any disparity in compensation.

DIR’s Equal Pay Act FAQ states the Act applies to public and private employers regardless of size (with the outside-salesperson exclusion in Labor Code section 1171), that discriminatory intent is not required, and that “wages” include many forms of pay beyond base salary. “Sex” for Equal Pay Act purposes tracks FEHA’s definition, including gender identity and expression and pregnancy-related conditions.

What remedies section 1197.5 may provide

An employer who violates subdivision (a) or (b) is liable for the wages of which the employee was deprived, interest, and an additional equal amount as liquidated damages. In a civil action, costs and reasonable attorney’s fees may also be available. Timing rules in subdivision (i) generally require commencing a wage-recovery action no later than three years after the last date the cause of action occurs, with relief available for the entire violation period not to exceed six years, subject to the statute’s definitions of when a cause of action occurs. Whether any remedy fits your facts is for consultation—not a webpage promise.

Labor Code section 432.3 — salary history and pay scales

Section 432.3 provides that an employer shall not rely on an applicant’s salary history to decide whether to hire or what to offer, and shall not seek salary history information (subject to limited public-records exceptions). Upon reasonable request, an employer shall provide the pay scale for a position to an applicant; upon request, to a current employee for the employee’s position. An employer with 15 or more employees shall include the pay scale in any job posting and shall provide the pay scale to third parties who post the job. Employers must maintain job-title and wage-rate history records for the duration of employment plus three years.

A “pay scale” means a good-faith estimate of the salary or hourly wage range the employer reasonably expects to pay upon hire. SB 1162 expanded these transparency rules; DIR’s Equal Pay Act FAQ interprets posting to cover positions that may be filled in California, including remotely.

A person aggrieved by a section 432.3 violation may file a written complaint with the Labor Commissioner within one year after learning of the violation, and may also bring a civil action for injunctive and other appropriate relief. The Labor Commissioner may assess civil penalties for violations; this page does not list changing penalty figures—ask in consultation or read the current statute.

Retaliation for talking about pay

Section 1197.5(k) protects employees who invoke or assist enforcement of the Equal Pay Act and forbids employers from prohibiting wage discussions described above. Adverse action within 90 days of protected activity creates a rebuttable presumption favoring the employee’s retaliation claim under that subdivision. Related: workplace retaliation, gender discrimination, racial discrimination, unpaid wages.

What to gather

1. Paystubs, offer letters, and bonus or equity documents
2. Job descriptions for your role and comparator roles if you have them
3. Job postings that omitted a pay scale (screenshots with dates)
4. Any salary-history questions you were asked
5. Notes on who performs substantially similar work

Free consultation with MAGISA LAW

MAGISA LAW invites employees to contact the firm for a free consultation to talk through your situation with an attorney. Call 888-818-1099, email hello@magisalaw.com, or use the contact page.

Consultations are available in English, Spanish, Armenian, and Russian with an attorney.

Fee and cost terms are discussed during the free consultation.

Office: 2550 Honolulu Ave, Suite 105, Glendale, CA 91020.

Frequently asked questions

What does California’s Equal Pay Act prohibit?

Labor Code section 1197.5 prohibits paying employees of one sex, race, or ethnicity less than employees of another for substantially similar work (skill, effort, responsibility, similar working conditions), unless the employer proves an allowed factor that accounts for the entire differential. Prior salary cannot justify a disparity.

What is “substantially similar work”?

DIR’s Equal Pay Act FAQ explains it as work that is mostly similar in skill, effort, and responsibility, performed under similar working conditions. Job titles alone do not control—job content matters.

What pay-scale rules apply under Labor Code section 432.3?

Employers may not seek or rely on an applicant’s salary history (with limited public-record exceptions). Upon reasonable request, employers must provide the pay scale to applicants; upon request, to current employees for their position. Employers with 15 or more employees must include the pay scale in job postings (and provide it to third-party posters).

How long do I have to act on an Equal Pay Act wage claim?

Section 1197.5 generally allows a civil action to recover wages no later than three years after the last date the cause of action occurs, and an employee may obtain relief for the entire period a violation existed, not to exceed six years, subject to the statute’s timing rules. Retaliation claims under subdivision (k) have a shorter one-year civil-action window. Call promptly for a fact-specific timeline.

Can my employer punish me for talking about wages?

Section 1197.5(k) states an employer shall not prohibit an employee from disclosing the employee’s own wages, discussing the wages of others, inquiring about another employee’s wages, or aiding or encouraging other employees to exercise Equal Pay Act rights, and shall not retaliate for invoking the statute.