How California's Equal Pay Law Affects All Employers

Jim McDonald was quoted in ERE Media on November 27, 2015. The article “How California’s Equal Pay Law Affects All Employers” discussed how the impact of California's equal pay law, set to go into effect in a month, is already being felt, and not just in the Golden State.

In an interview with Fortune, Jim said, “Efforts to get something like this through Congress have so far gotten nowhere, so more states are likely to consider adopting laws similar to California’s.”

To prepare for the law’s implementation, and the potential for employee claims, Jim recommended that HR departments require more thorough documentation by hiring managers when they offer candidates above scale salaries.

And particularly for companies with California employees, HR should begin collecting detailed information on the specific job activity of every worker — not just the job description — and what everyone is paid. Differences in pay for similar work has to be explained in terms of the “business necessity,” which the California law defines as “an overriding legitimate business purpose such that the factor relied upon effectively fulfills the business purpose it is supposed to serve.”

To read the full article, please visit ERE Media.