Effective January 1, 2016, California Employers of all sizes are required to comply with the Fair Pay Act, which requires that employers provide equal pay to male and female employees who perform “substantially similar” work.

The Act amends California Labor Code Section 1197.5 (known as the California Equal Pay Act) which generally prohibits employers from paying lower wages to employees of one gender as compared to employees of the opposite gender when those employees (a) work at the same establishment, and (b) perform “equal work” on jobs requiring “equal” skill, effort and responsibility and which are performed under similar working conditions in the same establishment.