BILL ANALYSIS
AB 2317
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Date of Hearing: March 31, 2004
ASSEMBLY COMMITTEE ON LABOR AND EMPLOYMENT
Paul Koretz, Chair
AB 2317 (Oropeza) - As Introduced: February 19, 2004
SUBJECT : Gender pay equity.
SUMMARY : Increases the amount of liquidated damages due to
employees who are paid unfairly in violation of existing law
relating to gender based payment discrimination. Specifically,
this bill :
1)Mandates the types of damages those employees should recover
if successful in bringing a civil action against their
employer for violating existing law relating to gender based
payment discrimination.
2)Increases the amount of liquidated damages due to employees
who are paid unfairly in violation of existing law relating to
gender based payment discrimination to the following:
(a) An amount equal to treble the balance of wages
due.
(b) An amount equal to five times the balance of wages
due, if it is determined that the employer willfully
violated the section of law prohibiting gender based
payment discrimination.
EXISTING LAW
1)Prohibits employers from paying an employee a wage less than
that paid to employees of the opposite sex in the same
establishment for equal work on jobs requiring equal skill,
effort, and responsibility, and performed under similar
working conditions.
2)Allows payment differentials made pursuant to a bona fide
factor other than sex.
3)Subjects employers to civil action and specified liquidated
damages that may be paid to employees who are paid unfairly in
violation of existing law relating to gender based payment
discrimination.
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EXISTING FEDERAL LAW : Prohibits sex-based wage discrimination
between men and women in the same establishment who are
performing under similar working conditions.
FISCAL EFFECT : Unknown
COMMENTS
The prohibition of gender based payment discrimination has been
a feature of California law since 1949. Enforcement is
primarily the responsibility of the Division of Labor Standards
Enforcement (DLSE), through a complaint procedure. An aggrieved
employee may, however, initiate an independent civil action
under specified circumstances. Currently, damages for
violations include not only the recovery of any lost wages with
interest, but also liquidated damages in a like amount.
It should be noted that many employees will instead file a
complaint with the Department of Fair Employment and Housing,
under the Fair Employment and Housing Act, or the federal Equal
Employment Opportunity Commission (EEOC), under Title VII of the
Civil Rights Act of 1964, since recovery of compensatory damages
are allowed in those forums.
The federal Equal Pay Act of 1963 (29 USC 206) also prohibits
sex-based wage differentials between men and women employed in
the same establishment who perform jobs requiring equal effort,
skill, and responsibility. Those provisions are enforced by the
EEOC through a complaint process similar to state law. Civil
actions are also allowed after administrative avenues are
exhausted. Penalties allowed under federal law include the
amount of unpaid wages and an additional equal amount as
liquidated damages, which is similar to state. Any person who
repeatedly or willfully violates federal law, however, is
subject to a civil penalty not to exceed $1000 for each
violation.
Pay differentials under both state and federal law are permitted
when they are based on seniority, merit, quantity or quality of
production, or a factor other than sex. In the event that an
aggrieved employee files complaints under both state and federal
law the employee is required to return to the employer the
amounts recovered under state or federal law, whichever is less.
Recent Information Pay Inequities
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Recent statistics demonstrate that despite these protections,
pay inequities still exist in our state and national economies.
These statistics include the following:
1)According to the United States Census Bureau, in 2002,
American women working full-time year-round earned on average
76.6 cents for every dollar earned by full-time working
American men.
2)A General Accounting Office report on women's earnings shows
that there exists an inexplicable wage gap of approximately 20
percent, even after taking into account work experience,
education, occupation, industry of current employment, and
other demographic and job characteristics.
3)The Institute for Women's Policy Research finds that recent
narrowing of the wage gap between men and women is due in
large part to men's real wages falling, not women's wages
rising.
Author Statement
"Women should be protected from this wage discrimination
occurring in our state. No employer should pay any individual
employee less than the rates paid to employees of the opposite
sex in the same institution for equal work. Too often equal
work, which requires job performance of equal skill, effort, and
responsibility, is not compensated with equal pay. Existing law
prohibits employers from engaging in this unfair practice. In
order for California to continue its status as one of the
nation's most highly skilled workforces, it must be vigilant in
the protection of its workers."
Arguments in Support
Supporters of this bill argue that wage inequities still exist
between men and women. They believe that this bill will help
eliminate wage inequality and base any differentials on
legitimate factors as outlined in current law.
Arguments in Opposition
The California Employment Law Council (CELC) believes that this
bill is excessive. According to CELC, the change from "may" to
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" shall" eliminates discretion in assessing damages and make
them automatic.
Other Legislation
AJR 66 (Lieber) of this session proclaims April 20, 2004, as
Equal Pay Day, and would urge the Congress of the United States
to protect the fundamental right of all American women to
receive equal pay for equal work and to continue to provide more
effective remedies to victims of discrimination in the payment
of wages on the basis of sex. This resolution has been referred
to the Assembly Committee on Labor and Employment.
REGISTERED SUPPORT / OPPOSITION :
Support
American Federation of State, County, and Municipal Employees
American Federation of Television and Radio Artists
Bill Lockyer, Attorney General, State of California
California Commission of the Status of Women
California Conference Board of the Amalgamated Transit Union
California Conference of Machinists
California Labor Federation, AFL-CIO
California National Organization for Women
California State Employees Association
California State Employees Association
California Teamster Public Affairs Council
Engineers and Scientists of California, Local 20
Hotel Employees & Restaurant Employees International Union
Professional and Technical Engineers, Local 21
Region 8 States Council of the United Food & Commercial Workers
Opposition
California Employment Law Council
Analysis Prepared by : Nick Louizos / L. & E. / (916) 319-2091