BILL ANALYSIS
AB 2317
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Date of Hearing: April 21, 2004
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Judy Chu, Chair
AB 2317 (Oropeza) - As Introduced: February 19, 2004
Policy Committee: Labor and
Employment Vote: 6-2
Urgency: No State Mandated Local Program:
No Reimbursable:
SUMMARY
This bill increases the amount of liquidated damages paid for
violations of state law prohibiting gender-based pay
discrimination. Specifically, this bill entitles an employee to
recover in a civil action brought for gender-based wage
discrimination liquidated damages equal to treble the balance of
underpaid wages, including interest. In addition, this bill
establishes a separate entitlement for willful violations equal
to five times the balance of underpaid wages, including
interest.
Current law limits the amount of liquidated damages that may be
recovered in a civil action to an amount equal to the balance of
underpaid wages, including interest.
FISCAL EFFECT
No direct state fiscal impact.
COMMENTS
1)Background . The California equal pay law (Labor Code Section
1197.5), first enacted in 1949, 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. Payment
differentials pursuant to a bona fide factor other than sex
are permissible. An employee may file a complaint with the
Division of Labor Standards Enforcement (DLSE) within the
Department of Industrial Relations (DIR) alleging that wages
AB 2317
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paid are less that the amount the employee is entitled to
under Section 1197.5.
Alternatively, an employee may initiate a civil action to
recover wages, including interest thereon, that the employee
is deprived of by reason of the violation. Whether a case is
resolved administratively or through private right of action,
an employer found to be in violation of Section 1197.5 is
liable for the amount of unpaid wages, plus interest, and
liquidated damages equal to this amount (as well as court
costs and attorney's fees).
The California equal pay law is nearly identical to the
federal Equal Pay Act, which is enforced by the federal Equal
Employment Opportunity Commission (EEOC) through a complaint
process similar to state law. Penalties include the amount of
unpaid wages and an additional equal amount as liquidated
damages, which is similar to state law. Any person who
repeatedly or willfully violates federal law, however, is
subject to a civil penalty not to exceed $1000 for each
violation.
An employee alleging gender based pay discrimination may 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 the laws
allow for the recovery of compensatory damages.
2)Purpose . The author points to recent government statistics
that indicate gender-based pay discrimination in California
and the nation. For example, the United States Census Bureau
reported in 2002 that American women working full-time
year-round earned on average 76.6 cents for every dollar
earned by full-time working American men. Additionally, the
U.S. General Accounting Office recently found that there is a
gender based 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.
The substantial increase in liquidated damages for gender
based wage violations included in this bill are intended to
penalize employers engaging in these practices and serve as an
incentive to employees pursue legal remedies.
AB 2317
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Analysis Prepared by : Stephen Shea / APPR. / (916) 319-2081