BILL ANALYSIS
AB 2317
Page 1
ASSEMBLY THIRD READING
AB 2317 (Oropeza)
As Introduced February 19, 2004
Majority vote
LABOR AND EMPLOYMENT 6-2 APPROPRIATIONS 16-4
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|Ayes:|Koretz, Mullin, Chan, |Ayes:|Chu, Berg, Calderon, |
| |Chu, Laird, Leno | |Corbett, Correa, |
| | | |Firebaugh, Goldberg, |
| | | |Leno, Nation, Negrete |
| | | |McLeod, Oropeza, Pavley, |
| | | |Ridley-Thomas, Wesson, |
| | | |Wiggins, Yee |
| | | | |
|-----+--------------------------+-----+--------------------------|
|Nays:|Shirley Horton, Houston |Nays:|Runner, Bates, Daucher, |
| | | |Keene |
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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; and,
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 FEDERAL LAW prohibits sex-based wage discrimination
between men and women in the same establishment who are
performing under similar working conditions.
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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.
FISCAL EFFECT : According to the Assembly Appropriations
Committee, no direct state fiscal impact.
COMMENTS :
1)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.
2)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.
3)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 EEOC through a complaint process similar to state
law. Civil actions are also allowed after administrative
avenues are exhausted. Penalties allowed under federal law
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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.
4)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.
5)Recent information pay inequities: Recent statistics
demonstrate that despite these protections, pay inequities
still exist in our state and national economies. These
statistics include the following:
a) According to the United States Census Bureau, in 2002,
American women working full-time year-round earned on
average $0.76.6 for every dollar earned by full-time
working American men;
b) A General Accounting Office report on women's earnings
shows that there exists an inexplicable wage gap of
approximately 20%, even after taking into account work
experience, education, occupation, industry of current
employment, and other demographic and job characteristics;
and,
c) 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.
Analysis Prepared by : Nick Louizos / L. & E. / (916) 319-2091
FN: 0004957