BILL ANALYSIS
AB 2317
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CONCURRENCE IN SENATE AMENDMENTS
AB 2317 (Oropeza)
As Amended June 29, 2004
Majority vote
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|ASSEMBLY: |42-27|(April 29, |SENATE: |21-13|(August 10, |
| | |2004) | | |2004) |
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Original Committee Reference: L. & E.
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.
The Senate amendments revise the damages due to employees paid
unfairly based on gender to the following:
1)An amount equal to the balance of wages as liquidated damages,
and an amount equal to double the balance of the wages as a
civil penalty.
2)The balance of wages, including interest, an equal amount as
liquidated damages, and an amount equal to four times the
balance of wages as a civil penalty, if it is determined that
an employer willfully violated the law.
EXISTING FEDERAL LAW prohibits sex-based wage discrimination
between men and women in the same establishment who are
performing under similar working conditions.
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
AB 2317
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violation of existing law relating to gender based payment
discrimination.
AS PASSED BY THE ASSEMBLY this bill:
1)Mandated 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)Increased 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.
FISCAL EFFECT : According to the Assembly Appropriations
Committee, no direct state fiscal impact.
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.
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
Equal Employment Opportunity Commission (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
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to exceed $1,000 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: 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
$0.76.6 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%, even after taking into account work experience,
education, occupation, industry of current employment, and
other demographic and job characteristics; and,
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.
Analysis Prepared by : Nick Louizos / L. & E. / (916) 319-2091
FN: 0006938