- Written by Anthony Oceguera
The Saqui Law Group previously discussed significant changes to the California Fair Pay Act (i.e., Labor Code section 1197.5) made by Senate Bill 358, which was passed into law last year. That E-Blast can be found here. As a refresher, Senate Bill 358 put the burden on the employer who is sued to show that any pay difference between men and women performing substantially similar work was based on: 1) A seniority system; 2) A merit system; 3) A system measuring earnings by quantity or quality of production; or 4) By some other factor that is not based on sex but is related to the position in question and is a business necessity.
Emboldened by its success, the California legislature passed two additional bills this year – Assembly Bill 1676 and Senate Bill 1063 – that further expand the reach and impact of the California Fair Pay Act.
Assembly Bill 1676 expressly prohibits employers from considering prior salary as the sole justification for any disparity in compensation. Before it was amended, this bill also would have prohibited employers from seeking an applicant’s salary history. However, California will not go as far as some states, such as Massachusetts, which recently prohibited employers from requesting compensation history prior to making an offer and will, instead, allow employers to continue to request prior salary information.
UPDATE: Too Fast, Too Soon? House of Reps. Take First Step to Delay DOL’s Quest To Raise The Overtime Salary Threshold
- Written by Gregory Blueford
As an update to our June 14, 2016 eblast, the U.S. House of Representatives recently passed a bill to delay the Department of Labor’s (“DOL”) rule which is currently set to raise the threshold for exemption to overtime pay, effective December 1, 2016.
As a refresher, the new DOL rule will nearly double the minimum salary threshold to qualify for the federal overtime exemption for “white collar” employees from $23,660 to $47,476 per year. If enacted into law, the bill would delay the implementation of the rule until June 2017 so that employers have additional time to prepare for the sharp increase in the exemption threshold. Employers argue that the new rule would force them to lay off many employees in the face of increased payroll costs. Opponents to the bill have said that the current $23,600 threshold is outdated and no longer does its job of separating the low wage workers who deserve overtime from workers who make enough money and should be exempt. Opponents also believe that this delay is the first step in an attempt to have the rule repealed altogether.