SAN FRANCISCO — The state’s new Fair Pay Act, signed into law Tuesday, could be a litigation game-changer for companies that do business in California. The law, which attorneys say is the strictest in the country targeting gender-based wage disparities, makes it harder for employers to prove they aren’t discriminating.
It shifts the burden from aggrieved employees to the employer, by requiring the employer to prove the wage discrepancy is based on a legitimate factor such as seniority or a merit system. And it broadens the reach of potential claims. Women now will be able to sue if they are paid less than male counterparts who perform “substantially similar work,” instead of strictly equal work.
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