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In an effort to continue working toward closing the gender wage gap, more states are enacting laws that prevent an employer from asking a candidate or applicant for compensation history.
For over fifty years there have been laws in place requiring equal pay for men and women doing the same job. Even so, discrepancies in pay still persist. In California, where the new equal pay law, the Fair Pay Act, went into effect the first of the year, data introduced into legislation shows women being paid 84 cents for every dollar made by their male counterparts.
The Fair Pay Act, voted in with virtually no opposition, aims to make it harder for employers to require employees to do the same work, but pay some workers less because of job titles. Now, companies will be required to really take a look at each position, and the work required, and assess pay based upon the work actually being done. Rather than justifying pay with job titles, employers will need to thoroughly assess job responsibilities and requirements.
This new law may be most beneficial to those in positions typically classified as laborers such as housekeepers. In this example, a housekeeper commonly does the same work as a custodian, but because of their job title, is paid a lower rate.
Pay inequality may exist due in large part to the fact that people don’t know they’re being under paid. Within most companies, the culture is such that discussing pay is strictly prohibited. The Fair Pay Act prevents employers from terminating or punishing workers who discuss their pay with coworkers.