New Law Extends the Pay Equity Enforcement Act

Pay equity refers to the idea that people doing essentially the same work should be paid the same, regardless of their sex, race, or ethnicity.

Governor Newsom has signed SB 642, the “Pay Equity Enforcement Act,” expanding California’s Equal Pay Act and related disclosure rules. Labor Code § 1197.5 already bars pay differences based on sex, race, or ethnicity for substantially similar work unless justified by seniority, merit, productivity, or another bona fide factor.

California continues tightening its focus on transparency and pay equity. This new law strengthens enforcement and ties those duties to California’s pay-scale disclosure law (Labor Code § 432.3), requiring employers with 15 or more employees to list pay ranges in all job postings and provide pay information on request.