1. Labor Commissioner's Office

California Equal Pay Act and Pay Transparency Law (Labor Code sections 432.3 and 1197.5)
Frequently Asked Questions

1. What is the California Equal Pay Act?

The California Equal Pay Act prohibits an employer from paying any of its employees at wage rates less than the rates paid to employees of another sex, race, or ethnicity for substantially similar work, when viewed as a composite of skill, effort, and responsibility, and performed under similar working conditions. (Lab. Code § 1197.5, subds. (a) [sex], (b) [race, ethnicity].)

There are a few exceptions to the equal pay requirement. These are for pay disparities based on a seniority system, a merit system, a system that measures earnings by quantity or quality of production, or a "bona fide factor" other than sex, race, or ethnicity, such as education, training, or experience. (Lab. Code § 1197.5, subds. (a)(1) [sex], (b)(1) [race, ethnicity].)

The Equal Pay Act applies to all public and private employers regardless of size and applies across entire businesses and enterprises and is not restricted by "establishment" or distinct physical place of business. (Lab. Code § 1197.5, subds. (a), (b), (l)(1).) The Equal Pay Act applies to all employees except outside salespersons. (Id., at § 1171.)

2. What does "sex" mean?

"Sex" means the same thing for the Equal Pay Act as for the California Fair Employment and Housing Act. (Lab. Code § 1197.5, subd. (l)(2).) "Sex" thus includes, without limitation:

• Sex (the biological differences between men and women)
• Gender, including, without limitation:
• Gender identity (one’s internal understanding of their gender, which may include male, female, a combination of male and female, neither male nor female, a gender different from the person’s sex assigned at birth, or transgender)
• Gender expression (one’s gender-related appearance and behavior, whether or not stereotypically associated with the person’s assigned sex at birth)
• Pregnancy or medical conditions related to pregnancy
• Childbirth or medical conditions related to childbirth
• Breastfeeding or medical conditions related to breastfeeding

(Gov. Code § 12926, subd. (r); Cal. Code Regs., tit. 2, § 11030, subds. (a), (b).)

3. What do "wages" and "wage rates" mean?

"Wages" and "wage rates" include all forms of pay, including, but not limited to, salary, overtime pay, bonuses, stock, stock options, profit sharing and bonus plans, life insurance, vacation and holiday pay, cleaning or gasoline allowances, hotel accommodations, reimbursement for travel expenses, and benefits. (Lab. Code § 1197.5, subd. (l)(3).)

4. What does "substantially similar work" mean?

"Substantially similar work" refers to work that is mostly similar in skill, effort, and responsibility, and performed under similar working conditions. (Lab. Code § 1197.5, subds. (a), (b).) Skill refers to the experience, training, education, and ability required to perform the job. (See 29 C.F.R. § 1620.15(a).) Effort refers to the amount of physical or mental exertion needed to perform the job. (See id., at § 1620.16(a).) Responsibility refers to the degree of accountability required in performing the job, with emphasis on the importance of the job. (See id., at § 1620.17(a).) Working conditions refers to surroundings and hazards. (See id., at § 1620.18(a).)

5. What must an employee prove to establish an Equal Pay Act claim?

To establish an Equal Pay Act claim, an employee must prove they were paid less than an employee or employees of another sex, race, or ethnicity for substantially similar work, when viewed as a composite of skill, effort, and responsibility, and performed under similar working conditions. (Lab. Code § 1197.5, subds. (a) [sex], (b) [race, ethnicity].) There is no requirement to show discriminatory intent. (See ibid.)

6. How can an employer defend against an Equal Pay Act claim?

Once an employee establishes an Equal Pay Act claim, the employer must prove that one or more legitimate factors justified the pay disparity: a seniority system, a merit system, a system that measures earnings by quantity or quality of production, or a "bona fide factor" other than sex, race, or ethnicity, such as education, training, or experience. (Lab. Code § 1197.5, subds. (a)(1) [sex], (b)(1) [race, ethnicity].)

For each proffered "bona fide factor," the employer must prove it is not based on or derived from sex, race, or ethnicity, is job-related, and is consistent with a business necessity, meaning an overriding legitimate business purpose such that the factor relied on effectively fulfills the business purpose it is supposed to serve. (Lab. Code § 1197.5, subds. (a)(1)(D) [sex], (b)(1)(D) [race, ethnicity].)

For each proffered factor, whether a seniority system, merit system, system that measures earnings by quantity or quality of production, or a "bona fide factor" other than sex, race, or ethnicity, the employer must prove it is applied reasonably and (either alone or together with other factors) accounts for the entire pay disparity. (Lab. Code § 1197.5, subds. (a)(2)-(3) [sex], (b)(2)-(3) [race, ethnicity].)

7. Could an employee have an Equal Pay Act claim even if someone earning more than them has a different job title?

Yes. Because the Equal Pay Act prohibits sex, race, or ethnicity-based pay disparities for substantially similar work, what matters is overall job content.

8. What is the time limit for filing an Equal Pay Act claim?

An Equal Pay Act claim to recover wages generally must be filed no later than 3 years after the last date a cause of action occurs (Lab. Code § 1197.5 , subd. (i)(1); Gov. Code § 12960 , subd. (e)(4)), which the statute clarifies occurs when:

• An alleged unlawful compensation decision or other practice is adopted
• An individual becomes subject to an alleged unlawful compensation decision or other practice, or
• An individual is affected by application of an alleged unlawful compensation decision or other practice, including each time wages, benefits, or other compensation is paid, resulting in whole or in part from the decision or other practice.

(Lab. Code § 1197.5 , subd. (i)(3).)

Nothing in the Equal Pay Act shall prohibit the application of the "discovery rule" and "continuing violation" doctrine to an appropriate claim, however. (Id., at subd. (i)(4).)

9. Where can an Equal Pay Act claim be filed?

An Equal Pay Act claim can be filed with the Labor Commissioner’s Office, the California Civil Rights Department , or in court. (Lab. Code § 1197.5 , subds. (f), (h); Gov. Code § 12930 , subd. (f)(5).) An employee need not file a claim with the Labor Commissioner’s Office before filing an action in court.

An Equal Pay Act claim can be filed with the Labor Commissioner’s Office online or by submitting an Equal Pay Act Complaint form (EPA 1) .

An online complaint is filed with the Labor Commissioner’s Office when it has been submitted and confirmed by the user as part of the online process.

A scanned image of a completed paper EPA 1 form (signed and dated) or a completed PDF EPA 1 form (signed and dated) can be emailed to the Labor Commissioner’s Office at retaliation@dir.ca.gov .

To file an Equal Pacy Act claim with the Labor Commissioner’s Office by mail, a completed paper EPA 1 form (signed and dated) for work performed in Monterey, Fresno, Kings, Tulare, and Inyo Counties and further north must be mailed to:

Labor Commissioner’s Office
Retaliation Complaint Investigation Unit
2031 Howe Avenue, Suite 100
Sacramento, CA 95825

Meanwhile, for work performed in Kern, San Luis Obispo, Santa Barbara, Ventura, and San Bernardino Counties and further south, a completed paper EPA 1 form (signed and dated) must be mailed to:

Labor Commissioner’s Office
Retaliation Complaint Investigation Unit
320 W. Fourth Street, Room 450
Los Angeles, CA 90013

Besides the Equal Pay Act, the Civil Rights Department enforces the Fair Employment and Housing Act, which prohibits discrimination based on sex, race, national origin, ancestry, and other categories. Employees with both Equal Pay Act and Fair Employment and Housing Act claims may wish to file with the Civil Rights Department. For filing information, visit the Civil Rights Department online or call 800-884-1684.

10. What happens to an Equal Pay Act claim filed with the Labor Commissioner’s Office?

The Labor Commissioner’s Office investigates an Equal Pay Act claim under Labor Code section 98.7 . If the Labor Commissioner’s Office determines there is no violation, it will dismiss the claim. If the Labor Commissioner’s Office determines there is a violation, it may issue a determination under section 98.7 or a citation under section 98.74 to remedy the violation. If an employer fails to comply with a determination, the Labor Commissioner’s Office must file an action in court to compel compliance. If an employer fails to obtain review of a citation, the citation becomes final, and judgment is entered.

11. Can an Equal Pay Act claim be filed with the Labor Commissioner’s Office confidentially or in a group with others?

The Labor Commissioner’s Office must keep confidential the name of any employee who files an Equal Pay Act claim until the Labor Commissioner’s Office establishes the validity of the claim. (Lab. Code § 1197.5 , subd. (f).) However, the Labor Commissioner’s Office may reveal the name of a claimant if needed to investigate a claim. (Ibid.) Employees who are similarly affected may all file claims against the same employer. These claims may be assigned to the same investigator.

12. What are the remedies for an Equal Pay Act violation?

An employer who violates the Equal Pay Act is liable to the affected employee in the amount of the wages of which the employee is deprived by reason of the violation, plus interest, and an additional equal amount as liquidated damages. (Lab. Code § 1197.5 , subds. (c), (h).) An employee may obtain relief for the entire time in which the violation existed, not to exceed 6 years (id., at subd. (i)(2)), although nothing in the Equal Pay Act shall prohibit the application of the "continuing violation" doctrine to an appropriate claim. (Id., at subd. (i)(4).) If an employee files an action in court, they may also recover costs and reasonable attorney’s fees. (Id., at subd. (h).)

13. What can an employer do to be proactive about their Equal Pay Act compliance?

An employer wanting to be proactive about their Equal Pay Act compliance should evaluate their jobs that are substantially similar and assess whether there are any sex, race, or ethnicity-based pay disparities. The employer should then evaluate whether identified pay disparities are legally justifiable. (See FAQ No. 6 above.) These must be reasons that actually explain pay disparities, not mere reasons that could explain pay disparities. If any pay disparities are legally unjustifiable, the employer should remedy the violations.

An employer must be deliberate about pay decisions. If employees must be paid differently for substantially similar work, the employer must ensure it is legally justifiable. Whether the legal justification is a seniority, merit, or incentive system, other bona fide factor, or some combination, it should be based on pre-determined criteria, ideally capable of objective measurement, that are used consistently and at regular intervals. The employer should also make or at least monitor pay decisions in a centralized way and document things.

The California Commission on the Status of Women and Girls convened a Pay Equity Task Force to develop resources to help ensure compliance with the Equal Pay Act. Visit the Commission online for resources tailored to employers.

14. How long must an employer keep Equal Pay Act-related records?

The California Labor Code, including the Equal Pay Act, requires an employer to maintain certain records for varying number of years:

• Itemized wage statements (Lab. Code § 226, subd. (a) [3 years])
• Records "of a job title and wage rate history for each employee" (Id., at § 432.3, subd. (c)(4) [duration of employment plus 3 years])
• Records "showing the names and addresses of all employees" (Id., at § 1174, subd. (c))
• Records "showing the hours worked daily by and the wages paid to, and the number of piece-rate units earned by and any applicable piece rate paid to, employees" (Id., at § 1174, subd. (d) [3 years])
• Records of "wages and wage rates, job classifications, and other terms and conditions of employment of the persons employed by the employer" (Id., at § 1197.5, subd. (e) [3 years]), and
• Personnel records relating to "[each] employee’s performance or to any grievance concerning the employee." (Id., at § 1198.5, subd. (c)(1) [3 years after termination of employment].)

An employer must allow the Labor Commissioner’s Office "free access to the place of business or employment . . . to secure any information or make any investigation [the Labor Commissioner’s Office is] authorized . . . to ascertain or make." (Lab. Code § 1174, subd. (b).) An employer must also allow the Labor Commissioner’s Office to "inspect or make excerpts, relating to the employment of employees, from the books, reports, contracts, payrolls, documents, or papers of the [employer]." (Ibid.) Last, an employer must allow the Labor Commissioner’s Office to inspect records required to be kept for pay transparency. (Id., at § 432.3, subd. (c)(4).)

Every current and former employee has the right to inspect or receive a copy of records pertaining to their employment, upon reasonable request to the employer (Lab. Code § 226, subd. (b)), and to inspect and receive a copy of the personnel records that employer maintains relating to the employee’s performance or to any grievance concerning the employee. (Id., at § 1198.5, subd. (a).) Additionally, an employee has the right to the pay scale for their position upon request to the employer (id., at § 432.3, subd. (c)(2)), and an applicant has the right to the pay scale for a position to which they are applying upon reasonable request to the employer. (Id., at subd. (c)(1).)

15. Can an employee ask their employer how much other employees are paid?

Yes, an employee can ask their employer how much other employees are paid but no law requires an employer to provide that information. The law requires an employer, upon request, to provide an employee the pay scale for their position (Lab. Code § 432.3, subd. (c)(2)), and upon reasonable request, to provide an applicant the pay scale for a position to which they are applying. (Id., at subd. (c)(1).) However, an employer cannot retaliate against an employee for asking how much other employees are paid. (Id., at § 1197.5, subd. (k)(1).)

16. Can an employer prohibit an employee from talking about wages or aiding or encouraging any other employee to exercise their Equal Pay Act rights?

No, an employer cannot prohibit an employee from disclosing the employee’s own wages, discussing the wages of others, inquiring about another employee’s wages, or aiding or encouraging any other employee to exercise their Equal Pay Act rights. (Lab. Code §§ 232, subds. (a), (b), 1102.5, subd. (a), 1197.5, subd. (k)(1).)

17. Is an employee protected from retaliation for exercising their Equal Pay Act rights?

Yes, an employee is protected from retaliation for exercising their Equal Pay Act rights. These rights include disclosing the employee’s own wages, discussing the wages of others, inquiring about another employee’s wages, exercising the employee’s Equal Pay Act rights, aiding or encouraging any other employee to exercise their Equal Pay Act rights, and complaining about an Equal Pay Act violation. (Lab. Code § 1197.5, subd. (k)(1); see also §§ 98.6, subd. (a), 232, subd. (c), and 1102.5, subd. (b).) There is a rebuttable presumption of unlawful retaliation if an employer engages in any action prohibited by the Equal Pay Act within 90 days of an employee engaging in protected activity specified in the statute. (Id., at § 1197.5, subd. (k)(1); see also § 98.6, subd. (b)(1).)

18. Where and when can an employee file a claim if they suffer retaliation for exercising their Equal Pay Act rights?

A retaliation claim can be filed with the Labor Commissioner’s Office or in court. (Lab. Code §§ 98.7, subd. (a)(1), 1197.5, subd. (k)(3).) A claim must be filed no later than one year after the cause of action occurs. (Ibid.) An employee need not file a claim with the Labor Commissioner’s Office before filing an action in court. (Id., at § 244, subd. (a).)

A retaliation claim can be filed with the Labor Commissioner’s Office online or by submitting a Retaliation Complaint form (RCI 1).

An online complaint is filed with the Labor Commissioner’s Office when it has been submitted and confirmed by the user as part of the online process.

A scanned image of a completed paper RCI 1 form (signed and dated) or a completed PDF RCI 1 form (signed and dated) can be emailed to the Labor Commissioner’s Office at retaliation@dir.ca.gov.

A retaliation claim can be filed with the Labor Commissioner’s Office by mail too. (See FAQ No. 9 above.)

19. What happens to a retaliation claim filed with the Labor Commissioner’s Office?

The Labor Commissioner’s Office investigates a retaliation claim under Labor Code section 98.7. If the Labor Commissioner’s Office determines there is no violation, it will dismiss the claim. If the Labor Commissioner’s Office determines there is a violation, it may issue a determination under section 98.7 or a citation under section 98.74 to remedy the violation. If an employer fails to comply with a determination, the Labor Commissioner’s Office must file an action in court to compel compliance. If an employer fails to obtain review of a citation, the citation becomes final, and judgment is entered.

20. What are the remedies for unlawful retaliation?

Under the Equal Pay Act, an employee who has suffered unlawful retaliation may be entitled to reinstatement and reimbursement for lost wages and work benefits caused by the acts of the employer, including interest thereon, as well as appropriate equitable relief. (Lab. Code § 1197.5, subd. (k)(2).) The employer may also be liable for civil penalties and other remedies under the Labor Code. (See, e.g., Lab. Code §§ 98.6, subd. (b)(3), 98.7, subd. (c)(1), 98.74, subd. (a), 1102.5, subd. (f)(1).)

21. Can an employer ask an applicant for employment about their salary history information?

Generally, no, an employer cannot, orally or in writing, personally or through an agent, seek salary history information, including compensation and benefits, about an applicant for employment. (Lab. Code § 432.3, subd. (b).) The exception is for salary history information disclosable to the public under federal or state law, including the California Public Records Act or the federal Freedom of Information Act. (Id., at subd. (f).)

Nothing in California’s pay transparency law prohibits an applicant for employment from voluntarily and without prompting disclosing salary history information to an employer. (Lab. Code § 432.3, subd. (b).)

Likewise, nothing in the statute prohibits an employer from asking an applicant about their salary expectation for the position for which they are applying. (Id., at subd. (j).)

22. Can an employer use an applicant for employment’s salary history information to make an employment or compensation offer to an applicant?

Generally, no, an employer cannot rely on an applicant for employment’s salary history information as a factor in determining whether to offer employment to an applicant or what salary to offer an applicant. (Lab. Code § 432.3, subd. (a).) However, if an applicant voluntarily and without prompting discloses salary history information to an employer, nothing in the pay transparency law prohibits that employer from considering or relying on that voluntarily disclosed salary history information in determining the salary for that applicant. (Id., at subd. (i).) Nonetheless, consistent with the Equal Pay Act, nothing in the pay transparency law shall be construed to allow prior salary to justify any sex, race, or ethnicity-based pay disparity for substantially similar work performed under similar working conditions. (Id., at subd. (k).)

23. What do "applicant" and "applicant for employment" mean?

An "applicant" or "applicant for employment" for pay transparency law purposes is an individual who is seeking employment with the employer and is not currently employed with that employer in any capacity or position. (Lab. Code § 432.3, subd. (m)(2).)

24. Must an employer provide an applicant for employment the pay scale for a position to which they are applying?

Yes, upon reasonable request, an employer must provide an applicant for employment the pay scale for a position to which they are applying. (Lab. Code § 432.3, subd. (c)(1).)

25. Must an employer provide an employee the pay scale for their position?

Yes, upon request, an employer must provide an employee the pay scale for their position. (Lab. Code § 432.3, subd. (c)(2).)

26. Must an employer include the pay scale for a position in any job posting?

An employer with 15 or more employees must include the pay scale for a position in any job posting. (Lab. Code § 432.3, subd. (c)(3).) If such an employer engages a third party to announce, post, publish, or otherwise make known a job posting, it must provide the pay scale to the third party and the third party must include the pay scale in the job posting. (Id., at subd. (c)(5).) The Labor Commissioner’s Office interprets this to mean that the pay scale must be included in the job posting if the position may ever be filled in California, either in-person or remotely.

27. Who is counted as an employee to determine whether an employer has 15 or more employees?

Although the pay transparency law does not specify how employers should count employees, the Labor Commissioner’s Office interprets this requirement consistent with how it counts employees for the 2022 COVID-19 Supplemental Paid Sick Leave and minimum wage rates, as detailed in previously issued FAQs on the topic. At least one of the employees must be currently located in California.

28. What does "pay scale" mean?

The "pay scale" for pay transparency law purposes means a good faith estimate of the salary or hourly wage range that an employer reasonably expects to pay for a position upon hire. (Lab. Code § 432.3, subd. (m)(1).)

29. Must the pay scale for a position include bonuses, tips, or other benefits?

No. Any compensation or tangible benefits for a position in addition to a salary or hourly wage are not required to be posted, though an employer could include such information to make their recruitment efforts more competitive.

30. Must the pay scale for a position include piece rate or commission wages?

Yes. Labor Code section 200 allows an employer to compensate an employee, in whole or in part, on a task, piece, or commission basis. (Id., at subd. (a).) If a position’s hourly or salary wage is based on a piece rate or commission, then a good faith estimate of the piece rate or commission range the employer reasonably expects to pay for the position upon hire must be included.

31. Can an employer link to the pay scale in an electronic job posting or include a QR code in a paper posting that will take an applicant for employment to the pay scale?

No, the pay scale for a position must be included in a job posting itself. (Lab. Code § 432.3, subd. (c)(3).)

32. Where and when can a person file a claim if they are aggrieved by a pay transparency law violation?

A person who claims to be aggrieved by a pay transparency law violation may file a complaint with the Labor Commissioner’s Office within one year after the date the person learned of the violation. (Lab. Code § 432.3, subd. (d)(1).) The complaint shall state the name and address of the employer and shall provide a detailed account of the alleged violation, as may be required by the Labor Commissioner’s Office. (Id., at subd. (d)(2).) An aggrieved person may also bring an action in court for injunctive relief and any other relief that the court deems appropriate. (Id., at subd. (d)(3).)

33. What happens to a pay transparency law claim filed with the Labor Commissioner’s Office?

The Labor Commissioner’s Office investigates a pay transparency law claim under Labor Code section 98.7. If the Labor Commissioner’s Office determines there is no violation, it will dismiss the claim. If the Labor Commissioner’s Office determines there is a violation, it may issue a citation under section 98.74 to remedy the violation. If an employer fails to obtain review of a citation, the citation becomes final, and judgment is entered.

34. What are the remedies for a pay transparency law violation?

An employer who violates the pay transparency law may be liable for civil penalties between $100 and $10,000 per violation. (Id., at subd. (d)(4).)

35. Where is there more information about the Equal Pay Act?

The California Commission on the Status of Women and Girls convened a Pay Equity Task Force to develop resources to help ensure compliance with the Equal Pay Act. Visit the Commission online for resources tailored to employers.

Employers, do you want to commit to equal pay in your workplace? Take the Equal Pay Pledge hosted by the First Partner, the California Commission on the Status of Women and Girls, and the California Labor and Workforce Development Agency.

 

August 24, 2026