California Makes A Statement On Latina Equal Pay Day

(SACRAMENTO) – Yesterday, on Latina Equal Pay Day, Senator Monique Limón’s legislation to bolster the state’s equal pay laws was signed by Governor Gavin Newsom. The signing of SB 642: The Pay Equity Enforcement Act comes as the state celebrates the tenth anniversary of the California Fair Pay Act.

“With many families continuing to stretch to make ends meet, we reinforce our commitment to equal pay laws that strengthen the economic security of California families and communities,” said Senator Monique Limón. “On Latina Equal Pay Day, I am incredibly proud that Governor Newsom is building upon our pay equity legacy here in California. The Pay Equity Enforcement Act will help narrow the wage gap by providing workers with more negotiation power at the start of their career, while also strengthening workers’ rights to recover lost wages – this is a win for workers and an even bigger win for California families.”

Specifically, SB 642 makes reforms to the California Equal Pay Act to ensure workers can effectively enforce their rights by harmonizing the statute of limitations with other wage statutes and allowing workers to recover for all lost pay for up to six years. Additionally, this bill updates the definition of “pay scale” to require a good-faith estimate of the salary or hourly wage that an employer reasonably expects to pay, allowing potential employees to have a clearer understanding of what they can negotiate for.

“Latina women give so much of themselves to this state, to their families, their work, and our communities. California’s story is one of perseverance and progress, written in large part by Latina women whose labor has fueled our economy and enriched our culture. Yet they continue to earn far less than their peers for the same work. True equity means rewriting that story – one where every woman is paid fairly and can share fully in California’s promise,” said Governor Gavin Newsom in a press release Wednesday night. 

In 2022, the Legislature passed Senator Limón’s landmark salary transparency law, SB 1162, which required companies with 15 or more employees to include a pay scale for all job postings. While many companies began to provide salary ranges that were reflective of a true salary estimate, some employers provided overly broad salary ranges spanning from $90,000 to $900,000. SB 642 addresses this issue by requiring a “good faith” estimate to allow workers more power during salary negotiations.

“The gender wage gap collectively costs Latinas billions in lost wages each year – money that could otherwise go toward rent, groceries, child care, and other essentials that families depend on,” said Jessica Ramey Stender, Policy Director & Deputy Legal Director of Equal Rights Advocates. “At a time when the federal government is attacking women’s rights and rolling back federal wage protections, California continues to take critical steps to advance pay equity for all. Ensuring Latinas are paid fairly is not only critical for their financial stability, but also for the economic security and well-being of families across the country.”

“One of the biggest barriers to advancing pay equity is that workers often don’t know that they are being paid unfairly until it is too late,” said Mariko Yoshihara, Policy Director for the California Employment Lawyers Association. “We applaud Governor Newsom for signing SB 642, which will comprehensively strengthen our equal pay laws and extend the ability to recover lost wages due to pay discrimination.”

To learn more about the Pay Equity Enforcement Act, click here. 
 

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Monique Limón represents the 21st Senate District, which includes Santa Barbara, Ventura, Goleta, Buellton, Carpinteria, Guadalupe, Lompoc, Santa Maria, Solvang, Camarillo, Fillmore, Ojai, Oxnard, Santa Paula, Port Hueneme, Blacklake, Callender, Grover Beach, Los Berros, Nipomo, Oceano, Woodlands. She currently serves as the Chair of the Senate Democratic Caucus, Vice Chair of the Central Coast Caucus, and Chair of the Senate Select Committee on the Nonprofit Sector.