Tag: pay discrimination

Posted on

Gaming Parlor Pays $92K in Pay Discrimination Settlement

Ensuring gaming industry employees are protected from gender discrimination & harassment, Helmer Friedman LLP.

Lacey’s Place Pays $92K in Pay Discrimination Settlement

The recent $92,964 settlement between Lacey’s Place sends a clear message: pay discrimination and retaliation have serious financial consequences. This gaming parlor chain’s case highlights ongoing workplace inequality issues that affect countless employees across American businesses.

Pay discrimination remains a persistent problem in workplaces nationwide. Despite decades of federal legislation, women and minorities continue to face wage disparities for performing substantially similar work. The Lacey’s Place case demonstrates how these violations manifest in real-world scenarios and the legal remedies available to affected workers.

When employers pay female district managers less than their male counterparts with similar qualifications, they violate fundamental principles of workplace equality. The subsequent retaliation against an employee who complained about these disparities compounds the legal violations and underscores the courage required to speak up against discrimination.

Details of the Lacey’s Place Settlement

The Lacey’s Place case involved systematic pay discrimination that affected female district managers across the company’s 30+ Illinois gaming parlor locations. Since at least March 2018, female managers earned less than male coworkers despite having comparable experience and educational backgrounds.

The discrimination extended beyond unequal wages. When one female manager raised concerns about the pay disparity, the company terminated her employment in clear retaliation. This action violated both her right to equal compensation and her protected right to report discrimination without facing adverse consequences.

The EEOC’s investigation revealed violations of both Title VII of the Civil Rights Act of 1964 and the Equal Pay Act. These federal laws establish clear prohibitions against sex-based discrimination in compensation and protect employees who report such violations from retaliation.

The four-year consent decree requires Lacey’s Place to implement comprehensive reforms beyond the monetary settlement. The company must develop written policies against sex-based pay discrimination and retaliation, conduct anti-discrimination training, and perform a pay equity study of current district manager compensation. Regular reporting requirements ensure ongoing compliance with federal employment laws.

Federal Legal Framework Protecting Workers

The Equal Pay Act of 1963 established the fundamental principle that employers must provide equal wages for equal work regardless of sex. This landmark legislation emerged from decades of advocacy by labor unions and women’s rights organizations, who recognized the economic injustice of gender-based wage disparities.

Title VII of the Civil Rights Act of 1964 broadened these protections by prohibiting employment discrimination based on sex, race, color, religion, or national origin. Together, these federal laws create a comprehensive framework addressing workplace discrimination and retaliation.

The Equal Pay Act requires that jobs be substantially equal in skill, effort, responsibility, and working conditions to warrant equal compensation. Employers cannot justify pay differences based on gender stereotypes or assumptions about women’s economic needs or career commitment.

California’s Equal Pay Act strengthens these federal protections by addressing both gender and racial pay discrimination. The state law prohibits paying employees of one sex, race, or ethnicity less than others for substantially similar work. California also prohibits employers from using salary history in compensation decisions, helping prevent the perpetuation of historical wage gaps.

High-Profile Pay Discrimination Cases

Recent settlements demonstrate the widespread nature of pay discrimination across industries and the substantial financial consequences for employers that violate it. Google agreed to pay $28 million after internal documents revealed systematic pay disparities affecting Hispanic, Latinx, Indigenous, Native American, American Indian, Native Hawaiian, Pacific Islander, and Alaska Native employees.

Activision Blizzard’s $54.8 million settlement addressed unequal pay and sex-based discrimination affecting female employees throughout the gaming company’s California operations. The agreement required independent oversight of compensation policies and ongoing diversity initiatives.

Disney committed $43.25 million to resolve gender pay discrimination claims while implementing pay equity analyses and bias training programs. The entertainment giant’s case highlighted how enterprise-wide policies can perpetuate historical patterns of discrimination.

These settlements share common elements: clear documentation of systematic pay disparities, substantial monetary relief for affected employees, and comprehensive policy reforms to prevent future violations. They demonstrate that discrimination carries real financial consequences while establishing precedents benefiting broader groups of workers.

Employer Obligations and Best Practices

Employers must actively ensure compensation practices comply with federal and state anti-discrimination laws. This responsibility extends beyond avoiding intentional discrimination to identifying and correcting systemic disparities that may result from seemingly neutral policies.

Regular pay equity audits help identify compensation disparities based on gender, race, age, sexual orientation, national origin, or gender identity. These analyses should examine base salaries, bonuses, benefits, and advancement opportunities to ensure equal treatment across protected characteristics.

Job classification systems must focus on legitimate business factors such as skills, experience, education, and performance rather than subjective criteria that may mask discriminatory bias. Clear, written compensation policies help ensure consistent application of pay decisions across all employees.

Training managers and HR personnel on anti-discrimination laws helps prevent violations and raises awareness of subtle bias that may influence compensation decisions. Documentation of pay decisions provides transparency and demonstrates compliance with legal requirements.

California employers face additional obligations under Labor Code Section 432.5, which prohibits using salary history when determining compensation. Employers must provide pay scales upon request and include salary ranges in job postings for companies with 15 or more employees.

Recognizing Pay Discrimination

Employees should examine several factors when evaluating potential pay discrimination. Length of employment provides context for compensation decisions, as seniority systems may justify some pay differences. However, newer employees with similar qualifications earning more than longer-tenured workers may indicate discrimination.

Comparing compensation with colleagues performing substantially similar work reveals potential disparities. This analysis should consider base salary, bonuses, benefits, and advancement opportunities rather than focusing solely on hourly wages or annual salaries.

Primary responsibilities and required qualifications help determine whether positions warrant equal compensation under the law. Jobs requiring similar skills, effort, and responsibility should receive comparable pay regardless of different titles or minor variations in duties.

Performance evaluations and achievement metrics provide objective measures of employee contributions that should correlate with compensation levels. Consistently high-performing employees receiving lower pay than less productive colleagues may indicate discriminatory treatment.

Geographic location and industry standards offer additional context for evaluating pay fairness. However, these factors cannot justify discrimination based on protected characteristics such as gender, race, or age.

Documenting Evidence of Discrimination

Maintaining detailed records strengthens potential discrimination claims. Pay stubs, offer letters, and employment contracts provide concrete evidence of compensation terms and changes over time. Performance reviews demonstrate work quality and achievement levels that should influence pay decisions.

Email communications regarding compensation discussions, promotion decisions, or discriminatory comments create documented evidence of employer actions and attitudes. Social media posts or recorded conversations may also support discrimination claims when relevant to workplace treatment.

Job descriptions for your position and comparable roles help establish whether substantially similar work warrants equal compensation. Training records, educational requirements, and experience qualifications provide additional evidence of job similarity.

Witness statements from colleagues who observed discriminatory behavior or know about pay disparities strengthen cases with multiple perspectives. Coworkers who received different treatment despite similar qualifications provide valuable comparison evidence.

Internal complaint records demonstrate that employers had knowledge of discrimination issues and their responses to employee concerns. HR documentation, grievance procedures, and investigation reports may reveal patterns of discriminatory treatment or inadequate responses to complaints.

Taking Action Against Pay Discrimination

Workers experiencing pay discrimination have multiple options for seeking justice and compensation. Filing complaints with the Equal Employment Opportunity Commission initiates federal investigation processes that may result in monetary settlements and policy changes.

State agencies such as California’s Department of Fair Employment and Housing provide additional avenues for addressing discrimination violations. These agencies often have broader powers than federal enforcement and may pursue cases that EEOC cannot handle due to resource limitations.

Private legal action through experienced employment attorneys offers personalized representation and potentially higher compensation awards. Class action lawsuits may be appropriate when discrimination affects multiple employees, creating economies of scale for legal challenges.

The statute of limitations for discrimination claims requires prompt action. Federal law generally allows 180 days from the last discriminatory act to file EEOC complaints, though some states extend this timeframe. California provides one year for state agency complaints and longer periods for certain legal actions.

Retaliation protection ensures that employees can report discrimination without facing adverse consequences. Employers cannot terminate, demote, or otherwise punish workers for filing complaints or participating in discrimination investigations.

Fighting for Workplace Equality

The Lacey’s Place settlement represents one victory in the ongoing fight against workplace pay discrimination. While $92,964 may seem modest compared to some high-profile cases, this resolution demonstrates that violations affecting even small groups of employees carry real consequences.

Systematic change requires continued enforcement of anti-discrimination laws and willingness by workers to report violations despite potential retaliation risks. Each successful case establishes precedents that benefit future discrimination victims and encourages employers to examine their own practices.

Pay transparency initiatives, regular equity audits, and comprehensive anti-discrimination training create workplace cultures where equality can flourish. However, legal enforcement remains essential when employers fail to address discrimination proactively.

If you believe you have experienced pay discrimination or retaliation, documentation and prompt action protect your rights and strengthen potential claims. Experienced employment attorneys can evaluate your situation and explain available legal options for seeking justice and fair compensation.

Posted on

Discover Faces $7M Gender and Age Discrimination Lawsuit

Discover office Southern California.

Discover Executive Files Major Gender and Age Discrimination Lawsuit

A high-profile discrimination lawsuit has shaken Discover Financial Services as former executive Diane Offereins alleges the company made her a scapegoat for regulatory issues while revoking over $7 million in stock awards. The case, filed in U.S. District Court for the Northern District of Illinois, centers on claims of gender discrimination and age discrimination that highlight broader corporate accountability issues.

Offereins’ lawsuit comes amid Discover’s public disclosure in July 2023 that it had incorrectly classified some individuals’ credit cards as “commercial” beginning around mid-2007—two years before she even joined the company’s payment network division. The timing raises critical questions about fair treatment and corporate responsibility when regulatory problems emerge.

The case has already survived Discover’s attempt to dismiss the charges, with U.S. District Judge Joan Gottschall ruling that Offereins “plausibly alleged violations of U.S. civil rights law and equal pay provisions.” This decision allows the lawsuit to move forward, potentially setting important precedents for executive treatment and discrimination in corporate America.

A Distinguished Career Cut Short

Diane Offereins built an impressive 25-year career at Discover Financial Services, a digital banking and payment services company. Recruited in 1998 to serve as Chief Information Officer, she demonstrated exceptional leadership that earned her increasing responsibilities within the organization.

After serving as CIO until 2009, Offereins transitioned into the role of Executive Vice President and President of Payment Services, where she led Discover’s payments network until her retirement in June 2023. Her long tenure and senior position made her one of the company’s most experienced executives, with deep institutional knowledge spanning decades of corporate evolution.

The trajectory of her career—from CIO to heading the payments division—reflected Discover’s confidence in her abilities and leadership. This background makes the circumstances surrounding her departure and the subsequent revocation of her stock awards particularly striking.

The Heart of the Allegations

Offereins’ lawsuit presents serious claims of discriminatory treatment, alleging violations of multiple federal and state laws, including Title VII of the Civil Rights Act, the Equal Pay Act, and the Age Discrimination in Employment Act. The core allegation centers on pay discrimination and unfair treatment based on her gender and age.

The lawsuit describes how Discover initiated a long-running internal investigation into potential misclassification of certain credit cards that charged merchants higher interchange fees. According to court documents, this misclassification issue was “well-known within the Company and had been actively discussed since at least 2017.”

What makes Offereins’ case particularly compelling is her assertion that she became an unfair target for problems that predated her involvement. The credit card misclassification began around mid-2007, yet she didn’t join the payment network side of the business until 2009. Despite this timeline, she alleges that Discover used the investigation findings to justify canceling her unvested stock awards under claims of “misconduct.”

The $7 Million Stock Revocation

The most dramatic aspect of the case involves Discover’s decision to cancel Offereins’ unvested stock awards worth more than $7 million. The timing of this action proved particularly damaging—occurring six months after her retirement and on the night before her shares were due to vest.

Court documents reveal a calculated sequence of events. Offereins retired in June 2023, was interviewed by outside counsel days later, and then received notification in January 2024 that her unvested awards were being canceled. The company claimed she had engaged in “willful or reckless violation of the company’s risk policies” based on findings from the internal investigation.

Perhaps most significantly, Offereins alleges she was the only woman and only retired executive committee member to lose equity as a result of the investigation. According to her lawsuit, male executives who were “actually responsible for the card classification issue emerged relatively unscathed” and “managed to reap their benefits.”

Legal Proceedings Gain Momentum

Offereins took decisive legal action, filing charges with both the Equal Employment Opportunity Commission (EEOC) and the Illinois Department of Human Rights (IDHR) in June 2024. The EEOC quickly issued her a Notice of Right to Sue, enabling her federal lawsuit.

Discover attempted to dismiss the case, arguing in court filings that it “championed her for empowering women” and that she “does not — and cannot — allege that a similarly situated male was treated differently.” However, Judge Gottschall rejected this defense strategy.

The judge’s ruling contained particularly damaging language for Discover, stating that “Offereins plausibly pleads that Discover viewed her as a convenient scapegoat because, as a woman who had reached retirement age, it believed it was considerably harder for her to ‘fight back’ than it would have been for her younger, male colleagues.”

Sean Hecker, Offereins’ attorney, welcomed the court’s decision, saying they were pleased to see “this important matter move forward.” The ruling ensures the case will proceed to discovery, where internal company communications and decision-making processes may be scrutinized.

Broader Implications for Corporate Accountability

This lawsuit highlights critical issues surrounding age discrimination and gender discrimination in corporate America, particularly at the executive level. The case demonstrates how companies might use internal investigations as cover for discriminatory actions, raising questions about due process and fair treatment.

The legal challenges in proving discrimination cases often center on demonstrating disparate treatment—showing that similarly situated individuals of different demographics were treated more favorably. Offereins’ allegations about being the sole woman and retiree to lose equity could provide compelling evidence if substantiated through discovery.

Corporate governance experts note that the timing of Discover’s actions—revoking awards just before vesting—appears calculated to maximize financial harm while minimizing the company’s exposure. Such tactics may backfire if they’re perceived as retaliatory or discriminatory by courts and juries.

The case also raises broader questions about accountability when regulatory issues span multiple executives and time periods. How companies allocate blame and consequences during investigations can reveal underlying biases and discrimination patterns.

Fighting Back Against Corporate Discrimination

The Offereins case represents more than one executive’s fight for fair treatment—it embodies the ongoing struggle against systemic discrimination in corporate America. When companies use their power to target vulnerable employees while protecting favored executives, they undermine principles of equal treatment and due process.

For individuals facing similar discrimination, this case highlights the importance of documenting unfair treatment and seeking the counsel of experienced lawyers. Employment discrimination cases require sophisticated legal strategies and a deep understanding of federal and state civil rights laws.

The outcome of this lawsuit could influence how courts evaluate discrimination claims involving executive compensation and retirement benefits. A favorable ruling for Offereins might encourage other victims of discrimination to challenge unfair corporate actions.

Whether you’re experiencing workplace discrimination or retaliation, understanding your legal rights remains crucial. Corporate accountability depends on individuals willing to stand up against unfair treatment, even when facing powerful institutional opponents.

Stay informed about important legal developments that could affect your rights. Subscribe now for regular updates on discrimination law and corporate accountability cases.

Posted on

Pay Discrimination Laws & Employee Rights | Legal Guide 2025

Stop Racism, race harassment, discrimination lawyers in Los Angeles, Helmer Friedman LLP.

The Deep Impact of Pay Discrimination on Workers

Pay discrimination continues to take an emotional and financial toll on American workers, despite decades of civil rights legislation designed to promote fair compensation. The recent $100,000 settlement reached between Sinclair, Inc. and employee Jonae Rollins serves as a poignant reminder of the unfair wage disparities that remain deeply rooted in our workplaces, often driven by race and gender.

This situation represents more than just an isolated legal violation; it shines a light on a pervasive issue that affects millions of hard-working individuals across the country. It emphasizes the importance of understanding your rights, recognizing discriminatory practices, and knowing how to navigate the legal framework. This knowledge can empower individuals to stand against injustice rather than suffer in silence.

The Sinclair Case: A Heartbreaking Example of Discrimination

The case brought by the Equal Employment Opportunity Commission (EEOC) against Sinclair, Inc. reveals distressing patterns that echo the experiences of many workers in various sectors. Jonae Rollins, a dedicated Black information technology worker, endured what employment attorneys see as textbook pay discrimination over her three years with the company.

After initially being hired in 2015 for a temporary role, Rollins earned a promotion to full-time status the following year. Unfortunately, despite her remarkable skills and dedication to her role, she faced the painful reality of consistently receiving lower pay than her white colleagues, many of whom were not equipped to handle the same responsibilities. The complaint highlighted this inequity, stating that “a white employee who worked with Ms. Rollins was paid more for performing similar work and was granted opportunities that were repeatedly out of reach for her.”

The most striking evidence came from Sinclair’s own records, which revealed that by February 2018, Rollins was “the lowest-paid employee on the team.” Even after a compensation study validated her claims of being underpaid, the company postponed any corrective action, citing “company restructuring.” In a heart-wrenching twist, a white subordinate received a $21,000 raise and additional benefits, including the chance to work remotely full-time.

When Rollins bravely voiced her concerns in May 2018, expressing that she could no longer continue without a salary increase, Sinclair chose to terminate her employment. This decision stands in stark contrast to the treatment she had received throughout her tenure, raising serious concerns about the motivations behind such a drastic step. Her experience underscores the profound impact of pay discrimination, reminding us that behind every statistic lies a story of struggle and resilience.

Federal and State Legal Protections

The legal framework addressing pay discrimination operates through multiple layers of federal and state legislation, each providing specific protections and remedies for affected workers.

The Equal Pay Act of 1963

The federal Equal Pay Act established the foundational requirement that employers pay equal wages for equal work, regardless of sex or race. This law applies to jobs requiring substantially equal skill, effort, and responsibility performed under similar working conditions. Employers can only justify pay differences through legitimate factors such as seniority systems, merit-based compensation, productivity measurements, or other factors unrelated to gender.

California’s Enhanced Protections

California’s Equal Pay Act extends beyond federal requirements, prohibiting wage disparities based on race and ethnicity in addition to sex. The law defines “substantially similar work” as tasks requiring comparable skill, effort, and responsibility under similar working conditions. Critically, employers cannot justify pay differences by referencing an employee’s prior salary history—a practice that historically perpetuated wage gaps.

California Labor Code Section 432.5 further strengthens worker protections by prohibiting employers from seeking salary history information during the hiring process. Companies with 15 or more employees must include pay scales in job postings and provide current employees with their position’s pay scale upon request.

Title VII Broader Coverage

Title VII of the Civil Rights Act of 1964 provides comprehensive protection against race discrimination in all aspects of employment, including compensation. This law covers hiring, promotion, termination, and working conditions, creating multiple avenues for addressing discriminatory practices beyond just wage disparities.

Employee Rights and Protections Against Retaliation

Workers possess specific rights when confronting pay discrimination, along with strong legal protections against employer retaliation. California Labor Code Section 232 explicitly prohibits employers from preventing employees from discussing their wages or the wages of others. Companies cannot require workers to sign waivers surrendering these rights or punish employees for wage-related conversations.

These discussions often provide the first evidence of discriminatory pay practices. When workers can openly compare compensation, patterns of discrimination become apparent, enabling them to build stronger legal cases. The law recognizes that transparency is essential for identifying and addressing wage disparities.

Retaliation protections extend beyond wage discussions to cover formal complaints, participation in investigations, and cooperation with enforcement agencies. Employers who terminate, demote, or otherwise punish workers for asserting their rights face additional legal liability beyond the original discrimination claims.

Preventing Workplace Discrimination

Employers have both legal obligations and business incentives to prevent pay discrimination. Proactive measures can avoid costly litigation while creating more equitable workplaces that benefit all employees.

Compensation Audits and Reviews

Regular pay equity audits help identify and correct discriminatory patterns before they become legal liabilities. These reviews should examine compensation across demographic groups, job classifications, and career progression paths.

Companies should document their findings and take corrective action where disparities cannot be justified by legitimate business factors.

Clear Policies and Training

Comprehensive anti-discrimination policies must address pay equity specifically, outlining prohibited practices and reporting procedures. Manager training should cover unconscious bias, fair compensation practices, and the legal requirements for justifying pay decisions. Regular refresher training ensures these principles remain front-of-mind during compensation decisions.

Transparent Compensation Structures

Clear job descriptions, standardized pay scales, and documented promotion criteria reduce opportunities for discriminatory decision-making. When compensation decisions follow established, objective criteria, both employers and employees benefit from greater clarity and fairness.

EEOC Lawsuits vs. Private Employment Attorneys

Attorneys provide personalized legal representation, advocating directly for individual clients or smaller groups. Private employment attorneys typically offer more tailored legal strategies, ensuring the unique circumstances and needs of their clients are thoroughly addressed, whereas the EEOC prioritizes broader regulatory enforcement. Private attorneys are often instrumental in securing significant financial awards for their clients, with settlements and verdicts commonly reaching into the millions. This distinction underscores the value of seeking private legal counsel for individualized attention, comprehensive advocacy, and the potential for substantial compensation in resolving employment disputes.

Frequently Asked Questions

What constitutes pay discrimination under current law?

Pay discrimination occurs when employers compensate employees differently based on protected characteristics like race, gender, or ethnicity for substantially similar work. The discrimination can be direct wage disparities or indirect practices like using salary history to set compensation.

How can I determine if I’m experiencing pay discrimination?

Compare your compensation to colleagues performing similar work with comparable qualifications and experience. Consider factors like base salary, bonuses, benefits, and advancement opportunities. Document any patterns that suggest disparate treatment based on protected characteristics.

What should I do if I suspect pay discrimination?

Document all relevant information, including job responsibilities, performance evaluations, and compensation details. Report concerns through your company’s internal complaint procedures if available. Consider consulting with employment law attorneys who can evaluate your situation and explain your legal options.

Can my employer retaliate against me for discussing wages or filing complaints?

No. Both federal and state laws specifically prohibit retaliation against employees who discuss compensation or file discrimination complaints. Employers who engage in retaliatory conduct face additional legal liability beyond the original discrimination claims.

Securing Your Rights in the Workplace

Pay discrimination is a troubling issue that continues to affect many workers, regardless of their industry or career level. The Sinclair case is a stark reminder that even when employees voice their concerns and companies recognize these problems, discriminatory practices can still endure. If you find yourself in a similar situation, it’s important to know that you don’t have to endure this alone.

Taking the time to understand your legal rights is a crucial first step in confronting pay discrimination. There are federal and state laws designed to offer support, whether through internal company procedures or formal legal action. The significant settlements that have emerged from recent high-profile cases highlight that employers can and do face serious repercussions for unfair practices.

If you suspect that you are experiencing pay discrimination at work, reaching out to experienced employment law experts can provide valuable guidance. They can help you explore your options and advocate for your rights. There is a legal framework in place to address these issues, and with informed action, you can make a difference. You deserve to be treated fairly and with respect in your workplace.

Posted on

Unmasking the Shadows: A Comprehensive Analysis of Pay Discrimination

2017-2018 Pay Dashboard shows wage discrimination remains issue.

Pay disparity between men and women is an ongoing issue that remains pertinent today. According to data available on the U.S. Equal Employment Opportunity Commission (EEOC) Pay Data Dashboard, the median pay for men remained higher than women for the years 2017 and 2018, a fact reflected in various industries and job categories.

The battle for equal pay for equal work has a long history. The first milestone in this journey was the Equal Pay Act of 1963, a landmark law that prohibited sex-based wage discrimination between men and women who perform jobs that need similar skills, effort, and responsibility under similar working conditions.

Subsequent laws such as the Civil Rights Act of 1964, specifically Title VII, further reinforced this protection, making it illegal to discriminate based on sex, race, color, national origin, and religion. The Lilly Ledbetter Fair Pay Act in 2009 further cemented the efforts for equal pay by allowing individuals who face pay discrimination to seek rectification in courts.

While these laws were all steps in the right direction, the pay data suggests that disparity still exists. However, it’s important to note that this doesn’t mean the laws have failed. Instead, it reflects the complexity of the issue which is deeply rooted in culture and society. It also shows the importance of continuous struggle and the necessity for monitoring and strict implementation of these laws.

For women facing wage discrimination, the Equal Pay Act provides a legal basis for claiming their rights. Women can file a complaint with the EEOC, or can also, under the provisions of the Lilly Ledbetter Act, sue their employers in court for pay discrimination. Therefore, laws guaranteeing equal pay for equal work have played, and continue to play, a pivotal role in the fight against pay disparity.

Ultimately, change takes time and effort. While the laws have facilitated some progress, they alone cannot completely eliminate the pay gap. It’s up to each of us to understand the issues, know our rights, and act towards achieving full equality.

Posted on

Equal Pay and Anti-Retaliation Protection Act

Equal Pay and Anti-Retaliation Protection Act protects from retaliation.

New California Law Makes It Easier for Employees to Establish Retaliation Claims for Alleged Labor Code Violations

CA SB 497 Retaliation Law 2024

On October 8, 2023, Governor Gavin Newsom of California signed Senate Bill No. 497, officially establishing the “Equal Pay and Anti-Retaliation Protection Act.” The act aims to protect employees who engage in certain protected activities under specified sections of the California Labor Code from experiencing any adverse employment action within 90 days of such activity. If an employee does face such action, the act sets up a “rebuttable presumption of retaliation” against the employer. The Equal Pay and Anti-Retaliation Protection Act will take effect on January 1, 2024.

Under the new law, the burden of proof for showing that the adverse employment action was based on a legitimate non-retaliatory reason will lie with the employer. Additionally, an employee who wins the case will be entitled to civil penalties for each violation. Suppose an employer is found to have retaliated against an employee for Section 1102.5 protected activity. In that case, the employer may be liable for a civil penalty not exceeding $10,000 per employee for each violation. This civil penalty is already available for Section 98.6 protected activity.

The new presumption standard and civil penalties remind employers in California that they must take employee complaints seriously and avoid any actions against an employee that could be considered unlawful retaliation.