California was one of the leading states to tackle pay discrimination by banning inquiries into salary history.  California Labor Code Section 432.2, which went into effect on January 1, 2018, prohibits public and private employers from seeking or relying upon the salary history of applicants for employment.  But some of the law’s terms were undefined and some of the provisions were unclear, so after Section 432.2 went into effect, employers had questions about how to remain compliant with the law when hiring new employees. Acknowledging the need for clarity, Governor Jerry Brown signed an amendment into law on July 18, 2018.
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The new year brings new laws for California employers to grapple with. We highlight the most significant new employment laws affecting California employers as of January 1, 2018.  Companies based in California or with operations in California are encouraged to review their policies and procedures in light of these developments.
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In response to a presidential memorandum directing the Department of Labor (“DOL”) to collect summary compensation data from federal contractors and subcontractors to combat pay discrimination, the DOL’s Office of Federal Contract Compliance Programs (“OFCCP”) recently proposed a rule calling on certain federal contractors to submit reports on employee compensation.
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On April 8, 2014, in recognition of National Equal Pay Day, President Obama continued to advance his wage equality agenda by focusing on wage transparency through Executive Order on Non-Retaliation for Disclosure of Compensation Information (“Executive Order”) and a Presidential Memorandum entitled “Advancing Pay Equality Through Compensation Data Collection” (“Presidential Memorandum”).

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