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| Cyrus Batchan, California Business Consultant |
The California Equal Pay Act has been in force since 1949,
prohibiting employers from paying employees who perform the same work different
wages based on the employee’s gender. Despite
the law, however, female workers’ wages continue to stagnate behind their male
co-workers, estimated at 80% of the male co-workers’ wages. As such, California legislature has continued
to pass legislative initiatives and updates aimed at remedying this disparity.
One law aimed at addressing wage disparity is the
prohibition against employers asking applicants about their salary history. Furthermore, the law also prohibits employers
from using salary history in making hiring decisions. It does not, however, restrict employees from
volunteering their salary history without prompting from the employer and the
employer considering such history in setting the employee’s salary once
volunteered. Still, such history cannot
be the sole factor in disparity between male and female co-workers.
One of the provisions of the California Equal Pay Act
received further clarification with a recent legislative update. The law required employers to provide a pay
scale for the position sought to an applicant upon reasonable request. Previously, the key terms such as “applicant”
and “reasonable request” were undefined by the statute. A recent update has provided definition for
these terms. “Applicant” is defined as
“an individual who is seeking employment with the employer and is not currently
employed with that employer in any capacity or position.” “Reasonable
request” is defined as a “request made after an applicant has completed an
initial interview with the employer.”
There are certain acceptable reasons for disparity in
pay. For example, employers may pay
similarly situated employees differently based on seniority or merit
system. Different pay may also be
justified on quantity or quality of work.
There is also the broad catch-all of a “bona fide factor other than sex,
race, or ethnicity.” Employer relying on
such bona fide factor would have to show some reasonable basis for disparity in
pay based on business necessity. Also,
employers may not prohibit employees from discussing their salary amongst themselves.
With continued focus on pay equality, entrepreneurs will
have to ensure their pay structure and hiring practices comply with relevant state
and federal requirements, notes Cyrus Batchan.
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Cyrus Leon Batchan is a business consultant in Sherman Oaks, California. He has
significant “hands on” experience with hospitality businesses. Currently, he is
involved in the hospitality businesses Lock & Key, Nightshade, Skylight Nha
Trang, and East-West Brewery (as Advisor). Mr. Batchan grew up in a restaurant
family and worked every job from dishwasher, cook, delivery driver to
bartender. Initially, he managed an investment fund developing real estates all
throughout the greater Los Angeles Area. In 2013, he opened Lock & Key, an
upscale lounge, in Los Angeles. Most recently, he has been involved in
Nightshade, the first restaurant for Top Chef winner Mei Lin along with partner
Francis Miranda of N°8. The expansive space, which goes into the former
Cerveteca, will feature a pan-Asian menu infused with modern touches and
California sensibilities, with Lin herself calling the experience “fine food in
a casual setting.” Think fine dining touches and plating with flavor influences
from Italy, Japan, and China.
Cyrus Leon Batchan is a business consultant in Sherman Oaks, California, focusing on restaurant and bar businesses. He has significant “hands on” experience with businesses. Cyrus Batchan received a Juris Doctor Degree from the University of San Diego, California. Website: https://cyrusbatchan.us
