Can an employer in California pay employees differently based on the fact that one employee had a higher prior salary than another?

There is a major caveat to keep in mind: An employer may still not violate the other tenets of the Equal Pay Act, no matter what prior salary information is or is not disclosed. An employee cannot be paid less than another employee of another sex, ethnicity, or race if they are doing substantially similar work.

What is California differential pay?

A pay differential is special additional pay recognizing unusual competencies, circumstances, or working conditions applying to some or all incumbents in select classes. Pay Differentials are typically initiated through the collective bargaining process but may also be the result of a classification proposal.

How does the employer decide on shift differential pay?

Employers decide the amount of shift differential pay. Shift differentials don’t differ by employee: When you offer differential pay, you offer it to all employees who work those hours.

Is there a pay differential for a bilingual employee?

Bilingual pay differential. A monthly pay differential that is granted to a certified bilingual employee who is in a designated bilingual position.

Are there geographic pay differentials for non executive employees?

Over 80 percent of companies provide geographic pay differentials to employees below the executive ranks. Executives are less likely to be eligible for geographic pay differentials than non-executive employees. Companies choosing “other” indicated that the types of structures used varies by type of job, business unit, location or union status.

Can a prevailing rate employee get a night shift differential?

A prevailing rate employee regularly assigned to a day shift is entitled to a night shift differential for any period during which the employee is temporarily assigned to work a regular shift for which a night shift differential is otherwise payable.

Bilingual pay differential. A monthly pay differential that is granted to a certified bilingual employee who is in a designated bilingual position.

How are pay differentials created for state employees?

Pay Differentials are typically initiated through the collective bargaining process but may also be the result of a classification proposal. Creating and issuing a pay differential may be needed in order to recognize: There are over 400 Pay Differentials available to State employees who meet established standards.

Do you get differential pay if you dont work the same shift?

Because differential pay can be used to reward workers who don’t normally work a shift or can be secured by an individual employee’s negotiations with his employer, differential pay rates don’t need to extend to all workers on the same shift. If differentials are offered to select workers,…

What are the law requirements for a shift differential?

In addition, employers can’t create a situation in which scheduling for shifts that receive a pay differential is determined by race, sex, religion, color or national origin. Employees that feel that scheduling or differential pay policies are discriminatory may seek damages against an employer in a civil suit.