What you should know if you’re paid less than a coworker  

California has some of the strongest pay equity protections in the country. In 2025, the state strengthened its equal pay and pay transparency requirements with the Pay Equity Enforcement Act, also known as Senate Bill 642.  

Several state laws work together to address different forms of wage discrimination, increase transparency, and help workers challenge unjustified pay disparities. Understanding which protections apply often depends on the specific facts of your situation.  

Beyond ‘Equal Pay for Equal Work’  

Many people have heard of “equal pay for equal work”—the idea that women and men should be paid equally for doing the same job. That standard can be difficult to meet because it can require lots of other things to be equal, such as job titles, duty stations, or day-to-day schedules.    

California’s Equal Pay Act is more flexible, going beyond a rigid requirement of identical roles. The law generally prohibits paying employees of different sex, race, or ethnicity differently when they perform substantially similar work, meaning the jobs do not have to be a perfect match.  

To determine whether two roles are substantially similar, the law looks at the work as a whole: the skill, effort, and responsibility required to do the job, as well as whether the work is performed under similar working conditions.  

Some Pay Gaps May Be OK—If They Can Be Justified  

Not every pay difference is illegal. Pay differences are allowed under strict conditions.  

Employers may pay workers differently when the difference is based on legitimate factors, such as a seniority system, a merit system, production-based compensation, or certain other job-related factors.  

However, employers generally must be able to show that those factors actually explain the pay difference and are reasonably related to the work being performed.  

An employer cannot rely on vague assumptions, stereotypes, or unsupported explanations to justify unequal pay.  

It’s also important to remember that a pay disparity doesn’t always show up in your hourly rate or your salary. To evaluate whether a disparity is illegal, California law considers your entire compensation package, which may include overtime or bonuses, and noncash incentives such as stock options, equity structures, and employer-provided benefits and perks.  

Pay discrimination can violate California’s anti-discrimination laws 

Separate from the Equal Pay Act, California’s Fair Employment and Housing Act prohibits discrimination in compensation and other terms of employment based on protected characteristics.  

These protected characteristics include sex, race, national origin, disability, age, sexual orientation, gender identity, religion, and many others.  

Unlike the Equal Pay Act, FEHA does not necessarily require showing that someone else performed substantially similar work. Instead, the focus is on whether pay decisions were influenced by unlawful discrimination.  

Employers Cannot Ask About Your Salary History  

California law prohibits employers from asking applicants about their salary history or relying on prior compensation when deciding what to pay them. The purpose of the law is to prevent historical wage disparities from following you from one job to the next.  

If you were underpaid in the past, that shouldn’t become the baseline for what you earn in the future.  

Whether you’re an applicant or an employee, you have the right to know pay ranges.  

California also requires many employers to include pay scales in job postings. As a current employee, you have the right to request the pay scale for your position.  

These disclosures can provide valuable information about how employers value a position and whether compensation practices appear consistent.  

Pay transparency laws can reveal disparities that might otherwise remain hidden.  

You Are Allowed to Talk About Pay  

How much people make is often a sensitive topic, which means many workers do not discover a pay disparity until they learn what a coworker earns.  

California and federal law generally protect employees who discuss wages or ask about compensation. Workplace policies and non-disclosure agreements that attempt to bar you from sharing or inquiring about pay are illegal.  

You Are Protected From Retaliation 

If you raise concerns about unequal pay, participate in an investigation, request your role’s pay scale, or otherwise exercise your rights under California’s pay equity laws, your employer cannot legally retaliate against you.  

Retaliation can take many forms, including discipline, demotion, reduced hours, undesirable assignments, or termination. The idea is simple: California workers are protected by strong laws, but those protections are meaningless if you fear retribution for exercising them.  

Federal Law Matters Too  

California’s protections are stronger than their federal counterparts, but it’s helpful to recap them too.  

Depending on the circumstances, wage discrimination may also violate laws such as the federal Equal Pay Act or Title VII of the Civil Rights Act.  

• Equal Pay Act: Requires employers to pay men and women equally for performing jobs that require equal skill, effort, and responsibility and are performed under similar working conditions. 

• Title VII: Prohibits employers from making compensation decisions based on race, color, religion, sex, or national origin.  

What to Do if the Explanation Doesn’t Add Up  

If you believe you are being paid less than coworkers performing similar work, start by documenting your job duties, compensation, and any information that helps explain how your role compares to others.  

An employment attorney can help evaluate which laws may apply to your situation.  

Because different legal claims have different requirements and deadlines, it is often helpful to seek advice before critical evidence disappears or filing deadlines expire.  

The Bottom Line  

California law does not require you to accept unjustified pay disparities. If you’re being paid less than you should be and the explanation doesn’t add up, California’s pay equity laws may provide protection.  

Speaking with an Outten & Golden attorney can help clarify your options and protect your rights. Call our intake team at 877-468-8836. They’re available to speak with you Monday through Friday, 8:30 a.m. to 9 p.m. Eastern time.