What is the story about?
What's Happening?
Governor Newsom has signed SB 642 into law, amending California's Equal Pay and Pay Transparency laws. The amendments broaden key definitions, extend the statute of limitations to three years, and specify categories of unlawful practices. These changes aim to enhance pay equity and transparency, with the amendments set to take effect on January 1, 2026.
Why It's Important?
The amendments to California's Equal Pay laws represent a significant step towards achieving pay equity and transparency in the workplace. By broadening definitions and extending legal protections, SB 642 aims to address wage disparities and ensure fair compensation across genders. This legislation reflects ongoing efforts to promote workplace equality and protect employees' rights.
What's Next?
Employers in California will need to update their pay policies and practices to comply with the new amendments. This includes providing pay scale information in job postings and ensuring equal compensation across genders. The changes may prompt businesses to review their compensation structures and address any existing disparities.
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