![]() An example of a business necessity is a higher rate of pay for an employee who works a shift that is during peak times of the day versus one who works during a slower time. For example, the CA Fair Pay Act allows employees to be paid differently based on seniority, merit (as long as a formal merit system is in place and is applied equally to all), production, quality or quantity bonuses, or another bona fide factor other than sex, race or ethnicity.Īdditional education is a qualifying factor that can trigger higher pay for one individual versus another, while a “business necessity” increase is another. It creates greater clarity for employers and employees alike when it comes to ensuring a fair and equitable work environment for all. HOW DOES THE CALIFORNIA FAIR PAY ACT HELP EMPLOYEES?Ĭalifornia’s Fair Pay Act does more than simply add on to existing state and federal-level employment laws.
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