Often referred to as compensation or pay discrimination, wage discrimination is a significant violation of your rights. As an employee, you are protected under equal pay laws designed to ensure equal pay for similar work. This means it is illegal for an employer to fail to pay their employees the same amount when successfully performing substantially similar work due to factors such as their age, race, or religion.

What is Classified as Wage Discrimination?

Understanding what wage discrimination actually looks like is critical, because it often goes unnoticed.

Many people assume discrimination only exists when their own pay is obviously lower, but unequal pay practices can be subtle, cumulative, and hidden behind titles or discretionary raises. Over time, these disparities can cost affected employees thousands of dollars in lost wages, bonuses, and future earnings, even when the difference is not immediately apparent.

A common misconception is that an employee can only be a victim of wage discrimination if their own pay is reduced or unequal. In reality, wage discrimination also occurs when an employer pays another employee more or less based on a protected characteristic, even if the complaining employee’s compensation remains unchanged. The harm is not limited to an individual loss in wages. It arises from the employer’s discriminatory pay practice itself, which distorts the workplace and violates equal pay requirements regardless of whether every affected employee experiences an immediate, personal pay reduction.

While unequal salary is the most obvious form of wage discrimination, it can also occur in other ways:

• Overtime pay
• Bonuses
• Stock options
• Life insurance
• Benefits
• Profit-sharing
• Vacation and holiday pay
• Reimbursement for travel expenses
• Bonus plans
• Gasoline and cleaning allowances

The Fair Pay Act

The Fair Pay Act sets the legal standard for how wage discrimination is evaluated. Originally, the law only protected employees performing “equal work,” which allowed employers to avoid liability by assigning different job titles to people doing essentially the same work.

The law was updated to cover “substantially equal work,” meaning pay decisions are judged by the actual duties, skills, effort, and responsibility involved, not by job titles alone. This makes it harder for employers to justify unequal pay when the work being performed is functionally the same.

What California Labor Code § 432 Prohibits

Additionally, as a way to prevent employers from making an employee’s new salary low due to a previously earned salary being based on discriminatory reasons, California enforces laws that also help better protect the rights of employees in the state. The CALIFORNIA LABOR CODE § 432 provides new leverage during salary negotiations.

• Prohibits employers from asking about prior salaries
• Required employers to provide pay scales (age ranges) upon reasonable request

Contact an Experienced Wage Discrimination Lawyer

If you think your pay may be unfair, even if you are not completely sure, speaking with an experienced wage discrimination lawyer can help you understand where you stand. A lawyer can review your situation, explain whether the law applies to you, and outline what options you may have. In many cases, employees recover unpaid wages or other compensation, and getting advice early can protect your rights before mistakes are made.

Many employees hesitate to speak up because they fear retaliation from their employer.

Retaliation includes being punished, harassed, demoted, or treated differently for raising concerns about unequal pay or taking legal action. While that fear is understandable, the law prohibits retaliation, and employees are protected when they assert their rights. Knowing these protections exist can make it easier to take the first step.

To better protect employees and their rights, laws enforced by the U.S. Equal Employment Opportunity Commission prohibits employers from displaying all forms of retaliation.

Barkhordarian Law Firm Can Help

Being a victim of wage discrimination can impact your day-to-day lifestyle and livelihood. Therefore, when working for an employer, it is essential that you know your rights. Never hesitate to question your employer or seek professional help anytime you feel you are experiencing this type of treatment.

Here at Barkhordarian Law Firm, we have a team of skilled attorneys who are dedicated to helping you get the justice you deserve. With years of similar legal experience, we have what it takes to review your case and determine what is best for you moving forward. With our firm on your side, you can rest assured knowing that we will work tirelessly to do all we can to see your case succeed, all while offering you the support you may need every step of the way. Let us get you the compensation you deserve.

Wage Discrimination FAQ’s