$6.8M
San Bernardino County wage and hour class action settlement: a class of employees alleged their employer failed to pay wages owed and sought related penalties.
Employment
How Employers Defend Equal Pay Claims — and Where Those Defenses Break
Once you show a coworker of another sex, race, or ethnicity earns more for substantially similar work, California law does something unusual: it shifts the burden to your employer. Under Labor Code § 1197.5, the employer must affirmatively demonstrate that specific lawful factors explain the pay difference — all of it, not most of it. There are exactly four such factors, each is narrower than employers assume, and the two excuses workers hear most often — “he negotiated better” and “that’s what she made at her last job” — are not on the list.
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Not by itself. Negotiation is not one of the four statutory factors, and an employer relying on it must still tie the outcome to a bona fide factor that is job-related and consistent with business necessity. If men's negotiations are systematically rewarded and women's aren't, the "negotiation" explanation is itself derived from sex — which the statute expressly disallows. Employers use this excuse constantly; it fails more often than they expect.
No. Labor Code § 1197.5 states that prior salary shall not justify any disparity in compensation, and Labor Code § 432.3 separately bars employers from asking for your salary history at all. An employer may consider an existing employee's current salary in setting pay only if any resulting gap is independently justified by one of the four lawful factors. If your offer was pegged to what you earned at your last job and a coworker's wasn't, that is evidence for you, not for your employer.
The word "system" is doing the work. An employer claiming seniority or merit must show an established, consistently applied structure — written criteria, regular evaluations, documented application — not an after-the-fact rationalization. A "merit system" that produces raises for one group and explanations for another is not a system, and under the statute each factor must be applied reasonably and account for the entire differential it is claimed to explain.
It is the catch-all employers reach for: education, training, experience, certifications, market conditions. But the statute attaches three conditions — the factor must not be based on or derived from a protected-trait differential, must be job-related with respect to the position in question, and must be consistent with business necessity. Even then, you can defeat it by showing an alternative business practice would serve the same business purpose without producing the wage difference. Generic appeals to "the market" rarely survive this test when examined against actual pay data — a dynamic we see constantly in tech compensation cases.
Once you establish a pay differential for substantially similar work, the burden of persuasion shifts to the employer — it must prove its defense, not merely suggest one. This is stronger for workers than the federal framework, where the employer's burden is lighter. Practically, it means the employer's records, policies, and pay decisions go under the microscope, and gaps in its documentation work in your favor — which flows straight into what the claim is worth.
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John G. Yslas, Esq.Senior Partner, Chair of the Employment Wage & Hour Class Action Department
Mary Lee Caruso, Esq.Senior Partner
Tyler J. Woods, Esq.Senior Partner
Arrash Fattahi, Esq.Partner
Benjamin Haber, Esq.Partner
Nicol Hajjar, Esq.Partner
Diego Aviles, Esq.Junior Partner
Jeffrey Bils, Esq.Junior Partner
Emily Borman, Esq.Junior Partner
Jose Maria D. Patino, Jr., Esq.Junior Partner
Christina M. LeJunior Partner
William M. Pao, Esq.Junior Partner
Eugene Zinovyev, Esq.Junior PartnerRecent wins
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$5.5M
Oakland wage and hour class action settlement: senior living facility employees alleged unpaid wages, meal and rest break violations and unreimbursed expenses in class and representative claims.
$4.0M
Hawthorne wage and hour class action settlement: a manufacturer's hourly employees alleged missed rest breaks, short or late meal periods and unpaid wages, plus unreimbursed work expenses.
$3.9M
Newport Beach wage and hour class action settlement: hourly manufacturing plant employees alleged late and interrupted meal and rest breaks and sought unpaid premium pay.
$3.5M
Camarillo wage and hour class action settlement: hourly employees alleged meal and rest period violations and sought unpaid wages plus the related premiums.
$3.5M
Alameda County wage and hour class action settlement: hourly workers at a security systems company alleged unpaid wages and meal and rest period violations, and sought break premiums.
$3.3M
Irvine wage and hour class action settlement: hourly employees of a products company alleged they were denied compliant meal and rest breaks and sought premium pay and expense reimbursement.
$3.1M
Torrance wage and hour class action settlement: retail store employees alleged unpaid wages and meal and rest period violations, seeking final pay, waiting-time penalties and expense reimbursement.
$3.0M
Thousand Oaks wage and hour class action settlement: a manufacturer's employees alleged unpaid pre-shift work and noncompliant meal and rest breaks, seeking break premiums and expense reimbursement.
$3.0M
Orange County wage and hour class action settlement: a healthcare employer's hourly workers alleged unpaid overtime and meal and rest break violations and sought premium pay and expense reimbursement.
$3.0M
San Diego wage and hour class action settlement: hourly employees alleged unpaid wages and break violations, pursuing meal and rest period premiums and repayment of work costs.
$2.8M
Riverside County wage and hour class action settlement: a restaurant franchise's hourly workers alleged unpaid wages and meal and rest period violations and sought to recover their work expenses.
$2.8M
Brentwood wage and hour class action settlement: an education provider's hourly staff alleged unpaid wages and meal and rest period violations and sought premium pay and expense reimbursement.
$2.5M
San Francisco County wage and hour class action settlement: hourly campus employees sought unpaid wages and work expense reimbursement, alleging meal and rest period violations.
$2.5M
San Jose wage and hour class action settlement: hourly car dealership employees alleged they were underpaid, denied proper meal and rest periods and not reimbursed for work expenses.
$2.5M
San Francisco County wage and hour class action settlement: hourly clinic staff alleged off-the-clock work, meal and rest period violations, unpaid premiums and unreimbursed work expenses.
$2.5M
San Leandro wage and hour class action settlement: hourly employees alleged unpaid overtime, unpaid wages and meal and rest period violations, and claimed break premiums and out-of-pocket costs.
$2.4M
Orange County wage and hour class action settlement: restaurant employees alleged a franchise operator failed to provide legally required meal and rest breaks or pay the premiums owed.
$2.2M
Los Angeles wage and hour class action settlement: hourly hospital employees alleged their employer failed to provide meal periods required by California law.
$2.1M
San Diego County wage and hour class action settlement: franchise restaurant workers alleged unpaid off-the-clock work, late meal and rest breaks without premium pay, and unreimbursed work gear.
$2.0M
Alameda County wrongful termination settlement: an employee who reported a coworker's harassment and helped a colleague file a complaint alleged being fired months later. The employer cited a layoff.
$2.0M
Tulare wage and hour class action settlement: food processing employees alleged interrupted rest breaks without premium pay and no reimbursement for personal phones used for work.
$2.0M
Watsonville wage and hour class action settlement: hourly workers at an agricultural company alleged unpaid overtime, interrupted lunches and missing rest breaks during long shifts.
$1.6M
Barstow wage and hour class action settlement: hourly workers at a vehicle-services business alleged unpaid off-the-clock time, meal and rest break violations and unreimbursed uniform costs.
$1.0M
Los Angeles County workplace retaliation settlement: an employee alleged being fired weeks after reporting harassment and wage violations. The employer said the position was eliminated.
$910K
Gardena wage and hour class action settlement: hourly employees alleged they were denied meal and rest breaks without premium pay and had to cover supplies and phone costs.
$825K
Oakland leave of absence settlement: a worker who had come back from approved medical leave was later fired and alleged retaliation and wrongful termination by the employer.
$750K
Woodland workplace harassment settlement: a worker alleged sexual harassment and discrimination, and that supervisors took no action on repeated complaints before the worker was forced to quit.
$750K
Los Angeles leave of absence settlement: an employee let go while on approved medical leave alleged disability discrimination and wrongful termination. The employer cited restructuring.
$675K
Carson workplace discrimination settlement: an office employee who was let go alleged discrimination and harassment at work and brought a wrongful termination claim against the employer.
$650K
Los Angeles leave of absence settlement: a worker fired while on medical leave brought claims against the employer, alleging disability discrimination and wrongful termination.
$500K
Santa Ana workplace retaliation settlement: an employee alleged being let go after reporting inappropriate conduct by a manager. The company called it a layoff.
$500K
Fresno workplace retaliation settlement: an employee alleged being fired after an ethics complaint about patient privacy violations. The claims included discrimination and wrongful termination.
$500K
Commerce leave of absence settlement: an employee on approved medical leave alleged being fired weeks before a scheduled return, with no prior warnings. The claims included disability discrimination.
$500K
Morgan Hill disability discrimination settlement: an employee alleged being let go during medical treatment after a request for remote work was refused. The employer cited hardship.
$500K
Los Angeles County disability discrimination settlement: an employee alleged being fired for requesting more medical leave while coworkers were already covering the work. The employer cited hardship.
$425K
Anaheim disability discrimination settlement: an employee facing medical treatment alleged being fired in retaliation within two weeks of complaining about a manager, despite no write-ups.
$395K
Riverside disability discrimination settlement: an employee alleged being fired after asking to extend medical leave. The employer said the leave was exhausted.
$340K
Santa Clara County wrongful termination settlement: an employee alleged being fired after complaining to human resources about a manager. The employer raised performance concerns after the complaint.
$325K
Lake County workplace discrimination settlement: an employee alleged being fired days after requesting an accommodation. The claims included disability discrimination and retaliation.
$260K
California workplace discrimination settlement: an employee alleged the employer denied reasonable accommodations and then ended the job, bringing discrimination and wrongful termination claims.
$250K
Bakersfield leave of absence settlement: an employee on doctor-ordered medical leave alleged being fired during the leave. The termination letter gave no reason.
$225K
Campbell wrongful termination settlement: an employee who sought a medical accommodation alleged being fired in retaliation days after human resources closed a harassment complaint.
$220K
Signal Hill wage and hour class action settlement: employees alleged they missed meal and rest breaks without receiving premium pay and were not paid for all time worked.
$200K
Hemet wage and hour class action settlement: hourly thrift store employees alleged meal and rest period violations, seeking premium pay, cell phone expense reimbursement and PAGA penalties.
$185K
Shasta County wage and hour settlement: an employee brought a representative claim on behalf of healthcare employees, alleging meal and rest period violations, unpaid wages and unreimbursed expenses.
$176K
Newport Beach wrongful termination settlement: a restaurant employee alleged being fired after reporting a coworker's sexual harassment. The employer claimed a layoff but brought that coworker back.
$175K
San Francisco disability discrimination settlement: an employee with disabling medical conditions alleged being denied accommodations and wrongfully terminated from a salaried position while disabled.
$174K
Tulare County disability discrimination settlement: an employee on medical leave alleged being fired while still disabled and awaiting further treatment. The employer cited a single write-up.
$170K
Torrance wrongful termination settlement: a care facility employee alleged being fired the same day the employee reported medication handling concerns and racial mistreatment to corporate.
$125K
Downey leave of absence settlement: an employee alleged being fired while on medical leave after a warning that filing for protected leave would lead to termination.
$125K
Sacramento County disability discrimination settlement: an employee on intermittent medical leave alleged being fired because of a medical condition and age. The claims also included retaliation.
$116K
San Diego wage and hour settlement: a restaurant employee alleged unpaid overtime from edited time sheets and straight-time pay for extra hours, plus missed meal and rest breaks.
$100K
Victorville wage and hour class action settlement: hourly restaurant employees alleged their employer left wages unpaid, violated meal and rest period rules and did not reimburse work expenses.
*Past results do not guarantee similar outcomes. Each case is unique and evaluated on its own facts.
What Must an Employer Prove to Justify a Pay Gap in California?
The employer must demonstrate that the entire wage differential rests on one or more of four factors: (1) a seniority system, (2) a merit system, (3) a system that measures earnings by quantity or quality of production, or (4) a bona fide factor other than sex, race, or ethnicity — such as education, training, or experience. The fourth factor only applies if the employer proves it is not derived from a sex-, race-, or ethnicity-based differential, is job-related for the position, and is consistent with business necessity. Every factor must be applied reasonably, and together they must account for the whole gap. If any part of the difference is left unexplained — or if you show an alternative business practice would serve the same purpose without the disparity — the defense fails.
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#1 Truck v. Pedestrian Accident Settlement
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#1 Multi-Vehicle Accident Settlement
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#1 Equipment Malfunction Settlement
2024
#1 Car v. Stationary Object Collision Settlement
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#1 Bus v. Passenger Accident Settlement
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#1 Whistleblower Retaliation Settlement
2023
#1 Underinsured Motorist Settlement
2023
#1 Slip & Fall Accident Settlement
2023
#1 Negligent Security Settlement
2023
#1 Ladder Accident Settlement
2023
#1 Hotel Premises Liability Settlement
2023
#1 Car v. Car Collision Settlement
2023
#1 Bicycle Accident Settlement
2023
#1 Pregnancy Discrimination Settlement
2022
#1 Age/Disability Discrimination Settlement
2022
#1 Wrongful Termination Settlement
2022
#1 Meal & Rest Breaks Settlement
2022
*#1 settlements in California have been awarded by TopVerdict.com. Past results do not guarantee similar outcomes.
Equal Pay FAQs
Our Most Frequently Asked Questions
We've answered the most common ones below. If yours isn't here, call us — we're available 24/7.
Usually not on its own. Negotiation isn't one of the four lawful factors, and if asking-for-more only works for some groups, the excuse itself becomes evidence of discrimination. Worth a case review.
No — experience can be a lawful factor, but the employer must prove it is job-related, consistent with business necessity, and explains the entire gap. Two years of extra experience rarely explains a $30,000 difference.
California's four factors don't include location as such — unlike Oregon's law, which lists it. A location-based explanation has to survive as a bona fide factor: job-related and consistent with business necessity.
Then the defense fails as to the unexplained part. The statute requires the factors relied upon to account for the entire wage differential.
No. The Equal Pay Act is not about intent — an unjustified gap violates the statute regardless of motive. Intent matters for a separate FEHA discrimination claim, which is often filed alongside.