Employment

SB 642: What Changed in California Equal Pay Law on January 1, 2026

On January 1, 2026, Senate Bill 642 rewrote the rules for equal pay claims in California. Workers now have three years to file for any violation, can recover up to six years of underpaid wages, and can count bonuses, stock, and stock options as part of the pay being compared. If you suspected a pay gap in the past but thought too much time had passed, that may no longer be true. Wilshire Law Firm’s employment attorneys explain every change below — and what each one means for your case.

SB 642: What Changed in California Equal Pay Law on January 1, 2026
  • $3B+RECOVERED
  • 7X"BEST LAW FIRM" AWARDS
  • 24/7AVAILABILITY & SUPPORT
  • 500+LEGAL PROFESSIONALS

Understanding Your Equal Pay Case

Explore essential resources on your rights, your options, and what to expect — everything you need to navigate the legal process, all in one place.

Three years from the last date the cause of action occurs, for every violation — the willful/non-willful distinction is gone. Just as important, § 1197.5(i)(3) provides that a cause of action occurs when a pay decision is adopted, when you become subject to it, and each time you are paid wages resulting from it. In practice, every underpaid paycheck starts a fresh three-year window, and § 1197.5(i)(4) expressly preserves the continuing violation doctrine and the discovery rule on top of that. Our guide to every equal pay deadline maps how the clocks interact.

Under § 1197.5(i)(2), an employee is entitled to relief for the entire period the violation existed, capped at six years. Combined with paycheck accrual, that means a claim filed within three years of your last underpaid check can reach back up to six years of wage differential — then the Equal Pay Act doubles it: you recover the underpayment plus an equal amount as liquidated damages, along with interest and attorney's fees. Before SB 642, recovery was effectively limited to two or three years. The same gap is now worth roughly double — the full arithmetic is in our guide to what an equal pay claim is worth.

Because in many industries — especially tech — the real pay gap isn't in base salary. Section 1197.5(l)(3) now defines wages to include "all forms of pay," expressly naming bonuses, stock, stock options, profit sharing and bonus plans, and benefits. An employer that pays two engineers the same salary but grants one materially larger equity for substantially similar work has an Equal Pay Act problem. Our guide to tech pay discrimination covers equity-gap claims in depth.

Before 2026, § 1197.5(a) compared wages between employees of the "opposite sex" — binary language that left nonbinary employees in a legal gray area. SB 642 replaced it with "another sex." A nonbinary employee paid less than a colleague of any other sex for substantially similar work now has a textual claim, and comparisons no longer have to run male-versus-female. FEHA's separate protections for gender identity and expression still apply alongside — our employment discrimination attorneys routinely pair the two claims.

Frequently, yes, as to ongoing underpayment. Because each paycheck that reflects the unlawful decision gives rise to a new cause of action, a gap that began years ago but continued into the limitations period can still be actionable, with recovery reaching back up to six years. How the amendments apply to any specific timeline is fact-dependent — this is exactly the question to put to a lawyer in a free case review rather than guess at.

Client Reviews


Wilshire Law Firm was very fast responding to me about my case… they were very nice and helpful and made sure I understood all of the facts. I would recommend [Wilshire Law Firm] for anyone who is looking for the best; they are number one. Thank you Wilshire and staff for making things feel easier.

Angela B.

Past results do not guarantee similar outcomes. Each case is unique and evaluated on its own facts.

Equal Pay Cases: How It Works

One Call. We Handle the Rest.

It starts with one call. From there, we handle everything, building your case, standing up to insurance companies and corporations, and fighting for your future. Here's how it works...

01

Contact us 24/7

Start your free case review by calling us or filling out our online form.

02

Powerhouse team on your side

If we're able to take your case, we'll take strong legal action to hold whoever harmed you accountable.

03

No fees unless you get paid

Whether through a settlement or trial, we'll fight to get you the financial recovery you're owed.

What Did SB 642 Change in the California Equal Pay Act?

Five things, all effective January 1, 2026. (1) The deadline to file is now three years for all violations under Labor Code § 1197.5(i)(1) — the old two-year rule, with three only for willful violations, is gone. (2) You can recover wages for the entire period a violation existed, up to six years (§ 1197.5(i)(2)). (3) A cause of action now accrues each time a paycheck reflects the unlawful decision (§ 1197.5(i)(3)) — California's version of the federal Lilly Ledbetter rule, written directly into the statute. (4) The law now prohibits paying you less than employees of "another sex," not the "opposite sex," extending protection to nonbinary and transgender workers. (5) "Wages" now expressly includes all forms of pay — salary, overtime, bonuses, stock, stock options, profit sharing, and benefits (§ 1197.5(l)(3)).

Start Your Free Equal Pay Case Review

4.9 out of 2,522 reviews
  • Available 24/7
  • Hablamos Español
  • Nationally-Recognized Powerhouse Team
As seen in:

We'll contact you within minutes

No fees unless you get paid.

By submitting this form, you knowingly, voluntarily, and expressly consent to receive from Wilshire Law Firm telephone calls, emails, and SMS text messages, including those made using an automatic telephone dialing system (auto-dialer), artificial intelligence (AI), and/or pre-recorded or artificial voice messages. These communications are for the purpose of providing prompt consultation regarding your potential case. You understand that by providing your telephone number, you are granting permission to be contacted for this purpose, even if your number is on a federal or state Do-Not-Call registry. Consent is not required as a condition of retaining Wilshire Law Firm. Message and data rates may apply. You may revoke your consent to receive calls, texts, or emails at any time by replying “STOP” to any text message, calling 888-557-3271, filling out the form at wilshirelawfirm.com/do-not-contact or by any other reasonable method. For more information, refer to our Privacy Policy.

Record breaking results

Winners of #1 Settlements in California

Our attorneys have recovered billions of dollars, including some of the biggest settlements in California.

17#1 Settlements in California, 2022–2024*

TopVerdict #1TopVerdict.com #1 settlements

11 of 17

  • #1 Truck v. Pedestrian Accident Settlement — California (2024)

    #1 Truck v. Pedestrian Accident Settlement

    2024

  • #1 Multi-Vehicle Accident Settlement — California (2024)

    #1 Multi-Vehicle Accident Settlement

    2024

  • #1 Equipment Malfunction Settlement — California (2024)

    #1 Equipment Malfunction Settlement

    2024

  • #1 Car v. Stationary Object Collision Settlement — California (2024)

    #1 Car v. Stationary Object Collision Settlement

    2024

  • #1 Bus v. Passenger Accident Settlement — California (2024)

    #1 Bus v. Passenger Accident Settlement

    2024

  • #1 Whistleblower Retaliation Settlement — California (2023)

    #1 Whistleblower Retaliation Settlement

    2023

  • #1 Underinsured Motorist Settlement — California (2023)

    #1 Underinsured Motorist Settlement

    2023

  • #1 Slip & Fall Accident Settlement — California (2023)

    #1 Slip & Fall Accident Settlement

    2023

  • #1 Negligent Security Settlement — California (2023)

    #1 Negligent Security Settlement

    2023

  • #1 Ladder Accident Settlement — California (2023)

    #1 Ladder Accident Settlement

    2023

  • #1 Hotel Premises Liability Settlement — California (2023)

    #1 Hotel Premises Liability Settlement

    2023

  • #1 Car v. Car Collision Settlement — California (2023)

    #1 Car v. Car Collision Settlement

    2023

  • #1 Bicycle Accident Settlement — California (2023)

    #1 Bicycle Accident Settlement

    2023

  • #1 Pregnancy Discrimination Settlement — California (2022)

    #1 Pregnancy Discrimination Settlement

    2022

  • #1 Age/Disability Discrimination Settlement — California (2022)

    #1 Age/Disability Discrimination Settlement

    2022

  • #1 Wrongful Termination Settlement — California (2022)

    #1 Wrongful Termination Settlement

    2022

  • #1 Meal & Rest Breaks Settlement — California (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.

Maybe not. If the underpayment continued into the last three years, each of those paychecks created a fresh claim, and recovery can reach back as far as six years from filing. Timing questions like this are exactly what a free case review resolves.

It doesn't revive claims that were already dead and gone, but because every underpaid paycheck creates a new violation, ongoing gaps that straddle January 1, 2026 are generally analyzed under the new, longer windows. An attorney can map your specific dates.

Yes. The amended statute expressly includes stock and stock options in the definition of wages, so equity grants and refreshes are part of the pay being compared.

Yes — the posted pay scale must now be a good-faith estimate of what the employer expects to pay upon hire under Labor Code § 432.3, aimed at meaninglessly wide ranges. The equal pay comparison rules above are separate but often work together with posting violations.

Labor Code § 1197.5, as amended effective January 1, 2026 — the state's official text is at leginfo.legislature.ca.gov, and the Labor Commissioner's updated summary is on the DIR website. We quote the operative subdivisions throughout this page.

Related Content

Guides, nearby offices, and related practice areas to equal pay claims.

Locations

Find your nearest office — serving all of California and employment clients in Oregon and Washington.

Appointments required for office visits

Beverly HillsIrvineLos AngelesOaklandRiversideSacramentoSan DiegoTorrance