Equal pay has become perhaps the hottest topic of 2017, as many cities and states are taking a stand to better the pay and overall experience of workers everywhere. San Diego is the latest city in the country to join the trend.
The new ordinance will go into effect on January 1, 2018 for all new and extended city contracts.
San Diego’s pay equity ordinance will guarantee equal pay for employees of city contractors who receive city grants or that provide other services to the city, including goods and services, construction, leased property, and consulting. Exempt from the ordinance are contractors with 12 or less full-time employees or public works contracts $500,000 or less. Some other smaller contracts also are exempt from this ordinance.
The ordinance, passed in July, requires city contractors to comply with California Equal Pay Act for the life of their contracts. The contractors must guarantee their commitment to provide equal pay in writing. They also have to provide visible notice of the ordinance and notify workers of their equal pay policy in writing. Wage records must be maintained as proof of compliance. Discrimination based upon race, ethnicity, and/or gender is prohibited.
Should city contractors be in violation of the ordinance, they have 30 days to rectify it or risk termination of their government contracts.
While the news is great for anyone working within San Diego city contracts, companies who work on government contracts across the country must keep their antennas up. As cities and states continue the trend for equal pay, proactively recognizing and understanding how to comply with equal pay laws may prove the best way to prevent violations.
To learn more about achieving pay equity, and to receive a free pay gap risk assessment, click here.