Employees are essential to any organization or company, but without fair pay, no one would stick around very long. If you have employees in your business or company, you should ensure that you pay them well, especially the ones that you want to stick around.

In addition, you should ensure that they have good working conditions. Good remuneration is one of the motivating factors that can make employees perform better in the workplace.

However, there are circumstances where employees are normally discriminated due to their races. This leads to a race-based disparity in pay. This is detrimental. This can actually make an employee lose morale in his or her job. However, in California, Fair Pay Act came to mitigate this problem.

What is Fair Pay?

You will note that employees who perform similar work under similar working conditions should be paid equally. However, there are instances where the employees who work under the same conditions can be paid differently.

In this case, the employee should be able to manifest that the wage differential is based on either of the following; senior system, merit system and so forth. He or she should also show that he or she gets more salary not as a result of sex or race but due to factors such as education or experience.

You will note that this law requires that each factor is relied on. Each factor should account for the entire wage differential. This is one way of reducing discrimination in the workplace. As we move towards the future, employees will need to be paid for the position he or she is worth.

However, if the same employee has extra skills and competencies that can help the company or the organization, he or she can get a higher salary. The burden of paying employees falls on the employer.

The employer should check these factors so that he or she can pay the employees what they deserve. If you promote fairness in your workplace, your employees will be encouraged to work. In addition, their morale will increase. This goes a long way in improving their productivity.

What the Fair Pay Act Does

The Fair Pay Act basically calls for an overhaul of hiring practices of HR professionals who work in California. These professionals should check the credentials of the job applicants and then reward them accordingly.

This can do a long way in reducing race-based disparities in pay. Earlier on, job applicants used to negotiate for their salaries with their employers. However, times have changed. This Act has enabled most employees to get a fair pay for their services. This can be very beneficial to your company or business in California.

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California has the most expansive Fair Pay Act which covers different classes of people. The law discourages any form of discrimination in the workplace based on ethnicity or ace. For example, if individuals are performing the same task in an organization, they are supposed to be paid equality.

If you have employees who perform similar duties in your workplace, then you will not be allowed by law to pay them different wages. You should try as much as possible to ensure there is fairness in your workplace. If you are discovered to have engaged in any form of discrimination, legal actions may be taken against you.

Some of the cases under which you can pay workers different amounts of money include the following:

A seniority system

There are some employees who are senior in their workplace. For example, they may have worked or long in the organization hence they have climbed the ranks for them to become senior employees. If you have such a system in your workplace, then you can use the system for you to pay employees at different rates in your organization.

A merit system

There are several factors which can contribute towards the merit of your employees. For example, if you have an employee who has added qualifications, then buy merit you can decide to pay such an employee more money. You should have a well-defined system for you to gauge the merit of the employee for you to avoid breaking the law.

Quality and quantity for production

If you have a system in place which measures the equality or quantity of production, then you can base your payment on such a basis. If you have an employee who tends to deliver more for the organization, then the employee deserves to be paid more than others who are performing less. The system should be well defined so that you can know how to pay employees at different levels.

Education, training, and experience of the employer

You should base your payment system on a different factor other than race, sex, and ethnicity when trying to pay the employees. If you have an employee who has undergone several other training as a way of trying to improve his career, then the employee can be paid more than others who have not undergone the extra training.

Any reasons which you base to pay your employees should be based on the law rather than discrimination.

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