Lesson for Employers: Company in California Will Pay Nearly $200,000 to Settle Equal Pay Act Charge
On April 1, 2025, the Equal Employment Opportunity Commission (EEOC) announced that a company from California must pay nearly $200,000 to resolve allegations that it violated the Equal Pay Act. Tiburcio Vasquez Health—an organization located in Alameda County—was charged with unlawfully underpaying three female employees. Here, our California employment law attorney provides a more detailed explanation of the case and highlights a key lesson for employers.
California Employer Will Pay to Resolve Equal Pay Act Violations
Tiburcio Vasquez Health Center is a nonprofit medical provider located in Southern Alameda County. Based on the results of an EEOC investigation, the company will pay $195,000 to three female employees and implement workplace reforms to resolve Equal Pay Act violations. Notably, the probe stemmed from a July 2023 complaint by a female physician assistant. That employee alleged she was paid less than a male nurse practitioner with no prior experience, despite both of them performing similar work. The EEOC found reasonable cause that from April 2022 to August 2023, three women were paid less for substantially equal duties. As part of a two-year agreement reached through pre-litigation conciliation, the health center must also revise its policies to comply with the law.
What is the Equal Pay Act?
The Equal Pay Act of 1963 is a federal law that requires employers to pay men and women equal wages for performing jobs that require substantially equal skill, effort, and responsibility, and that are performed under similar working conditions within the same establishment. In other words, an employer cannot pay a woman less than a man (or vice versa) for doing the same or very similar work just because of their sex. The law allows for pay differences only if they are based on factors like seniority, merit, quantity or quality of production, or other non-discriminatory reasons.
Three Lessons for Employers in California About the Equal Pay Act
Lesson #1: Equal Pay Applies to Substantially Similar Work—Not Just Job Titles
The Equal Pay Act (and its California counterpart) look beyond job titles. If two employees perform work that requires similar skill, effort, and responsibility under similar conditions, they must be paid equally—regardless of gender. Employers should regularly evaluate pay practices to ensure compliance with the law.
Lesson #2: Justifying Pay Differences Requires Comprehensive Merit-Based Evidence
In the recent EEOC case discussed above, involving Tiburcio Vasquez Health Center, a male employee with less relevant experience was paid more than female counterparts. As part of the settlement, the EEOC emphasized that experience by itself was not dispositive, but that employers do need a comprehensive merit-based and non-discriminatory reason to justify a pay disparity.
Lesson #3: Documentation is a Key Risk Management Tool
Employers should establish objective compensation criteria, conduct regular pay equity audits, and document decisions. Documentation is key when navigating Equal Pay Act issues. Notably, transparent, consistent compensation policies can also help demonstrate good faith efforts to comply with the law. That can reduce the risk of costly employment law claims.
Speak to Our California Employment Attorney for Employers Today
At Sloat Law Group, APC, our California employment lawyer is committed to helping businesses and organizations find proactive solutions that work. If you have any specific questions about an Equal Pay Act case, please do not hesitate to contact us today for a fully confidential consultation. We represent employers in the Coachella Valley, Riverside County, and all across the State of California.
Source:
eeoc.gov/newsroom/tiburcio-vasquez-health-center-pay-195000-settle-eeoc-equal-pay-charge
