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On October 8, 2025, the Pay Equity Enforcement Act (SB 642) was signed into law in California. This landmark legislation strengthens California’s Equal Pay Act and gives workers new tools to hold employers accountable for pay discrimination.
The Pay Equity Enforcement Act – SB 642 (Limón)
This bill strengthens the California Fair Pay Act by: (1) revising outdated gender binary language, (2) clarifying what constitutes “wages,” (3) extending the statute of limitations to three years, (4) allowing workers to recover lost wages for up to 6 years, and (5) providing limits on how wide pay ranges may be in public job postings.
Together, these updates make California’s pay equity framework stronger, clearer, and more enforceable — giving workers real tools to challenge unfair pay and recover what they’re owed.
A Step Toward Greater Accountability
California has long led the nation in fighting for pay equity. Yet wage disparities persist across industries, particularly for women, people of color, LGBTQ+ employees, and individuals with disabilities. By modernizing the law and expanding the time period for recovery, the Pay Equity Enforcement Act ensures that workers have both the clarity and the time they need to pursue justice.
The law also enhances transparency by narrowing the range employers can post for job openings — helping applicants and employees make informed decisions and reducing opportunities for pay discrimination to hide behind vague or inflated ranges.
Signed on Latina Equal Pay Day
This legislation was signed on Latina Equal Pay Day. A day that highlights how far into the year Latinas must work to earn what white, non-Hispanic men earned the previous year. While the law protects all workers, signing it on this day underscores the urgent need to address the structural inequities that still leave many women and workers of color underpaid for the same work.
Why Enforcement Matters
For too long, workers facing wage disparities have struggled to prove discrimination and recover what they’re owed. Expanding the statute of limitations and defining “wages” more precisely means employers can be held accountable for longer periods of unlawful pay practices.
These changes don’t just promote fairness, they advance economic stability and equality. For employees rebuilding after harassment, discrimination, or retaliation, fair pay is a critical part of recovery and independence.
Moving Forward
At Haeggquist & Eck, we see firsthand how unequal pay perpetuates injustice and how accountability changes lives. The Pay Equity Enforcement Act represents meaningful progress toward a system where every worker, regardless of gender, race, or background, is compensated fairly for their labor.
The Pay Equity Enforcement Act strengthens the promise of equal pay for equal work and reinforces California’s leadership in protecting workers’ rights.
It’s a win for all employees. It’s a reminder that fairness in pay isn’t just a value; it’s the law.
At HAE, we celebrate this progress and remain committed to holding employers accountable, supporting workers in asserting their rights, and advancing a future where pay equity is the standard for everyone.
