Am I Underpaid? Signs of Pay Discrimination and How to Fix the Gap

If you suspect you’re earning less than coworkers doing the same job, you may be right – and California law gives you real tools to do something about it. Pay discrimination happens when employers pay women, people of color, nonbinary employees, or other protected groups less than colleagues for substantially similar work.

You don’t need to have proof before you act. You need to know what to look for and what to do next. Kramer Brown Hui LLP represents California workers in pay discrimination cases and offers free consultations.

Key Takeaways

• Pay discrimination means earning less than colleagues doing substantially similar work because of sex, gender, race, ethnicity, or other protected characteristics – under California Labor Code Section 1197.5.
• California law explicitly protects your right to discuss wages with coworkers. Your employer cannot retaliate, discipline, or fire you for these conversations (Labor Code Section 232).
• Total compensation is covered – not just base salary. Bonuses, stock options, overtime opportunities, and benefits all count.
• As of January 1, 2026, California’s SB 642 expanded Equal Pay Act protections to cover nonbinary and transgender employees – broadening who can bring a claim.
• Document everything now. Waiting makes cases harder to prove and shrinks your recovery window.

Not sure if what you’re experiencing qualifies? Contact Kramer Brown Hui LLP for a free, confidential consultation.

What Counts as Pay Discrimination Under California Law?

Pay discrimination under California’s Equal Pay Act means your employer pays you less than someone performing substantially similar work – based on a protected characteristic. California’s protections exceed federal standards. You don’t need the same job title as the person earning more.

The substantially similar standard covers three factors:

• Skill – comparable training, education, and experience required for the job
• Effort – similar physical or mental demands
• Responsibility – equivalent accountability for decisions, people, or outcomes

Work performed under similar conditions across different locations at the same employer can still be compared.

Protected characteristics under California law:

• Sex, gender, gender identity, gender expression (including nonbinary workers as of January 1, 2026)
• Race and ethnicity
• Age, disability, national origin, religion, pregnancy status

What compensation is covered:

Everything, not just your salary. California law covers base pay, bonuses, stock and stock options, overtime, profit sharing, vacation and holiday pay, benefits, and travel reimbursements.

Warning Signs You May Be Underpaid

• Coworkers in comparable roles earn significantly more – especially if they have similar or less experience than you
• New hires receive higher starting salaries than your current pay despite your greater tenure
• Your employer discourages or prohibits salary discussions – this is itself a violation of California Labor Code Section 232
• Your pay dropped or your raise was withheld after returning from protected leave (pregnancy disability, FMLA, or disability accommodation)
• Promotions and raises consistently go to colleagues who don’t share your protected characteristic
• You’ve been given vague explanations for pay decisions – ‘market rates’ or ‘prior salary’ – both of which California law prohibits as justifications for gender- or race-based pay gaps

How to Document a Pay Discrimination Claim

Strong documentation is the foundation of a pay discrimination case. Start building your record before you file anything.

What to gather:

• Your job description, performance reviews, and records of any duties you’ve taken on beyond your title
• Written records of salary conversations with coworkers – protected under California Labor Code Section 1197.5
• Industry salary benchmarks from Glassdoor, salary surveys, or professional associations for your role, level, and location
• Emails and written communications about pay decisions, raise requests, or explanations given by management
• A timeline of any compensation changes that followed protected activity – returning from leave, filing a complaint, requesting accommodations

Once you have documentation, an employment attorney can evaluate what you have and help you identify gaps. Kramer Brown Hui LLP offers free consultations to walk through your situation.

Steps to Take If You Think You’re Being Underpaid

1. Request a pay equity review internally
   Ask HR or your manager for a private meeting. Bring your documentation – performance reviews, salary research, and any written communications. Submit your request in writing and keep a copy. If informal conversations fail, file a formal internal discrimination complaint through your company’s HR process.
2. File a complaint with a government agency
   If internal resolution doesn’t work, you have two options – and you can pursue both simultaneously:
   • California Civil Rights Department (CRD) – file within three years of the discriminatory act under FEHA
   • EEOC (federal) – file within 300 days. Filing with one agency can automatically dual-file with the other. Under SB 642, employees now have three years to pursue Equal Pay Act claims, regardless of whether the violation was willful.
3. Consult an employment attorney
   Before you file anything formal, speak with an attorney. California law prohibits retaliation for inquiring about wages, discussing pay with colleagues, or filing a discrimination complaint – but knowing your rights before you act protects you. An attorney can tell you whether your documentation is sufficient, which claims to pursue, and what remedies are available.

Why Choose Kramer Brown Hui LLP

Kramer Brown Hui LLP is a Los Angeles employment law firm representing California workers in pay discrimination, wrongful termination, harassment, and wage and hour cases. The firm’s attorneys have been recognized as Super Lawyers and include partners selected to the Top 100 Southern California Super Lawyers and Top 50 Women Attorneys of Southern California lists. The firm takes a collaborative approach – every case is reviewed by multiple attorneys to build the strongest possible strategy.

If you believe you’re being underpaid because of your sex, race, ethnicity, or another protected characteristic, schedule a free consultation to understand your options.

Frequently Asked Questions

How do I prove unfair pay?

You need to show four things: (1) you perform substantially similar work to a higher-paid colleague, (2) there’s a pay gap, (3) you belong to a protected class, and (4) the employer’s stated reason for the gap is pretextual. Protected wage discussions under California Labor Code Section 232 are a legitimate way to gather the salary comparisons you need.

What are the signs you’re being underpaid due to discrimination?

The clearest signs are pay gaps among people in California doing substantially similar work, salary secrecy enforced by your employer, lower pay after protected leave, and being passed over for raises despite strong performance – when those patterns track a protected characteristic like gender or race.

How long do I have to file a pay discrimination claim in California?

You have three years from the date of the discriminatory act to file with the California Civil Rights Department (CRD) under FEHA. The federal EEOC deadline is 300 days. Missing these deadlines can permanently bar your claim, so don’t wait.

Can my employer retaliate for asking about wages?

No. California Labor Code Section 232 and the Fair Pay Act both prohibit retaliation for discussing, disclosing, or inquiring about wages – your own or a coworker’s. If you’ve been disciplined or threatened for asking about pay, that retaliation may be its own legal claim.

Kramer Brown Hui LLP: Your Los Angeles Pay Discrimination Attorneys

Pay discrimination is easier to fix the earlier you act in Los Angeles. Back pay, pay adjustments, and damages are all possible remedies – but the longer a gap continues, the harder it becomes to recover what you’ve lost.

If the patterns in your workplace don’t add up, trust that instinct. Contact our firm today for a free consultation and find out what your options actually are.

California Wage & Hour Resources:

• California Wage and Hour Laws – All You Need to Know
• California Overtime Laws – What Every Worker Needs to Know
• California Final Paycheck Law – Rights and Obligations for Employees