January 15, 2026 | Sacramento, CA — MedLegalNews.com — California continues to lead the nation in workplace equity reforms with the passage of SB 642 (Limón), legislation that significantly expands state equal pay laws. The law broadens key definitions, extends the statute of limitations for wage discrimination claims, and clarifies categories of unlawful pay practices.
The legislation reflects California’s ongoing commitment to closing wage gaps, promoting transparency, and protecting employees from discriminatory pay practices. Employers, HR professionals, and legal compliance teams must now carefully review compensation structures to ensure compliance.
Key Provisions of SB 642
SB 642 equal pay enforcement introduces several critical updates:
Broader Definitions of Wage Discrimination
The law expands what constitutes pay discrimination, including base salary, bonuses, promotions, benefits, and other forms of compensation. This change helps ensure that all forms of unequal pay based on gender, race, or other protected characteristics are clearly prohibited.
Extended Statute of Limitations
SB 642 allows employees to file claims within three years, up from two, and permits recovery of up to six years of lost wages. This provision significantly increases the potential liability for employers who have engaged in discriminatory pay practices over time.
Clarification of Unlawful Pay Practices
The legislation specifies pay practices that violate California law, including:
- Paying employees differently for substantially similar work based on protected characteristics
- Discriminatory bonuses, promotions, or other incentive structures
- Policies that inadvertently perpetuate historical wage gaps
Focus on Enforcement and Compliance
The law enhances the California Department of Fair Employment and Housing (DFEH)’s authority to investigate complaints, enforce penalties, and ensure equitable pay across all sectors.
Why SB 642 Matters for Employers
Employers in California now face increased scrutiny and potential liability for pay practices that may have been overlooked in the past. Legal and HR teams should:
- Conduct internal pay audits to identify gaps and ensure equitable pay structures
- Update job descriptions, compensation bands, and promotion policies
- Train managers and HR staff on updated compliance requirements and legal risks
- Review bonus and incentive programs for potential discriminatory effects
Failing to adapt could result in costly lawsuits, DFEH investigations, and reputational damage.
Impact on Employees and Workplace Equity
SB 642 empowers employees to challenge pay disparities and recover significant back wages. By expanding protections and clarifying enforcement mechanisms, the law aims to:
- Promote transparency in compensation policies
- Address systemic wage gaps affecting women, people of color, and other protected groups
- Encourage employers to adopt proactive equity measures
The law aligns with California’s broader initiatives to foster inclusive and equitable workplaces, sending a strong signal that pay discrimination will not be tolerated.
For official guidance and compliance resources, visit the California Department of Fair Employment and Housing (DFEH).
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FAQs: About SB 642 Equal Pay Enforcement
What is SB 642?
SB 642 is California legislation that strengthens equal pay enforcement by expanding definitions of wage discrimination, extending the statute of limitations, and clarifying unlawful pay practices.
Who is affected by SB 642?
All California employers, particularly those with employees covered by state equal pay laws, must comply. This includes private, public, and nonprofit organizations.
How does SB 642 extend the statute of limitations?
Employees can now file claims within three years of a discriminatory pay practice and recover lost wages for up to six years.
What steps should employers take to comply?
Employers should conduct pay audits, review promotion and bonus policies, update HR practices, and train management to prevent pay discrimination.