Are employers allowed to pay employees differently based on their experience?

In the state of California, employers are allowed to pay different wages to employees based on their experience, but it is limited. California’s minimum wage law, Title 8 Section 1182.12, states that all employees are to be paid the current minimum wage rate for all hours worked, except when a higher rate is allowed. Employers are allowed to pay employees differently based on their experience, such as paying a higher rate for employees with more experience or training. However, employers must ensure any different rate of pay is not discriminatory in any way, meaning that the higher rate of pay must be strictly related to experience, skills, and training, and not based on any other factors such as race, gender, religion, or sexual orientation. Additionally, employers are prohibited from offering lower wages because a worker is a recent immigrant or is under 18 years old. It is important to note that wage differentials must be clearly outlined in employee contracts, job descriptions, and wage notices. Employers must also follow California’s laws on wage and hour practices, such as keeping accurate records of hours worked, paying overtime when applicable, and providing meal and rest breaks as required. Employees who believe they are being paid illegally or unfairly should contact the California Department of Industrial Relations or their local labor commissioner to receive guidance.

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Are employers allowed to pay employees differently based on their experience?

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