CA SB1063

Prohibits employers from paying employees at lower wage rates than employees of another race or ethnicity for substantially similar work, when viewed as a composite of skill, effort, and responsibility performed under similar working conditions.

Allows employers to justify wage differentials based on seniority systems, merit systems, production-based earnings systems, or other bona fide factors unrelated to race or ethnicity, provided each factor is applied reasonably and accounts for the entire wage differential.

Establishes that prior salary alone cannot justify wage disparities and provides employees the right to discuss wages without employer retaliation.

Authorizes employees to recover unpaid wages plus interest, an equal amount as liquidated damages, and attorney's fees through civil action, with a two-year statute of limitations (three years for willful violations).

Makes it a misdemeanor punishable by up to $10,000 fine and/or six months imprisonment for employers who willfully pay wages based on race or ethnicity or reduce wages to comply with this requirement.