Job seekers in California can now see salary ranges for open positions in companies with 15 or more employees.
Gov. Gavin Newsom signed into law Senate Bill 1162intended to increase transparency regarding compensation for both potential and current employees.
Under existing state law, employers must, upon reasonable request, provide pay scales for positions for which applicants are applying.
New law requires employers If requested, “provide employees with pay scales for the positions in which they are currently employed.” Employers must also keep records of jobs, titles, and corresponding salary ranges.
In addition, businesses that employ 100 or more workers as W-2 contractors through third-party staffing agencies are required to submit payroll data reports to the California Department of Civil Rights. The report must include a gender, race, and ethnic breakdown of the information.
If 15 or more employers “engage with third parties to announce, post, publish, or otherwise make known job openings,” the list must also include pay scales for open positions .
The California Employment Lawyers Association, in support of SB 1162, wrote: los angeles times“Thus, employees, and often employers themselves, especially in large companies, may not be gender or race aware.[based] The wage gap that exists in their workforce. ”
The California Legislature has made other efforts to promote public understanding of compensation.
Previously passed SB 973 required companies with more than 100 employees to submit wage data to the State of California. Department of Fair Employment and Housing.
Payroll transparency laws have already been adopted in several states.
As of January 2021, Colorado requires employers to list a salary range in all job advertisements.
Nevada employers are required by law to disclose salary ranges at the initial interview, even if the applicant didn’t ask for it. In Connecticut, employers are required to provide a salary range if an applicant requests it or if the job offer is extended. In Washington, employers must tell potential employees the minimum and maximum salaries for the job if the employee inquires after the offer. CNBC.
“California has some of the strongest equal pay laws in the country, but we will never stop working to ensure that all women in the state are paid what they deserve and are treated equally in all areas of life. .” Said Newsom to sign the bill.
The new Salary Disclosure Act will go into effect on January 1, 2023, affecting an estimated 200,000 companies.