California has passed a new law that expands salary disclosure and pays data reporting requirements. Beginning in 2023, California employers will have to disclose the pay scale for positions to applicants and employees. This information must also be included in job postings. If you're in California and on the market for a job, it's important to understand these changes. Our Sacramento employment law discusses what you need to know about the new law and what it means to the job market.
What Exactly Does California SB 1162 Require?
The California law (2022 Ch. 559, SB 1162) will require employers to provide salary information on job postings. This includes disclosing a position's minimum, midpoint, and maximum pay range and other relevant factors in determining compensation, such as seniority or certifications. Additionally, current employees must receive salary information for comparable positions upon request.
Why California Passed This Law
California's new law aims to increase transparency and close the gender pay gap. By including salary information in job postings, California employers can ensure that all applicants have access to the same information and are not disadvantaged due to their gender, race, or other protected characteristics. California is the first state to pass such a law, though other states are expected to follow suit soon.
What California Employees Need To Do
If you are an employee in California, staying informed about the new law and its requirements is essential. When applying for a job, check to ensure that salary information is disclosed on the posting. Additionally, if you're seeking a raise or promotion, you can request salary information for comparable positions from your employer.
What California Employers Need To Do
California employers should begin preparing for the new law now. Employers need to ensure that all job postings include the required salary information and update their policies to allow employees to request pay information for comparable positions upon request. California businesses must also evaluate any potential bias in their hiring and compensation practices and ensure they are not discriminating against applicants or employees.
By taking steps now to understand and comply with California's new salary disclosure and pay data reporting requirements, California employers can ensure they comply with the law when it takes effect on January 1st, 2023.
The Importance of Pay Transparency
Pay transparency is an integral part of California's commitment to equal pay. This new law ensures that all California employees can access salary information to make informed career decisions and negotiate a fair wage. It also helps employers promote diversity and inclusion in the workplace by providing applicants with information about pay scales for positions.
Have Questions? Law Office of Jeffrey D. Fulton Can Help
If you are a California employee looking for more information about California's new salary disclosure and pay data reporting requirements, Law Office of Jeffrey D. Fulton can help. Our California-based employment law attorneys can answer questions and provide guidance on how to comply with the new law. Contact us today to learn more.
Contact us by calling (916) 318-3388 or filling out our online contact form.