A new law that goes into effect next year could shake up salary structures at companies across California, empowering workers and calling out businesses that unfairly pay lower salaries to women or workers of color.
Starting Jan. 1, Senate Bill 1162 requires employers to list salary ranges for all job postings, and to provide that information to existing workers upon request — allowing employees to get a better sense of what their peers are earning, and how their own wages compare.
Similar laws are growing in popularity across the country, and have passed in places, including New York City, Colorado and Connecticut. Here’s what the new law means to California employers and employees:
What’s different under this new law?
The biggest change you’re likely to see is that starting Jan. 1, every job posting you see on Indeed, LinkedIn or anywhere else should include a salary range for the position — that is, if the company hiring has at least 15 employees. Furthermore, if you ask your boss for a salary range for your current role, they are required to comply.
Employers with 100 or more employees already have to compile reports on what they pay, which are submitted to the state once a year. Under the new law, those reports will become more detailed. Now, employers will have to include median and mean hourly rates broken down by race, ethnicity and sex.
Why?
The goal is to force employers to be more transparent about what they pay, ideally helping to close gender and race-based...
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