Will it soon be time for California employers to collect and report more pay data? If Senate Bill 1162 (SB 1162) passes, the answer is “yes.” Introduced in the California Senate in February 2022, SB 1162, if passed, would lead to considerable changes to California’s pay transparency laws and affect both pay data reporting and proactive wage range disclosure.
In September 2020, California passed legislation that required employers with 100 or more employees to report annually to the Equal Employment Opportunity Commission (EEOC) the number of their employees by sex, race, and ethnicity in each of the 10 EEO-1 Job Categories.
SB 1162 proposes to amend and expand the current law in several ways. First, the bill would remove the provision of existing law that permits an employer to submit an EEO-1 in lieu of a pay data report. Private employers with 100 or more employees hired through labor contractors would be required to submit to the Department of Fair Employment and Housing (DFEH) pay data reports (distinct from EEO-1 reports), which would include average and median hourly rates for employees in specific positions, categorized by their race, ethnicity, and sex. These pay data reports would be required for workers in the following positions: (1) executive or senior-level officials and managers; (2) first or mid-level officials and managers; (3) professionals; (4) technicians; (5) sales workers; (6) administrative support workers; (7) craft workers; (8) operatives; (9)...
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