Each year, the California Legislature’s hard work to pass new bills often creates new obligations or refined directives for employers. These changes, which can present new challenges, serve as a reminder to refresh and review current practices. Two specific bills that passed and took effect, in part, at the start of the year, directly impact pay-related regulations and specific reporting.
Senate Bill 642
Senate Bill (S.B.) 642 amended the state’s existing equal pay law requirements, including by (1) revising the definition of “pay scale”; (2) expanding the statute of limitations for pay equity claims; (3) extending the time period for lost wages during the time violation; and (4) expanding the definitions of “sex” and “wages” under California’s Equal Pay Act.
Revised Definition of “Pay Scale”
California law requires employers to provide pay scale information to an employment applicant. Employers with 15 or more employees are also required to include a position’s pay scale in any job posting. S.B. 642 revised the definition of pay scale to mean a “good faith estimate of the salary or hourly wage range that the employer reasonably expects to pay for the position upon hire.” This revision indicates that rather than providing a general pay scale for the position, an employer should consider providing the applicant with the salary or wage range expected on the employee’s first day of employment. With this revised definition, including expected pay ranges in job postings or...
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