Employment lawyer breaks down California's pay transparency law, urges preparation to begin ASAP
Have you begun compiling your pay data report for the California Civil Rights Department?
Sure, it’s not due until May 10, but depending on the size of your company, you’ll want to get started right away considering all the new requirements under SB 1162, which went into effect at the dawn of 2023.
“This is a big deal,” says employment lawyer Robert Nichols, partner at national law firm Bracewell LLP. “It’s intended to achieve better pay equity. The notion is that historically, women and certain racial and ethnic groups have been underpaid. Those disparities perpetuate themselves, so the disclosure will help to alleviate those disparities over time.”
The new law expands upon the framework of the California Equal Pay Act, which requires employers in the state to disclose the pay range for a job if an applicant asks for it after an initial interview, as well as Senate Bill 973, in which private employers with 100 or more employees are required to submit a pay data report to the California Department of Fair Employment and Housing (DFEH) that includes the number of employees by race, ethnicity and sex.
Under the new California law, employers in the state with at least 15 workers must include the hourly rate or salary range on job listings, even when using a third party. All employers, regardless of size, must also provide a salary range for a current employee’s position at the...
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