Effective January 1, 2023, California public and private employers with 15 or more employees must include pay ranges in all their job postings <<Senate Bill 1162.>> Although the bill is broad here are a few key takeaways you should be aware of:
- The Bill defines pay scale as “salary or hourly wage range that the employer reasonably expects to pay for the position.” The bill does not address bonuses, commissions or benefits.
- The law applies to all employers with at least one employee based in California, regardless of location of company headquarters.
- All employers are to provide pay scale information for the position in which a current employee is employed, upon request by an employee.
- All employers will be required to maintain records of job descriptions and wage history for employees while they are employed and for three years after employment.
- By May 10, 2023 Companies with 100 or more employees (or 100 or more employees hired through labor contractors, such as staffing agencies) must submit pay data reports to the California Civil Rights Department annually, which includes data on pay and hours worked by establishment, job category, sex, race and ethnicity.
- Companies that violate these requirements may be subject to civil penalties of $100 to $10,000 per violation and other legal action.
Here is what employers should start preparing to do to comply with the new law:
- Determine the salary ranges for existing positions.
- Consider conducting a privileged pay equity audit and make any related pay adjustments for any discrepancies.
- Ensure any records maintenance policies are updated to comply with the law’s record keeping requirements.
- If you have a multistate operation, pay attention to similar pay transparency laws currently in effect, or that will soon take effect.
As always, The Mitzel Group is here to help your Company comply with this new requirement and guide you through best practices with your job advertisements. Please contact us to schedule a strategy meeting today.
