A proposed bill in California would require all employers in the state to provide pay scales for open positions in job postings and publish online reports on how much certain groups of employees earn in salary. If passed, Senate Bill 1162 would be one of the strongest pay transparency laws in the United States.
If SB 1162 becomes law, human resources staff must implement a compliance system to ensure job ads display accurate pay ranges, as well as document each employee’s pay history throughout their employment, including up to three years after they leave the company. The legislation is designed to help employers detect and prevent discriminatory pay patterns, especially along racial and gender lines.
The State of New York recently passed a similar bill that would demand employers with at least four employees to include pay scales in their job postings. In New York City, a similar law becomes effective on November 1 and a second or subsequent violation of this law is punishable by a civil fine of up to $250,000.
SB 1162 would require private employers with a minimum of 100 employees to provide a pay data report to California’s Fair Employment and Housing Department. The report must include the race, ethnicity, and sex of all employees—from executive and senior-level officials to service workers—and whose annual salaries fall within each of the pay bands in the Occupational Employment Statistics survey provided by the U.S. Bureau of Labor Statistics.
If an employer has multiple establishments, it is required to submit a report for each workplace. Failure to provide an annual report could be punishable by a $100 fine per worker.
These annual reports will be published by the state on a website for public view.
If you are experiencing an employment law issue in Northern or Central California, call Polaris Law Group at (888) 796-4010 or complete our online contact form today to schedule a consultation with our experienced legal team.