First- or mid-level officials and managers.Executive or senior-level officials and managers.The number of employees by race, ethnicity and sex in 10 job categories, based on a “snapshot” that counts all individuals employed in these categories during a single pay period of the employer’s choice between October 1 and December 31 of the reporting year.The pay data reports will be due annually on the second Wednesday in May, beginning on May 10, 2023, and must include data covering the prior calendar year (the “reporting year”). SB 1162 broadly expands these reporting obligations by requiring all private employers with 100 or more employees to submit pay data reports to the CRD, regardless of whether they are required to submit EEO-1 reports to the EEOC, and expanding the number of data categories those employers are obligated to report. Employers are required to include data on pay and hours worked by establishment, job category, sex, race and ethnicity. Requiring all employers to maintain records of job title and wage history for each employee for the duration of employment and three years after the end of employment so that the state’s labor commissioner – who is authorized to inspect these records – can “determine if there is still a pattern of wage discrepancy.”Ĭalifornia currently requires private employers with 100 or more employees, which are also required under federal law to file annual Employer Information Reports (EEO-1) with the Equal Employment Opportunity Commission (EEOC), to submit annual pay data reports to the state’s CRD.Requiring all employers to provide the pay scale for the position in which a current employee is employed, upon request.If the employer uses a third party to publish or post a job, they must provide the pay scale to that third party who must include it in the posting. Requiring employers with 15 or more employees to include the pay scale, defined as the “salary or hourly wage range that the employer reasonably expects to pay for the position,” in any job posting.The state also requires employers to provide the pay scale for a position to an applicant upon a reasonable request.Įffective January 1, 2023, SB 1162 will expand these requirements by: Like many other states, California currently prohibits employers from asking applicants about their salary history during the hiring process. We discuss the key requirements of the law below. Unlike other jurisdictions, however, California goes a step further to expand currently existing pay data reporting requirements to include reporting on mean and median pay data to “better identify gender and race-based pay disparities,” among other things. These jurisdictions include, but are not limited to, Washington (effective January 1, 2023), Colorado (currently in effect) and New York City (effective November 1, 2022). In enacting this law, California follows in the footsteps of several other jurisdictions and municipalities that have enacted similar legislation requiring pay ranges in job postings. The bill also requires employers to submit expanded annual pay data reports that include pay data on employees hired through labor contractors to the California Civil Rights Department (CRD) beginning May 10, 2023, and every second Wednesday in May annually thereafter. Gavin Newsom signed Senate Bill 1162, a broad pay transparency bill requiring employers to include pay ranges in all job advertisements effective January 1, 2023. Public hearing in the House Committee on Health Care & Wellness at 1:30 PM.įirst reading, referred to Health Care & Wellness.California’s Broad Pay Transparency Law Takes Effect Next Year Third reading, passed yeas, 96 nays, 0 absent, 0 excused, 2.Įxecutive action taken in the House Committee on Health Care & Wellness at 8:00 AM. Public hearing in the Senate Committee on Health & Long Term Care at 8:00 AM.įirst reading, referred to Health & Long Term Care. Passed to Rules Committee for second reading.Įxecutive action taken in the Senate Committee on Health & Long Term Care at 1:30 PM. Placed on second reading by Rules Committee. Third reading, passed yeas, 49 nays, 0 absent, 0 excused, 0.
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