California Labor Commissioner Points FAQs Clarifying Pay Transparency Legislation

As we beforehand reported right here final fall, California enacted a pay transparency legislation (SB 1162) requiring employers with 15 or extra staff to reveal pay scales in job postings starting January 1, 2023. The Labor Commissioner lately issued steerage within the type of FAQs to deal with a few of the unanswered questions relating to the interpretation and enforcement of the California Equal Pay Act.

The legislation expands pay knowledge reporting necessities for California employers with 100 or extra staff, and requires employers with 15 or extra staff to incorporate the “pay scale” for a place in any job posting. Nonetheless, the legislation is silent on some key points, comparable to: (1) the way to decide the 15 worker threshold for protection; (2) the way to calculate the “pay scale;” and (3) whether or not positions that aren’t required to be stuffed by a California worker are lined (i.e., distant positions which will, or might not, be carried out exterior of California). The FAQs present useful steerage to deal with these questions.

The Labor Commissioner’s FAQs make clear the next:

  • Figuring out 15 Worker Restrict: The Labor Commissioner’s steerage explains which people have to be counted to find out whether or not an employer is roofed beneath the legislation and, due to this fact, should disclose pay scales in job postings. Particularly, the legislation applies when (1) an employer reaches 15 staff at any level in a pay interval, and (2) one worker is at the moment positioned in California. When calculating the 15-employee minimal threshold, “bona fide” unbiased contractors are excluded, whereas exempt staff, part-time staff, minors, and new hires are included.
  • Defining Pay Scale: The legislation defines “pay scale” because the wage or hourly wage vary that the employer moderately expects to pay for the place. The FAQs make clear that “pay scale” excludes bonuses, commissions, suggestions, or different advantages. Nonetheless, if a place’s wage or hourly wage relies in entire or partially on both fee or a chunk fee, then the fee vary or piece fee the employer moderately expects to pay for the place should even be included within the job posting.
  • Posting Necessities: The steerage offers extra clarification relating to when and the way the brand new “pay scale” info is required to be disclosed. The FAQs clarify that the “pay scale” have to be included inside a job posting if the place “might ever be stuffed in California,” both in-person or remotely. The wage data have to be displayed within the job posting itself, and can’t be included by way of a hyperlink or QR code.

In gentle of the Labor Commissioner’s FAQs, California employers ought to totally evaluation their job postings to make sure compliance with the brand new pay transparency legislation and the Labor Commissioner’s steerage, and may seek the advice of with counsel previous to revising or posting new job positions in 2023.

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