California Labor Commissioner’s Workplace Solutions A Few Key Questions on Pay Transparency (US)

Simply in time for the brand new 12 months, California employers lastly acquired some readability about their obligations beneath California’s new pay transparency regulation, which works into impact on January 1, 2023. As mentioned in additional element right here, SB 1162 not solely expands pay information reporting necessities for California employers with 100 or extra staff, however the brand new regulation additionally requires employers with 15 or extra staff to incorporate the pay scale for a place in any job posting. Because the deadline for compliance grew close to, many employers questioned whether or not and the way the brand new regulation may affect their workforce. Fortunately, the California Labor Commissioner has answered a few of these questions as they relate to disclosing “pay scales” to candidates and present staff:

  • Which employers are lined? Employers with 15 or extra staff are lined by the brand new regulation.  Whether or not or not an employer meets the “15 or extra staff” threshold now aligns with the Labor Commissioner’s technique for counting staff for the aim of 2022 COVID-19 Supplemental Paid Sick Go away and minimal wage charges. In different phrases, the 15-employee threshold applies when an employer reaches 15 staff at any level in a pay interval. Importantly, an employer with 15 or extra staff want have just one worker presently situated in California to ensure that the regulation to use. Whereas bone fide impartial contractors are excluded when counting staff, exempt staff, part-time staff, minors, and new hires are all included when figuring out whether or not this threshold is met.
  • How is a “Pay Scale” decided? The definition of “Pay Scale” has been clarified because the wage or hourly wage vary that the employer fairly expects to pay for the place, excluding bonuses, commissions, ideas, or different advantages. Nevertheless, if a place’s wage or hourly wage relies on both fee or a chunk fee, then the fee vary or piece fee the employer fairly expects to pay for the place should even be included within the job posting.
  • Which postings required pay scale disclosures? The Labor Commissioner’s Workplace has additionally clarified that the “pay scale” should be included inside a job posting if the place might ever be crammed in California, both in-person or remotely.
  • How should the knowledge be offered on the posting? The “pay scale” info should visibly seem within the job posting itself (i.e. no hyperlink or QR code could also be used as an alternative choice to together with the wage info within the job posting).
  • What data should be stored? An employer should preserve data of job title and wage fee historical past for every worker all through the employment plus three years after the tip of the employment. These data are topic to inspection by the Labor Commissioner to find out if there’s a sample of wage discrepancy.
  • What are the potential penalties of non-compliance? Complaints regarding pay transparency violations could also be introduced both to the Labor Commissioner or in a civil motion for injunctive or different aid in courtroom.  An employer present in violation of the regulation could also be topic to civil penalties of at least $100 and not more than $10,000 per violation.  Employers are prohibited from retaliating in opposition to an worker for any motion taken by the worker to invoke or help in any method with enforcement of the Act.

Full Textual content of the Up to date FAQs could be discovered right here (particularly FAQ Nos. 29-40). Though this new info supplies some extra readability for employers, different areas of the brand new regulation (corresponding to what constitutes a “affordable” pay vary for any given place) have but to be examined. As well as, multi-state employers must also keep in mind pay transparency legal guidelines in Colorado, Connecticut, Maryland, New York, New Jersey, Nevada, Ohio, Rhode Island, and Washington when getting ready to fill open positions.

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