Governor Gavin Newsom signed Senate Bill No. 1162, which expands current pay data reporting requirements, with the goal of helping to better identify gender and race-based pay disparities. The bill also requires employers to make salary ranges available to applicants and employees. These new requirements take effect January 1, 2023.
Pay Data Reporting
California currently requires employers with 100 or more employees to submit annual pay data reports. The new regulations expand these reporting obligations by requiring employers to also provide median and mean hourly rates within each job category, by race, ethnicity, and sex. The same pay data must be provided in a separate pay data report for employees hired through a labor contractor (i.e., staffing agency) during the prior year. The bill states the labor contractors are responsible for providing the necessary pay data to employers. The expanded pay data report and new labor contractor report are both due May 10, 2023.
Other Requirements
Employers with 15 or more employees are required to include the pay scale in each job posting. “Pay scale” is defined as the salary or hourly wage range that the employer reasonably expects to pay for the position. If an employee asks, employers are required to provide the pay scale for the employee’s current position.
Employers are required to maintain records of job title and wage rate history for each employee during their employment and three years after their employment has ended. Employers cannot ask about or use an applicant’s salary history as a factor in hiring or compensation decisions. Employees may file a written complaint with the Labor Commissioner within one year of learning about a violation.
The State of California has not yet updated the Pay Report website or provided all the details about these requirements, but if your Maly Consultant files the government reporting for your organization, we will file the California Pay Report based on these new requirements going forward.
