California law dictates much of your relationship with your employees. Keeping track of updates and minor changes is a vital business process. For 2023, there are four important changes that can make a massive impact on your company.
Pay range publications
One of the challenges of getting adequate staff in a competitive labor market is salary expectations. Budgeting an appropriate salary to meet potential employees’ expectations takes time and effort. Now California will require companies to publish the range of salaries they’re willing to offer. Changing this piece of the talent acquisition process may decrease a great deal of stress for both management and prospects. However, this change can be a struggle for companies that do not standardize their payroll.
Some companies must provide pay data
Businesses with over 100 employees must make their payroll data available to the state, with breakdowns by race, ethnicity and sex. Reporting this data is expected to reveal a great deal of possible pay discrimination against protected classes. The hope is to help find more equity for employees. However, such a report may lead to significant litigation efforts.
Changes to leave law
There are two changes to the leave law. The most wide-ranging change will alter the state’s definition of a family member for those who may take time off to care for them. The current law allows employees to take up to 12 weeks off for a parent, spouse or child. Under the new law, employers and employees have more leeway to take time to care for more distant relatives.
Additionally, all employers with five or more employees must give unpaid bereavement leave. Employers must now offer up to 5 days of leave for employees who have worked at a business for more than 30 days.
Emergency situations and retaliation
The final new law protects those with a “reasonable belief” that their job site is dangerous and refuse to report. This is a response to many employees unconvinced of their workplaces’ commitment to safety in the wake of the COVID-19 pandemic.
How should you prepare?
While these changes may have a large impact on your business, it is equally likely the challenges you face will be minor. An attorney can help you review your company’s employment practices to ensure compliance or identify areas of concern.