The outcomes of California’s pay transparency

On Behalf of | Apr 19, 2023 | Employment Law |

In January, businesses in California underwent a shift in how talent acquisition and hiring work. The law requires all new job postings to include a salary range for the position. Additionally, current employees may request the pay range for their positions.

Why is this such a shift?

Prior to these regulations, no business had to disclose any pay information at all. In fact, such payment information was kept private under most circumstances. Even still, many company cultures foster social pressures not to disclose pay between employees.

However, employers cannot forbid pay information disclosures between employees, and these new laws take the transparency of pay a step further. By publishing payment information, employees and prospective employees can pursue a more fair and higher pay. The hope is that this will allow for pay disparities between groups to even out.

How is it going?

At this time, the new law has only been in effect for four months. It is far too early to say if the hoped-for outcomes are coming to be or if new problems have begun. Additionally, we still don’t yet have much data on what impact this has on employment.

The risks of non-compliance

Aside from the newness and uncertainty, it is on employers to ensure that they’re hiring practices meet state standards and laws. If they do not, they may face significant penalties ranging from $100 – $10,000 per violation.

While that range of penalty is significant, it all depends on the circumstances surrounding the violation. No amount of good faith can get around the refusal of a request for information. Your company still has rights, and you deserve to find help to keep your business secure.


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