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California companies must share salary ranges with employees, potential hires under new law

Sacramento Bee 9/27/2022 Lindsey Holden, The Sacramento Bee

Most California employers will soon be required to share salary ranges with potential hires as part of statewide effort to promote pay equity among workers.

Gov. Gavin Newsom on Tuesday signed a bill from Sen. Monique Limón, D-Santa Barbara, that will compel firms with 15 or more workers to include pay scales in job postings and provide them to employees upon request.

Senate Bill 1162 fines companies that fail to comply with the new pay scale requirements. It can also impose fines for failing to submit demographic pay data to the state.

“California has the strongest equal pay laws in the nation, but we’re not letting up on our work to ensure all women in our state are paid their due and treated equally in all spheres of life,” Newsom said in a news release.

Limón’s bill originally included a provision that would have required the Department of Fair Housing and Employment to publish pay data reports for all private companies with 250 or more employees.

Companies with 100 or more workers must submit pay data reports to the state with information about employees’ race and ethnicity, sex, salary, hours worked and job category. The state publishes the overall results of those reports, but Limón’s bill would have made each company’s results public.

However, the Assembly Appropriations Committee removed that provision from the bill in August as part of a Suspense File hearing, when lawmakers can kill or amend measures without public discussion.

“At a time when women, families and people of color need the most support, equal pay for equal work is one step closer to becoming a reality in California,” Limón tweeted after SB 1162 made it through the committee. “I’m disappointed that #SB1162 is moving forward without full pay transparency but rest assured this fight is far from over.”

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