{"id":358,"date":"2023-01-09T01:32:00","date_gmt":"2023-01-09T01:32:00","guid":{"rendered":"https:\/\/hrnetsourcedemo.com\/blog\/?p=358"},"modified":"2023-01-10T01:46:05","modified_gmt":"2023-01-10T01:46:05","slug":"complying-with-californias-new-pay-transparency-law-is-challenging","status":"publish","type":"post","link":"https:\/\/hrnetsourcedemo.com\/blog\/2023\/01\/09\/complying-with-californias-new-pay-transparency-law-is-challenging\/","title":{"rendered":"Complying with California\u2019s New Pay Transparency Law Is Challenging"},"content":{"rendered":"\n<p>California\u2019s new pay transparency law (SB 1162) took effect on January 1, 2023.&nbsp; It expands the requirement for pay range disclosure and pay data reporting.<\/p>\n\n\n\n<p>Some of the main provisions of the pay range disclosure include:<\/p>\n\n\n\n<ul><li>California employers with 15 or more employees must include a position\u2019s salary or hourly wage range in any internal or external job posting<\/li><li>Employers must provide the employees\u2019 position\u2019s salary or hourly wage range to those who request it<\/li><li>Employers must also provide the position\u2019s salary or hourly wage range upon request to external applicants seeking employment<\/li><li>Provides for a civil penalty of up to $10,000 per violation of its pay scale (wage range) disclosure and job posting requirements<\/li><\/ul>\n\n\n\n<p>Last year California passed a law that requires reporting numerical counts of employees by race, ethnicity and sex within each job category\u2019s pay band, on an annual basis.&nbsp; The reports were similar to the defunct EEO-1 Component 2 form. SB1162 expands this, requiring employers to report the median and mean hourly rate, broken down by race, ethnicity, and sex, for each job category.<\/p>\n\n\n\n<p>The annual reporting requirement applies to employers with 100 or more U.S. employees with at least one employee in California.&nbsp; In addition, employers who have retained at least 100 individuals through labor contractors the prior calendar year must similarly report data on the contractors.<\/p>\n\n\n\n<p>The state of California created a template for last year\u2019s reporting requirement.&nbsp; As of January 1, 2023, they have not published a revised template for 2023.&nbsp; Nonetheless, the 2023 reports are due on or before the second Wednesday of May 2023 (and on or before the second Wednesday of May of each year thereafter).<\/p>\n\n\n\n<p>The usefulness of data on median and mean hourly rates will be limited. The mean (averages) does not account for differences in experience, education and performance.&nbsp; Also, jobs having diverse skill requirements and market value are lumped into the same category.&nbsp; For example, junior accountants are in the same category as senior engineers. Facilities managers are in the same category as engineering managers.&nbsp; &nbsp;<\/p>\n\n\n\n<p>For more information see:<\/p>\n\n\n\n<ul><li>California Legislative Information: <a href=\"https:\/\/leginfo.legislature.ca.gov\/faces\/billCompareClient.xhtml?bill_id=202120220SB1162&amp;showamends=false\">https:\/\/leginfo.legislature.ca.gov\/faces\/billCompareClient.xhtml?bill_id=202120220SB1162&amp;showamends=false<\/a><\/li><li>HR Executive: <a href=\"https:\/\/hrexecutive.com\/what-californias-pay-transparency-law-may-mean-for-you\/\">https:\/\/hrexecutive.com\/what-californias-pay-transparency-law-may-mean-for-you\/<\/a><\/li><li>The California Pay Data portal: <a href=\"https:\/\/calcivilrights.ca.gov\/paydatareporting\/\">https:\/\/calcivilrights.ca.gov\/paydatareporting\/<\/a><\/li><\/ul>\n\n\n\n<!--more-->\n","protected":false},"excerpt":{"rendered":"<p>California\u2019s new pay transparency law (SB 1162) took effect on January 1, [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[67,47,17],"tags":[8,72,19],"_links":{"self":[{"href":"https:\/\/hrnetsourcedemo.com\/blog\/wp-json\/wp\/v2\/posts\/358"}],"collection":[{"href":"https:\/\/hrnetsourcedemo.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/hrnetsourcedemo.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/hrnetsourcedemo.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/hrnetsourcedemo.com\/blog\/wp-json\/wp\/v2\/comments?post=358"}],"version-history":[{"count":1,"href":"https:\/\/hrnetsourcedemo.com\/blog\/wp-json\/wp\/v2\/posts\/358\/revisions"}],"predecessor-version":[{"id":359,"href":"https:\/\/hrnetsourcedemo.com\/blog\/wp-json\/wp\/v2\/posts\/358\/revisions\/359"}],"wp:attachment":[{"href":"https:\/\/hrnetsourcedemo.com\/blog\/wp-json\/wp\/v2\/media?parent=358"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/hrnetsourcedemo.com\/blog\/wp-json\/wp\/v2\/categories?post=358"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/hrnetsourcedemo.com\/blog\/wp-json\/wp\/v2\/tags?post=358"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}