California’s updated pay transparency for employers (SB 1162) went into effect on January 1, 2023. In short, this bill expands upon the framework of the California Equal Pay Act and employees’ rights to pay information. This bill requires California employers with 15 or more employees to post salary scales and ranges for job postings and upon request, provide the pay scale to current employees and applicants applying for employment. “Pay Scale” means salary or hourly wage range the employer reasonably expects to pay for the position.
Plus, all private employers with 100 or more employees will be required to file an annual pay data report or Employer Information Report (EEO-1), to the California Civil Rights Department on or before March 31st of each year. The pay data reports must include the median and mean hourly rate for each combination of race, ethnicity, and sex within each job category. Lastly, employers are required to maintain job title and wage history records for each employee for the duration of the employment plus three years after the end of the employment.
Pay Transparency Updates:
- This applies to employers with 15 or more W2 employees – counts for both full-time and part-time.
- Must include “pay scale” for the position on any job posting.
- This requirement also extends to any third-party company hired by an employer to announce or publish an open position.
- “Pay Scale” means what the employer would reasonably expect to pay for the position.
- Must provide position pay scale to applicants upon request (not only after an interview). This applies to all employers, not just employers with 15 or more employees.
- Must provide to employees for their position only.
- If your organization has less than 15 employees, it’s not a requirement to post the pay scale on the job posting, however, if the applicant or employee requests it, it must be provided to them.
If you have any questions regarding this new employment law and how to implement it within your house of worship or nonprofit, Church & Casualty customers can contact Erick Becker at AskHR@ccia.com. Erick is part of CCIA’s Advisory Team, our dedicated team of professionals that assist our customers with free services such as HR, Legal, Financial, and Security.