Pay Transparency

California law currently prohibits employers from asking job applicants about their salary history and requires employers to provide job applicants with pay scale information upon request. California law also currently requires employers with 100 or more employees to file an annual pay data report with the California Civil Rights Department (“CRD”) that contains information about the race, ethnicity, and sex of their workforce in various job categories. This allows the CRD to "police" California big business to ensure they are not engaged in discriminatory practices, knowingly or not.

Beginning January 1, 2022, a new "pay transparency" requirements arise: (1) employers with 15 or more employees will now be required to include a pay scale in all job postings; (2) all employers will be required to disclose to their existing employees, upon request, a pay scale for their positions; and (3) employers with 100 or more employees will be required to comply with new pay data reporting requirements and submit those reports to the CRD.

The new law will allow greater access to pay information, which can be used for a host of purposes, such as comparing salaries of men vs. women. The requirement businesses provide data about the race, ethnicity, and sex of their workforce will support the CRD and related government agencies in working with big business to ensure an open playing field for females and minorities in the workplace.

Please contact Christopher Taylor, Esq. should you have any questions about pay disparity or any employment issue. He can be reached at (626) 219-6008.