Labor Commissioner Issues Pay Transparency FAQs Providing Clarity to Employers

As we previously mentioned listed here, commencing January 1, 2023, employers with at least 15 workforce will be required to contain a pay back scale with any task posting. If employers use third-social gathering providers to put up work, they will will need to present these 3rd parties with the pay scale facts so that it can be incorporated in the occupation submitting. Whilst businesses do not have to volunteer these types of facts to current workforce without the need of prompting, these employees are entitled to the very same pay back assortment for their own positions if requested. The need to deliver fork out ranges to existing workers upon ask for applies to all businesses, irrespective of dimension.  

When SB 1162 (i.e. the pay transparency invoice) was enacted, many companies were being left with unanswered questions about the particulars of the pay back scales they would be anticipated to provide beginning January 1^st. The Labor Commissioner has given that issued an expansive established of FAQs in search of to provide clarification for both equally staff members and businesses on fork out transparency. The FAQs can be discovered listed here.

The FAQs make apparent that the genuine fork out scale should be included in the career posting itself, it can’t be furnished by way of a independently accessed link or QR code. The FAQs also clarify that the pay scale have to be supplied for any posture that “may at any time be filled in California, both in-human being or remotely.”

The Labor Commissioner has more furnished clarification as to what is regarded a section of the spend scale. The law defines “pay scale” as “the wage or hourly wage that the employer reasonably expects to fork out for the situation.” The Labor Commissioner has now indicated in the FAQs that “[i]f the position’s hourly or income wage is centered on a piece price or fee then the piece rate or commission assortment the employer fairly expects to spend for the situation need to be incorporated in the position putting up.” Having said that, the spend scale does not need to involve bonuses, ideas, or other rewards.

Businesses must assessment the FAQs to be certain they have appropriately met the spend transparency needs that took effect January 1^st. Further more, in light of the emphasis on equal pay back and shell out transparency, companies really should get the job done with authorized counsel to audit their pay out ranges to assess whether or not any discrepancies exist by race, ethnicity, or gender and if any discrepancies are found, get ways to address and proper these discrepancies.

Katie Collins and Meagan Bainbridge focus on this subject even further in an episode of California Employment Information, here.