New California law requires job postings to include salary ranges
LOS ANGELES - Governor Gavin Newsom on Tuesday signed a new law making it mandatory for California employers to post salary ranges for job listings in an effort to narrow the gender and racial gap.
Under SB-1162, employers with 15 or more workers will be required to include pay ranges in job postings, and those with 100 or more employees or contractors will have to report median and mean hourly pay rates by job category and "each combination of race, ethnicity, and sex."
"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," said Newsom. "These measures bring new transparency to tackle pay gaps, end discriminatory pricing of products based on gender and expand supports for survivors of abuse and assault. I thank the Legislative Women’s Caucus for their leadership and partnership in building a more equitable California for all."
In addition to requiring salary ranges, the new law says employers of all sizes have to provide the salary range to an employee for the position they hold if they ask for it. This means existing employees can check to see where their salary falls within their own company and bring up any inconsistencies in pay and negotiate or ask for adjustment.
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The law also will require companies with 100 or more workers who are hired through third-party staffing agencies to submit pay data reports to the California Civil Rights Agency for those workers, broken down by gender, race and ethnicity.
The law builds on a measure Newsom signed in 2020 to identify patterns of wage disparities through mandated statewide pay data reporting.
Nationally, the U.S. Census Bureau estimates women earn 82 cents for every dollar earned by a man, and the gap widens for many women of color.
In California, women are paid roughly 88 cents for every dollar paid to a man, with the gap increasing for women of color. Women in the state lose a combined total of $87 billion to the pay gap every year, according to the National Partnership for Women and Families.
The law goes into effect in 2023.