Let’s not get too far into the year without reviewing your compliance with California’s newest pay data reporting and pay transparency requirements.
Starting January 1, 2023:
- All California employers will have to provide the salary range to an employee for the position they currently hold if the employee requests it;
- California employers with 15 or more employees will be required to disclose pay ranges on ads for every job that will be done in California. That’s everywhere – LinkedIn, indeed.com or wherever you post job openings;
- California employers of 100 or more employees and/or 100 or more workers hired through labor contractors must report pay and hours-worked data by establishment, job category, sex, race, and ethnicity to the Civil Rights Department (CRD) annually.
So here’s what to do right now:
Make sure every position at your business has written salary ranges and develop a process for employees who want to know this information (i.e. go to HR, your direct supervisor, etc.)
Review all current job postings and make sure salary ranges are included. (Although the law requires this for employers with 15+ employees, we recommend all businesses do this to get this best possible candidates).
Work with your payroll company and make sure the information for item #3 is complete and up-to-date. Reporting is due on May 10, 2023.
It’s actually a pretty easy law to follow and, in most cases, require initial work but not a great deal of extra time after that.
That’s not the problem. The problem for lots of employers is how to deal with it when every employee can go on indeed.com and find out how much you expect to be paying new employees – from the CFO right down to their co-worker.
It’s a cultural shift and it’s going to cause real problems unless leadership starts taking action today.
Article Written by Eric Swenson,
CEO & Founder of RSJ/Swenson Companies
Symmetry HR Outsourcing & Tanzanite Leadership Development
P.S. Start preparing now and, as always, reach out to us, or Eric, with questions or concerns. For his additional thoughts on how to go from privacy to transparency, click the following:
Letter to Leaders: How To Be Transparent About Pay Without Destabilizing Your Company