Starting on Jan. 1, employers with at least 15 workers will have to include pay ranges in job postings.
per year for a future compensation analyst in Davis. If companies aren’t adding ranges, people can sue or file a complaint with the Labor Commissioner’s Office, which can issue a penalty of $100 to $10,000 per violation. Companies that don’t have pay ranges in job postings won’t get penalized for their first violation, so long as they add the information.
Businesses are about to have their pay scrutinized by job candidates and employees, said Wallace, the compensation platform company co-founder. “You better make sure that you have a really strong answer for why an employee is paid less,” than the posted range for a similar-looking job, she said. The new California law is uncovering that a lot of organizations have been operating without pay bands, Wallace said.
“It’s really ambiguous,” said Rad, the lawyer. “A lot of attorneys that work in this sphere ask themselves: ‘You know, if the range is too wide, then does that defeat the purpose of pay transparency?’”CalMatters reached out to the Labor Commissioner’s office, which is charged with enforcing the payscale component of the law. The office didn’t make anyone available to be interviewed, and did respond to a detailed list of questions about how the law will be interpreted.
Pay ranges are set by the state’s human resources agency, CalHR, and are influenced by bargaining with unions, said Adam Romero, deputy director of executive programs at California’s Civil Rights Department. Those two positions are “very senior,” and most roles don’t have pay ranges that wide, Romero said.The second major component of the new law is that businesses with 100 or more employees will have to start reporting more detailed data on what they pay workers to the state.
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