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California passes new law that will require companies to post salary ranges on job postings

Posting time:2023-02-05 07:59:34

California passes new law that will require companies to post salary ranges on job postings

California lawmakers passed legislation on Tuesday that would require all employers that operate or recruit in the state to post salary ranges on all job postings. The law would also require California-based companies with more than 100 employees to show their median gender and racial pay gaps, the first for any U.S. state. Data map The bill goes to Governor Gavin Newsom, who has until September 30 to sign or veto it. He also did not take a position and did not immediately respond to a request for comment. If he signs the law, it would affect some of the largest U.S. companies, including Meta, Alphabet and Walt Disney. In recent years, more states have passed a series of transparency laws to combat stubborn gender and racial pay gaps. According to the U.S. Census Bureau, women working full-time earn about 83 percent of men's earnings -- a figure that hasn't changed much in recent years. Black women and Hispanic women earn less on average than their white counterparts. If Newsom signs the law, California will join Colorado, New York City and Washington in adopting job posting requirements. Only Colorado's law is in effect, with New York City employers waiting until Nov. 1 to list pay ranges. It is reported that the New York State Legislature also passed a similar bill, which is now awaiting the signature of the state's Governor Kathy Hochul. If the pending laws are signed by fellow Democrats California and New York, almost a quarter of the U.S. population will live in states with such pay disclosure requirements. "Frankly, I think this is going to be a tipping point. It's at this point that employers will stop moving jurisdiction-by-jurisdiction and start looking for a national strategy," said Syndio, which provides software to help employers identify pay differentials. Christine Hendrickson, vice president of strategic initiatives, said. But the California Chamber of Commerce expressed opposition to the law, even after lawmakers lifted the requirement to make all pay data public. New York City's rules have also faced pushback from businesses, resulting in a six-month delay in enforcement. Pay transparency on job postings is just one of many tools cities and states are using to close the pay gap. Some cities and states also prohibit employers from asking about pay for past jobs and prohibit penalties for workers who share pay information. Among them, Maryland requires disclosure of compensation for jobs upon request, and Connecticut, Nevada and Rhode Island require disclosure during the hiring process.

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