California continues to lead the way in pay equity, and its Pay Transparency for Pay Equity Act is a significant step towards closing wage gaps. As of January 2023, this law places clear obligations on employers, ensuring greater fairness for job seekers and current employees alike. Understanding and effortlessly addressing these regulations is crucial for attracting top talent and maintaining compliance in the Golden State.
Key Requirements of California Pay Transparency:
- Salary Range Disclosure in Job Descriptions: As of January 2023, employers must list a salary range in job descriptions for positions that may be filled in California, including remote roles. This must be a “reasonable” expectation, not a wide, uninformative range.
- Pay Scale Upon Request: Employers are required to provide current employees with the pay scale for their position upon request.
- Salary History Ban: California law prohibits employers from asking applicants about their past salary or compensation history.
- Annual Pay Data Reporting: Employers with 100 or more employees must submit an annual pay data report to the California Civil Rights Department (CRD).
- Penalties for Non-Compliance: Failure to adhere to these requirements can result in significant fines.
How Datapeople Helps You Navigate California’s Regulations:
Datapeople is built to help talent teams effortlessly comply with evolving pay transparency laws like California’s. For specific requirements, Datapeople provides:
- Smart Alerts & Guidance: When you create a job post for a California-based role (or a remote role that could be filled in California), Datapeople’s in-app guidance will automatically alert you if a salary range is missing, prompting you to add the required information.
- Standardized Language & Best Practices: Datapeople can help you ensure that the disclosed salary ranges are presented clearly and in a way that meets the “good faith” requirement, avoiding ranges that are too broad and might deter candidates.
- Consistency Across Postings: Maintain uniformity in how pay information is presented across all job boards and your career site, reducing the risk of non-compliance.
- Support for Fair Hiring: By reminding you to include pay ranges and avoid salary history questions, Datapeople helps foster a fair and compliant hiring process that aligns with the spirit of California’s law.
By leveraging Datapeople, you can confidently attract diverse talent, ensure fair compensation practices, and stay ahead of regulatory changes in California.
Learn more about the broader landscape of pay transparency: