NEW PAY TRANSPARENCY LAW
NEW PAY TRANSPARENCY LAW
There is another new law in California effective January 1, 2023 – the wage transparency law under Labor Code 432.3, which requires employers of 15 or more employees to include the pay scale in job postings, and for all employers to provide this information upon request. Large private employers also have new pay data reporting requirements.
Pay Scale Information — for public and private employers:
- •Employers with more than 15 employees will be required to include a pay scale in salary and hourly job postings, including third-party postings.
- •All employers must provide current employees with a pay scale for their position upon request. Applicants are also entitled to this information upon reasonable request.
- •All employers must maintain a record of each employee’s job title and wage history during their employment period and for three years thereafter. If the employer fails to keep these records, it creates a rebuttable presumption favoring employee claims.
- •There is a new private right of action for employees to seek injunctive or other relief (and get attorneys fees for doing so).
- •New civil penalties of $100 to $10,000 are authorized for any violation of the requirements for disclosure, recordkeeping, and other requirements.
Annual Pay Data Report – for private employers only:
- •Private employers with 100 or more employees must now submit an annual pay data report with new information on median and mean hourly rates by race, ethnicity, and sex within each job category, regardless of whether a federal EEO-1 form is required.
- •Private employers with 100 or more employees hired through labor contractors (e.g. a PEO or other similar organization) must now submit a separate pay data report for those employees.
- •Failure to provide the report can lead to civil penalties as high as $200 per employee.
- •This information must now be submitted on or before the second Wednesday of May, including May 2023.
Here at Epps & Coulson, LLP we understand all of these labor laws may be confusing. We are available to advise and help you implement policies to protect you. Contact Dawn at: firstname.lastname@example.org
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