Heading into 2023, California has made several updates to its labor laws. These changes are expected to be advantageous to employees and job seekers. Employers may also find an upside to the changes.
California business leaders and owners should keep two primary updates in mind moving into the new year. They primarily involve publicizing pay information. Here’s what you should know:
Pay Transparency in Recruitment
Modeled on Colorado’s pay transparency law, employers with 15 or more employees will now have to offer a salary range when posting job listings. Transparency at this level is going to allow companies to be more judicious in budgeting their salaries prior to hiring. It can help to level the playing field for new hires in terms of pay.
What this can mean for you is a simpler time crafting your job postings and more ability to price new positions appropriately. However, if you’re not able to meet the current market for a job, you may have trouble attracting the right candidate.
Reporting Pay Data
California will require that companies with more than 100 employees provide pay data information to the state. It should include job titles, race, gender, and other factors. The reason the state is instituting these new data collection rules is to help safeguard employees from discrimination.
Notably, there is a risk that the disclosure of such data may later become the basis for discrimination lawsuits. Obviously, no responsible company intentionally provides higher pay and/or more advancement opportunities to some classes of employee over others. However, the data may paint a less optimal portrait.
Self-auditing, Sound Representation
To prepare for these changes, you may need to take the time to self-audit your pay information. Regardless of your current standing regarding your pay data, retaining skilled, experienced, and versatile legal representation now may help you to save money, limit risk, and prevent future lawsuits.