Key Takeaways from the Newly Released Guidance Regarding Pay Transparency in California – Meyers | Meyers Nave

As we beforehand reported, California employers have new wage transparency necessities that started January 1, 2023. The signing of SB 1162 into regulation left many employers on the lookout for further steerage. Late final month, the California Labor Commissioner issued some steerage on the regulation by a sequence of FAQs.

The Labor Commissioner offered steerage on the these beforehand unanswered questions:

1. Must the pay scale embody bonuses, ideas, or different advantages?

No. “Pay scale” means the wage or hourly wage vary the employer moderately expects to pay for a place. The Labor Commissioner’s place is that any compensation or tangible advantages offered in addition to a wage or hourly wage usually are not required to be posted. The employer could embody this data to make its recruitment efforts extra aggressive and employers are cautioned different types of compensation could also be thought-about for equal pay functions.

2. Must the pay scale embody anticipated commissions?

Yes. If the hourly or wage wage relies on commissions or piece fee, the fee vary or piece fee vary have to be included in the job posting.

3. Does the job posting requirement apply to corporations which have lower than 15 workers in California, however 15 or extra nationwide?

Yes. The Labor Commissioner interprets the statute to use to any employer with no less than 15 workers, certainly one of whom is in California. In addition, any particular person performing any sort of compensable work for the employer who just isn’t a bona fide impartial contractor can be thought-about and counted as an worker, together with salaried executives, half-time employees, minors, and new hires.

4. Do job postings have to incorporate the pay scale for distant jobs that could possibly be carried out outdoors of California?

Yes. The Labor Commissioner interprets the statute to imply that the pay scale have to be included inside the job posting if the place could ever be stuffed in California, both in-person or remotely.

5. Can employers hyperlink to the wage vary in an digital posting or embody a QR code in a paper posting that may take an applicant to the wage data?

No. The Labor Commissioner’s place is that employers should embody the pay scale inside the posting.

One excellent challenge:  The new steerage doesn’t make clear whether or not the pay scale necessities solely apply to postings made on or after January 1, 2023, or if it’ll apply to all postings that stay energetic as of January 1, 2023. To be secure, we suggest making certain all energetic job postings fulfill the new pay scale necessities.

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