California
In the state:
1. Is there an existing salary history ban (prohibiting employers from asking about prior salary(ies))? If so, what is the name of the State law that establishes that ban?
Yes. The California Labor Code section 432.3 prohibits employers from asking job applicants about their prior salary history, including compensation and benefits.
2. Is there a legal obligation to publish salaries when advertising roles internally or externally? If so, what is the requirement and what is the name of the State law that establishes that requirement?
Yes. There is a legal obligation for employers with 15 or more employees to publish the pay scale in any job posting made internally or externally if that job may ever be filled in California either in-person or remotely . The requirement is established under California Labor Code section 432.3 and took effect on January 1, 2023.
3. Is there a duty on employers to report on any gender pay differences? If so, what is the name of the State law that establishes that duty?
Yes, employers with 100 or more employees must report information to the state regarding the pay of employees by race, ethnicity, and gender. This is established by the Government Code, as amended by Senate Bill (SB) 116212.
4. Is there a duty on employers to report on any other pay (eg. ethnicity or disability etc.) differences? If so, what is the name of the State law that establishes that duty?
See 3. above. There is no requirement to report pay gaps between disabled and non-disabled workers, the primary focus being on race, ethnicity, and gender.
5. Are employers required to take steps to reduce any identified pay gap?
The California Equal Pay Act (Labor Code Section 1197.5) mandates that employers must ensure equal pay for employees performing substantially similar work, regardless of gender, race, or ethnicity. Employers can therefore face liability if they fail to take steps to reduce any pay gap in circumstances where such differences cannot be justified based on seniority, merit, production quantity or quality, or a bona fide factor other than sex, race, or ethnicity.
6. Where there is a duty to report on any pay difference:
- What is the required frequency of reporting? Annually.
- What are the requirement triggers (e.g. employee headcount)? See 3. above.
- Is the report required to be published externally? No.
- Is there any sanction for non-compliance? Employers who fail to submit the required reports can face penalties, including $100 per employee for the initial failure to file a pay data report and $200 per employee for subsequent failures to file. Additionally, employers who fail to post pay ranges in job listings can be fined up to $10,000 per violation.
7. Is there any pending legislation relating to pay transparency? If so, what is the current position?
N/A.
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