California’s New Pay Transparency Laws: What Employees Need to Know

As an employee in California, you have the right to be paid fairly and equitably for your work. Historically, pay disparities based on gender, race, and other protected characteristics have been all too common. But a new era of pay transparency is dawning in the Golden State, aimed at closing unfair wage gaps and empowering workers with the information they need to advocate for their worth.

At TONG LAW, we’re dedicated to fighting for employees’ rights and helping our clients understand the laws that protect them in the workplace. California has recently passed some of the most comprehensive pay transparency legislation in the country, giving employees new tools to ensure they’re being compensated fairly.

Here’s what you need to know about your rights under these groundbreaking new laws.

Employers Must Provide Pay Scales in Job Postings

Under the new law (SB 1162), employers with 15 or more employees must include pay scales in all job postings. This requirement applies to postings the employer makes directly, as well as postings made by third parties on the employer’s behalf. The pay scale must show the salary or hourly wage range the employer reasonably expects to pay for the position.

Why is this important? Including pay ranges in job ads provides critical information to job seekers. It allows you to determine upfront whether a position fits your salary requirements before investing time in the application process. It also lets you see how different companies value similar roles, which can inform your negotiation strategy.

Most importantly, pay scale transparency helps combat discriminatory pay practices. When salary ranges are out in the open, it’s much harder for employers to offer unfairly low compensation to candidates based on gender, race, or other factors. You can enter salary discussions with a clear benchmark of what the job should pay.

You Have the Right to Your Pay Scale Upon Request

The new law also entitles you to request the pay scale for your current position at any time, regardless of your employer’s size. Upon your request, your employer must provide the salary or hourly wage range for the job you hold.

This provision is a game-changer for pay equity. No longer do you have to wonder if your pay stacks up fairly against your colleagues or market rates. You have the right to know the range of what your employer has deemed an appropriate wage for your role.

If you suspect you’re being underpaid, requesting your pay scale is a great first step in advocating for fair compensation. It provides a factual basis for you to discuss your pay with your employer and negotiate adjustments if warranted. Rather than relying on hearsay or guesswork, you can point to objective data about the pay range for your position.

Expanded Pay Data Reporting Requirements

In addition to providing pay scales to employees and applicants, larger employers have new obligations to report compensation data to the state.

Private employers with 100 or more employees must submit an annual pay data report to the California Civil Rights Department. The report includes detailed information on employees’:

• Pay
• Hours worked
• Job category
• Race
• Ethnicity, and
• Sex

Employers who hire 100 or more workers through labor contractors must file a separate pay report for those employees.

These reporting requirements are designed to give the state better data to identify and combat pay disparities. By collecting and analyzing this information, the Civil Rights Department can spot patterns of wage discrimination and hold employers accountable.

While you may not see the direct impacts of pay data reporting, know that it’s part of a larger effort to advance pay equity in California workplaces. Employers who are required to report this data will be more motivated to address unjustified pay gaps to avoid enforcement action.

Enforcement and Penalties for Violations

California’s pay transparency laws carry weight, with mechanisms in place to enforce compliance and penalize violators.

If an employer fails to provide a pay scale in a job posting, they may face penalties ranging from $100 to $10,000 per violation. Penalties for subsequent violations can be even higher.

If your employer fails to provide you with the pay scale for your current position upon request or retaliates against you for exercising your rights under the pay transparency laws, you can file a complaint with the California Labor Commissioner’s Office. The Commissioner can order your employer to pay penalties and take corrective action. You also have the right to bring a civil lawsuit against your employer for violations.

These enforcement measures send a clear message that California takes pay transparency seriously. Employers who skirt their obligations will face consequences, while those who embrace transparency will be on the right side of the law.

What to Do if You Suspect Pay Discrimination

If you believe you’re being paid less than co-workers doing substantially similar work due to your gender, race, or other protected characteristic, California’s pay transparency laws can be a powerful tool in your fight for fair compensation.

Here are some steps you can take:

1. Request the pay scale for your position in writing. The law requires your employer to provide it.
2. Do market research on typical salary ranges for your role and experience level. Sites like Glassdoor, Payscale, and Salary.com can provide helpful benchmarks.
3. If you’re comfortable doing so, discuss pay with trusted colleagues to get a sense of what others in similar roles are earning. Remember, your employer can’t prohibit you from discussing wages with co-workers.
4. Compile a list of your qualifications, experience, and accomplishments to build a case for why you deserve higher pay within the range.
5. Set up a meeting with your supervisor or HR to discuss your concerns. Present the pay scale and market data, and clearly articulate why you believe your pay is not equitable.
6. If your employer is unwilling to address the issue, consider filing a complaint with the California Labor Commissioner or Civil Rights Department.
7. Consult with an experienced employment lawyer to discuss your options, including a potential civil lawsuit. A knowledgeable attorney can help you evaluate the strength of your case and advocate for your rights.

At TONG LAW, our attorneys are well-versed in California’s pay equity and transparency laws. We can help you understand your rights, gather evidence of unfair pay practices, and hold your employer accountable. If you suspect you’re the victim of wage discrimination, don’t suffer in silence – contact us for a confidential consultation.

Embracing a New Era of Pay Transparency

California’s pay transparency laws represent an important shift toward more equitable workplaces. By arming employees with critical information about pay scales and requiring employers to report compensation data, these laws aim to root out unfair pay disparities and hold employers accountable.

As an employee, knowledge is power. Understanding your rights under these new laws empowers you to advocate for fair pay and challenge discrimination. But if you encounter resistance or retaliation from your employer, know that you don’t have to fight alone.

At TONG LAW, our mission is to champion employees’ rights and level the playing field in the workplace. We’re here to help you navigate your rights under California’s pay transparency laws and fight back against unfair compensation practices.

With these new legal protections and an experienced employment law firm in your corner, you can demand the fair pay you deserve with confidence. Together, we can build a more equitable future for California workers.