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Pay Transparency Isn’t Just Courteous–It’s Now CA Law

California employers should be aware of the latest salary and diversity disclosure requirements when posting new jobs, as demographic and pay transparency requirements have recently been established by California legislation.

We get it: Change is tough, and these new requirements may pose obstacles to making new hires. But the reality is that we are in a candidate’s job market, and it may stay that way for a while. The faster you can adapt to this reality, the better positioned you’ll be to attract quality employees.

All employers with 15 or more employees nationwide, with at least one employee in California, must post payscale data in any job posting. This pay transparency should help job seekers make informed decisions about the compensation they can expect in a particular role, according to CalMatters.

Additionally, employers with 100 or more employees are also required to disclose information about the diversity of their workforce. This includes three key demographics: race, ethnicity, and sex. This updated legislation is designed to promote diversity and inclusivity in the workplace and can attract top talent. This legislation passed when Gov. Gavin Newsom approved SB No. 1162 in September of 2022.

Get Compliant With Pay Transparency

To ensure your compliance with these requirements, here are some helpful steps you can follow.

1. Start with a self-audit. Look at the current language used in your job postings. See if they include the expected salary range and information about the diversity of the workforce.
2. Assess data on diversity. Collect data on the diversity of the current workforce, including how you have fared in hiring among underrepresented groups. Many organizations often find that they have a much more diverse staff to boast to potential employees than they realize.
3. Check your work. Work with your HR professionals—and possibly your counsel—to ensure your company’s hiring practices are in line with the new requirements. At Allevity, we’re ready to help you cover your bases on this.
4. Show them the money. Make sure your job postings include the expected salary range for each role.
5. Train your hiring team. If you don’t work with a professional employer organization like Allevity, you need to get your full hiring team up to speed on all of these requirements. They need to understand how to implement them correctly.

It’s crucial to stay informed and comply with pay transparency requirements, as non-compliance can result in legal penalties and fines. By following these steps, you can help build a positive reputation for your business. You can create a more transparent and equitable hiring process.

Look at it this way, and try to embrace it—because your candidates are. The recent updates to salary and diversity disclosure requirements in California are a step towards a more fair and transparent hiring process. By understanding and following these requirements, you can attract top talent and create a positive and inclusive workplace culture.
As always, we’re a call away to help you out. Let’s talk!

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