New CA Law Requires Pay Range in Job Listings: What this means for HR Departments

The clock is ticking for California businesses and HR departments that have yet to adopt pay transparency. A new CA bill, SB 1162, requires employers to disclose pay ranges in job advertisements. One benefit of HR business process outsourcing with PacWest is that we walk alongside your team, making sure you are aware and prepared for all new laws pertaining to your business. 

Here we will discuss the highlights of this new law regarding payment transparency and reporting. 

Overview of the Payment Transparency Law

What business owners should know about the new payment transparency law: 

• Applies to organizations in the state of California 
• Employers of 15 or more workers must include hourly or annual salary ranges in all job postings, along with current employees, no later than January 1, 2023
• Businesses with 100 or more employees or contractors must report median and mean hourly pay rates by job category and “each combination of race, ethnicity, and sex.” These annual reports are sent to the CA DFEH, but we do not know yet where that information is stored and who can see it – stay tuned!
• Pay history and job title history must also be kept for 3 years and must be made available to the Labor Commission upon request. Employees will have up to one year to file a complaint and fines could be up to $10,000 per violation. 

While many California HR professionals don’t feel prepared to act in compliance with SB 1162, PacWest is watching closely as practice of this new law comes into effect. HR experts, such as those at PacWest, can look to other states that already have similar laws such as New York City, Washington, and Colorado. We make sure our clients understand the implications of all such new laws that affect their organization. 

Generating Interest with Enticing Job Ads 

Like many other business leaders, you may be wondering the best way to approach the disclosure of compensation in a public advertisement. How do you write an appealing description of the positions available and not dissuade any well-qualified workers from applying if the salary or hourly pay may seem to miss the mark? 

Our experienced team at PacWest is well equipped to help you craft compelling job listings. One aspect of this is to include other benefits or perks of the job besides monetary compensation. Among the many benefits of outsourcing HR services with PacWest, you’ll be able to boast about offering quality health insurance to your employees. 

Offering competitive benefits packages doesn’t need to break the bank. Not only does quality employee benefits help attract top-tier candidates, providing competitive workplace perks like retirement plans can also help your company get tax breaks. Learn more by contacting PacWest today. 

Need Guidance? 

It may seem intimidating to navigate new laws such as California’s pay transparency bill on your own as a small or medium sized business owner. Our experienced team at PacWest is here to help guide you through compliance of these laws. 

Do you want to be confident that your business is accurately reporting pay scales and posting job listings that catch the attention of the best candidates? Contact PacWest today to get started with our business solutions services. 

About PacWest

PacWest Business Solutions has been trusted by hundreds of business owners since 1986. Our team handles HR functions, payroll services, and assists with a variety of business solutions such as risk management. 

Our experienced professionals are adept at keeping pace with new laws and regulations, securing the best possible workers compensation, and promoting a positive company culture. Reach out to us today!