California Hard work Commissioner Problems FAQs Clarifying Pay Transparency Regulation

As we up to now reported right here final fall, California enacted a pay transparency regulation (SB 1162) requiring employers with 15 or extra workers to expose pay scales in activity postings starting January 1, 2023. The Hard work Commissioner just lately issued steerage within the type of FAQs to deal with one of the vital unanswered questions in regards to the interpretation and enforcement of the California Equivalent Pay Act.

The regulation expands pay information reporting necessities for California employers with 100 or extra workers, and calls for employers with 15 or extra workers to incorporate the “pay scale” for a place in any activity posting. Then again, the regulation is silent on some key problems, similar to: (1) how one can resolve the 15 worker threshold for protection; (2) how one can calculate the “pay scale;” and (3) whether or not positions that aren’t required to be stuffed by way of a California worker are coated (i.e., far flung positions that can, or won’t, be carried out out of doors of California). The FAQs supply useful steerage to deal with those questions.

The Hard work Commissioner’s FAQs explain the next:

• Figuring out 15 Worker Restrict: The Hard work Commissioner’s steerage explains which people will have to be counted to resolve whether or not an employer is roofed underneath the regulation and, due to this fact, will have to expose pay scales in activity postings. Particularly, the regulation applies when (1) an employer reaches 15 workers at any level in a pay length, and (2) one worker is recently situated in California. When calculating the 15-employee minimal threshold, “bona fide” unbiased contractors are excluded, whilst exempt workers, part-time staff, minors, and new hires are incorporated.
• Defining Pay Scale: The regulation defines “pay scale” because the wage or hourly salary vary that the employer somewhat expects to pay for the location. The FAQs explain that “pay scale” excludes bonuses, commissions, guidelines, or different advantages. Then again, if a place’s wage or hourly salary is primarily based in entire or partially on both fee or a work price, then the fee vary or piece price the employer somewhat expects to pay for the location will have to even be incorporated within the activity posting.
• Posting Necessities: The steerage supplies further explanation relating to when and the way the brand new “pay scale” data is needed to be disclosed. The FAQs give an explanation for that the “pay scale” will have to be incorporated inside of a task posting if the location “would possibly ever be stuffed in California,” both in-person or remotely. The salary data will have to be displayed within the activity posting itself, and can’t be incorporated by way of a hyperlink or QR code.

In gentle of the Hard work Commissioner’s FAQs, California employers must completely evaluate their activity postings to verify compliance with the brand new pay transparency regulation and the Hard work Commissioner’s steerage, and must seek advice from recommend previous to revising or posting new activity positions in 2023.