How California’s Pay Transparency Bill Could Help Finally Close the Wage Gap

Here’s a common dilemma for job seekers. You’ve seen a position you’re a good fit for and are ready to apply. There’s just one problem; there’s no salary range posted. There may be a short sentence that reads, “Salary commensurate with experience” or nothing at all. You do have some online resources such as company reviews by employees. You can also search for salaries. The problem is those are anonymous. You can’t tell the gender or race of the people posting. So you have to take a leap of faith and hope you can negotiate a fair salary if offered the job.

California Governor Gavin Newsom has an innovative piece of legislation on his desk that could change all of that, Senate Bill 1162. He has until September 30th to sign it into law. The best-known feature of the bill would require employers with 15 or more employees to post salary ranges for their job listings. Laws regarding pay transparency have been enacted in 12 other states and several more are expected to follow suit soon.

SB 1162 goes one step further. Currently, employers with 100 or more employees must report pay according to race, sex and ethnicity. If this bill becomes law, they will also need to include the median and mean hourly rate for these same categories, exposing any gender and pay gaps. Given the increasing intolerance towards income inequality, companies that are publicly exposed for discriminatory wage practices risk not only their reputations but could have trouble attracting quality job candidates too.

The purpose of much of this legislation is to close the persistent salary gap for women and people of color. Up until recently discussing one’s salary was considered taboo. By cultivating this culture of secrecy around income, companies could pay members of both demographic groups less with little to no repercussions. The Golden State is home to some iconic companies including Apple and Disney. It also has a workforce of over 19 million people, the largest in the country. If SB 1162 becomes law, the old saying, “As goes California, so goes the nation” will take on added meaning. 

Posting salary ranges benefits both employees and employers. Job seekers have a clear picture of what their potential salary will be and employers foster a trusting environment that attracts quality candidates of all backgrounds. SB 1162 along with the 2018 law that bans employers from asking for salary histories will help strengthen employee rights in California. 

Note that you can take legal action if your rights are violated while job hunting, even if you aren’t hired. “As a job seeker, you can file an employment law claim if your rights are violated,” noted J.J. Dominguez of The Dominguez Firm. “If you are asked about your salary history or aren’t provided with a salary range should you request it from the company you’re interviewing with, you should speak to an experienced employment law attorney right away.”

There’s no going back. As attitudes towards employment and job hunting continue to evolve, a fairer workplace will include equal pay for equal work as it should.


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David Carty

The real estate section is covered by David Carty. Need any information on prices, rises and falls in the market, or genuine advice on what properties to watch out for? David has proven his mettle in the field through stellar reporting and story creation.

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