The law goes into effect on January 1 and also requires employers to keep records of the job title and wage history of all employees.
Quick summary:
Beginning January 1, 2023, California employers with 15 or more employees will be required to (1) disclose the pay range for a position in any job advertisement or posting and (2) provide the pay range to any third party used by the employer to advertise, post, or otherwise publicize a job. The third party will then be required to include the pay range in the job posting. Additionally, under the new law, employers with 15 or more employees will be required to provide an employee, upon request, with the pay range for the position in which the employee is currently employed.
A new state law will increase wage transparency for job applicants and current California employees beginning January 1, 2023, resulting in new job posting, wage scale disclosure, and recordkeeping requirements for covered employers.
Senate Bill 1162, signed into law in late September by Gov. Gavin Newsom, increases pay transparency in several ways. Few California dentists will be affected by the revised annual pay data reporting requirement because it applies only to employers with 100 or more employees, but California dentists of all sizes should read on to determine whether they must comply with three of the bill’s additional requirements beginning Jan. 1.
The salary range for positions must be included in all job postings.
Under a state law that went into effect in 2019, California employers of all sizes are now required to provide a position’s pay scale to any applicant who makes a “reasonable request” for that position. Pay scale, as defined in current law and SB 1162, means the hourly wage or wage range that the employer reasonably expects to pay for the position.
That requirement will continue, but SB 1162’s requirements are intended to further ensure that employers do not rely on an applicant’s salary history information when determining whether to offer them a job or what salary to offer them.
Beginning January 1, SB 1162 will require employers with 15 or more employees to:
- Disclose the salary range for a position in any job posting or advertisement.
- Provide the salary scale to any third party used by the employer to advertise, post or otherwise advertise a job. The third party, in turn, must include the salary scale in the job posting.
Companies headquartered outside of California that hire for positions or jobs to be performed in California will be required to disclose salary ranges in job postings under the new law.
Law increases salary transparency for current employees
In addition, under the new law, employers with 15 or more employees are required to provide the employee, upon request, with the salary scale corresponding to the position in which the employee is currently employed.
Maintenance of job title and salary history is required.
Employers of all sizes must maintain records of the job title history and wage rates of all their employees for the duration of employment plus three years after the end of employment.
The Labor Commissioner is authorized to inspect the employer’s records, and the specified time period allows him or her to determine whether a pattern of wage discrepancies exists.
Employers may be ordered to pay a civil penalty of between $100 and $10,000 for each violation.
A person may file a written complaint with the Labor Commissioner alleging that an employer has violated wage scale disclosure requirements within one year of becoming aware of the violation.
The Labor Commissioner is required by law to “promptly investigate” such complaints and, if a violation is found, may order the employer to pay a civil penalty of between $100 and $10,000 per violation, except for a first violation if the employer demonstrates that all job postings for open positions have been updated to include the required wage scales.
Individuals themselves may also bring civil action against the employer to obtain appropriate redress.
Revised wage data reporting requirements for large employers
SB 1162 also amends existing state law requiring employers with 100 or more employees to file their annual wage data report, known as the “EEO-1 Employer Information Report.” Most importantly, the bill changes the employer reporting deadline. Private employers with 100 or more employees must file their report by the second Wednesday in May beginning in 2023 and no later than the second Wednesday of each May thereafter.
The report must include specific data. Covered dentists can find More details in a recent SHRM article or in the text of the bill (Section 1).
Post a job, find job seekers through the CDA Career Center
When you’re ready to post a job at your dental office, head to the CDA Career Center. Launched in the fall of 2020 to boost dental staffing, the Career Center makes it easy for dental office owners to review current salaries for positions in their area through Career Information Tool and connect with job seekers with features like job alerts, custom profiles, job templates, and pre-screening filters. Visit the Career Center to post a job or take a short video tour to learn more.
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