California employers with more than 15 workers on their payrolls may want to follow new legislation regarding pay scale transparency. It seems that there has been an outcry suggesting that certain targeted minority groups are being paid less than other workers along the West Coast. New legislation will soon take effect, requiring employers to list the pay ranges of specific positions when someone applies for a job.
Those who support the new law say its intent is to bridge a pay gap that currently is said to exist throughout the state in certain gender and racial groups. A person would be able to file a complaint if an employer does not list the pay range in an advertisement for a job opening. An employer could face substantial fines for not complying with such laws.
How to avoid problems regarding new pay scale laws
Even employers with an existing payroll may be affected by the new law. To avoid legal problems, all California employers with 15 or more workers on payroll will want to keep the following issues in mind:
- Employers can seek clarification of laws that take effect, on Jan. 1, 2023.
- Employers can carefully review their existing payrolls to make sure there are no discrepancies between protected classes of people and the rest of the working staff.
- Employers can conduct periodic reviews to ensure that they are following new pay scale transparency laws.
If a job applicant or worker files a complaint, a California employer will want to be as well-informed and prepared as possible, in case the situation must be resolved in court.
Employers have rights, too
An employer has certain rights, just as workers do. An employer has a right to seek legal guidance, for instance, if a worker has filed a complaint regarding discrimination or inequitable compensation. When an experienced employment law attorney is brought on board to help resolve an issue, it is often possible to achieve an agreeable solution without going to court.