}); if($('.container-footer').length > 1){ This additional reporting requirement is likely to address the growing pay gap across contract workers. What is the status of SB 1162? Last week, state Senator Monique Limn, D-Santa Barbara, introduced California Senate Bill 1162, the Pay Transparency for Pay Equity Act. you can incorporate pay equity into your compensation strategy. Learn how SHRM Certification can accelerate your career growth by earning a SHRM-CP or SHRM-SCP. California Gov. The law does not appear to limit employees to individuals working in the state of California and does not specify whether it will apply to remote positions that may be performed outside of California. Jennifer B. Rubin New Guidance Released for SB 1162 Californias Pay Scale Disclosure Requirements. This bill would delete the provision authorizing an employer to submit an EEO-1 in lieu of a pay data report. The third party shall include the pay scale in the job posting. It remains to be seen if the law will include non-California-based positions. The job posting requirements of SB 1162 will pose unique challenges to employers that hire nationally or may hire workers who work remotely. Important information for employers is also available via the firms webinar and podcast programs. The employer shall tabulate and report the number of employees whose W-2 earnings during the Reporting Year fell within each pay band. Gavin Newsom just signed California pay transparency bill SB 1162 into law, More pay transparency is coming to California. The bill would provide penalties for failure to file the required reports or to make required disclosures. Achieve workplace equality with pay equity auditing, diversity, and inclusion software coupled with professional services, Prevent pay inequity by ensuring your employees receive fair pay at the time of hire, Achieve flawless compliance, reduce IRS penalty risk, and ensure accurate, timely filing of Forms 1094-C and 1095-C, Maximize your bottom line through tax credit opportunities using the number one solution, Ensure compliance with various U.S., EU, and other international laws related to pay data reporting and identify potential risks by conducting an Equal Pay Risk Assessment, Receive comprehensive data analysis and filing solutions associated with EEO-1 reporting, Choose customized solutions for consolidating, cleaning, and analyzing your HR data, Grow your business while minimizing risk for your clients, Strategic insights to help you build better workplaces and tackle complex regulatory challenges, Read up on the latest ACA, pay equity, DEI, tax credits, and data quality news, Download helpful guides, white papers, infographics, and more, See what HR analyst Josh Bersin says about the role of data, analytics, and technology in achieving pay equity, Discover how we earned our World Class 75 NPS, See how were closing the pay gap with the World Cup champion, Explore our openings and build a career at Trusaic, California is again at the forefront of national efforts to close the wage gap with the introduction of, Pay transparency is key to achieving pay equity, Senator Limn, . It will certainly require employers to assess their current compensation systems and methods for achieving pay equity. I thank the Legislative Womens Caucus for their leadership and partnership in building a more equitable California for all. What is 1162? When Senate Bill SB 1162 was signed, much focus was on new pay transparency requirements. Existing law prescribes the information that must be included in the pay data report, including the number of employees by race, ethnicity, and sex in specified job categories. Both an Illinois circuit and appellate court had little sympathy for a subcontractor that suffered significant delays before executing a subcontract, which failed to allow for compensation for the prior delays. (l)Upon request by the department, no later than 60 days from the date of the request, the Employment Development Department shall provide the department with the names and addresses of all businesses with 100 or more employees in order to ensure compliance with this section. $("span.current-site").html("SHRM China "); In this post, we'll answer some of the most common questions around SB 1162 and how EP can help studios and production companies stay in compliance with the new law. Employee compensation may become more transparent in 2023 in the Golden State. Jacklin Rad is an attorney with Jackson Lewis in Los Angeles. (i)Notwithstanding subdivision We must increase pay transparency in order to close the gender and racial wage gap, which prevents women, particularly women of color, from achieving economic security., The draft bill builds on Californias existing pay data reporting law. February 17, 2022 (SACRAMENTO) Senator Monique Limn (D-Santa Barbara) introduced SB 1162 to help close the wage gap by requiring the disclosure of salary ranges on But it's certainly one California employers will want to watch. Take, for example, an employer that may not be based in California, but may he hiring from a pool of applicants who could be working remotely from California. To help you prepare for the forthcoming changes, weve summarized the key components of California SB 1162 below. Employment: Salaries and Wages. From committee: Do pass as amended and re-refer to Com. (Ayes 27. Coloradocreated this requirement through rule making and sub-regulatory guidance. Evensome citieshave joined in. Why the Next Equal Pay Case Matters to Every Employer, Pay Equity Legislation Changes You Need to Be on Top Of, Goldman Sachs, the NFL and the Gender Pay Gap, Pay Equity is the Key to Achieving the S in ESG. We can help! A labor contractor shall supply all necessary pay data to the private employer. on APPR. Microsofts Decision on Pay Raises Makes Pay Equity a Priority. (c)For employers with multiple establishments, the employer shall submit a report covering each establishment. With each job category listed above, the report must include the median and mean hourly rate for each combination of race, ethnicity, and sex. (Ayes 4. SB 1162 will help identify the gender and race-based pay disparities by requiring pay transparency at every stage of the employment process, from hiring, to promotion, and ongoing employment. The state can inspect these records to see if there is a pattern of wage discrepancy. New Guidance Released for SB 1162 Californias Pay Scale Disclosure Requirements. [ Approved by Governor September 27, 2022. The signing of SB 1162 makes California the largest state that requires the affirmative disclosure of pay scale information, and takes the state a step further in its pay transparency efforts, by requiring that employers add mean and median pay data as well as pay data of employees supplied by labor contractors in pay data reports. Ogletree Deakins will continue to monitor the bills progress and will post updates on the firms California and Pay Equity blogs as additional information becomes available. (h)Any individually identifiable information submitted to the department pursuant to this section shall be considered confidential information and not subject to disclosure pursuant to the California Public Records Act (Division 10 (commencing with Section 7920.000) of Title 1). Passed Senate May 24, 2022. We certainly will be. We would like to show you a description here but the site wont allow us. else if(currentUrl.indexOf("/about-shrm/pages/shrm-mena.aspx") > -1) { Christopher T. Patrickis an attorney with Jackson Lewis in Denver. Assembly amendments concurred in. If your business is new to diversity, equity and inclusion. We would like to show you a description here but the site wont allow us. What will this mean for pay equity in tech? To Com. The bill, SB 1162, "would require an employer with 15 or more employees to include the pay scale for a position in any job posting." Your session has expired. Register now for our free OneVote public service or GAITS Pro trial account and you can begin tracking this and other legislation, all driven by the real-time data of the LegiScan API. In short, California's draft law largely mirrors Colorado's approach. Noes 2.) violation of this section. on JUD. Please understand that merely contacting us does not create an attorney-client relationship. That is the report must document what the mean and median pay is for employees, while also accounting for their gender and race/ethnicity. (4)Upon finding that an employer has violated this section, the Labor Commissioner may order the employer to pay a civil penalty of no less than one hundred dollars ($100) and no more than ten thousand dollars ($10,000) per violation. Concurrence, SB 1162 Limn Senate Third Reading By Cristina Garcia, Do pass and be re-referred to the Committee on [Appropriations], Do pass and be re-referred to the Committee on [Labor and Employment], Do pass as amended, but first amend, and re-refer to the Committee on [Appropriations], Do pass, but first be re-referred to the Committee on [Judiciary], https://leginfo.legislature.ca.gov/faces/billStatusClient.xhtml?bill_id=202120220SB1162, https://leginfo.legislature.ca.gov/faces/billTextClient.xhtml?bill_id=202120220SB1162#99INT, https://leginfo.legislature.ca.gov/faces/billTextClient.xhtml?bill_id=202120220SB1162#98AMD, https://leginfo.legislature.ca.gov/faces/billTextClient.xhtml?bill_id=202120220SB1162#97AMD, https://leginfo.legislature.ca.gov/faces/billTextClient.xhtml?bill_id=202120220SB1162#96AMD, https://leginfo.legislature.ca.gov/faces/billTextClient.xhtml?bill_id=202120220SB1162#95AMD, https://leginfo.legislature.ca.gov/faces/billTextClient.xhtml?bill_id=202120220SB1162#94AMD, https://leginfo.legislature.ca.gov/faces/billTextClient.xhtml?bill_id=202120220SB1162#93ENR, https://leginfo.legislature.ca.gov/faces/billTextClient.xhtml?bill_id=202120220SB1162#92CHP, https://leginfo.legislature.ca.gov/faces/billVotesClient.xhtml?bill_id=202120220SB1162. By Robert Sheen | September 1, 2022. California employers with 15 or more employees will need to include salary ranges on job postings starting January 1, 2023. This bill would, instead, require a private employer that has 100 or more employees to submit a pay data report to The requirements also mandate that employers maintain records for the entire duration of each employees tenure with the company as well as at least three years after their termination. Need assistance with a specific HR issue? The legislation extends the date from January 1, 2023 to January 1, 2025. On or before September 1, 2023, this bill would require a private entity in possession of biometric information, as defined, to develop and make available to the public a written policy establishing a retention schedule and guidelines for permanently destroying the biometric information, as prescribed.