More Progress At Fixing Pay Inequity Through California’s Pay Transparency Law

10 October 2022 Labor & Employment Law Perspectives Blog
Author(s): Michael (Mike) R. Rahmn

Last week, California Gov. Gavin Newsom signed The Pay Transparency for Pay Equity Act into law.  The new law, which goes into effect in May of 2023, requires employers with more than 100 workers to disclose annual pay data broken down by demographics.  The law also requires employers of any size to provide existing employees with the salary range for their positions. Finally, the law requires employers with more than 15 workers to disclose salary ranges on all job advertisements.

California’s pay transparency law follows similar laws recently adopted in Colorado, Washington and New York City. These laws aim to address pay disparities that most often impact women and minority populations by requiring employers to include salary bands on job descriptions, among other things. With this information, current and prospective employees can determine how much a particular position pays and whether their current pay is fair.  Additionally, because in many instances salary information will be publicly available, it will be easier for companies to track the pay of their competitors and for individuals to determine whether the pay being offered is at market. 

The trend for jurisdictions to adopt pay transparency laws is a growing one.  For example, the New York state legislature passed a salary range posting law, and the governor’s signature is expected in the coming months.  Therefore, even if an employer is not in a jurisdiction with a pay transparency law on the books, the employer should be aware of these laws and begin thinking about whether and how to address pay transparency.

This blog is made available by Foley & Lardner LLP (“Foley” or “the Firm”) for informational purposes only. It is not meant to convey the Firm’s legal position on behalf of any client, nor is it intended to convey specific legal advice. Any opinions expressed in this article do not necessarily reflect the views of Foley & Lardner LLP, its partners, or its clients. Accordingly, do not act upon this information without seeking counsel from a licensed attorney. This blog is not intended to create, and receipt of it does not constitute, an attorney-client relationship. Communicating with Foley through this website by email, blog post, or otherwise, does not create an attorney-client relationship for any legal matter. Therefore, any communication or material you transmit to Foley through this blog, whether by email, blog post or any other manner, will not be treated as confidential or proprietary. The information on this blog is published “AS IS” and is not guaranteed to be complete, accurate, and or up-to-date. Foley makes no representations or warranties of any kind, express or implied, as to the operation or content of the site. Foley expressly disclaims all other guarantees, warranties, conditions and representations of any kind, either express or implied, whether arising under any statute, law, commercial use or otherwise, including implied warranties of merchantability, fitness for a particular purpose, title and non-infringement. In no event shall Foley or any of its partners, officers, employees, agents or affiliates be liable, directly or indirectly, under any theory of law (contract, tort, negligence or otherwise), to you or anyone else, for any claims, losses or damages, direct, indirect special, incidental, punitive or consequential, resulting from or occasioned by the creation, use of or reliance on this site (including information and other content) or any third party websites or the information, resources or material accessed through any such websites. In some jurisdictions, the contents of this blog may be considered Attorney Advertising. If applicable, please note that prior results do not guarantee a similar outcome. Photographs are for dramatization purposes only and may include models. Likenesses do not necessarily imply current client, partnership or employee status.

Related Services