Month: April 2023

The new pay transparency law in California requires employers with 15 or more employees to include salary on all job postings and employers with 100 or more employees must report pay data for existing employees. Pay data reports include the median and mean hourly rate for demographics, due on May 10, 2023 to the Civil Rights Department.

Whether your company falls under the pay transparency law or not it is important for you to understand where your company is falling short. Salary benchmarking may sound overwhelming but it can be helpful in attracting and retaining top talent. Some benefits include;

Attracting and Retaining talent
Increased motivation
Establish trust and loyalty among employees
Reduce pay inequality

We suggest taking the time to collect employee data including salaries, job responsibilities, and demographics (race, sex, sexual orientation, and education), then comparing it to your organization and similar companies to remain competitive.

With a focus on International Women’s Day last month, we thought we would discuss Pay Equality for the Newsletter.

Did you wonder why employers cannot ask candidates about their previous income in CA and select additional states? It is due to pay equality.

In the past, many businesses offered candidates pay based on their previous income. In an environment where women and most definitely, women of color, are paid less for the same work as their male counterparts, it is easy to imagine how quickly pay inequality can spiral under such practices.

In fact, California’s requirement came after a recent-ish case of a teacher, Aileen Rizo. She found out she was paid less than her male counterpart although she had more experience and education. When she inquired as to why she was paid less, the school listed prior income as the determining factor. She sued and won.

Equal pay for equal work. It is something you will see a lot of people on social media lamenting about right now. A ton of CEO’s will be declaring their companies stand behind women on International Women’s Day without actually putting in the work or looking at the data and adjusting. More of our small business clients practice wage equality than many of the large (boastful) companies we have come across. Our hats off to all of you for the equality practices we see every day!

For more on the Rizo case: https://www.harpersbazaar.com/culture/politics/a22518299/aileen-rizo-equal-pay-case-california-state-assembly/