November 13, 2024 | SweeterHR

Pay Transparency

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.

Earned Wage Access

Research suggests that earned wage access is becoming more popular in how companies pay their employees. EWA is a revolutionary concept where employees can access their earned wages as early as the same day. Studies have shown that 60% of workers want on-demand pay, which increases a business’s ability to attract, retain and motivate employees. Simply having the option to request earned wages provides a higher sense of security for workers, even if they don’t utilize it. Earned wage access is an awesome way to stay ahead of the competition but there are some compliance items to think about. Here are 4 best practices when considering this benefit.

Ensure you have written policies that are compliant with state and federal laws including privacy and Paycard laws.

Get the consent of employees when sharing information to providers.
Consider benefits, implications and withholdings.
Research EWA providers and partner with experienced companies.
Have an attorney review for compliance risk