California New Law: Pay Ranges

The California legislature passed a law requiring employers with 15 or more employees to provide the pay range for all positions including the publication of each employer’s information on the internet. The purpose of the pay transparency bill is to increase pay equity within organizations, eliminating disparities. Employees that are aware of the pay structure in their company have increased commitment. It is essential to implement consistent protocols to ensure job ads reflect accurate pay scales. Using compensation benchmarks such as researching your industry’s market pricing for each position is one strategy to create fairness in wages. Employees are entitled to a nondiscriminatory workplace therefore; it is important to have yearly compensation reviews to guarantee that your company is striving for equitable pay ranges. If you need help determining the market rate for each position and pay ranges, please reach out to us! We can assist.