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Pay scale must be included in job postings by California employers with 15 or more employees

Law takes effect Jan. 1; also requires employers to maintain records of job title and wage rate history for all employees

November 01, 2022 1581
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Quick Summary:

California employers with 15 or more employees will be required beginning Jan. 1, 2023, to (1) disclose a position’s pay scale in any job posting or advertisement and (2) provide the pay scale to any third party used by the employer to announce, post, publish or otherwise advertise a job. The third party in turn will be required to include the pay scale in the job posting. Also under the new law, employers with 15 or more employees are required to provide to an employee, upon the employee’s request, the pay scale for the position in which the employee is currently employed.

A new state law will increase wage transparency for California job applicants and current employees beginning Jan. 1, 2023, with resulting new job-posting, pay scale disclosure and records-maintenance requirements for covered employers. 

Senate Bill 1162, signed into law in late September by Gov. Gavin Newsom, increases wage transparency in several ways. Few California dentists will be impacted by the revised annual pay data reporting requirement because it applies only to employers with 100 or more employees, but California dentists of all sizes should read continue reading to determine whether they must comply with three of the bill’s additional requirements beginning Jan. 1.

Pay scale for positions must be included in all job postings

California employers of all sizes are already required under a state law that took effect in 2019 to provide a position’s pay scale to any applicant who is applying for that position upon the applicant’s “reasonable request.” Pay scale, as defined by existing law and SB 1162, means the salary or hourly wage range that the employer reasonably expects to pay for the position.

That requirement will continue, but the requirements of SB 1162 are intended to further ensure that employers do not rely on an applicant’s salary history information when determining whether to offer employment to an applicant or what salary to offer.

Effective Jan. 1, SB 1162 will require employers with 15 or more employees to:

  • Disclose a position’s pay scale in any job posting or advertisement. 
  • Provide the pay scale to any third party used by the employer to announce, post, publish or otherwise advertise a job. The third party in turn will be required to include the pay scale in the job posting.

Companies that are based outside of California and hire for positions or work to be done in California will be required to disclose pay scales in job postings in compliance with the new law.

Law increases wage transparency for currently employed

Also under the new law, employers with 15 or more employees are required to provide to an employee, upon the employee’s request, the pay scale for the position in which the employee is currently employed.

Maintenance of job title, wage rate history required

Employers of all sizes will be required to maintain job title and wage rate history records for all their employees for the duration of the employment plus three years after the end of the employment.

The Labor Commissioner is authorized to inspect the employer’s records, and the specified time frame allows the Labor Commissioner to determine if a pattern of wage discrepancy exists. 

Employers can be ordered to pay civil penalty between $100 and $10,000 per violation 

An individual can file a written complaint with the Labor Commissioner alleging an employer has violated the pay-scale disclosure requirements within one year of learning about the violation.

The Labor Commissioner is required under the law to “promptly investigate” such complaints and, if a violation is found, can order the employer to pay a civil penalty of between $100 and $10,000 per violation with exception of a first-time violation if the employer demonstrates that all job postings for open positions have been updated to include the required pay scales. 

Individuals themselves can also bring a civil action against the employer for appropriate relief. 

Revised pay data reporting requirements for large employers

SB 1162 also revises existing state law that requires employers with 100 or more employees to submit their annual pay data report known as the “Employer Information Report EEO-1.” Most significantly, the bill changes the employer’s reporting deadline. Private employers of 100 or more employees must submit their report by the second Wednesday of May beginning in 2023 and on or before the second Wednesday of each May thereafter.

The report must include specific data. Covered dentists can find more details in a recent SHRM article or in the text of the bill (Section 1). 

Post a job, find job seekers through CDA Career Center

When you are ready to post a job in your dental practice, head to the CDA Career Center. Launched in fall 2020 to boost the dental staffing pipeline, the Career Center makes it easier for dental practice owners to review prevailing wages for positions in their area through the Career Insights tool and to connect with job seekers with features like job alerts, customized profiles, job templates and prescreen filters. Visit the Career Center to post a job or take a short video tour to learn more.