Efficient And Effective Business Litigation

New salary transparency laws will impact California businesses

On Behalf of | Oct 6, 2022 | Employment Law |

Employment disputes happen frequently in California. One that often comes up centers around wages and benefits. In general, these arise after a person already has the job and there is a disagreement with the employer about hours worked, the terms of the employment agreement, whether they are entitled to certain benefits and other factors. One newly passed law will impact employers even before they have made a hire and it should be understood from the outset since they should have as much protection as employees.

Wage transparency must be present in a job posting

A newly signed law will require California employers to provide full disclosure as to what they will pay. It goes into effect at the start of 2023. Employers with at least 15 employees must adhere to it. This came about because of the statistical pay disparity between males and females. Women of color were at specific risk for lower wages.

An underlying aspect of the law is how it changes the landscape for workers already employed at workplaces that fall under this law. If a person works at a corporate job, they can ask the employer for the wage range and must receive that information. If the employer does not provide the information, provides inaccurate information or there is another violation, it could lead to a legal dispute.

Also, employers with at least 100 employees hired via a third party – contractors, for example – must provide salary information to the California Civil Rights Agency for a breakdown of who they are hiring, their race, ethnic background and gender. This could uncover perceived bias and result in legal claims against the employer.

New laws must always be analyzed for potential problems

Many times, employment law disputes are viewed from the perspective of the employee. With employee rights coming to the forefront in the media with various campaigns to ensure workers are treated fairly and within the law, this is no surprise. However, it is still vital to remember that employers also have rights.

If they have lived up to their agreement, they should be protected. Still, with new laws and the terrain changing dramatically, employers must be shielded with help from experienced professionals who can see these situations from the employer’s point of view and give quality legal guidance in dealing with allegations of wrongdoing.