New California law requiring companies to post salary ranges to take effect
SAN FRANCISCO – Looking for a job can be frustrating, especially when it comes to the question of pay. Soon, most California employers will have to reveal pay ranges to jobseekers upfront.
California's new pay transparency law will go into effect January 1, 2023. The law, which aims to reduce gender and racial pay gaps, will require companies with 15 or more employees to list salary ranges to job postings.
Kayun Kim, is currently studying to receive her MBA and welcomes the new law. In just a few weeks she will be on the job hunt.
"It's really good to know about the salary in advance, because I want to check to check which company salary is fit for me," Kim told KPIX.
She wondered, "How large of a range will companies be allowed to post?"
KPIX asked employment law expert Robert Eassa, Chair of Northern California Labor & Employment Department for Duane Morris Law Firm.
"As long as they truly are paying people within that [posted] pay range," said Eassa. "They now have to justify that there is a reason for it."
The new law also allows current employees to request the pay range for their current job title.
Employers do not add the pay range to job postings people can sue or file a complaint with the California Labor Commissioner's Office — where they can be fined from $100 to $10,000 per violation.