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3 things you should know about California’s pay transparency law

A California law that requires some employers to include pay ranges in job descriptions has generated many questions from employees and employers in the state. The California Chamber of Commerce hotline receives an average of at least one call per day about the new law.

These are three things you should know about the salary transparency law.

1. Who must include pay ranges in job postings?

Any employer that has at least 15 employees must include pay ranges in job postings. However, the company must have at least one employee physically located in California for the law to apply.

2. Who can request their current salary range?

The law also gives employees of any size company the right to request the current salary range for their job. Employers must respond to these requests.

3. Is there a maximum size for pay ranges?

The law requires employers to post a salary range that it considers reasonable for the job. While law enforcement officials may scrutinize an excessively large range, there is no specific limit on the allowable size of salary ranges. Employers must be able to justify the salary ranges they post and may be in violation of the law if the state determines they are posting large ranges to get around the requirement.

People who want to report a potentially illegal job post can contact the labor commissioner by phone or in person. Additionally, employees can file retaliation complaints against employers who take action against them for reporting violations of the pay transparency law.


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