Pay Data Reporting

California’s new pay transparency law also impacts employer data reporting for both public and private sector employers. The law also requires employers to maintain records of job title and wage history for each employee for the duration of employment plus three years. The Labor Commissioner can inspect those records to determine if there is a pattern of wage discrepancy. If employers violate these rules the Labor Commissioner may issue penalties up to $10,000. Moreover, if an employer fails to keep records in violation of Labor Code section 432.3, there is a rebuttable presumption of pay disparity in favor of the employee if the employee makes a legal challenge. This is especially important to note because the new law created a private right of action for violations of the pay transparency law, giving aggrieved parties the right to seek injunctive and “any other appropriate relief.”

What can you do to be ready for the new law?

• Make sure your job advertisements include salary information.

• Be sure your hiring personnel are aware of what they can and cannot ask applicants regarding their salary history. LCW offers training on hiring and a variety of other topics. Contact Anna M. SanzoneOrtiz (asanzone-ortiz@lcwlegal.com) for more information on LCW’s training programs!

• Maintain job title and wage history information for three years after employee separation.

• Consider a pay equity audit of current employee wages to ensure there are not any significant discrepancies or inequities.

• Consider developing a formalized pay equity policy.

Conclusion

The law is seen as a positive step towards achieving pay equity in California, and is a model for other states to follow. However, it remains to be seen how effective the law will be in achieving its goals, and how it will be enforced.

If you have any questions or need further guidance on how to comply with California’s wage transparency law, contact your trusted legal counsel.

View the full article on our blog here.