Beginning January 1, 2023, California employers with 15 or more employees must include in any job posting the pay scale for the position. The DIR recently issued new Frequently Asked Questions (FAQ) guidance regarding the new transparency requirements.
- The law applies to employers with at least 15 employees, and at least one in California.
- It defines “pay scale” to mean the salary or hourly wage range the employer reasonably expects to pay for a position. An employer who intends to pay a set hourly amount or a set piece rate amount, and not a pay range, may provide that set hourly rate or set piece rate.
- Further, commission wages must be included.
- However, bonuses and tips do not need to be included.
- An employer found in violation of Labor Code section 432.3 may be subject to civil penalties. The civil penalties are no less than $100 and no more than $10,000 per violation.
- Additionally, starting January 1, 2023, an employer must keep records of a job title and wage rate history for each employee for the duration of employment plus three years after the end of the employment.
Employers should be careful not to auto-renew job postings via third parties and include a pay range or pay scale for each position.