If Governor Gavin Newsom signs off on legislation passed by California lawmakers Tuesday, employers in the state will be required to post salary ranges on all job postings. The bill mandates that all companies with 15 or more employees disclose pay rates on job listings in California.
The governor, a Democrat, has until Sept. 30 to sign or veto the bill. So far, he has not mentioned his position. However, if he signs it, the new law will affect many large U.S. employers, such as Walt Disney Co., Facebook and Instagram’s parent company Meta, and Alphabet Inc., which owns Google.
The legislation would not require companies based in California to disclose salary ranges for roles outside the state. However, large organizations typically standardize hiring practices company-wide, so the change could prompt many employers to make the changes on all listings nationwide.
“This is likely going to be the tipping point for many large employers where they consider a nationwide strategy,” Christine Hendrickson, vice president of strategic initiatives at Syndio, which helps businesses improve workplace equity, told the Wall Street Journal.
If passed, the law will also make California the first state in which companies with more than 100 employees must provide their median gender and racial pay gaps.
Other states and cities have recently enacted similar legislation.
Colorado’s Equal Pay for Equal Work act, which went into effect in January 2021, requires employers to disclose the salary range on all job listings. It also requires that businesses in the state provide equal pay and benefits to all employees performing substantially similar work.
The New York City Council passed legislation in December 2021 mandating employers to disclose salary ranges in job postings beginning November 2022.
Employers in Washington state with 15 or more workers must provide salary information up front starting Jan. 1, 2023.
Employers in Maryland must disclose salary information upon request and companies in Connecticut, Nevada and Rhode Island must provide the information during the hiring process.