In less than two weeks, job seekers in California will finally know how much a job pays when they apply for it — if companies don’t figure out a way around a new law.
Businesses are about to have their pay scrutinized by job candidates and employees, said Wallace, the compensation platform company co-founder. “You better make sure that you have a really strong answer for why an employee is paid less,” than the posted range for a similar-looking job, she said. The new California law is uncovering that a lot of organizations have been operating without pay bands, Wallace said.
“It’s really ambiguous,” said Rad, the lawyer. “A lot of attorneys that work in this sphere ask themselves: ‘You know, if the range is too wide, then does that defeat the purpose of pay transparency?’” California government agencies include pay scales in job postings, and some of the ranges are large. The Civil Rights Department, for example, recently had a posting for an “Assistant Deputy Director, Workforce Data Officer” with a listed pay range of $7,976 – $19,321 per month, which translates to about $96,000 – $232,000 per year. Another posting, for a Deputy Chief Counsel at the Civil Rights Department had a similar range.
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