Even employers that operate outside of California are required to follow the Golden State’s new pay transparency law, which went into effect Jan. 1, if there’s a chance they could fill open positions with remotely based workers there.
That’s according to an interpretation of the new law by the state labor commissioner.
As previously reported by the McKnight’s Business Daily, the new law doubles down on a 2019 law that requires California employers with more than 100 employees to submit pay data reports to the state Department of Fair Employment and Housing.
Under the new law, all employers in the state with at least 15 workers — and any third party the company uses to publicize available jobs — would be required to include a job’s hourly rate or salary range in their job listings. The pay transparency law also requires that an employer, on request, provide a current worker with the pay scale for that person’s position.
“For multistate or fully remote employers, this may change their approach to compliance with California’s pay transparency law,” the Society for Human Resource Management reported.
Employees who believe that a company has violated the new pay transparency law have one year from the date they learned of the violation to file a grievance with the labor commissioner. Alternatively, they may file a civil lawsuit within a year.
