What does California SB 1162 mean for San Diego employers? Well, the first thing which applies to all employers relates to job postings. They must now include additional information regarding the pay scale associated with that job opening when requested by the applicant as of January 1, 2023. The pay scale is either the potential salary or hourly wage range the employer “reasonably expects” that position to earn.
Employers will have to be much more transparent about wages with their employees. In addition to providing the pay scale for any job posting to applicants, SB 1162 provides the requirement for an employer to provide the pay scale for the position of an existing employee if they request it.
Job Posting Changes
What does SB 1162 mean for San Diego employers regarding job postings?
If you have 15 or more employees you are required to include the pay scale for a position in any job posting on any platform. If you post the position on any online platform or provide the posting to a third party you must provide the pay scale for that position and they must provide it to the users of that medium.
Employee Record Requirements
San Diego employers must ensure additional information is added to and maintained in the employee’s work history file. The record must now also include wage rate history and the titles of the position(s) the employee held throughout their employment and for three years after the employment relationship ends. The California Division of Labor Standards may inspect those records at any time in search of any pattern of wage discrepancy.
Employers with More Than 100 Employees
The process of submitting an EEO-1 to both the Federal Equal Employment Opportunity Commission and the California Civil Rights Department will not work going forward. Starting Wednesday May 10, 2023 and by every 2nd Wednesday of May thereafter, these reports will require additional information.
The report must break out the number of employees by race, ethnicity and sex for ten job categories:
- Executive or senior level officials and managers
- First or mid-level officials and managers
- Professionals
- Technicians
- Sales workers
- Administrative support workers
- Craft workers
- Operatives
- Laborers and helpers
- Service workers
The report must show the number of employees by race, ethnicity and sex with earnings which fall within each of the bands used by the US Bureau of Labor Statistics in its Occupational Employment Statistics Survey. The report must also include new information showing the median and mean hourly rate for each of the job categories above. The numbers must also reflect the amount of hours worked by employee by pay band as well as your North American Industry Classification System (NAICS) Code.
Those employers who use “labor contractors” and have more than 100 employees are required to submit a separate report to the California Civil Rights Department which discloses pay data for those workers hired through labor contractors. The labor contractor is required to provide this data to the provider of work.
Specific Requirements Make It Difficult for Some To Determine What Does CA SB 1162 Mean for San Diego Employers
The bottom line for California and Southern California companies is it is important to be aware of the new requirements that SB 1162 mean for San Diego employers to comply with. This is also true for those businesses outside of the State of California with remote workers located within our state.
This is why it is important to work closely with the proven business, corporate and employer defense attorneys at the Watkins Firm. We have provided sound counsel, advice and legal services to the San Diego and Southern California business and healthcare communities for more than four decades. We invite you to review the strong recommendations of our clients and contact the Watkins Firm or call 858-535-1511 for a complimentary consultation today.
