The Importance of the Pay Transparency for Pay Equity Act

Wage & Hour Laws September 30th, 2022
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While still a bill, SB-1162 is a massive step in the right direction for pay equity amongst employees.  It builds on SB-973 2021, a bill that passed into law and began the move forward for equal pay across the board. It is, however, a long journey, and SB – 1162 will move California into a stronger position for equal pay and minorities.


SB – 973


SB – 973 started the process of equal pay for women and people of color by requiring companies with 100 or more employees to report pay data. That information was supposed to help ensure that minority groups are being paid the same amount as other workers doing the same type of jobs.

Where SB – 973 falls short is that it fails to address the pay inequity of temporary and contract workers or temp workers who are employed through staffing agencies. SB – 973 also does not require that the pay data reported become public information. That makes it difficult for watchdog groups to access the data and promote changes.


SB – 1162 Addresses Pay Data Collection For All Employees and Non-Employee Workers


With the growth of contract-type workers, employers throughout California have found a way to save money by paying groups of people as contract workers – many of these positions are taxed as self-employed and make less money. There are no benefits and no overtime hours, and the employer is not required to pay their part of the employment wage taxes. That may mean that a self-employed person is taxed much higher than a regular employee.

SB – 1162 requires that companies with 100 or more employees report pay data for all workers, including those that are contract-type, 1099 independent contractors, etc. That additional data will help to show where pay inequities exist across many types of demographics.  Having this data is a big step toward gaining more pay equity amongst the general population.


Pay Data to Become Public


SB – 1162 will require that pay data submitted will become part of the public record. That means that even in weak bureaucracies, other groups with political power and authority will have access to data that, while private, may hide disparaging gaps in pay rates for minorities, thus shining a light on what actions are needed to ensure more pay equity.


Key Payment Details to Become Part of the Job Listing


Salary and wage data will become part of every job posting so that people can see exactly what each type of job pays. Currently, that is not a requirement in California. It also makes it easier for employers to make jobs seem more lucrative than they are.

SB – 1162 changes that and helps to eliminate job postings that are misleading, including those that make a job seem like it meets the minimum wage requirements.

SB -1162 improves the data and data reporting across the state. It is a way forward that supports workers regardless of demographics. The pay transparency movement is continuing to evolve into a powerful way to protect fragile and often abused minorities in tech, healthcare, and other industries.


Contact DLaw If You Have Questions About Current CA Wage Laws or Pay Equity


If you feel you’re experiencing pay inequity or have questions regarding current wage laws, reach out to our team at Davtyan Law (DLaw). One of our experienced employment lawyers can explain your rights, go over your situation and give you advice on how to proceed.  Call us today at (818) 275-5799!

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