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California passes a new law requiring salary information in job postings

On Behalf of | Jan 12, 2023 | Business Transactions And Litigation |

California has become the first state to pass a law requiring job postings to include specific details such as pay, hours, and benefits. This new law could limit the exploitation of workers and ensure they are appropriately informed of their rights when job-hunting.

What is the purpose of the new law?

The new business law, which goes into effect in May 2023, requires employers with 100 or more employees to include the salary range for a position in any job posting. The law also prohibits employers from seeking salary history information from applicants and relying on an applicant’s salary history to determine whether to offer the applicant a job or what salary to offer the applicant.

Expected effects of the law

This could have several effects on the job market in California. For one, it may lead to employers being more thoughtful about setting salaries to avoid having to post low wages that could dissuade potential applicants.

Additionally, it could cause employers to be more selective in their job postings, only listing openings they are confident they can fill at a competitive salary. The new law will require California employers to document a position’s salary when posting a job opening. This could help close the gender pay gap and give applicants a more transparent look at what they can expect to earn.

Improved level of transparency

California’s new job posting law has the potential to help protect workers from discrimination, ensure equal access for all applicants, and provide a valuable reference tool for employers. The changes made by this law could have a profound impact on how businesses in California operate and how they recruit talent. With these changes, everyone should benefit from improved transparency regarding job postings in California.

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