New Job? Know Your Rights: How to Use California's Pay Range Law as a Tech Employee

As a tech employee looking for a new job, you may have noticed something new in job postings starting January 1st, 2021 - pay ranges. California, Colorado, New York City, and Washington state have all recently passed laws requiring employers to include pay ranges in job postings. This change aims to reduce gender and racial pay gaps by making it easier for job seekers to understand the pay range for a position and negotiate for fair compensation.

I. What is the goal of these new laws?

The goal of these new laws is to make it easier for job seekers to understand the pay range for a position and negotiate for fair compensation. This is especially important for women and minorities who often face pay discrimination. By making pay ranges more transparent, these laws aim to reduce the gender and racial pay gap.

II. What do these laws require?

The laws vary slightly by state, but generally, employers with at least 15 workers will have to include pay ranges in job postings. Employees will also be able to ask for the pay range for their own position, and larger companies will have to provide more detailed pay data to the state's Civil Rights Department than previously required. If companies don’t add ranges, people can sue or file a complaint with the Labor Commissioner’s Office, which can issue a penalty of $100 to $10,000 per violation. Companies that don’t have pay ranges in job postings won’t get penalized for their first violation, so long as they add the information.

III. How does this affect tech employees?

As a tech employee, this new law will affect you in a few ways. Firstly, you will be able to see the pay range for a position when you apply for a job. This will give you a better idea of what to expect and allow you to negotiate for fair compensation. Secondly, your current employer may now have to disclose pay ranges for your position. This will give you a better understanding of how you compare to your peers in terms of pay.

IV. What should companies do to prepare for this change?

Companies should start preparing for this change by reviewing their current pay ranges and making sure they are fair and equitable. They should also put pay bands in place for current employees and make sure there are no pay disparities based on race, sex, or other protected classes between employees doing substantially similar work. This will help prevent any legal action from employees or job seekers.

V. How wide can a pay range be without violating the law?

The law is not specific on how wide a pay range can be without violating the law. However, it states that the pay range should be "the salary or hourly wage range that the employer reasonably expects to pay for the position." As a job seeker, if you come across a pay range that is too wide, it's worth asking the employer for more information.

VI. How does this change affect remote job listings?

This change affects remote job listings as well. Employers will have to include pay ranges in remote job listings as well. However, it's worth noting that some companies may try to get around this by listing remote jobs that they say can be done from anywhere except the states that have these laws in place.

VII. Conclusion

As a tech employee, these new laws provide you with more information and power when it comes to negotiating fair compensation. It's important for companies to prepare for this change by reviewing their current pay ranges and making sure they are fair and equitable. As a job seeker, be aware of these laws and use the information provided to negotiate fair compensation. Remember, you have the right to ask for the pay range for your own position and to file a complaint