On December 21, 2022, Governor Kathy Hochul signed Senate Bill S9427A (the NY Law), which requires covered employers to include salary or wage range—and the job description—in job postings. The NY Law will go into effect on September 17, 2023. New York joins a growing trend of wage transparency efforts by a number of states, counties and cities as a way to close the wage gap for women and workers of color. With New York, approximately 20 percent of the American population will live or work in a state requiring pay transparency.
As part of California’s ongoing efforts to promote workplace pay transparency, Senate Bill 1162, which amends Labor Code section 432.3 and Government Code section 12999, went into effect on January 1, 2023. On December 27, 2022, the California Labor Commissioner’s Office released FAQs on the new pay scale disclosure requirements. This blog discusses the guidance provided by those FAQs, and provides takeaways for employers faced with the implications of SB 1162 as we ring in 2023.
In 2022, California Gov. Gavin Newsom signed many laws impacting California employers. Some of the new laws became effective immediately and others, including some that were signed into law just weeks ago, take effect January 1, 2023, or later. These new laws address several topics, including supplemental paid sick leave, pay transparency, leaves of absence and fast-food restaurant employment standards.
As a reminder, the minimum wage in California is increasing to $15.50 per hour on January 1, 2023, for all employers — regardless of the number of workers employed by an employer. Also, many cities and local governments in California have enacted minimum wage ordinances exceeding the state minimum wage.
On September 28, California Governor Gavin Newsom signed SB 1162 into law, effectively amending Section 12999 of the Government Code and Section 432.3 of the Labor Code, which expands pay data reporting obligations, requires certain-sized employers to provide the pay scale for an open position in job postings and imposes new record-keeping requirements. It will become effective on January 1, 2023.
On August 18, 2022, the U.S. Department of Labor’s (DOL) Office of Federal Contract Compliance Programs (OFCCP) revised Directive 2022-01 (DIR 2022-01) to clarify its earlier guidance addressing federal government contractors’ regulatory requirement to evaluate compensation as part of their affirmative action programming. Originally referred to as the “pay equity audit,” OFCCP Director Jenny Yang noted in her accompanying DOL blog post that the change in terminology from “pay equity audit” to “compensation analysis” was made to avoid any confusion regarding the nature of contractor obligations.
In June 2021, the Illinois Equal Pay Act (IEPA) was amended to add a requirement for certain Illinois businesses to obtain an equal pay registration certificate (EPRC). The Illinois Department of Labor (IDOL) issued its long awaited proposed rules regarding the EPRC requirements on May 20, 2022. The proposed rules are subject to a 45-day comment period, which has now passed, followed by an internal review, and a public hearing on August 9, which may result in additional changes before they become final.
However, some Illinois employers have already received notice of a deadline to file their Application for Certification before the rules are finalized. Therefore, a careful review of the proposed rules is helpful as we anticipate issuance of the final rules. While the proposed rules largely mirror statutory requirements (the basics which were laid out in prior posts here and here), IDOL has clarified or provided additional information on a number of topics.