Everybody Should Know What a Job Pays

Everybody Should Know What a Job Pays

By V. James DeSimone

On September 27, California Governor Gavin Newsom signed into law Senate Bill (SB) 1162, which will require nearly 200,000 California companies with 15 or more employees to disclose pay ranges starting next year. What does it mean for job seekers? Besides providing them with critical information before they pursue a job opportunity, it gives potential employees some assurance that they will not face pay discrimination because of their age, race, ethnicity, gender or other characteristic. When pay ranges are disclosed, it informs job seekers where to focus their efforts and provides confidence that they will be paid as much as any other applicant for that same job. 

Even though the Equal Pay Act became U.S. law more than 50 years ago, pay disparities have been an ongoing blight on the American workplace. Pay disclosure laws could finally eliminate this blight. Such laws provide a host of important benefits, helping employers think through the value of the jobs they post while providing realistic expectations to those in the job market. Ultimately, requiring transparency of pay ranges could finally bring pay equity to the workplace where prior efforts have failed. It has been a long time coming. 

It’s a well-known fact that women earn a lot less than men. For the year 2021 it was about 83% of what their male colleagues made, according to the Bureau of Labor Statistics. As alarming as that sounds, it’s nothing compared to how Black and Latino women have fared. The 2022 Equal Pay Day for Black women was September 21, meaning they had to work an extra 263 days to earn what White men earned in 2021.

The causes and reasons for pay disparities have been studied and documented at length. In some companies, women have been undervalued, relegated to subservient roles, and denied status in the workplace. Oftentimes, pay disparities are due to overt discrimination. And laws mandating equal pay – on the books in every state, as well as at the national level – will keep failing to close the gap as long as attitudes are unchanged and legal remedies are anemic. 

But greater pay transparency could be the cure to address some of these failures. It isn’t rocket science, and it doesn’t require complicated economic calculations. If every company were to simply post the pay range for the jobs they sought to fill, the gap would actually begin to narrow. Laws to this effect have already been implemented, and data shows that the gender gap can move in the direction of closure as a result. According to the National Women’s Law Center, “Revealing a position’s salary range is an important negotiation prompt and provides some brake on pay discrimination in initial offers.”

Colorado adopted the first such law in 2021, requiring employers to include pay ranges in job postings. Early research shows that the law actually boosted labor force participation by 1.5%. In other words, Colorado employers had an easier time filling jobs because applicants felt better about applying for positions where the pay range was disclosed. This is no surprise given that 98% of all workers believe that employers should disclose salary information in job listings and more than half would refuse to even apply for a job if the salary range is not disclosed, according to a recent survey

With a growing number of states enacting pay range disclosure laws, the results should be significant. In its letter supporting SB 1162, California’s pay range disclosure law, CELA and other advocacy groups stated as follows: “Research shows that when job applicants are clearly informed about the context for negotiations, including the salary range, women are more willing to negotiate, more successful in negotiating, and the gender wage gap narrows.”

All workers could be impacted by these laws. For multistate employers, we can expect to see pay ranges posted for all positions, regardless of where the worker resides. In addition, under SB 1162 employers will not only have to disclose pay ranges for new hires, but also for current employees who request the pay range for their own position. Armed with more pay information for the same or similar roles, this new law could provide current employees with a legitimate basis for negotiating higher pay for themselves.

Ultimately, these pay transparency laws should be a game-changer for closing wage gaps within companies. This is good for workers and good for employers – when employees know they are being treated fairly, morale and productivity rises, which are key factors in retaining employees who do a good job.

About V. James DeSimone

Civil rights attorney V. James DeSimone, of V. James DeSimone Law of Marina del Rey, has dedicated his 36-year law career to providing vigorous and ethical representation to achieve justice for those whose civil and constitutional rights are violated. His team represents individuals and families in employment, police misconduct, school abuse, and personal injury cases. You can find out more about their work at www.vjamesdesimonelaw.com

10 fresh worker protections in 2020

10 fresh worker protections in 2020

SACRAMENTO – From breastfeeding accommodations to gender pay equity to combatting bias against hairstyles, several new laws took effect last month that impact California workers and their jobs. While AB 5the landmark bill regulating whether workers are employees or independent contractors – dominated headlines, there are 10 laws now on the books that will also have a significant impact on the workplace.

Saying “no” to privatized justice

Our labor laws mean nothing if workers are forced to waive those rights by signing a mandatory arbitration agreement. These agreements operate to suppress workplace claims by barring workers from bringing a lawsuit and exposing workplace abuse.

California law should now prohibit employers from coercing workers into signing these arbitration agreements as a condition of employment, but the law already is being challenged in court. If the challenge fails, workers could reject a mandatory arbitration agreement (making arbitration truly optional to resolve an employment dispute). Importantly, the new law also protects workers from retaliation – meaning they cannot be fired or not hired – if they refuse to sign an arbitration agreement.

For workers who do end up in arbitration, the odds are stacked against them. Increasingly, employers are refusing to even pay their share of arbitration fees, as a way to stall cases indefinitely. Now another new law will level the playing field by empowering workers to proceed to court, instead of arbitration, if the employer delays paying their share of fees.

Greater protections for harassment survivors

State lawmakers have continued advancing #MeToo reforms to combat sexual harassment. Now, workers have an extra two years to bring harassment or discrimination claims under California’s Fair Employment and Housing Act. Also, building on the new law that bans secrecy around sexual harassment settlements, employers can no longer use “no-rehire” clauses – which punish victims by barring future employment with the employer and related entities, as a condition of settling.

A more equitable workplace

Workplace equity is the focus of several new measures now taking effect. First, many working mothers will have safe and clean lactation rooms with access to water, electricity, and refrigeration. Second, the CROWN Act will combat workplace bias against hairstyles that disproportionately impacts African American women. This new law will make it unlawful to discriminate against natural hairstyles and textures historically associated with race.

Equity extends beyond the traditional workplace, as exemplified by the US Women’s National soccer team in their quest for their fourth World Cup – which featured a prize pool valued at a paltry one-tenth of the men’s tournament. California will do its part by requiring permitted events on public lands to offer equal prize money, regardless of gender.

Finally, a new law will allow workers to collect a monetary penalty from their employer if they are paid late. This escalating penalty will deter repeat offenders and encourage employers to always pay their workers on time.

A justice system for all

Earlier this year, the Chief Justice of the California Supreme Court spoke out about the chilling effect of recent arrests of undocumented immigrants in our state’s courthouses. California law will now protect undocumented workers from civil arrest while attending a proceeding or other legal business in the courthouse.

California also took another step towards the promise of equal justice under the law. Soon, all judges, public-facing court staff, and attorneys will be required to attend implicit bias training to help identify their own biases in order to more fairly uphold our laws.

The upcoming legislative session is already looking packed, with proposals on major issues, such as workplace privacy, paid family leave, and adjustments to AB 5. We hope you stay tuned.

About Ken Wang, Esq.

Legislative Policy Associate, California Employment Lawyers Association

Equal Pay Day and the elusive gender pay gap

Equal Pay Day and the elusive gender pay gap

equal-pay-day-gender-gapBy Elizabeth Kristen

April 8, 2014, is “Equal Pay Day” in the United States. On average, women earn less than men. In fact, in 2012, full-time working women earned only 77% of what men made. That means the average woman must work four additional months—until April 8—to earn the same amount of money as a man. Equal Pay Day is yearly event meant to raise awareness of the gender pay gap.

Data shows that the gender pay gap is real. According to the AAUW, women just out of college earn 7% less than their male peers. As women get older, the pay gap gets worse: women over 35 earn 75-80% of what men make. And there’s nowhere to hide. The pay gap exists in all 50 states.

Although several US laws protect women from pay discrimination, the gender pay gap persists and improvement has recently come to a halt. Observers offer different solutions based on what they see as the root cause. For example, some agitate for legislation to address modern discriminatory employer practices. Some want to raise the minimum wage because women make up a whopping two-thirds of minimum-wage earners. Others train women to “lean in” to fight stereotypes and gendered roles. All of these seem to be viable contributors to this injustice.

Critics say that the gender pay gap is a fallacy. The argument is that women’s “life choices,” nothing more sinister, account for the gap: women tend to choose lower-compensated professions, decline to move for better opportunities, want more flexible schedules, and etc. Scholars dubbed this phenomenon the Mommy Penalty. Because women devote part of their lives to caring for their families, women work less and earn less.  The critics argue that such choices would hinder the progress of anyone’s career, male or female.

But the real fallacy is the “life choices” argument.  First of all, so-called life choices cannot fully explain the gender gap. According to a study by the Center for American Progress, 41.1% of the pay gap “cannot be explained by characteristics of women or their jobs.” “Life choices,” to use the questionable term, cannot account for the disparity.

Second, if workers who have care-giving responsibilities have to make compromises that burden their careers, then that’s an unacceptable contribution to the gender pay gap. And with women accounting for two-thirds of all caregivers, the penalties disproportionately impact women. With better leave laws and more flexible standards, valuable workers would not have to sacrifice their careers if family life calls them home. One day, I hope we reframe this issue and push for a more family friendly workplace notwithstanding sex, gender, or conventionality.

Although the laws are not perfect, California is at the forefront on family leave law, providing several strong statutes with worker-friendly presumptions. In total, California’s work and family laws, including the Pregnancy Disability law, the California Family Rights Act, Paid Family Leave, Kin Care, and the Family-School Partnership Act, mark a strong public policy in support of working families.

Strong family leave laws, however, are only part of the picture. California still has a way to go before it closes its gender pay gap. The Legal Aid Society – Employment Law Center is part of the Equal Pay Today! campaign. The campaign has a 5-point platform to end unequal pay practices. Check out the website for details and for ways to get involved.

About Elizabeth Kristen

Elizabeth Kristen is the Director of the Gender Equity & LGBT Rights Program and a senior staff attorney at Legal Aid at Work.  Ms. Kristen began her public interest career as a Skadden Fellow at Legal Aid.  Ms. Kristen graduated from University of California at Berkeley School of Law in 2001 and served as a law clerk to the Honorable James R. Browning on the Ninth Circuit Court of Appeals in San Francisco.  In 2012-13, she served as a Harvard law School Wasserstein Public Interest Fellow.  She has been a lecturer at Berkeley Law School since 2008. Legal Aid at Work together with the California Women’s Law Center and Equal Rights Advocates make up the California Fair Pay Collaborative dedicated to engaging and informing Californians about fair pay issues.