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California Gov. Gavin Newsom signed into law a bill on Tuesday that requires employers to provide more detailed information on their employees’ pay.
While private employers with 100 or more employees are already required to file an Employer Information Report with the federal government, the new law, which takes effect next year, requires employers to provide more detailed data.
The new law follows government entities including Colorado, Washington state and New York City among others in enacting similar legislation.
The new law requires employers with 100 or more employees each year, beginning next year, by the second Wednesday of May, to submit pay data reports that include the median and mean hourly rate for each combination of race, ethnicity and sex within each of 10 different job categories.
Employers with multiple establishments must submit a report for each location.
It permits a court to impose a civil penalty of up to $100 per employee for those who fail to file the required report.
It also requires companies with 15 or more employees to include the pay scale for a position in any job posting.