Employers that sponsor foreign nationals for green cards using PERM Labor Certification have been watching as a growing number of states and localities require salary transparency in job postings. California soon may join that list.
If the amended version of California’s SB-1162, Employment: Salaries and Wages, is signed by Governor Gavin Newsom, California employers with at least 15 employees (on the company’s payroll – full-time or part-time) will be required to include the pay scale for any position in any job posting. This includes advertisements that are posted by third parties. The California Labor Commissioner will have the authority to investigate any complaints alleging violations and to order civil penalties ranging from $100 to $10,000 per violation, depending upon the circumstances. First violations may be forgiven if the employer can demonstrate that all job postings for open positions have been updated to include the pay scale. The amendment, which focuses on updated pay data reports and updated disclosure requirements (but also includes the new job posting requirement), would become effective January 1, 2023, if signed by the Governor.
Unlike wage transparency laws in other localities, the California law does not specify:
- Do all 15 employees need to be working in California?
- Does the 15-employee count include subsidiaries and affiliates?
- Does the law include postings for jobs that are not located in California?
- Does the law include remote jobs that could be performed in California?
If the bill is signed, California will likely provide additional guidance, as it did when the initial reporting requirements went into effect.
If the amended version is signed, California will join Colorado and Washington State, as well as localities in the New York area (including New York City, Westchester County, Ithaca, and Jersey City, New Jersey) in requiring salary ranges in job postings. While waiting for Governor Newsom’s decision, employers are also waiting to see if Governor Kathy Hochul will sign a similar law for New York State.
If you have any questions about how these laws affect your PERM recruitment obligations, please reach out to your Jackson Lewis attorney.