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California won't require companies to make salary data public despite pay equity concerns

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SB 1162 by Sen. Monique Limon (D-Santa Barbara) would have required large employers to make public pay data, citing gender and ethnicity equity concerns.

California companies will not be required to make salary data public after a bill was weakened in a key fiscal committee in the state Legislature on Thursday.

Limón called the last-minute amendments to the bill “disappointing, to say the least” and “a setback for women and people of color” but said she will continue to pursue pay equity measures in the future. The bill would require employers to publicize pay scales, including during the hiring process, a move proponents said would prevent those who are historically underpaid from accepting lower salaries than their peers.The bill would also strengthen the state’s enforcement of existing pay data requirements. In 2020, Newsom signed a bill that requires the state’s largest employers to collect wage data and report the information to the California Department of Fair Employment and Housing.

 

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