Are California companies about to get more transparent?

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California legislators are advancing two bills that would require companies to report more data about pay and internal practices. Business groups oppose the bills and say the data could be taken out of context.

a Denmark law requiring companies to disclose pay data by gender, they found that companies required to comply with the law shrank the gender pay gap by 7%, while other companies saw no change. Reporting companies were also more likely to hire women and promote female employees. But the main way companies shrank their pay gaps wasn’t by increasing pay for women pay, researchers found — it was by slowing wage increases for male employees.

When Colorado passed a law requiring companies to include pay ranges in job postings, it encountered another unwelcome move from employers. In an attempt to skirt the law, some companies started posting roles that allowed applicants to work from any state —The powerful lobbying operation at the California Chamber of Commerce has put both bills on its “job-killer” list — the collection of measures it opposes most aggressively each year. The group’sof its “job killers” is high.

“I know the opposition likes to say that this is a bill that’s going to shame,” said Limón, the state senator who introduced the pay range bill. “We do not believe that the act of making accurate information public is an act of shaming.”

 

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