The California legislature passed a law on Tuesday that would require all employers in the state to post salary ranges for open positions, reports USA Today. The legislation would also “require companies with more than 100 employees to report pay scales by gender, race, and ethnicity, data that California would then make public.”
“Disclosing salary ranges during hiring negotiations has been proven to narrow the wage gap,” said state Sen. Monique Limón, a Santa Barbara Democrat, in a statement.“I am hopeful that the governor will sign SB 1162 and take meaningful action to create an equitable economy that supports women, families, and people of color.”
Michelle Holder, a labor economist whose research focuses on the Black community and women of color, believes the law has the potential to impact the gender pay gap.
The California Chamber of Commerce vehemently opposed the bill saying that it would cause more lawsuits against businesses and make hiring “more burdensome.” They also placed it on their “Job Killers” list.”
California joins a growing list of cities and states which have recently enacted laws that require employers to be more transparent with compensation information. Employers oppose the growing movement, claiming “they are proponents of pay transparency and equity but don’t agree with how states and cities are going about it.”
California Gov. Gavin Newsom has until Sept. 30 to sign or veto the bill.